Global Plasticizer Update

Global Plasticizer Update
SPI Flexible Vinyl Products Conference
July 2012
Dr Steve Cullen
Business Director, Plasticizers
Eastman Chemical Company
Agenda
 Recent Global and Regional market trends for
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plasticizers
Phthalates in the news
Update on regulatory situation in EU
Update on regulatory situation in US
London 2012 - Flexible PVC in the news
A personal view of phthalates and flexible PVC
Conclusions – Key Take-aways
 The flexible vinyl industry is alive and well!
 Critics of PVC continue to attack flexible vinyl
 Plasticizers (in particular phthalate plasticizers), continue
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to be the focus of this attention
Regulatory bodies continue to scrutinize the use of
phthalate plasticizers
Demand for non-phthalate plasticizers is increasing
significantly
Flexible vinyl products offer tremendous social benefits
We need to continue to defend and advocate for our
industry
Regional Demand for Plasticizers - 2011
World Plasticizer Consumption 2011 ~ 6.4MT / 14 B lbs
~95% of plasticizers used in flexible PVC
Overall trend: steady global growth driven by emerging economies
ROW
11%
North America
0.8MT / 1.5Blbs
Europe (EU)
1.0MT / 2.0Blbs
ROW
0.8MT / 1.5Blbs
Latin America
0.3MT / 0.7Blbs
Asia
52%
Latin
America
6%
North
America
13%
West &
Eastern
Europe
18%
Asia Pacific
3.5MT / 7.0Blbs
Phthalates
87%
NonPhthalates
13%
Sources: Plasticizer and PVC consultant reports, Eastman estimates
Plasticizer Market Trends 2009 - 2011
North America
Good demand recovery from
2008/9 recession
Mid term plasticizer historical demand
trend is down: B&C spending decline, but
recovery appears to be starting
Supply consolidation has continued
Phthalate scare stories are still ‘news’
Regulatory scrutiny of phthalates ongoing
Accelerating “Technology Shift” from
phthalates to alternatives in general
purpose and specialty segments
Sources: Plasticizer and PVC consultant reports, Eastman estimates
Plasticizer Market Trends 2009 - 2011
Europe
Good demand recovery from
2008/9 recession in 2010 and H1 2011.
Sovereign debt crises having impact
Mid term plasticizer historic demand trend
in WE is ~ flat
High rates of plasticizer demand growth in certain
segments in CEE
Further supply consolidation has occurred
Phthalate scare stories still ‘news’
Regulatory scrutiny of phthalates is ongoing under
REACH
Accelerating “Technology Shift” from phthalates to
alternatives. Modest investments in alternatives
supply announced
Sources: Plasticizer and PVC consultant reports, Eastman estimates
Plasticizer Market Trends 2009 - 2011
Asia Pacific
2008/9 recession slowed growth, but quickly resumed
Mid term plasticizer historical demand trend
is strong growth, but typically < GDP
Increasing domestic consumption, tempered by slower
growth in exports from China
Japan: historical slow decline in plasticizer consumption
China moving towards self-sufficiency in plasticizer
manufacture, but highly fragmented
Substantial regional investments announced in oxoalcohol capacity – particularly in China
DEHP remains the largest product, but DINP now
growing faster. Significant and rapid growth in demand
for non-phthalates for exported articles
First national regulations and phthalate press stories
are beginning to appear
Sources: Plasticizer and PVC consultant reports, Eastman estimates
Phthalates are still ‘news’….
….PVC is still the real issue
2009 - Link to Children’s Health
Scientific Studies Raise Concerns
Low burden of proof,
Spread to adjacent applications
The scientists were
surprised by their
finding, calling it
"far from
conclusive."
Because their
research was not
designed to focus
on autism, they
recommend further
study of larger
numbers of children
to see whether the
link can be
confirmed.
(March 2009)
Bernard Weiss, a professor of environmental medicine at University of
Rochester and a co-author of the study, said the connection between vinyl
flooring and autism “turned up virtually by accident.” He called it “intriguing
and baffling at the same time.”
http://www.environmentalhealthnews.org/ehs/news/autism-and-vinyl-flooring
2012 - Link to Children’s Health
Scientific Studies Raise Concerns
Phthalates: PVC is the real issue
• Environmental NGO’s have been
targeting PVC since 1980’s
Pyramid of Plastics
• Initial push was on chlorine
content, then dioxins and lack of
recyclability. Focus then switched
to additives, in particular to
phthalate plasticizers
• Linking child safety to phthalates
and the precautionary principle
led first to voluntary, then
temporary bans and later to
regulation in toys in Europe, then
US, Brazil, Canada, Korea,
Japan etc.
Continued, effective advocacy for flexible PVC
is a critical industry issue
The Flexible Vinyl Alliance
The Flexible Vinyl Alliance (FVA) was launched in the fall
of 2009 as an independent, dedicated, proactive,
integrated and informal advocacy network to rapidly
respond at both the state and local levels to de-selection
threats which affect the continued business interests of
the flexible vinyl industry.
The FVA, through its future broad base of participants,
intends to provide information, messaging and guidance
for its members, in order for them to effectively advocate
for the proven safety, economy and utility of flexible vinyl
products, which are used in a wide range of practical,
therapeutic, military and life-saving applications, among
many others.
http://www.flexiblevinylalliance.com/
FVA currently consists of a core group of trade
associations and interested industry concerns, to include
raw materials suppliers, compounders, manufacturers,
processors and other constituencies. The FVA is led by
its own autonomous Steering Committee, established in
October of 2009, reflecting the complete flexible vinyl
value chain.
Regulatory Update
US and EU Plasticizer Regulatory Timeline
EPA Chemical Action Plan
REACH
DEHP, DBP, BBP, DIBP, DIDP,
DINP, DnPP, DnOP
EPA DfE
TSCA Chemicals of Concern list
Add to the Toxics Release Inventory (TRI)
EPA EDSP 1
REACH
(Endocrine Disruptor
Screening Program)
DEHP, DEP, DBP
DMP, BBP
DEHP, DBP, BBP,
DIBP+
SVHC Authorization
Applications open
`10
DEHP, DBP, BBP,
DIBP, DIDP, DINP,
DnPP, DnOP
DEHP, DBP, BBP, DIBP+
Non-authorized SVHC
“Sunset”
Priority List
Reviews
2013
Diallyl Phthalate
DTDA
REACH
California
Prop 65
Design for the
Environment
Alternatives
Assessment
2012
2012
2011
DEHP, DBP, BBP, DIBP+
SVHC Authorization
Applications Deadline
REACH CoRAP
Reviews
2014
2015
2014
EPA Chemical Action Plan
OSHA HCP
DEHP, DBP, BBP, DIBP, DIDP,
DINP, DnPP, DnOP
Ruling on whether to ban:
“late 2012”
Introduction of GHS
“Reprotox”
classifications
FDA
Phthalates
Review
“in all applications
under jurisdiction”
REACH CoRAP
Reviews
EPA EDSP 2
DOA, DOP
REACH
CoRAP
Reviews
DEP
Benzyl C7C8C9 Phthalate
9-11 Phthalate
DUP
DTDP
TOTM
Health Canada
Phthalates in Toys
DOA “Challenge”
CPSC
DINP, DIDP, DnOP
Interim ban decision
based on CHAP
OSHA HCP
Deadline for GHS
Classification & Labeling
Europe Regulatory Update
REACH Update
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REACH: Registration, Evaluation, Authorization of CHemicals
in the EU
Effective 1st June 2007
•
•
•
Pre-registration deadline was end Nov 2008
1000+ mtpa band Registration deadline was end Nov 2010
100-1000 mtpa Registration deadline is end May 2013
REACH Currently has identified 84 Chemicals as Substances
of Very High Concern (SVHC’s) and so are Candidates for
Authorization under Annex XIV of REACH
7 of these chemicals are phthalates. One additional phthalate
is to have a dossier presented, nominating it as an SVHC
Authorization application deadline for DBP, BBP & DEHP is
July 2013. “Sunset” date for non-authorized applications is
January 2015.
EU’s stated target is to identify 136 SVHC’s by end 2012
REACH – View of Phthalate Plasticizers
Phthalate Esters: Alkyl Group Carbon Chain Length
C1
DMP
C2
DEP
C3
DMeOEP
C4
DBP
DiBP
BBP
C5
DPP
C6
DHP
C7
DiHP
C8
DEHP
C9
DINP
C10
DIDP
DPHP
C11
DUP
C13
DTDP
REACH – View of Phthalate Plasticizers
Phthalate Esters: Alkyl Group Carbon Chain Length
C1
DMP
C2
DEP
C3
C4
DMeOEP
DBP
DiBP
BBP
SVHC
SVHC’s
C5
C6
C7
C8
DPP
DHP
DiHP
DEHP
SVHC
CLP
CMR
SVHC
SVHC
Candidate
C9
DINP
C10
C11
DIDP
DPHP
Di C7-11 Phthalate (DHNUP)
SVHC
DUP
C13
DTDP
REACH Community Rolling Action
Plans (CoRAP)
 CoRAP is a list of chemicals that have been proposed by
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EU Member States for Evaluation as to whether
classification as an SVHC is justified or no action is
needed
First list published in October 2011
List of 90 Chemical Substances, including 9 plasticizers
(of which 6 are phthalates)
Evaluations will be performed over period 2012-2014
Chemicals proposed where there is “Suspicion that use
poses a risk to human health or the environment”
Specific focus areas: CMR, PBT or Endocrine Disruptors
REACH Community Rolling Action
Plans (CoRAP Reviews)
Evaluation
Year
Product
Reviewing
Country
Justification
2012
TOTM
Austria
Suspected PBT
2013
DiAllyl Phthalate
Spain
Suspected CMR
2013
DTDA (Di Tridecyl Adipate)
Spain
Suspected PBT
2014
Benzyl C7-9-branched and linear
alkyl Phthalate
Denmark
Suspected CMR
2014
Di-C9-11-branched and linear alkyl
Phthalate
Denmark
Suspected CMR
2014
DUP (branched and linear )
Denmark
Suspected CMR
2014
Di-C11-14 (C13-rich)
branched alkyl Phthalate
Denmark
Suspected CMR
2014
DEP
Germany /
Portugal
Suspected Endocrine
Disruptor
2014
DIDZ (Di Isodecyl Azelate)
Italy
Suspected PBT
REACH – View of Phthalate Plasticizers
Phthalate Esters: Alkyl Group Carbon Chain Length
C1
DMP
C2
DEP
C3
C4
DMeOEP
DBP
DiBP
BBP
SVHC
SVHC’s
C5
C6
C7
C8
DPP
DHP
DiHP
DEHP
SVHC
CLP
CMR
SVHC
SVHC
Candidate
C9
DINP
C10
C11
DIDP
DPHP
Di C7-11 Phthalate (DHNUP)
SVHC
DUP
C13
DTDP
REACH – View of Phthalate Plasticizers
Phthalate Esters: Alkyl Group Carbon Chain Length
C1
DMP
C2
C3
C4
DEP
DMeOEP
DBP
DiBP
BBP
CoRAP
Review
SVHC
SVHC’s
C5
C7
C8
DPP
DHP
DiHP
DEHP
SVHC
CLP
CMR
SVHC
SVHC
Candidate
DiAllyl
C6
C9
C10
DINP
DIDP
DPHP
C11
DUP
DTDP
CoRAP
Review
CoRAP
Review
Di 7-11 Phthalate (DHNUP)
Phthalate
CoRAP
Review
C13
SVHC
Benzyl C7-9 Phthalate
CoRAP Review
Di 9-11 Phthalate
CoRAP Review
Denmark Proposed further restrictions to REACH
 In May 2011 Denmark
 On June 15th 2012,
 Notified EU of intention and
 ECHA’s Committee for
proposed a national ban on
the use of DEHP, BBP,
DBP and DiBP in consumer
articles for indoor use or
which came into contact
with mucous membranes
proposed that this become
an EU wide restriction
ECHA’s Committee for
Risk Assessment (RAC)
concluded that the
additional restriction was
not justified
Socioeconomic Analysis
(SEAC) plans to take no
action
ECHA Review of DINP and DIDP
 DINP and DIDP subject to
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restriction in mouthable toys in
EU, since 2007
ECHA has reviewed risks from
DINP and DIDP – at request of
European Commission
Considered REACH dossiers
and recent literature
May 2012 Draft report
concludes that “existing
restriction is justified” but “no
further risk reduction measures
are needed”
Comments period open until
end July, including for
submission of additional
scientific data
http://echa.europa.eu/en/addressing-chemicals-ofconcern/restriction/consultations-draft-review-report//substance/1403/search/+/term
European Producers of DEHP will pursue
Authorization
 ECPI / CEFIC consortium of 3
European DEHP producers is
preparing risk assessment
dossier for Authorization
 Specific applications for which
Authorization is being
requested not yet publicized
- likely to include medical
 Each Authorization likely to be
for a finite period and may have
conditions attached.
 Sunset date for non-Authorized
applications is Jan 15th 2015
REACH not fast enough for some…
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“Substitute It Now
“NGO driven project”
Sin List 2.0 – May 2011.
List of 378 chemicals
proposed for SVHC
status
14 plasticizers
10 are already SVHC or
Candidates
4 additional products:
DEP, DHP, DCHP, DINP
http://www.chemsec.org/list
US Regulatory Update
EPA Endocrine Disruptor
Screening Program
 5 Phthalates (DMP, DEP, DBP, BBP, DEHP) identified in
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EDSP 1 list, due to FIFRA registered uses as pesticide
inerts
Test orders sent out September 2009
US producers elected to ‘opt-out’ of testing as they did
not and/or would not sell into these applications
 DOA identified in EDSP 2 list as an HPV chemical
 New test orders to be issued for DEHP, using the Safe
Drinking Water Act. Further action will not be taken until
responses to List 2 orders are received.
EPA Phthalates
Chemical Action Plan
 Published December 20th 2009
 Identified 8 specific phthalates (DBP, DiBP, BBP, DnPP, DEHP,
DnOP, DINP, DIDP)
Chemical Action Plan stated intention to:
1. Use TSCA 5(b)(4) to designate the products as “Chemicals of
Concern” in late 2010 and perform cumulative risk assessments
2. Initiate rulemaking to add remaining 6 phthalates (to DEHP and
DBP) on the TRI in late 2010
3. Consider initiating rulemaking in 2012 under TSCA 6(a) in
cooperation with CPSC and FDA, including “….a ban of all or
several of these chemicals”
4. Consider rulemaking under TSCA 5(a)(2) on DnPP in late 2010 or
early 2011
5. Conduct a DfE and Green Chemistry alternatives assessment by
2012 to “…encourage industry to move away….in a non-regulatory
setting”
EPA Phthalates Chemical
Action Plan - Update
Chemical Action Plan stated intention to:
1.
2.
3.
4.
Use TSCA 5(b)(4) to designate the products as “Chemicals of Concern” in late 2010 and
perform cumulative risk assessments
Blocked at OMB.
August 2011 Discussion Forum on “prioritization factors…to identify priority
chemicals for review and assessment” .
“identification…as priority chemical…would not constitute a finding ....(of) risk”
Initiate rulemaking to add remaining 6 phthalates to DEHP and DBP on the TRI in late 2010
Blocked at OMB
Consider initiating rulemaking in 2012 under TSCA 6(a) in cooperation with CPSC and FDA,
including “….a ban of all or several of these chemicals”
No Action to date
Consider rulemaking under TSCA 5(a)(2) on DnPP in late 2010 or early 2011
SNUR proposed for DnPP in March 2012
5.
Conduct a DfE and Green Chemistry alternatives assessment by 2012 to “…encourage
industry to move away….in a non-regulatory setting”
DfE Project commenced August 2011
CPSIA Chronic Hazard
Advisory Panel (CHAP)
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Mandated by Congress under the 2008 Consumer Product Safety
Improvement Act
CPSIA imposed a permanent restriction on the use (above 0.1%) of
DEHP, DBP and BBP and a temporary ban on the use of DnOP, DINP
and DIDP in children’s toys.
CHAP to be formed from NAS identified scientists and tasked to review
the temporary restrictions on use in children’s toys of the 3 phthalates
CHAP also tasked to risk assess alternatives to the 3 permanently
restricted and 3 temporarily restricted phthalates. CPSC interpreted this
to include all potential useful plasticizers.
CHAP was to provide final, peer reviewed report by end April 2012.
CPSC to consider what action to take by end October 2012
Process is delayed: report now expected to be published in “Fall 2012”
Flexible PVC in the news
London 2012 Olympics and PVC
 Early discussions that London 2012 would be
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designated “PVC Free”
After industry intervention, a 2009 policy on
PVC use was established
142,500 m2 (1.5 M sq ft) of flexible PVC has
been installed. 68% of this is plasticized by
non-phthalate plasticizers.
Some material will be reused for the 2014
World Cup in Brazil
“For some products, alternatives to PVC are
not available for the performance
requirements…”
“The whole life cycle of the products needs to
be considered. Some PVC based components
are more suitable for installation than nonpvc.”
Conclusions – Key Take Aways
 The flexible vinyl industry is alive and well!
 Critics of PVC continue to attack flexible vinyl
 Plasticizers (in particular phthalate plasticizers), continue




to be the focus of this attention
Regulatory bodies continue to scrutinize the use of
phthalate plasticizers
Demand for non-phthalate plasticizers is increasing
significantly
Flexible vinyl products offer tremendous social benefits
We need to continue to defend and advocate for our
industry
Thank You!