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.
Two main types of PS are produced: crystal or general purpose polystyrene (GPPS) which is a clear, amorphous resin with good stiffness and electrical properties but it is brittle; and medium and high impact polystyrene (HIPS) which contain varying levels of polybutadiene to improve toughness and impact resistance.
The largest market for PS is packaging such as food and dairy containers, closures, lids, produce baskets, vending cups and fast food containers. The durable goods sector includes domestic appliances, household goods and furniture.
The PS market faces intermaterial competition with paper, glass, wood, polypropylene (PP), polyvinyl chloride (PVC) and acrylonitrile-butadiene-styrene (ABS). In particular, it has been losing market share to PP but has been gaining some from ABS.
The loss of growth in demand for PS has been a major challenge for the industry. The contraction of the PS market between 2005 and 2007 has been blamed on the so-called ‘destruction’ of polystyrene demand as this contraction is not cyclical or related to the economy.
One of the main reasons for the loss of demand has been the high cost of feedstocks blamed on the soaring price of benzene making PS unattractive compared to other materials. In addition, recycling and changes in consumer appliance fashion have been reasons for the contraction.
A further problem is that the PS market has been oversupplied since 1990. The industry has been trimming capacity over the years with cuts in North America and western Europe.
But despite these cuts, the market remains 30% oversupplied. According to CMAI, there is 3m tonnes/year of surplus capacity in an 11m tonnes/year market. In practice, the rationalisation of capacity in 2007 did little for the global balance although it did have some positive local implications.
In western Europe, about 11% of capacity equating to 350,000 tonnes/year has been cut since the end of 2005. The result is asset utilisation increasing from 81% in 2005 to 90% in 2007, according to Ineos Nova. However, overcapacity remains a challenge, particularly in HIPS where there is still 300,000 tonnes/year of excess capacity in western Europe.
The PS market has shrunk in western Europe although this is offset by growth in eastern Europe. Figures from the trade association Plastics Europe show demand in the EU-25 declined from 2.32m tonnes in 2004 to 2.25m tonnes in 2005 and 2.23m tonnes in 2006. Production increased from 2.51m tonnes in 2004 to 2.57m tonnes in 2005 before falling back to 2.50m tonnes in 2006.
Ineos Nova expects demand for HIPS in western Europe to continue to decline at an average of 1.6-1.7%/year in the 2006-2010 period. Demand for GPPS should show slight growth of 0.5%/year.
The largest market segment for PS – sheet for food – is forecast to decline at 2%/year while sheet film and refrigeration applications are expected to see similar falls. However, extruded PS used mainly in the insulation sector could grow, particularly in central and eastern Europe.
In the US, the PS market has been declining over the past few years and the decline is expected to continue. This is a result of the hollowing out of manufacturing industry with a shift of production of electronic goods into China, product maturity, the decline in single-family home construction and the general economic slowdown. However, the PS food service packaging sector should remain stable.
Overall demand is expected to decline by 0.5%/year in the US through to 2011. According to ICB, US demand will decline from 3.01m tonnes in 2007 to 2.95m tonnes in 2011. Exports in 2007 were 433,000 tonnes while imports were 281,000 tonnes. Overcapacity remains a problem despite cuts in capacity.
The good news is that consolidation is taking place. Nova and Ineos have extended their European styrenics joint venture to include their North American assets. Ineos Nova has shut capacity in Belpre, Ohio and Montreal, Quebec. It has also acquired rights to styrene production from Sterling Chemicals’ Texas City, Texas facility with the intention to shut down the facility.
Dow Chemical and Chevron Phillips Chemical have set up a joint venture, Americas Styrenics, that involves most of the companies’ commodity styrenic facilities in the Americas. The new joint venture began operations in May 2008.
Updated: July 2008. Sources: ICB Chemical Profile, 7 July 2008; 2007 CMAI World Petrochemical Conference, 21-22 March 2007, Houston, Texas; the 5th European Aromatics & Derivatives Conference, 15-16 November 2006, Amsterdam, The Netherlands.
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.
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