Document VJj8D8Q3BGkbZ6YLQXD2XDNy4

I united states/americas Regulatory Reform Justice Groups Pulling the Plug on EPA's Common Sense Initiative ll he survival of the centerpiece of "The process ... has developed in a man TEPA's regulatory reinvencion efforts-- ner that appears to maneuver discussions to the Common Sense Initiative (CSI)-- center around end-of-pipe strategies ver was thrown into doubt last week by the withsus source and use reduction and relief drawal of environmental justice groups from regulatory standards as opposed to from the process. CSI brings together indus real discussion and strategies concerning try, labor, government, and environmental pollution prevention and community groups to find sector-specific solutions to impacts," Ferris says. environmental problems. Environmental RUSH TO ELECTION? Environmental repre groups say the departures will make their par sentatives share Ferris's concerns, especial ticipation difficult, especially since labor is ly about inadequate community partici also underrepresented. pation. They say CSI presents local Some environmentalists say the problem communities with pilot projects rather was precipitated by EPA's decision last than involving them in the process offor month to drop two CSI participants that the mulating those initiatives. Denny Larson, agency found "argumentative." with Communities for a Better Environ In a letter dated February 5, Deeohn Fer ment (San Francisco), blames EPA for ris, executive director of the Washington rushing to produce concrete results before Office on Environmental Justice, told EPA the 1996 election. Administrator Carol Browner that four Larson says withdrawal from CSI by envi participants are withdrawing and that six ronmental groups is unlikely but has not additional invitees are declining to partici been ruled out. "There is a lot of analysis pate. Besides inadequate environmental going on by all the participants, including justice representation, Ferris cites inade industry, as to whether this is really going quate technical resources for those who do anywhere and whether it's worth the time participate, resulting in industry domination and effort," he says. of the forum. --PETER FAIRLEY in Washington Plastics PVC off the Ropes? OLYVINYL CHLORIDE (PVC) APPEARS TO Pbe regaining its footing as producers gear up for what they hope will be a strong construction season. U.S. contract prices are expected to show a 2-cts/lb gain in March, the first move ment upward since PVC began its slide last May. A 4-cts/ib price increase, originally scheduled to take effect February 1, was modified into two 2-cts/lb increases in an attempt to make it more palatable. Mean while, OxyChem has announced a $20/ton increase on precurser chlorine because of raising PVC demand. Producers are implementing the first half of the increase now and will try for the sec ond halfin April. January pricing was 28 cts29 cts/lb for extrusion-grade polymer, off 10 cts from last spring. Export pricing remains stalled at $620/m.t. del. "The first half of the increase looks to be pretty much successful," says Rob Harvan, analyst with Bonner & Moore (Houston). "There is even a strong body of opinion that splitting the increase may not have been necessary." Harvan says extrusion grade is performing extremely well, and the recent upswing in con struction permits should bode well for the market. "The first and second quarter should be very good," he says. Harvan estimates that operating rates will average 95% for the year, since no new capacity is scheduled to go onstream until later in the year. PENT-UP DEMAND. One producer says orders picked up steadily as January progressed. He is projecting a strong spring as downstream extruders replenish inventory. "Domestic volumes were actually down last year when compared with 1994," he says. "I expect volumes this spring to be greater or equal to what they were last spring. There is a lot of pent-up demand downstream that will need to be filled." --ROBERT WESTERVELT PARA-lYLENE AMOCO TO FURTHER EXPAND U.S. CAPACITY Amoco has approved a project to further expand its para-xylene capacity at Texas City, TX by 90,000 m.t./year in 1996. The project, to be implemented in the second half of the year, is in addition to the company's plan to start up a 260,000-m.t./year p-xylene unit in mid-1996 (CW, Aug. 10, 1994, p.10). The latest expansion will bring Amoco's total p-xylene capacity to more than 1.7 million m.t./year. The company recently completed p-xylene expansions at its plants in Decatur, AL and Texas City. In addition, it is building a 350,000-m.t./year plant with Exxon and China American Petroleum in Singapore for startup in 1997. Several U.S. companies have been expanding p-xylene capacity to meet increased demand for purified terephthanc acid used in the production of polyester and polyethylene terephthalate resin. Expansions are being planned by Chevron, Mobil, and, most recently, Koch {CW, Aug. 23, 1995, p. 17). --ANDREW WOOD FIBER INTERMEDIATES EG EXPANSIONS NEEDED TO MEET PET DEMAND Ethylene glycol (EG) supply is expected to be tight in 1997 as expansions in para-xylene, purified terephthalic acid, and polyester fiber start up. EG producers are studying plans to squeeze out additional capacity as other companies such as the Westlake Group (Houston) consider entering the business. Huntsman is said to have debottlenecking studies in progress. Observers say it will take a new entrant into the U.S. EG market until at least 1998 to obtain operating permits. "If Asian demand picks up as much as expected, prices will likely stay flat in the second quarter but increase in the third quarter," a producer says. "Prices will definitely strengthen this year and in 1997. The challenge to expand EG is real because the demand is there in the Far East." --tim cornitius in Houston CHEMICAL WEEK. FEBRUARY 28, 1996 13 DSW 133436 STLCOPCB4033394