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According to the latest research report of SRI Consulting (SRIC), the global polystyrene (PS) market demand is expected to grow at an average annual rate of 2% in the next five years, while the Chinese market will be the fastest growing at an annual growth rate of 5.9%. Area. However, due to the high price of styrene monomer and the slow growth in demand, SRIC consultants pointed out that by the end of 2009, the world's PS operating rate will inevitably drop.
PS is mainly used in the production of packaging containers, daily necessities, electrical appliances, and electronics. The production capacity of the world's PS has reached new heights due to the rapid growth of production capacity in Asia in the past two decades. By the end of the last century, production capacity has exceeded 13 million tons, while the same period The world's PS consumption is only about 10 million tons/year. As of the end of 2006, the global PS production capacity has reached 14.8 million tons / year.
Market analysts pointed out that PS's weak profitability and its unfavorable outlook have prompted global PS makers to conduct business restructuring to reduce costs. Dow Chemical and Chevron Phillips have agreed to establish a styrene polymer joint venture to merge and reorganize their styrene and PS assets in the Americas to reduce production costs and increase competitiveness in the industry. Specifically, Dow will integrate its 170,000-ton/year styrene plant in Brazil into a joint venture company. It will also include six PS units (one each in Connecticut, Ohio, Illinois and California, and one each in Brazil and Colombia). . Chevron Phillips will take out the 950,000 tonne/year styrene plant in St. James, Louisiana, and the PS unit in Marietta, Ohio. At the same time, Nova Chemicals and Ineos will also merge and restructure the styrene polymer devices in Europe and set up a European styrene polymer joint venture.
Peter Feng, CMAI styrene business manager in Houston, said that due to the market downturn, North America and Western Europe will shut down 642,000 tons/year of PS capacity from 2006 to 2007. These include the 136,000 tonne/year PS unit that was closed in 2006 by Nova Chemicals in Chesapeake, Virginia, and the Dow Chemical PS unit in Sarnia, Canada.
According to Feng, the shutdown of PS production capacity in Europe and North America has spread to other parts of the world since 2006, and will result in a reduction in global net capacity of PS by 234,000 tons in 2007. However, in the next three years, the world will still add 882,000 tons/year of PS capacity, mainly in Northeast Asia and the Middle East. Feng added that in the next two years, Northeast Asia will add 47,000 tons/year of PS capacity, while the Middle East will add 215,000 tons/year. The production of new capacity in the Middle East and Asia, and the slowdown in demand, will reduce the profitability of global PS manufacturers. It is expected that the operating rate of global PS devices will remain at a low level of around 75%. v
PS is mainly used in the production of packaging containers, daily necessities, electrical appliances, and electronics. The production capacity of the world's PS has reached new heights due to the rapid growth of production capacity in Asia in the past two decades. By the end of the last century, production capacity has exceeded 13 million tons, while the same period The world's PS consumption is only about 10 million tons/year. As of the end of 2006, the global PS production capacity has reached 14.8 million tons / year.
Market analysts pointed out that PS's weak profitability and its unfavorable outlook have prompted global PS makers to conduct business restructuring to reduce costs. Dow Chemical and Chevron Phillips have agreed to establish a styrene polymer joint venture to merge and reorganize their styrene and PS assets in the Americas to reduce production costs and increase competitiveness in the industry. Specifically, Dow will integrate its 170,000-ton/year styrene plant in Brazil into a joint venture company. It will also include six PS units (one each in Connecticut, Ohio, Illinois and California, and one each in Brazil and Colombia). . Chevron Phillips will take out the 950,000 tonne/year styrene plant in St. James, Louisiana, and the PS unit in Marietta, Ohio. At the same time, Nova Chemicals and Ineos will also merge and restructure the styrene polymer devices in Europe and set up a European styrene polymer joint venture.
Peter Feng, CMAI styrene business manager in Houston, said that due to the market downturn, North America and Western Europe will shut down 642,000 tons/year of PS capacity from 2006 to 2007. These include the 136,000 tonne/year PS unit that was closed in 2006 by Nova Chemicals in Chesapeake, Virginia, and the Dow Chemical PS unit in Sarnia, Canada.
According to Feng, the shutdown of PS production capacity in Europe and North America has spread to other parts of the world since 2006, and will result in a reduction in global net capacity of PS by 234,000 tons in 2007. However, in the next three years, the world will still add 882,000 tons/year of PS capacity, mainly in Northeast Asia and the Middle East. Feng added that in the next two years, Northeast Asia will add 47,000 tons/year of PS capacity, while the Middle East will add 215,000 tons/year. The production of new capacity in the Middle East and Asia, and the slowdown in demand, will reduce the profitability of global PS manufacturers. It is expected that the operating rate of global PS devices will remain at a low level of around 75%. v
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