Commodity, performance or specialty chemicals? The line between different chemical categories is ever changing.

All chemicals used in the paper industry are applied for a specific purpose. As a result, chemicals are categorized by their purpose. The paper industry typically describes chemicals as either commodity or performance (specialty). What are the generally accepted differences between these chemicals in use, service, and pricing? This is not an easy question to answer. What is special to one user may not be special to another.

Over the years, commodity chemicals have come to rep resent a group of additives that impart the same papermaking process response over all grades of paper with little or no modification. Examples here might include bleach, caustic, alum, clay, and titanium dioxide (see Table 1). Note that cost is not a part of the definition; titanium dioxide is expensive, yet rarely modified for a particular use.

ONE AND THE SAME

Specialty chemicals are modified or designed to impart particular papermaking process responses, depending on the specified need. Some examples include defoamers, retention aids, dyes, and biological control agents (see Table 2).

The terms "performance" and "specialty" have come to mean the same group of additives. Currently, "performance" seems to be preferred over "specialty," since there has been some feeling that the specialty term placed one group above or higher than another group. Performance and specialty are usually used interchangeably.

Service is an important distinction between the categories. Commodity chemicals generally do not come with a great deal of service, while suppliers support performance chemicals with technical assistance. Mill technical departments and corporate support groups typically devote more resources to performance chemicals than commodities. As paper processes and needs change, performance chemicals are changed or modified to meet the need, thus requiring more technical service. However, the "service gap" between commodities and performance chemicals can lead to problems. Commodities that are not made down or added properly can cause serious safety or process issues.

Pricing is typically different between commodities and performance chemicals. Commodities are often purchased in large lots or by rail or truckload. For example, clay or alum may be priced at dollars per ton or dollars per 1000 gallons. Performance chemicals are usually priced at dollars per pound.

TRIED AND TRUE

Both commodity and performance chemicals are here to stay. They all add value, to the paper industry's end products. This value can be measured in the chemical's price, technical contribution, service provided in support of the chemical, and the level of product development for other chemicals.

However, as the paper industry continues to cut costs and suppliers lose margin on their chemical products, performance chemicals are likely to become more like commodities in that technical service will decrease significantly. Suppliers are likely to spend less money on developing new products, making performance chemicals more and more like the commodities. The solution is for the industry and suppliers to work as a team on chemical supply. This will produce more resources for new product development and higher levels of technical support for paper mills, g|

Table 1: Typical
commodity chemicals

chlorine
chlorine dioxide
hydrogen peroxide
talc
titanium dioxide
ground calcium carbonate
filler clay
alum
pearl starch
delaminated clay
coating latex
coating starch

Table 2: Typical
performance chemicals

defoamers
deaerators
wash aids
dyes
biological control aids
retention aids
drainage aids
coagulants
charge neutralizers
internal sizing agents
felt washes
pitch coagulants
pitch dispersants
dye fixatives
cationic starches
precipitated calcium carbonate
plastic pigments
debonders
coating rheology agents
surface sizing cross linkers

About the author: C. A. (Kasy) King is principal of Papermaking Process Consulting LLC, Appleton, Wisconsin, USA, and a member of the TAPPI Editorial Board. King is also secretary of the PIMA Technology Resource Management Group, which plans and implements programs for the PIMA International Management conference each June. He can be reached at [phone], or at [e-mail].