DADMAC Supply Chain - Executive Summary

Diallyldimethylammonium Chloride
(DADMAC)

recursor Chemical

c8h16cin

(liquid)

Inputs to Manufacturing Process:
Dimethylamine Allyl Chloride

J* Derivative Water Treatment Chemicals:
*

polyDADMAC

% of Total Domestic Consumption
Attributed to Water Sector:

Less than 10%

M Product Family:
Petroleum Byproducts

CAS No.: 7398-69-8

fo\ Understanding Chemical Supply Chains ^

Shelf Life:
6 Months

— RISK OF SUPPLY DISRUPTION (Assessed in 2022)

RISK RATING: Moderate-High

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RISK DRIVERS

Numerous supply chain challenges
include a limited number of domestic
manufacturers, a supply chain de-
pendent on production of other, high-
er value petroleum byproducts, con-
centration of input manufacturing in
an area prone to extreme weather,
dependence on imports to meet do-
mestic demand, and previous signifi-
cant price increases and force
majeure in supply to the water sector.

RISK PARAMETERS

Criticality: High. Essential precursor
for production of polyDADMAC, used
in coagulation and sludge dewatering.

Likelihood: Moderate-Low. Previous
price increases and force majeure
have impacted availability and
pricing.

Vulnerability: Moderate-High. Manu-
facturing is limited, high tariff on the
most significant source of imports.

MANUFACTURING PROCESS

Water Treatment Applications

Dimethylamine

Allyl

Chloride

DADMAC

Input

End Use

Water treatment chemical production

Other Applications

Resins and polymers
Household cleaning agents
Disinfectants
Enhanced oil recovery

DOMESTIC PRODUCTION AND CONSUMPTION, AND INTERNATIONAL TRADE

Domestic Production and Consumption

Domestic Manufacturing Locations (2019):
3, in Arkansas, Louisiana, Mississippi

(^) International Trade (2019)

Primary Trading Partner (Imports): China
PrimaryTrading Partner (Exports): France

Total domestic manufacturing of DADMAC reported under the
TSCA CDR was approximately 48 M kg in 2019. Significantly, a
leading manufacturer did not report production. Due to this data
gap and differences in reporting between production and trade
data, U.S. consumption of DADMAC could not be estimated.

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DADMAC Supply Chain - Full Profile

Product Description

Diallyldimethylammonium chloride (DADMAC) (CsHi6CIN), an organic quaternary ammonium salt, is a widely
used intermediate in production of resins and polymers. It is the precursor to a class of polymers (polyDADMAC)
used in water treatment. Domestic production is concentrated along the Gulf Coast near the source of inputs,
which are reliant on petroleum product processing.

Use in Water Treatment
None.

Use as a Precursor to Other Water Treatment Chemicals

DADMAC is the foundational chemical for the family of cationic polymers, PolyDADMACs, which are used in
water treatment as coagulants and dewatering agents. Water treatment is a primary use of PolyDADMACs, but
not DADMACs.

Other Applications

DADMAC is an intermediate in the production of resins and polymers. It is used directly in many household
chemicals to modify performance as a surfactant. DADMAC is also used in disinfectant formulations as one of
several quaternary ammonium compounds recognized for its ability to precipitate or denature microbial
proteins. DADMAC is also commonly used in shampoos and laundry products. DADMAC may also be used
directly in enhanced oil recovery for clay stabilization, flow control, and other applications (NCBI, 2022a).

Primary Industrial Consumers

DADMAC is primarily used in resin production. While the percentage of consumption accounted for by water
treatment is unknown, it is believed to be less than 10% based on estimates of other uses.

Manufacturing, Transport, & Storage

Manufacturing Process

The primary commercial method of DADMAC production relies on the alkylation of dimethylamine with allyl
chloride, followed by neutralization with an alkali metal hydroxide. High purity DADMAC is required for
production of polyDADMAC acceptable for water treatment. Obtaining high quality allyl chloride is an important
step in this process (NCBI, 2022a; Olin, 2016).

Allyl chloride is produced through the chlorination of propylene. Allyl chloride is one of many organic chemical
intermediates produced by reacting propylene with other chemicals. It is used widely in preparation of resins
and plastics, pesticides, adhesives, dyes, flavorings, pharmaceuticals, and oil production.

Dimethylamine is produced through the methylation of ammonia with methanol (Olin, 2016). Dimethylamine is
a chemical intermediate used widely in solvents, pharmaceuticals, surfactants, and rubber. Dimethylamine is
also used in the production of antivirals (NCBI, 2022b).

Product Transport

DADMAC, primarily supplied as a solution, is commonly transported by truck, rail, barge, and ship.

EPA 817-F-22-022 | December 2022

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DADMAC Supply Chain - Full Profile

Storage and Shelf Life

DADMAC is stable under recommended storage conditions, but may polymerize slowly at room temperature.
When stored properly, DADMAC can have a shelf life of approximately six months, though stability may depend
upon many factors (Derypol, 2021).

Domestic Production & Consumption

Domestic Production

Production data was collected from the 2020 Toxic Substances Control Act (TSCA) Chemical Data Reporting
(CDR) for the year 2019, while trade data was collected from the U.S. International Trade Commission (USITC)
Dataweb, as shown in Table 1. While production data is specific to DADMAC, trade of DADMAC may be
characterized by multiple trade categories. The primary category used for trade of DADMAC includes DADMAC
as part of a broader trade category of quaternary ammonium salts and hydroxides, 'not elsewhere specified'
(NES).

Table 1. DADMAC Production and Trade Data Sources

Production and Trade Data

Category

Data Source and Date

Identifier

Description

Domestic Production

2020 TSCA Chemical Data Reporting

CAS No.: 7398-69-8

DADMAC

Imports and Exports

U.S. International Trade Commission

HS Code: 2923.90

Quaternary ammonium
salts and hydroxides, NES

Domestic manufacturing of DADMAC reported under the CDR occurred at three facilities located in Arkansas,
Louisiana, and Mississippi. Two of three listed domestic manufacturers indicated production volume of
DADMAC, approximately 48 M kg in 2019, while the third claimed confidential business information (EPA, 2020).
SNF Holding reported 85% of the total DADMAC production reported. The majority of domestically produced
DADMAC is believed to be used in captive consumption (EPA, 2020).

Domestic Consumption

Due to differences in reporting for production and trade data, as well as production data not reported under the
CDR, U.S. consumption of DADMAC could not be estimated. Reported domestic production of DADMAC
represents a small quantity when compared to the import and export volume for the category of quaternary
ammonium salts and hydroxides, NES including DADMAC.

Trade & Tariffs

Worldwide Trade

Worldwide import and export data for DADMAC are reported through the World Bank's World Integrated Trade
Solutions (WITS), as a category representing a class of quaternary ammonium salts and hydroxides, NES. In 2021,
the U.S. ranked second worldwide in total exports and fourth in quaternary ammonium salts and hydroxides,
NES. In 2021, China ranked first worldwide in total exports and Japan ranked first in total imports (WITS, 2022),
as shown in Table 2. Import and export data specific to DADMAC is unavailable from the referenced sources.

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DADMAC Supply Chain - Full Profile

Table 2. WITS Worldwide Export and Import of Quaternary Ammonium Salts and Hydroxides, NES, including
DADMAC, in 2021

2021 Worldwide Trade
Quaternary Ammonium Salts and Hydroxides, NES (HS Code 2923.90)

Top 5 Worldwide Exporters

Top 5 Worldwide Importers

China

108 M kg

Japan

27 M kg

United States

68 M kg

China

25 M kg

Netherlands

35 M kg

Netherlands

21 M kg

Japan

25 M kg

United States

21 M kg

Italy

23 M kg

United Kingdom

16 M kg

Domestic Imports and Exports

Domestic imports and export data are reported by USITC in a category representing a class of quaternary
ammonium salts and hydroxides, NES. Figure 1 summarizes imports for consumption1 and domestic exports2
between 2015 and 2020. During this period, the overall quantities of exports and imports varied with a five-year
high in 2018. The quantity of domestic exports consistently exceeded imports for consumption. Over this five-
year period, France was the primary recipient of domestic exports while China was the primary source of
imports (USITC, 2022a).

Domestic Trade of Quaternary Ammonium Salts and Hydroxides, NES

HS Code 2923.90

















































. ¦















__







	1



__



Imports

Exports

Imports

Exports

Imports

Exports
Imports

Exports

Imports

Exports

Imports

Exports

2015



2016



2017

2018



2019



2020



¦	Imports from China	¦ Exports to France

¦	Imports from Germany	¦ Exports to Taiwan

¦	Imports from Other Countries	Exports to Other Countries

Figure 1. USITC Domestic Import and Export of Quaternary Ammonium Salts and Hydroxides, NES, including
DADMAC, between 2015 and 2020

1	Imports for consumption are a subset of general imports, representing the total amount cleared through customs and entering
consumption channels, not anticipated to be reshipped to foreign points, but may include some reexports.

2	Domestic exports are a subset of total exports, representing export of domestic merchandise which are produced or manufactured in
the U.S. and commodities of foreign origin which have been changed in the U.S.

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DADMAC Supply Chain - Full Profile

Tariffs

There is a 6.2% general duty and a 25% additional duty on imports from China (USITC, 2022b), as summarized in
Table 3. The additional duty enacted in 2018 may have had an impact on imports from China (see Figure 1)

Table 3. 2021 Domestic Tariff Schedule for DADMAC

HS Code

General Duty

Additional Duty - China
(Section 301 Tariff List)

Special Duty

2923.90

6.2%

25%

Free (A, AU, BH, CL, CO, D, E, IL, JO, K, KR,
MA, OM, P, PA, PE, S, SG)3

Market History&RiskEvaluation

History of Shortages

There were repeated shortages of a raw ingredient of allyl chloride and propylene, between 2000 and 2020
(Tullo, 2021). Propylene is a byproduct of the petroleum refining process. The majority of domestic
petrochemical feedstock for production of allyl chloride and production facilities for allyl chloride are located in
proximity to refineries and ports along the U.S. Gulf Coast. Geographic concentration of the feedstock and
production has, over the years, resulted in supply bottlenecks. Periodic weather disturbances to manufacturing,
including Winter Storm Uri in February 2021 and Hurricane Ida in August 2021, temporarily halted
manufacturing at primary domestic propylene manufacturing locations along the Gulf Coast and led to
declarations of force majeure. This has resulted in shortages of downstream chemicals.

Risk Evaluation

The complete risk evaluation methodology is described in Understanding Water Treatment Chemical Supply
Chains and the Risk of Disruptions (EPA, 2022). The risk rating is calculated as the product of the following three
risk parameters:

Risk = Criticality x Likelihood x Vulnerability
Criticality	Measure of the importance of a chemical to the water sector

Likelihood Measure of the probability that the chemical will experience a supply disruption in the
future, which is estimated based on past occurrence of supply disruptions

Vulnerability Measure of the market dynamics that make a chemical market more or less resilient to
supply disruptions

The individual parameter rating is based on evaluation of one or more attributes of the chemical or its supply
chain. The ratings and drivers for these three risk parameters are shown below in Table 4.

3 Symbols used to designate the various preference programs and trade agreements. A full list of special trade agreements and
associated acronyms can be found at https://help.cbp.eov/s/article/Article-310?laneuaee=en US and the General Notes Section of the
Harmonized Tariff Schedule https://hts.usitc.eov/current

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DADMAC Supply Chain - Full Profile

Table 4. Supply Chain Risk Evaluation for DADMAC

Risk Parameter Ratings and Drivers





i

ICriticality High



Vulnerability Moderate-High 1

DADMAC is not used directly in water
treatment but serves as the raw
material for production of
polyDADMAC, used in coagulation and
sludge dewatering.

A history of price increases and force
majeure due to shortages of or steep
increase in the cost of a key input,
allyl chloride, have impacted
availability and pricing of
polyDADMAC.

There is limited domestic
manufacturing of DADMAC in
locations concentrated along the Gulf
Coast near the source of inputs. There
is also a high tariff on the most
significant source of imports.

Risk Rating: Moderate-High

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References

Derypol, 2021. Technical Information, DADMAC-C, Monomer for Organic Synthesis, retrieved from

https://www.dervpol.com/en/technical-clocumentation/

EPA, 2020. 2020 TSCA Chemical Data Reporting, retrieved from https://www.epa.gov/chemical-data-
reporting/access-cdr-data#2020

EPA, 2022. Understanding Water Treatment Chemical Supply Chains and the Risk of Disruptions, retrieved

from https://www.epa.gov/waterutilitvresponse/water-sector-supplv-chain-resilience
National Center for Biotechnology Information (NCBI), 2022a. PubChem Compound Summary for CID 33286,
Diallyldimethylammonium chloride, retrieved from

https://pubchem.ncbi.nlm.nih.gov/compound/Diallvldimethvlammonium-chloride

National Center for Biotechnology Information (NCBI), 2022b. PubChem Compound Summary for CID 674,
Dimethylamine, retrieved from https://pubchem.ncbi.nlm.nih.gov/compound/Dimethvlamine

Olin Corporation, 2016. Allyl Chloride Product Stewardship Manual, retrieved from

https://olinepoxv.com/wp-content/uploads/2017/05/Allvl Chloride Stewardship Manual.pdf
Tullo, A., March 24, 2021. Texas petrochemical production is still thawing. Chemical & Engineering News,
99(11), retrieved from https://cen.acs.org/business/petrochemicals/Texas-petrochemical-production-
still-thawing/99/ill

U.S. International Trade Commission (USITC), 2022a. USITC DataWeb, retrieved from

https://dataweb.usitc.gov/

U.S. International Trade Commission (USITC), 2022b. Harmonized Tariff Schedule (HTS) Search, retrieved

from https://hts.usitc.gov/

World Integrated Trade Solutions (WITS), 2022. Trade Statistics by Product (HS 6-digit), retrieved from
https://wits.worldbank.org/trade/countrv-bvhs6product.aspx?lang=en#void

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