CHEMICAL PROFILE: Styrene

15 May 2006 00:00  [Source: ICB]

USES

Styrene’s main consumer is polystyrene (PS), followed by other major users styrene-butadiene rubber (SBR), acrylonitrile-butadiene-styrene (ABS) and styrene-acrylonitrile (SAN) resins. Smaller uses are found in unsaturated polyester resins (UPR), styrene-butadiene latex, styrenated polyesters and other copolymer resins. Styrene derivatives are used in packaging, construction, automotive and household goods, and electrical appliances.

SUPPLY/DEMAND

Demand in Europe last year was down on 2004, notably for PS with other derivatives such as SAN, UPR and speciality products being flat. There has been no big improvement this year and demand levels are low. Players say that the high prices and volatility of feedstocks has had a damaging effect on derivatives demand.

There has been stronger styrene derivative demand in Turkey, central Europe, north Africa and the Middle East and this is helping to maintain demand for styrene in western Europe, says Nexant ChemSystems. Supply is quite tight as ethylene is short due to problems or maintenance at several crackers. Small import volumes are arriving from the US, but lower Asian prices are keeping European exports out.

Lanxess is restructuring its styrenics assets and has sold its SAN business to BASF.

PRICING

Three separate settlements emerged in May for barge contracts, namely at €970/tonne, €980/tonne and €995/tonne, up €35-60/tonne on April. The truck price is at the usual €25/tonne delta. The FCA, or customer reference price, eventually settled at €988/tonne.

Spot prices are high and have been climbing on the back of production issues, with latest spot business around $1100/tonne for June.

TECHNOLOGY

The dominant route to styrene is based on ethylbenzene (EB). EB is made by the catalytic alkylation of benzene with ethylene in vapour or liquid phases, using either aluminium chloride or zeolite catalysts. The EB is then dehydrogenated to styrene in the presence of steam over iron-chromium oxides or zinc oxide catalysts using multiple bed adiabatic (the preferred choice) or tubular isothermal reactors.

Styrene is also coproduced with propylene oxide (PO). In this route, EB is oxidised to its hydroperoxide and then reacted with propylene to produce PO and methyl phenyl carbinol which is dehydrated to styrene. However, new processes to make PO without styrene coproduct are being developed.

Dow Chemical and Snamprogetti have linked to develop an ethane-based process which could reduce production costs significantly.

HEALTH AND SAFETY

Styrene is a colourless, oily liquid with an aromatic odour. It is highly flammable and forms explosive mixtures in air. Its vapour is slightly toxic and can irritate the eyes, nose and throat. It is classified as a possible human carcinogen.

OUTLOOK

Global styrene markets remain oversupplied and rationalisation is needed. Europe has excess capacity of around 500 000 tonne/year. World growth is forecast at about 3%/year with growth of between 1-2%/year in Europe. Growth in China is put at about 10%/year, with local supply rising and displacing imports. Several projects are planned or underway in the Middle East and Asia, however some have been delayed or postponed indefinitely.

Styrene badly needs a new high volume application as PS usage is disappearing. PS is also seeing substitution potential by PP.

>> Profile last published 19 April 2004

EUROPEAN STYRENE CAPACITY ’000 TONNE/YEAR*

Company	Location	Capacity
Angarsk Petrochemical	Angarsk, Russia	40
Arpechim	Pitesti, Romania	30
BASF	Antwerp, Belgium	500
	Ludwigshafen, ?Germany	550
Dow Chemical	Bohlen, Germany	280
	Terneuzen, ?Netherlands	1000
Dwory	Oswiecim, Poland	120
Ellba	Moerdijk, ?Netherlands	550
Ineos Styrenics	Marl, Germany	380
Kaucuk	Kralupy, Czech Rep	170
Lukoil Neftochim	Burgas, Bulgaria	40
Lyondell	Rotterdam, ?Netherlands	640
Nizhnekamskneftekhim	Nizhnekamsk, Russia	265
Plastik AO	Uzlovaya, Russia	40
Polimeri Europa	Mantova, Italy	595
	Hythe, UK	60
Repsol YPF	Puertollano, Spain	160
	Tarragona, Spain	340
Sabic Europe	Geleen, Netherlands	270
Salavatnefteorgsintez	Salavat, Russia	200
Shell Chemicals	Moerdijk, ?Netherlands	440
Sibur Khimprom	Perm, Russia	100
Total Petrochemicals	Carling, France	330
	Gonfreville, France	390
Source: Nexant ChemSystems

 

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