Chloroparaffins    

*Millions of pounds per year of chlorinated paraffins, liquid and resinous. Materials are produced by the direct chlorination of paraffins and include short-chain chlorinated paraffins (C_10-13, SCCPs) and mid-chain chlorinated paraffins (C_14-19, MCCPs), which are liquids at room temperature and normal pressure. The long-chain chlorinated paraffins (C_>20, LCCPs), which are highly chlorinated, are resinous solids. The boiling points of chlorinated paraffins are usually above 200°C.

Keil Chemical is a division of Ferro Corporation. Dover Chemical Corporation is a subsidary of ICC Industries. In 2000, Occidental Petroleum Corporation sold its chlorinated paraffins business to Dover Chemical. Occidental had production capacity in Deer Park, Tex., of 70 million pounds annually. Previously, ICI sold its Canadian Forest Products Division (which includes the chlorinated paraffins operations) to Pioneer Companies in 1997 and is now operated as PCI Chemicals Canada Inc.

Profile last published 4/26/99; this revision 8/26/02.

DEMAND
2000: 97 million pounds; 2001: 96 million pounds; 2005: 97 million pounds, projected. Demand equals production plus imports (negligible) less exports (estimated to be about 11 to 16 million pounds in any recent year).

GROWTH
Historical (1996 - 2001): 0 percent per year; future: 0 percent per year through 2005.

PRICE
Historical (1996 - 2001): High, $0.70 per pound, 50 percent chlorine, list, drums, t.l., del.; low, $0.70, same basis. Current: $0.73 same basis.

USES
Metal working fluids and lubricants, 50 percent; plastics additives, 20 percent; rubber, 12 percent; coatings, 9 percent; caulks, sealants and adhesives, 6 percent; miscellaneous, 3 percent.

STRENGTH
The best prospects for chlorinated paraffins depend on their major applications as metalworking coolants and as secondary plasticizer and flame retardant additives for polymers and elastomers. These are mature applications, however, and real growth is not anticipated. Exports of chlorinated paraffins, though not reported separately by the Bureau of Census, have grown in importance and are estimated to run from 10 to 15 percent of domestic production in recent years.

WEAKNESS
Green issues and environmentalist pressures against chlorinated materials are ongoing, although no further regulatory action directly relating to chlorinated paraffins is anticipated. The market is mature and has exhibited essentially no growth over the past decade and a half. This is reflected in the consolidation of producers and production capacity between 1986 and 2000.

OUTLOOK
The European Union (EU) is proceeding to adopt restrictions on the use of short-chain chlorinated paraffins (SCCPs) for metalworking and leather finishing. Other uses of SCCPs, such as in paints, coatings and flame retardants, are not affected. This action was initially recommended in the EU Official Journal on November 13, 1999 and culminates a multi-year review by the EU on all uses of SCCPs. The EU's decision should not impact the use of SCCPs in the United States. In the mid-1990's, the US Environmental Protection Agency completed its own extensive investigation of SCCPs and concluded there was no need to restrict any of its uses, including in metalworking fluids. The 2002-2005 growth outlook for chlorinated paraffins is stagnant.