The U.S. Fluoropolymer Market and

Global Opportunities

Presented By:

Michael D. Taylor

Vice President, International Affairs and Trade

2015 China International Forum on Development of

Fluoroplastics Processing

Xi’an, China

October 6, 2015

Agenda Background on SPI

Overview of U.S. Plastics Industry

U.S. Trade in Fluoropolymers and Global Market Opportunities

SPI Plastics Market Watch

Growth in Fluoropolymer Applications in Key End Markets

Q&A

Founded in 1937, SPI is the only U.S.

trade association representing ALL

segments of the plastics industry

The U.S. Plastics Industry

In 2014…

• 3rd largest industry in U.S.

• Record-breaking domestic demand

Up 6.0% to $298.3 billion

• Shipped more than $427.3 billion in goods

• Employed 940,000 people

• Operated 16,806 facilities in every U.S. state

U.S. Demand for Plastics Sets

New High Level

$0

$50

$100

$150

$200

$250

$300

$350

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

$ in b

illio

ns

Machinery Molds Plastic Products Resin

Apparent Consumption = Shipments + Imports – Exports

Source: SPI “Global Business Trends” (2015)

Plastics Have Historically Grown

Faster than all Manufacturing

Comparative Growth Rates 1980 - 2014

Plastics

Mfg All Mfg

Employment 0.3% -1.3%

Real Shipments 2.6% 0.8%

Real Value Added 2.3% 0.8%

Productivity Growth 2.3% 2.1%

• Plastics manufacturing

employment grew 0.3 percent

per year since 1980

• The value of manufactured

shipments grew by 2.6

percent per year since 1980

• Productivity grew by 2.3

percent per year since 1980

Source: SPI “Size and Impact of the U.S. Plastics Industry” (2015)

U.S. Fluoropolymers Trade

2000-2014

0

100

200

300

400

500

600

7002

000

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

Exports Imports

U.S

. $

Millio

ns

Top U.S. Fluoropolymers Export

Markets 2000-2014

0

20

40

60

80

100

120

1402

000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

20

12

2013

2014

Japan China Mexico Belgium South Korea

France Italy Netherlands Taiwan India

U.S

. $

Millio

ns

U.S. Fluoropolymers Exports by

Type 2000-2014

0

50

100

150

200

250

3002

000

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

NON-ELASTOMERIC FLUOROPOLYMERSELASTOMERIC FLUOROPOLYMERSPOLYTETRAFLUOROETHYLENE (PTFE)

U.S

. $

Millio

ns

Top U.S. Fluoropolymers Import

Markets 2000-2014

0

20

40

60

80

100

120

140

160

1802

000

20

01

2002

2003

2004

2005

2006

2007

2008

20

09

2010

2011

2012

2013

20

14

Japan Italy Netherlands GermanyChina India France RussiaUnited Kingdom Belgium

U.S

. $

Millio

ns

U.S. Fluoropolymers Imports by

Type 2000-2014

0

50

100

150

200

2502

006

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

NON-ELASTOMERIC FLUOROPOLYMERS

ELASTOMERIC FLUOROPOLYMERS

POLYTETRAFLUOROETHYLENE (PTFE), EXCEPT GRANULAR

POLYTETRAFLUOROETHYLENE (PTFE), GRANULAR

U.S

. $

Millio

ns

SPI has launched a new series of reports looking at the

impact of the consumer on the business of plastics,

including demographics, economics, policy developments

and technological improvements for markets including:

Automotive & Transportation

Healthcare & Medical Devices

Packaging

Housing & Construction

This first publication under the SPI Market Watch series

explores the current state of plastics' role in the automotive

and transportation sector and looks into what the future

holds for the material.

Issue 1:

Automotive and

Transportation

Now Available for

Free!

Key Drivers for End Markets

Economic Indicators

Demographics

Technology

Policy

Consumer Trends

Resources

Market

Global Polymer Industry

Expected to Grow

• The global polymer industry is expected to grow with a CAGR of 3.9% over 2015-2020. The demand for polymer is driven by growth in end use markets, such as packaging, automotive, infrastructure, transport rails, and telecommunication mainly from emerging economies.

• According to “Global Polymer Industry Report 2015-2020: Trends, Profits and Forecast Analysis”, thermoplastics segment is expected to witness the highest growth over the next five years. Increasing applications of engineered plastics in various fields, such as construction, automotive, and industrial manufacturing equipment to mechanical engineering is expected to drive this market.

• Historically, the middle class has been a major consumer of polymers, and with global population set to include over 60% of people within this demographic by 2030, demand for commodity plastics will grow.

14

Global Fluoropolymer Market is

Predicted to Grow

• Strong demand from industrial processing and automotive sector is expected to fuel the demand for fluoropolymers. Global fluoropolymer market is set to reach US$ 6.7 billion by 2015, up from US$ 6.4 billion in 2014.

• The global fluoropolymer market was valued at US$ 6403.4 million in 2014 and is anticipated to account for US$ 11472.6 million by 2025, registering a compound annual growth rate (CAGR) of 5.2% to 5.5% through the forecast period.

• Global consumption of fluoropolymers amounted to 702.7 million lbs. in 2014 and is projected to total 740.4 million lbs. in 2015. The market is expected to reach 969.1 million lbs. by 2025.

15

Fluoropolymer Market Drivers

and Restraints

• Global fluoropolymer market is majorly driven by growing consumption of fluoropolymers by industrial processing, automotive and electrical & electronics industries across the globe.

• Apart from this, rapid replacement of conventional materials used in high performance applications is poised to drive demand for fluoropolymers across the globe.

• Moreover, demand for fluoropolymers in lightweighting applications is anticipated to boost the global fluoropolymer market growth during the forecast period.

• High costs and fluctuations in fluoropolymer prices might hamper growth of the global fluoropolymers market to some extent.

16

What is

impacting the

demand for cars

and plastics?

Estimated Light Vehicle Sales

for North America

19,600

19,700

19,800

19,900

20,000

20,100

20,200

20,300

20,400

20,500

20,600

20,700

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

Th

ou

sa

nd

s o

f V

eh

icle

Sa

les

Source: IHS

Trend Matrix for Medical End

Market

24%

31%

7%

24%

Total Health Expenditures Per Capita

Percentage Population

65 and Over

Life Expectancy

at Birth

Total U.S. Medical Device Exports

GDP Annual Growth Rate

Malaysia

South Africa

Thailand

Brazil

Russia

India

China

Bangladesh

Egypt

Indonesia

Iran

Mexico

Nigeria*

Pakistan

Philippines

South Korea

Turkey

Vietnam

Predicting Medical Device

Export Growth

Political

instability

Uncertainty

U.S. Fluoropolymers Market

Volume by Application

2012-2022 (Kilo Tons)

Source: Grandview Research

The Supply Side of the Global

Fluoropolymer Market

Source: U.S. Geological Survey, Mineral Commodity Summaries, January 2012

The Illinois-Kentucky Fluorspar

District

Western Kentucky Fluorspar District Fluorite Specimen, Western Kentucky

Fluorspar District

Thank You!

谢谢 Merci Vielen Dank

Grazie ありがとうございました 감사합니다

Obrigado Спасибо Gracias Teşekkürler

Questions & Answers

Michael Taylor

mtaylor@plasticsindustry.org

202-974-5232