Dow Chemical hike paper emulsion polymer prices in North America

Dow has announced that effective 3-July-2008 (or as contracts permit), it will increase prices by up to 10% - this includes styrene-butadien latexes (SBR) used as coating binders; hollow sphere plastic pigments; and all styrene acrylate (eg binders and surface sizes) and vinyl acrylate products. The announcement covers products sold into the paper and board industry in the USA and Canada.

This announcement comes on the back of an earlier statement on price increases, surcharges and the idling of plants.

BASF to increase price of acrylic monomers

BASF is to further increase prices for acrylic monomers. In a detailed price review, BASF has announced it will increase prices of acrylic acid and acrylic esters (glacial acrylic acid; methyl acrylate, ethyl acrylate, n-butyl acrylate, 2-ethyl hexyl acrylate), as contracts permit. The amount and timing of the price increases will vary by region.

These increases affect the pricing of a number of paper chemicals where acrylic monomers are used as raw materials: superabsorbent polymers; acrylate-based dispersions; polymer dispersions/emulsions used as coating binders, adhesives, synthetic strength additives and retention aids.

Air Products sell part of emulsion polymer business to Ashland

Air Products Inc announced it intends to sell its non-pressure emulsions businesses and related production facilities in Elkton, MD, and Piedmont, SC, to Ashland Inc. for $92 million.

The Piedmont facility manufactures Flexcryl pressure sensitive adhesives. The Elkton plant produces atmospheric emulsions that are used in paint, adhesives, and paper coatings.

In January 2008, Air Products sold its interest in Air Products Polymers to Wacker Chemie AG, its partner in the venture. As part of the sale, Air Products acquired full ownership of the Elkton and Piedmont facilities.

Air Products and Ashland expect the sale to be completed by the end of June 2008.

Emulsion Polymers: Dow increases prices in Europe, Middle East, India and Africa

In yet another price increase announcement, Dow Emulsion Polymers stated that with immediate effect or as contracts allow, prices will be increased by € 280/MT (dry) for all styrene butadiene (S/B) latex based emulsion products sold into paper, carpet, and specialty applications in Europe, and up to $ 600/MT (dry) for S/Bs sold to Middle East, Africa and India. The increase is to help offset the rising costs of transportation, raw materials and energy.

Cellulases in bio-refining

Doug Yoder of Buckman makes some comments on the commercial use cellulases in bio-refining, especially in mills which are 'refiner limited'.

Cargill and Novozymes join forces to generate acrylic acid from readily-available sugars

It was announced today that Cargill and Novozymes will jointly develop technology to produce acrylic acid using the fermentation of a renewable resource (glucose or other readily-available carbohydrate sources). The project is supported by $1.5 mio matching funds from the US Department of Energy.

The work involves the fermentation of sugar in the presence of a bio-engineered micro-organism to produce 3-hydroxypropionic acid (3-HPA). The 3-HPA can then be converted into a range of valuable chemicals including acrylic acid, which is a valuable, high volume chemical used in plastics, fiber, coatings, paints, inks and super-absorbent diapers (disposable nappies). In paper chemicals it finds use in water soluble polymers, flocculants, retention aids, coating binders etc

Currently, most acrylic acid is produced in the petrochemical industry by oxidation of propylene, a C-3 fraction from the refining of crude oil. More than half of the produced acrylic acid is used to make glacial acrylic acid for superabsorbents used in products such as diapers. This new approach from Cargill and Novozymes will not rely on crude oil but will move into the hotly debated area of using what is potentially a food source to generate chemicals (using food materials to generate bio-fuels is where most of the current debate exists as although it is an option to move away from the reliance on non-renewable crude oil, there has been an impact on world food prices).

Dow Chemical increases acylic acid and acrylate prices

Dow Chemical has announced price increases for acrylic acid and acrylates:
butyl acrylate, 2-ethylhexyl acrylate, ethyl acrylate, methyl acrylate and glacial acrylic acid globally as follows: North America by $0.03/lb; Asia Pacific by $70/tonne; Middle East/Africa by $70/tonne; Latin America by $70/tonne and Europe by Euro 50/tonne.

BASF increase polymer emulsion and powder prices in Europe

BASF announced price increases for polymer emulsions and powders in Europe effective October 15 or as contracts allow.

• Polymer dispersions and additives will increase by €40 to €60 per metric ton
• Ploymer powders will increase by €80 to €100 per metric ton.
  

The reasons given for for these increases are increasing production and logistic costs.

BASF price increase for coating resins

BASF announced it will increase the price of its coating resins by up to 15%.

The big European multi-nationals continue to be under pressure to increase prices and they are all making announcements in the media. For products linked to commodity raw material prices, it is easier to justify and achieve increases (eg binders, flocculants); however, for the speciality end of the market it remains to be seen whether the prices are realised. It is also particularly difficult to raise prices for products which are competitively produced in China and India (eg colourants).

The future for paper chemicals ..... some views from suppliers, users and a consultant

Some leading suppliers, users and a consultant were asked for their views on the future of paper chemicals and an interesting summary is given in the Tappi Paper 360 article by Glen Ostle. Topics include:

• Investment in R&D - various figures are given for the percentage an total amounts that companies spend but in my experience there is not a common definition of R&D and companies like to bolster the figures by including all technically-related activities as R&D. R&D spending of 2.5-3% of sales is mentioned, but inreality the figure is probably closer to 2%.
  
• Market drivers - cost is always high on the list and with escalating energy, raw material, transport and regulatory costs, this is not surprising. Other drivers include, environmental issues such as sustainability, use of renewable resources and compliance with changing regulation. The increasing need for strength is mentioned, driven by fibre shortage (use of alternative fibres), recycling and the need to use less fibre (cost). Increased demand for water-treatment chemicals, especially in India and China. De-inking will increase and demand for innovation in this area will continue.
  
• Future product demands - new coating binders based on natural products/renewable resources (eg biopolymer latexes). Recyclable barrier coatings. Biotechnology will play an increasingly important role as will the environmental agenda.
  
• Industry consolidation - the paper chemical supply industry remains very fragmented and future consolidation is inevitable. The emergence of a few global leaders plus specialists in certain stand-alone segments is expected. Surprisingly, no mention is made of the rapid growth of quality manufacturers and suppliers from India and China, perhaps because there were no contributors with strong experience of the supply industry in these emerging markets (or they preferred to live in denial of the impact that not-traditional suppliers are having in the market).
  

The article is interesting and more a confirmation of grass-root thinking rather than offering any new ideas.

The views of people from the following companies are given: Nalco, Hercules Paper Technologies & Ventures, Minerals Technologies, Klass Associates, Kemira Pulp & Paper, Buckman Laboratories, Dow Chemicals, Omya and Cargill.

Clariant announce price increases for paper chemicals.

Clariant joins the crowd in announcing price increases in paper chemicals. The reasons given are:

• continuing high price of crude oil
• high energy costs
• increased raw material prices - particularly from China

The price increases affect dyes (10-30%); optical brightening agents - OBAs or FWAs - to increase by 10-15%; and polymer emulsions.

As with the other announcements, it remains to be seen whether they are realised and start to show through in the balance sheet.

Celanese restructures PVOH and emulsion polymer business

Celanese announced it will restructure its PVOH and emulsion polymer business in North America and Europe. This includes restructuring and aligning manufacturing and R&D to ensure sustainable profitability. Structural and capacity utilisation improvements are expected to be realised over the next 18 months.