Polyvinyl Alcohol

PRODUCER

CAPACITY*

Celanese, Calvert City, Ky.

115

Celanese, Pasadena, Tex.

75

DuPont, LaPorte, Tex.

135

Solutia, Springfield, Mass.

25

Solutia, Trenton, Mich.

25

Total

375

*Millions of pounds per year of polyvinyl alcohol (PVA). Commercial production is from alcoholysis of polymerized vinyl acetate. An estimated 70 percent of merchant PVA sales is fully hydrolyzed grades, but partially hydrolyzed grades, custom blends and copolymers are also produced.

Solutia’s production in Springfield and Trenton is captive, and used for polyvinyl butyral (PVB).

In October, 2000, Air Products completed the sale of its polyvinyl alcohol business to Celanese AG, of Kronberg, Germany. Included in the sale were facilities in Pasadena, Tex., and Calvert City, Ky. Celanese produces vinyl acetate monomer (VAM), a key raw material for PVA. Celanese will divert about 15% of its 1.2-million m.t./year VAM capacity for internal consumption.

Profile last published 1/5/98; this revision 1/1/01.

DEMAND
1998: 318 million pounds; 1999: 323 million pounds; 2003: 346 million pounds, projected. Demand equals production plus imports (1998: 51.8 million pounds; 1999: 42.8 million pounds) less exports (1998: 92.3 million pounds; 1999: 81.2 million pounds).

GROWTH
Historical (1994 - 1999): 1.5 percent per year; future: 1.6 percent per year through 2003.

PRICE
Historical (1994 - 1999): High, $1.41 per pound, fully hydrolyzed, medium viscosity, t.l., bags, dlvd.; low, $1.30, same basis. Current: $1.37 to $1.41 per pound, same basis.

USES
Polyvinyl butyral, 35 percent; textile warp sizing, 23 percent; adhesives, 17 percent; polymerization aids, 10 percent; paper coating and sizing, 8 percent; miscellaneous, 7 percent.

STRENGTH
The largest application sector for PVA in the U.S. is for the manufacture of polyvinyl butyral, presently growing at 2.5 percent per annum. The driver for PVB is its use in laminated safety glass for automotive windshields and load resistant architectural glass applications. The trend to lighten automobiles holds promise to incorporate even more PVB into automotive glass, as lighter laminates replace heavier monolithic side and rear windows. Annual growth in adhesives is also good, but slightly less at 2.4 percent. Demand for PVA in paper coatings is expected to grow at 2.8 percent, driven by increasing use of recycled fibers in printing stock. In papermaking, PVA's higher strength gives it an edge on conventional pigment binders such as casein, soy protein and starch. PVA for polymerization aids is also doing modestly well, with growth projected at 2.8 percent annually.

WEAKNESS
PVA-based textile sizing agents are slowly declining, at about 1.4 percent per year, primarily due to textile imports displacing U.S. production.

OUTLOOK
Most of the applications for PVA are mature and consequently their growth rates are somewhat below the GDP rate. But because of the declining textile sizing segment, PVA’s second largest market, the overall growth will be constrained to 1.6 percent per year through 2003.

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