Benzene to remain volatile on supply issues – executive
Truong Mellor
13-Nov-2012
BERLIN
(ICIS)–Global benzene volatility is expected to continue
amid availability challenges and lower benzene, toluene,
xylene (BTX) extraction, said
Craig Barry, global business director, aromatics at Dow
Chemical, on Tuesday.
Speaking at the 11th World Aromatics
& Derivatives Conference in Berlin, Germany, Barry said
that the current dynamic of volatility is largely because
benzene is a co-product of large markets such as gasoline and
ethane.
It is the considerations of
these markets rather than benzene demand that drives the
global supply of benzene, and benzene has been impacted by
regional changes in BTX extraction.
“The refinery guy is not
thinking about BTX,” Barry explained, citing high octane
gasoline and hydrogen supply as higher priorities. “This is
shifting, but it takes time.”
While there are several on
purpose benzene production solutions like HDA
(hydrodealkylation) and TDP (toluene disproportionation),
Barry said that these are not often viable.
“We have the technological
capability, but the economics are not right a lot of the
time,” he said. “Toluene prices follow benzene, and for the
same reasons.”
Benzene prices in both
Europe and North America have soared this year on
continued feedstock supply issues.
Barry identified several reasons for the reduced output
of pyrolysis gasoline (pygas), including more ethanol
displacing reformate in the US gasoline pool amid flat
demand, and news US shale oil production yielding less
benzene.
He also noted that China is targeting a
reduction on their dependence on imported naphtha, which will
mean reduced aromatics availability.
“Markets will respond and rebalance
themselves,” said Barry, drawing parallels to the butadiene
market a few years ago. “The question is one
of timing and the extent to which these changes are
structural as opposed to cyclical.”
The 11th World Aromatics & Derivatives Conference, organised by ICIS and International eChem, is taking place in Berlin on 13-14 November 2012.
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