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# OAR Box 1878

Prepped by Charmelle Mathews



## Document

Number: 

# 65 ) 11-1-4 4

Docket Number: 

# A-90-1 9

Printed 11/28/200811:47:27

AM Sheet 65of 68P. 2 

# {fi(^A^>S^4 ^ He r 

# A-90-1 9

IM-4 4 JUN E 198 8 Previou s Report—Novembe r198 5 

### ETHYLEN E DICHLORID E

FOCUS....Ethylen e dichlorid e (EDC) , als o know ns s 1,2-dichloroethane , i s principall y a n intermediat e fo

r makin g viny l chlorid e monome r (VCM) , whic hitsel f i s use d principall y t o mak e polyviny l chlorid e (PVC) . Les s tha n10 Ko f U S productio no f ED C i s use d fo r othe r purposes , mostl y expor t and producin g variou s chlorinate d solvents . Th e EPA remove d ED C fro

m it s lis t o f approve d pesticid e fumigant s i n lat e 1985 . Ex cep t fo r the par t o f Borden' s VC M plan t base d o

n acetylen e feedstock , al l U S viny l chlorid e monome r pro ductio ni s base d on EDC , whic hi s mad e fro m ethylen e an

d chlorine . i.- • PV C demand ha s increase d every yea r sinc e 1985 , an d therefor e s o ha s demand fo r EDC . Recen t growt hi n PV C stem s fro

m increase d acceptanc e i n product s use d i n residentia l constructio nsuc ha s viny l siding , use d t o a greate r exten t in ne w construction , a s wel l a s rigi d pipe , tubing , an d fittings . PVC i s als o makin g inroad s i n application s formerl y serve d b

y asbesto s cement , metal , an d cla y piping , al l o f whic h hav e bee nlosing marke t shar e t o PVC . Sinc e 1985 , U S ED C demand ha s bee nin th e rang e o f 1. 1 t o 1. 3 bil

lio nlbs./year , almos t doubl e tha t o f recessio nyea r 1982 . Capacit y utilizatio nincrease d t o almos t 8535 i n 1988 , u p fro m 43 S i n 1982 . Ne t export s i n 198 7 wer e 7.5! 8 o f tota l U S production , dow nfro m 8.755 i n 1982 . Capacit y increase s i n the Fa r Eas t an d Saud i Arabi a wil l reduc e U S expor t demand i n th e future . I n 1985 , ove r 90 % o f U S ED C export s wen t t o Japa nand Taiwan . Th e rati o i n 198 7 wa s ove r 92K . Th e relativel y favorabl e economic s o f balanced , integrate d plant s t o manufactur e VC M wil l encourag e additiona l ne w plan t constructio nin othe r countrie s t o satisf y locs l demand fo r VCM . The ED C produce d i n thes e plant s wil l b e use d captively , an

d be mad e availabl e t o th e merchan t marke t onl y in unusua l circumstances . OUTLOOK....Th e principa l us e fo r ED C a s a precurso r t o VC M an d the nt o PV

C i s likel y

t o remai nunchanged . Wit hth e mino r us e a s a fumigan t eliminate d b y EPA action , th e tren

d i s toward 98 % dependenc e o n PVC de
mand . A s demand for PV C inothe r countrie s justifie s constructio no f integrate d plants , expor t demand wil l trend downward . New

integrate d plant s represen t the mos t cos t efficien t approac ht o ne w capacit y a t thi s time . Optimu

m capacit y

i s approximatel y

66 0 millio npound s pe r yesr , base d o n curren t technology . A bal
ance d integrate d plan t employ s bot hchlorinatio nan d oxychlorinatio nreaction s an d yield s VCM

wit hchemi

ca l input s o f ethylene , chlorine , an d oxygen . Domesti c demand for PVC , an d therefor e EDC , i s dependen t principall y

o n housing constructio n(abou t 65S ) an d secondaril y

o n consume r applicstion s (automotiv e and packaging) . Th e Federa l Food an d Dru g Administratio n(FDA ) currentl y permit s th

e us e o f PVC (wit hstric t residua l VC

M requirements ) i n food-contac t applications . A s a result , increase d us e o f PV C i n bottle s an

d foo d wrappin g fil

m can b e expected . Thi s potentia l increas e wil l b e tempered , however , b y ne w an d pendin g regulation s coverin g the us e o f al l non-biodegradabl e plastic s becaus e o f soli d wast e disposa l problems . Wit hmatur e en

d use s an

d no technologica l breakthroug happarent , U S demand for ED C wil l follo w the busines s cycl e a s i t affect s demand fo r PVC . Moderat e growt hi n ne w housin g constructio ni s expected . Th e nex t fiv e year s wil l probabl y

sho w averag e growt hin domesti c demand for ED C o f les s tha n55 5 pe r year . PRICING . ...Discountin g fro m publishe d lis t price s fo r ED C ha s bee nth

e nor m fo r the pas t 2 5 years . Becaus e o f th e heav

y dependenc e o

n the pricin g o f PVC , whic hbasicall y control s th

e pric e o f VCM , an

d henc e EDC , pric e increase s wil l be possibl e whe ncorrespondin g increase s fo r PV C ar e accepte d b y the marke t place . Ove r 90 % o f ED C produce d in the U S i s used captively , mostl y fo r the manufactur e o f VCM . A s lon g a s a produce r o f VCM

supplie s hi s ow

nEDC , the issu e o f ED C pric e i s somewha t academic . Th e motivatio nt o in

creas e pric e fo

r ED C i s no t a s grea t a s fo r typica l merchan t marke t chemicals , in tha t th e integrate d pro duce r i s increasin g the pric e t o himself , logica l onl y i f h e ca n succee d i n increasin g th e pric e t o other s o f VC M o r othe r derivatives . Expor t price s shoul d increas e a t a faste r rat e tha ndomesti c value s becaus e o f ^th e relativ e strengt ho f foreigncurrencies . However , the increas e in ne w plan t constructio nabroa d wMI : "hav

e a revers e effec t o n the tren

d fo r expor t prices . Th e exten t t o whic hthes e competin g force s 'neutralize , eac hothe r wil l be influence d primaril y b y the rat e o f increas e o f worldwid e demand fo r PVC . \

\ 196 0 AVERAG E PRIC E RANGE Cent s Pe r Poun

d ETHYLEN E DICHLORID E Bul k - FO

B Plan t
196 5 197 0 197 5

A radeXist ; 9 9 9 AvgV^Sales' * 5 5 3 Ex'por t ^Valu e A x,y~A XSVWVt AND DEMAND... . Mi l lion s o f Pound s1 1 8 198 0 13.7 5 1 0 1 2 198 4

1 7 1 1 9 198 5 198 6 198 7 198 8 1 7 9 9 1 9 8 1 0

, .Estimated....Domesti c U S

Capacit y Productio n Import s Export s Demand 196 0 196 5

264 0 126 7 245 6 197 0

B13 5 746 0
68 0 678 0 197 5 1280 0 797 7
13 0 784 7 198 0 1639 0 1110 8 2 2 61 2 1051 8 198 4 1752 0 1071 0 2 7 75 9 997 8 198 5 198 6 1210 1 1210 1 1 4 97 3 1114 2 1581 7 1294 0 6 9 58 3 1242 6 1 9

8 1 1

198 7 1580 0 1219 7 3 8 95 3 112B 2 1 9

IKE ) 12(E ) 198 9 1 9

198 9 198 8 1580 0 13300(E ) 120(E ) 1130(E ) 12290(E ) 1200 0 199 1

1 9

199 1

1350 0
AVAILABILITY....Onl y

tw o U S producer s o f EDC , Shel l an d Vulcan , d o no t manufactur e VCM . Vulca nuse s some ED C fo r chlorinate d solvent s an d wit hShell , sell s the balanc e on the merchan t market . Mos t ED C produce d b y th e othe r U S manufacturer s i s use d internall y for VCM , whos e demand forecas t fo r 198 8 indicate s a nee d fo r abou t 12. 0 billio npound s o f EDC . Existin g capacit y fo r ED C i s adequat e t o suppl y thi s quantity . In additio nt o existin g capacity , Occidenta l Chemica l Corp . plan s t o buil d a n 80 0 millio npound pe r yea r ED C plan t a t Corpu s Christi , TX wit hproductio nstartin g in lat e 1989 . Ove r on e billio npound s o f U S capacit y hav e bee nidle d an

d coul d b

e re-starte d whe ndemand i s highenough . Ra w materia l supplie s hav e bee ntigh t durin g th

e pas t severa l months . Becaus e o f ne w ED C plan t constructio noverseas , export s (tonnag e an d rela
tive prices ) ar e likel y t o declin e i n th e future . 

# yP. 3

PRODUCER S AND CAPACITIE S - ETHYLEN E DICHLORID E - MILLION S O F POUND S

v PRODUCE R Dow Chemica l Dow Chemica l Formos a Plastic s Georgia-Gul f B F Goodric hChemica l B F Goodric hChemica l Occidenta l Chemica l Occidenta l Chemica l PPGIndustrie s Shel l Chemica l Vist a Vulca n LOCATIO N Freeport , T

X Plaquemine , L

A Bato nRouge , LA Plaquemine , L

A Calver t City , K

Y L a Porte , T

X Dee r Park , T

X Convent , L

A Lak e Charles , LA Dee r Park , T

X Lak e Charles , LA Geismar , L

A

TOTAL 19B B CAPACIT Y 270 0 170 0 60 0 160 0 100 0 158 5 16 5 80 0 270 0 140 0 120 0 35 0
1580 0

Base do nannounce dcapacitie s an dtrad e estimates . Occidenta l Chemica l i s buildin g a nED C uni t nex t t o a chlor-alkal i plan t purchase dfro m DuPon t at Corpu s Christi , TX . Start-u po f th e 80 0 millio npoundfacilit y i s schedule dfor mid-1989 . A majo r portio n o f it s outpu t i s planne dt o g o t o th e expor t market , afte r interna l need s for VC M productio nar e satisfied . EN D USES....Ethylen e dichlorid e i s a colorless , chloroform-lik e liqui duse dmainl y fo r the productio no f viny l chlorid e monome r (VCM) . Currently , onl y on e U S VC

M plan t (Borden ) stil l use s th e additio no f HC l t o acetylen e proces s t o mak e viny l chlorid e monomer . Polymer s o f VC M an dco-monomer s hav e a variet y o f gener a l purpos e an

dspecialize dplasti c applications . Althoug hther e ar e ne w outlet s i nelectrica l an delec
troni c applications , polyviny l chlorid e i s generall y a matur e industria l material . Ther e ar e now tw o prin

cipa l markets , flexibl e an drigid , wit habou t equa l tonnag e fo r bot htypes . PV

C pip e an

dconstructio npro file s typif y

rigi dapplications , wherea s packagin g films , calendere dsheeting , an dvinyl-coate dfabric s ar e majo r flexibl e products . Athleti c goods , toys , an dunder-the-hoo d automotiv e component s molde dfro m plastisol s ar e importan t flexibl e products . VCM productio nno

w account s fo

r approximatel y

98 % o f ED C consumptio ni nthe US . Chlorinatedsolvents , includin g perchloroethylene , trichloroethylene , an d1,1,1-trichloroethane , accoun t fo r abou t 1%. Miscella

neou s application s includ e vinyliden e chlorid e an dleadanti-knoc k blends . Dow an dCarbid e produc e ethyl
eneamine s fro

m EDC . Carbid e als o produce s ethyleneamine s startin g wit hethylen e oxid e rathe r tha nEDC . EN D US E PATTERN

- 198 8 ESTIMAT E

DERIVATIV E Viny l Chlorid e Monome r Chlorinate dSolvent s Miscellaneou s PERCEN T 9 8 1 1 MANUFACTURING....Until abou t 1 7 year s ago , ED C wa s isolate da s a by-produc t i nthe chlorohydri nproces s fo r manufacturin g ethylen e oxide . Ethylen e oxid e i s no longe r produce db y the chlorohydri nrout e i nth e US . Sinc e lat e 1970 , al l domesti c ED C ha s bee nmad e b y th e chlorinatio no

r oxychlorinatio no f ethylene . Mos t ED C i s produce da s anintermediat e i nthe integrate dmanufactur e o f viny l chlorid e o r chlorinate d solvents , althoug hsome ED C i s als o isolate dfor synthesi s o f othe r derivative s or for shipment . Mos t VCM i s produce db

y a balance dproces s tha t include s bot hchlorinatio nan doxychlorinatio nsteps . Th e benefi t o f thi s balance dproces s i s tha t chlorine , ethylene , an doxyge nar e the onl y feedstock s required . Hydroge n chlorid e require di nth e oxychlorinatio nste pi s generate dwithi nth e system . Adjustment s t o the relativ e flo w rate s o f specifi c constituent s i s possibl e whe ndesired . Fo r example , hydroge nchlorid e generate d elsewher e coul dbe utilize da s anexterna l feedstoc k i f doin g s o i s economicall y advantageous . Th e stoi

chiometr y

o f th e balance dproces s is :

00000000000000000000000000000000000000000000000000000000 0 Chlorin e - 0.6 3 lbs . 0 ED C 0.8 9 l b 5 » 0 > .Chlorination . $> 0 / 0 / 0 / Ethylen e - 0.4 8 lbs . 0 / ED C 0.7 7 lb $> 0 —. -> • .Oxychlorination . - ^ 0 0 Recycl e / 0 < - 0 HC l 0.5 8 l b 0 0 0 0 Viny l Chlorid e - 1. 0 lb . 0 0 0 0 0 0 00000000000000000000000000000000000000000000000000000000 0

ENVIRONMENTA L ASPECTS....Th e EP A classifie s ED C a s a probabl e huma ncarcinogen . A neffor t t o reduc e ven t ga s emission s fro

m ED C processin g plant s c^ nb e expected , mos t likel y b y convertin g fro

m ai r t o oxyge ni n the oxychlorinatio nplants . Doin g s o wil l reduc e th e volume o f vent-ga s significantly . The 1987-198 8 ACGI H recommende dexposur e limi t i s 1 0 pp m fo r an8-hou r time-weighte daverage . T o the bes t o f ou r knowledge , th e informatio ncontaine dherei ni s accurate . However , w e d o no t assume an

y liabilit y

whatsoeve r for th e completenes s o r accurac y o f thi s report .