Methyl Chloride 

*Millions of pounds per year. Commercial production of chloromethanes is by reaction of methanol and hydrogen chloride. Capacities are flexible as other chloromethanes (methylene chloride, chloroform and carbon tetrachloride) can be produced in the same equipment. Listed capacities for Dow and Vulcan, however, do not include capacity given to manufacturing precursor methyl chloride used to produce other chlorinated methanes. GE Plastics and Dow Corning use all of their material captively in production of silicones.

In 1999, Dow completed a 10 percent capacity expansion at Freeport, TX, and recently initiated a similar modernization and capacity expansion project in Plaquemine, LA.

Profile last published 11/17/97; this revision, 10/2/00.

DEMAND
1998: 690 million pounds; 1999: 710 million pounds; 2003: 800 million pounds, projected. Demand equals production plus imports (1998: 1.6 million pounds; 1999: 1.2 million pounds) less exports (1998: 14.0 million pounds; 1999: 17.5 million pounds).

PRICE
Historical (1994 - 1999): High, $0.385 per pound, indust., bulk, tanks, works; low, $0.28, same basis. Current: $0.385, same basis.

USES
Methyl chlorosilanes used as intermediates for silicones, 89 percent; methyl cellulose ethers, 3 percent; quaternary ammonium compounds, 3 percent; herbicides, 2 percent; butyl rubber, 1 percent; miscellaneous, 2 percent.

STRENGTH
Most methyl chloride is used as an intermediate feedstock in silicone fluids, elastomers and resins -- all significant growth applications. Silicone fluids are widely used in processing aids (e.g., surfactants, release agents, lubricants), chemical specialties (e.g., cosmetics, polishes), paper coatings, and electrical, pharmaceutical and medicinal applications. Silicone elastomers are used by the construction industry in sealants and adhesives. And silicone resins are used in high-temperature duty and weather resistant coatings.

WEAKNESS
Methyl chloride is one of the more toxic chlorinated organic compounds. Consequently it is not used as a solvent vehicle in applications where it would be emissive, but as an intermediate feedstock for other chemicals. Methyl chloride's agricultural use has leveled off, reflecting environmental concerns and competition of methane arsonates with other herbicides. Quaternary ammonium compounds, with end uses in fabric softeners and organoclays for drilling muds, is stable but a non-growth area. The butyl rubber market is mature, with North American production limited to one Canadian and one US company, and no increase in annual consumption is anticipated.

OUTLOOK
While chlorinated organic chemicals have been under pressure from government regulations (phase out or limitations on emissions) in recent years, methyl chloride has become the most important product of the chloromethanes group and its future appears to be quite favorable. The dominant driving factor is silicone derivatives, which are projected to grow at 3 percent annually. While some silicone markets are maturing, development of newer high-performance process aids, resins and surfactants more than compensates. Since methyl chloride is utilized largely as a chemical intermediate, environmental concerns are minimal compared to some of the other chloromethanes and chlorinated C2 solvents.