Demand to reach 4%/yr
By Staff -- Purchasing, 11/4/1999
Demand for flame retardants is expected to reach more than 4%/yr, growing to 1.5 billion lb by 2003, according to a recent report by Cleveland, Ohio-based chemical market analysis firm, The Freedonia Group. The main reasons for this include expanding applications and safety and environmental regulations.Environmental concerns over the use of halogenated compounds, including bromine, chlorine, and some phosphorus-based products, will deter future growth as end users opt for non-halogenated phosphorus, magnesium hydroxide, and silicone-based compounds.
Among the types of flame retardants identified by the report, those made from Alumina trihydrate will account for the largest production volume (about 557 million lb/yr in 1999). At an annual growth rate of 3.1%/yr, production for these products is predicted to reach 630-million lb/yr by 2003, according to the report.
Halogenated compounds will account for the second largest production in 1999 (about 372 million lb/yr). These products are forecast for growth at 5.2%/yr. In 2003, the report predicts demand for halogenated compounds will reach 456 million lb/yr.
While 1999 demand for flame retardants made with nonhalogenated phosphorus will be only 111 million lb/yr, Freedonia identifies this category for the greatest annual growth rate (5.8%/yr) through 2003. The report predicts demand for these flame retardants to reach 139 million lb/yr in 2003.
The report also identifies antimony oxide (68 million lb/yr in 1999) to grow at 2.6%/yr, and "other" flame retardants, which are estimated to account for 167 million lb/yr in 1999, to grow at an annual rate of 4.6%/yr. By 2003, production of flame retardants made from these products are predicted to reach 75 million lb/yr and 200 million lb/yr, respectively.
Other findings
The plastics markets continue to be the most important outlet for flame retardants in the U.S., accounting for about 80% of total flame retardant demand in 1998. According to Freedonia, this will continue as more resins are being developed that can be more economically used with flame retardants without sacrificing strength color and light stability traits.
In addition, the three most important end markets for flame retardant plastics are construction, electrical and electronic devices, and motor vehicles. The report outlines strong opportunities in the electronics market, which is driven by consumer electronics and wire and cable applications. In these markets, demand for higher-value, specialty grades of flame-retardant plastics is particularly strong.
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