The future of PVDF for prepainted metal roofing

Something is happening in the prepainted coil metal roofing market.

We are seeing coating manufacturers who until now have promoted PVDF coating systems for prepainted metal, actively promoting alternate coating systems such as Silicone Modified Polyesters (SMP). The claimed justification is that PVDF might not be needed for many prepainted coil applications away from the equator and coastal areas.

When it comes to prepainted metal, both steel and aluminum coil and extrusions, PVDF coating systems are seen as the premium price and performance option, with best-in-class performance for weatherability and resistance to UV fading. So why would some suppliers choose to actively promote their second-tier coating systems over PVDF?

Costs have been going up, although that has not been unusual for any coating or ink system in the past 2-3 years. Legislation has substances including PFAS substances in the sights which will impact multiple markets that use these chemicals, so what is going on?

We have been looking at the PVDF Roofing Market this year to understand what has been happening and what is driving this change in approach.

There are two key movements in the PVDF market that are likely to be the cause; a statement issued by the European Chemicals Agency in February this year, and the significant inflation in PVDF resins which far exceed other resin systems during the recent period of raw material inflation.

Let’s look at each of these in turn:

ECHA proposed ban on PFAS and flouropolymers

In February 2023, the European Chemicals Agency (ECHA) proposed a total ban on PFAS and flouropolymers, to be effective in late 2025. If you are not close to the chemistry of coatings this statement probably did not mean a great deal.

However, it is significant.

To break this down let’s start with the term PFAS. PFAS chemicals are synthetic perflouroalkyl and polyfluoroalkyl substances. According to the OECD there are over 4,700 substances identified as PFAS’s. They are used in industry extensively due to properties including heat and chemical resistance, water resistance, anti-weathering, and resistance to UV fading. They are stable substances with high performance properties and are used when needed to bring these properties to many industrial applications including coatings.

In recent years the environmental and health concerns of PFAS substances has come in to focus, particularly the potential toxicity to human and mammal life, and that the lifespan of these substances is long, leading to the adoption of the term ‘forever chemicals’.

PVDF is a flouropolymer which is specifically called out in the ECHA statement. PFAS substances are used in the production of flouropolymers such as PVDF, which is why flouropolymers were included. However, the specific reference to flouropolymers in the ECHA statement this year took many in the industry by surprise.  

Cost inflation of PVDF resins >20% over the past 24 months

Since 2020 the availability of PVDF resins has come under severe pressure, as the growing electric vehicle and solar panels industries see increased demand for PVDF to use as thermal insulators in batteries and in solar panels. This increased demand has not been met by an increased supply, leading to supply shortages and corresponding inflation of resin costs.

There have been multiple cost increases by the resin manufacturers as a result, leading to increases in coatings costs. The PVDF content in PVDF prepainted steel coatings can exceed 70% so it should be expected that resin cost increases lead to coating cost inflation.

This has been happening at a time of significant raw material inflation for many B2B consumables, however the PVDF cost inflation far exceeds that of other resins used in coating systems. While such inflation has been more stable in the past year, the increased demand for PVDF from new renewable industries is not likely to slow down, so the supply / demand imbalance is not a temporary one and is likely to remain for the foreseeable future. If margins are at reinvestment levels then such a shortage would normally lead to additional capacity coming on stream, however the legislative actions in the EU may cause resin manufacturers to consider the longer term future more cautiously. This will, we believe, lead to a more extended shortage of supply of PVDF resin.

What are the long-term prospects for PVDF coil coatings?

Looking at the legislative focus on PFAS and flouropolymers, the industry is not expecting a global ban on PVDF for coil coatings in the medium term. The ECHA statement, if it becomes a regulatory restriction, will impact the manufacture of PFAS and PVDF in the EU. Although the US EPA is looking at PFAS, there is no indication today that there is a US ban on the horizon for coil coatings.

Regarding costs, this is likely to be a situation that will stabilize through effective economics and sound investment strategies. The EV car market and the solar panel market will continue to grow. Barring any significant technology changes the demand for PVDF will also grow. Therefore, it is likely that PVDF resin manufacturers will invest in increased capacity to fulfill the demand which is at attractive margins. This should stabilize costs and, if capacity investments are made, potentially reduce costs through competition. The timing and scale of such investments will be tempered by the potential demand risks of the EU’s ECHA.

There are alternative resins out there that could potentially be used instead of PVDF while still offering a strong proposition for weatherability and UV resistance, FEVE for example, although FEVE is also a flouropolymer.

It is our view that manufacturers that are promoting SMP and other coating systems are doing so to limit their exposure to the cost and potential legislative minefield they see soon for PFAS and flouropolymers. PVDF coatings systems have been promoted for years as the premium solution above all others. Now the focus is on promoting best-use case which leads in many situations to more focus on SMP coatings.

In our opinion, PVDF for prepainted coil coatings is unlikely to be fully banned however the focus on PVDF as a forever chemical which is also used in more direct human contact applications is not likely to go away, so it cannot be ignored. 

But if PVDF is restricted, coating manufacturers have wisely worked to position themselves to convince customers that their SMP solutions would be good in most situations.

As a consulting business in the coatings and inks industries we will continue to monitor this situation. If we can help you with specific industry advice, expertise or process improvement please contact us here

Julian Cass

August 2023

This blog post represents thoughts based upon our experience and observations. It is written to be thought provoking and not intended to be acted upon directly. If you would like to discuss your specific scenario or would like to know more about how we can help with industry expertise contact us here