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# OAR Box 

# 1872

Prepped by Keeia Richards



## Document

Number: 

# 88 ) 11-1-13

7

Docket Number: 

# A-90-1 9

Printed 11/26/20088:52:01 AM Sheet 88of 204P. 2 

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. N.C , 2770 9 ; 2-11-9 1 ; 4:19P M ; RADIA NCORP O (pitfmt'tuif

T^tdntfi

5f*(lfAfd JULY 199

0 PrrKou i Repor t- 3une 196 3 

# A-90-1 9 H-l-13 7

FORMALDEHYD E fOCUS....Formaldehyd e i e th a firs t o f th e serie s o f aliphati c aldehydes . A t ordinar y temperatures , pur e formaldehyd e i s a colorles s ga e wit ha pungent , suffocatin g odor . However , formaldehyd e i a normall y pro duce dand sol da s uate r aolution a containin g variabl e amount s o f methanol , usuall y include dt o inhibi t self-condensatio ni n a n aldol-typ e reaction , formaldehyd e i e als o eol di n a semi-condense dfor m a s a soli d flak e o r powder , paraformaldehyde . Becaus e o f it * relativel y lo w cost , hig hpurit y

an d variet y

o f chemica l reactions , formaldehyd e ha s become on e o f th e world' s mos t importan t chemicals , wit hworld-wid e capacit y no w exceedin g 1 2 millio nmetri c ton s (calculate da e 17% solution) . Almos t 2/ 3 o f el l formaldehyd e consume di n th e U S goe s int o product s tha t ar e closel y oonnecte dt o the constructio ninduatry , wit hmoa t formaldehyd e going int o ure a an d phenoli c resin s use di nplywood , par * ticleboer dand laminatea . Thus , th e growt hpatter nfor formaldehyd e ha s been , an d wil l continu e t o b e closel y tie dt o th e genera l U S economy , bu t particularl y t o housin g eter t statlstica . Durin g the 1985-198 9 period , formaldehyd e deman dgrew a t e compounde doveral l rat e o f abou t 35 ? pe r year , en dreache da recor d hig ho f almos t 6. 4 billio npound s i n 1989 . Year-to-yea r th a growt hha s no t bee neo smooth , wit ha buildin g slum pi n 1S8 S reflecte di n reduce ddemandan d tha nspectacula r growt hfro m 198 7 t o 1988 - apurre do n by etron g domesti c construction , bu t als o b y stron g expor t market s fo r U S woo dproducts , brough t abou t b y a uaake r dollar . Deman dbega nt o weake nb y mid-196 9 a e a reflectio no f a generall y weake r domesti c econom y ande downtur ni ntha constructio ninduetry . Abou t 705 ? o f al l formaldehyd e produce di s consume dcaptively , a s mos t U S producer s ar e forwar dintegrate dint o woo dproduot e resins . DuPon t an d Hoechs t Celanes e er e etron g factor s i n th e merchan t market . OUTLOO K ...Uit h th e 0«

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n9% i n th e firs t quarte r 199 0 a e compare dt o 1989 , th e effact a o f BI'OIII. J ..«^n)* y *» e bftin g •^sortgl y #ol * I M fck* •»**4*>w*»4A«>l- l ^^M.it,' , pa>tA*wl«ffl ^ LY> tho Mo « iir.OQOC

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### mandgrowt hfo r formaldehyd e i n aceta l resins , 1, 4 butenedlo l fo r polybutylen e terephthalat e reains , a s a n ingredien t i n the productio no f methy l dipheny l diisocyanete s (ADI) , wil l continu e a t level s aroun d55

? pe r year , whic hwil l hel pmak e up for consumptio nlos t i n buildin g products . Thes e thre e use s accoun t fo r a tota l o f 255 ? o r overal l U S formaldehyd e demand . However , fo r the yea r 199 0 overal l de men di e expecte dt o be dow nb y abou t 1-25? , bu t coul dbe dow nb y a a muc ha e 10? ? i f th e constructio nindus try slourinu

nbecome s mor e protracted . Assumin g a busines s recover y b y mi dt o lat e 1951 , formaldohyd o demandgrowt hshoul daverag s abou t 2-35 ? pe r yea r fo r th e nex t severa l years . A potentia l threa t t o the lon g ter m growt hi n demandfo r formaldehyd e i a th e continuin g ecrutlny give n th e produc t fro

m a healt han

d safet y standpoint . Currently , new regulation s hav e bee ninstitute dthe t tighte nu

p allowabl e limit s fo r formaldehyd e amission s i n th a workplace . Thes e restriction s hav e no t ye t impinge do

n the volume usag e o f formaldehyde . However , ther e i e elwey e th e possibilit y tha t newe r regula tion s wil l caus e a

n actua l reductio ni n th e us e o f formaldehyd e becaus e o f lt e toxi c nature . Th e exten t o f thi e threa t i s no t quantifiabl e a t thi s time . PRICING . ...Formaldehyde , bein g i n a constan t sever e overcapacit y positio n- whic hi e no t expecte dt o abat e i nth a foreseeabl e futur e - ha s generall y sol dwel l unde r so-calle d"Trad e List " prices . However , o n a tren dlin e beaie , aotua l formaldehyd e sellin g price s hav e move dnormall y i nloc k ste puit hmethano l prices . A

somewha t wal l accepte dinduetr y standar di s tha t th e pric e o f formaldehyd e (on a 50 % basis ) mova e 0. 1 cen t pe r poundfo r eac h1. 0 can t pe r gallo nchang e i nthe ooe t o f methanol . Uit hstronga r methano l posting s i n earl y 1990 , formaldehyd e lis t prioe e increase dt o the 10. 7 t o 11. 5 cent s pe r pound range , bu t can be expecte dt o eae e i f the buildin g slum pintensifies . A

mileston e fo r domesti c deman do f 7 billio npound s i s no t expecte dt o b e reache dbefor e 1995 . AVERAG E PRIC E RANG E - FORMALDEHYD E - 373 ? Cent a Pe r Poun d- Uninhibite d- Delivere d- Gul f 

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### 196 0 196 5 ' 197 0 197 5 198 0 1985 198 6 19B 7 196 B 198 9 ~37 I "573 " "3 3 "77 5 "77 1 ~5T ¥ "TT F T7B "BTu

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. ..Million s of Pounds....37$ ? Basis....Estimated....Domesti c U S

Capacit y Productio n Import s Export s Deman d 196 0 '7151 1 187 2 1 2 186 0 196 5

LS4U U 310 7 1 0 309 7 197 0

bil b 442 7 1 7 441 0 197 5

"B3B T 455 8 12 7 443 1 198 0

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### 620 0 667 0 Productio ndat a derive dfro m USIT C statistics ; import/expor t dat e i s fro m U S Burea uo f th e Census . AVAILABILITY....Formaldehyd e capacit y ha s alway s fa r outstrippe ddemand , an d thi s conditio ni s expecte dt o prevai l fo r th e foreseeabl e future s Formaldehyde , generall y use da s a solutio ni n water , containin g n o mor e tha n50-555 ? formaldehyde , i a "costl y t o shi plon g distances . Thus , many formaldehyd e plant e hevo bee n buil t proximat e t o facilitie s fo r th e manufactur e o f thermosettin g ure a and phenoli c reein s use dprimaril y b y th e woo dproduct s industry . Thes e resin/formaldehyd e plan t complexe s er e ele o locete di n cloe e proximi t y t o th e fores t product s industry . Capita l oost e ar e no t significan t i n formaldehyde , thu s th e prolifara klw nw > oii,oiAo» , onen.oyj.i.oj.j. y iuosca o units , curren t u s Capacit y i s oistnoute o ove r « boietlnc t pxan t 1nnst<»n< , 1e d b y integrate d use d psadus t »••! » eupplier o - Bsvda n wit h 1 2 sit** , Coetgi e Pool^l o wit h 9 

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PRODUCER S M O CAPACITIE S - FORMALDEHYD E - 775 ? BASI S - 199 0 - MILLION S OF POUND S PRODUCE R • Borde n " BT L "OChembon d -" " D . 8 . Wester n u^Qsguaa a

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### IJ/b 23 5 40 0 9 0 6 5 158 5 20 0 PRODUCE R. Georgle-taciri e Hercule s koeoha t Talsnes a 

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### RV P Urigh t CAPACIT Y 1SS 5 

### 16 0 ?nn 13 5 47 5 30 0 11 4 TOTA L 955 0 Hoechs t Celanese ha s oompleta d a 10 0 millio npoundexpansio na t Bishop , TX , bringin g it s capacit y

ther e t o 1. 9 billio npound s pe r year . DuPon t i e movin g t o Lapcrte , T Xa 17 5 millio npounduni t previousl y ru n at Grasselli , N 3 an d wil l reactivat e thi s uni t i nlat a 1990 . Georgi a Pacifi c ha s acquire dth e Hampton , S C 5 0 millio npoun dplan t o f BTL . Onl y

incrementa l expansion s ar e expecte dnea r term , whic hshoul d.offee t somewha t th e effeo t o f DuPont' s closur e o f a SOO millio npoundBelle , UV A plan t i n earl y

1991 . CM ) USES....Th e larges t en d us e fo r formaldehyde , accountin g fo r slightl y lea s tha n1/ 3 o f deman di n 1989 , i a i n the manufactur e e f ure a formaldehyd e resins . U F rasin a ar a use dprimaril y a s bondin g adhesive s fo r preses dwoo dproduct s suoha s partlcleboar dan d plywood , wit hparticleboar dapplication s dominating , takin g u p abou t 76-805 ? o f U F resi noutput , an d plywoo d8- 1 OS? . Othe r U F reai napplication s ar e i n protec tiv e coatings , and textil e an d pape r treating uses . U F concentrate s ar e als o uaa di nfertilize r applica tions . Pheno l formaldehyd e resin s ar e th e secondlargea t ua e for formaldehyde , takin g u p almos t 1/ 4 o f tota l demand . Plywoo dan d particleboar dapplication s dominat e P F usage , accountin g fo r 60 % o f demand , wit h us e a e a binde r fo r fiberglas s insulatio naccountin g fo r 165 ? or " tota l P F reai nusage . Othe r smalle r volume , matur e en

d use s fo r P F resln a ar e aa moldin g compounda , laminatin g adheeives , frictio nmateria l an dabreaive binders , an d protectiv e coatings . Melamin e formaldehyd e resine , a relativel y emai l an

d ala o matur e outle t fo r formaldehyde , ar e usedi n moldin g compounds , decorativ e laminates , dinnaruere , protec tiv e coatings , an

d pape r an

d textil e treatments . A nimportan t applicatio nfo r formaldehyd e i s a s a co-reactan t uit hacetylen e i n th e productio no f 1,4 * butanediol , use dt o mak e polybutylen e terephthalat e resins , polyviny l pyrrolidon e en d tetrahydrofuran . Thi s en d use , whic hha s bee ngrowin g e t a 105 ? pe r yea r rat e i n th e recen t past , ma y

leve l of f a a othe r proces s route s t o 1,4-BD^no t base do n acetyleni c chemistry , ar e being developed . A n additiona l majo r end ue e i s th e polymerization " o f formaldehyd e t o mak e aceta l resin e whic har e molde dint o engineerin g plaati c part s fo r appliances , consume r products , plumbin g an d harduare , an

d othe r industria l an d automotiv e prod ucts . Reactio no f formaldehyd e uit hammoni a yield s hexamethylenetetramin e whic hi a uaa dprimaril y t o cur e phenoli c moldin g compounds , bu t als o he s us e i n the productio no f explosive s an d bactericides . END US E PATTER

N - 198 9 ESTIMAT E
DERIVATIV E PERCEN T Ure a Formaldehyd e Resin s & Concentrate s 3 U Pheno l Formaldehyd e Resin s 2 4 1,4-Butenedio l 1 2 Aceta l Resin s 9 Haxamathylsnetstramin e 6 Pentaerythrito l 5 Melamin e Formaldehyd e Resin s 4 Methy l Dipheny l Diiaooyanate e 4 Miscellaneous 6
MANUFACTURING . ...Formaldehyde ' i s mad e fro m methano l b

y tw o processes : th e silve r catalyze dprocea e uher e formaldehyd e i s mad e b y a combinatio ndehydrogsnation-oxidatlo nprocaaa ; and th e meta l oxid e procea e wher e methano l i e oxidize ddirectl y t o formaldehyde , inth e silve r catalyze s process , vaporize dmethanol , togethe r wit hai r an d stea m pre-heate d t o 100 s C , i e passe dove r a thi nbed o f silver-orysta l catalyst . Formaldehyd e i s forme db y dehydrogenatio no f methanol . Th e reactio ni s endothermi o an d require s hea t whic h i s provide db

y burnin g th e hydroge nproduce din the dehydrogenatio nreaction . Th e exi t gaae e ar e quenche d an dcondense dt o produc e a methenol-formaldehyd a solution . The mathanoli c formali nfro m the absorbe r ca n b e th a fina l produc t o r ele e i t i e distille dt o lowe r methano l oonten t t o 15 ? o r laea . Th e meta l oxid e proces s involve s the oxidatio no f methano l ove r a catalys t o f molybdenum en d iro n oxide . A

mixtur e e f ai r an

d methano l ar e vaporize den d passe dint o oatalyst-paeka dreacto r tubas . Th e reactio ni a highl y

exothermi c en

d hea t generate dprovide s stea m fo r ue e b

y le t dow nturbine s t o driv e pump s an

d t o provid e proces s heating . Th e effluen t gaae e axe fe d directl y

t o a n absorptio ntower . Demine ralize dwate r i s fe

d e t th e top o f the towe r an d formaldehyd e solutio nl a collecte da t th e bottom . ENVIRONMENTA L ASPECTS....Formaldehyd e i e toxi c b y inhalation , prolonge dor repeate doontac t uit hth e ski n o r muoou s membrsnss , an d b y ingestion . I t i s extremel y irritatin g t o th e ayes , nos e an d throa t o

n axpoeur e t o concentration s rangin g fro m 0. 1 t o 5 ppm . Afte r year s o f controvers y oonoernln g th e safet y an d toxici t y o f formaldehyde , i n 198 9 CSH A issue da revise dse t o f standard s relatin g t o expoaur a limits . Thi s standar dreduce s th e permissibl e exposur e leve l (PEL ) fo r formaldehyd e i n al l workplace s (in cludin g the genera l constructio nan d mtftin e industries ) covere db y th e OS H Ao t t o 1 par t pe r millio npart s o f ai r ( 1 ppm ) average dove r B hour s en d establishe s a ahor t ter m exposur e leve l (STEL ) (i.e . exposur e durin g an

y 15-minut e period ) o f 1 ppm . I t ala o set s a n "actio nlevel " o f 0. 6 pp m treasure dove r 8 hours . I f the axpoeur e leve l i s maintaine dbelo w th e STE L en

d th e actio nlevel , employer s ma y discontinu e exposur e monitorin g an

d certai nemploye e training . T o th e bes t o f ou r knowledg e th e informatio ncontaine dherei ni e accurate . However , we ' d o no t assume an

y liabilit y

whatsoeve r fo r the completenes s o r accurac y

o f thi s report .