SRI CEH Formaldehyde

January 2004 Formaldehyde
658.5000 A Page 1
CEH Marketing Research Report
FORMALDEHYDE
By
Sebastian N. Bizzari
CEH Marketing Research Reports provide comprehensive analysis, historical data and
forecasts pertaining to the international competitive market environment for chemical
products. Detailed supply and demand data are developed for the United States,
Western Europe and Japan with the cooperation of chemical producers and consumers
worldwide.
Updated information may be available from the following CEH Program services:
● CEH Online—The full text retrieval and update database.
● CEH CD-ROM—The entire contents of the CEH on one CD-ROM and including CEH
Online updates. Issued quarterly.
● Manual of Current Indicators (MCI)—Updates of statistical data derived from
published sources. Issued semiannually.
● The Economic Environment of the Chemical Industry (EECI)—Economic
indicators that impact the chemical industry. Issued semiannually.
● CEH Inquiry Service—SRI Consulting researchers are available to answer your
questions.
U.S.A.—Telephone: 650/859-3900 Fax: 650/859-2182
Zürich—Telephone: 411/283-6333 Fax: 411/283-6330
Tokyo—Telephone: 813/5202-7320 Fax: 813/5202-7333
 2004 by the Chemical Economics Handbook—SRI International

January 2004 FORMALDEHYDE Formaldehyde
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TABLE OF CONTENTS
Summary.................................................................................................................................................. 4
Introduction.............................................................................................................................................. 7
Environmental Issues............................................................................................................................... 8
Manufacturing Processes ......................................................................................................................... 9

Silver Catalyst Processes ..................................................................................................................... 9
Metal Oxide Processes......................................................................................................................... 9
Supply and Demand by Region ............................................................................................................... 10

United States........................................................................................................................................ 13
Producing Companies...................................................................................................................... 13
Salient Statistics............................................................................................................................... 17
Production........................................................................................................................................ 17
Consumption.................................................................................................................................... 19
Urea-Formaldehyde Resins ......................................................................................................... 21
Wood adhesives ....................................................................................................................... 21
Glass fiber roofing mats .......................................................................................................... 22
Other ........................................................................................................................................ 22
Phenol-Formaldehyde Resins ...................................................................................................... 22
Wood adhesives ....................................................................................................................... 23
Insulation ................................................................................................................................. 23
Laminates................................................................................................................................. 23
Foundry materials .................................................................................................................... 24
Molding compounds ................................................................................................................ 24
Other ........................................................................................................................................ 24
Polyacetal Resins......................................................................................................................... 24
1,4-Butanediol ............................................................................................................................. 25
Methylenebis(4-phenyl isocyanate)............................................................................................. 25
Pentaerythritol.............................................................................................................................. 26
Controlled-Release Fertilizers ..................................................................................................... 27
Melamine-Formaldehyde Resins ................................................................................................. 28
Hexamethylenetetramine ............................................................................................................. 29
Producing companies............................................................................................................... 29
Salient statistics ....................................................................................................................... 29
Consumption............................................................................................................................ 30
Other ............................................................................................................................................ 30
Paraformaldehyde .................................................................................................................... 32
Chelating agents ...................................................................................................................... 32
Herbicides ................................................................................................................................ 33
Trimethylolpropane ................................................................................................................. 33
Pyridine chemicals................................................................................................................... 34
Neopentyl glycol...................................................................................................................... 35
Nitroparaffin derivatives.......................................................................................................... 36
Textile chemicals..................................................................................................................... 36
Trimethylolethane.................................................................................................................... 37
Miscellaneous .......................................................................................................................... 38

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TABLE OF CONTENTS (continued)

Price ................................................................................................................................................. 38
Trade ................................................................................................................................................ 39
Canada ................................................................................................................................................. 43
Consumption.................................................................................................................................... 45
Mexico ................................................................................................................................................. 45
Consumption.................................................................................................................................... 47
South and Central America.................................................................................................................. 48
Consumption.................................................................................................................................... 51
Western Europe ................................................................................................................................... 52
Consumption.................................................................................................................................... 58
Urea-, Phenol- and Melamine-Formaldehyde Resins.................................................................. 59
1,4-Butanediol ............................................................................................................................. 60
Trimethylolpropane ..................................................................................................................... 62
Hexamethylenetetramine ............................................................................................................. 62
Other ............................................................................................................................................ 63
Price ................................................................................................................................................. 64
Trade ................................................................................................................................................ 65
Japan .................................................................................................................................................... 65
Consumption.................................................................................................................................... 68
Urea-, Phenol- and Melamine-Formaldehyde Resins.................................................................. 69
Paraformaldehyde ........................................................................................................................ 70
Other ............................................................................................................................................ 71
1,4-Butanediol ......................................................................................................................... 71
Trimethylolpropane and neopentyl glycol............................................................................... 71
Hexamethylenetetramine ......................................................................................................... 72
Miscellaneous .......................................................................................................................... 72
Price ................................................................................................................................................. 72
Trade ................................................................................................................................................ 73
Other Regions ...................................................................................................................................... 74
Consumption.................................................................................................................................... 76
Bibliography ............................................................................................................................................ 77

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SUMMARY
The following table presents world supply/demand for 37% formaldehyde in 2003:
World Supply/Demand for 37% Formaldehyde—2003

(thousands of metric tons)
Annual Operating
Capacity Rate
(year-end) Production (percent) Imports Exports Consumption
North America
United States 5,395 4,325 80 16 10 4,312
Canada 1,092 775 71 8 50 696
Mexico 222 160 72 neg 1 155
South and Central America 1,421 1,058 74 8 3 1,041
Western Europe 8,669 7,340 85 252 242 7,217
Central and Eastern Europe 3,286 1,627 50 5 7 1,625
Japan 1,606 1,370 85 neg 1 1,354
Other Asia
China 5,878 3,680 63 0 0 3,680
India 482 263 55 0 0 263
Indonesia 1,203 937 78 0 0 937
Korea, Republic of 715 647 90 0 0 647
Malaysia 626 418 67 0 3 415
Singapore 90 80 89 0 15 65
Taiwan 530 297 56 0 20 277
Thailand 270 202 75 0 1 201
Othera 68 64 94 18 0 82
Middle East 835 666 80 60 60 666
Africa 198 160 81 3 0 163
Oceania 442 229 52 0 0 229
Total 33,028 24,298 74% 370 413 24,025
a. Includes Pakistan, the Philippines, Cambodia, Bangladesh, Laos, Sri Lanka, Myanmar, Vietnam and the
Democratic People’s Republic of Korea.
SOURCE: CEH estimates.
World consumption of 37% formaldehyde was approximately 24 million metric tons in 2003. Global
capacity utilization fell to 74% in 2003 from 78% in 2000 because of weaker demand and increased
capacity. Between 2000 and 2003, world capacity for 37% formaldehyde grew at an average annual rate
of 5.9% while world consumption grew at an average annual rate of 4.4% during the same period.

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The following table presents world consumption of 37% formaldehyde by end use:
World Consumption of 37% Formaldehyde by End Use

2003 2008 Average Annual
Growth Rate,
Thousands of Percent of Thousands of Percent of 2003-2008
Metric Tons Total Metric Tons Total (percent)
UF Resins 10,971 45.7 12,818 45.6 3.2

PF Resins 2,834 11.8 3,283 11.7 3.0
Polyacetal Resins 1,834 7.6 2,202 7.8 3.7
MF Resins 1,542 6.4 1,938 6.9 4.7
Pentaerythritol 1,118 4.7 1,274 4.5 2.6
MDI 1,035 4.3 1,343 4.8 5.3
BDO 967 4.0 1,016 3.6 1.0
HMTA 557 2.3 594 2.1 1.3
Othera 3,167 13.2 3,645 13.0 2.9
Total 24,025 100% 28,113 100% 3.2%
a. Includes paraformaldehyde, chelating agents, trimethylolpropane, controlled-release fertilizers, neopentyl

glycol, pyridine and pyridine bases and other.
Formaldehyde is the most commercially important aldehyde. It is used primarily to make urea-, phenol-
and melamine-formaldehyde resins (UF, PF and MF resins); other large applications include polyacetal
resins, pentaerythritol, methylenebis(4-phenyl isocyanate) (MDI), 1,4-butanediol (BDO) and
hexamethylenetetramine (HMTA). Most formaldehyde producers are primarily concerned with satisfying
captive requirements for derivatives and/or supplying local merchant sales. Formaldehyde is usually
produced close to the point of consumption since it is fairly easy to make, is costly to transport and can
develop problems associated with stability during transport. As a result, world trade in formaldehyde is
minimal and accounted for less than 2% of production in 2003.
Demand for most downstream markets for formaldehyde is greatly influenced by general economic
conditions. As a result, demand for formaldehyde largely follows the patterns of the leading world
economies. Consumption of formaldehyde depends heavily on construction/remodeling activity,
automotive and furniture production and original equipment manufacture (OEM). Formaldehyde resins,
which accounted for nearly 64% of world formaldehyde consumption in 2003, are predominantly used in
the wood products industry as adhesives. Growth is strongly correlated to the construction industry and to
a lesser extent, the automotive industry.
After experiencing strong demand in 2000, demand for formaldehyde declined or remained stable in most
regions in 2001-2003. In the United States, consumption of formaldehyde declined by nearly 2% between
2000 and 2003 as a result of the economic slowdown. Although weak economic conditions were
experienced in many world regions, demand for formaldehyde was buoyed in some markets by relatively
strong residential construction and remodeling activity and furniture production. High feedstock methanol
cost, lower margins, depressed demand and capacity additions forced many formaldehyde producers to
curtail production during 2001-2003. Some producers shut down plants; further consolidations and
shutdowns are expected in the near future.

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The following table presents world consumption of 37% formaldehyde by region:
World Consumption of 37% Formaldehyde by Region

Growth Rate,
Thousands of Percent of Thousands of Percent of 2003-2008
Metric Tons Total Metric Tons Total (percent)
North America
United States 4,312 18.0 4,663 16.6 1.6
Canada 696 2.9 826 2.9 3.5
Mexico 155 0.6 186 0.7 3.7
South and Central America 1,041 4.3 1,370 4.9 5.6
Western Europe 7,217 30.0 8,194 29.1 2.6
Central and Eastern Europe 1,625 6.8 1,961 7.0 3.8
Japan 1,354 5.6 1,388 4.9 0.5
Other Asia 6,567 27.3 8,200 29.2 4.5
Middle East 666 2.8 860 3.0 5.2
Africa 163 0.7 190 0.7 3.1
Oceania 229 1.0 275 1.0 3.7
Total 24,025 100% 28,113 100% 3.2%
Europe, the United States and Southeast Asia (excluding Japan) are the largest markets for formaldehyde.
Growth in demand for formaldehyde varies by region. Although world demand for formaldehyde is
expected to grow at an average annual rate of 3.2% during 2003-2008, demand in the United States is
expected to grow at 1.6% during the same period, mainly because of declining production of
particleboard, which consumes UF resins. Demand in Southeast Asia and South and Central America is
expected to experience much higher growth rates, because of increasing production, for both domestic use
and exports, of particleboard and laminates. Consumption of formaldehyde in Japan is expected to grow
slightly because of weak construction activity and increasing competition from low-cost imported wood-
based products and laminates. Increasing exports of wood board and finished wood products, such as
ready-to-assemble furniture, particularly from Southeast Asia and South and Central America, is expected
to continue. Excluding wood adhesives, MDI and polyacetal resins are the fastest growing derivatives.
UF, PF and MF resins account for most growth in other regions.
Although overall economic performance will continue to be the best indicator of future demand for
formaldehyde, other issues that may affect the market during the next five years are as follows:
● Stricter environmental regulations affecting wood logging
● Availability of raw wood resources
● Increased substitution of formaldehyde-based wood adhesives in some applications, mainly in the

United States
● Increased environmental concern over formaldehyde emissions

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INTRODUCTION
Formaldehyde (CH2O) is the simplest and the most commercially important aldehyde. It is a colorless gas
at room temperature and is soluble in water, alcohols and other polar solvents. Formaldehyde is produced,
consumed and traded in different concentrations. However, for the purposes of this report, all data are
presented on a 37% basis, unless otherwise specified.
Many of the chemicals, products and derivatives discussed in this report are typically referred to by an
abbreviation, rather than a chemical name. The most frequently used abbreviations include the following:
Common Abbreviations
BDO 1,4-Butanediol
CRF Controlled-release fertilizer
DMPA Dimethylolpropionic acid
EDTA Ethylenediaminetetraacetic acid
GBL gamma-Butyrolactone
HMTA Hexamethylenetetramine
MDF Medium-density fiberboard
MDI Methylenebis(4-phenyl isocyanate)
MF Resins Melamine-formaldehyde resins
MUF Resins Melamine-urea-formaldehyde resins
NMP N-Methyl-2-pyrrolidone
NTA Nitrilotriacetic acid
OSB Oriented strandboard
PBT Resins Polybutylene terephthalate resins
PF Resins Phenol-formaldehyde resins
PRF Resins Phenol-resorcinal-formaldehyde resins
PTMEG Polytetramethylene ether glycol
RF Resins Resorcinol-formaldehyde resins
THF Tetrahydrofuran
TME Trimethylolethane
TMP Trimethylolpropane
UFC Urea-formaldehyde concentrates
UF Resins Urea-formaldehyde resins

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ENVIRONMENTAL ISSUES
Formaldehyde is classified as a chemical irritant. At concentrations above one ppm, formaldehyde vapor
causes irritation on contact with the eyes, nose, throat and lungs. Contact with liquid formaldehyde causes
eye burns, may cause allergic skin reaction and is likely to irritate skin. Moreover, formaldehyde has
mutagenic activity in bacterial or mammalian cell culture test systems, but is generally negative in whole
animal systems.
Concerns over possible human carcinogenicity from exposure to formaldehyde have been a controversial
issue in the United States. Many studies assessing the human risk of low-level exposure to formaldehyde
have been conducted. No study has provided conclusive evidence of human carcinogenicity and
interpretation of study findings has been varied. The lack of conclusive evidence has led to widespread
disagreement among industry, government agencies and unions regarding the appropriate risk assessment
of formaldehyde.
In 1987, the U.S. Environmental Protection Agency classified formaldehyde as a probable human
carcinogen (Group B-1) on the basis of sufficient evidence of animal carcinogenicity and limited evidence
of human carcinogenicity.
In 1987, the Occupational Safety and Health Administration (OSHA) adopted a comprehensive
formaldehyde workplace standard of one ppm permissible exposure limit (PEL) based on an eight-hour
time-weighted average (TWA). A fifteen-minute short-term exposure limit (STEL) of 2 ppm and an
“action level” of 0.5 ppm were also adopted. A number of ancillary requirements, including exposure
monitoring, medical surveillance, hazard communication, training and respiratory protection, were
likewise established. In 1992, the PEL was reduced to 0.75 ppm as an eight-hour TWA. Medical removal
protection (MRP) provisions were added for employees alleging certain adverse effects of formaldehyde
exposure. In those cases, MRP is triggered only after careful delineation of symptoms and consideration
of job transfer alternatives prior to employee removal. The 1992 amended standard also changed the
formaldehyde labeling requirements. Labels containing a warning that formaldehyde presents a potential
cancer hazard are only necessary for products where formaldehyde levels may potentially exceed 0.5
ppm.
Additionally, in response to a 1985 federal regulation by the U.S. Department of Housing and Urban
Development, both wood adhesive and pressed wood products manufacturers modified production
techniques to reduce formaldehyde off-gassing. Formaldehyde levels in homes have dropped significantly
and, at current levels, below 0.1 ppm, health concerns are negligible.
Since 1985, the American Conference of Governmental Industrial Hygienists (ACGIH) has recommended
a one ppm TWA and 2 ppm STEL. These recommendations have no force of law; however, ACGIH
recommendations are followed by some companies. In June 1992, the ACGIH adopted a threshold limit
value (TLV) for formaldehyde of 0.3 ppm as a ceiling. Recently, an independent study by the Chemical
Industry Institute of Toxicology (CIIT) suggested that formaldehyde is not likely to be carcinogenic under
low exposure to humans, but is probably carcinogenic only following persistently high inhalation
exposures. The study also found evidence of considerably lower risk levels for formaldehyde than in
previous cancer risk assessments.
In Western Europe, exposure levels in the workplace vary from country to country, with the TLV set
around 2 ppm in many countries. The United Kingdom sets a limit of 2 ppm, while Germany, Switzerland
and some Scandinavian countries operate within a limit of 0.5-1 ppm.

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MANUFACTURING PROCESSES
Formaldehyde is produced from methanol using either a silver or a metal oxide (iron-molybdate) catalyst.
Each process is practiced in a number of variations, most of which are available from licensers.
SILVER CATALYST PROCESSES
The silver catalyst process is a combination oxidation-dehydrogenation and is represented as follows:
CH3OH HCHO + H
methanol formaldehyde
mol wt: 32 30
The reaction is exothermic. The reaction gas is quenched with water and by-product steam is recovered.
Metallic silver is used as a gauze or as crystals. The most modern silver catalyst processes use a thin bed
of silver crystals. Conversions are sufficiently high and the amount of unreacted methanol is negligible.
Vented gas can be recovered and used as boiler fuel or recycled. Formaldehyde yields from the silver
catalyst process are lower than from the metal oxide process, but this disadvantage is offset by a lower
initial capital investment. The reactors can be very large, allowing producers to achieve economies of
scale. Yields range from 80% to 92% of theoretical, with a typical yield of 87-88% of methanol for most
well-maintained silver processes, requiring 6.8 gallons of methanol to produce one hundred pounds of
37% formaldehyde solution (0.45 metric ton of methanol per metric ton of 37% solution). Slightly lower
(82-83%) methanol yield is achieved with more poorly maintained silver processes.
Licensers of silver catalyst processes include Derivados Forestales, Dynea, ICI, Josef Meissner,
Mitsubishi Gas, ORKEM and Polimex-Cekop.
METAL OXIDE PROCESSES
The metal oxide process involves the catalytic oxidation of methanol by a mixed oxide catalyst containing
iron and molybdenum. Other metals, such as chromium, are often used as catalyst promoters. The
reaction is represented as follows:
CH3 OH + 1/2 O2 HCHO + H O

2
methanol formaldehyde
mol wt: 32 30
The ferric-molybdate catalyst, in the form of spheres, granules or cylinders, is placed in multiple fixed-
bed reactors; the shape of the catalyst affects energy costs. Vaporized methanwol and filtered air are fed
to the reactors. The tubes of the reactors are surrounded by a boiling heat-transfer fluid, usually diphenyl
and diphenyl oxide, to which the heat of reaction is transferred and recovered as steam. Formaldehyde is
absorbed in water and waste gas is recycled or burned in an incinerator or both. Many metal oxide
facilities produce urea-formaldehyde condensates by using urea in place of water at the quenching stage.

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The two leading metal oxide processes are Perstorp Formox® and D.B. Western. The Formox® process
was developed by Reichhold Chemicals, Inc. and subsequently sold to Perstorp AB. The Formox®
process produces close to 90% yields, requiring 0.43 metric ton of methanol per metric ton of 37%
formaldehyde. The D.B. Western process has been in use since 1981 and is employed in over twenty-one
plants worldwide. Conversion of methanol is above 99%, with selectivity to formaldehyde of 91-92%.
The D.B. Western process requires 0.42 metric ton of methanol per metric ton of 37% formaldehyde.
Other licensers of metal oxide processes include Haldor Topsoe, Josef Meissner and Nippon Kasei.
SUPPLY AND DEMAND BY REGION
Global end-use markets for formaldehyde are similar in all regions. The following table presents
applications for the major derivatives of formaldehyde; variations in regional applications are discussed
under each region:
Applications of Formaldehyde
Derivative Main Products Main Markets Remarks
UF Resins Wood adhesives for parti- Construction (residential and Competes with MDI and soy-based resins
cleboard, medium-density nonresidential), remodeling and in particleboard and MDF. Consumption
fiberboard (MDF) and furniture. is dependent on construction, remodeling
hardwood plywood and activity and furniture production.
glass fiber roofing mats
PF Resins Wood adhesives for Construction (residential and Competes with MDI in OSB. Consump-
oriented strandboard nonresidential), remodeling and tion is dependent on construction, remod-
(OSB), hardboard and furniture. eling activity and furniture production.
softwood plywood
Decorative laminates for Construction (residential and Competes with MF resins, mineral-filled
cabinets, furniture, pan- nonresidential), remodeling and acrylic sheet and low-pressure polyester
eling and kitchen and furniture. laminates.
bathroom countertops;
industrial laminates for
gears, bearings, valves
and printed circuits
Foundry materials Automotive (transmission and Competes with silicate and other inor-
crankcase cores) and aerospace. ganic no-bake systems.
Structural and acoustic Construction (residential and PF resins act as adhesives to bind the
insulation (glass fiber, nonresidential) and automotive. insulation materials. Waste fibers are used
mineral wool, waste fiber) in roof and side sheeting in cars.
Molding compounds Automotive (engine and Competes with polybutylene and polyeth-
transmission assemblies and ylene terephthalate in appliances and
brake components), appliances housewares and with polyester bulk
(iron handles), housewares molding compounds in electrical applica-
(cookware handles, toaster end tions.
panels) and electrical (outlet
boxes, sockets).

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Applications of Formaldehyde (continued)

Polyacetal Industrial machinery Machinery (gears, cams, bearings, Competes primarily with nylon and poly-
Resins components pulleys, levers, sprockets and ester resins. Polyacetal resins provide
bushings), conveyor belts, better hydrolysis resistance than nylon
precision metering valves and resins.
chemical mixing screws.
Automotive components Cars, trucks, vans and buses. Consumption is dependent on automobile
(fuel systems, window production. Competes primarily with
transport, windshield nylon and polyester resins.
wipers, door handles,
window cranks, seat belt
hardware, electrical
components, speaker
grilles and exterior trims)
Plumbing and irrigation Ballcocks, shower heads, valve Consumption is dependent on construction
components and parts mechanisms for blending hot/cold and remodeling activity. Competes
water and on/off operations in primarily with brass.
faucets.
Consumer goods Small appliances (mixers and Consumption is dependent on discretion-

components and parts blenders), sporting goods (snow ary income and personal spending.
and water ski bindings,
surfboards, sailboats, backpack
fasteners), cigarette lighters and
housewares (knife handles,
utensils and temperature control
timer gears).
Appliance, tool, electrical Power craft and gardening tools, Consumption is dependent on discretion-
and electronic clothes washers and dryers, fans, ary income and personal spending.
components (gears, hubs, kitchen appliances, telephones,
bearings, reel parts, computer printers and video-
housings, springs, internal cassettes.
ratchets, keyboard push
buttons and switches)
MF Resins Curing agent for polyester Automotive (solvent and water- Competes primarily with aliphatic isocy-
resins used in surface borne coatings), coil coating, anate curing agents. Solvent and water-
coatings metal furniture and appliances. borne coatings compete with powder
coatings in automotive applications, metal
furniture and appliances.
Laminates for cabinets, Construction and remodeling. Competes with PF resins, ceramic tile and
furniture, paneling, mineral-filled acrylic sheet in countertops.
kitchen and bathroom
countertops and flooring.
Molding compounds Dinnerware, circuit breakers, MF molding compounds possess excellent

small appliance housings and electrical and thermal properties,
cosmetic cases. especially resistance to boiling water.
Competes with acrylonitrile-butadiene-
styrene resins.

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Penta- Alkyd coating resins Exterior and interior architectural Pentaerythritol competes primarily with
erythritol coatings, OEM product finishes, glycerin for inclusion into alkyd resins,
special-purpose coatings. used mainly in solventborne architectural
coatings. Consumption is dependent on
construction and remodeling activity
(residential and nonresidential) and com-
petition from acrylic latexes and other
waterborne coatings, because of environ-
mental regulations.
Rosin and tall oil esters Adhesives, varnishes, flooring Function as low-cost extenders and modi-
materials, caulking compounds, fiers. Compete with hydrocarbon resins.
inks and surface coatings.
Pentaerythritol tetranitrate Detonators, explosives and

(PETN) detonating cord.
MDI Polyurethane foam (rigid Construction, appliances and Construction applications include lami-
and flexible) packaging (rigid polyurethane nate and board foams for walls and roof-
foam) and transportation, ing. Automotive applications and furniture
furniture and bedding (flexible account for over 60% of flexible foam
polyurethane foam). demand. Consumption is dependent on
construction and remodeling activity
(residential and nonresidential) and auto-
mobile production.
Binders (wood binders Construction, residential and Wood binders are used in OSB produc-
and fillers, foundry core nonresidential. tion. Competes primarily with UF and PF
binders and rubber resins. Consumption is dependent on con-
binders) struction.
Polyurethane elastomers Automotive (wheels, bumpers, Consumption is dependent on construction

(cast, microcellular and body and door panels, spoilers, and automobile production.
thermoplastic elastomers) interior trim), construction (cable
jacketing, flexible tubing and
hose) and machinery (gaskets and
seals, mechanical parts, hydraulic
seals).
BDO Tetrahydrofuran and de- Apparel and hosiery (spandex Consumption is dependent on construction
rivatives including fibers), automotive (components, (residential and nonresidential),
polytetramethylene ether hoses, gaskets, tubings, wheels) automobile production and discretionary
glycol (PTMEG) and construction (PVC cements income and personal spending.
and coatings).
Polybutylene terephtha- Automotive (electrical/ Competes with polycyclohexylene di-

late (PBT) resins and electronic connectors, ignition methylene terephthalate (PCT), nylon 46,
alloys systems, insulators and relays; polyphenylene sulfide resins and liquid
bumpers and reinforcing beams), crystal polymers in electrical/electronic
electrical/electronic (connectors, markets. Alloyed with polycarbonate
sockets, switch blocks, fuse hold- resins for use in automotive applications
ers) and construction (plumbing such as bumpers, mirror housings and
pipes, fittings and pump impellers brackets, wheel covers and gearshift
and housings). knobs. Consumption is dependent on
construction and automobile production.

658.5000 M Page 13

BDO γ-Butyrolactone and Lube oils, electronics, paint Most applications of NMP are as a sol-
(continued) derivatives, including N- strippers, magnetic wire coatings, vent.
methyl-2-pyrrolidone cosmetics and hairsprays.
(NMP)
UNITED STATES
PRODUCING COMPANIES
The following table presents U.S. producers of formaldehyde:
U.S. Producers of Formaldehydea

Annual Capacity
as of
December 1, 2003
(thousands of
Company and Plant Location metric tons) Catalystb Remarks
Borden Chemical, Inc.

Baytown, TX 125 PMO Some captive consumption for UF, PF, RF,
Demopolis, AL 36 PS PRF and MF resins, HMTA, UFC and
Diboll, TX 59 PS methanol-formaldehyde concentrate (Meth-A-
Fayetteville, NC 202 MO Form®).
Fremont, CA 79 PS
Geismar, LA 306 PMO
Gonzales, LA 395 MO/S
Hope, AR 91 PMO
La Grande, OR 32 PS
Louisville, KY 175 PMO/S
Missoula, MT 79 PS
Sheboygan, WI 77 PS
South Glens Falls, NY 122 DBWMO
Springfield, OR 136 PS
Capital Resin Corporation

Columbus, OH 45 DBWMO Mostly merchant. Some captive consumption
for UF, PF and MF resins and UFC.
Celanese Ltd.
Chemicals Division
Bishop, TX 730 PS Captive methanol. Mostly captive consump-
tion for pentaerythritol, TMP, paraformalde-
hyde and Formcel® . Some merchant sales to
Ticona for polyacetal resins at Bishop.
D.B. Western, Inc.

La Porte, TX 544 DBWMO Mostly merchant. Some captive consumption
for UFC and UF resins.

658.5000 N Page 14
U.S. Producers of Formaldehydea (continued)

Annual Capacity
as of
December 1, 2003
(thousands of
Company and Plant Location metric tons) Catalystb Remarks
DuPont
DuPont Chemical Solutions Enterprise
Parkersburg, WV 181 FMO All captive consumption for polyacetal resins
and glycolic acid.
Dynea USA, Inc.

Andalusia, AL 32 FMO Mostly captive consumption for UF, PF,
Moncure, NC 54 FMO MUF, RF and MF resins. Owned 100% by
Springfield, OR 109 DBWMO/S Industri Kapital, Sweden.
Toledo, OH 54 DBWMO
Winnfield, LA 163 FMO
Georgia-Pacific Resins, Inc.

Albany, OR 84 FMO Mostly captive consumption for UF, PF and
Columbus, OH 114 FMO MF resins and UFC.
Conway, NC 75 FMO
Crossett, AR 83 FMO/S
Denton, NC 77 S
Grayling, MI 74 PMO
Louisville, MS 75 PMO
Lufkin, TX 68 FMO
Russellville, SC 130 FMO
Taylorsville, MS 138 PMO
Vienna, GA 67 S
White City, OR (101) FMO
GEO Specialty Chemicals, Inc.

TRIMET Products Group
Allentown, PA 61 FMO Some captive consumption for TME and
DMPA.
Hercules Incorporated
Functional Products Segment
Aqualon Division
Louisiana, MO 77 S Captive consumption for pentaerythritol, UF
wet-strength paper resins and ureaforms.
Perstorp Polyols, Inc.

Toledo, OH 227 FMO/S Mostly captive consumption for pentaerythri-
tol and TMP. Owned 100% by Industri Kapi-
tal, Sweden.
Praxair, Inc.
Geismar, LA 64 DBWMO Captive methanol. Mostly merchant.
Solutia Inc.
Alvin, TX 82 PS Some captive consumption for NTA.
Wright Chemical Corporation

Riegelwood, NC 73 MO Some captive consumption for HMTA.
Total 5,395

658.5000 O Page 15
a. Capacities are reported on a 37% basis. Formaldehyde is sold in a variety of forms (44%, 50%, 52% and 56% by weight) and
as paraformaldehyde, a solid.
b. MO = metal oxide; FMO = Formox® metal oxide; PMO = proprietary metal oxide; DBWMO = D.B. Western metal oxide;
S = silver catalyst; PS = proprietary silver catalyst.
Several important changes in the formaldehyde industry since mid-2000 include the following:
● D.B. Western commissioned a new formaldehyde plant with an annual capacity of 544 thousand
metric tons at La Porte, Texas in July 2001. D.B. Western closed its New Mexico Adhesives
formaldehyde plant in Las Vegas, New Mexico in 2001; annual capacity was 23 thousand metric
tons.
● In 2000, Borden Chemical, Inc. acquired Borden Chemicals and Plastics Operating Limited
Partnership’s Geismar, Louisiana formaldehyde plant.
● DuPont closed its formaldehyde plant in La Porte, Texas in 2001; annual capacity was 227
thousand metric tons. DuPont now obtains formaldehyde for its BDO operations at La Porte from
D.B. Western.
● International Specialty Products closed its formaldehyde plant in Texas City, Texas in 2000;
annual capacity was 45 thousand metric tons.
● Borden Chemical closed formaldehyde plants in Malvern, Arkansas in late 2000 and Kent,
Washington; Vicksburg, Mississippi; and Waverly, Virginia in late 2001/early 2002; annual
capacities were 50 thousand metric tons, 43 thousand metric tons, 32 thousand metric tons and 50
thousand metric tons, respectively.
● Georgia-Pacific Resins closed formaldehyde plants in Hampton, South Carolina in February 2001
and Houston, Texas in early 2002; annual capacities were 26 thousand metric tons and 55
thousand metric tons, respectively.
● Celanese closed its formaldehyde plant in Rock Hill, South Carolina in 2002; annual capacity was
64 thousand metric tons.
● Degussa closed its formaldehyde plant in Theodore, Alabama in mid-2002; annual capacity was
98 thousand metric tons.
● Georgia-Pacific Resins idled its formaldehyde plant in White City, Oregon in November 2003.
In the United States, formaldehyde plants are generally located where it is consumed, to reduce
transportation costs. In general, formaldehyde produced in the West is consumed almost entirely in wood
adhesives, while formaldehyde produced in the Gulf region is targeted toward chemical derivatives and to
a lesser degree wood adhesives. Production in the South/Southeast is used primarily in wood adhesives
and to a lesser degree in chemical derivatives. Approximately 60-70% of formaldehyde production is
consumed captively.

658.5000 P Page 16
Historically, U.S. formaldehyde capacity was distributed throughout the country. However, since
chemical derivative applications for formaldehyde are growing faster than wood product applications, the
Gulf Coast region has come to account for 52% of all U.S. capacity, up from 47% in 2000.
The following table presents U.S. formaldehyde capacity by region:
U.S. Formaldehyde Capacity by Region as of December 1, 2003

Number of Number of Percent of U.S.
Producers Plants Capacity
Gulf Coast 7 14 52
South/Southeast 4 10 19
Midwest 6 7 12
West 3 6 10
Northeast/Mid-Atlantic 3 3 7
Total 23a 40 100%
a. Many producers have several plants in one region or have plants in two or
more regions.
The following table presents U.S. formaldehyde capacity by producer:
U.S. Formaldehyde Capacity by Producer as of December 1, 2003

Annual Capacitya
Number of (thousands of Percent of U.S.
Plants metric tons) Capacity
Borden Chemical 14 1,914 35.5

Georgia-Pacific Resins 11 985 18.3
Celanese 1 730 13.5
D.B. Western 1 544 10.1
Dynea USA 5 412 7.6
Perstorp Polyols 1 227 4.2
Other 7 583 10.8
Total 40 5,395 100%
a. Capacities are reported on a 37% basis.
Borden Chemical has plants in every region. Georgia-Pacific Resins and Dynea have plants in every
region except the Northeast/Mid-Atlantic. These three companies account for 75% of formaldehyde
plants in the United States and 61.4% of total U.S. capacity; other large producers include Celanese and
D.B. Western. Borden Chemical’s plants are primarily in the Gulf Coast, West and South/Southeast
regions; its capacity is primarily in the Gulf Coast and South/Southeast. Georgia-Pacific Resins’ plants
and capacity are primarily in the South/Southeast and Gulf Coast. Dynea’s plants are nearly equally
distributed among the four regions, but most of its capacity is in the Gulf Coast and West. The following
table presents the regional locations of U.S. formaldehyde plants owned by Borden Chemical, Georgia-
Pacific Resins and Dynea:

658.5000 Q Page 17
U.S. Formaldehyde Plants Owned by Borden Chemical, Georgia-Pacific Resins and Dynea—2003
Borden Chemical Georgia-Pacific Resins Dynea
Number Percent Number Percent Number Percent

of Plants of Capacity of Plants of Capacity of Plants of Capacity
Gulf Coast 5 48 3 29 2 47
South/Southeast 3 25 5 44 1 13
Midwest 1 4 2 19 1 13
West 4 17 1a 8 1 27
Northeast/Mid-Atlantic 1 6 0 0 0 0
Total 14 100% 11 100% 5 100%
a. Excludes the formaldehyde plant in White City, Oregon, which was idled in November 2003.
SALIENT STATISTICS
The following table presents U.S. supply/demand for 37% formaldehyde in 2003:
U.S. Supply/Demand for 37% Formaldehyde—2003

Annual Capacity (year-end) 5,395

Production 4,325
Operating Rate (percent) 80.2%
Imports 16
Exports 10
Consumption 4,312
PRODUCTION
The following table presents U.S. production of 37% formaldehyde:

658.5000 R Page 18
U.S. Production of 37% Formaldehyde

Production Sales
1960 904 --
1965 1,405 --
1970 2,009 --
1975 2,068 725
1980 2,520 814
1985 2,663 790
1990 3,402 1,217

1991 3,357 980
1992 3,493 1,109
1993 3,602 1,190
1994 3,856 1,348
1995 3,946 na
1996 4,037 na
1997 4,194 na
1998 4,377 na
1999 4,550 na
2000 4,650 na
2001 4,550 na
2002 4,400 na
2003 4,325 na
SOURCES: (A) CEH estimates (data for PRODUCTION).
(B) Synthetic Organic Chemicals, U.S. Production and Sales,

U.S. International Trade Commission (data for SALES).
Most U.S. formaldehyde producers are primarily concerned with local supply and demand and with
having enough capacity to satisfy their captive needs. Because of the cost of transportation, almost all
U.S.-produced formaldehyde is consumed domestically. Formaldehyde solutions are unlikely prospects
for international markets or even transcontinental markets, except that paraformaldehyde, a solid product
with approximately 93-96% formaldehyde content, supplies both domestic and international markets. In
trade with Canada, transactions are over relatively short distances (approximately 200-300 miles). In
addition to shipping costs, there are also problems associated with stability during transport.
Formaldehyde (even the inhibited product) will polymerize after even as little as a week of storage.
Frequent heating and circulating of formaldehyde solution is necessary in order to prevent
polymerization. However, methanol and formic acid tend to develop as a function of time and heat,
posing a significant drawback to frequent heating and circulation. The accumulation of formic acid causes
deterioration of storage containers. As a result, producers prefer not to ship formaldehyde over long
distances or to build large inventories, although some major producers will keep some product in
inventory in case of production disruptions and spot sales opportunities.

658.5000 S Page 19
CONSUMPTION
The following table presents U.S. consumption of 37% formaldehyde:
U.S. Consumption of 37% Formaldehyde

Growth Rate,
Thousands of Percent of Thousands of 2003-2008
Metric Tons Total Metric Tons (percent)
UF Resins 990 23.0 970 –0.4

PF Resins 725 16.8 820 2.5
Polyacetal Resins 540 12.5 600 2.1
BDO 430 10.0 421 –0.4
MDI 395 9.2 465 3.3
Pentaerythritol 213 4.9 242 2.6
CRF 140 3.2 157 2.3
MF Resins 136 3.1 158 3.0
HMTA 120 2.8 115 –0.8
Paraformaldehyde 115 2.7 127 2.0
Chelating Agents 113 2.6 127 2.4
Herbicides 95 2.2 95 0
TMP 94 2.2 121 5.2
Other 206 4.8 245 3.5
Total 4,312 100% 4,663 1.6%
The following table presents historical U.S. consumption of 37% formaldehyde:
Historical U.S. Consumption of 37% Formaldehyde

UF PF Polyacetal Penta- MF
Resinsa Resinsb Resinsc BDO d MDIe erythritolf CRFg Resinsh HMTAi Otherj Total
1960 176 221 12 10 -- 96 28 64 44 250 901
1965 302 317 60 59 -- 103 41 84 83 360 1,409
1970 544 454 114 145 -- 127 55 84 129 352 2,004
1975 515 429 93 172 -- 151 73 79 103 396 2,011
1980 689 612 177 222 110 174 104 84 153 305 2,630
1985 712 571 215 298 127 141 120 94 135 361 2,774
1990 847 623 371 394 175 183 136 105 117 473 3,424
1991 816 582 367 408 178 172 136 102 101 467 3,329
1992 848 612 396 443 187 177 136 118 120 451 3,488
1993 866 639 465 435 211 190 141 125 128 500 3,700
1994 907 672 474 481 232 198 143 130 131 528 3,896

658.5000 T Page 20
Historical U.S. Consumption of 37% Formaldehyde (continued)

UF PF Polyacetal Penta- MF
Resinsa Resinsb Resinsc BDO d MDIe erythritolf CRFg Resinsh HMTAi Otherj Total
1995 948 670 510 501 255 210 143 125 130 538 4,030
1996 955 686 524 508 258 213 145 130 128 545 4,092
1997 980 704 542 520 284 217 148 135 125 562 4,217
1998 1,025 714 561 540 289 217 151 135 122 582 4,336
1999 1,050 720 572 500 324 217 153 138 120 599 4,393
2000 1,080 740 605 500 375 221 156 143 118 620 4,558
2001 1,040 730 545 500 391 218 150 132 120 617 4,443
a. 37% Formaldehyde consumption per metric ton of UF resin produced (dry basis) is as follows:
1960 1.45 metric tons

1965 1.40 metric tons
1970-1975 1.30 metric tons
1980-2003 1.10-1.25 metric tons
b. 37% Formaldehyde consumption per metric ton of PF resin produced (dry basis) is as follows:
1960-1975 0.89 metric ton

1980-1985 0.95 metric ton
1990-2003 0.95 metric ton
c. Assumes that 3 metric tons of 37% formaldehyde are consumed for each metric ton of polyacetal resins produced.
d. Assumes that 2 metric tons of 37% formaldehyde are consumed for each metric ton of BDO produced.
e. Prior to 1980, data were included in OTHER. Assumes that 0.41 metric ton of 37% formaldehyde is consumed for each
metric ton of MDI produced.
f. Assumes that 3.3 metric tons of 37% formaldehyde are consumed for each metric ton of pentaerythritol produced.
g. Data include only formaldehyde consumed for UFC used in controlled-release fertilizers. Data do not include UFC used
for the production of UF resins or for the coating of urea prills and pellets.
h. 37% Formaldehyde consumption per metric ton of MF resin produced (dry basis) is as follows:
1960-1975 1.08 metric tons

1980-2003 1.20 metric tons
i. Assumes that 3.7 metric tons of 37% formaldehyde are consumed for each metric ton of HMTA produced.
j. Data after 1984 are not compatible with the previous data. Before 1984, data include formaldehyde consumed in MDI
production. After 1984, formaldehyde consumed in MDI production is reported separately.
Construction and remodeling activities account for 60-70% of total U.S. formaldehyde consumption. In
addition to thermoset resins, the construction market also includes neopolyols (pentaerythritol, neopentyl
glycol and trimethylolpropane), which are used mainly in alkyd and polyester resins for surface coatings.
Although weak economic conditions were experienced in many markets, demand for formaldehyde was
buoyed by relatively strong residential construction and remodeling activity during 2001-2003.

658.5000 U Page 21
Urea-Formaldehyde Resins
The following table presents U.S. consumption of urea-formaldehyde (UF) resins:
U.S. Consumption of Urea-Formaldehyde Resins—2003

(percent)
Wood Adhesives
Particleboard 47
Medium-Density Fiberboard 28
Hardwood Plywood 5
Glass Fiber Roofing Mats 12
Other 8
Total 100%
Compared to phenol-formaldehyde (PF) resins, UF resins are less expensive, light in color, faster curing
and provide superior hardness and arc resistance. However, UF resins are less durable, are not water
resistant, tend to break down in hot and cold water and have less resistance to a variety of chemicals. As a
result, interior applications account for most consumption of UF resins.
In 2003, approximately twenty companies produced UF resins in the United States; the largest producers
are Borden, Georgia-Pacific and Dynea. All three companies have captive formaldehyde. UF resin plants
are generally located near composition board production plants in order to minimize shipping costs. The
UF resins are generally supplied in liquid (syrup) form.
Wood adhesives
The largest use for UF resins is in binders or adhesives for dry-process wood products such as fibrous and
granulated wood composites, mainly particleboard and medium-density fiberboard (MDF). UF resins
account for over 95% of wood adhesives used in particleboard production because of its low price and
fast cure time. Dry-process products also include hardboard and waferboard; however, because these
materials are used primarily for exterior applications, PF rather than UF resins are used.
Most particleboard is used to make cabinets, case goods, doors, countertops, furniture and fixtures; some
is used for flooring underlayment and decking in new home construction. MDF is used primarily as a
corestock for furniture and case goods, where it competes with particleboard, solid lumber and veneer
cores. MDF provides better binding strength and stiffness, a smoother surface and tight edges that do not
require edge banding, as does particleboard. MDF is more resistant to moisture than particleboard and has
less tendency to swell and shrink. Hardwood plywood is used primarily for furniture, decorative interior
applications and do-it-yourself projects. The largest end use for hardwood plywood is in the stock
hardwood panels market, followed by the architectural panels market. The stock hardwood market
primarily targets do-it-yourself remodeling projects, while architectural panels are used primarily in
furniture and kitchen cabinets.
Demand for particleboard, MDF and hardwood plywood is dependent on construction/remodeling activity
and production of case goods and furniture. Consumption of UF resins in particleboard is expected to
decline because of a combination of decreased particleboard production and increased imports of

658.5000 V Page 22
particleboard, particularly from Asia and South America. Several U.S. particleboard mills have closed
recently because of competition from lower-cost imports; further closures are expected as a result of their
higher cost structure.
MDF is the fastest growing composition board; consumption of UF resins in MDF is forecast to grow as
it continues to replace solid wood and particleboard, particularly in areas where smooth surfaces and tight
edges are desired characteristics. However, total demand for UF resins in wood adhesives is forecast to
decline by 0.4% annually during 2003-2008; continued growth in MDF will not offset declines in UF
resin demand for particleboard.
Glass fiber roofing mats
Glass fiber mats are the preferred roofing material for roof shingles, asphalt roofing tiles and built-up
(roll) roofing. UF resins are used as binders that hold the glass fibers together until an asphalt coating is
applied. UF resins are low-cost and have good dry tensile strength, fire resistance, low foaming and good
thermal resistance. Newer markets for glass fiber mats include flooring to replace asbestos, lightweight
automotive components and medium- and high-density overlays in waferboard and oriented strandboard
production. Demand for UF resins in glass fiber mats is heavily dependent on housing starts and
remodeling activity; annual growth is expected at 2-3% annually during 2003-2008.
Other
Other applications for UF resins include laminates, molding compounds (electrical switches and circuit
breakers), cross-linking agents for surface coatings, textile treating and paper treating and coating. Low-
pressure laminates are the largest-volume market for UF resins in other applications.
For additional information, see the CEH Amino Resins marketing research report.
Phenol-Formaldehyde Resins
The following table presents U.S. consumption of phenol-formaldehyde (PF) resins:
U.S. Consumption of Phenol-Formaldehyde Resins—2003

(percent)
Wood Adhesives
Oriented Strandboard (OSB) 26
Plywood 24
Other (hardboard, molded wood, particleboard) 6
Insulation 14
Laminates 8
Foundry Materials 6
Molding Compounds 5
Other 11
Total 100%

658.5000 W Page 23
PF resins have several advantages over UF resins. They are stronger and more rigid, are waterproof and
have greater resistance to chemicals. In 2003, approximately 25 companies produced PF resins in the
United States; the largest producers are Borden, Georgia-Pacific, Dynea and Durez. With the exception of
Durez, all of these producers have captive formaldehyde.
Wood adhesives
Oriented strandboard (OSB) has been gaining market share at the expense of plywood, primarily because
of its low cost, performance characteristics and the limited availability of plywood because of logging
restrictions. Finished OSB is able to compete directly with softwood plywood in structural panel
applications. OSB is used in paneling, roofing and flooring. Between 1991 and 2001, OSB demand grew
at an average annual rate of 8-10%. This growth is expected to decline to 4-6% per year during 2003-
2008. In OSB, PF resins compete with p,p′-methylene diphenyl diisocyanate (MDI), mainly on price.
Plywood is used primarily in industrial markets, such as packaging, transportation and furniture;
residential construction now accounts for plywood’s third-largest market because of competition from
OSB. U.S. consumption of plywood has decreased since 1988 because of substitution by OSB and
reduced production as a result of logging restrictions, particularly in the Pacific Northwest. Demand for
PF resins in plywood is expected to decline by 1-2% annually during 2003-2008.
Other fibrous and granulated wood products that consume PF resins include hardboard, molded wood and
particleboard. Demand for PF resins for hardboard has declined because of competition from OSB.
Molded wood is used in tabletops and furniture/door/window assemblies.
Insulation
PF resins are used to bind glass fiber, mineral wool (rock wool) or shredded waste products such as
cotton, wool or polyester for structural and acoustical insulation; glass fiber accounts for approximately
90% of consumption. Glass fiber applications include home and commercial insulation and for industrial,
equipment and pipe insulation. Waste fiber is used primarily in acoustical applications, including carpet
padding while mineral wool is used mainly to insulate home and industrial boilers, steam pipes and
reactor vessel jackets. Demand for PF resins in insulation is heavily dependent on construction and
remodeling activity; annual growth is expected at 1.5-2% annually during 2003-2008.
Laminates
PF resin–based laminates are used in decorative and industrial applications. Decorative applications
account for over 90% of demand and include wall paneling, cabinet faces, furniture, tables and
countertops. In decorative applications, PF resin–based laminates compete with melamine-formaldehyde
laminates and low-pressure laminates of polyester. Industrial applications include gears, bearings, rings,
valves, printed circuit boards, panels and terminal blocks; competition comes primarily from epoxy or
silicone products. Demand for PF resins in laminates is dependent on construction and remodeling
activity; annual growth is expected at 1.5-2% annually during 2003-2008.

658.5000 X Page 24
Foundry materials
Foundries are used for casting metal products. PF resins are used as adhesives to bond sand for cores used
in a mold to produce a hollow casting. HA-International is the largest player in the U.S. phenolic foundry
market; other participants include Georgia-Pacific, Ashland Chemical and Capital Resin. Demand for PF
resins in foundry materials is dependent on the success of the automotive and aerospace industries; annual
growth is expected at 1-2% annually during 2003-2008.
Molding compounds
Phenolic molding compounds are composites that combine fillers, additives and PF resins. They are used
for heat-resistant components in under-the-hood automotive applications, appliances and housewares and
wiring devices in the electrical industry. Automotive and houseware/appliance applications account for
40% and 33%, respectively, of PF molding compounds demand. Durez is the largest U.S. producer of
phenolic molding compounds.
Other
Other applications for PF resins include friction materials (clutch facings, disk brake pads, automatic
transmission components and brake linings), protective coatings (food container lining coatings), rubber
processing additives (in tires, shoe soles and other molded rubber goods) and abrasives for metal
finishing.
For additional information, see the CEH Phenolic Resins marketing research report.
Polyacetal Resins
Polyacetal resins are thermoplastic engineering resins produced by the anionic polymerization of
formaldehyde or its trimer, 1,3,5-trioxane. Two U.S. companies produce polyacetal resins; DuPont and
Ticona. DuPont has captive formaldehyde while Ticona obtains its formaldehyde from affiliate Celanese.
The following table presents U.S. consumption of polyacetal resins:
U.S. Consumption of Polyacetal Resins—2003

(percent)
Automotive Applications 24
Industrial Applications 23
Consumer Goods 18
Plumbing/Irrigation 16
Electrical/Electronic Applications 7
Appliances/Tools 6
Other 6
Total 100%

658.5000 Y Page 25
Polyacetal resins are used in a variety of applications that once would have used fabricated metal parts.
They can be injection-molded or in some cases can be extruded to make gears, cams, bearings, levers and
a variety of other mechanical parts. Polyacetal resins combine physical characteristics such as flexibility,
abrasion resistance, stiffness, self-lubrication and resistance to long-term exposure to heat, hot water,
steam and motor oil.
For additional information, see the CEH Polyacetal Resins product review.
1,4-Butanediol
In the United States, only two of four 1,4-butanediol (BDO) producers use formaldehyde; BASF and
DuPont produce BDO from formaldehyde while BP and Lyondell Chemical use n-butane and propylene
oxide, respectively. In 2002, approximately 68% of U.S. BDO capacity was based on formaldehyde.
The following table presents U.S. consumption of 1,4-butanediol:
U.S. Consumption of 1,4-Butanediol—2003

(percent)
Tetrahydrofuran 48
Polybutylene Terephthalate Resins 23
γ-Butyrolactone 21
Other 8
Total 100%
Tetrahydrofuran (THF) is used primarily to produce polytetramethylene ether glycol (PTMEG); solvent
applications account for the remainder. PTMEG is used in the manufacture of cast and thermoplastic
urethane elastomers, spandex fibers and high-performance copolyester-ether elastomers. Polybutylene
terephthalate (PBT) resins are ultimately used in automotive markets and electrical/electronic components
and parts. Approximately 65% of gamma-butyrolactone (GBL) is consumed to produce N-methyl-2-
pyrrolidone (NMP), a solvent in lube oil extraction, electronics applications, paint strippers, magnetic
wire coatings and engineering resins. Other uses for GBL include manufacture of 2-pyrrolidone/N-vinyl-
2-pyrrolidone/polyvinlypyrrolidone and use as a solvent.
For additional information, see the CEH 1,4-Butanediol marketing research report and Thermoplastic
Polyester Engineering Resins product review.
Methylenebis(4-phenyl isocyanate)
Methylenebis(4-phenyl isocyanate) (MDI) is produced by the condensation of aniline and formaldehyde

to form diphenylmethane diamine (MDA), followed by phosgenation to yield a mixture of monomeric
MDI and its oligomers. This mixture is known as polymeric MDI and is used mostly for rigid
polyurethane foam. Four companies, BASF, Bayer, Dow and Huntsman, produce MDI in the United
States; none has captive formaldehyde. Huntsman is the largest U.S. producer of MDI, followed by
Bayer.

658.5000 Z Page 26
The following table presents U.S. consumption of MDI:
U.S. Consumption of MDI—2003

(percent)
Polyurethane Foam
Rigid Polyurethane Foam 50
Flexible Polyurethane Foam 12
Binders 15
Polyurethane Elastomers 10
Adhesives and Sealants 8
Other 5
Total 100%
Approximately 75% of rigid polyurethane (PU) foam is consumed in construction and appliances while
flexible PU foam is used primarily in furniture and transportation. Consumption of MDI as a binder in
wood products, such as OSB, has experienced fast growth; other binder markets include foundry cores
and rubber. PU elastomers are used in automotive components, such as bumper fascias/cover/trim,
spoilers, body panels, mechanical parts, gaskets, seals, sports surface compounds and footwear.
For additional information see the CEH Diisocyanates and Polyisocyanates marketing research report.
Pentaerythritol
Pentaerythritol is produced by the alkaline condensation of formaldehyde and acetaldehyde. U.S.

producers include Celanese, Hercules and Perstorp Polyols; current annual capacity is 77 thousand metric
tons.
The following table presents U.S. consumption of pentaerythritol:
U.S. Consumption of Pentaerythritol—2003

(percent)
Alkyd Resins 60
Neopolyol Esters for Lubricants 15
Rosin/Tall Oil Esters 11
PETN 4
Other 10
Total 100%
Nearly all alkyd resins produced are used in alkyd surface coatings; a small amount is used in printing
inks. Demand for alkyd coating resins in architectural coatings, product finishes and special-purpose
coatings continues to decline as waterborne coating systems and other coatings technologies continue to
make inroads because of environmental regulations concerning VOC emissions and, in some cases, better

658.5001 A Page 27
performance and easier maintenance. As a result, consumption of pentaerythritol in alkyd resins is

expected to slowly decline during 2003-2008.
Approximately 45% of pentaerythritol-based neopolyol ester (NPE) synthetic lubricants base stocks are
used in hydrofluorocarbon (HFC) and hydrochlorofluorocarbon (HCFC) refrigeration systems to replace
older lubricants compatible with chlorofluorocarbons (CFCs); aviation turbine oils account for 25% of
pentaerythritol-based NPEs demand. NPEs are the fastest-growing market for pentaerythritol followed by
rosin/tall oil esters, which are used in adhesives, varnishes, flooring materials, caulking compounds, inks
and surface coatings mainly as low-cost extenders and modifiers.
For additional information see the CEH Neopentyl Polyhydric Alcohols and Alkyd/Polyester Surface
Coatings marketing research reports.
Controlled-Release Fertilizers
Formaldehyde is used to produce controlled-release fertilizers (CRFs) via urea-formaldehyde concentrates

(UFCs). UFCs and derivatives are used as sources of controlled-release (or slow-release) nitrogen,
produced primarily for nonagricultural markets such as lawns, turfs and nurseries. UFC derivatives
include methylene ureas, methylene diurea/dimethylene triurea (MDU/DMTU), UF suspensions and UF
solutions. Solid UF, known as ureaform, is manufactured directly from urea and formaldehyde. The
largest-volume products are the solid methylene ureas, ureaform and UF liquids.
UFC, which is a liquid, is used as an intermediate in the manufacture of granulated (chemically mixed)
CRFs and liquid UF fertilizer products. UFC is characterized by a high formaldehyde-to-urea mole ratio
(about 4.8:1). It is typically composed of 25% urea, 60% formaldehyde and 15% water and analyzes 12%
nitrogen. To increase end-product nitrogen content, additional urea is used during granular fertilizer
production. The final urea-to-formaldehyde mole ratio is usually between 2:1 and 3:1. The principal
producers of UFC are Borden and Georgia-Pacific. The Scotts Company and Lebanon Seaboard Corp.
account for 90-95% of UFC consumption in CRFs.
The following table presents U.S. consumption of CRFs:
U.S. Consumption of Controlled-Release Fertilizers—2003

(percent)
Nonagricultural Markets
Consumer Home/Garden Markets 25
Golf Courses 22
Professional Lawn Care/Landscape Maintenance 20
Nurseries/Greenhouses 12
Other Professional Turf 9
Other 3
Agricultural Crop Markets 9
Total 100%

658.5001 B Page 28
Factors affecting CRF use include:
● The trend toward premium dry bagged fertilizers containing increasing percentages of controlled-
release nitrogen ingredients
● Increasing restrictions on professional lawn care applications in an effort to avoid nitrate

contamination of groundwater and/or runoff of nitrogen fertilizer
● Increasing market development and promotion of CRFs for high-value vegetables and melon
crops.
For additional information, see the CEH Controlled Release Fertilizers marketing research report.
Melamine-Formaldehyde Resins
MF resins are thermoset resins produced by reacting melamine with formaldehyde. The degree of
polymerization depends on the pH of the reaction mixture and the heat of reaction during curing.
The following table presents U.S. consumption of melamine-formaldehyde (MF) resins:
U.S. Consumption of Melamine-Formaldehyde Resins—2003

(percent)
Laminates 37
Surface Coatings 36
Molding Compounds 7
Paper Treating 6
Other 14
Total 100%
Nearly all MF laminates are used for decorative applications; conventional laminates, used in cabinets,
furniture and paneling, account for 70% of demand, while laminate flooring accounts for the remainder.
Consumption of MF resins in laminate flooring is forecast to grow at approximately 10% annually during
2002-2007 because of the growing popularity of easy-to-install glueless locking systems and preglued
laminates and the declining average square-foot prices for laminate flooring.
MF resins are mainly used as cross-linkers with acrylic and polyester resins and to a lesser extent, alkyd
resins. Automotive applications account for 36% of demand (acrylic clear coats, acrylic base coats and
polyester primer-surfacers), while metal containers and coil coatings account for 16% each. Consumption
of MF resins in surface coatings is expected to grow at an average annual rate of 2-2.5% during 2003-
2008.
Other uses for MF resins include molding compounds (mainly dinnerware), paper and textile treating,
wood adhesives, tire cord and ceiling tiles.
For additional information, see the CEH Amino Resins and Melamine marketing research reports.

658.5001 C Page 29
Hexamethylenetetramine
Producing companies
The following table presents U.S. producers of hexamethylenetetramine (HMTA):
U.S. Producers of Hexamethylenetetramine a

Annual Capacity
Company and as of December 1, 2003
Plant Location (thousands of metric Remarks
tons)

Fayetteville, NC 18 Captive formaldehyde. Both merchant sales and captive use.
Wright Chemical Corporation

Riegelwood, NC 23 Captive formaldehyde. All merchant sales.
Total 41
a. Includes producers of granular HMTA only; approximately 5-6 additional companies produce liquid HMTA for
captive use only. Solutia Inc. produces HMTA as an unisolated intermediate for captive use in the production of NTA.
The formaldehyde consumed for NTA production via HMTA is included in the Chelating agents section of this report.
HMTA is produced by reacting aqueous formaldehyde with gaseous, liquid or aqueous ammonia. The
reaction may be represented as follows:
6 CH2O + 4 NH 3 (CH2) 6N4 + 6H2O
formaldehyde ammonia HMTA
mol wt: 30.0 17.0 140.2
HMTA is a white, hygroscopic, crystalline solid that has a symmetrical, heterocyclic fused ring molecule.
It is a versatile chemical intermediate since it can be used as an ammonia or formaldehyde donor.
Salient statistics
The following table presents U.S. supply/demand for HMTA:
U.S. Supply/Demand for Hexamethylenetetramine

1988 1994 2000 2003
Capacity (year-end) 41 41 41 41
Productiona 29.6 35.4 34.4 33
Operating Rate (percent) 72 86 84 80
Importsb 3.4 1.0 1.0 2.2
Exports 0.7 neg 0.4 0.4
Consumption 32.3 36.4 35.0 34.0

658.5001 D Page 30
a. Excludes production of HMTA as an unisolated intermediate in the

production of NTA.
b. Imports are reported under code # 2933.99.8700.
Consumption
The following table presents projected U.S. consumption of HMTA:
U.S. Consumption of Hexamethylenetetramine

Growth Rate,
PF Resins (novolacs) 27.5 81 28.3 0.6

Rubber Accelerators 2.1 6 2.2 0.9
Trimethylene Trinitramine 1.9 6 0.5 –23.4
Other 2.5 7 1.0 –16.7
Total 34.0 100% 32.0 –1.2%
HMTA is used primarily as a cross-linking agent to cure novolac resins. Novolac resins are used in
foundry resins, abrasives, friction materials and molding compounds; other applications include use as an
accelerator in rubber vulcanization, chemical and pharmaceutical intermediate and textile treating agent.
Trimethylene trinitramine is an ingredient in RDX (cyclonite) and cyclotetramethylenetetranitramine
(HMX) explosives. Mining, construction and military uses account for the majority of RDX and HMX
demand. Consumption of HMTA for trimethylene trinitramine is dependent on mining activity, military
operations and the defense budget. As a chemical intermediate, HMTA is used in the preparation of
primary amines and nitrogen heterocyclics and as a methylenating reagent. HMTA and some derivatives
are used in pharmaceutical applications, such as a urinary antiseptic.
Other
The following table presents U.S. consumption of 37% formaldehyde in other uses:

658.5001 E Page 31
U.S. Consumption of 37% Formaldehyde in Other Uses

Growth Rate,

Chelating Agents 113 18.1 127 2.4
Herbicides 95 15.2 95 0
TMP 94 15.1 121 5.2
Pyridine Chemicals 75 12.0 79 1.0
Neopentyl Glycol 60 9.6 90 8.4
Nitroparraffin Derivatives 27 4.3 31 2.8
Textile Chemicals 16 2.6 14 -2.6
TME 11 1.8 13 3.4
Other 17 2.7 18 1.1
Total 623 100% 715 2.8%
The following table presents historical U.S. consumption of 37% formaldehyde in other uses:
Historical U.S. Consumption of 37% Formaldehyde in Other Uses

Para- Neo- Nitro-
formalde- Chelating Herbi- Pyridine pentyl paraffin Textile
hyde Agentsa cides TMPb Chemicals Glycolc Derivatives Chemicals TME Other Total
1984 79 140 -- 44 25 -- 11 23 9 20 351
1985 82 145 -- 44 26 -- 11 23 8 22 361

1986 85 143 -- 44 29 -- 11 22 9 23 366
1987 87 142 -- 46 58 34 16 20 9 23 435
1988 88 142 -- 47 59 36 17 20 8 35 452
1989 91 138 -- 49 60 39 18 20 9 36 460
1990 94 141 -- 52 60 41 19 20 9 37 473

1991 95 136 -- 47 61 41 20 20 9 38 467
1992 96 134 -- 51 62 42 23 20 9 14 451
1993 98 131 31 63 64 47 23 19 10 14 500
1994 100 130 36 78 65 51 24 19 10 15 528
1995 100 120 42 83 66 57 24 18 12 16 538

1996 95 117 50 86 68 58 25 18 12 16 545
1997 97 118 61 87 70 58 26 18 10 17 562
1998 99 112 75 89 74 60 27 18 11 17 582
1999 101 111 91 92 75 57 27 17 11 17 599
2000 103 112 95 104 79 53 28 17 11 18 620

2001 115 115 95 94 75 52 27 16 11 17 617
a. Includes formaldehyde used to produce NTA via HMTA.
b. Assumes that 2.3 metric tons of 37% formaldehyde are required for each metric ton of TMP produced.

658.5001 F Page 32
c. Prior to 1990, data were included in OTHER. Assumes that 0.86 metric ton of 37% formaldehyde is required for each
metric ton of neopentyl glycol produced.
Paraformaldehyde
Paraformaldehyde is a high-formaldehyde-content solid that is available as 91% or 95% prills; 85% of the
U.S. market is 91% prills. Approximately 2.6 metric tons of 37% formaldehyde are required to produce
one metric ton of paraformaldehyde. Celanese at Bishop, Texas is the sole U.S. producer of
paraformaldehyde. Imports, primarily from Spain, also supply the domestic market.
The following table presents U.S. supply/demand for paraformaldehyde:
U.S. Supply/Demand for Paraformaldehyde—2003

Production 45-48
Imports 6
Exports 27
Consumption 24-27
The main applications are foundry resins, nonaqueous systems and other applications where excess water
is not desirable. Because it is a solid, paraformaldehyde is ideal for shipping formaldehyde over long
distances. Paraformaldehyde can be liquefied through a proprietary process.
Chelating agents
The following table presents U.S. consumption of 37% formaldehyde for chelating agents:
U.S. Consumption of 37% Formaldehyde for Chelating Agents

EDTAa DTPA HEDTA NTAb
1990 55 18 5 63
1995 60 20 5 35
2000 64 22 6 20
2003 66 23 7 17
a. Assumes that 1.065 metric tons of 37% formaldehyde are consumed

for each metric ton of sodium EDTA produced.
b. Assumes that 0.946 unit of 37% formaldehyde is required per unit of

NTA.

658.5001 G Page 33
Formaldehyde is consumed in the production of various aminopolycarboxylic acid chelating agents;

nitrilotriacetic acid (NTA) and its salts are produced indirectly from formaldehyde via HMTA. These
chelating agents include ethylenediaminetetraacetic acid (EDTA) and its salts, hydroxyethylethylene-
diaminetriacetic acid (HEDTA) and diethylenetriamine pentaacetic acid (DTPA). Formaldehyde is also
consumed in the production of the organophosphonate chelating agent aminotri(methylene-phosphonic
acid) (ATMP) and its sodium salt.
The following table presents U.S. consumption of formaldehyde-based chelating agents:
U.S. Consumption of Formaldehyde-Based Chelating Agents—2003

(percent)
EDTA DTPA HEDTA NTA
Household, Institutional and Industrial Cleaners 24 18 33 39

Pulp and Paper 26 65 -- --
Gas Scrubbing -- -- 47 --
Water Treatment 18 -- 7 22
Textile Treatment 3 6 -- 17
Agricultural Applications 7 -- 7 11
Photographic Applications 7 2 -- --
Other 15 9 6 11
Total 100% 100% 100% 100%
The largest U.S. producers of aminopolycarboxylic acid chelating agents are Dow, BASF, Akzo Nobel
and Solutia (NTA only). For more information see the CEH Chelating Agents product review.
Herbicides
Formaldehyde is consumed in one of two processes currently used by Monsanto to produce glyphosate, a
key ingredient of its contact postemergent herbicide Roundup ® (the isopropylamine salt of glyphosate).
Formaldehyde is reacted with hydrogen cyanide and ammonia to produce the glyphosate intermediate,
iminodiacetic acid. Monsanto’s other process involves the production of iminodiacetic acid from
diethanolamine (DEA). Removal of waste and concerns over cyanide toxicity are two of the leading
reasons that the DEA-based route was developed.
One of the major factors in increased use of Roundup® is the increase in popularity of no-till farming.
Although production of glyphosate has grown rapidly in recent years, most additional production of
glyphosate has been via DEA. As a result, consumption of formaldehyde for glyphosate is forecast to
remain static.
Trimethylolpropane
Trimethylolpropane (TMP) is produced by the aldol condensation of n-butyraldehyde with formaldehyde,

followed by the Cannizarro reaction with formaldehyde; U.S. producers include Celanese and Perstorp
Polyols.

658.5001 H Page 34
The following table presents U.S. consumption of TMP:
U.S. Consumption of Trimethylolpropane—2003

(percent)
Coating Resins
Polyester Coating Resins 25
Alkyd Coating Resins 21
Multifunctional Acrylates/Methacrylates 17
Polyether Polyols for Urethanes 10
Other 7
Total 100%
TMP imparts high UV and chemical resistance to coating resins, which are desirable qualities for exterior
applications. It also improves the heat resistance of the resin so that it remains stable at baking conditions.
Polyester coating resins can be formulated into high-solids, waterborne and powder coatings, making
them more environmentally acceptable than most alkyds. They are used almost exclusively in product
finishes, mainly for metal furniture and fixtures, appliances and sheet, strip and coil. TMP is also used as
a precursor in alkyd coating resins, in both high-solids and waterborne alkyds for architectural coatings
and product finishes.
TMP-based neopolyol esters (NPEs) are used as base stocks for synthetic lubricants. TMP adds thermal
stability to the base stock. Synthetic lubricants based on TMP are used in jet turbine engines, residential
and commercial refrigerators and air conditioners and fire-resistant hydraulic fluids. TMP acrylates and
methacrylates are used as multifunctional monomers (MFMs) in radiation-curable formulations; the most
commonly used MFM in the United States is trimethylolpropane triacrylate. The fastest-growing markets
for TMP are multifunctional acrylates/methacrylates, NPEs and polyester coating resins.
For additional information, see the CEH Neopentyl Polyhydric Alcohols marketing research report.
Pyridine chemicals
Pyridine and picolines are produced from the vapor-phase reaction of acetaldehyde, formaldehyde and
ammonia. Producing companies use the same equipment and catalyst to produce mixtures of pyridine and
3-picoline (beta-picoline) or mixtures of 2-picoline and 4-picoline. The addition of formaldehyde or a
methanol/formaldehyde mixture favors the formation of the pyridine/3-picoline mixture. Reilly Industries
and Nepera are the only producers of pyridine bases using formaldehyde in the United States.

658.5001 I Page 35
The following table presents U.S. consumption of pyridine and picolines:
U.S. Consumption of Pyridine and Picolines—2003

(percent)
Pyridine alpha-Picoline beta-Picoline
Agricultural Chemicals 80 55 --a

Cyanopyridine (noncaptive) -- -- 18
Niacin/Niacinamide -- -- 38
Pyrithione Salts 11 -- --
2-Vinylpyridine -- 39 --
Other 9 6 44
Total 100% 100% 100%
a. Included with OTHER.
The single largest application for pyridine is in the production of paraquat, which is used as a pesticide in
no-till agriculture. Pyrithione salts are used in antidandruff shampoos and mouthwashes. alpha-Picoline is
used as a starting material for several herbicides including picloram and nitrapyrin. 2-Vinylpyridine (2-
VP) is the single largest derivative of alpha-picoline; it is produced by the reaction of alpha-picoline with
formaldehyde, followed by dehydration of the resulting alcohol. Most 2-VP is used in styrene-butadiene-
vinylpyridine terpolymer latexes, which are used as tire cord adhesives. Most beta-picoline is used in the
production of niacin and niacinamide (vitamin B3 ). Cyanopyridine is used as a niacin/niacinamide
intermediate.
For additional information, see the CEH Pyridine and Pyridine Bases product review.
Neopentyl glycol
Neopentyl glycol is produced by the aldol condensation of isobutyraldehyde with formaldehyde, followed
by either catalytic hydrogenation or reduction by a crossed Cannizarro reaction with formaldehyde; U.S.
producers include BASF and Eastman Chemical.
The following table presents U.S. consumption of neopentyl glycol:
U.S. Consumption of Neopentyl Glycol—2003

(percent)
Coating Resins
Polyester Coating Resins 62
Alkyd Coating Resins 3
Unsaturated Polyester Resins 20
Other 9
Total 100%

658.5001 J Page 36
Neopentyl glycol is used mainly as a precursor in saturated polyester and alkyd resins. Neopentyl glycol
provides superior hydrolytic stability, weatherability (improved heat and UV stability) and a good balance
between hardness and flexibility. The largest use is polyester resins for powder coatings. Powder coatings
are applied to metal substrates for general metal finishing, appliances, automotive, lawn and garden
products and architectural applications.
Most unsaturated polyester resins (UPR) that contain neopentyl glycol are used to make cultured marble
and gel coats. End-use markets include vanity tops with built-in sinks, bathtubs, showers, spas and
window sills. Gel coats are used mainly on marine products and sanitaryware. The fastest-growing market
for neopentyl glycol is coating resins, especially polyester coating resins for powder coatings.
Nitroparaffin derivatives
ANGUS Chemical Company, a wholly owned subsidiary of Dow Chemical, produces nitro alcohols and
amino alcohols from nitroparaffins and formaldehyde. Treatment of propane in the vapor phase with
nitric acid produces the basic nitroparaffins—nitromethane, nitroethane and 1- and 2-nitropropane. The
reaction of these basic nitroparaffins with formaldehyde yields the corresponding nitro alcohols, which
can then be reduced to amino alcohols.
The nitro alcohols include 2-nitro-2-methyl-1-propanol (NMP™), 2-nitro-2-ethyl-1,3-propanediol

(NEPD™), 2-nitro-2-methyl-1,3-propanediol (NMPD™) and tris(hydroxymethyl)nitromethane (TRIS
NITRO ®). NMP™ is used as a chemical intermediate, formaldehyde donor, textile reactant and adhesion
promoter for tires. NMPD™ and NEPD™ are used as chemical intermediates and formaldehyde donors.
NEPD™ is used as a formaldehyde donor in adhesives and foundry resins. TRIS NITRO® is used as a
deodorant for chemical toilets and as a chemical intermediate and formaldehyde donor.
The amino alcohols include 2-amino-2-methyl-1-propanol (AMP Regular® and AMP-95 ®), 2-amino-2-
ethyl-1,3-propanediol (AEPD®), 2-amino-2-methyl-1,3-propanediol (AMPD™) and tris(hydroxymethyl)
aminomethane (TRIS AMINO®). AMP is used as a multifunctional additive for latex paint; pigment
codispersant; solubilizer for hair fixative, coating and other resins; cosmetic ingredient and raw material;
and as an emulsifying amine with fatty acids. AEPD ® is used as a chemical intermediate, formaldehyde
scavenger, acid-salt catalyst for permanent-press resins and as an emulsifying amine with fatty acids.
AMPD™ is used as a reagent chemical in medical diagnostic tests, solubilizer or emulsifier system
component in personal care products and as a buffer in aqueous systems. TRIS AMINO® is used as a
chemical and resin-synthesis intermediate, neutralizing amine in cosmetics, buffer for enzyme and
diagnostic testing, pharmaceutical buffer and solubilizer and a formaldehyde scavenger.
ANGUS also produces various amino alcohol derivatives that are used as cross-linking agents, corrosion
inhibitors, leather tanning agents, formaldehyde donors and alternatives, ultralow-viscosity reactive
diluents for urethane systems, dispersants, emulsifiers and humidity control agents.
Textile chemicals
Formaldehyde derivatives are used to impart wrinkle-resistance to fabrics. Demand for formaldehyde-
based textile chemicals has decreased annually since 1985 because of concerns over formaldehyde
emissions and environmental regulations. Textile producers have switched to low-formaldehyde products

658.5001 K Page 37
or formaldehyde-free resins. The decline of formaldehyde demand in the textile market is also attributed
to increased imports of finished apparel.
Dimethylol dihydroxyethylene urea (a glyoxal-UF resin) is the main chemical used in postcure durable-
press resins for cotton blends because it does not have the odor problems associated with UF and MF
resins. It has better performance characteristics than UF resins, but is more costly. UF resins are used
alone in price-sensitive applications. Noveon at Charlotte, North Carolina is the sole U.S. producer of
dimethylol dihydroxyethylene urea.
Other textile chemicals that use formaldehyde include THPOH (the hydroxide derivative of THPC
[tetrakis hydroxymethyl phosphonium chloride]) and THPOH-amide (a mixture of tris[hydroxymethyl]
phosphine, formaldehyde and one of several amides). Both are also used for making cotton fibers more
fire-resistant. A strong competitor to the various THPC systems is Pyrovatex®, which yields better hand
and has better nonyellowing properties than the THPC systems. However, it may not be bleached with
chlorine and, like most finishes, it decreases the strength and abrasion-resistance of the fabric. Also, its
fire-retardant characteristics are destroyed by one steam sterilization followed by a hot water rinse;
similar treatment does not destroy the fire retardancy of THPOH or THPOH-amide.
Use of formaldehyde-based textile chemicals is expected to continue declining.
Trimethylolethane
Trimethylolethane (TME) is produced by the aldol condensation of propionaldehyde with formaldehyde,

followed by the Cannizarro reaction with formaldehyde. GEO Specialty Chemicals’ TRIMET Products
Group is the sole U.S. producer of TME.
The following table presents U.S. consumption of trimethylolethane:
U.S. Consumption of Trimethylolethane—2003

(percent)
Coating Resins
Polyester and Alkyd Coating Resins 75
Other 9
Other 16
Total 100%
TME is used primarily as a component in alkyd and polyester resins for coatings that display excellent
hardness, gloss retention, UV stability, weatherability and durability. TME is being used in both high-
solids and water reducible coatings. Alkyd surface coatings that contain TME are typically used on farm
implements and machinery as primers and topcoats. Other markets for TME include trimethylolethane
trinitrate (an explosive used in solid propellants), polyester and polyether polyols, NPEs for synthetic
lubricants, plasticizers, inks, photographic chemicals and adhesives.

658.5001 L Page 38
Miscellaneous
Small volumes of formaldehyde are used in dyes, as embalming agents and starch preservatives and in
drilling muds. Other applications include resorcinol-formaldehyde, acetone-formaldehyde, cresol-
formaldehyde and aniline-formaldehyde resins; rubber-processing chemicals; conversion of sewage
sludge to fertilizers; and production of photographic developers. Hydrated silica is reacted with resorcinol
and formaldehyde to enhance the adhesion of rubber to textiles or wire.
The most common synthetic organic tanning agents (syntans) for leather and fur incorporate
formaldehyde condensates. These syntans include 2-naphthalenesulfonic acid, formaldehyde condensate
and salts; 1-naphthalenesulfonic acid, formaldehyde condensate and salts; and 1-phenol-2-sulfonic acid,
formaldehyde condensate and salts. The major U.S. producers of formaldehyde condensate syntans are
Hampshire, a wholly owned subsidiary of Dow Chemical and Geo Specialty Chemicals.
PRICE
The following table presents U.S. list prices for 37% formaldehyde:
U.S. List Prices for 37% Formaldehyde

(cents per pound)
Price, Tanksa
Inhibited Uninhibited
1960 4.30 3.75
1965 4.30 3.75
1970 3.75 3.20
1975 4.80 4.00
1980 8.15-8.55 7.35-7.75
1985 9.15-9.65 8.25-8.80
1990 9.35-11.00 8.00-11.00

1991 8.55-9.50 8.00-9.00
1992 8.75-11.00 8.50-10.50
1993 12.75-13.15 11.85-12.25
1994 22.70-23.75 21.00-22.45
1995 22.70-23.75 21.00-22.45

1996 22.70-23.75 21.00-22.45
1997 22.70-23.75 21.00-22.45
1998 12.75-13.25 11.85-12.25
1999 12.75-13.25 11.85-12.25
2000 12.75-13.25 11.85-12.25
2003 16 15
a. For 1960-1975, whenever a range of prices was given, the lowest was
used. Price bases are:

658.5001 M Page 39
INHIBITED
1960-1970 USP, 12-15% methanol, delivered
1975 12-15% methanol, delivered (these prices may
also include some product inhibited with 7%
methanol; the list price for 37% formaldehyde,
7% methanol inhibited, delivered, was 4.75 cents
per pound on July 1, 1976)
1980-2003 7% methanol inhibited, fob
UNINHIBITED
1960-1975 Delivered
1980-2003 Fob producing plant. In some instances
companies offer partial freight prepayments.
SOURCES: (A) Chemical Marketing Reporter, midyear issues (data for

PRICE for 1960-1975).
(B) Producers’ price lists and CEH estimates (data for

PRICE for 1980-2003).
Formaldehyde prices closely follow feedstock methanol prices. Stored formaldehyde requires an inhibitor
to prevent excessive polymerization at minimum storage temperatures. Methanol is most commonly used
and inhibited grades usually contain 7-15% methanol. Prices for both inhibited and uninhibited
formaldehyde vary according to the grade of product, which usually varies with formaldehyde content,
ranging from 37% to 56%. For the 37% inhibited grades, a premium of 0.5 cent per pound is charged for
a 7% methanol grade and 1.0 cent per pound for 12-15% grades. List prices are also subject to significant
volume price discounting.
Formaldehyde sales are subject to regional selling prices so that at any one time, formaldehyde may be
sold at or near list price in one area and at a significant discount in another area. Since virtually all the
inhibited grades are sold into low-volume uses, the most significant price discounting occurs with the
uninhibited grades.
Transportation costs greatly affect the delivered price of formaldehyde. Formaldehyde solutions usually
contain 40-60% water; therefore, in order to avoid water freight charges, merchant formaldehyde is
usually not shipped long distances. Customers that must transport formaldehyde buy it in a high
concentration in order to reduce freight charges by minimizing the water content. In addition, some
customers buy paraformaldehyde in the form of prills.
TRADE
The following table presents U.S. trade in formaldehyde:

658.5001 N Page 40
U.S. Trade in Formaldehyde

Importsa Exportsb
1960 0.3 5.5
1965 1.2 1.4
1970 0.1 7.7
1975 neg 12.7
1980 4.6 8.7
1985 3.9 4.3
1990 12.2 2.3

1991 14.5 2.5
1992 23.5 4.5
1993 26.2 6.0
1994 39.6 11.4
1995 54.3 11.9

1996 63.3 11.6
1997 62.6 16.2
1998 46.6 5.9
1999 37.3 9.6
2000 28.1 8.2

2001 21.2 4.9
2002 22.7 6.4
2003c 7.6 5.1
a. Imports are reported under codes 427.4800 (data for 1960-

1985) and 2912.11.00.00 (data for 1990-2003).
b. Exports are reported under codes 431.2420 (data for 1960-

1985) and 2912.11.00.00 (data for 1990-2003). Exports of
formaldehyde reported by the Department of Commerce
before 1989 include paraformaldehyde.
c. Data are for January through June.
SOURCES: (A) CEH estimates (data for 1960-1975).
(B) U.S. Imports, U.S. Department of Commerce,

Bureau of the Census (data for IMPORTS for
1980-2003).
(C) U.S. Exports, U.S. Department of Commerce,

Bureau of the Census (data for EXPORTS for
1980-2003).

658.5001 O Page 41
The following table presents U.S. imports of formaldehyde by country of origin in 2002:
U.S. Imports of Formaldehyde by Country of Origin—2002

Quantity Unit Imports Value
Country of (thousands of (dollars per
Origin metric tons) Percent kilogram)
Canada 22.6 100 0.19

Other 0.1 neg --
Total 22.7 100% 0.19
SOURCE: U.S. Imports, U.S. Department of Commerce, Bureau of the Census.
The following table presents U.S. exports of formaldehyde by country of destination in 2002:
U.S. Exports of Formaldehyde by Country of Destination—2002

Quantity Unit Exports Value
Destination metric tons) Percent kilogram)
Canada 5.3 83 0.38

Australia 0.2 3 --
Netherlands 0.2 3 --
Germany 0.2 3 --
Russia 0.2 3 --
Other 0.3 5 --
Total 6.4 100% 0.38
SOURCE: U.S. Exports, U.S. Department of Commerce, Bureau of the Census.
Most U.S. formaldehyde exports are in the form of 12% methanol solutions to prevent polymerization.

658.5001 P Page 42
The following table presents U.S. trade in paraformaldehyde:
U.S. Trade in Paraformaldehyde

Importsa Exportsb
1985 2.2 na
1990 3.9 8.3

1991 3.9 9.9
1992 4.3 12.7
1993 4.7 15.5
1994 5.4 16.0
1995 6.4 11.9

1996 9.6 19.1
1997 9.6 19.2
1998 7.6 16.2
1999 6.8 12.7
2000 8.3 23.2

2001 8.1 23.2
2002 6.9 26.8
2003c 2.8 13.3
a. Imports are reported under codes 427.5600 (datum for 1985) and
2912.60.00.00 (data for 1990-2003).
b. Exports are reported under codes 427.5500 (datum for 1985) and
2912.60.00.00 (data for 1990-2003).
SOURCES: (A) U.S. Imports, U.S. Department of Commerce, Bureau

of the Census (data for IMPORTS).
(B) U.S. Exports, U.S. Department of Commerce, Bureau

of the Census (data for EXPORTS).
The following table presents U.S. imports of paraformaldehyde by country of origin in 2002:
U.S. Imports of Paraformaldehyde by Country of Origin—2002

Quantity Unit Imports Value
Origin metric tons) Percent kilogram)
Spain 3.8 55 0.36

Germany 1.3 19 0.42
United Kingdom 0.9 13 0.98
Netherlands 0.5 7 0.39
Other 0.4 6 --
Total 6.9 100% 0.51
SOURCE: U.S. Imports, U.S. Department of Commerce, Bureau of the

Census.

658.5001 Q Page 43
The following table presents U.S. exports of paraformaldehyde by country of destination in 2002:
U.S. Exports of Paraformaldehyde by Country of Destination—2002

Quantity Unit Exports Value
Destination metric tons) Percent kilogram)
China 14.9 56 0.38

Japan 1.8 7 0.58
Brazil 1.5 6 0.43
Canada 1.4 5 0.59
Korea, Republic of 1.2 4 0.44
Other 6.0 22 --
Total 26.8 100% 0.54
SOURCE: U.S. Exports, U.S. Department of Commerce, Bureau of the Census.
CANADA
PRODUCING COMPANIES
The following table presents Canadian producers of formaldehyde:
Canadian Producers of Formaldehydea

Annual Capacity
as of December 1, 2003
(thousands of
Company and Plant Location metric tons) Remarks
ARC Resins Corp.

Longueuil, Québec 77 Mostly captive consumption for MF, PF and UF resins.
Owned 100% by Tembec Inc.

Edmonton, Alberta 340 Mostly captive consumption for RF, PF and UF resins.
Owned 100% by Borden Chemical, Inc., United States.
Laval, Québec 77 Mostly captive consumption for UF resins.
Saint Romuald, Québec 118 Mostly captive consumption for UF resins.
Vancouver, British Columbia 23 Captive consumption for RF, PF and UF resins.
Celanese Canada Inc.

Chemicals Division
Edmonton, Alberta 160 Captive methanol. Plant is scheduled for a permanent
shutdown in mid-2004. Owned 100% by Celanese AG,
Germany.
Dynea Canada Ltd.

North Bay, Ontario 87 Captive consumption for MF, PF and UF resins.
Owned 100% by Dynea Oy, Finland.
Sainte Thérèse, Québec 70 Mostly captive consumption for MF, PF and UF resins.
Thunder Bay, Ontario 60 Mostly captive consumption for PF and UF resins.
Uniboard Canada Inc.

Unires Division
Val d’Or, Québec 55 Some captive consumption for MUF and UF resins.

658.5001 R Page 44
Canadian Producers of Formaldehydea (continued)

Annual Capacity
(thousands of
Woodchem Canada Ltd.

St. Stephen, New Brunswick 25 Captive consumption for UF resins and UFC. Owned
by A.C.M. Wood Chemicals plc, United Kingdom.
Total 1,092
SOURCE: World Petrochemicals Program, SRI Consulting.
SALIENT STATISTICS
The following table presents Canadian supply/demand for 37% formaldehyde:
Canadian Supply/Demand for 37% Formaldehyde

Annual Operating
Capacity Rate
(year-end) (percent) Production Imports Exports Consumption
1983 398 64 256 5 7 254

1984 434 65 283 2 5 280
1985 434 66 288 3 3 288
1990 467 62 288 6 16 278

1991 486 63 308 6 14 300
1992 469 77 360 7 23 344
1993 504 83 417 5 26 396
1994 529 85 449 12 40 421
1995 659 79 521 11 54 478

1996 659 82 541 9 63 487
1997 693 80 552 14 62 504
1998 803 72 578 3 47 534
1999 803 79 634 5 50 589
2000 803 84 675 5 60 620
2003 1,092 71 775 8 50 696

658.5001 S Page 45
CONSUMPTION
The following table presents Canadian consumption of 37% formaldehyde:
Canadian Consumption of 37% Formaldehyde

Growth Rate,
UF Resins 375 54 440 3.2

PF Resins 275 40 330 3.7
MF Resins 36 5 44 4.1
Other 10 1 12 3.7
Total 696 100% 826 3.5%
Canadian demand for formaldehyde is tied into demand for UF, PF and MF resins for wood adhesives,
coatings and laminates. In 2003, these thermoset resins accounted for all Canadian consumption of
formaldehyde.
Consumption of formaldehyde in UF resins is forecast to increase as a result of increased production of

particleboard and MDF. Growth in PF resins will be due mainly to increased production of OSB, mainly
for export to the United States. Production of MF resins will increase because of growing demand in
laminates and surface coatings. Exports of Canadian-produced particleboard have grown faster than
domestic demand.
MEXICO
PRODUCING COMPANIES
The following table presents Mexican producers of formaldehyde:
Mexican Producers of Formaldehydea

Annual Capacity
(thousands of
Adhesivos, S.A. de C.V.

Ixtacuixtla, Tlaxcala 75 Some captive consumption for UF and PF resins,
paraformaldehyde and HMTA.
Dynea Mexico, S.A. de C.V.

Durango, Durango 15 Captive consumption for UF, PF, MF and RF resins.
Feno Resinas, S.A. de C.V.

Tizayuca, Hidalgo 15 Captive consumption for UF, PF and MF resins and
HMTA.

658.5001 T Page 46
Mexican Producers of Formaldehydea (continued)

Annual Capacity
(thousands of
Formoquimia, S.A. de C.V.

Hidalgo del Parral, Chihuahua 10 Mostly captive consumption for MF and UF resins.
Owned 100% by Duraplay S.A.
Industria Química Delgar, S.A. de C.V.

San Luis Potosí, San Luis Potosí 15 Some captive consumption for UF, PF and MF
resins.
Indústria Química del Pacífico, S.A. de C.V.

Guadalajara, Jalisco 10 Some captive consumption for UF resins.
Petroderivados, S.A. de C.V.

San Juan Ixhuatepec, Edo. de México 2 Captive consumption for UF and MF resins.
Q.B. Químicos de México, S.A. de C.V.

Xalostoc, Edo. de México 33 Some captive consumption for HMTA and UF, PF
and MF resins.
Rexcel, S.A. de C.V.

Lerma, Edo. de México 32 Some captive consumption for UF, PF and MF
resins. Owned 100% by DESC, S.A. de C.V.
Soquimex, S.A.
Chihuahua, Chihuahua 15 Some captive consumption for UF resins.
Total 222
SALIENT STATISTICS
The following table presents Mexican supply/demand for 37% formaldehyde:

658.5001 U Page 47
Mexican Supply/Demand for 37% Formaldehyde

Annual Operating
Capacity Rate
1983 156 51 79 0.1 -- 79

1984 180 48 87 0.1 8 79
1985 170 62 106 0.3 5 101
1990 205 58 118 20 0 138

1991 232 49 114 23 0 137
1992 232 45 104 17 0 121
1993 232 41 94 25 0 119
1994 232 62 144 1 0 145
1995 232 60 139 1 0 140

1996 232 54 125 1 0 126
1997 232 56 131 1 0 132
1998 232 58 134 1 0 135
1999 232 56 131 1 0 132
2000 232 59 136 1 0 137
2003 222 72 160 neg 1 155
SOURCE: CEH estimates based on World Petrochemicals Program, SRI Consulting.
CONSUMPTION
The following table presents Mexican consumption of 37% formaldehyde:
Mexican Consumption of 37% Formaldehyde

Growth Rate,
UF Resins 118 76 140 3.5

HMTA 16 10 19 3.5
PF Resins 15 10 19 4.8
MF Resins 4 3 6 8.4
Other 2 1 2 0
Total 155 100% 186 3.7%
In comparison to Canada and the United States, Mexico’s wood industry is very small. Wood adhesives
accounted for 89% of total Mexican formaldehyde demand in 2003.

658.5001 V Page 48
SOUTH AND CENTRAL AMERICA
PRODUCING COMPANIES
The following table presents South and Central American producers of formaldehyde:
South and Central American Producers of Formaldehydea

Annual Capacity
(thousands of
Argentina
Atanor S.A.
Munro, Buenos Aires 21 Some captive consumption for PF and UF resins.
Proarmet S.A.
San Nicolás, Buenos Aires (31) Mostly captive consumption for PF, MF and UF
resins. Plant was idled in late 2000.
Resinas Concordia S.A.

Concordia, Entre Ríos 35 Mostly captive consumption for MF and UF resins
and UFC. Owned 100% by Georgia-Pacific Resins,
Inc., United States.
Resinfor Metanol S.A.

Puerto General San Martín, Santa Fe 48 Captive methanol. Mostly captive consumption for
PF and UF resins and UFC.
Brazil
ATOFINA Brasil Química Ltda.

Formaldehyde/Resins Division
Jundiaí, São Paulo 60 Mostly captive consumption for UFC and MF, PF
and UF resins. Owned 100% by ATOFINA, France.
Borden Química Indústria e Comércio Ltda.

Curitiba, Paraná 123 Mostly captive consumption for PF and UF resins.
Owned 99.99% by Borden Chemical Holdings
(Panamá) S.A., Panamá.
Companhia Petroquímica do Nordeste

Camaçari, Bahia 95 Some captive consumption for HMTA.
Sorocaba, São Paulo 66 Some captive consumption for pentaerythritol.
Dynea Brasil S.A.

Araucária, Paraná 64 Mostly captive consumption for PF and UF resins.
Owned 50% by Dynea A.S.A., Norway.
Elekeiroz S.A.
Várzea Paulista, São Paulo 37 Mostly merchant sales.
Pertech PSV do Brasil Ltda.

São Bernardo do Campo, São Paulo 6 Captive consumption for MF and PF resins. Owned
99.99% by Perstorp AB, Sweden.

658.5001 W Page 49
South and Central American Producers of Formaldehydea (continued)

Annual Capacity
(thousands of
Brazil (continued)
Royalplás Indústria e Comércio Ltda.

Guarulhos, São Paulo 50 Some captive consumption for UFC and UF resins.
Schenectady Crios S.A.

Rio Claro, São Paulo 36 Some captive consumption for RF and PF resins.
Sulana Indústria Química Ltda.

Maringá, Paraná 25 Mostly captive consumption for PF and UF resins.
Synteko Produtos Químicos S.A.

Araucária, Paraná 90 Mostly captive consumption for PF and UF resins
and UFC.
Gravataí, Rio Grande do Sul 100 Mostly captive consumption for MF, PF and UF
resins and UFC.
Uberaba, Minas Gerais 45 Mostly captive consumption for MF and UF resins
and UFC.
Chile
Georgia-Pacific Resinas Ltda.

Coronel, Región del Biobío 72 Captive consumption for MF and UF resins and
UFC. Owned 100% by Georgia-Pacific Resins, Inc.,
United States.
Oxiquim S.A.
Formaldehyde & Derivatives Division
Viña del Mar, Región de Valparaiso 55 Mostly captive consumption for pentaerythritol and
PF and UF resins.
Timber Division
Concepción, Región del Biobío 190 Mostly captive consumption for MUF, PF and UF
resins.
Colombia
Cia. Química Borden S.A.

Yumbo, Valle 18 Mostly captive consumption for PF and UF resins.
Owned 100% by Borden Chemical, Inc., United
States.
INTERQUIM S.A.
Girardota, Antioquía 24 Mostly captive consumption for MF, MUF, PF and
UF resins. Owned 100% by Casco Products AB,
Sweden.
Pizano S.A.
Barranquilla, Atlantico 6 Mostly captive consumption for UF resins.

658.5001 X Page 50
South and Central American Producers of Formaldehydea (continued)

Annual Capacity
(thousands of
Ecuador
Interamericana de Productos Quimicos del

Ecuador S.A.
Chemical Division
Quito, Pichincha 10 Some captive consumption for PF and UF resins.
Partly owned by Casco Products AB, Sweden.
Peru
Industrias Vencedor S.A.

Callao, Lima 4 Mostly captive consumption for PF and UF resins.
Productos Industriales S.A.

Lima, Lima 10 Also known as PLANINSA.
Venezuela
INTEQUIM, C.A.
Valencia, Carabobo 40 Some captive consumption for MF, PF and UF
resins.
Oxinova C.A.
Puerto Ordaz, Bolívar 76 Some captive consumption for PF and UF resins and
UFC. Owned 49% by Oxiquim S.A., Chile.
RESIMON, C.A.
Valencia, Carabobo 15 Mostly captive consumption for MF, PF and UF
resins. Owned 10% by Reichhold Chemicals, Inc.,
United States.
Total 1,421
SALIENT STATISTICS
The following table presents South and Central American supply/demand for 37% formaldehyde:

658.5001 Y Page 51
South and Central American Supply/Demand for 37% Formaldehyde—2003

Annual Capacity
(year-end) Production Imports Exports Consumption
Argentina 104 87 1 1 85
Brazil 797 580 neg 1 570
Chile 317 272 neg neg 265
Colombia 48 43 neg 1 40
Ecuador 10 10 neg neg 10
Peru 14 14 1 neg 15
Venezuela 131 52 neg neg 50
Other 0 0 6 neg 6
Total 1,421 1,058 8 3 1,041
CONSUMPTION
The following table presents South and Central American consumption of 37% formaldehyde:
South and Central American Consumption of 37% Formaldehyde

Growth Rate,
UF Resins 679 65 900 5.8

PF Resins 215 21 280 5.4
Pentaerythritol 70 7 85 4.0
MF Resins 30 3 50 10.8
Other 47 4 55 3.2
Total 1,041 100% 1,370 5.6%
The following table presents South and Central American consumption of 37% formaldehyde by country:
South and Central American Supply/Demand for 37% Formaldehyde—2003

UF Resins PF Resins MF Resins Pentaerythritol Other Total
Argentina 67 12 4 0 2 85
Brazil 375 120 10 30 35 570
Chile 175 40 5 40 5 265
Colombia 18 15 4 0 3 40
Ecuador 6 3 1 0 -- 10
Peru 10 4 1 0 -- 15
Venezuela 25 18 5 0 2 50
Other 3 3 -- 0 -- 6
Total 679 215 30 70 47 1,041

658.5001 Z Page 52
WESTERN EUROPE
PRODUCING COMPANIES
In 2003, 59 companies produced formaldehyde in 64 plants in Western Europe. The following table
presents a regional overview:
Western European Capacity for Formaldehyde—2003

Quantity
Number of Number of (thousands of Capacity
Companies Plants metric tons) (percent)
Austria 2 2 317 3.7

Belgium 5 5 495 5.7
Denmark 1 1 100 1.2
Finland 2 2 160 1.8
France 3 3 265 3.1
Germany 11 11 2,631 30.3
Greece 1 1 22 0.3
Ireland 1 1 80 0.9
Italy 12 13 1,345 15.5
Netherlands 4 5 696 8.0
Norway 1 2 185 2.1
Portugal 3 3 263 3.0
Spain 6 6 950 11.0
Sweden 2 3 465 5.4
United Kingdom 5 6 695 8.0
Total 59 64 8,669 100%
The following table presents Western European producers of formaldehyde:
Western European Producers of Formaldehydea

Annual Capacity
(thousands of
Austria
Dynea Austria GmbH

Krems an der Donau 295 Mostly captive consumption for MF, PF and UF
resins. Owned 100% by Dynea Oy, Finland.
Österreichische Novopan-
Holzindustrie GmbH
Leoben-Göss 22 Captive consumption for MF and UF resins.
Belgium
BASF Antwerpen N.V.

Antwerpen 108 Captive consumption for MDI. Owned 100% by
BASF Aktiengesellschaft, Germany.

658.5002 A Page 53
Western European Producers of Formaldehydea (continued)

Annual Capacity
(thousands of
Belgium (continued)
Dynea NV
Gent 115 Captive consumption for MF and UF resins and UFC.
Lambiotte & Cie S.A.

Rulles 54 Mostly merchant sales.
Mepa N.V.
Oudenaarde 60 Mostly captive consumption for MF resins.
Woodchem Europe s.a.

Tertre 158 Captive consumption for MF and UF resins. Owned
100% by A.C.M. Wood Chemicals plc, United
Kingdom.
Denmark
Nordalim A/S
Århus 100 Mostly captive consumption for MF, MUF and UF
resins. Owned 50% by Dynea Oy, Finland.
Finland
Bakelite Oy
Kitee 75 Mostly captive consumption for PF and UF resins.
Owned 100% by RUTGERS Group, Germany.
Dynea Finland Oy
Hamina 85 Captive consumption for MF, PF, RF and UF resins.
France
ATOFINA
Rieux 200 Mostly captive consumption for MF, MUF and UF
resins.
Casco Industrie S.N.C.

Ambarès 54 Mostly captive consumption for MF and UF resins.
Protex International S.A.S.

Château Renault 11 Some captive consumption for MF, PF and UF resins.
Germany
ATOFINA Deutschland GmbH

Leuna 243 Captive consumption for HMTA and MF and UF
resins. Owned 100% by ATOFINA, France.
Bakelite AG
Duisburg 50 Captive consumption for MF, PF and RF resins.

658.5002 B Page 54

Annual Capacity
(thousands of
Germany (continued)
BASF Aktiengesellschaft
Ludwigshafen 1,270 Mostly captive consumption for BDO, TMP,
neopentyl glycol, methyl methacrylate (MMA),
polyacetal resins, chelating agents and MF, PF and
UF resins.
Bayer AG
Krefeld 270 Some captive consumption for MDI and TMP.
Celanese Chemicals Europe GmbH

Frankfurt am Main 23 Formerly the basic chemicals division of Hoechst.
ISP Marl GmbH

Marl 189 Captive consumption for BDO. Owned 100% by
International Specialty Products Inc., United States.
Lausitzer Analytik GmbH

Schwarze Pumpe 40
Methanova AG
Mainz-Mombach 166 Some captive consumption for HMTA and parafor-
maldehyde.
Perstorp Chemicals GmbH

Bruchhausen 166 Mostly captive consumption for pentaerythritol.
Pfleiderer Holzwerkstoffe GmbH & Co. KG

Peiting 36 Captive consumption for UF resins.
Ticona GmbH
Kelsterbach 178 Captive consumption for polyacetal resins. Owned
100% by Celanese Aktiengesellschaft.
Greece
Hadjilucas SA
Chalkis 22 Mostly captive consumption for MUF, PF and UF
resins.
Ireland
Dynea Ireland Ltd.

Marino Point 80 Mostly captive consumption for UF resins. Owned
100% by Dynea Oy, Finland.
Italy
Agrolinz Melamin Italia Srl

Castellanza 120 Some captive consumption for MF and UF resins.
Owned 100% by Agrolinz Melamin GmbH, Austria.

658.5002 C Page 55

Annual Capacity
(thousands of
Italy (continued)
Alder SpA
Trieste 60 Some captive consumption for pentaerythritol and
paraformaldehyde.
Annovati SpA
Torino 20 Some captive consumption for MF resins.
Bakelite Italia S.p.A.

Solbiate Olona 80 Mostly captive consumption for PF resins and
HMTA. Owned 100% by Bakelite AG, Germany.
Chimica Pomponesco SpA

Pomponesco 160 Mostly captive consumption for MF and UF resins.
Fantoni Spa
Osoppo 80 Mostly captive consumption for MF and UF resins.
Farcoll Srl
Filago 110 Mostly captive consumption for MF and UF resins.
Owned 28.8% by Fabbrica Adesivi Resine SpA.
Liri Industriale S.r.l.

Nichelino 30 Some captive consumption for MF, PF and UF resins.
Perstorp SpA
Castellanza 80 Captive consumption for pentaerythritol, DMPA and
UF resins. Owned 100% by Perstorp AB, Sweden.
Polioli SpA
Vercelli 90 Captive consumption for pentaerythritol, TMP and
neopentyl glycol. Owned 55.7% by Fabbrica Adesivi
Resine SpA.
Rescol Castellanza Srl

Castellanza 80 Captive consumption for UF resins.
Sadepan Chimica Srl

Castelseprio 35 Captive consumption for UF resins.
Viadana 400 Mostly captive consumption for MF and UF resins.
Netherlands
Borden Chemical Holland

Botlek-Rotterdam 140 Mostly merchant sales. Owned 100% by Borden
Chemical, Inc., United States.
Caldic Chemie B.V.

Rozenburg 190 Some captive consumption for paraformaldehyde and
HMTA.
Zevenbergen 81 Mostly merchant sales.

658.5002 D Page 56

Annual Capacity
(thousands of
Netherlands (continued)
Du Pont de Nemours (Nederland) B.V.

Dordrecht 95 Mostly captive consumption for polyacetal resins.
Formox® metal oxide process.
Dynea B.V.
Delfzijl 190 Mostly captive consumption for MUF and UF resins.
Norway
Dynea A.S.A.
Chemical Group
Lillestrøm 70 Mostly captive consumption for MF, MUF, PF, PRF
and UF resins. Owned 100% by Dynea Oy, Finland.
Saetre-I-Hurum 115 Some captive consumption for MF and UF resins.
Portugal
Bresfor—Indústria do Formol, S.A.

Gafanha da Nazaré 65 Mostly captive consumption for MUF and UF resins.
Owned 100% by FORESA, Spain.
EuroResinas, Indústrias Químicas, SA

Sines 180 Captive consumption for MF, PF and UF resins.
SOTIMA
Proença a Nova 18 Mostly captive consumption for MF and UF resins.
Spain
Bakelite Ibérica, S.A.

Lantarón 10 Captive consumption for PF resins. Owned 99.31%
by Bakelite AG, Germany.
Derivados Forestales, SA
Sant Celoní 145 Mostly captive consumption for MF, PF and UF
resins and UFC.
FORESA
Caldas de Reyes 100 Captive consumption for MF, MUF, PF and UF
resins.
Forestales Atlanticos
Mugardos 120 Mostly captive consumption for UF resins.
Formol y Derivados, SA
Almusafes 425 Mostly captive consumption for paraformaldehyde
and MF, MUF and PF resins. Owned 100% by
Derivados Forestales, SA.

658.5002 E Page 57

Annual Capacity
(thousands of
Spain (continued)
Polialco, SA
Tortosa 150 Mostly captive consumption for pentaerythritol.
Owned 100% by Derivados Forestales, SA.
Sweden
Casco Products AB
Kristinehamn 110 Mostly captive consumption for MF, PF, RF and UF
resins. Owned 100% by Akzo Nobel AB.
Sundsvall 55 Mostly captive consumption for MF, PF and UF
resins.
Perstorp Specialty Chemicals AB

Formox
Perstorp 300 Mostly captive consumption for pentaerythritol,
neopentyl glycol, DMPA and TMP.
United Kingdom
BIP Ltd.
Oldbury 80 Mostly captive consumption for MF and UF resins.
Borden Chemical UK Ltd.

Cowie 60 Mostly captive consumption for UF resins. Owned
100% by Borden Chemical, Inc., United States.
Peterlee 140 Mostly captive consumption for UF resins.
Egger UK Ltd.
Hexham 60 Mostly captive consumption for UF resins.
Kronospan Ltd.
Wrexham 130 Mostly captive consumption for MF and UF resins.
Synthite Ltd.
Mold 225 Some captive consumption for paraformaldehyde.
Total 8,669

658.5002 F Page 58
SALIENT STATISTICS
The following table presents Western European supply/demand for 37% formaldehyde:
Western European Supply/Demand for 37% Formaldehyde

Annual Operating
Capacity Rate
1983 6,098 62 3,757 90 83 3,763
1985 6,014 66 3,991 98 91 3,998
1990 6,781 72 4,899 167 178 4,888
1994 7,639 73 5,554 254 226 5,582

1995 7,677 73 5,596 265 146 5,715
1999 8,325 82 6,846 365 286 6,925

2003 8,669 85 7,340 252 242 7,217
CONSUMPTION
The following table presents Western European consumption of 37% formaldehyde:
Western European Consumption of 37% Formaldehyde

Growth Rate,
UF Resins 2,950 40.9 3,340 2.5

PF Resins 680 9.4 750 2.0
MF Resins 612 8.5 712 3.1
BDO 500 6.9 555 2.1
MDI 405 5.6 492 4.0
Pentaerythritol 350 4.8 377 1.5
TMP 165 2.3 184 2.2
HMTA 115 1.6 118 0.5
Neopentyl Glycol 105 1.5 134 5.0
Other 835 11.6 950 2.6
Total 7,217 100% 8,194 2.6%

658.5002 G Page 59
The following table presents Western European consumption of 37% formaldehyde by country:
Western European Consumption of 37% Formaldehyde

by Country—2003
Quantity
(thousands of
metric tons) Percent
Germany 2,436 33.8

Italy 949 13.2
Spain 876 12.1
Benelux 837 11.6
United Kingdom 472 6.5
France 436 6.0
Portugal 273 3.8
Austria 253 3.5
Sweden 241 3.3
Finland 141 2.0
Norway 114 1.6
Ireland 77 1.1
Denmark 74 1.0
Switzerland 24 0.3
Greece 14 0.2
Total 7,217 100%
Urea-, Phenol- and Melamine-Formaldehyde Resins
The following table presents Western European consumption of formaldehyde resins:
Western European Consumption of Formaldehyde Resins—2003

(percent)
UF Resins PF Resins MF Resins
Wood Adhesives 84 17 24
Laminates -- 16 57
Molding Compounds 4 14 3
Insulation -- 24 --
Surface Coatings 2 -- 5
Other 10 29 11
Total 100% 100% 100%
Urea-formaldehyde (UF) resins are the largest application for formaldehyde in Western Europe. In 2003,
formaldehyde resins accounted for nearly 59% of total Western European demand, consuming 4,242
thousand metric tons of formaldehyde. The manufacture of particleboard and other wood panels accounts
for nearly all demand for UF resins in Western Europe, while phenol-formaldehyde (PF) resins are used
in a wider variety of applications. The largest uses for melamine-formaldehyde (MF) resins in Western
Europe are laminates and wood adhesives.

658.5002 H Page 60
Polyacetal Resins
The following table presents Western European consumption of polyacetal resins:
Western European Consumption of

Polyacetal Resins—2003
(percent)
Industrial Applications 13
Consumer Goods 12
Other 20
Total 100%
Ticona and Ultraform in Germany and Du Pont in the Netherlands produce polyacetal resins.
Electrical/electronic applications include mechanical parts in electrical household appliances. Industrial
applications constitute mainly bearings and gears. The fastest growing applications are
electrical/electronic, consumer goods (furniture, zippers and buckles) and plumbing/irrigation/hardware
(sprinklers, faucets and valves).
1,4-Butanediol
The following table presents Western European consumption of 1,4-butanediol (BDO):

1,4-Butanediol—2003
(percent)
Tetrahydrofuran 33
γ-Butyrolactone 16
Polyurethanes 14
Other 6
Total 100%
Consumption of formaldehyde for the production of various acetylenic chemicals via BDO was 500
thousand metric tons in 2003. In Western Europe, only two of four 1,4-butanediol (BDO) producers use
formaldehyde; BASF and ISP Marl produce BDO from formaldehyde in Germany while BASF in
Belgium and Lyondell Chemical in the Netherlands use n-butane (via maleic anhydride) and propylene
oxide, respectively.
Most BDO is used to produce THF and PBT resins. THF is used as a solvent and as a raw material for the
production of PTMEG. The fastest-growing uses of PTMEG are spandex fibers and thermoplastic
elastomers. The THF solvent market is expected to show little growth in the near future. PBT resins are

658.5002 I Page 61
used mainly in electrical/electronic and automotive markets. γ-Butyrolactone is converted to pyrrolidone

derivatives, mainly 2-pyrrolidone, N-methyl-2-pyrrolidone, N-vinyl-2-pyrrolidone and polyvinyl-
pyrrolidone.
The following table presents Western European consumption of methylenebis(4-phenyl isocyanate)

(MDI):
Western Europe Consumption of MDI—2003

(percent)
Polyurethane Foam
Semirigid Polyurethane Foam 6
Other 31
Total 100%
Methylenebis(4-phenyl isocyanate) (MDI) is produced by four producers at nine locations in Western

Europe; the largest producer is Bayer, followed by Dow, Huntsman and BASF.
Construction, appliances and packaging account for most consumption of rigid polyurethane foam; its
main use is as an insulation material. Nonfoam polyurethane applications include adhesives, coatings, cast
elastomers, thermoplastic elastomers and microcellular products, including both non–reaction injection-
molding (RIM) and RIM-processed products. MDI is also used in nonpolyurethane applications such as
foundry resins. Growth in demand for rigid foams will be slightly slower than for nonfoam applications,
particularly adhesives, thermoplastic elastomers and RIM products.
Pentaerythritol
The following table presents Western European consumption of pentaerythritol:
Western European Consumption

of Pentaerythritol—2003
(percent)
Alkyd Resins 58
Rosin/Tall Oil Esters 10
Pentaerythritol Tetranitrate 4
Other 6
Total 100%

658.5002 J Page 62
Four companies in Western Europe produce pentaerythritol; Perstorp is the largest producer, followed by
Polialco and Polioli. The fastest-growing applications for pentaerythritol are neopolyol esters for
lubricants and rosin and tall oil esters.
Trimethylolpropane
The following table presents Western European consumption of trimethylolpropane (TMP):

Trimethylolpropane—2003
(percent)
Coating Resins 65
Other 6
Total 100%
Four Western European companies produce TMP; current annual capacity is 112 thousand metric tons.
Bayer and Perstorp are the largest producers, each accounting for 36% of capacity, followed by BASF
and Polioli with 18% and 10%, respectively. TMP is consumed for coating resins for use in alkyd and
polyester surface coatings.
The following table presents the major Western European producers of hexamethylenetetramine
(HMTA):
Major Western European Producers of Hexamethylenetetramine

Annual Capacity
Company and (thousands of
Plant Location metric tons)
Germany
ATOFINA Deutschland GmbH

Leuna 10
Methanova GmbH
Mainz-Mombach 12
Italy
Bakelite Italia S.p.A.

Solbiate Olona 6

658.5002 K Page 63
Major Western European Producers of

Hexamethylenetetramine (continued)
Annual Capacity
Netherlands
Caldic Chemie B.V.

Rozenburg 10
United Kingdom
Lambson Fine Chemicals

Castleford na
Total >38
All Western European producers of HMTA are captive in formaldehyde with the exception of Lambson
Fine Chemicals. HMTA, a white, hygroscopic, crystalline solid, is used in a variety of products, but its
major uses are in PF resins and in the production of explosives.
Other
Other large applications for formaldehyde include paraformaldehyde, chelating agents, pyridines, textile
chemicals, controlled release fertilizers and others.
The following table presents Western European producers of paraformaldehyde:
Western European Producers of Paraformaldehyde

Annual Capacity
Germany
Methanova GmbH
Mainz-Mombach 30
Italy
Alder SpA
Trieste 7
Netherlands
Caldic Chemie B.V.

Rozenburg 30

658.5002 L Page 64
Western European Producers of Paraformaldehyde (continued)

Annual Capacity
Spain
Formol y Derivados, SA
Almusafes 105
United Kingdom
Synthite Ltd.
Mold 10
Total 182
SOURCE: 2003 Directory of Chemical Producers—Europe,

SRI International.
All Western European producers of paraformaldehyde are captive in formaldehyde.
PRICE
The following table presents average German contract prices for 100% formaldehyde:
Average German Contract Prices for 100% Formaldehyde

DM per Dollars per Exchange Rate
Metric Ton Metric Ton (DM per dollar)
1982 740 305 2.43

1983 700 275 2.55
1984 800 281 2.85
1985 830 282 2.94

1986 na -- --
1987 640 356 1.80
1988 700 398 1.76
1989 720 383 1.88
1990 690 426 1.62

1991 650 392 1.66
1992 590 378 1.56
1993 610 370 1.65
1994 1,300 802 1.62
1995 1,030 720 1.43

1996 850 567 1.50
1997 870 503 1.73
1998 700 398 1.76
1999 550 304 1.81

658.5002 M Page 65
Average German Contract Prices for 100% Formaldehyde (continued)

Euros per Dollars per Exchange Rate
Metric Ton Metric Ton (euros per dollar)
2000 515 472 1.09

2001 616 550 1.12
2002 463 437 1.06
2003 568 624 0.91
SOURCES: (A) CEH estimates (data for PRICES).
(B) International Financial Statistics, International

Monetary Fund (data for EXCHANGE RATE).
Formaldehyde prices are closely linked to methanol feedstock and generally follow changes in methanol
pricing. In Western Europe, most formaldehyde is traded regionally over small distances because of
problems associated with stability during transport. Liquid formaldehyde is typically transported within a
radius of approximately 320 kilometers of production and, as a result, European prices vary accordingly
by country and are unofficially set on a quarterly contract basis. Formaldehyde prices also depend on the
end-use application and customer size. Prices in a given country also depend on the number of producers;
for example, Italy has many producers and high competition so prices are relatively low.
TRADE
Western European extraregional trade in formaldehyde generally accounts for approximately 5% of

production because of high shipping costs. Western European intraregional trade is significant, but is
restricted to border areas, such as Spain exporting to southern France, Benelux exporting to northern
France and northern Italy exporting to neighboring countries.
JAPAN
PRODUCING COMPANIES
The following table presents Japanese producers of formaldehyde:
Japanese Producers of Formaldehydea

Annual Capacity
(thousands of
Asahi Kasei Corporation

Kurashiki, Okayama Prefecture 81 Captive consumption for polyacetal resins.
BASF Idemitsu Co., Ltd.

Ichihara, Chiba Prefecture 36 Captive consumption for BDO. Owned 67% by
BASF Aktiengesellschaft, Germany.
Daicel Chemical Industries Ltd.

Fuji, Shizuoka Prefecture 210 Some captive consumption by subsidiary Poly-
plastics Company, Ltd. for polyacetal resins.

658.5002 N Page 66
Japanese Producers of Formaldehydea (continued)

Annual Capacity
(thousands of
Dainippon Ink and Chemicals, Inc.

Ichihara, Chiba Prefecture 18 Mostly captive consumption for MF, PF and UF
resins.
Gun Ei Chemical Industry Co., Ltd.

Koga-gun, Shiga Prefecture 24 Mostly captive consumption for PF and UF
Takasaki-shi, Gumma Prefecture 25 resins.
Iwakura Chemical Industry Company K.K.

Tomakomai, Hokkaido Prefecture 25 Some captive consumption for UF resins.
Japan Formalin Company, Inc.

Ichihara, Chiba Prefecture 36 Some captive consumption for MF and PF resins
by Dainippon Ink and Chemicals. Owned 50% by
Dainippon Ink and Chemicals and 50% by
Mitsubishi Gas Chemical.
Mikawa, Ishikawa Prefecture 29 Some captive consumption for PF and UF resins
by Dainippon Ink and Chemicals.
Koei Chemical Company, Ltd.

Sodegaura, Chiba Prefecture 66 Captive consumption for pentaerythritol and
TMP.
Kuraray Co., Ltd.

Kashima, Ibaraki Prefecture 57 Some captive consumption for isoprene.
Mitsubishi Gas Chemical Company, Inc.

Niigata, Niigata Prefecture 60 Mostly captive consumption for HMTA and
paraformaldehyde.
Yokkaichi, Mie Prefecture 38 Mostly captive consumption for polyacetal resins.
Mitsui Chemicals, Inc.

Omuta, Fukuoka Prefecture 30
Takaishi, Osaka Prefecture 102 Mostly captive consumption for paraformalde-
hyde, pentaerythritol and MF and UF resins.
Nippon Kasei Chemical Co., Ltd.

Iwaki, Fukushima Prefecture 103 Mostly captive consumption for HMTA and MF
and UF resins.
Nippon Polyurethane Industry Co., Ltd.

Shunan, Yamaguchi Prefecture 13 Captive consumption for MDI.
Oshika Formalin Co., Ltd.

Mizushima, Okayama Prefecture 43 Mostly captive consumption by part owner (50%)
Mitsubishi Gas Chemical for neopentyl glycol
and TMP.
Polyplastics Company, Ltd.

Fuji, Shizuoka Prefecture 300 Mostly captive consumption for polyacetal resins.
Owned 55% by Daicel Chemical Industries Ltd.
Sansui Chemical Co., Ltd.

Sakai, Osaka Prefecture 30 Owned 50% by Nippon Kasei Chemical Co., Ltd.

658.5002 O Page 67
Japanese Producers of Formaldehydea (continued)

Annual Capacity
(thousands of
Shimonoseki Mitsui Chemicals, Inc.

Shimonoseki, Yamaguchi Prefecture 83 Some captive consumption for MF and UF resins.
Owned 100% by Mitsui Chemicals, Inc.
Sumitomo Bakelite Company, Ltd.

Fujieda, Shizuoka Prefecture 30 Mostly captive consumption for MF, PF and UF
resins.
Sumitomo Seika Chemicals Co., Ltd.

Himeji, Hyogo Prefecture 107 Mostly merchant sales.
Yutaka Chemical Corporation

Mizushima, Okayama Prefecture 36 Some captive consumption for neopentyl glycol
and TMP by 50% owner, Mitsubishi Gas
Chemical.
Shizuoka, Shizuoka Prefecture 24 Captive consumption for MF, PF and UF resins
by 50% owner, Honen Corporation.
Total 1,606
SOURCE: CEH estimates based on the World Petrochemicals Program, SRI Consulting.
SALIENT STATISTICS
The following table presents Japanese supply/demand for 37% formaldehyde:
Japanese Supply/Demand for 37% Formaldehyde

Annual Operating
Capacity Rate Apparent
1983 1,712 64 1,089 -- 1.0 1,088

1984 1,682 69 1,166 -- 1.0 1,165
1985 1,700 71 1,202 -- 1.0 1,201

1986 1,712 70 1,201 -- 0.6 1,200
1987 1,712 76 1,296 -- 0.6 1,295
1988 1,766 77 1,361 -- 0.2 1,361
1989 1,796 78 1,397 -- 0.4 1,397
1990 1,852 78 1,444 -- 0.4 1,444

1991 1,810 73 1,319 -- 0.5 1,318
1992 1,795 72 1,284 neg 0.8 1,283
1993 1,795 70 1,260 neg 0.9 1,259
1994 1,795 73 1,304 neg 0.8 1,303

658.5002 P Page 68
Japanese Supply/Demand for 37% Formaldehyde (continued)

Annual Operating
Capacity Rate Apparent
1995 1,778 76 1,351 neg 0.6 1,350

1996 1,778 74 1,310 0.1 0.5 1,310
1997 1,760 79 1,383 0.2 0.7 1,382
1998 1,760 78 1,377 neg 0.7 1,376
1999 1,748 79 1,387 neg 0.9 1,386
2000 1,748 80 1,396 neg 1.0 1,395
2003 1,606 85 1,370 0.5 1.0 1,370
SOURCES: (A) Yearbook of Chemical Industries Statistics, Ministry of International Trade and
Industry (data for ANNUAL CAPACITY and PRODUCTION for 1983-1990).
(B) Japan Tariff Association (data for IMPORTS and EXPORTS for 1983-1999).
(C) CEH estimates based on World Petrochemicals Program, SRI Consulting (all
other data).
CONSUMPTION
The following table presents Japanese consumption of 37% formaldehyde:
Japanese Consumption of 37% Formaldehyde

Growth Rate,

PF Resins 195 14.4 201 0.6
MDI 112 8.3 120 1.4
MF Resins 100 7.4 98 –0.4
UF Resins 77 5.7 65 –3.3
Pentaerythritol 75 5.5 75 0
BDO 37 2.7 40 1.6
TMP 37 2.7 38 0.5
HMTA 31 2.3 32 0.6
Other 200 14.8 205 0.5
Total 1,354 100% 1,388 0.5%

658.5002 Q Page 69
The following table presents historical Japanese consumption of 37% formaldehyde:
Historical Japanese Consumption of 37% Formaldehyde

Polyacetal UF PF Penta- Para- MF
Resins Resins MDI Resins erythritol formaldehyde Resins Othera Total
1991 354 265 70 220 112 96 100 255 1,472

1992 348 239 73 224 116 87 94 250 1,431
1993 339 222 84 217 102 87 91 255 1,397
1994 378 219 90 214 99 88 90 260 1,438
1995 417 205 112 220 92 88 89 250 1,473

1996 399 209 105 233 89 89 88 245 1,457
1997 456 189 116 246 92 88 97 245 1,529
1998 402 141 98 223 87 88 91 240 1,370
1999 414 132 109 221 86 89 95 230 1,376
2000 408 117 109 237 81 89 101 225 1,367
a. Includes HMTA, neopentyl glycol, TMP, isoprene and chelating agents.
Polyacetal Resins
The following table presents Japanese consumption of polyacetal resins:
Japanese Consumption of Polyacetal Resins—2003

(percent)
Industrial Applications and Consumer Goods 9
Other 17
Total 100%
Three Japanese companies produce polyacetal resins with an annual capacity of 164 thousand metric tons.
Polyplastics is the major producer, accounting for 61% of total capacity. Production and consumption of
polyacetal resins are expected to remain stable in the next five years.
Urea-, Phenol- and Melamine-Formaldehyde Resins
The following table presents Japanese consumption of formaldehyde resins:

658.5002 R Page 70
Japanese Consumption of Formaldehyde Resins—2003

(percent)
UF Resins PF Resins MF Resins
Wood Adhesives 89 16 75
Molding Compounds 8 18 6
Surface Coatings -- -- 14
Foundry Materials -- 11 --
Laminates -- 11 2
Other 3 44 3
Total 100% 100% 100%
Thermoset resins accounted for nearly 28% of Japanese consumption of formaldehyde in 2003. Increased
reliance on imported plywood and particleboard from Southeast Asia has dramatically reduced
consumption of formaldehyde for wood adhesives. Additionally, sluggish construction activity as a result
of the economic slowdown has slowed demand for wood products.
The following table presents Japanese consumption of methylenebis(4-phenyl isocyanate) (MDI):
Japanese Consumption of MDI—2003

(percent)
Polyurethane Foam
Semirigid Polyurethane Foam 3
Nonfoam Applications 24
Pure MDI 24
Total 100%
Three Japanese companies produce MDI; current annual capacity is 267 thousand metric tons. Nippon
Polyurethane is the largest producer, accounting for 52% of capacity. The largest use for MDI is rigid
polyurethane foam for insulation. Nonfoam applications include particleboard binders, adhesives/sealants,
elastomers and surface coatings. Pure MDI is used in such applications as synthetic leathers, shoe soles
and spandex fibers.
Paraformaldehyde
Mitsubishi Gas Chemical and Mitsui Chemicals produce paraformaldehyde in Japan. Paraformaldehyde is
used in PF and UF resins and surface coatings.

658.5002 S Page 71
Pentaerythritol
The following table presents Japanese consumption of pentaerythritol:
Japanese Consumption of Pentaerythritol—2003

(percent)
Alkyd Resins 65
Other 15
Total 100%
Koei Chemical and Mitsui Chemicals produce pentaerythritol; Koei Chemical is the largest producer,
accounting for 71% of Japanese capacity. Nearly one-half of pentaerythritol production is exported and
therefore is influenced by demand in overseas markets.
Other
1,4-Butanediol
The following table presents Japanese consumption of 1,4-butanediol (BDO):
Japanese Consumption of 1,4-Butanediol—2003

(percent)
Tetrahydrofuran 50
Other 7
Total 100%
Idemitsu BASF is the sole Japanese producer of BDO from formaldehyde. Its annual capacity is 25
thousand metric tons.
Trimethylolpropane and neopentyl glycol
Both Koei Chemical and Mitsubishi Gas Chemical produce trimethylolpropane (TMP); Mitsubishi Gas
Chemical is the sole Japanese producer of neopentyl glycol. TMP is used primarily in coating resins for
alkyd, polyester and urethane surface coatings. Approximately 85% of neopentyl glycol is consumed in
coating resins for alkyd, polyester and urethane surface coatings and unsaturated polyester resins for
fiber-reinforced plastics. Other uses include plasticizers, neopolyol esters for lubricants and neopentyl
glycol functional monomers in radiation curing.

658.5002 T Page 72
The following table presents Japanese producers of hexamethylenetetramine (HMTA):
Japanese Producers of Hexamethylenetetramine

Annual Capacity
(thousands of
Company and Plant Location metric tons)
Mitsubishi Gas Chemical Company, Inc.

Niigata, Niigata Prefecture 8
Mitsui Chemicals, Inc.

Mobara, Chiba Prefecture 8
Nippon Kasei Chemical Co., Ltd.

Iwaki, Fukushima Prefecture 6
Total 22
All Japanese producers of HMTA are captive in formaldehyde. Most HMTA is consumed to manufacture
PF resins, explosives and rubber accelerators.
Miscellaneous
Other applications for formaldehyde include cis-polyisoprene, chelating agents, paper and textile
chemicals and FAMSO (formaldehyde dimethyl mercaptan sulfur oxide), a drug intermediate. FAMSO is
used to produce L-dopa, which is used in the treatment of Parkinson’s disease.
PRICE
The following table presents Japanese unit sales values for formaldehyde:
Japanese Unit Sales Values for Formaldehydea

Yen per Dollars per Exchange Rate
Kilogram Metric Ton (yen per dollar)
1977 34 127 268

1978 32 152 211
1979 34 155 219
1980 53 234 226
1985 37 156 237
1990 28 193 145

1991 30 223 135
1992 27 213 127
1993 26 234 111
1994 27 265 102

658.5002 U Page 73
Japanese Unit Sales Values for Formaldehydea (continued)

Yen per Dollars per Exchange Rate
Kilogram Metric Ton (yen per dollar)
1995 29 309 94
1996 24 220 109
1997 25 207 121
1998 24 183 131
1999 22 190 116
2003 25 215 117 b
a. Unit sales values are for an approximately 40% formaldehyde solution.
b. Datum is for January through October.
SOURCES: (A) Yearbook of Chemical Industries Statistics, Ministry of

International Trade and Industry (data for YEN PER
KILOGRAM).
(B) CEH estimates (data for DOLLARS PER METRIC TON).
(C) International Financial Statistics, International Monetary

Fund (data for EXCHANGE RATE).
TRADE
The following table presents Japanese trade in formaldehyde and paraformaldehyde.
Japanese Trade in Formaldehyde and Paraformaldehyde

Formaldehydea Paraformaldehydeb
Imports Exports Imports Exports
1991 neg 0.5 3.9 3.0

1992 neg 0.8 4.4 3.7
1993 neg 0.9 4.2 4.1
1994 neg 0.8 4.5 4.4
1995 neg 0.6 7.0 3.5

1996 0.1 0.5 7.5 3.4
1997 0.2 0.7 9.7 3.3
1998 neg 0.7 7.9 2.0
1999 neg 1.0 8.2 2.6
2000 neg 0.7 13.2 1.7

2001 neg 0.9 14.7 0.9
2002 0.1 1.1 17.1 0.9
2003c 0.2 0.5 7.9 0.9
a. Trade is reported under code # 2912.11.000.
b. Trade is reported under code # 2912.60.000.
SOURCE: Japan Tariff Association.

658.5002 V Page 74
The following table presents Japanese imports of paraformaldehyde by country of origin in 2002:
Japanese Imports of Paraformaldehyde

by Country of Origin—2002
Quantity
Country of (thousands of
Origin metric tons) Percent
Spain 8.2 48
Taiwan 6.0 35
United States 1.5 9
Netherlands 1.4 8
Other neg neg
Total 17.1 100%
The following table presents Japanese exports of paraformaldehyde by country of destination in 2002:
Japanese Exports of Paraformaldehyde

by Country of Destination—2002
Quantity
Country of (thousands of
Destination metric tons) Percent
Republic of Korea 0.5 56

Thailand 0.2 22
Indonesia 0.1 11
Other 0.1 11
Total 0.9 100%
OTHER REGIONS
SALIENT STATISTICS
The following table presents supply/demand for 37% formaldehyde in other regions:

658.5002 W Page 75
Supply/Demand for 37% Formaldehyde in Other Regions—2003

Number of Annual
Major Capacity
Producers (year-end) Production Imports Exports Consumption
Central and Eastern

Europe
Bulgaria 1 110 50 0 0 50
Czech Republic 1 88 85 0 0 85
Hungary 2 70 65 5 0 70
Lithuania 1 120 24 0 0 24
Poland 4 470 460 0 0 460
Romania 1 300 73 0 2 71
Russiaa 10 1,530 520 0 0 520
Slovakia 1 210 200 0 5 195
Slovenia 1 140 70 0 0 70
Ukraine 1 137 30 0 0 30
Serbia 3 111 50 0 0 50
Total 26 3,286 1,627 5 7 1,625
Africa
Algeria 1 17 10 0 0 10
Egypt 1 12 6 0 0 6
South Africa 3 157 140 0 0 140
Tunisia 1 12 4 3 0 7
Total 6 198 160 3 0 163
Middle East
Iran 3 163 158 0 5 153

Israel 1 48 33 0 2 31
Saudi Arabia 2 176 135 0 53 82
Turkey 5 448 340 60 0 400
Total 11 835 666 60 60 666
Asia
China 36 5,878 3,680 0 0 3,680

India 23 482 263 0 0 263
Indonesia 28 1,203 937 0 0 937
Korea, Republic of 13 715 647 0 0 647
Malaysia 13 626 418 0 3 415
Pakistan 4 56 53 0 0 53
Philippines 1 10 9 0 0 9
Singapore 1 90 80 0 15 65
Taiwan 4 530 297 0 20 277
Thailand 5 270 202 0 1 201
Otherb 1 2 2 18 0 20
Total 129 9,862 6,588 18 39 6,567

658.5002 X Page 76
Supply/Demand for 37% Formaldehyde in Other Regions—2003 (continued)

Number of Annual
Major Capacity
Producers (year-end) Production Imports Exports Consumption
Oceania
Australia 4 279 134 0 0 134

New Zealand 2 163 95 0 0 95
Total 6 442 229 0 0 229
Total 178 14,623 9,270 86 106 9,250
a. Includes Belarus.
b. Includes Cambodia, Bangladesh, Laos, Sri Lanka, Myanmar, Vietnam and the Democratic People’s Republic of
Korea.
CONSUMPTION
The following table presents consumption of 37% formaldehyde in other regions:
Consumption of 37% Formaldehyde in Other Regions

Growth Rate,
Eastern Europe
UF Resins 1,175 73 1,400 3.6

HMTA 125 8 135 1.6
PF Resins 100 6 130 5.4
MF Resins 55 3 76 6.7
Other 50 3 70 7.0
Total 1,625 100% 1,961 3.8%
Africa
UF Resins 134 82 154 2.8

PF Resins 21 13 26 4.4
MF Resins 5 3 6 3.7
Other 3 2 4 5.9
Total 163 100% 190 3.1%

658.5002 Y Page 77
Consumption of 37% Formaldehyde in Other Regions (continued)

Growth Rate,
Middle East
UF Resins 500 75 650 5.4

MF Resins 80 12 100 4.6
PF Resins 20 3 30 8.4
Other 21 3 25 3.5
Total 666 100% 860 5.2%
Other Asia
UF Resins 3,844 58 4,609 3.7

PF Resins 558 9 660 3.4
MF Resins 414 6 600 7.7
Polyacetal Resins 394 6 600 8.8
HMTA 150 2 175 3.1
MDI 123 2 266 16.7
Other 839 13 1,000 3.6
Total 6,567 100% 8,200 4.5%
Oceania
UF Resins 129 56 150 3.1

MF Resins 70 31 88 4.7
PF Resins 30 13 37 4.3
Total 229 100% 275 3.7%
BIBLIOGRAPHY
Chemical Economics Handbook—The following CEH marketing research reports and product reviews
contain information that is pertinent to the subject of this marketing research report:
Acetylene
Alkyd/Polyester Surface Coatings
Amino Resins
1,4-Butanediol
Chelating Agents
Controlled Release Fertilizers
Diisocyanates and Polyisocyanates
Melamine
Methanol
Neopentyl Polyhydric Alcohols

658.5002 Z Page 78
Oxo Chemicals
Phenolic Resins
Polyacetal Resins
Polyisoprene Elastomers
Pyridine and Pyridine Bases
Thermoplastic Polyester Engineering Resins
Process Economics Program—The following Process Economics Program report contains more detailed
information on the manufacturing processes, process design and process economics of the chemicals
discussed in this report. Address inquiries concerning this information to the Process Economics Program,
SRI Consulting, Menlo Park, California 94025.
Formaldehyde, Report No. 23A, December 1978.
World Petrochemicals Program—Worldwide data on formaldehyde supply and demand are included in
the Methanol and Derivatives segment. Address inquiries concerning this information and other World
Petrochemicals reports to SRI Consulting, Menlo Park, California 94025.

SRI CEH Formaldehyde

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SRI CEH Formaldehyde

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January 2004 Formaldehyde

CEH Marketing Research Report

 2004 by the Chemical Economics Handbook—SRI International

Manufacturing Processes ......................................................................................................................... 9

Supply and Demand by Region ............................................................................................................... 10

 2004 by the Chemical Economics Handbook—SRI International

TABLE OF CONTENTS (continued)

 2004 by the Chemical Economics Handbook—SRI International

World Supply/Demand for 37% Formaldehyde—2003

Total 33,028 24,298 74% 370 413 24,025

SOURCE: CEH estimates.

 2004 by the Chemical Economics Handbook—SRI International

World Consumption of 37% Formaldehyde by End Use

UF Resins 10,971 45.7 12,818 45.6 3.2

Total 24,025 100% 28,113 100% 3.2%

a. Includes paraformaldehyde, chelating agents, trimethylolpropane, controlled-release fertilizers, neopentyl

SOURCE: CEH estimates.

 2004 by the Chemical Economics Handbook—SRI International

The following table presents world consumption of 37% formaldehyde by region:

World Consumption of 37% Formaldehyde by Region

Total 24,025 100% 28,113 100% 3.2%

SOURCE: CEH estimates.

● Stricter environmental regulations affecting wood logging

● Availability of raw wood resources

● Increased substitution of formaldehyde-based wood adhesives in some applications, mainly in the

● Increased environmental concern over formaldehyde emissions

 2004 by the Chemical Economics Handbook—SRI International

SOURCE: CEH estimates.

 2004 by the Chemical Economics Handbook—SRI International

 2004 by the Chemical Economics Handbook—SRI International

SILVER CATALYST PROCESSES

The silver catalyst process is a combination oxidation-dehydrogenation and is represented as follows:

METAL OXIDE PROCESSES

CH3 OH + 1/2 O2 HCHO + H O

 2004 by the Chemical Economics Handbook—SRI International

SUPPLY AND DEMAND BY REGION

 2004 by the Chemical Economics Handbook—SRI International

Applications of Formaldehyde (continued)

Consumer goods Small appliances (mixers and Consumption is dependent on discretion-

Molding compounds Dinnerware, circuit breakers, MF molding compounds possess excellent

 2004 by the Chemical Economics Handbook—SRI International

Applications of Formaldehyde (continued)

Pentaerythritol tetranitrate Detonators, explosives and

Polyurethane elastomers Automotive (wheels, bumpers, Consumption is dependent on construction

Polybutylene terephtha- Automotive (electrical/ Competes with polycyclohexylene di-

 2004 by the Chemical Economics Handbook—SRI International

Applications of Formaldehyde (continued)

SOURCE: CEH estimates.

The following table presents U.S. producers of formaldehyde:

U.S. Producers of Formaldehydea

Borden Chemical, Inc.

Capital Resin Corporation

D.B. Western, Inc.

 2004 by the Chemical Economics Handbook—SRI International

U.S. Producers of Formaldehydea (continued)

Dynea USA, Inc.

Georgia-Pacific Resins, Inc.

GEO Specialty Chemicals, Inc.

Perstorp Polyols, Inc.

Wright Chemical Corporation

 2004 by the Chemical Economics Handbook—SRI International

SOURCE: CEH estimates.

 2004 by the Chemical Economics Handbook—SRI International

The following table presents U.S. formaldehyde capacity by region: