• 14 de junho de 2024
  • Market: Chemicals, Chlor-Alkali

PVDF demand to increase chlor-alkali consumption

The demand growth of polyvinylidene fluoride (PVDF) is dependent on lithium-ion batteries for battery-operated electric vehicle (EV) demand and stationery electrical storage. Argus forecasts global lithium-ion battery demand in EVs to reach 3.8GWh by 2034 from 0.7GWh in 2023. EV sales are expected to rise at an average growth rate of 10pc in the next 10 years reaching more than 46mn units.

Global caustic soda demand into battery materials for leading regions is shown in the figure. Argus’s latest caustic soda analytics forecast explains an exponential rise in caustic soda consumption for battery material processing. Global caustic soda consumption in the processing of lithium hydroxide, lithium carbonate, cathode materials and recycled black mass was at 1.5mn dmt in 2023 and is expected to reach 3mn dmt in 2033 at a CAGR of 10pc in the first five years.

Global Caustic Demand

The relationship between chlor-alkali products and battery materials is gaining focus in the market. With increasing Lithium-based battery capacity globally, demand for associated battery materials is expected to rise. Among the other components of the Li-ion battery stack, PVDF plays an important role as a binder and separator coating, optimizing energy storage efficiency and reducing battery weight in EVs. 

PVDF utilizes caustic soda and chlorine in its production at different stages. Primary feedstock includes vinylidene chloride or vinylidene fluoride, which are derivatives of caustic soda and chlorine.

Some significant developments in PVDF capacity are taking place in North America and Northeast Asia. Belgian chemical company Solvay entered into a joint venture with Mexico-based PVC producer Orbia to build the largest production facility of battery-grade suspension PVDF in North America with a capacity of 20,000 t/yr. Commercial production is expected to start in 2026 and the expected caustic soda and chlorine demand can be 8,000 t/yr and 12,000 t/yr respectively. 

Solvay has doubled its capacity in Changshu, China in the past five years and raised its capacity in France by 35pc reaching 35,000 t/yr making it the largest production site in Europe. Another major producer French chemical company Arkema increased production capacity by 50pc last year at its Changshu site in China.

Japan-based producer Kureha is undergoing expansion at its Iwaki site in Japan, having a production capacity of 6,500 t/yr. The expansion is in two phases, first is a new capacity of 8,000 t/yr and another 2,000 t/yr in the second phase by debottlenecking resulting in a total capacity of 20,000 t/yr by 2026.

This article was created using data and insight from Argus Caustic Soda Analytics and Argus Battery Materials.

 

 

Related news

News
31/01/25

US Mexico-Canada tariffs to disrupt polymers markets

US Mexico-Canada tariffs to disrupt polymers markets

Houston, 31 January (Argus) — Planned US tariffs on Canadian and Mexican imports will disrupt years of free flowing polyethylene (PE) and polypropylene (PP) trade between the three countries, market sources say, which could lead to higher prices and less spot market trading. US President Donald Trump repeated on Thursday plans to impose 25pc tariffs on all Canadian and Mexican imports as soon as 1 February. The US and Canadian petrochemical markets in particular operate like one market, with buyers purchasing resin from producers on both sides of the border. Canadian producers are embedded in US buyers' supply strategies, but if Canadian resin is suddenly 25pc more expensive, buyers may need to reconsider other alternatives within the US. Canadian producers may feel obliged to swallow the costs to keep market share, while others may back away from spot trading in the US market, where margins for generic prime, offgrade and widespec material are already lower. "It's about to get pretty crazy," said one US polymer distributor, active in both the US and Canada markets. Canadian producer footprint significant There is approximately 4.6mn t/yr of PE capacity in Canada operated by three major producers, Nova Chemicals, Dow and ExxonMobil, representing around 16.3pc of total US/Canada capacity. Dow is in the planning stage of a $6.5mn net zero CO2 emissions project planned in Alberta, Canada, that will include an additional 2mn t/yr of PE capacity. Heartland Polymers, the only PP producer in Canada, has 525,000 t/yr of PP capacity, representing approximately 4.9pc of total US/Canada PP capacity. Canadian producers are still figuring out how to respond, not wanting to lose market share to US competitors. In a 23 January statement to customers, Nova Chemicals attempted to reassure its US customers. "We understand the importance of remaining competitively priced to retain your business," the communication said. "As stated previously, Nova chemicals is the importer of record, and will be responsible for paying the tariff." Buyers have taken that statement to mean that Nova will not pass the cost of the tariff on to US customers, but other market participants said that is less clear. A Nova spokesman said only that "US customers will not need to manage the customs process associated with their order from Nova" but did not comment on whether the cost would be passed along to buyers. A spokesman from Heartland Polymers declined to comment, saying they do not comment on "political matters." Dow and ExxonMobil did not immediately respond to requests for comment. Sources said the tariffs could fundamentally shift the way the markets operate. "Tariffs will change the way they do business," said one buyer active in both the US and Canadian markets, speaking of Canadian PE and PP producers. One trader said it believes that even if Canadian producers remain competitive for contract business, they are unlikely to participate in the spot market in the US, which typically has lower margins. "If they don't have to sell it in the US, they won't do it," the trader said. Canadian customers could also feel the impact if Canada responds with its own tariffs, sources said. "Canadian customers might feel out of harms way, but if the US tariffs them, they will tariff the US," said one PP distributor. "I think both sides are going to be looking for a solution." Mexico flow largely one-way The situation in Mexico is slightly different, with most resin flowing one way — from the US into Mexico — where local production is not enough to meet Mexican demand. Sources there said the big impact will come when or if Mexico responds with retaliatory tariffs on US resin. "A tariff is going to be like a gunshot in the leg for the Mexican economy," said one Mexican polymer producer. The initial concern for most customers in the three countries is existing contracts with resin producers, but later there will be concerns about demand, with the potential for manufacturing to shift back to the US from Canada and Mexico. "Some people are thinking some production may come back to the US with tariffs, so you could see a slight demand boost," said one US-based PE distributor. For now, Canadian producers are believed to have shipped large quantities of resin over the border to the US in recent weeks, believing that if it is already across the border it is not subject to any new tariff. Sources said they are hopeful those volumes will buy them some time until the governments in both countries can come to an agreement. By Michelle Klump Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

US PVC producers weigh cutbacks on lower margins


30/01/25
News
30/01/25

US PVC producers weigh cutbacks on lower margins

Houston, 30 January (Argus) — US polyvinyl chloride (PVC) producers are weighing operation cutbacks in February after grappling with deteriorating sales margins underpinned by elevated feedstock costs and stagnant end-product values. PVC producer profitability eroded in January as prices for key feedstock ethylene leapt to four-month highs by mid-January, various sources said. Ethylene is a main component in ethylene dichloride (EDC) manufacturing, which is then cracked into vinyl chloride monomer (VCM) before being converted into PVC. Some domestic PVC production is fully integrated and feature ethylene crackers, but many producers still purchase spot or contract ethylene and remain exposed to price fluctuations in the spot market. Spot US ethylene prices to-date in January have averaged 18pc higher than in December and 66pc higher than in January 2024, according to Argus data. Meanwhile, PVC spot values in Houston appreciated at a much slower rate between December and January, climbing by 1pc. Elevated ethylene spot prices are expected to persist in the near-term, maintaining pressure on PVC margins, due to planned maintenance and recovery from unplanned shutdowns in mid-January stemming from sub-freezing temperatures that gripped the US Gulf coast. The expectation for ethylene values to persist at current levels is anticipated to result in PVC production cutbacks, according to several exporters. Some producers, though, remain incentivized to maintain operating rates after bringing online expanded capacity last year. Formosa and Shintech collectively brought more than 500,000 metric tonne (t)/year of new PVC capacity on line during the second half of 2024. The ramp up in added capacity coincided with increasing trade barriers into key offshore destinations, which is expected to keep more volumes within the US while consumer demand outlooks this year remain cautiously optimistic . US buyers are unsure if domestic demand will be strong enough in 2025 to absorb additional volume, placing a ceiling on upward price direction. Exporters are even less optimistic operating in a global market increasingly defined by anti-dumping duties and plentiful Chinese supply. Domestic contract negotiations have highlighted the contrast between higher operating costs and a well-supplied PVC market. Producers cited higher operating costs to argue against lower contract negotiations in January, especially after prices fell in October and November. Several producers announced increases for February volumes, with some rising as high as 5¢/lb. But buyers said current demand does not support increases and instead view price hikes as to recapture lost margin. While producers sought price stability for January monthly contracts, they are also competing to lock in volume commitments through 2025 with aggressive annual contract discussions. Producers are trying to establish a price floor domestically by limiting price erosion among already-low-priced customers, but the additional capacity has made steeper price concessions difficult to avoid in other instances. One evolving upstream market variable is a firmer US Gulf coast spot export caustic soda market, which could encourage producers to maintain current rates and delay any cuts. Integrated PVC producers also manufacture chlorine and caustic soda through chlor-alkali units. Caustic soda is a co-product of chlorine — the latter a key feedstock in EDC production — and price swings in chlorine or caustic soda values can influence production decisions for PVC manufacturers. Caustic soda export prices from the US Gulf coast this week rose by $10/dry metric tonne (dmt) from the prior week and remains 8pc higher than the same week last year, according to Argus data. Tightened spot supply availability is a tailwind for spot values in the near-term, but values remain 24pc lower than peak levels in September when caustic soda prices last offset tighter PVC margins. By Aaron May and Connor Hyde Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

US polystyrene recycling initiative launches


28/01/25
News
28/01/25

US polystyrene recycling initiative launches

Houston, 28 January (Argus) — The Plastics Industry Association is forming a group to expand US polystyrene recycling as states increasingly ban expanded polystyrene (EPS) foam because of low recycling rates. The group, called the Polystyrene Recycling Alliance, aims to improve consumer access to polystyrene recycling and to increase the number of applications for which recycled polystyrene can be used. The group plans to establish an investment fund to expand polystyrene recycling across the US. EPS food packaging, one of polystyrene's primary end uses, is difficult to collect, bulky and often contaminated with food, which has hampered recycling investment for the material. End uses for recycled polystyrene have also remained limited. As a result, polystyrene recycling has struggled to gain momentum in the US, which has led to state EPS bans . California this month banned EPS foam in food service under the state's extended producer responsibility law after the recycling rate failed to reach 25pc by 2025. AmSty and Agilyx's polystyrene recycling joint venture Regenyx, one of the few polystyrene-exclusive recycling companies, closed in March after five years of operation. The Oregon-based company lost $1.1mn in the first half of 2023 . By Zach Kluver Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Philippines’ JG Summit to shut petrochemical assets


28/01/25
News
28/01/25

Philippines’ JG Summit to shut petrochemical assets

Singapore, 28 January (Argus) — Philippine petrochemical producer JG Summit is expected to shut all its petrochemical assets indefinitely after its recent decision to halt operations at its petrochemical complex until the end of the first quarter of 2025. The producer formally informed its employees on potential layoffs in a townhall meeting on 24 January. Operations at Peak Fuel — the producer's wholesale LPG trading arm — will continue to cater for domestic fuel demand. The producer plans to shut its naphtha cracker and downstream polyethylene (PE) and polypropylene (PP) plants in mid-December 2024 to end-March 2025 because of profitability concerns, it announced in November . JG Summit operates a naphtha cracker, which can produce up to 480,000 t/yr of ethylene and 240,000 t/yr of propylene. It also operates a 70,000 t/yr butadiene extraction unit and an aromatics unit with output capacity of up to 90,000 t/yr of benzene, 50,000 t/yr of toluene and 30,000 t/yr of mixed xylenes. Its downstream polymer assets include a 300,000 t/yr PP plant, a 160,000 t/yr linear low-density polyethylene (LLDPE) plant, a 160,000 t/yr high-density polyethylene (HDPE) plant and its newest 250,000 t/yr PE plant, which only began operations around July/August 2024. Its 300,000 t/yr PP plant has been shut since late December 2024-early January 2025. Its 570,000 t/yr PE capacities will be shut by the end of this month. The producer will continue to supply polymer resins to its domestic customers until its inventory is depleted. Philippines consumed around 170,000 t/yr of LLDPE, 240,000 t/yr of HDPE and around 440,000 t/yr of PP in 2024, according to Argus' estimates. The nation will be fully reliant on PE and PP imports after the indefinite closure of JG Summit's petrochemical complex. Challenges for SE Asian producers Southeast Asian polymer producers have been facing strong competition from imported resins and struggled with weak profitability since 2022. PE and PP capacity additions in China since 2020 have led to oversupply of resins and strong global competition, weakening polymer production margins. Chinese producers have been exporting PP to the global markets since 2021. The southeast Asian market is one of its main export outlets. China also achieved a PP self-sufficiency rate of around 95pc in 2024, up from 93pc in 2023, according to Argus estimates. A lack of feedstock cost advantage when compared with producers in the Middle East and US led to weak margins for southeast Asian producers as they compete to retain regional market shares. The indefinite shutdown by JG Summit — the sole PE producer in the Philippines — is expected to further tighten the availability of duty-free PE and PP supplies in the domestic market and the wider southeast Asian market in 2025. Philippine refiner Petron has kept its 160,000 t/yr PP plant off line throughout 2024 and the plant will remain shut for an unspecified period, likely because of weak margins. Vietnam's Long Son shut its new petrochemical complex in Ba Ria-Vung Tau in mid-October 2024 because of similar profitability concerns. The producer is expected to halt operations at its polymer plants until at least the end of first-half 2025 and anticipates slow margin recovery. But the restart of these plants will depend largely on market conditions, according to market sources. Malaysian petrochemical producer Lotte Chemical Titan has also shut its No. 1 290,000 t/yr naphtha cracker and likely reduced production of selected PE and PP grades from mid-December 2024 to mitigate production losses. The restart timeline is unclear. By Yee Ying Ang Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

India starts anti-dumping probe on e-PVC from EU, Japan


28/01/25
News
28/01/25

India starts anti-dumping probe on e-PVC from EU, Japan

Singapore, 28 January (Argus) — India's Ministry of Commerce and Industry (MCI) has started an anti-dumping investigation on imports of polyvinyl chloride paste resin, commonly referred to as emulsion PVC (e-PVC) resin, originating from the EU and Japan. The Gazette of India published a notice on this investigation on 24 January. India's MCI will investigate e-PVC imports into India from the EU and Japan between 1 April 2023 and 30 September 2024. The investigation will exclude PVC blending resin, PVC co-polymer paste resins, battery separator resins and PVC grades with a K-value below 60. This follows the ongoing implementation of provisional anti-dumping duties (ADDs) on e-PVC imports originating from China, South Korea, Malaysia, Norway, Taiwan and Thailand. The initial anti-dumping investigation on e-PVC imports from China, South Korea, Malaysia, Norway, Taiwan and Thailand is currently pending approval from the Finance Ministry, following recently suggested changes in preliminary ADDs. By Michael Vitiello Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.