SPECIALTY CHEMICALS
C R E D I T: S H UT T E RSTO CK
Robust demand should continue in 2018 Persistent growth in the U.S., continued economic expansion in Asia, and a renewal of demand in Europe all bode well for specialty chemical output in 2018, according to the American Chemistry Council. The trade association projects a 3.0% global production rise in 2018 after a 2.5% increase in 2017. Ever optimistic, ACC had expected output to jump 3.3% in 2017. But despite an overall pickup in the global economy, some industries that depend on specialty chemicals, such as oil and gas drilling, were weak, ACC says. Industry observers say the elements are in place for a better 2018. Ray Will, a director at the consulting firm IHS Markit, discerns a number of trends likely to increase demand for specialty chemicals. Among them are a shift to electric vehicles and a move away from the use of fluorochemical coolants in home refrigerators. China, Will says, plans to establish a system of quotas that will require electric vehicles to make up at least 10% of automakers’ Hydrocarbons and CO2 are winning the global battle to fill home refrigerators, says output beginning in 2019 and inconsultant Ray Will. creasing annually thereafter. The ing, are significantly more expensive, he notes. move is likely to bolster demand for battery The paints and coatings sector should benefit materials as well as the electrolyte solutions that shuttle a charge between a battery’s anode from an uptick in the economy, especially in the U.S., where tax reform will boost capital spendand cathode. ing, predicts Phil Phillips, president of Chemark Chemical makers could be in for a sweet ride if electric vehicles catch on in the U.S., points out Consulting Group. New machinery and equipment, he says, require a significant amount of credit rating agency Fitch Ratings. While Fitch paint. Phillips expects paint production to rise sets the value of chemicals in a conventional about 3.5% in 2018. vehicle at $3,000, it estimates the value of chemAdhesives will grow at a similar rate, Phillips icals used in electric vehicles at $10,000, mostly says, singling out a projected increase in derelated to batteries. mand for urethane adhesives to assemble and In the world of refrigeration, manufacturers seal automobile body components. are seeking coolants with low global warming Consumer demand for personal care chemipotential. Rather than shift to hydrofluoroolefin cals continues to rise, according to the consultrefrigerants, many makers of home refrigerators, especially in Europe and Japan, are shifting to hy- ing firm Kline & Co. Trends in the $1.6 billionper-year specialty ingredients market include drocarbon refrigerants, Will says. The hydrofluoroolefins, developed for use in auto air-condition- growing demand for blue filters said to protect skin from computer screen emissions and cosmetics formulated to protect skin from air pollutants, says Kunal Mahajan, a chemicals project manager with Kline.—MARC
Manufacturers are seeking coolants with low global warming potential.
REISCH JANUARY 8, 2018 | CEN.ACS.ORG | C&EN
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