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This report includes fluoropolymers that may be divided into two main categories: (1) PTFE and (2) melt-processible resins and other resins. PTFE is the dominant fluoropolymer, accounting for 60% (by weight) of world fluoropolymer consumption in 2008. Other fluoropolymers include PVDF, FEP, E-CTFE, PVF, ETFE, PFA, CTFE-VDF, PCTFE, THV and amorphous types. China is the dominant consumer of PTFE, while the United States is the dominant consumer of other fluoropolymers as of 2008.
China is the world’s largest producer of PTFE, with a 30% share of world production in 2007; it was also the largest consumer with 28% of world consumption in 2007. Between 2004 and 2008, through the debottlenecking of existing facilities and the addition of new plants, China added more PTFE production capacity than any other country. Concurrent with the rapid PTFE capacity expansion, capacity utilization was low at about 54% in 2007 and about 37% of China’s PTFE production was exported in the same year. China’s production capacity and production of other fluoropolymers became significant in 2007, and production capacity for other fluoropolymers is growing.
The following pie chart shows world consumption of fluoropolymers by type:
Key supply, demand and growth trends include the following:
- Growing capacity and exports of PTFE from China.
- Higher consumption growth in the Far East, especially China, India and other regions outside of the United States, Western Europe and Japan.
- Movement of fluoropolymer production from the United States, Europe and Japan to vertically integrated production sites in China, eliminating the need to transport fluoropolymer raw materials such as Chinese fluorspar, hazardous hydrofluoric acid and fluorocarbon and monomer feedstocks.
Among the key trends in competition and industry structure are the following:
- High costs associated with worker compensation and environmental and safety compliance at production sites in the United States, Western Europe and Japan.
- Lower costs associated with worker compensation and environmental and safety compliance at production sites in China; however, China’s costs are rising.
- Medium to high barriers to entry for achieving regulatory approvals to produce fluoropolymers since key raw materials such as hydrofluoric acid and monomers (i.e., TFE) pose transportation and handling hazards.
- Globalization of the major fluoropolymer producers, enabling greater raw material purchasing power and the production of finished and semifinished fluoropolymer products in lower-cost nations and potentially better service for global customers.
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