Updated to mid-November 2009
Asian market review by Clive Ong, ICIS pricing
Asian polystyrene (PS) prices peaked in the second of August before starting on the downtrend. The Chinese manufacturing season which typically straddles the months of July to September saw firm demand for PS.
General purpose PS (GPPS) prices rose to $1,340/tonne CFR (cost and freight) China in the second half of August but started trending lower in September. Traders liquidated parcels ahead of the long Chinese National Day holidays in early October, resulting in lower prices below $1,300/tonne CFR China in end September.
The Chinese market was mostly closed in the first half of October while prices lost further ground in the second half of October to below $1,250/tonne CFR China.
A slight recovery in prices to the high $1,200s/tonne CFR China was seen in November as energy and feedstock styrene monomer values increased, but the resin demand remained lacklustre.
European market review by Linda Naylor, ICIS pricing
Prices of PS in Europe continued to follow ‘doggedly’ the styrene market and prices were down slightly in the quarter. Production was curtailed and PS was made only to order.
Several plants were now being shut down on a permanent basis as producers complained that there was no margin in the PS business. Producer sources estimated a market decline in 2009 of around 6-7% down from 2008, but pointed out that second-half year volumes had rallied and lifted the negative volumes in Europe from minus 10%.
Several PS closures had already taken effect in 2009 and others were planned. INEOS NOVA planned to close its 90,000 tonne/year PS plant at Breda, the Netherlands, while weak margins led Dow Chemical to close its 65,000 tonne/year PS plant at Bilbao, Spain, in the third quarter along with its 50,000 tonne/year plant at Terneuzen, the Netherlands. BASF closed 25% of its PS capacity at Ludwigshafen, Germany, estimated to be around 80,000 tonne/year and Total Petrochemicals also announced its intention to close some PS capacity in France in 2009.
US market review by David Barry, ICIS pricing
GPPS prices in the US were in the low 70s cents/lb on a delivered basis at the end of October and early November, about flat compared with three months earlier. Multiple price increases in August were rolled back in September and October as feedstock benzene costs retreated.
PS sales in the US fell off sharply in August and September as buyers limited purchases amid high resin prices. Demand showed some recovery in October, sources said.
By November, costs were going back up and producers announced a 3 cents/lb increase to protect their already-thin margins. Buyers said producers were under pressure to maintain market share because of weak demand and low operating rates, so sellers were moving cautiously to implement price increases in the fourth quarter.
Imports from Asia and Latin America have appeared in the market, but the supply has not been constant, buyers said.
Latin American market review by George Martin, ICIS pricing
Prices of PS in Latin America grew steadily through September, but prices declined in October for some countries while in others prices were steady.
Mexico and Colombia had the sharpest declines in October following a steep decline in feedstocks benzene and styrene monomer.
Venezuela had substantially higher prices after the local producer experienced two shutdowns for lack of raw materials. Prices in Venezuela were hovering around $3,500/tonne, which is twice the current price in other Latin American countries.
In Argentina, PS prices were relatively steady during the studied period. The local producer rolled prices over in October and November, and something similar happened in Brazil.
In Colombia, PS prices were influenced strongly by currency fluctuations, which were mostly revaluations of the Colombian peso versus a sinking US dollar, but strong competition among the two local suppliers kept prices low.
PS prices in Mexico had a strong decline in October, but one of two local producers and one importer were attempting to increase prices again in November by 3 cents/lb. It was not clear if this would happen for crystal grade, but the increase could easily take hold for high impact PS (HIPS), according to local sources.
The gap between crystal and HIPS grades got wider due to higher feedstock costs of polybutadiene, a feedstock for the production of HIPS.
Polystyrene
Uses and Outlook
Polystyrene (PS) is a thermoplastic resin with good processing properties. It is used in many applications including food packaging, domestic appliances, electronic goods, toys, household goods and furniture.
More about Polystyrene Uses and Outlook
Polystyrene
Process Technologies
Polystyrene was first produced commercially in the 1930s and the ready availability of styrene feedstock has helped it to grow. Styrene will polymerise spontaneously on heating in an oxygen-free atmosphere but catalysts are added to ensure complete polymerisation at lower temperatures. Processes have been designed to aid heat transfer from the exothermic reaction, which can lead to low molecular weight polymers being formed if not controlled.
More about Polystyrene Process Technologies
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