Benzene
19 April 1999 00:00 [Source: ICB]
Government regulations will have a major impact on the
outlook for benzene over the next couple of years.
Supply/demand
West European production was about 6.8m tonne last year and will
reach just over 7m tonne in 1999, according to DeWitt consultants.
DeWitt estimates growth rates at 2.7%/year with supply topping 7.4m
tonne/year in 2002.
Total demand amounted to 7.2m tonne in 1998 and is forecast to
reach just under 8m tonne in 2002. Operating rates of about 86%
last year will edge up to 87% in 1999, says DeWitt.
Uses
Over half of benzene production feeds ethylbenzene/styrene
demand. The second largest consumer is cumene, followed by
cyclohexane, alkylbenzene and aniline/nitrobenzene.
Technology
The traditional method of manufacturing benzene from the
distillation of light oils produced in the manufacture of coke has
been overtaken by a number of routes. In Europe, the main source of
benzene is from pygas coproduced in the steam cracking of naphtha,
gas oil and condensates to make olefins. It is also obtained from
the catalytic reforming of naphthas, hydrodealkylation of toluene
and the selective disproportionation of toluene (to make
paraxylene). Benzene is coproduced in the BP/UOP Cyclar process
converting propane/butane into aromatics.
Health & safety
Exposure to benzene can cause dizziness, rapid heart rate and
unconsciousness. It can irritate the nose and throat and can cause
upset stomach and vomiting. Benzene is a carcinogen and has been
shown to cause leukaemia. Benzene is flammable.
Pricing
###7559###
Benzene prices are heavily influenced by crude oil, which has
fallen to very low levels in 1998 and 1999. However the recovery in
global oil prices has lifted benzene spot numbers to levels of
$250/tonne fob NWE from as low as $202/tonne early this year.
Quarter two contract discussions produced an unusual situation in
Europe with two contract levels separately agreed at euro 210/tonne
and euro 215/tonne.
WEST EUROPEAN BENZENE CAPACITY
A first deal at E210/tonne between two northwest European
players was rapidly followed by a settlement between two major
German? players at E215/tonne. The situation remains unclear.
| Company |
Location |
Capacity |
| Aral |
Gelsenkirchen, Germany |
170 000 |
| BASF |
Mannheim, Germany |
320 000 |
| Bitmac |
Llanwern, UK |
26 000 |
| Borealis |
Porvoo, Finland |
130 000 |
| BP Amoco |
Grangemouth, UK |
237 000 |
| BSL (Dow) |
Bohlen, Germany |
320 000 |
| Carboquimica |
Padua, Italy |
20 000 |
| Cepsa |
Algeciras, Spain |
250 000 |
| Conoco |
Immingham, UK |
200 000 |
| Dow |
Terneuzen, Netherlands |
900 000 |
| DSM |
Geleen, Netherlands |
300 000 |
| Elf Atochem |
Feyzin, France |
110 000 |
|
Gonfreville, France |
200 000 |
| EniChem |
Porto Marghera, Italy |
110 000 |
|
Porto Torres, Italy |
215 000 |
| Erdöchemie |
Cologne, Germany |
220 000 |
| Exxon |
Botlek, Netherlands |
480 000 |
| Olefins |
Antwerp, Belgium |
170 000 |
| Gexaro |
Lavéra, France |
200 000 |
| OMV |
Burghausen, Germany |
120 000 |
| PCK |
Schwedt, Germany |
65 000 |
| Petrogal |
Oporto, Portugal |
60 000 |
| Repsol Petroleo |
Puertollano, Spain |
125 000 |
| Rutgerswerke |
Zelzate, Belgium |
40 000 |
| RWE-DEA |
Heide, Germany |
65 000 |
|
Wesseling, Germany |
195 000 |
| Shell |
Berre, France |
95 000 |
| Teer |
Erkner, Germany |
38 000 |
| Total |
Gonfreville, France |
140 000 |
| Wintershall |
Lingen, Germany |
75 000 |
| Veba Oel |
Gelsenkirchen, Germany |
380 000 |
Source: DeWitt
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