FLUOROPOLYMERS
Tight, expensive feedstock alarms converters / Calls for mine reactivation / Arkema seals deal
The German semi-finished plastics and consumer products industry association pro-K (Frankfurt; www.pro-kunststoff.de) has sounded the alarm on soaring prices and tight supply of fluoropolymers and is calling for action to defuse the volatile market situation.
The association says notations for fluorothermoplastics (PTF) have increased one-and-a-half fold over the past year and the price of polytetrafluoroethylene (PTFE) twofold. It blames the upward spiral, which it sees as likely to continue over the next year, on an inadequate supply of fluorspar (calcium fluoride) feedstock. According to the association, fluorspar producers have not invested enough in the mines in recent years due to low profitability. However, it says demand is growing as new applications for high performance fluoropolymers have been developed, and at the same time the plastic applications face competition for the starting material from producers of environmentally friendly coolants.
To remedy the situation, pro-K says it will be necessary to reactive disused mines. The largest potential capacity is in China, followed by Namibia and South America. As pro-K notes, China is strictly limiting output, new sources must be developed and new polymerisation facilities built. The association also regards development of resource-conserving processing technology and productivity improvement in existing processes as essential. As a last-ditch measure, it says converters of fluropolymers have now begun to substitute other starting materials.
Meanwhile, France’s Arkema (Colombes; www.arkema.com), which has a significant position in hydrofluorocarbons used for refrigeration but also as blowing agents for polyurethane and polystyrene foams, recently moved to secure fluorspar feedstock for its North American operations. On 15 June it signed a memorandum of understanding with Canada Fluorspar Inc (CFI, Toronto; www.canadafluorspar.com) to finance the re-activation of CFI’s fluorspar project in St. Lawrence, Newfoundland. As part of the deal, Arkema will acquire a 9.9% stake in CFI and gain access to a share of the mine’s output.
The association says notations for fluorothermoplastics (PTF) have increased one-and-a-half fold over the past year and the price of polytetrafluoroethylene (PTFE) twofold. It blames the upward spiral, which it sees as likely to continue over the next year, on an inadequate supply of fluorspar (calcium fluoride) feedstock. According to the association, fluorspar producers have not invested enough in the mines in recent years due to low profitability. However, it says demand is growing as new applications for high performance fluoropolymers have been developed, and at the same time the plastic applications face competition for the starting material from producers of environmentally friendly coolants.
To remedy the situation, pro-K says it will be necessary to reactive disused mines. The largest potential capacity is in China, followed by Namibia and South America. As pro-K notes, China is strictly limiting output, new sources must be developed and new polymerisation facilities built. The association also regards development of resource-conserving processing technology and productivity improvement in existing processes as essential. As a last-ditch measure, it says converters of fluropolymers have now begun to substitute other starting materials.
Meanwhile, France’s Arkema (Colombes; www.arkema.com), which has a significant position in hydrofluorocarbons used for refrigeration but also as blowing agents for polyurethane and polystyrene foams, recently moved to secure fluorspar feedstock for its North American operations. On 15 June it signed a memorandum of understanding with Canada Fluorspar Inc (CFI, Toronto; www.canadafluorspar.com) to finance the re-activation of CFI’s fluorspar project in St. Lawrence, Newfoundland. As part of the deal, Arkema will acquire a 9.9% stake in CFI and gain access to a share of the mine’s output.
21.06.2011 Plasteurope.com [219644-0]
Published on 21.06.2011