Polychloroprene  

*Thousands of metric tons per year of polychloroprene (neoprene). Commercial production starts with chlorination of butadiene to produce chloroprene monomer, which undergoes emulsion polymerization to form polychloroprene rubber (CR). Polychloroprene is produced in a variety of grades in both dry and latex forms. Dry grades of CR are normally used in industrial and automotive rubber goods such as hoses and belts. Latex grades of CR are used in waterborne adhesives and dipped goods, such as gloves and constant velocity joint boots.

In 1998, Bayer closeed its Houston CR facility and consolidated CR production at its Dormagen, Germany, site. The Houston plant had production capacity of 27 thousand metric tons per year, while Dormagen can make about 70 thousand metric tons. Bayer closed the plant because of the declining market over the prior several years.

The DuPont CR plants at Laplace and Louisville are part of DuPont Dow Elastomers joint venture.

Profile last published 10/28/96; this revision, 4/29/02.

DEMAND
2000: 58 thousand metric tons; 2001: 55 thousand metric tons; 2005: 51 thousand metric tons, projected. Demand equals production plus imports (2000: 18 thousand metric tons; 2001: 16 thousand metric tons) less exports (2000: 62 thousand metric tons; 2001: 49 thousand metric tons).

GROWTH
Historical (1996 - 2001): minus 3.0 percent per year; future: minus 2.0 percent per year through 2005.

PRICE
Historical (1996 - 2001): High, $1.95-3.04 per pound, t.l., f.o.b. works, frt. equald.; low, $1.81-2.18 , same basis. Current: $1.95-3.04 per pound, same basis. Latex at the low end of the range, general-purpose grades in the middle and adhesive grades at the high end.

USES
Mechanical rubber goods, 30 percent; automotive components, 25 percent; adhesives, 20 percent; construction, 6 percent; coated fabrics, 5 percent; miscellaneous, including wire and cable, 14 percent.

STRENGTH
Polychloroprene is noted primarily for its high resilience and excellent resistance to ozone, flame and weathering; it also possesses high strength and good resistance to abrasion, oxidants, oil and aging. For these attributes, CR finds application in a wide variety of coated fabrics, such as athletic equipment, footwear, dipped goods and lowsmoke flame-retardant cushioning. In these applications, substitution by competing polymers is believed to have run its course. More than half of the CR produced in the US is exported.

WEAKNESS
Demand for CR has declined by about 3 percent per year from 1996 through 2001. This is because of its relatively high price and increasing substitution from competing elastomers such as EPDM (ethylene-propylene diene monomer rubber) and PVC-NBR (nitrile butadiene rubber). This trend has been most notable in the automotive sector, which represents about 25 percent of the demand.

OUTLOOK
As average under-hood temperatures in automobiles have been increasing, auto producers have been substituting CR with products having higher resilience thresholds. This performance-driven substitution will cause consumption of CR in automotive goods to continue to drop in the next four years. Overall, demand if projected to drop by 2 percent per year, through 2005.