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.

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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,


'000 TONNE/YEAR


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


DSM Beek, Netherlands 27


AtoFina Carling, France 330


Gonfreville, France 390


Enichem Mantova, Italy 350


Mantova, Italy 150


Hythe, UK 60


Kaucuk Kralupy, Czech Republic 100


Neftochim Burgas, Bulgaria 40


Oswiecim Chem Wks Oswiecim, Poland 80


Petrocel Teleajen, Romania 50


Repsol Puertollano, Spain 150


Tarragona, Spain 340


Shell Chemicals Moerdijk, Netherlands 400




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