CHEMICAL & ENGINEERING
NEWS VOLUME 38, NUMBER 50
The
Chemical W o r l d This W e e k
DECEMBER 12,
1960
High Density Polyethylene Shifts to High Gear Demand should almost double this year, but excess capacity will continue to plague producers for several years Output and sales of high density polyethylene are doing better this year than most observers expected. New markets are solidifying the gains already made, moreover, and promise further improvements in the future. Polypropylene looms as a challenge, but it is not expected to ruin the high density polyethylene business. Excess capacity, however, still wipes some of the luster from an otherwise bright picture. The industry's rated capacity probably will not balance with its production for several years. But producers continue to add capacity. The status of new plants and expansions planned or under way is: • Du Pont's 50 million pound-a-year high density polyethylene plant at Orange, Tex., is now on stream. • W. R. Grace plans to raise its Baton Rouge, La., capacity to 75 million pounds a year; the expansion will be finished in 1962 (C&EN, Dec. 5, page 2 9 ) . • Celanese completed a 10 million pound expansion at Pasadena, Tex., this year. • Also at Pasadena, Phillips Chemical will have its rated capacity up to 100 million pounds in 1961. • Goodrich-Gulfs new 13 million pound-a-year plant at Port Neches, Tex., will start up by April 1961. The plant will make other polyolefins later. • Allied Chemical will start turning out high density polyethylene at its new Orange, Tex., plant next year; the plant's original capacity of 11 million pounds now has been raised to 25 million pounds and the plant eventually will be a 50 to 75 million pound-a-year polyolefins (including polypropylene) complex. • Hercules Powder expects to start
up the first 50 million pound-a-year part of its proposed polypropylene plant at Lake Charles, La., early in 1961; when that plant starts up, Hercules will double high density polyethylene capacity to 60 million pounds a year at Parlin, N.J. • The Rexall-El Paso Natural Gas polyolefins plant at Odessa, Tex., is not under construction (see page 34). Thus as 1960 ends, rated capacity for low pressure process polyethylene should be 375 million pounds annually. When copolymers such as polyethylene-butene-1 are made, the rated levels are somewhat lower because a longer time is required to convert the butene. In addition, some Ziegler polyethylene plants have been converted to polypropylene—including AviSun's facilities leased from Kop-
pers, and Dow and Hercules plants— and all Ziegler plants are potential polypropylene producers. Next year's expansions and new facilities will increase capacity to about 468 million pounds, and capacity will be at least 100 million pounds higher in 1962 as a result of plans by RexallEl Paso, Grace, and Allied alone. Trade sources expect low pressure capacity to rise still further as other companies decide to enter the business. Mobil, Texas Butadiene & Chemical, Humble Oil, and Monsanto are among firms seen as future high density polyethylene producers. Output Gains. As capacity rises, production also continues to move upward. Output should total 210 million pounds this year, almost double the 115 million pounds produced in
Output of High Density Polyethylene Is Climbing Faster
DEC.
12, 1960 C & E N
29
Low Pressure Process Polyethylene Capacity Continues to Grow Company and Location
Process
Capacity, Millions of Pounds i960 1961
Allied Allied
30 —
30 25
Celanese Pasadena, Tex.
Phillips
50
50
Dow Chemical Bay City, Mich.
Ziegler
20
20
Du Pont Orange, Tex.
Du Pont
50
50
On stream now
Goodrich-Gulf Port Neches, Tex.
Ziegler
—
13
Due on stream by April 1961
W. R. Grace Baton Rouge, La.
Phillips
50
50
Expansion to 75 million pounds to be completed in 1962
Hercules Powder Parlin, N.J.
Ziegler
30
60
Will double polyethylene capacity at Parlin when polypropylene plant starts up at Lake Charles, La., in spring of 1961
Koppers Port Reading, N J .
Ziegler
15
15
Phillips Chemical Pasadena, Tex.
Phillips
75
100
30 25
30 25
TOTALS:
375
468
1959. In 1961, production may hit 300 million pounds. The sales picture shows similar sharp gains. Sales in 1960 should total 180 million pounds, up from 102 million pounds in 1959. In 1961, sales are expected to be 285 million pounds; volume could almost double by 1965. Very little low pressure process polyethylene is used captively. However, much of it is blended with low density polyethylene to make medium density materials. Molding Is Largest Outlet. Injection molding is the largest outlet for high density polyethylene, accounting for 47% of today's sales. Typical applications include large moldings, such as tote boxes. Demand for such mold30
C&EN
DEC.
12,
1960
Plant's capacity to be 60 to 75 million pounds by 1962, including other polyolefins
Expected to have 25 million pounds capacity for high density polyethylene as part of larger polyolefins plant
Union Carbide Plastics Institute, W.Va. Ziegler Seadrift, Tex. Phillips
Millions of Pounds 1959 1960 1961
Remarks
Allied Chemical Tonawanda, N.Y. Orange, Tex.
Rexall Drug and Chemical-El Paso Natural Gas Odessa, Tex. — — —
Molding Is Biggest Outlet for High Density Polyethylene
ings should increase by about 35% in 1961 to 115 million pounds. However, blow molding is challenging injection molding for the lofty perch in the high density polyethylene end-use pattern. Last year, only 6 million pounds went into blow molding; this year, the total should be 37 million pounds, and use may more than double next year. Most of the impetus is coming from detergent bottles and, to a lesser extent, from toys. Industry spokesmen feel that low and high density polyethylene will not clash too much in molding markets. They explain that the resins have different properties and will find different outlets. The same holds for polypropylene. In many cases, though
Injection molding Blow molding Pipe and conduit Film and sheet Export Filaments Wire and cable Paper and coatings Miscellaneous
45 6 9 5 25 6 1 0 5
85 37 17 8 21 4 2 1 5
115 95 22 21 18 4 3 2 5
TOTALS:
102
180
285
Source: C&EN
estimates.
there will be considerable competition among the various polyolefins. Price will often be a factor in molding applications. High density polyethylene sells for 35 cents a pound; polypropylene lists for 42 cents; low density polyethylene sells for 27.5 cents a pound. (Selling below list frequently occurs among polyolefins.) With excess capacity building up, particularly in high density polyethylene and polypropylene, pressures are developing which could lower prices. Film Market Limited. High density polyethylene is not making great strides in the film market—nor are great things expected—in marked contrast to low density material, which finds its largest outlets in film and sheet. But sheet applications for high density resin hold some promise in vacuum forming for packaging. Making strides, too, is the pipe and conduit market. It should increase about 30% in 1961 over 1960. But its long term growth depends upon price and strength requirements. Export Question. The export market takes about 2 5 % of polyethylene output, although it is more important for low density than for high density polyethylene. Next year, exports should decline a bit. But the trade has expected polyethylene exports to decline for several years now. So far they have held up. The rest of the high density polyethylene end-use pattern consists of filaments, wire and cable coatings, paper and coating uses, and other miscellaneous applications. The filament market has apparently leveled. But the others hold some promise for moderate growth.
