2 million tonnes of fluorochemicals
7 Aug 2001
World demand for fluorochemicals is forecast to grow at 3.4% per year to 2 million tonnes in 2005, and reach a value of $11.4 billion, according to new research from the Freedonia Group.
The CFC phase out will continue in developing countries and HCFCs, the primary substitute for CFCs in the 1990s, now face significant restrictions. However, robust gains in HFCs will offset some of these losses, and stellar growth in fluoropolymers and specialty fluorochemicals will provide additional momentum.
Nonetheless, competition from nonfluorinated alternatives will continue to restrain growth in most sectors.
Response to environmental bans on CFCs and HCFCs has varied greatly among countries and this will play a key role in future prospects for fluorochemicals demand. The US - the world' s largest producer and consumer of fluorochemicals - and Japan, Latin America and most other developing regions, have generally replaced banned substances with other fluorine-based products.
In contrast, Europe, particularly northern countries such as Germany, Denmark and Sweden, hasbeen a strong proponent of hydrocarbons and other nonfluorinated alternatives. As a result, Western Europe will be the slowest growing region, despite relatively healthy gains in demand for fluoropolymers and other specialty fluorine chemicals.
The fastest growth is expected in Asia, especially China, India, South Korea and developing nations in Southeast Asia. These countries are experiencing rapid industrialisation and rising consumer incomes which will drive demand for refrigeration and air conditioning equipment and other products using fluorochemicals.
In addition, these countries are generally expected to replace CFCs with other fluorine compounds, at least in the short term. The strongest growth for fluorochemicals is expected for a variety of specialty products including gases and polymers used in the electronics industry, pharmaceutical and agrochemical intermediates, novel polymer formulations, various specialty chemicals and HFCs, all of which will record gains well above the industry average. For example, demand for HFCs will increase 16 percent per annum to more than 500,000 metric tons in 2005.
Producers continue to develop new products which are expanding the range of fluorochemical uses, with recent new applications including lithium batteries, fuel cells and vinyl siding capstock.
World Fluorochemicals is available for $4,500 from The Freedonia Group.
