Perchloroethylene

*Millions of pounds per year. Most perchloroethylene (tetrachloroethylene) has traditionally been coproduced with carbon tetrachloride by chlorination of propylene. With the phaseout of CFC-11 and CFC-12, however, which made up virtually all of carbon tetrachloride's commercial use, producers of chlorinated solvents have modified their facilities to maximize perchloroethylene production while minimizing or eliminating carbon tetrachloride.

In the early 1990s Occidental Chemical and Dow shut down US perchloroethylene facilities with capacities totaling 230 million pounds. At the end of 1996, Vulcan closed a 25-million-pound plant at Wichita, Kans., consolidating its perchloroethylene and carbon tetrachloride production at Geismar.

Profile last published 10/30/00; this revision, 7/29/02.

DEMAND
2000: 339 million pounds; 2001: 335 million pounds; 2005: 365 million pounds, projected. Demand equals production plus imports (2000: 36 million pounds; 2001: 48 million pounds) less exports (2000: 64 million pounds; 2001: 50 million pounds).

PRICE
Historical (1996 - 2001): High, $0.37 per pound, list, indust. grade, consumers, tanks, dlvd., list; low, $0.32, same basis. Current: $0.32, same basis.

USES
Chemical precursor, 65 percent; dry cleaning, 15 percent; metal cleaning and vapor degreasing, 10 percent; miscellaneous, 10 percent.

STRENGTH
Perchloroethylene remains balanced as declines in end-markets were followed by capacity reductions, proportional to demand. Stable pricing reflects this balanced market. Its primary use is as a precursor to manufacture fluorocarbons, particularly hydrotetrafluoroethane (HFC-134a) which is used as a replacement for CFC-12 in refrigeration systems. In the US, this application has been growing at 9 percent per year for the past five years. There will be continued and strong growth here, however slower, perhaps 4 percent annually as the CFC-12 switch to HFC-134a is largely complete.

WEAKNESS
Conversion to more efficient dry cleaning equipment, required to meet stringent government rules covering workplace exposure levels, has resulted in a decline in perchloroethylene’s dry cleaning use by more than 65 percent over the past decade. This decline will continue for a few more years as alternative fabric cleaning methods are introduced. However, no demonstrated alternative has the versatility and low cost of perchloroethylene, thus this application will be around for a long time.

OUTLOOK
Although chlorinated solvents as a group are in disfavor for environmental and health concerns, perchloroethylene is one of several solvents listed by the EPA as an acceptable substitute for 1,1,1-trichloroethane in adhesives, coatings, and inks, and as a substitute for CFC-113 and 1,1,1-trichloroethane in metal cleaning. Long term, however, increased recycling and gradual substitution of perchloroethylene in all cleaning applications will cause aggregate demand to decrease. In the short term, fluorocarbon production will grow perchloroethylene demand by 2 percent per year.