Styrene Overview Transcript
Styrene is a liquid chemical which is used to manufacture a wide range of products in two basic groups: plastic resins and synthetic rubber. The raw materials for styrene are benzene and ethylene which are produced from naphtha in an integrated plant.
In the plastic group, styrene is made into polystyrene, EPS, ABS, SAN and UPR. These resins then go into consumer electronics, office equipment, toys, and automobiles as well as the packaging construction and infrastructure sectors.
The other group that styrene goes into is synthetic rubber like styrene butadiene rubber, and styrene butadiene latex. These synthetic rubbers are then used to make items like automobile tyres and a host of rubber products.
The main merchant market for styrene is China, which has been growing at a relatively high rate annually. The Asian styrene market is spot driven, with values of most term contracts derived from spot prices.