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# OAR Box 1872 Prepped by Keeia Richards



# Document

Number: 

# 20 ) 11-1-6 9 Docket Number: 

# A-90-1 9

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# Lind e Revamps Gas Technology A-90-1 9 II I 6 9

Th e Lind e Divisio n o

f Unio n Carbid e Corporatio n las t wee k unveile dane w technolog y fo r producin g middle-size dquantitie s o f medium-purit y oxyge n an d nitroge n tha t

promise s t o reduc e th e cost s o f non-cryo geni c productio n o

f thes e gase s b y 2 0 t o 5 0 percen t an d ope n ne w market s base do n lowe r costs . Th e Lind e announcemen t

come s i n th e wak e o

f recen t pric e in

crease s b y majo r

industria l ga s producer s an dannua l growt ho

f 3 t o 7 percen t

fo r th e larges t

industria l gase s Cryogeni c separatio n account s fo r 9 0 t o 9 5 percen t o f th e bul k industria l ga s market , an dmembran e an d pressur e swin g adsorptio n (PSA ) accoun t fo r les s tha n 1 0 percent . Th e ne w technology , whic hLind e call s "OxyGEN " an d"NitroGEN " vacuu mpressur e swin g adsorptio n (VPSA) , produce s onl y oxyge n an dnitro

gen , bu t th e fir mexpect s i t

t o displac e 2 5 t o 3 0 percen t o f th e merchan t

liqui dmarke t

fo r thes e chemic
. Th e ne w VPS A system s produc e gaseou s nit
. ~„ — an doxyge n ove r

arang e o f

volume s an dpurities
. Th e on-sit e "OxyGEN " syste mca n produc e 10,00 0 t o 150,00 0 cubi c fee t

pe r hou r (cfh ) o f oxyge n a t

9 0 t o 9 5 percen t purity
. Th e "NitroGEN " syste mca n economi

call y produc e 50,00 0 cf ho f nitroge n a t

99. 9 percen t purit y Lind e concede s th e ne w technolog y canno t gobbl e u p th e entir e marke t

fo r thes e tw o gases . Cryogeni c sepa ratio n remain s th e cheapes t metho dfo r

ver y larg e Continue do n Pag e 2 9
TM s ne won-sit e vacuu m pressur e swin g adsorptio n syste m o f Unio n Carbid e Corporation' s Und e Divisio n produce s 25,00 0 cu bi c fee t pe rhou ro t 9 0 percen t pur e oxyge n lo r Manitob a Rollin g Mill s i n Selkirk , Manitoba , Canada . 

# EBD C Makers Cu t Bac k

Use s A s EP A Readies Ne

wCurbs Thre e U S manufacturer s o f ethylen e bisdithiocarbamat e (EBDC ) fungicide s sa y the y wil l voluntaril y suspen dregis

tration s fo r

variou s U S crop s i n orde r t o mee t Environmenta l Protectio n Agenc y guideline s o n acceptabl e risk
. E
. 1
. du Pon t

d e Nemour s & Co. , Pennwal t Corporatio n an dRoh

man dHaa s Company say th e actio n i s bein g take n t o maintai n publi c confidenc e i

n th e safet y o

f fruit s an d vegetable s Th e proposal wouldallo w contin

uedus e o n 1 3 crop s t

n th e US
. EP A calle dth e chemica l companies ' ac tio n " aste p in th e righ t

direction, " bu t

sai di t may mov e t o furthe r

reduc e th e potentia l cance r ris k fromalifetim e o

f eatin g food s treate dwit

hth e fungicide s Mancozeb
. markete db

y al l thre e firms , an dPennwall' s mane b hav e bee n th e subjec t o f a n ongoin g "specia l review " initiate db y EP A i n 1987
. Th e fungicide s wil l n o longe r b e usedon foo

dcrop s suc ha s apples , carrot s an d melons
. Us e wil l continu e o n tomatoes , pota
toe s an dwheat
. In ajoin t statement , th e companie s say "EBD C fungicide s offer

a n importan t

contri

butio n l o safe foo dproductio n However , th e theoretica l ris k

associate dwit hsom e specifi c use s o

f thes e product s unnecessaril y raise s question s abou t

th e safety o

f thi s en tir e clas s o

f fungicide s B y actin g no w t o suspen dcertai n uses , w e hop e t o maintai n publi c confidenc e i n thes e products. " Th e companies ' decisio n cam e a s EP A wa s preparin g t o orde r

curb s on EBD C use s be

caus e o f recen t test s tha t indicate dunaccept
abl e cance r

risk s fro mresidue s I

n som e foods
. Althoug hth e manufacturer s sa y th e fungi

cide s ar e saf

e i f use dproperly
. EP A test s sho w th e cance r

risk s pose dby EBD C residue s o

n som e food s can b e mor e tha n 2 3 time s th e one-in-a-millio n leve l th e agenc y use s t o indicat e negligibl e risk I n th e cas e o

f residue s o n tomatoes , i t

ca n b e 6 3 lime s th e benchmark

level , accordin g t o EP A docu

ments . That contrast s EPA' s estimat e o f alife

tim e cance r

ris k o f 45 time s th e benchmark fo r "Alar. " (Fo r

additiona l detail s o

f apro posedphaseou t

o f "Alar " tolerances , se e sep arat e stor y on pag e 9) , EP A estimate s tha t

th e chance s o

f aper son developin g cance r

ove r alifetim e fro m exposur e t o EBD C residue s on al l food s coul d b e a s hig ha s one-in-10,000 , aleve l tha t ha s typicall y triggere dchemica l restriction s in th e pas t EPA spokesma n Joh n Kaspe r say s th e companies ' voluntar y withdrawa l wil l b e ex amine db y th e agenc y becaus e suspension s requir e approva l "It' s entirel y possibl e w e couldmak e th e restriction s on EBDC' s us e

Continue do n Pag e 2 0 

# Chemica l Marketin g Rep§rter ~ VOLUM E 23 8 Numb«r1 1

SEPTEMBE R 11 . 198 9 

# Chlorofor m Proble m Cloud s CF C Outloo k

Exxo n Start s U p P P Unit ; EPD M Project s o n Targe t
Exxo n Chemica l Compan y ha s starte d u p ane w 310-million-poun dpolypropyl

en e uni t a t it s Baytown , Tex
. plant
. Th e facilit y use s technolog y license dfrom Mitsu i Petrochemical s Industries
. Lid
. o f Toky o Produc t

capabilit y cover s homopoly

mers , rando mcopolymer s an dimpac t co polymers
. Additio n o f impac t copolymer s t o th e com pany' s portfoli o .wil l enabl e i t t o increas e participatio n in th e expandin g automotive , applianc e an drigi dpackagin g markets , say s Gre g McPike , vice-presiden t fo r industr y secto r marketing
. I n additio n t o abroa dofferin g o f reacto r resins , over

th e nex t yea r w e wil l b e introduc

ing arang e o

f hig hperforming , polypropyl

ene-base dcompound s designe dt o bridg e th e performanc e ga p betwee n conventiona l polyolefin s an dengineerin g thermoplasti c resins, " h e says . Myte x Polymers
. Inc. , Exxon' s joint

ventur e wit

hMitsubish i Petro

chemical , will als o benefi t fro mth e resin-tai

lorin g capabilit y o

f th e ne w line , b e says . Mytex supplie s advance dpolypropylene

base dcompound s t o th e U S automotiv e in

dustr y an dJapanes e aut o companie s tha t hav e manufacturin g facilitie s locate di n Nort hAmerica , throug hExxon' s automotiv e an dtransportatio n industry secto r locate di n Farmingto n Hills , Mich Homopolymer s fromth e new lin e wil l b e targete dt o textil e an dpackagin g markets
. Th e new unit

raise s th e company' s tota l poly

propylen e capacit y t o abov e 1 billio n pound s pe r year . A t Farmingto n an dothe r

locations
. Exxo n i s als o expandin g ethylene-propylen e rubbe r in respons e t o increasin g deman dworldwid e i n automotiv e application s fo r suc b product s a s radiato r

hose , weathe r

stripping , plastic s modificatio n andmoto r

oi l additives , accord

in g t o Fran k

Brzenk
. directo r

o f th e com pany' s automotiv e an dtranspor t Industrie s secto r Th e executiv e say s th e expansion s Continue do n Pag e 2 1 Th e explosio n a t LC PChemical s Inc
. ' s Moundsvllle
. W
. Va. , plan t ha s resulte d i n th e shutdow n ther e o f carbo n tetra
chloride , methylen e chloride , methy l chlorid e an dchloroform , bu t th e chloro

for mmarke t

wil l b e hardes t

hi t b y thi s dro p i n supply
. LCP , Do w Chemical Company , Occidental Chemica l Compan y an dVulcan Material s Compan y wer e eac hin th e mids t o f plannin g 10 notif y customer s o

f a2-cent-per-poun d pric e increas e fo

r th e fourthquarter , be

caus e o f tigh t supplies , whe n th e acciden t occurre do

n Augus t 2 0 Chlorofor mi s expecte dt o gro w by 7 t o 9 percen t pe r yea r over th e nex t fiv e year s a s a ra w materia ] fo r

chlorofluorocarbo n 22
. whichi s not

regulate dunder

th e Montrea l Protocol , an di s bein g use dt o replac e CFC s 1 1 an d1 2 i

n som e application s LC Pwa s bringin g o

n ne w capacit y t o mee t

deman d when th e explosio n too k

place
. Aspokesma n say s althoug hth e caus e o f th e acciden t

ha s no t bee n completel y pinne ddown , ther e i s nothin g t o indicat e tha t

th e technolog y Itsel f wa s t o blame
. "W e hadru n tb e new uni t

on atria l basi s Th e explosio n occurre d1 4 hour s afte r w e ba d shu t i t down, " h e say s Th e technolog y i s li

censed , o n aUS-exclusiv e basis , fro m Tokuyam aSodaLtd
. an dwa s firs t expecte d t o b e on strea ma t

LC Plat e las t

year . Th e new plan t

wa s se t up I n paralle l wit

h 

# Chemica l Marketin gCue s CHLOROFORM : Plan t explosio n cloud s th e future out loo k fo rchlorof!uorocarix)n s Pag e 3 STYRENICS : Th e forecas t i s fo ra mor e competitiv

e styreni celastomer

s market Pag e 9 TDI : Industr

yawaits impac

t o f ne wcapacit yas record breakin g deman d continue s Pag e 1 3 th e ol don e an dLC Pintende dt o ru n the m bot h(o r abou t ayear an dthe n Uk

< uni t down , dependin g o

n marke t BWdrUo M Th e chloroformcapacit y o f th e new uni t

t s 9 0 millio n pound s pe r

year , th e ol duni t

mad e 4 0 millio n pound s pe r

year . Th e technolog y als o improve s th e rati o o f chloroformproductio n t o methyl ' productio n b

y th e us e o

f differen t catalyst s a t lo w temperatur e an dhighpressure , instea d o f hig htemperatur e an dlo w pressure . Tokuyam aSod

aha s use dthi s technolog y It

self to r severa l year s an dha s jus t license dIt t o acompan y t

n Spain , accordin g t o th e LC P spokesma n Methylen e chlorid e capacit y wa s l o b e uppe dat

LC Pa s well , from5 1 millio n i n th e ol dplan t

l o 6 0 millio n pound s pe r year i n th e new one Th e spokesma n say s ih e new uni t wa s to
tall y destroye dan dtha t

a s th e damag e sur vey continues , mor e problem s hav e bee n foun di n th e ol dunit

a s well , du e t o tin

- r

.pl< > slon
. A s reporte dearlier
. LC Pha s declare d forc e majeur e an dsource s sa y th e plan t problabl y canno t

b e repaire dunti l next

yea r A CFC-22 produce r

says . "Thi s outag e ha s aggravate dan alread y badsitu. i • shipment s wil l b e delaye dfo r som e cus tomer s "Th e timin g i s somewha t fortunate , though, " h e continues , "becaus e th e summe r coolin g seaso n i s ove r

" Seasona l buyin g fo

r chlorofor man dCFC-2 2 i s down bi n u < Continue do n Pag e 1 5 

# INSID E CM R Advomsofs ' md* . M CM R Busines s Brtff s I T Chemica l Import

s I I Chemica l Prices 4 2 Chomica l Proni o U Classifie d AtJvorttsomtmt s M OCCurronl a 7 Detergent s NowsFton l 3 8 Financia l NawsFron t « M Job s 4 Poopi o ... . 1 7 Meeting s Calenda rM New s Capsul a | PlasttcsWoo k

J 7 Specialtie s HowsFron i 3 4 CompJo. aMow s Insist* e n "•» • 4 Septembe r 11,198 9 CHEMICA L MARKETIN G REPORTE R

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.<*' .<9

### P. 4


# ALIPHATI C ORGANIC S Chlorofor m Proble m rie s wil l no t

b e rebuil t

fo r nex t year , causin g along-ter mshortag e outlook
. U S chlorofor mcapacity , includin g LCP , i s 53 1 millio n pound s pe r yea r an da produce r say s h e expect s 198 9 deman d t o reac h53 8 millio n pound s pe r year . B y 1990 , deman dwil l b e 57 6 millio n pounds , h e says . Th e LC Pspokesma n say s hi s compan y ha s ha dno inventory for

th e las t tw o years . All chloroformproducer s ha dpu t buyer s on or de r contro l las t

year , whic hmean s monthl y purchase s canno t

deviat e substantiall y fro m one-twelftho

f th e previou s year' s annua l purchas e volume
. CFC producer s hav e thei r customer s on simila r

orde r contro l systems , a s th e 198 6 productio n leve l cap s com e int o play , an dothe r

"tightening " i n contrac t term s ar e slowl y bein g implemented
. "Shorte r contrac t term s an dprice s effec

Uve wit hdat e o f shipmen t wil l b e institute d wher e possible, " on e produce r says . CFC pro ducer s hav e planne dou t

int o mid-199 0 wha t eac hcustome r

i s entitle dt o an dwhen
. "We'r e tryin g t o buil dinsom e flexibility t o allo w for custome r downtim e an ds o on, " on e says , "an dwe'r e als o tryin g t o kee p th e ad

ministrativ e tas k

fro mgettin g to o compli

cated. " "N o on e in thi s compan y ha s eve r don e thi s kin do

f thing, " anothe r

says , refer

rin g t o strategi c plannin g unde r th e quot a system . PRODUCTIO N REFLECT S 198 6 Eac hCFC compan y ma y produc e th e sam e numbe r o f Protocol-liste dozon e depletin g unit s i t di din 1986 , bu t

how tha t numbe r i s spli t betwee n CFC s 11,12,113, 114 , an dU S i s up t o th e producer
. CFC 11 3 ha s a n ozone depletin g valu e o

f 8/1 0 an dCFC U S ha s a valu e o f 6/10
. CFC s 11,1 2 an d11 4 eac hhav e avalu e o f 1
. I f aproduce r

export s som e CFCs , i t

ma y impor t an equivalen t

amoun t o f ozone deplet

in g values , bu t

only fro mon e o

f th e eigh t offshore firm s wit

hallowance s fo

r importin g int o th e US
. Thei r

tota l impor t

allocation s ar e als o specifie dunde r

th e Protocol
. Elf-Aquitan e S

AI s th e only produce r

with US allowance s (for

th e Atoche mplan t

in Wi

-

. chita , Kans. , an dPennwal t Corporation' s tw o plant s in Kentuck

y an dNew Jersey ) an dim

por t allowances
. Source s say thi s adde dflexibility wil l probabl y no t

hav e muc himpact , though
. Th e tigh t supplie s o

f CFC 22 ma y encour ag e highe r

price s nex t

yea r I f chloroform producer s as k

for anothe r increas e befor e th e sprin g buyin g season . Righ t no w CFC 22 i s $ 1 pe r poundan dCFC 12 , whic hi t i s replac

Continue d fro m Pag e 3

in g i n polystyren e foamblowing , i s f 1.0 4 pe r pound
. Unfortunatel y fo r producers , an y CFC pric e increase s ca n encourag e legisla

tio n befor e Congres s t o ta x wha t i t call s wind

fal l profit s resultin g fro mgovernmen t pol

icy
. At present , Dow' s off-lis t

chloroformin

creas e i s effecUv e Septembe r 7 , o r a s con 

# PRIC E TRENDLINE S WEE KENDIN G SEPT

. 8,198 9 

### CHANGES/U P CHANGES/DOW N ALIPHATIC S INDE X Th e Aliphati c Organic s Inde x reflect s th e price s o f 1 6 representativ e material s i n thi s secto r an d th e quantit y o f eac h produce d i n 1988 . Sep t 8,198 9 272.3 2 Sep t 1,198 9 269.4 9 Aug . 11,198 9 270.7 7 Sept

. 9,198 8 245.1 9 Chemical

Priest Star t on

Pagan
tract s allow
. Occidental' s lis t an doff-lis t

in

creas e wa s effectiv e Septembe r 1
. Othe r producer s ar e schedule dt o rais e lis t an doff

lis t on Octobe r

1
. 

## PATT

Y ROS E OXO CHEMICAL S - Th e dro p in feed

stoc k propylen e price s ha s no t ye t restore d margin s t o norma l levels , ox o chemica l pro ducer s say . Aleve l o

f roughl y 17c
. pe r

pound for chemical-grad e propylen e wouldb e nec essary , on e says , an dnomination s for Sep

tembe r range dfro m18c
. t o 19c
. pe r pound
. Ox o producer s di dno t

ge t th e off-lis t

in

crease s attempte di

n Apri l becaus e expor t market s wer e covere db y unusua l quantitie s o f Soviet material , especiall y for

butanol , a produce r says . They usuall y don' t ru n thei r plan t in th e winte r

becaus e th e weather' s to o severe . Thi s year , the y ha damil dwinte r an d ra n th e plan t

straigh t through
. They'r e mar ketin g th e outpu t

in th e Fa r

East, " h e says . Eastma n Chemica l Product s Inc
. an d Unio n Carbid e Corporatio n wil l bothhav e expansion s inplac e befor e th e en do f th e yea r an dal l producer s agre e tha t runnin g be



# ALIPHATI C ORGANI C OUTPUT : 2N D QTR . 198 9 U S INTERNATIONA L TRAD E COMMISSIO N NUMBER S I N 1,00 0 KILO S
Aceti cad d Uto a Action * kflo a Acrytonftril e ItOo s n-Butano

. kBo a Butadien e (rubbe rgrade ) k9o a Caprolacta m klo s Carbo n tetrachlorid e kDo a Chlorofor m kHo s Diathylan a Glyco l kUo a Ettianolamlna a (mono , d l an d tri ) kilo s Ethy l acalat a (8 5 percant ) kDo a Ethylen e Uo * Ethylen e glycol , mon o kBo a Ethylen e glycol , monooutytatha rkBo a Ethylen e oxid e kUo a 2-Ethylhaxano l kBo a Fluorocarbo n 1 1 kUo a Fluorocarbo n 1 2 kUo a Formaldehyd e (3 7 percan t b yweight ) kDo a Isopropy l alcoho l kUo a Methano l kDo a Methy l tert-buty l ethe rkBo a Methy l chlorid e kUo a Methylen e chlorid e kilo * Methy l ethy l keton e kUo a Pentaerythrito i kBo a Perchtoroettiylen e kDo a Propylen e kilo s Propylen e glyco l kDo a 1,1,1-Trichloroethan e kDo a Viny l scetat e monome rkDo a Vlny t chlorid e n 2n d QT R 't t 433,02 s 2e7,M 3 858,48 1 136,04 4 345,22 2 141,77 3 •3,05 4 37,23 8 e«,eo « 76\24 6 31,73 8 3,87348 6 775,13 0 42,05 5 731,43 7 101,26 7 27,46 1 35,20 3 740,34 5 173,33 3 (01,57 7 6(2,43 2 47,23 0 65,32 0 50,20 5 14,02 6 65,32 5 Zj273,13 4 34,71 3 35,73 3 2T7.3 M 332,37 1 CUM.'S 3

810,33 4 843,33 4 872,85 5 233,74 4 712,72 3 281,22 5 132,13 5 123,60 8 134,00 3 151.82 8 65,78 5 3\288,13 B 1,421,53 1 87,17 1 1,388,38 8 188,44 4 81,33 7 112,32 1 1,471,33 3 333,07 8 1,853,34 3 1,152,25 7 35,04 0 110,80 8 38,28 2 28,43 8 111,87 4 4,537,20 2 185,33 6 178,64 6 656,26 5 2,034,30 0 CUM.-3 8

737,40 8 304,78 3 300,82 0 242,08 8 708,35 7 272,05 0 172,82 8 114,03 1 102,73 8 135,23 4 41,77 2 8J)17,11 7 1,001,23 8 101,12 0 1,133,20 4 142,34 5 60,72 6 101,16 7 1,444,67 0 304,63 2 1,413,67 8 817,83 4 88,88 7 11X25 3 117,71 7 

## — 113,80 4 4,417,81 3 201,81 1 163,08 8 578,21 8 1,873,38 3 

# VIGILANCE

Niacet: Rising Above the Rest Fiercel y loya l an d protective , th e eagl e take s car e o f It s own . Niace t show s thi s sam e watchfulnes s an d car e toward s It s customers . W e insur e tha t ever y shipmen t o f chemical s yo u receiv e display s th e purit y an d consistent , lot-to-lo t uniformit y yo u depen d on . Ou r state-of-the-ar t facilitie s ar e designe d t o suppl y yo u wit h th e fines t meta l acetates , anioni c surfactant s an d propionates , whe n yo u nee d them , a t th e lowes t cost . Fo r hal f a century . Niace t ha s kep t carefu l watc h t o provid e to p qualit y foo d an d pharmaceutica l grad e chemical s t o ou r customers . Fo r superio r quality , superio r service , cal l Niace t today . UketktZafle... KeatUng for

the St y

Corpoiatio n Niagar a Fall s Blvd

. & 47t h Stree t Dept

. J

. Niagar a Falls

. N Y14304-210 2 716-285-147 4 800-828-120 7 (Tol l Free ) Tele x8151 2 • Fa x716-285-149 7



# DRU M DISPOSA L SERVIC E (Eas t o f th e Miss. ) 

# Wadco , Inc . Camden , N.J . 609-365-922 2


# Chemica l Marketin g Reporte r Quickes t Wa

y T o Kee p Curren t o n Chemica l Cost s 

# Mercaptans .

For us e a s chemica

l intermediate s i

n adhe

sives , agricultural prod

ucts , cosmetics , meta

l treating , paints , plastics , textile s o r chai n transfer agents . To leammore , write:
. Argu s Divisio n Witc o Corporatio n 52 0 Madiso n Avenue Ne w York , N Y 10022-423 6 Orcall212-605-360 0 

# Witc o

Septembe r 11,198 9 CHEMICA L MARKETIN G REPORTE R 1 5