# OAR Box 1872

Prepped by Keeia Richards



## Document

Number: 

# 30 ) 11-1-7 9

Docket Number: 

# A-90-1 9

Printed 11/26/20088:51:50AM Sheet 30of 204 P. 1P. 2

1 S 

# &tm^?k*6«uS<t^

JANUAR Y 199 0 Previou s Repor

t — Marc h 198 8 

# A-90-1 9 II-I-7 9

BUTADIEN E

FOCUS....Butadien e i s th e primar y ra w materie l fo r syntheti c rubber , use dprincipall y fo r makin g over-the roa dtires . I t i s als o use dt o mak e othe r elastomers , polymer s en dplasti c materials . Additionally , buta dien e i s e chemice l intermediat e i nth e synthesi s o f hexamethylenediamine . U S outpu t o f butadien e now ex ceed s 3. 0 billio npounds , wit h198 8 tote l U S deman dslightl y i nexces s o f 3. 8 billio npounds . I nth e 1985 - 198 6 period , apparen t U S consumptio no f butadien e droppe dsharpl y a s deman dfo r U S mad e automobile s en d othe r 'vehicl e tire s declined , leadin g t o reduce ddeman dfo r domesticall y produce dorigina l equipmen t an d replacemen t tires . Th e resurgenc e i nU S deman dwel l int o 1989 , withi na stron g economy , ma y wel l signa l th e hig hwate r mar k fo r U S butadien e consumption . Sinc e variou s syntheti c rubber s accoun t fo r ebou t 70 S o f tota l U S butedien e requirements , deman d change s fo r AB S (acrylonitrile-butadiene-styrene ) plastics , nylo nraw materials , styrene-butadien e latex , an dothe r non-rubbe r derivative s hav e onl y limite dimpac t o noveral l consumption . Mos t non-rubbe r deriva

tive s ar e matur e wit hrelativel y stati c deman dpattern s tha t ofte nfluctuat e wit heconomi c conditions . Hexamethylenediamine , a ra w materia l fo r nylo n66 , reflect s th e healt ho f constructio nan dtransportatio n whic hdictat e consumptio no f nylo ncarpets . Styrene-butadien e late xi s use di nadhesiv e an dcoatin g appli

cation s a s wel l e s concret e modification . I nplasti c molding , AB S growt hha s slowe di nrecen t years . OUTLOOK....Althoug hU S consumptio no f butedien e increase ddramaticall y i n198 7 an d1988 , lon g term deman d fo r butadien e will.continu e t o declin e wit hreduce drequirement s fo r syntheti c rubbe r becaus e o f qualit y an dperformanc e improvements'i nautomobil e an dothe r roa dtires . Fo r mor e tha na decade , worldwid e con sumptio no f styrene-butadien e an dbutadien e rubbe r decline da s th e marketplac e we s influence db y th e increase dus e o f radia l tires , lowe r spee dlimits , an d th e introductio no f smalle r vehicles . I nrecen t years , performanc e improvement s fo r tire s hsv e begu nt o cu t deman dfo r rubbe r sn d raw materials . It ha s bee nestimate dtha t curren t passenge r tire s consume , o naverage , 3. 4 metri c ton s o f polybutadien e an d styrene-butadien e rubbe r ever y thousan dunits . Ne w

composition s an ddesign s fo r radia l tire s ma y mor e tha n doubl e th e anticipate dmileag e fo r e singl e origina l equipmen t factor y installe dtire . I f thes e ne w tire s les t fo r clos e t o th e lif e o f th e vehicle , the y wil l drasticall y

reduc e th e replacemen t tir e marke t whic h account s fo r ebou t 75S» o f U S en d50 % o f Europea ntir e demand . Th e increase davailabilit y o f natura l rubber , principall y

becaus e o f overplantinq . coul dals o reduc e deman dfo r butediene . Althoug hstartin g fro

m a smal l base , ther e ar e som e newe r butadien e application s tha t wil l experienc e relativel y

repi dgrowt hi nfutur e years . Liqui dhydroxyl-terminate dhomopolymer s o f butadien e ar e use d primaril y

i npolyurethane s for sealants , waterproo f membranes , electrica l encapsulsnt s en dBdhesives . Thes e er e findin g ne w specialt y

applications . Methy l methacrylate-butadiene-styren e (M3S ) impac t modifier s en dprocessin g aid s fo r th e plastic s industr y ar e anothe r specialt y produc t lin e enjoyin g rapi dgrowth . PRICING....Historically , butadien e velue s wer e readil y predicte dwhe nsignificen t quantitie s wer e pro duce do npurpose . Currently , wit hextractio nfro m ethylen e coproduc t stream s accountin g fo r almos t 955 5 o f output , i t i s mor e difficul t t o defin e costs . Relativ e coproduc t value s o f ethylen e productio ndepen do n th e typ e o f U S feedstoc k used . Durin g 1988 , butedien e price s droppe dprecipitousl y t o belo w

1 5 cent s a s coproduc t wa s readil y available . A s U S price s decline dth e amoun t o f import s comin g int o th e U S wa s reduce dBn d th e co-creckin g o f C 4 stream s i nEurop e picke dup . Th e reduce dimport s an dth e temporar y outage s a t som e majo r U S Gul f Coas t olefin s plsnt s cause dshortage s i nth e firs t hal f o f 198 9 an dprice s increase dt o ebou t 20-2 1 cent s b y mid-year , the nfurthe r strengthene dt o 2 3 cent s b y yeB r end . AVERAG E PRIC E RANG E - BUTADIEN E - REFINE D Cent s Pe r Poun d- Bul k - FO B Plan t - Gul f Coas t ««»«*«#«*#«#*##««««#««*##«« « HISTORICA L «•••**«**««««*«*«<*««**«<*# « Trad e Lia t Avg . Sale s 196 0

T2T7 5 12. 9 196 5 

### TTT7 5 10. 0 197 0

8. 7 197 5 1577 5 16. 5 198 5

~2B ~ 3 3 •* * PROJECTE D ••'•* 198 9 199 0 199 2 

### • ~TT ~W ~W * 20(E ) SUPPL YAM ) DEMAND....Million s o f Pounds....Estimated....Domesti c U S

«**•««*««.**«*««*««•«««««««« « HISTORICA L 196 0 Capacit y Productio n188 3 Import 8 Export s Deman d188 3 196 5 197 0



### T O W 7250 " 268 5 310 1

11 4 268 5 321 5 197 5

*2~f0 " 259 7 46 0 7 3 298 4 198 0 

### 77T0 " 279 9 57 6 13 0 324 5 198 5 T7u7 f 234 0 58 4 18 7 273 7 198 6 

### 392 T 254 6 42 6 18 0 279 2 198 7 

### 7510 " 300 2 82 3 15 0 367 5 198 8 

### T55D " 316 9 77 9 13 2 381 6 *••

PROJECTE D ••• • 198 9 199 0 199 2 * 1550 " STDT

J

* 3100(E )

* 550(E )

* 15(E )

* 3635(E ) 350 0 330 0 AVAILABILITY....Despi t e som e shor t ter m butedien e suppl y

dislocations , n o extende dsuppl y problem s ar e anticipate dfo r th e nex t fe w years . Ther e i s exces s U S capacit y whic hca nb e utilize di f pric e an deconom ic s justify . Ther e i s currentl y als o exces s capacit y i nEurop e whic hca nb e utilize dfo r shipmen t t o th e U S o r th e Fa r Eas t i f th e pric e i s acceptable . Th e suppl y overhan g wil l b e eve ngreate r i f Texa s Petro chemical s proceed s wit hthei r announce dintentio nt o reactivat e a 50 0 millio npoun dpe r yea r idle dextrac tio nuni t i n1990 . I nth e US , althoug hsom e facilitie s ma y b e place do nstandby , ther e shoul db e adequat e butedien e capacit y

eithe r a s a coproduc t o r b y dehydrogenatio no f butylenes . A s U S import s declin e ove r th e nex t fe w

years , ther e wil l probabl y b e a growin g butadien e surplu s i nEurope . Th e Europea nsurplu s ca n probabl y b e dispose do f b

y co-crackin g mixe dC 4 streems . Overseas , ther e er e ne w facilitie s bein g built . A s e nexample , i nItal y Margher a Butadiene , a join t ventur e o f Italy' s Montedip e an dJapan' s Nippo nZeo n(NZ ) an dMitsu i & Co. , ha s buil t 8 60,00 0 metri c to n pe r yee r butedien e plan t e t Port o Marghera , Venice . Montedipe , th e petrochemica l ar m o f Montedison , supplie s th e plan t wit hC 4 fro m it s Port o Margher a complex . 8/8 7P. 3

i n ; i 

# • 

# • ' J J

# i i 0 D I

# I] 

# illP. 4

PRODUCER S AN D CAPACITIE S - BUTADIEN E - MILLION S O F POT1D S

PRODUCE R Amoc o Exxo n Exxo n Lyondel l Mobi l Occidenta l Petrochemica l (Cain ) Occidenta l Petrochemica l (Cain ) Shel l Shel l Texac o Texa s Petrochemical s LOCATIO N Chocolat e Bayou , TX Bato nRouge , L A Baytown , TX Channelview , T X Beaumont , T X Corpu s Christi , TX Chocolat e Bayou , TX Dee r Park , T

X Norco , L A Por t Neches , TX Houston , T

X

TOTAL \ • V "''•

. I9B 9 CAPACIT Y



# — m 35 0 - 25 0 50 0 8 0 22 0 13 0 25 0 50 0 60 0 BO O 388 0

Base dontred e estimate s o f effectiv e extractio ncapacity . Dow Chemica l shu t it s 4 5 millio n poundcaptiv e plen t i nFreeport , T Xi nJul y

1987 . Texa s Petrochemical s i s th e onl y produce r wit hon-purpos e butylen e dehydrogenatio ncapacit y whic hi s runt o mee t marke t needs . EN D USES....Butadiene , e nunsaturate dhydrocarbon , exist s i ntw o isomers , o f whic h1, 3 butadien e i s commerciall y

important . Thi s olefi ni s a ga s a t ordinar y temperature s an

dreadil y

form s many

products , principall y

^.severa l elastomer s en drubbers . Th e rubber s includ e 6tyrene-butadien e (SBR) , pol y butadiene , chloroprene . an dni t rile . ,.• Polychloropren e (neoprene ) andnitril e (ecrylonitrile-butediene ) er e specialty , elastomers . Chloropren e he s goo dresistance,t o oil , hea t an dweather . Nitril e rubber s er e resistan t t o oila , gaaoline , abrasio nan dhea t aging . Syntheti c rubber s accoun t fo r abou t 70 S o f U S butadien e consump tion . Moto r vehicl e tire s us e 60-65 % o f SBRwit hmechanica l rubbe r good s fo r automotiv e an dindustria l use e suc ha s belts , gaskets , an dhose s accountin g fo r th e balance . Polybutedien e rubber , th e secondlar ges t derivative , i s use dprincipall y fo r tir e treads . Th

e increasin g us e o f longe r lastin g radia l tires , couple dwit hsmalle r tire s fo r downsize dautomobiles , en dlowe r mileage , cause s reduce doveral l butadien e consumption . Styrene-butadien e late xan dacrylonitrile-butadiene-etyren e (ABS ) plasti c resin s ar e significan t non rubbe r polyme r derivatives . Liqui dhydroxy l terminate dstraigh t chai nhomopolymer s o f butedien e ar e use d t o provid e flexibilit y t o adhesives , caulk s an dsimila r products . Miscellaneou s use s includ e copolymer s wit hmaleiO'anhydrid e an dplasti c impac t modifier s suc hs s methy l methacrylate-butediene-styren e polymers . A s a chemica l ra

w materiel , DuPon t produce s hexamethylenediamine , a nintermediat e fo r nylo n66 , fro

m butadien e vi a the intermediat e adiponitrile . EN D US E PATTER

N - 198 9 ESTIMAT E

DERIVATIV E Styrene-butedien e Rubbe r Polybutedien e Rubbe r Chloropren e Rubbe r Nitril e Rubbe r PERCEN T 

## ~^n — 2 1 7 3 DERIVATIV E

Hexamethylenediamin e Styrene-butadien e Lete x AB S Resin s Miscellaneou s PERCEN T —TD — 1 0 8 4 MANUFACTURING....Essentiall y al l U S productio no f butadien e no w involve s extractio nfro m a variet y

o f stream s obtaine di nth e stea m crackin g o f hydrocarbons t o yiel dolefins . Smal l amount s o f butadien e er e els o produce dby

_th e dehydrogenationo f butylene s mad e i nrefinerie s o r e s byproduc t i nolefin s production . Productio no f on-purpos e butadien e b y oxy-dehydrogenatio nhowever , ha s bee ndiscontinue di n th e U S fo

r economi c reasons . Onl y Texa s Petrochemical s intermittentl y operete a abou t 35 0 millio npound s o f dehydr o capacit y

ou t o f a potentia l 80 0 mm . lbs . o f existin g capacity . Som e butylen e i s mad e availabl e i n th e productio no f MTBE . The norma l feedstoc k fo r MTB E i s a Raffinat e 1 strea m containin g bot his o en d norma l butylene . Th e isobutylen e i s extracte di nth e MTB E proces s an dth e norma l butylen e i s lef t a s a by produc t an dsuitabl e fo r furthe r processing . Raffinat e I stream s ar e th e "leftovers 1 * fro m conventiona l butadien e extractio nfro m olefi nplan t C 4 cut s containin g primaril y butadien e an

dmixe dbutylenes . Th e feedstoc k use di nstea m cracker s t o mak e ethylen e determine s th e relativ e yiel do f butadiene . Th e heavie r the feedstoc k th e highe r th e butadien e production . Stea m crackin g o f naphth a yield s 0.1 4 t o 0.1 7 lbs . o f butadien e pe r lb . o f ethylene , wherea s crackin g ethan e yield s onl y 0.0 3 lbs . I nEurope , wher e naphth a continue s t o b e th e majo r stea m cracke r feedstock , th e yiel di a muc hhighe r tha ni nth e US . It i s anticipate dtha t mor e naphth a wil l b e cracke di nth e U S a s th e lea dphasedow

no f gasolin e accelerates , increasin g th e availabilit y o f lo w octan e naphtha , normall y undeaireabl e i ngasolin e blending . Ther e ar e varyin g technique s fo r butadien e extraction . Extractiv e distillatio nusin g solvent s suc ha s acetonitrile , N-methylpyrrolidone , dimethy l formamide , or dimethylacetamid e i s common . I nextrectiv e distillation , butadien e dissolve s preferentiall y i na naqueou s solutio no f th e solvent . Th e butadiene/sol

ven t mixtur e i s withdraw nfro m the bottom

o f a distillatio ncolum nefte r remova l o f othe r butenes . I na secon dcolumn , butadien e i s separate dfro m th e solvent . I na thir dcolumn , fina l purificatio ni a achieved .

• a • ENVIRONMENTA L ASPECTS....Butedien e i s a ski nan dmucou s membran e irritan t an dca nb e narcoti c i nhig hcon centrations . Th e 1989/199 0 ACGIH exposur e standar di s 1 0 pp m fo r a n8-hou r time weighte daverage . Buta dien e i s a suspecte dhuma ncarcinoge nen dworke r exposur e mus t b e carefull y controlled . Base do nprelim

inary informstion , OSH

A consider s 1, 3 butadien e carcinogenic , e s doe s EPA . OSH A he s a consensu s exposur e standar do f 100 0 pp

m average dove r eigh t hour s fro m 197 1 an

di s considerin g etiffe r restrictions . I n1986 , OSH A publishe danadvanc e notic e o f propose drulemakin g seekin g dat a onexposur e levels , medica l surveil

lanc e an dth e possibl e effect s o f additiona l regulation s o nth e environmen t an do nsmal l business . I n response , th e Internstions l Institut e o f Syntheti c Rubbe r Producer s ha s tol dOSH A tha t it think s th e permissibl e butadien e exposur e leve l shoul d b e lowere dt o 1 0 ppm .

T o th e bes t o f ou r knowledge , th e informstio ncontsine d hereini s accurate . However , we d o no t assume an

y liabilit y

whatsoeve r fo

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