P.1 

OAR Box 1878 

Prepped by Charmelle Mathews 

Document Number: 

64) 11-1-43 

Docket Number: 

A-90-19 

Printed 11/28/2008 11:47:27AM Sheet 64 of 68 
P.2 

CHEMICAL PROFILE 

POLYBUTADIENE „,,«' 

SUPPLY 

PRODUCER CAPACITY* 

American Synthetic, Louisville, Ky 70,000 

Firestone, Orange, Tex. » 110,000 

Goodyear, Beaumont, Tex 160,000 

Poiysar, Orange, Tex 03,000 

Poly sar, Samia, Ontario, Canada 63,000 

Total 466,000 

'Metric tons per year, net rubber basis, solution-polymerized poly-butadiene basis. 

Firestone also runs a flexible SBR/PB production unit at Lak e Charles, La. 

Goodyear 1 s and American Synthetic's totals include some multi-purpose SBR capacity. Goodyear will add another 11,340 metric tons of capacity by earty next year. 

American synthetic will expand its capacity at Louisville by the end of next year. 

Profile last published, 5/20/85; this revision, 5/23/86. 

DEMAND (US) 

1987:454,800 metric tons; 1988:461,600 metric tons; 1992:490,000 metric 

tons. Includes imports, which satisfied 21 percent of US demand last year, as 

weM as exports, 16.5 percent of domestic production in 1987. 

GROWTH 

Historical (1978-1987): 1.9 percent per year, future: 1 to 2 percent per year 

through 1992. 

JfttOE 

Historical (1961-1987): High, 75c. per pound, dear, solution polymerized, 

cl., f.o.b., works; low, 22c. per pound, same basis. Current 67.75c. per pound, 

rubber grade; 69.75c. per pound, plastic grade, same basis. Selling prices range 

from 54c. to 64c. per pound. 

USES 

Automobile, truck, bus tries and treads, 69 percent; high impact resin modification (primarily polystyrene), 15 percent, exports 13 percent; industrial products (conveyor belts, hoses, seals and gaskets) and other, 3 percent 

STRENGTH 

Exports of US-produced material shot up 156 percent last year, to 61,000 

metric tons. Despite downsizing and imports, tire sales have remained stable 

with specialty grade sales strong. The industry is running at 98 percent nameplate. 

I 

1 

WEAKNESS 

Although running strong the marketJias reached te growth limrt in ccrrw«xfty 

segments. Market prices remain significantly below list in the mid to upper 50a 

per pound range. 

OUTLOOK 

While average overall market growth is unlikely to exceed 2 percent per year 

through 1992, demand for new specialty materials, including blends of solution 

PB with SBR, may grow by as much as 4 to 6 percent per year, and eventuaty 

Jominate the tire market S 

A-90-19 

II-I-43 

While negotiated rulemaking is suitable for only a few regulatory proposals, 

"negotiation can achieve dramatic improvements in the substance and efficiency of an agency rule," a chemical 

industry official told the Senate Governmental Affairs Committee, last week. 

David F. Zoll, vice-president and general 

counsel of Chemical Manufacturers Association, told the committee his organization has 

participated in five regulatory negotiations. 

Two were with Occupational Safety & Health 

Administration regarding MDA and benzene. 

Three were with Environmental Protection 

Agency regarding underground injection, 

PCB's and RCRA. 

Mr. Zoll gave the committee the industry's 

views on a bill proposed by Sen. Carl Levin 

(D. Mich.) that would establish a framework 

for the conduct of negotiated rulemaking and 

encourage agencies to use the process 

whenever it will enhance the informal rulemaking process. Agencies would be authorized to establish negotiated rulemaking committees to develop proposed rules. 

Although many agencies already have the 

authority to establish such committees, the 

process has not been employed very often, 

except for EPA which has conducted seven 

negotiated rulemakings since 1983. 

Mr. Zoll says he believes that negotiation 

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Chemical Shippe 

Uniform Hazmat 

A coalition of industrial chemical 

shippers told a House subcommittee last 

week that hazardous material transportation is a national issue that should 

be regulated at the Federal level, and 

not by various state and local governments. 

Paul M. Donovan testified on behalf of 

Chlorine Institute, B.F. Goodrich, CIL Corp., 

Dow Chemical USA and Occidental Chemical 

Corporation before the House surface transportation subcommittee, which is considering an overhaul of the Hazardous Materials 

Transportation Act. The last authorization of 

the statute expired in 1986. 

Mr. Donovan says that while shippers will 

not tolerate unsafe transportation conditions, it is not in the industry's or the nation's 

best interest to impose a variety of "multiple, unnecessary or conflicting hazmat regulations." 

"This nation's economic and social future 

is directly tied to an efficient, workable hazmat transportation system. Safety is the first 

priority, but regulations at the Federal, state 

and local level must be consistent and reasonably related to actual safety needs," Mr. 

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