IHS CHEMICAL MAGFORUM 2016

© 2016 IHS. ALL RIGHTS RESERVED.

MAGFORUM 2016

IHS Chemical

Flame Retardant & Chemical Markets

IHS CHEMICAL

Samantha Wietlisbach,

Principal Analyst

IHS Chemical

Zürich

+41 44 283 6336

[email protected]

mailto:[email protected]


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Flame Retardant & Chemical Markets

5


• Clarify terms DBM, CCM, FM

• Global capacity MgO

• Regional and end use consumption

Non - Refractory Magnesia

• MgO CCM supply, demand and outlook

• Magnesium hydroxide applications

• Focus on flame retardants

• Magnesium chloride and sulfate

• Conclusions

A global picture of MgO consumption and

applications, plus 5 year outlook

© 2016 IHS. ALL RIGHTS RESERVED. 6


DBM, CCM, Fused magnesia?

Magnesium Oxide - Types

Refractory Magnesia Non-Refractory

Magnesia

CCM

DBM

Fused

Magnesia


Magnesium Oxide

7


World total capacity magnesium oxide DBM, CCM, fused magnesia - 2015

China 65%

EMEA 24%

Other Asia 4%

North America 3%

South America 2%

Japan 2%

Total capacity ca 17 mt in 2015


Magnesium Oxide

8


World consumption of magnesium oxide by end use - 2015

Refractory Use 80%

Magnesium Chemicals and Metal

8%

Agricultural 6%

Environmental 2%

Construction 1%

Manufacturing / Pharmaceutical /

Food / other 3%

Refractory Use – 80% Non - Refractory Use – 20%



CCM

Magnesium Oxide

Non-refractory

Kieserite or

other minerals

Magnesium

sulfate

Magnesite

or other minerals Seawater Brines

H2SO4 Magnesium

Chloride

Magnesium

Hydroxide

evaporation

Calcined

dolomite or lime

slurry

HCl

Magnesium Oxide (CCM) and Chemicals Flowchart

Thermal decomposition

calcination

Magnesium

Carbonate CO2

Brucite

mineral


Western European capacity for MgO equivalents

0

200

400

600

800

1000

1200

1400

1600

MgO MgSO4 MgCl2 Mg(OH)2 MgCO3

recycled

seawater

brine

mineral

10


magnesium oxide equivalents capacity by source- 2015

magnesium oxide equivalents ca 2.1 million metric tons

kt


Magnesium Oxide – non-refractory use

11


World consumption of CCM by end use - 2015

Magnesium Metal and Chemicals

40%

Agricultural 29%

Environmental 9%

Construction 6%


Food / other 16%

Total consumption ca 2.2 mt in 2015


Magnesium oxide non-refractory consumption

0

500

1000

1500

2000

2500

3000

2013 2015 2020

Manufacturing /Pharmaceutical / Food / other

Construction

Environmental

Agricultural

Magnesium Metal andChemicals

12


Total CCM forecast – World 2020

kt



Environmental +2.8%

Agriculture +1-2%

Manufacturing +3%

Magnesium oxide non-refractory – global demand

outlook - 2020

Chemicals + 2-3%

Increase 2.7%

AAGR

2015 - 2020


Other magnesium

chemicals

14


Magnesium chloride

Magnesium sulfate

Magnesium hydroxide

Demand for magnesium

chemicals



45% of magnesium hydroxide in

Western Europe is derived from

seawater

Magnesium hydroxide


Magnesium Hydroxide Consumption

Environmental 60.0%

Chemicals 21.1%

Flame Retardants 9.1%

Pulp and Paper 3.2%

Pharmaceutical / Other 8.3%

16


World consumption of magnesium hydroxide by end use - 2015

Total ca 0.8 million metric tons as MgO equivalent



Flame Retardants


Flame Retardants

0

200

400

600

8002015 2018

Source: IHS © 2016 IHS

kt

18


World consumption of flame retardants by region

Total volume ca 2.3 mt in 2015


Flame Retardants

19


World consumption of flame retardants by region and value - 2015

China 28%

EMEA 22%

North America 20%

South America 2%

Japan 10%

Other Asia 18%

Ca 6 billion dollars


Flame Retardants

20


World consumption of flame retardants by type - 2015

Aluminum Trihydroxide

36%

Magnesium Hydroxide

2%

Brominated 16%

Organophosphorus 15%

Chlorinated 14%

Antimony Oxides 6%

Other 11%

Total 2.3 million metric tons



Flame Retardants using chemical interaction

Chemical interaction

Chlorinated

Brominated

Organo-phosphorus

Brominated flame retardants can be used in the most different applications

These groups of flame retardants accounted for about 45% total volume in 2015



Flame Retardants using thermal quenching

Thermal quenching

Aluminum trihydroxide

(ATH)

Magnesium Hydroxide

(MDH)

ATH is the most frequently used flame retardant in the world.

• ATH products on the market are of

four types:

• Coarse—40-80 microns

• Ground—2.5-20 microns

• Precipitated—0.8-2.5 microns,

average price is higher than

ground grade

• Surface treated—price is higher

than precipitated type

• For low-cost applications,

magnesium hydroxide flame

retardants are produced

from natural brucite.

• For high performance

applications withloadings up

to 60%, synthetic

magnesium hydroxide

products that are derived

from seawater are preferred.

These groups of flame retardants accounted for about 38% total volume in 2015


Magnesium oxide flame retardants

23

Presentation Name / Month 2016


Magnesium Hydroxide

(MDH)

Mg(OH)2

MgO + H2O

PVC or polyolefin compounding and

cables

At temperatures not permissible for ATH



Price comparison of flame retardants


Magnesium hydroxide consumption

0

200

400

600

800

1000

2013 2015 2020

Pharmaceutical/Other

Pulp and Paper

Flame Retardants

Chemicals

Environmental

26


Total Mg(OH)2 consumption forecast – World 2020

kt



Environmental + 2.8%

Pulp & Paper + 2.5%

Chemicals + 3%

Increase 2.8%

AAGR

2015 - 2020

Flame retardants + 3.5%

Magnesium hydroxide global outlook - 2020


Magnesium Chloride



Magnesium chloride capacity by region

43%

17%

17%

18%

2% 3% China

EMEA

Total North America

South America

Japan

Other Asia

Magnesium chloride capacity by region – total ca 0.8 mt MgO equivalent


Magnesium chloride consumption

Sorel Cement 39.6%

Dust Binding 28.7%

Thawing/Deicing Agent 16.4%

Food/ Pharmaceutical

3.2%

Fertilizers/Animal Feed 0.7%

Textiles 0.1%

Sugar Industry 0.1%

Other 11.2%

30


World consumption of magnesium chloride by end use - 2015

Total ca 0.6 mt as MgO equivalents


Transportation

0

50

100

150

200

250

NorthAmerica

Central andSouth

America

Europe Former CIS Africa /Middle East

Japan China Other Asia /Oceania

Kt

Mg

o

Dust Binding Thawing / Deicing Agent

31


Consumption of MgCl2 in the transportation sector - 2015

Total ca 0.7 million metric tons



0

20

40

60

80

100

120

140

160

180

200

2009 2010 2011 2012 2013 2014 2015

Calcium Chloride

Magnesium Chloride

MgCl2 vs CaCl2 in deicing, Europe

Sodium chloride accounts for >98% chloride deicing - 2015

Chlorides consumption for highway deicing depends on severity of winter

kt


Magnesium Chloride Consumption

0

100

200

300

400

500

600

700

800

2013 2015 2020

Other

Fertilizers/Animal Feed

Food/Pharmaceutical

Thawing/Deicing Agent

Dust Binding

Sorel Cement

33


Total MgCl2 consumption forecast – World 2020

kt

Total consumption - 2015 an estimated 0.65 mt as MgO equivalent



Sorel cement + 2-3%

Dust control + 2.4%

Deicing + 1-2%

Increase 2.2%

AAGR

2015 - 2020

Other uses + 3%

Magnesium chloride

global outlook - 2020



35

Magnesium sulfate

Globally, about 74% is used in agriculture



Magnesium sulfate capacity by region

41%

46%

7%

4% 1% 1%

China

EMEA

Total North America

South America

Japan

Other Asia

Magnesium sulfate capacity by region – total ca 0.9 mt as MgO equivalent



Magnesium sulfate consumption by region

31%

17% 12%

16%

2%

22%

China

EMEA

Total North America

South America

Japan

Other

Magnesium sulfate capacity by region – total ca 0.4 mt as MgO equivalent


Magnesium sulfate consumption

0%

20%

40%

60%

80%

100%

Americas EMEA Japan China

Other

Sorel Cement

Consumer Segment/Epsom Salt

ABS Polymerization

Detergents

Pulp and Paper

Agriculture

38


Total consumption - 2015 an estimated 0.4 million metric tons



Pulp and Paper + 2-3%

ABS +2.4%

Magnesium sulfate – global demand outlook - 2020

Agriculture + 2%

Consumer segment + 3%

Increase 2.2%

AAGR

2015 - 2020


World Consumption of MgO equivalents

0

1000

2000

3000

4000

5000

2013 2015 2020

MgSO4

MgCl2

Mg(OH)2

CCM54%

20%

16%

10%

40


Magnesium oxide equivalents consumption by source (non-refractory) - 2015

MgO equivalents ca 4 million metric tons in 2015

kt

2015


Magnesium Oxide Equivalents - Non-Refractory use

41


World consumption of MgO equivalents by end use - 2015


26%

Agricultural 23%

Environmental 17%


Food / other 14%

Dust Binding 5%


3%


Food / other 3%

Construction 3%

Flame Retardants 2%

Pulp and Paper 1%

ABS Polymerization 0.3%

Total consumption ca 4 mt in 2015


Magnesium Oxide Equivalents - Non-Refractory use

42


World consumption of MgO equivalents by end use - 2020


26%

Agricultural 23%

Environmental 17%


Food / other 14%

Dust Binding 5%


3%


Food / other 3%

Construction 3%

Flame Retardants 2%

Pulp and Paper 1%

ABS Polymerization 0.3%

Total consumption ca 4.6 mt in 2020, 5 year AAGR 2.6%



Conclusions 2.7% growth per year over the

next 5 years for MgO non-

refractory use

Magnesium sulfate, slow

steady growth 2.2%

Magnesium chloride, growth

2.2%, severity of winter in

Americas

Magnesium hydroxide,

growth 2.8%

Contents



Thank you for your attention

Any Questions?

Samantha Wietlisbach,

Principal Analyst

IHS Chemical

Zürich

+41 44 283 6336

[email protected]

mailto:[email protected]

IHS CHEMICAL MAGFORUM 2016

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