Auto industry top consumer of fluoroelastomers.

The automotive industry constitutes the largest end use market for fluoroelastomers with a 60-65% share of market, according to a new report from Eldib Engineering & Research.

"Over the past 10 years, the market for automotive fluoroelastomer seals has doubled," says Dr. Andrew Eldib, who headed this investigation.

Fluoroelastomers are used under the hood in engine parts including crankshaft seals, seals for cylinder liners, valve stem seals and also in fuel system parts - filter gaskets, tubing and injections pump seals. Fluoroelastomers are also used in some transmission seals.

Growth in the automotive sector is strongly driven by the increasing temperatures under the hood, the more aggressive solvency of fuel additives, coupled with the tightening emission limits. In addition, periods between scheduled maintenance are being extended, placing further demands on life expectancy of elastomers in these applications.

The report explains that end users want more from the elastomers they buy and they expect to buy more fluoroelastomers. A market analysis performed by Dr. Eldib estimates the growth rate for fluoroelastomers to be 4-4.5% per year, driven in part by a 4% growth rate for expansion joints in flue ducts - a big market for fluoroelastomers.

"Lower volume markets such as industrial chemical, petrochemical, aviation and aerospace are all showing moderate growth rates of 2-3% annually," says Dr. Eldib.

Market growth is fostering joint ventures among fluoroelastomer producers, creating mergers such as DuPont-Dow and also 3M-Hoechst for fluoroelastomer development and marketing purposes.

Quality improvements under development are expected to improve consistency, mold release and hot tear strength.

The Viton and Fluorel FC families of fluoroelastomers are costing molders upwards of $20/lb., says Dr. Eldib. "For the most part, list prices are being paid for the more costly specialty grades, i.e., Viton's low temperature grades."

Large volume consumers among the largest molders can receive 5% to 20% discounts from list prices for annual orders of over 10,000 pounds. Pricing will also be affected by the recent merger of the o-ring businesses of two of the biggest molders, Freudenberg-NOK and International Seal. This means that there may be fewer but larger molders, and thus the producers of fluoroelastomers will be selling to fewer but bigger buyers, says Dr. Eldib.

Eldib Engineering and Research offers the following market trends, which are further examined in the report:

* The market for o-ring seals has expanded greatly.

* Fluoroelastomers in the automotive/off-the-road sector provide specific resistance to oxygenated fuels, and higher aromatic levels. Fluoroelastomers reduce emissions caused by permeation.

* The industrial pollution control sector uses fluoroelastomers to coat on fabric in flue duct expansion joints, for heat resistant gaskets and seals, and for coatings that are used to protect process equipment from chemical attack.

* The hydraulic/pneumatic sector involves all types of seals for fluid handling systems including: o-rings, t-seals, v-seals, p-seals and gaskets.

* O-rings, hoses and couplings are used by the aircraft/aerospace sector for hydraulic systems.