Fairlawn, Ohio — The plasticizer market is facing some economic challenges in 2023.
Flooring demand in the U.S. declined in 2022 and is on pace to decline again in 2023. Luxury vinyl tile — a plasticizer end market — made up about one-third of flooring demand in 2022, according to Mark Holt, business director with Valtris Specialty Chemicals, a supplier of plasticizers and other specialty chemicals based in Independence, Ohio.
Holt gave a plasticizer market update on Oct. 11 at SPE Vinyltec 2023, an industry conference in Fairlawn.
The ongoing United Auto Workers strike also could affect plasticizer use by reducing vehicle production. PVC makes up about 12 percent of plastics used in cars, which amounts to 50-60 pounds of PVC per vehicle, Holt said. In raw materials, oil prices have been on the rise, with Holt adding "it's hard to see lower oil prices."
Plasticizers also are looking to improve their sustainability, but Holt said that processors "need to be willing to pay for bio-based or recyclable products."
He added that bio-based plasticizers — using soybean oil, linseed oil or other materials — are available, but those materials sometimes have issues with color, odor and transparency.
Valtris makes polymer additives and specialty chemicals. The firm was spun off from Ferro Corp. in 2014. New York-based SK Capital acquired Valtris from investment firm HIG Capital in May 2022 for an undisclosed price. Valtris operates nine global manufacturing sites.