Chloroacetic Acid

*Millions of pounds per year of monochloroacetic acid (MCA). Commercial production of MCA is by direct chlorination of acetic acid using either a sulfur or phosphorus catalyst, or by conversion of dichloroacetic acid to MCA by hydrogen reduction over palladium. Most MCA is produced for captive use.

Profile last published 1/1/01; this revision 5/19/03.

DEMAND

2001: 97.1 million pounds; 2002: 91.6 million pounds; 2006: 98.0 million pounds, projected. Demand equals production plus imports (2001: 35.6 million pounds; 2002: 34.3 million pounds) less exports (2001: 1.5 million pounds; 2002: 4.7 million pounds).

GROWTH

Historical (1997 - 2002): 0.3 percent per year; future: 1.7 percent per year through 2003.

PRICE

Historical (1997 - 2002): High, $0.75 per pound, technical purity, flake, 99 percent, bags, t.l., f.o.b. works; low, $0.73 per pound, same basis. Current: $0.77 to $0.79 per pound, same basis.

USES

Thioglycolic acid (TGA), 34 percent; 2,4-dichlorophenoxyacetic acid (2,4-D) and salts, 20 percent; carboxymethylcellulose (CMC), 19 percent; miscellaneous, including surfactants, cyanoacetic acid, phenoxyacetic acid, glycine and chloroacetic acid esters, 27 percent.

STRENGTH

Thioglycolic acid is primarily consumed as an intermediate in the production of tin stabilizers used for processing PVC resins. TGA is growing at 2.5 percent annually, mirroring the growth of the PVC business sector. TGA is MCA’s largest demand sector, consuming nearly 33 million pounds last year. Though PVC consumption was slowed by a downturn in construction because of this past winter’s unusually cold weather, the prospects for PVC look good with the anticipated recovery of the U.S. economy.

Carboxymethylcellulose is used as a thickening agent in a vast array of products including oil field admixes, foods, pharmaceuticals, cosmetics and textiles. Its demand is double digit and nearly recession-proof, but imported CMC is tempering demand for domestically produced material. Thus only modest growth of 1.5 percent per year is anticipated. Miscellaneous applications are growing at about 1.5 percent annually as a group.

WEAKNESS

The only significant downside is 2,4-dichlorophenoxyacetic acid as it continues its long, slow decline – about 1 percent per annum. The principal use of 2,4-D is in herbicides.

OUTLOOK

The MCA market is growing modestly and chiefly due to thioglycolic acid. The overall the growth rate is projected to be 1.7 percent per year, through 2006. No new production capacity has been announced, as the current installed capacity plus imported material is adequate to meet anticipated future demand. Nearly 40 percent of domestic demand is satisfied through imports.

HISTORICAL DATA