10th APS: Asia Pacific SM demand to nearly double by 2012

13 September 2002 06:50  [Source: ICIS news]

BANGKOK (CNI)--Asia Pacific demand for styrene monomer (SM) will continue to grow steadily, coming close to doubling between now and 2012, according to John King, managing director Nexant/ChemSystem Asia.

Speaking on the final day of the 10th Asian Petrochemical Summit (APS) in Bangkok, King said Asia Pacific SM demand had risen to 9m tonne/year in 2002 from 7m tonne/year in 1996. It is expected to exceed 13.5m tonne/year by 2012.

King said Japan, Taiwan and South Korea now accounted for only 60% of regional demand, while China's share had risen to 24%. By 2010, China will account for an estimated 36% of the regional demand while the combined share of Japan, Taiwan and South Korea will have declined to less than half of its present percentage total.

On the supply side, Japan and South Korea's combined share fell to 59% in 2001 from 71% in 1997, pointing to ongoing consolidation in the region.

China and Taiwan have increased their share of the Asian supply pie to 24% in 2001 from 14% in 1997.

On whether new propylene oxide (PO)-only plants marked the beginning of the end for combined SMPO plants, King said that on an average the traditional SMPO plant's production cost was $784/tonne, whereas production costs at Sumitomo's PO-only process plant was $806/tonne. However, he added that better margins could be had by taking the PO-only product to market.

King said there was already clear evidence that major industry players were favouring the PO-only route.

In Asia, Sumitomo Chemical planned to bring onstream a 200 000 tonne/year PO plant in Chiba, Japan, by Q1-2003.

Elsewhere, BASF and Solvay formed in May 2002 a 50:50 joint venture to build a 250 000 tonne/year PO plant for startup in 2007. The BASF-Solvay PO plant is based on hydrogen peroxide feedstock as opposed to Sumitomo's cumene feedstock. However, the location of the plant has not yet been revealed.

Dow and Degussa/Krupps Uhde have also developed PO processes through direct oxidation of propylene with hydrogen peroxide.

In addition, BASF and Dow teamed up in August 2002 to develop and commercialise a hydrogen peroxide based PO process. The two companies are planning to build a worldscale plant by 2006.

APS, a two-day conference organised by the Centre for Management Technology, ended early on Friday after speakers from the Middle East failed to turn up. The organisers were unable immediately to explain their non-appearance.

By: Iqbal Anand
+65 6780 4359

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