P.I 

OAR Box 1872 

Prepped by Keeia Richards 

Document Number: 

95) 11-1-144 

Docket Number: 

A-90-19 

Printed 11/26/2008 8:52:01 AM Sheet 95 of 204 
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AUGUST 1990 

PrrtouRtpon- February 1988 

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A-90-19 

H-l-144 

OEC 1 R I992 

BISPHENOL A 

£ =-A/•«.;.': 

FOCUS....Bisphenol A (abbreviated BPA) ia a primary raw material For the production of polycarbonate (PC), 

epoxy, bisphenol A/formaldehyde, phenoxy, and high-performance resine including polyesters, polyacrylatae, 

and polysulfones. Polycarbonates have substantially outpaced epoxiee aa the largest derivative of BPA, 

accounting for almost 60S of total US consumption of BPA. Most engineering plastics and high-performance 

reams, led by the PC's, continue to have high rates of consumption growth ss natal replacements in 

automotive, appliance and electronic applications. Polyeerbonetea have become the largest volume 

engineering plastic, in 1989 finally surpassing demand for nylon, excluding fiber applications. 

With continued strong growth in PC's and unexpectedly strong growth in epoxies, considered by many to 

be too mature to grow at more than the general economy, BPA demand increaaed at the rate of about SS per 

year since 1986 and production grew st an even higher rste, reaching the one billion pound level in 1967 

and en al l time high of over 1.1 billion pounds in 1989. Strong export markets alao bolstered BPA demand, 

nun s sieep cnange upwards in 1987 as tna us ooiiar weaxeneo ana neipeo co apur export sejes or OPA eno 

i t s key derivatives - epoxiea and PC'a. Production statistics tsken from the US International Trade 

CUIIHII.IOOJ.UII icyui'kou luiaa us uuvpui ui e m i n 1700 ui I,J- uimon pounce, HU B rjgurw 10 ueuavvu wu urn 

overstated since i t is more than 200 million pounds greater than estimated BPA capacity in piece that 

year. A more reasonable estimate of production hae been included herein. 

OUTLOOK....Demand for polycarbonates rose drsmstieally in the late I960'a, reaching a level of about 650 

million pounds in 1989, with demand growth in the range of 8-108 per year. After a flat year in 1990 owing 

to the economic slowdown, PC growth ia expected to resume in 1991 to a rate in the range of 5-88 per year 

for moat of the 1990'a. 

Consumption of epoxy resins wee supposed to have leveled off some years ago, but for the period 1986-

1989 grew et about a 6-735 compounded rate. Epoxies may have only limited future growth in end uses such aa 

protective coatings and adhesives, but thera will be growth in eleetrieel/electronie applications in 

fiber-reinforced laminates for printed circuit boards and encapsulations for electronic devices. After an 

expected 5-7S downturn in 1990, epoxy growth should pick up to the 3-5* per year level through 1995. 

Based mainly on a high level of growth for PC resins, overall US BPA consumption wil l probably 

increase by ebout 55 annually over the next five year period, after a alight downturn in 1990, with PC 

demand flat, epoxiBs down and exports off ebout 205 Tram 1989 levele. 

PRICING....Captive consumption for epoxy, polycarbonate, end specialty reain manufacture accounts for 

about two-thirds of US bisphenol A demand. Therefore, it ie difficult to determine what BPA trenefer 

values are assigned for internal use. Moat merchant market sales are to large-volume reain producers at 

negotiated prices. Thus, published liat prices generally do not reflect actual selling pricea, which are 

reflected in the lower average sales value ee reported by the USITC. 

AVERAGE PRICE RANGE - BISPHENOL A 

Cents Per Pound - TL/CL (Hopper) - Freight Allowed • Epoxy Grade 

1960 

Trade List T9 $ 

Avg. Salsa 27 

1965 1970 1975 

TBI Toi "ny 

Zl 17 33 

• HISTORICAL *********** 

19B0 1985 1986 1987 

TT ST TT TTT 

48 48 43 49 

1988 1989 

TT 8739T 

55 56(E) 

• PROJECTED • 

1990 1992 

• T7TJ4 T T 

The list price for polycarbonate grade ie 4 cants per pound higher, 

SUPPLY AND DCKAND....Millions of Pounds....Estimated....Domeatic US 

1960 

Capseity 

Production 5) 

Merchant Sales 

Imports 

Exports 

Demand 51 

1965 1970 1975 

T TU ~D1S TT? 

97 202 293 

97 

• HISTORICAL •* 

I960 1985 1986 

""BtfJ TIB "9lB 

530 949 956 

130 330 341 

97 202 293 

40 

490 

62 

667 

79 

877 

*********.«»«••««#«• « PROJECTED • 

1987 .1988 1989 199.0 1992 

T EH TUB TI75 •1425" T575 

1000 1070(E) 1133(P) • 

409 422 440(E) • 

2 4 23 • 

112 103 95 • 

888 971 1061 • 1050 1150 

Importa of bisphenol A, separately reported by the US Bureau of Census, were less than 1/2 million 

pounds per year before 1987. Exports of BPA were not separately reported before 1984. Exports for 

I960 are estimated. Production statistics taken from USITC data, except for estimeted 1988. 

AVAILABILITY....Shortages of cunene-derived phenol raw material could develop, but it is not anticipated 

that bisphenol A supply will be affected. All US producers of BPA alao manufacture phenol and would 

probably give supply preference to making raw material available to manufacture higher velue added derivatives such as BPA. From the standpoint of capseity for BPA itself, the US in 1990 appears to be entering a 

protracted period of excess capacity. GE finished a 150 million pound per year unit in Alabama in early 

1990 but with disappointing demand, stert-up hss been postponed until 1991. Shell's expansion (e net 

addition of about 100 million pounds) hss met with continued delays and will not etart until 1991. 

Adequate supplies of BPA ere assured for the foreseeeble future. Domestic availability will alao be 

enhenced by decreased exports ae more capacity is Installed oversees, Japan in particular. Mitsui will be 

adding 30,000 tons capacity slone and will 0V a new 50,000 ton plant with Mitsubishi. Nippon Steel and 

Idemitsu ars reportedly planning new phenol/BPA unita. New plants are also planned for Europe. 
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SgiiT BYJRTP, N. C. 27709 ; 3- 8-91 ; 3:51PM ; RADIAN CORPORATION- 215 643 2772.# 5 

PRODUCERS AMD CAPACITIES - BISPHENOL A - HILL IM S &T POtfCS 

PRODUCER LOCATION 1990 CAPACITY 

Aristech Haverhill , OH 230 

Dow Chemical Freeport, TX 325 

General Electri c Mt. Vernon, IN 370 

General Electri c Burkaville , AL 150 

Shell Chemical Deer Park, TX 350 

TOTAL 1425 

Based on announced capacities and trade estimates, as of mid-1990. Dow added 100 million 

pounds of capacity in 1989. GE's new plant at Burkevilla waa completed in early 1990 but 

ia not expected to be started up until 1991 due to slack demand internally for the production of polycarbonate reaina. GE uses all materiel ceptively. Shall ia adding a new 

250 million pound unit at Deer Park, due on stream by 1991, but will than ehut some 

older capacity, resulting in a net increase of ebout 100 million pounda per year* 

END USES....Bisphenol A (BPA), alao referred to es 2,2-bie(p-hydroxyphenyl) propane and 4,4 ieopropylidenediphenol, ia a monomer used to produce epoxy, polycarbonate, BPA-formaldehyde, phenoxy, polyester, 

and other reaina. It alao functions aa a chemical intermediate since it can be readily halogenated, hydrogenated. and sulfonated. Applications for various reaina and derivatives of BPA include tha construction, 

automotive, aircraft, appliance, end electronic induatriea. 

BPA ia a crystalline, prilled, or flake material with a mild phenolic odor. Dow introduced a granulated form in 1987. It ia soluble in alcohol end acetone, slightly soluble in csrbon tetrachloride, 

practically insoluble in water, but soluble in aqueous alkaline solutione. Commercially, biephenol A is 

available in both epoxy end higher-purity polycarbonate grades, sold at a higher price, the polycarbonate 

grade is alao uaad for polyaulfone resins, for making epoxy reaina, and moat other uaes, the epoxy grade 

ia usually suitable. 

Polycarbonate resins, made by reacting biephenol A with phoagene (carbonyl chloride), are water-white, 

impact-resistant thermoplastic polymers used for high-performance moldings, shetterproof window glazing, 

and a variety of specialties. Polycarbonates are now the major derivetive of BPA, and have surpsesed nylon 

aa the largest volume so-celled "engineering" resins. 

Epoxy resins, previously the largeat outlet for BPA, are commonly the reaction products of a polyhydrie phenol and a chlorohydrin or simple epoxida. The major commerciel epoxy ie obtained using biephenol A 

and epichlorohydrin as the reactants. Epoxy resins provide toughneaa, corroaion resistance, adheaion, end 

electrical insulation, among other properties. Epoxiee are widely used in protective coatings, adhesives, 

end plastics. Epoxy resins sre elso widely used in laminating printed circuit boards and for encapsulsting 

electrical devices. Phenoxy resins ere produced by the eopolymsrizstion of BPA and epichlorohydrin but, 

unlike epoxies, do not require eeterificatlon with long-chain unsaturated ecida or reection with snides or 

amines to produce cured resins. Costings based on phenoxy resins are tough and have excellent adhesion. 

Bisphenol A-formaldehyde resine are used in specialty applications, including inks, coatings, varnishes, snd abrasive binders. Polyesters are prepsred from BPA and an alkalene oxide such as propylene oxide. The glycol produced in the reaction can be eeterifiwd with maleic or other dibesie aeido. These polyesters have excellent chemical resistance and can be laminated with glsss fiber to fabricate eorroeionresistent chemical process equipment. Tetrabromobisphenol A, the principal hslogenated derivative of BPA, 

has flems-retardant applicationsEND USE PATTERN - 1989 ESTIMATE 

DERIVATIVE PERCENT 

Polycarbonata Reaina 58 

Epoxy Resine 35 

Tetrebromobisphenol A 2 

Miscellaneous 5 

MANUFACTURING....About 0.88 pound of phenol ie required to produce one pound of biephenol A, with ebout 

0.28 pound of acetone needed. Bisphenol A la produced by the condensation of two moles of phenol with one 

mole of ecetone. Excess phenol ie reected with scetone in the presence of an aeid catalyst, using a email 

amount of a catalyst promoter such as methyl merceptan. The catalyst, dry hydrogen chloride gee, ie 

bubbled through the mixture for several hours and the reaction temperature ia controlled. After reaction, 

crude product is stripped of HCI end water of reaction. Recovered HCI and excess phenol ere recycled. 

Crude BPA ie dropped es a slurry into stille for purification. The slurry is washed with water, neutralized with milk of lime, and diatilled under vacuum at temperatures up to 150DC. The molten product remaining in the still is sparged with steam at 15D'C to remove final traces of the odorous mercaptan promoter. 

The deodorized melt ia then quenched in water, wasnaa, filtered, and dried. 

While biephenol A plants ere comparatively eimple, the production of BPA is a delicate proceae eince e 

number of isomers and tri- or mono-hvdroxy byproducts are formed. While a product containing these impurities may be used for the manufacture of epoxy resine, it is not suitable for polycarbonates. Early 

batch processes eliminated these impurities by high-cost crystallization. Newer processes employ distillation and extractive crystallization under pressure to purify crude biephenol A continuouely. This greatly 

improves the economics. Distillation of BPA ie eepscielly difficult because numerous elements, some in 

minute concentration!, decompose the product or promote the formation of polymers and tar. 

ENVIROKNTAL ASPECTS....Bisphenol A is irritating to skin snd eyes. The solid materiel ie en irritating 

dust and can irritate upper respiratory passages. The EPA hae propoaed tests of pulmonary effects ss well 

as aquatic toxicity. The ingestion toxicity of BPA is very low, but ingestion should be minimized. 

To the bast of our knowledge, the information contained herein ia accurate. However, we 

do not assume any liability whetsoever for the completeness or accuracy of this report.