Styrene
19 June 2000 00:00 [Source: ICB]
A number of outages and a rise in demand helped to push
styrene markets into better than expected performance
Supply/demand
Global styrene markets performed better than forecast last year,
helped by several outages and stronger than expected demand growth,
estimated at about 6% by consultancy CMAI. Low inventories, strong
growth in European polystyrene production and major turnarounds in
the US and Asia have kept global markets tight in the first half of
2000.
###9021###
The startup last year of the Basell plant was offset by the
closures of ROW's 365 000 tonne/year unit at Wesseling, Germany and
BP Amoco's 140 000 tonne/year plant at Baglan Bay, UK.
Output from Dow's new unit in Bohlen, Germany, is integrated
into PS and other derivative production. Total capacity in
northwest Europe will reach more than 5.6m tonne/year this year
once Repsol's new 340000 tonne/ year plant is onstream at
Tarragona, Spain.
Uses
Polystyrene is the largest derivative, accounting for about
two-thirds of consumption. Styrene is also used to make
styrene-butadiene-rubber, acrylonitrile-butadiene-styrene (ABS)
resins and emulsion polymers whose end uses include packaging,
construction, automotive and household goods.
Pricing
The European contract price in quarter two 2000 is E950/tonne
for barge and E975/tonne for truck deliveries, the highest it has
been for five years. Spot prices have also soared this year, rising
from $750/tonne fob NWE in January to $1180/tonne cif in April,
although they dropped back to about $750/tonne fob in early June.
Despite the pressure from rising raw material costs, margins have
been improving this year. Cash margins for those using conventional
technology doubled in quarter one to DM260/tonne.
Technology
Styrene is produced predominately by ethylbenzene-based
technology. EB is first made by the catalytic alkylation of benzene
with ethylene, using either aluminium chloride or, more recently,
zeolite catalysts. The EB is then dehydrogenated to styrene in the
presence of steam over iron-chromium oxides or zinc oxide catalysts
using either multiple bed adiabatic or tubular isothermal reactors.
Shell has developed a direct heating method that is claimed to
reduce investment and operating costs. The coproduction of styrene
with propylene oxide by the PO/SM process is gaining popularity. EB
is oxidised to its hydroperoxide which is reacted with propylene to
produce propylene oxide and methyl phenyl carbinol. The latter
product is then dehydrated to styrene. Butadiene-based processes
have been developed to make EB (DSM/Stamicarbon) and styrene (Dow)
but are not believed to have been commercialised.
Health & safety
Styrene, a colourless liquid with aromatic odour, may irritate
the eyes, nose, throat and skin, and may cause unconsciousness at
high concentrations. It is highly flammable and forms explosive
mixtures in air.
| EUROPEAN STYRENE CAPACITY, |
| Company |
Location |
Capacity |
| Arpechim |
Pitesti, Romania |
80 |
| Basell |
Moerdijk, Netherlands |
550 |
| BASF |
Antwerp, Belgium |
500 |
|
Ludwigshafen, Germany |
510 |
| BP Amoco |
Marl, Germany |
380 |
| Dow Chemical |
Böhlen, east Germany |
280 |
|
Terneuzen 3, Netherlands |
500 |
|
Terneuzen 4, Netherlands |
525 |
| AtoFina |
Carling, France |
330 |
| Enichem |
Mantova, Italy |
350 |
| Kaucuk |
Kralupy, Czech Republic |
100 |
| Neftochim |
Burgas, Bulgaria |
40 |
| Oswiecim Chem Wks |
Oswiecim, Poland |
80 |
| Petrocel |
Teleajen, Romania |
50 |
| Repsol |
Puertollano, Spain |
150 |
| Shell Chemicals |
Moerdijk, Netherlands |
400 |
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