CEH ethylbenzene

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CEH Marketing Research Report

ETHYLBENZENE By Sean Davis

CEH Marketing Research Reports provide comprehensive analysis, historical data and forecasts pertaining to the international competitive market environment for chemical products. Detailed supply and demand data are developed for the United States, WesternEurope, Japan and other relevant countries or regions with the cooperation of chemical producers and consumers worldwide. Updated information may be available from the following CEH Program services: q

q

q

q

SRIC Web Library—Available Library—Available at ww w.sriconsulting.com. Manual of Current Indicators (MCI)—Updates (MCI)—Updates of statistical data derived from published sources. Issued semiannually. Economic The Economic Environment of the Chemical Industry (EECI)— (EECI)—Economic indicators that impact the chemical industry. Issued semiannually. SRI Consulting researchers are available to answer your CEH Inquiry Service— Service—SRI questions. U.S.A.—Telephone: Zürich—Telephone: Tokyo—Telephone:

650/384-4334 4144/283-6333 813/5202-7320

Fax: Fax: Fax:

650/330-1149 4144/283-6330 813/5202-7333

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The information provided in this publication has been obtained from a variety of sources, which SRI Consulting believes to be reliable. SRI Consulting makes no warranties as to the accuracy, completeness or correctness of the information in this publication. Consequently, SRI Consulting will not be liable for any technical inaccuracies, typographical errors or omissions contained in this publication. This publication is provided without warranties of any kind, either express or implied, including but not limited to, implied warranties of merchantability, fitness for a particular purpose, or non-infringement. IN NO EVENT WILL SRI CONSULTING BE LIABLE FOR ANY INCIDENTAL, CONSEQUENTIAL OR INDIRECT DAMAGES (INCLUDING BUT NOT LIMITED TO DAMAGES FOR LOSS OF PROFITS, BUSINESS INTERRUPTION, OR THE LIKE) ARISING OUT OF THE USE OF THIS PUBLICATION, EVEN IF IT WAS NOTIFIED ABOUT THE POSSIBILITY OF SUCH DAMAGES. BECAUSE SOME STATES DO NOT ALLOW THE EXCLUSION OR LIMITATION OF LIABILITY FOR CONSEQUENTIAL OR INCIDENTAL DAMAGES, THE ABOVE LIMITATION MAY NOT APPLY TO YOU. IN SUCH STATES SRI CONSULTING’S LIABILITY IS LIMITED TO THE MAXIMUM EXTENT PERMITTED BY SUCH LAW. Certain statements in this publication are projections or other forward-looking statements. Any such statements contained herein are based upon SRI Consulting’s current knowledge and assumptions about future events, including, without limitation, anticipated levels of global demand and supply, expected costs, trade patterns, and general economic, political, and marketing conditions. Although SRI Consulting believes that the expectations reflected in the forward-looking statements are reasonable, it cannot, and does not, guarantee, without limitation, future results, levels of activity, performance or achievements. Readers should verify through independent third-party sources any estimates, projections or other forward-looking statements or data contained herein before reaching any conclusions or making any investment decisions. SRI Consulting is not responsible for the Reader’s use of any information in this publication. The absence of a specific trademark designation within this publication does not mean that proprietary rights may not exist in a particular name. No listing, description or designation in this publication is to be construed as affecting the scope, validity, or ownership of any trademark rights that may exist therein. SRI Consulting makes no warranties as to the accuracy of any such listing, description or designation, nor to the validity or ownership of any trademark.

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The information provided in this publication has been obtained from a variety of sources, which SRI Consulting believes to be reliable. SRI Consulting makes no warranties as to the accuracy, completeness or correctness of the information in this publication. Consequently, SRI Consulting will not be liable for any technical inaccuracies, typographical errors or omissions contained in this publication. This publication is provided without warranties of any kind, either express or implied, including but not limited to, implied warranties of merchantability, fitness for a particular purpose, or non-infringement. IN NO EVENT WILL SRI CONSULTING BE LIABLE FOR ANY INCIDENTAL, CONSEQUENTIAL OR INDIRECT DAMAGES (INCLUDING BUT NOT LIMITED TO DAMAGES FOR LOSS OF PROFITS, BUSINESS INTERRUPTION, OR THE LIKE) ARISING OUT OF THE USE OF THIS PUBLICATION, EVEN IF IT WAS NOTIFIED ABOUT THE POSSIBILITY OF SUCH DAMAGES. BECAUSE SOME STATES DO NOT ALLOW THE EXCLUSION OR LIMITATION OF LIABILITY FOR CONSEQUENTIAL OR INCIDENTAL DAMAGES, THE ABOVE LIMITATION MAY NOT APPLY TO YOU. IN SUCH STATES SRI CONSULTING’S LIABILITY IS LIMITED TO THE MAXIMUM EXTENT PERMITTED BY SUCH LAW. Certain statements in this publication are projections or other forward-looking statements. Any such statements contained herein are based upon SRI Consulting’s current knowledge and assumptions about future events, including, without limitation, anticipated levels of global demand and supply, expected costs, trade patterns, and general economic, political, and marketing conditions. Although SRI Consulting believes that the expectations reflected in the forward-looking statements are reasonable, it cannot, and does not, guarantee, without limitation, future results, levels of activity, performance or achievements. Readers should verify through independent third-party sources any estimates, projections or other forward-looking statements or data contained herein before reaching any conclusions or making any investment decisions. SRI Consulting is not responsible for the Reader’s use of any information in this publication. The absence of a specific trademark designation within this publication does not mean that proprietary rights may not exist in a particular name. No listing, description or designation in this publication is to be construed as affecting the scope, validity, or ownership of any trademark rights that may exist therein. SRI Consulting makes no warranties as to the accuracy of any such listing, description or designation, nor to the validity or ownership of any trademark.

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TABLE OF CONTENTS Summary............... Summary....................... ................. ................. ................ ................ ................ ................ ................. ................. ................ ................ ................ ................ ................ ................. ................. ........

4

Manufactu Manufacturing ring Processes.............. Processes...................... ................. ................. ................ ................ ................ ................ ................. ................. ................ ................ ................ ................ .......... Benzene Benzene Alkylati Alkylation on ................. ......................... ................ ................ ................ ................. ................. ................ ................ ................ ................ ................. ................. ................ ........... Superfracti Superfractionati onation...... on.............. ................ ................ ................. ................. ................ ................ ................ ................ ................. ................. ................ ................ ................ ................ ........ Other ................ ......................... ................. ................ ................ ................ ................ ................. ................. ................ ................ ................ ................ ................ ................ ................. ................. .......... Catalysts....... Catalysts............... ................ ................. ................. ................ ................ ................ ................ ................. ................. ................ ................ ................ ................ ................ ................ .............. ......

6 7 7 7 8

Supply Supply and Demand Demand by Region Region ................ ........................ ................ ................ ................. ................. ................ ................ ................ ................ ................. ................ ............. ...... United United States States ................. ......................... ................ ................ ................ ................ ................. ................. ................ ................ ................ ................ ................ ................ ................. .............. ..... Producing Producing Companies............... Companies....................... ................ ................ ................ ................ ................. ................. ................ ................ ................ ................ ................ .............. ...... Salient Salient Statistics......... Statistics................. ................ ................ ................ ................. ................. ................ ................ ................ ................ ................. ................. ................ ................ ............ .... Price....................... Price............................... ................ ................. ................. ................ ................ ................ ................ ................. ................. ................ ................ ................ ................ ............... ......... Trade...................... Trade.............................. ................ ................ ................. ................. ................ ................ ................ ................ ................. ................. ................ ................ ................ ................ ........ Imports........... Imports................... ................ ................. ................. ................ ................ ................ ................ ................. ................. ................ ................ ................ ................ ................ ........... ..... Exports........... Exports................... ................ ................. ................. ................ ................ ................ ................ ................. ................. ................ ................ ................ ................ ................ ........... ..... Canada Canada ................ ........................ ................. ................. ................ ................ ................ ................ ................. ................. ................ ................ ................ ................ ................ ................ .............. ........ Producing Producing Companies............... Companies....................... ................ ................ ................ ................ ................. ................. ................ ................ ................ ................ ................ .............. ...... Salient Salient Statistics......... Statistics................. ................ ................ ................ ................. ................. ................ ................ ................ ................ ................. ................. ................ ................ ............ .... Mexico Mexico ................ ........................ ................. ................. ................ ................ ................ ................ ................. ................. ................ ................ ................ ................ ................ ................ .............. ........ Producing Producing Companies............... Companies....................... ................ ................ ................ ................ ................. ................. ................ ................ ................ ................ ................ .............. ...... Salient Salient Statistics......... Statistics................. ................ ................ ................ ................. ................. ................ ................ ................ ................ ................. ................. ................ ................ ............ .... Central Central and South America............... America....................... ................ ................ ................ ................. ................. ................ ................ ................ ................ ................ ................ .......... .. Producing Producing Companies............... Companies....................... ................ ................ ................ ................ ................. ................. ................ ................ ................ ................ ................ .............. ...... Salient Salient Statistics......... Statistics................. ................ ................ ................ ................. ................. ................ ................ ................ ................ ................. ................. ................ ................ ............ .... Western Western Europe... Europe........... ................ ................. ................. ................ ................ ................ ................ ................. ................. ................ ................ ................ ................ ................ ............... ....... Producing Producing Companies............... Companies....................... ................ ................ ................ ................ ................. ................. ................ ................ ................ ................ ................ .............. ...... Salient Salient Statistics......... Statistics................. ................ ................ ................ ................. ................. ................ ................ ................ ................ ................. ................. ................ ................ ............ .... Central Central and Eastern Europe Europe ................ ........................ ................ ................ ................ ................. ................. ................ ................ ................ ................ ................ ............... ......... Producing Producing Companies............... Companies....................... ................ ................ ................ ................ ................. ................. ................ ................ ................ ................ ................ .............. ...... Salient Salient Statistics......... Statistics................. ................ ................ ................ ................. ................. ................ ................ ................ ................ ................. ................. ................ ................ ............ .... Africa Africa and the Middle East ................ ........................ ................ ................. ................. ................ ................ ................ ................ ................. ................. ................ ................ ........ Producing Producing Companies............... Companies....................... ................ ................ ................ ................ ................. ................. ................ ................ ................ ................ ................ .............. ...... Salient Salient Statistics......... Statistics................. ................ ................ ................ ................. ................. ................ ................ ................ ................ ................. ................. ................ ................ ............ .... Asia ................. ......................... ................ ................ ................ ................ ................. ................. ................ ................ ................ ................ ................. ................. ................ ................ ................ ........... ... Japan ................ ......................... ................. ................ ................ ................ ................ ................. ................. ................ ................ ................ ................ ................ ................ ................. .............. ..... Producing Producing Companies............... Companies....................... ................ ................ ................ ................. ................. ................ ................ ................ ................ ................. ................ ......... .. Salient Salient Statistics......... Statistics................. ................ ................ ................. ................. ................ ................ ................ ................ ................. ................. ................ ................ ................ ........ China............... China....................... ................ ................. ................. ................ ................ ................ ................ ................. ................. ................ ................ ................ ................ ................ ............... ....... Producing Producing Companies............... Companies....................... ................ ................ ................ ................. ................. ................ ................ ................ ................ ................. ................ ......... .. Salient Salient Statistics......... Statistics................. ................ ................ ................. ................. ................ ................ ................ ................ ................. ................. ................ ................ ................ ........ Republic Republic of Korea................ Korea........................ ................ ................ ................ ................ ................. ................. ................ ................ ................ ................ ................ ................ ........... ... Producing Producing Companies............... Companies....................... ................ ................ ................ ................. ................. ................ ................ ................ ................ ................. ................ ......... .. Salient Salient Statistics......... Statistics................. ................ ................ ................. ................. ................ ................ ................ ................ ................. ................. ................ ................ ................ ........ Taiwan Taiwan ................ ......................... ................. ................ ................ ................ ................ ................. ................. ................ ................ ................ ................ ................ ................ ................. ............ Producing Producing Companies............... Companies....................... ................ ................ ................ ................. ................. ................ ................ ................ ................ ................. ................ ......... .. Salient Salient Statistics......... Statistics................. ................ ................ ................. ................. ................ ................ ................ ................ ................. ................. ................ ................ ................ ........

8 8 8 9 10 11 11 13 14 14 14 15 15 15 16 16 16 17 17 19 20 20 21 22 22 23 24 24 24 25 26 26 29 29 29 30 31 31 32

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TABLE OF CONTENTS (continued) Other Asia........................................................................................................................................ 32 Producing Companies.................................................................................................................. 32 Salient Statistics........................................................................................................................... 33 Oceania ................................................................................................................................................ 34 Producing Companies...................................................................................................................... 34 Salient Statistics............................................................................................................................... 35 Bibliography ............................................................................................................................................

35

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ETHYLBENZENE

SUMMARY Nearly all ethylbenzene produced in the world is used in the manufacture of styrene; therefore, ethylbenzene demand is determined primarily by styrene production. Styrene is used mostly in polymer production for polystyrene, acrylonitrile-butadiene-styrene (ABS) and styrene-acrylonitrile (SAN) resins, styrene-butadiene elastomers and latexes, and unsaturated polyester resins. The major styrene markets include packaging, electrical/electronics/appliances, construction and consumer products. Consumption of ethylbenzene for uses other than the production of styrene is estimated to be less than 1%. These applications include use as a solvent and, on occasion, in the production of diethylbenzene, acetophenone and ethyl anthraquinone. The following table summarizes world supply and demand for ethylbenzene. World Supply/Demand for Ethylbenzene—2008 (thousands of metric tons)

Annual Capacity 2009a

North America United States Canada Mexico

2013

2008

2013

Average Annual Consumption Growth Rate, 2008-2013 (percent)

–0.2 –0.5 9.0

Consumption Production

Imports

Exports

6,082 927 174

5,508 927 282

4,816 839 146

2 neg neg

20 neg 0

4,798 839 146

4,750 820 225

7,183

6,717

5,801

2

20

5,783

5,795

Central and South America b Western Europe c Central and Eastern Europe d Africa and the Middle East e

1,139 6,837 1,233 2,722

1,219 6,837 1,453 4,072

479 5,712 919 1,209

39 567 115 0

22 583 97 0

496 5,696 937 1,209

805 5,400 1,100 2,750

10.2 –1.1 3.3 17.9

Asia China Japan Republic of Korea Taiwan Other Asiaf

4,239 3,751 3,559 2,115 2,223

6,682 3,334 3,559 2,115 2,255

2,761 3,248 3,218 2,072 2,076

0 0 0 neg neg

neg neg 0 0 neg

2,761 3,248 3,218 2,072 2,076

5,800 2,980 2,950 2,050 2,100

16.0 –1.7 –1.7 –0.2 0.2

15,887

17,945

13,375

0

0

13,375

15,880

135

0

73

0

0

73

0

35,136

38,243

27,568

723

722

27,569

31,730

Total North America

Total Asia Oceania Total

0.0%

3.5% –100.0 2.9%

a.

Data as of midyear 2009.

b.

Data include Argentina, Brazil, Chile, Colombia, Peru and Venezuela.

c.

Data include Austria, Belgium, Finland, France, Germany, Greece, Italy, the Netherlands, Norway, Portugal, Spain, Sweden and the United Kingdom.

d.

Data include the Czech Republic, Hungary, Poland, Romania, Russia, Serbia, Slovakia and Ukraine.

e.

Data include all of Africa, Iran, Saudi Arabia, Turkey and the United Arab Emirates.

f.

Includes Hong Kong, India, Indonesia, Malaysia, the Philippines, Singapore and Thailand.

SOURCE:

CEH estimates.

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The following table presents estimated operating rates of ethylbenzene units by region in 2008: Ethylbenzene Utilization Rates by Region—2008 Region

North America United States Canada Mexico Central and South America Western Europe Central and Eastern Europe Africa and the Middle East Asia China Japan Republic of Korea Taiwan Other Asia Oceania Total SOURCE:

Operating Rate (percent)

80.8 79.2 90.5 83.9 41.7 76.4 74.5 54.9 87.3 76.0 85.5 90.4 98.0 93.4 54.1 79.4%

CEH estimates.

Global ethylbenzene operating rates declined in 2008 as the global economic recession resulted in diminished styrene demand. In the United States, Western Europe and Japan, producers contended with rising feedstock pricing and oversupply through capacity reductions and the formation of joint ventures. In the Middle East and China, ethylbenzene/styrene capacity continues to increase to meet anticipated demand growth. Central and South America utilization rates were low in 2008 due to the completion of Innova’s new ethylbenzene/styrene facility in Triunfo, Brazil which began operation late in the year, nearly doubling the region’s supply. Global operating rates should improve between 2009 and 2010 as markets slowly recover. World ethylbenzene demand will increase at an average annual rate of 2.9% from 2008 to 2013, resulting in a total demand of 31.7 million metric tons in 2013. Consumption is expected to grow the fastest in the Middle East and China.

MANUFACTURING PROCESSES Currently, two commercial processes are widely used in the manufacture of ethylbenzene. The processes are vapor-phase alkylation, which employs a zeolite catalyst, and liquid-phase alkylation using an AlCl3 based catalyst or a zeolite-based catalyst. Approximately 99% of ethylbenzene is produced by the FriedelCrafts alkylation between benzene and ethylene. Ethylbenzene is also isolated by a commercial distillation process known as superfractionation; however, only small amounts of the ethylbenzene produced worldwide are manufactured by this process. The maximum theoretical yield for styrene conversion is over 98%. Yields of styrene from ethylbenzene range from 85-90% for older plants to 92% and above for newer plants. The current average industry yield of 89-90% for styrene production corresponds to an estimated 1.15 kilograms of ethylbenzene consumed per kilogram of styrene.

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ETHYLBENZENE

BENZENE ALKYLATION Ethylbenzene is produced primarily by the Friedel-Crafts alkylation of benzene with ethylene, followed by a distillation to purify and isolate the product. The industry uses two types of alkylation processes: the liquid-phase process and the vapor-phase process. AlCl 3 and zeolite catalyst alkylation processes are used commercially. The zeolite-based catalyst processes are either liquid phase or vapor phase. The liquid-phase AlCl 3 process involves low temperature and pressure with an aluminum chloride catalyst. Many variations of the AlCl 3 catalyst–based process are used throughout the industry. One widely used version is the Mobil/Badger process, which, like many of the other patented processes, can achieve a yield of over 99%. The vapor-phase zeolite process requires a higher temperature and pressure (over 300 C and 900 psi) than the liquid-phase process. Solid phosphoric acid catalysts or alumina-silica catalysts (synthetic zeolites) are used in this process. The vapor-phase process has distinct advantages over the liquid-phase AlCl 3 process: the reaction mixture is heterogeneous and noncorrosive, aqueous waste treatment facilities are not required and heat produced by the reaction can be recovered and used. Although liquid-phase AlCl 3 plants will continue to operate in the future, all plants built in the next few years will be based on vaporphase zeolite technology. The Friedel-Crafts reaction is as follows: °

C6H6

+

CH2

CH 2

C6 H5CH 2CH 3

benzene

ethylene

ethylbenzene

78.1

28.0

106.1

mol wt:

Approximately 0.11 kilogram of ethylene and 0.34 kilogram of benzene are consumed per kilogram of ethylbenzene produced.

SUPERFRACTIONATION Approximately 1% of world capacity is based on the separation of ethylbenzene from mixed xylenes streams. This process is known as superfractionation. Mixed xylenes streams are generally produced from refinery reformate and to a lesser extent from the pyrolysis gasoline stream from ethylene crackers that process naphtha or gas oil. Recovery of ethylbenzene from a mixed aromatics stream requires distillation towers with over 300 trays in series and a high reflux ratio. This process is expensive because of the difficulty of separating ethylbenzene from other similar boiling compounds.

OTHER Dow developed a process that selectively upgrades butadiene in a raw C 4 stream to styrene, producing raffinate-1 (a mixture of C4 hydrocarbons except butadiene) as a by-product. More recently, DSM announced a lower-cost butadiene-based process in which butadiene is converted by catalytic dimerization to vinyl cyclohexane; after purification, it is dehydrogenated to ethylbenzene. At present there are no known commercial applications of either process.

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CATALYSTS A majority of newer ethylbenzene units in the world utilize zeolite-based catalyst technology; with many of the older units still using aluminum chloride–based catalyst in a liquid-phase process. Recent developments in Fischer-Tropsch and vanadium-based catalysts, as well as derivations of existing technologies, are ongoing in an effort to increase yields and reduce capital and operating costs.

SUPPLY AND DEMAND BY REGION UNITED STATES P RODUCING COMPANIES

The following table presents ethylbenzene producers, plant locations and capacities in the United States: U.S. Producers of Ethylbenzene

Company and Plant Location

Annual Capacity as of Mid-2009 (thousands of metric tons)

Americas Styrenicsa St. James, LA

945

Chevron Phillips Chemical Pascagoula, LA

131

Cos-Mar Companyb Carville, LA

1,280

Dow Chemical U.S.A. c Freeport, TX

574

INEOS NOVA d Bayport, TX Texas City, TX

880 510

LyondellBasell Channelview, TX Westlake Styrene Corporation Sulphur, LA Total

1,472 290 6,082

a.

Company is a joint venture between Chevron Phillips Chemical (50%) and Dow Chemical (50%).

b.

Company is a joint venture between SABIC Innovative Plastics (50%) and Total Petrochemicals (50%).

c.

Company will close ethylbenzene and styrene production by year-end 2009.

d.

Company is a joint venture between INEOS Group (50%) and NOVA Chemicals (50%).

SOURCE:

CEH estimates.

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ETHYLBENZENE

The U.S. ethylbenzene and styrene industry underwent a number of major changes over the past several years highlighted by the closure of Sterling Chemicals in 2007 and the formation of new joint ventures in 2008. In September 2009, Dow furthered its own reorganization plan by confirming the closure of ethylbenzene and styrene monomer production at Freeport, Texas by year-end. Total U.S. ethylbenzene capacity will have dropped a total of 23% between 2007 and 2009, bringing U.S. styrene supply and demand closer into balance.

SALIENT STATISTICS

The following table presents salient statistics for ethylbenzene: U.S. Supply/Demand for Ethylbenzene (thousands of metric tons) Production Estimated Consumptionb

Reported

Estimated

Importsa

Exportsa

1985

3,350

3,988

30

75

3,943

1990 1991 1992 1993 1994

4,076 4,024 5,039 5,333 5,383

4,229 4,286 4,696 5,213 5,833

37 3 5 36 25

116 89 55 16 28

4,150 4,200 4,647 5,233 5,830

1995 1996 1997 1998 1999

6,193 4,699 5,432 5,743 5,945

5,832 6,157 5,921 5,915 6,129

34 7 3 1 <1

9 57 78 54 10

5,856 6,107 5,846 5,862 6,119

2000 2001 2002 2003 2004

5,968 4,642 5,412 5,579 5,779

6,134 4,730 5,551 5,689 5,890

<1 38 <1 49 9

33 8 19 15 6

6,101 4,760 5,532 5,723 5,893

2005 2006 2007 2008 2009

5,251 5,286 5,664 4,104 --

5,670 5,397 5,711 4,816 4,405

35 0 0 2 neg

9 3 16 20 1

5,696 5,394 5,695 4,798 4,404

2013

--

4,750

--

--

4,750

See MANUAL OF CURRENT INDICATORS for additional information. a.

Reported under the following import and export code numbers: 1985 404.0540 1990-2009 2902.60.00.00

b.

Data for ESTIMATED CONSUMPTION are calculated as ESTIMATED PRODUCTION plus IMPORTS minus EXPORTS.

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ETHYLBENZENE

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(A) Synthetic Organic Chemicals, U.S. Production and Sales , U.S. International Trade Commission (data for REPORTED PRODUCTION for 1985 and 1990-1994). (B) Petrochemical Surveys , National Petroleum Refiners Association (data for REPORTED PRODUCTION for 1995-2001 and 2003-2008). (C) Petrochemical Surveys-Second Quarter 2002 , National Petroleum Refiners Association (datum for REPORTED PRODUCTION for 2002). (D) Imports of Benzenoid Chemicals and Products , U.S. International Trade Commission (datum for IMPORTS for 1985). (E) U.S. Imports , U.S. Department of Commerce, Bureau of the Census (data for IMPORTS for 1990-1998). (F) U.S. Exports , U.S. Department of Commerce, Bureau of the Census (data for EXPORTS for 1985 and 1990-1998). (G) World Trade Atlas, Global Trade Information Services, Inc. (data for IMPORTS and EXPORTS for 1999-2009). (H) CEH estimates (all other data).

U.S. production of ethylbenzene by distillation from mixed xylenes streams is estimated at less than a thousand metric tons per year. All styrene producers in the United States have captive ethylbenzene capacity. In addition, small quantities of ethylbenzene are occasionally sold to the solvent market by styrene producers, particularly when demand for styrene is soft. Ethylbenzene sales generally account for only a small percentage of total production. Practically all ethylbenzene produced in the United States is consumed in the manufacture of styrene. Major polymer applications include polystyrene, SB elastomers and latexes and ABS/SAN resins. Some nonpolymer applications include rubber antioxidants, diluents for epoxy resin manufacture and use in varnishes. Ethylbenzene demand averaged 5% per year declines as styrene and derivatives markets shrank between 2004 and 2008. Future ethylbenzene demand is anticipated to decline an estimated 0.2% per year on average between 2008 and 2013 as styrene outlets begin to slowly improve over the forecast period.

P RICE

The following table presents historical data on the unit trade values for ethylbenzene:

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U.S. Unit Trade Values for Ethylbenzene a (dollars per metric ton) Unit Import Value

Unit Export Value

1999

28.5

55.8

2000 2001 2002 2003 2004

31.2 50.9 97.4 58.0 100.2

56.3 46.9 42.4 47.2 116.3

2005 2006 2007 2008 2009

96.7 585.2 816.8 889.5 63.0

106.0 104.9 113.8 119.2 225.8

a.

Data are calculated from rounded data on sales and value of sales and are only approximations of average yearly values.

SOURCE:

World Trade Atlas, Global Trade Information Services, Inc.

Since almost all of the ethylbenzene produced is captively consumed by styrene producers, ethylbenzene prices fluctuate based on raw material (benzene and ethylene) prices and the demand for nonstyrene applications.

TRADE Imports

The following table presents U.S. imports of ethylbenzene:

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U.S. Imports of Ethylbenzene a Quantity (thousands of metric tons)

Value (millions of dollars)

1975

0.4b

--

Western Europe

1980

18.7 b

--

Canada

1985

29.9 b

--

Netherlands

1990 1991 1992 1993 1994

37.2 3.1 5.4 35.5 25.1

10.0 2.0 2.8 12.4 13.0

1995 1996 1997 1998 1999

33.7 7.2 3.3 0.5 0.2

16.3 2.4 1.5 0.3 neg

Netherlands and Brazil Brazil and United Kingdom Canada and United Kingdom Canada and Germany Canada

2000 2001 2002 2003 2004

0.3 37.6 0.1 49.4 8.5

0.1 19.1 neg 28.6 8.5

Canada Canada and Netherlands Canada Canada and Netherlands Canada

2005 2006 2007 2008 2009

35.5 0.01 0.01 2.1 neg

34.3 0.05 0.1 1.8 --

Primary Country/ Region of Origin

Netherlands Canada Netherlands and Canada Netherlands and Canada Netherlands

Canada Spain Germany Brazil Canada and Netherlands

a.

Reported under import code # 2902.60.00.00.

b.

Data for 1975-1985 list imports from principal sources and may not represent total ethylbenzene imports.

SOURCES:

(A) Imports of Benzenoid Chemicals and Products, U.S. International Trade Commission (data for 1975 and 1980). (B) World Petrochemicals Program, SRI Consulting (data for 1985). (C) U.S. Imports , U.S. Department of Commerce, Bureau of the Census (data for 1990-1998). (D) World Trade Atlas, Global Trade Information Services, Inc. (data for 1999-2009).

Since 1990, the United States has imported the bulk of its ethylbenzene from Canada. Imports have not been a major factor in domestic supply/demand accounting for less than 1% of U.S. ethylbenzene consumption.

December 2009 645.3000 M


ETHYLBENZENE

Currently, there is no import duty for ethylbenzene coming from Canada, the Caribbean Basin, the Andean countries (Argentina, Bolivia, Chile, Colombia, Ecuador, Peru and Venezuela) and Mexico. The import duty on ethylbenzene for the rest of the world is 15.4 cents per kilogram plus 55% ad valorem .

Exports

The following table presents U.S. exports of ethylbenzene: U.S. Exports of Ethylbenzene a Quantity (thousands of metric tons)

Value (millions of dollars)

1975

38.2

8.4

1980

23.8

13.2

1985

74.8

39.2

1990 1991 1992 1993 1994

116.4 88.9 54.9 15.8 28.3

73.8 45.2 14.6 5.1 13.6

1995 1996 1997 1998 1999

9.5 57.1 78.4 54.4 10.0

5.2 23.1 32.0 19.2 5.6

2000 2001 2002 2003 2004

33.3 8.0 18.8 15.1 6.1

18.7 3.8 8.0 7.1 7.1

2005 2006 2007 2008 2009

8.9 2.7 15.7 20.2 1.0

9.4 2.9 17.8 24.2 2.3

a.

Data are reported under the following export code numbers: 1975, 1980 1985 1990-2006

SOURCES:

511.0260 404.0540 2902.60.00.00

(A) U.S. Exports , U.S. Department of Commerce, Bureau of the Census (data for 1975-1998). (B) World Trade Atlas, Global Trade Information Services, Inc. (data for 1999-2009).

U.S. exports peaked in 1990 at 116 thousand metric tons dropping significantly by 1995 to only 9.5 thousand metric tons before rebounding slightly in 1996-1998. Since 1999, U.S. exports have not reached significant levels. Over 70% of exported material is delivered to the Netherlands.

December 2009 645.3000 N


ETHYLBENZENE

CANADA P RODUCING COMPANIES

The following table presents ethylbenzene producers, plant locations and capacities in Canada: Canadian Producers of Ethylbenzene Annual Capacity as of Mid-2009 (thousands of metric tons)

Company and Plant Location

INEOS NOVA a Sarnia, ON

477

Shell Chemicals Canada Scotford, AB

450

Total a.

927

Company is a joint venture between INEOS Group (50%) and NOVA Chemicals (50%).

SOURCE:

CEH estimates.

SALIENT STATISTICS

The following table presents Canadian salient statistics for ethylbenzene: Canadian Supply/Demand for Ethylbenzene (thousands of metric tons) Production

Imports

Exports

Apparent Consumptiona

2000 2001 2002 2003 2004

903 864 889 977 940

0.2 0.2 0.2 0.3 0.2

0.3 30 neg 18 8

903 834 889 959 932

2005 2006 2007 2008 2009

839 876 912 839 797

0.2 0.1 0.1 0.2 0.4

35 0 0 neg neg

804 876 912 839 797

2013

820

--

--

820

a.

PRODUCTION plus IMPORTS minus EXPORTS.

SOURCES:

(A) Global Trade Information Services, Inc. (data for IMPORTS and EXPORTS). Reported under harmonized code # 2902.60.00.00. (B) CEH estimates (data for PRODUCTION and APPARENT CONSUMPTION).

All ethylbenzene is consumed in the manufacture of styrene. Canadian styrene exports account for over 65% of total styrene production. Ethylbenzene trade to and from Canada is solely with the U.S.

December 2009 645.3000 O


ETHYLBENZENE

MEXICO P RODUCING COMPANIES

The following table lists the Mexican ethylbenzene producer with its plant location and capacity: Mexican Producers of Ethylbenzene Annual Capacity as of Mid-2009 (thousands of metric tons) Company and Plant Location

PEMEX La Cangrejera, Veracruz SOURCE:

2009

2014

174

282

CEH estimates.

SALIENT STATISTICS

The following table presents Mexican salient statistics for ethylbenzene. Mexican Supply/Demand for Ethylbenzene (thousands of metric tons) Production

Imports

Exports


2000 2001 2002 2003 2004

158 140 140 114 179

0.3 0.3 0.4 0.3 0.3

------

158 140 140 114 179

2005 2006 2007 2008 2009

160 153 151 146 143

0.2 0.1 0.1 0.1 neg

------

160 153 151 146 143

2013

225

--

--

225

a.


SOURCES:

(A) Global Trade Information Services, Inc. (data for IMPORTS and EXPORTS). Reported under harmonized code # 2902.60.00.00 (B) CEH estimates (data for PRODUCTION and APPARENT CONSUMPTION).

Estimated ethylbenzene demand will increase as a rate of 7-9% per year. Upon completion, the expansion in Veracruz will reduce Mexico’s styrene import by nearly 50%.

December 2009 645.3000 P


ETHYLBENZENE

CENTRAL AND SOUTH AMERICA P RODUCING COMPANIES

The following table presents ethylbenzene producers, plant locations and capacities in Central and South America: Central and South American Producers of Ethylbenzene Annual Capacity as of Mid-2009 (thousands of metric tons) Company and Plant Location

2009

2014

215

215

CBE Camaçari, Bahia a Cubutão, São Paulo

180 204

260 204

Innova Triunfo, Rio Grande do Sul b

540

540

1,139

1,219

Proposed Start Date

Argentina

Petrobras Energia San Martin Brazil

Total

2010

a.

Plant was originally owned by Estireno do Nordeste (EDN). CBE acquired the plant from parent company Dow Brasil SA in 2008. Plant was idled mid-2008. Upgrading capacity from 180 thousand to 260 thousand metric tons in 2010.

b.

Innova began operation of a new 540 thousand metric ton unit in fourth quarter 2008. The start-up was followed by the closure of a smaller 190 thousand metric ton unit at the site.

SOURCE:

CEH estimates.

SALIENT STATISTICS

The following table presents Central and South American salient statistics for ethylbenzene:

December 2009 645.3000 Q


ETHYLBENZENE

Central and South American Supply/Demand for Ethylbenzene (thousands of metric tons) Imports

2000 2001 2002 2003 2004

569 551 532 544 599

10.7 8.0 6.8 1.0 12.6

2.9 4.9 -0.9 9.5

577 554 539 544 602

2005 2006 2007 2008 2009

542 633 616 479 519

41.6 51.2 29.9 38.8 0.1

42.8 50.5 29.3 22.1 --

541 634 617 496 519

2013

805

--

--

805

a.

Exports


Production


SOURCES:

(A) World Trade Atlas, Global Trade Information Services, Inc. (data for IMPORTS and EXPORTS for 2000-2009). Reported under harmonized code # 2902.60.00.00. (B) CEH estimates (data for PRODUCTION and APPARENT CONSUMPTION).

Trade in ethylbenzene in Central and South America primarily consists of exports from Petrobras in Argentina to styrene producers in Brazil and small quantities shipping from the United States. Braskem’s planned 40 thousand metric ton styrene unit will absorb additional regional surplus ethylbenzene when it comes on stream in 2010. Overall, ethylbenzene demand in Central and South America is projected to increase 10% per year between 2008 and 2013.

WESTERN EUROPE P RODUCING COMPANIES

The following table presents ethylbenzene producers, plant locations and capacities in Western Europe:

December 2009 645.3000 R


ETHYLBENZENE

Western European Producers of Ethylbenzene Company and Plant Location


Belgium

BASF Antwerpen Anwterpen

900

France

Totala Gonfrevillel l’Orcher

675

Germany

BASF Ludwigshafen

600

Dow Olefinverbund GmbH Böhlen

340

INEOS Manufacturing Deutschland b Marl

560

Shell Deutschland c Heide

12

Italy

Polimeri Europad Mantova Priolo Sarroch

600 70 40

Netherlands

Dow Benelux NV Terneuzen

750

Lyondell Chemie Nederland Botlek-Rotterdam

720

Shell Nederland Chemie BV Moerdijk

650

Spain

Repsol Química, S.A. Puertollano Tarragona

190 570

United Kingdom

Shell Chemicals UK Ellesmere Port Total

160 6,837

a.

Company closed its 360 thousand metric ton plant at Carling, France in January 2009.

b.

Formerly Innovene Deutschland.

December 2009 645.3000 S


ETHYLBENZENE

c.

Formerly DEA Mineralöl AG.

d.

Formerly EniChem SpA.

SOURCE:

CEH estimates.

Approximately 97% of the ethylbenzene manufactured in Western Europe is by the Friedel-Crafts alkylation process, with the remaining 3% manufactured via superfractionation. The companies that produce ethylbenzene from xylenes operations are Shell (formerly DEA Mineralöl) in Germany and Polimeri Europa (formerly EniChem) in Italy. The Polimeri Europa Priolo plant recovers ethylbenzene from pyrolysis gasoline obtained as a by-product of ethylene production from liquid feedstock rather than catalytic reformate. Ethylbenzene capacity declined 3-5% over the past eighteen months following plant closures by Total at Carling, France (a net 120 thousand metric ton loss following the expansion at the Gonfreville-l’Orcher site), and SABIC UK Petrochemicals (formerly Huntsman), at Stanlow, UK. With feedstock prices high and margins difficult to sustain, both BASF and Dow have begun plans to sell all or portions of their styrenics businesses.

SALIENT STATISTICS

Production, external trade and consumption of ethylbenzene in Western Europe have been as follows: Western European Supply/Demand for Ethylbenzene (thousands of metric tons) Production

Imports

Exports


1990 1991 1992 1993 1994

4,218 4,183 4,213 4,196 4,494

295 200 151 114 259

220 164 183 271 302

4,293 4,219 4,181 4,039 4,451

1995 1996 1997 1998 1999

4,436 4,520 4,817 4,975 5,113

189 229 265 306 288

231 264 268 252 244

4,393 4,485 4,814 5,029 5,157

2000 2001 2002 2003 2004

5,444 5,733 5,594 5,823 6,122

330 176 193 294 507

359 403 180 411 236

5,415 5,506 5,607 5,706 6,393

2005 2006 2007 2008 2009

6,042 5,935 5,787 5,664 5,664

543 479 573 567 469

256 340 400 583 516

6,329 6,073 5,960 5,617 5,617

2013

5,400

--

--

5,400

December 2009 645.3000 T


ETHYLBENZENE

a.


SOURCES:

(A) World Trade Atlas, Global Trade Information Services, Inc. (data for IMPORTS and EXPORTS for 2000-2009). Reported under harmonized code # 2902.60.00.00. (B) CEH estimates (data for IMPORTS and EXPORTS for 1990-1999 and PRODUCTION and APPARENT CONSUMPTION for all years).

Germany, Belgium, the Netherlands and the United Kingdom account for the majority of the ethylbenzene produced in Western Europe. Ethylbenzene consumption in Western Europe is projected to decrease at an average annual rate of 1.1% for 2008-2013, as a result of styrene and derivative capacity reductions resulting in an estimated 5.4 million metric tons of ethylbenzene consumed in 2013. It is estimated that regional ethylbenzene/styrene supply and demand has come closer into balance; however, with styrene markets soft, and derivative expansions in the Middle East and China, further capacity reductions are possible over the next few years. A considerable amount of internal trade occurs within Western Europe (approximately 140-190 thousand metric tons of ethylbenzene per year), with Germany, the Netherlands and the United Kingdom being the major traders. Following the reduction in styrene production at Dow’s Terneuzen, Netherland facility, additional ethylbenzene may become available to domestic markets, reducing imports.

CENTRAL AND EASTERN EUROPE P RODUCING COMPANIES

The following table presents ethylbenzene producers, plant locations and capacities in Central and Eastern Europe: Central and Eastern European Producers of Ethylbenzene Annual Capacity as of Mid-2009 (thousands of metric tons) Company and Plant Location

2009

2014

300

300

85

85

Czech Republic

SYNTHOS Kralupy Kralupy Poland

Petrochemia-Blachownia Kedzierzyn-Kozle

Proposed Start Date

December 2009 645.3000 U


ETHYLBENZENE

Central and Eastern European Producers of Ethylbenzene (continued) Annual Capacity as of Mid-2009 (thousands of metric tons) Company and Plant Location

2009

2014

Angarsk Petrochemical Co. Angarsk

54

54

Nizhnekamskneftekhim Nizhnekamsk

395

395

Salavatnefteorgsintez Salavat

225

225

Sibur Khimprom Perm

113

333

61

61

1,233

1,453

Proposed Start Date

Russia

2011

Slovakia

Slovnaft Petrochemicals Bratislava Total SOURCE:

CEH estimates.

In March 2009, PKN Orlen withdrew plans to build a 120 thousand metric ton ethylbenzene plant at Plock, Poland. The facility was to be operated by PKN subsidiary Etylobenzen and supply feedstock to SYNTHOS (formerly Firma Chemiczne Dwory) in Poland on a long term basis. SYNTHOS will source ethylbenzene from its affiliate in the Czech Republic. Ethylbenzene supply will still experience an 18% increase over the next few years upon completion of an expansion by Sibur Khimprom in 2011.

SALIENT STATISTICS

The following table presents Central and Eastern European salient statistics for ethylbenzene:

December 2009 645.3000 V


ETHYLBENZENE

Central and Eastern European Supply/Demand for Ethylbenzene (thousands of metric tons) Production

Imports

Exports


2000 2001 2002 2003 2004

686 667 713 758 801

48.1 77.6 90.6 66.9 66.7

56.7 50.1 55.7 49.8 48.6

677 695 748 775 819

2005 2006 2007 2008 2009

812 862 926 919 933

64.7 80.9 112.0 114.8 124.2

41.9 44.6 86.8 96.7 110.6

835 898 951 937 947

2013

1,100

--

--

1,100

a.


SOURCES:

(A) World Trade Atlas, Global Trade Information Services, Inc. (data for IMPORTS and EXPORTS for 2000-2009). Reported under harmonized code # 2902.60.00.00. (B) CEH estimates (all other data).

A jump in ABS production and steady growth by other styrene derivatives will correlate to an estimated 3 to 4% per year increase in ethylbenzene consumption between 2008 and 2013. Regional operating rates generally range from the mid-60s to mid/upper 70s (percentage basis). Trade data primarily reflect exports of ethylbenzene by SYNTHOS (the Czech Republic) and Slovnaft (Slovakia) to Polish styrene producer SYNTHOS. Negligible quantities are occasionally exported into Western European countries.

AFRICA AND THE MIDDLE EAST P RODUCING COMPANIES

The following table presents ethylbenzene producers, plant locations and capacities in Africa and the Middle East:

December 2009 645.3000 W


ETHYLBENZENE

African and Middle Eastern Producers of Ethylbenzene Annual Capacity as of Mid-2009 (thousands of metric tons) Company and Plant Location

2009

2014

--

675

107

107

520

520

--

675

850

850

1,245

1,245

2,722

4,072

Proposed Start Date

Iran

Pars Petrochemical Assaluyeh a Tabriz Petrochemical Tabriz

2009

Kuwait

Kuwait Styrene Co. b Shuaiba Qatar

Qatar Petrochemicals JV Mesaieed

2014

Saudi Arabia

Jubail Chevron Phillips Petrochemical c Al Jubail Saudi Petrochemical Co. (SADAF) Al Jubail Total a.

Will begin operation in fourth quarter 2009.

b.

Company began operation in mid-2009.

c.

Company began operation in mid-2008.

SOURCE:

CEH estimates.

By year-end 2009, Middle Eastern ethylbenzene capacity will have increased by more than 2 million metric tons in over eighteen months with the completion of three major ethylbenzene/styrene facilities. Major investments in the Middle Eastern region over the next few years will capitalize on an abundance of low-cost feedstock and proximity to growing Asian markets. Despite some styrene derivative growth anticipated in Africa within the next few years, there is no ethylbenzene/styrene capacity reported over the forecast period.

SALIENT STATISTICS

The following table presents African and Middle Eastern salient statistics for ethylbenzene:

December 2009 645.3000 X


ETHYLBENZENE

African and Middle Eastern Supply/Demand for Ethylbenzene (thousands of metric tons) Apparent Consumptiona

Production

Imports

Exports

2000 2001 2002 2003 2004

813 987 1,077 1,051 1,103

------

------

813 987 1,077 1,051 1,103

2005 2006 2007 2008 2009

976 1,003 996 1,206 1,685

------

------

976 1,003 996 1,209 1,685

2013

2,750

--

--

2,750

a.


SOURCE:

CEH estimates.

There is no trade in ethylbenzene in Africa or the Middle East as production is completely integrated into petrochemical facilities for styrene consumption. Total ethylbenzene demand is expected to increase 17.9% annually totaling over 2.7 million metric tons by 2013. Styrene exports will account for a majority of demand during the forecast period.

ASIA J APAN Producing Companies

The following table presents ethylbenzene producers, plant locations and capacities in Japan:

December 2009 645.3000 Y


ETHYLBENZENE

Japanese Producers of Ethylbenzene Company and Plant Location


Asahi Chemical Industry Co., Ltd. Kurashiki, Okayama Prefecture

820

Chiba Styrene Monomer Company, Ltd. Ichihara, Chiba Prefecture

305

Denki Kagaku Kogyo K.K. (DENKA) Ichihara, Chiba Prefecture

271

Idemitsu Petrochemical Co. Ltd. Ichihara, Chiba Prefecture Tokuyama, Yamaguchi Prefecture

237 340

Mitsubishi Chemical Corporation a Kashima, Ibaraki Prefecture

417

Nippon Steel Corporation Oita, Oita Prefecture Oita, Oita Prefecture b

220 262

Sumitomo Chemical Co., Ltd. Ichihara, Chiba Prefecture

461

Taiyo Petrochemical Ube, Yamaguchi Prefecture

418

Total

3,751

a.

Mitsubishi Chemical Corp. announced plans to close its styrene monomer capacity by March 2011.

b.

Formerly part of the joint venture Nippon Styrene Monomer. Nippon Steel Corp. acquired the remaining 35% share from Tosoh Corporation in March 2008.

SOURCE:

CEH estimates.

Approximately 98% of ethylbenzene produced in Japan is manufactured from ethylene and benzene, with the remaining 2% produced from xylenes operations. Mitsubishi Chemical is capable of producing ethylbenzene by both methods.

Salient Statistics

The following table provides historical data for ethylbenzene supply/demand in Japan:

December 2009 645.3000 Z


ETHYLBENZENE

Japanese Supply/Demand for Ethylbenzene (thousands of metric tons) Production

Imports

Exports


1990 1991 1992 1993 1994

2,442 2,453 2,484 2,503 2,790

42 42 3 2 3

3 6 26 45 37

2,481 2,489 2,461 2,460 2,756

1995 1996 1997 1998 1999

3,418 3,529 3,440 3,131 3,441

------

94 37 25 10 --

3,324 3,492 3,415 3,121 3,441

2000 2001 2002 2003 2004

3,344 3,380 3,393 3,480 3,683

------

-0.1 0.2 0.2 3.4

3,344 3,380 3,393 3,480 3,680

2005 2006 2007 2008 2009

3,629 3,717 3,840 3,248 3,163

------

0.3 0.2 4.3 0.1 0.1

3,629 3,717 3,836 3,248 3,163

2013

2,980

--

--

2,980

a.


SOURCES:


Japanese consumption of ethylbenzene grew at an average annual rate of 2% from 2000 to 2007. With the slowdown of the general economy and domestic styrene consumption, ethylbenzene demand is projected to decrease 1.7% annually during 2008-2013, resulting in consumption of 2,980 thousand metric tons in 2013.

CHINA Producing Companies

The following table presents ethylbenzene producers, plant locations and capacities in China:

December 2009 645.3001 A


ETHYLBENZENE

Chinese Producers of Ethylbenzene Annual Capacity as of Mid-2009 (thousands of metric tons) Company and Plant Location

Proposed Start Date

2009

2013

90

90

Changzhou Dohow Chemical Co., Ltd. Changzhou, Jiangsu

450

450

CNOOC Shell Petrochemical Company Ltd. Huizhou, Guangdong

630

740

CNPC Huabei Petroleum Admin. Bureau Renqui, Heibei

90

90

Hainan Shihua Jiasheng Chemical Co., Ltd. Yangpu, Hainan

90

90

472

472

--

136

Linyuan Refinery Linyuan, Heilongjiang

30

30

Ningbo Keyuan Plastics Co. Ltd. Ningbo, Zhejiang

30

30

--

650

84

84

Petrochina Dalian Petrochemical Co. Dalian, Liaoning

114

114

Petrochina Daqing Petrochemical Co. Daqing, Heilongjiang

105

225

2012

Petrochina Dushanzi Petrochemical Co. Karamay, Xinjiang Uygur

-- a

360

2009

Petrochina Fushun Petrochemical Co. Fushun, Liaoning

70

70

Petrochina Jilin Petrochemical Co. Jilin, Jilin

180

350

Petrochina Jinxi Petrochemical Co. Huludao, Liaoning

68

68

BlueStar Petroleum Co., Ltd. Daqing, Heilongjiang

Jiangsu Leasty Chemical Co. Jiangyin, Jiangsu Liaoning Huajin Tongda Chemical Panjin, Liaoning

Ningbo ZRCC Lyondell Chemical Co. Ningbo, Zhejiang Panjin Ethylene Co. Ltd. Panjin, Liaoning

2010

2009

2010

2011

December 2009 645.3001 B


ETHYLBENZENE

Chinese Producers of Ethylbenzene (continued) Annual Capacity as of Mid-2009 (thousands of metric tons) Company and Plant Location

2009

2013

Petrochina Jinzhou Petrochemical Co. Jinzhou, Liaoning

90

90

Petrochina Lanzhou Petrochemical Co. Lanzhou, Gansu

68

68

Shandong Heze Yuhuang Chemical Co. Heze, Shandong

--

225

730

730

--

112

Sinopec Beijing Yanhua Petrochemical Beijing

30

30

Sinopec Beijing Yanshan Co. Beijing

92

92

Sinopec Guangzhou Co. Guangzhou, Guangdong

92

92

Sinopec Jinling Co. Nanjing, Jiangsu

68

68

Sinopec Maoming Refining & Chemical Maoming, Guangdong

146

146

Sinopec Qilu Petrochemical Co. Zibo, Shandong

230

230

--

560

130

130

60

60

4,239

6,682

Shanghai SECCO Petrochemical Co. Caojing, Shanghai Sinopec Anqing Anqing, Anhui

Tianjin Dagu Chemical Co. Tiajin Yangzi BASF Styrenics Nanjing, Jiangsu Zhongshan Nanrong Chemical Co. Zhongshan, Guangdong Total a.

Styrene monomer unit became operational in September 2009.

SOURCE:

CEH estimates.

Proposed Start Date

2009

2009

2011

December 2009 645.3001 C


ETHYLBENZENE

All ethylbenzene produced in China is manufactured by alkylation of benzene with ethylene. At present eleven Chinese producers, representing 17% of total capacity, upgrade dilute ethylene captured from coke-oven gas and/or fluid catalytic cracking units. Sinopec Anqing and PetroChina Daqing facilities, both scheduled on stream in 2009, will also utilize dilute ethylene. Total ethylbenzene capacity is anticipated to increase nearly 58% by 2013, totaling nearly 6.7 million metric tons.

Salient Statistics

The following table provides historical data for ethylbenzene supply/demand in China: Chinese Supply/Demand for Ethylbenzene (thousands of metric tons) Production

Imports

Exports


2000 2001 2002 2003 2004

940 899 1,057 1,125 1,146

2.3 1.2 1.0 -1.6

------

942 900 1,058 1,125 1,148

2005 2006 2007 2008 2009

1,837 2,487 2,833 2,761 3,045

9.4 0.4 2.3 -0.1

-0.1 -0.1 0.1

1,846 2,487 2,835 2,761 3,045

2013

5,800

--

--

5,800

a.


SOURCES:


Chinese consumption of ethylbenzene grew at an average annual rate of 21.8% from 2002 to 2007. Consumption declined slightly in 2008 but is projected to increase at an average annual rate of 16% for 2008-2013, resulting in consumption of 5.8 million metric tons in 2013. China supplements supply shortages with negligible imports from Taiwan and Japan.

REPUBLIC OF KOREA Producing Companies

The following table presents ethylbenzene producers, plant locations and capacities in the Republic of Korea:

December 2009 645.3001 D


ETHYLBENZENE

Republic of Korea Producers of Styrene Company and Plant Location


BASF Co. Ltd. Ulsana

350

Dongbu Hitek Co. Ltd. Ulsanb

319

Honam Petrochemicalc Daesan

440

LG Chemical Daesan Yeochon

190 570

Samsung Total Petrochemicals Daesan

1,040

SKC Chemical Group Ulsan

340

Yeochon NCC Yeochon

310

Total

3,559

a.

In August 2009 BASF announced the sale of this site to SK Chemicals. Unit is currently idled.

b.

Capacity is currently idled.

c.

Formerly known as Lotte Daesan Petrochemical.

SOURCE:

CEH estimates.

Between 2000 and 2008, South Korean capacity increased 4% annually. BASF and Dongbu Hitek both idled ethylbenzene/styrene production in 2008 following sharp increases in ethylene prices. Both companies purchased ethylene from SK Energy who was forced to increase prices because of rising raw material costs. As of mid-2009, both units remained idle due to soft demand.

Salient Statistics

The following table provides historical data for ethylbenzene supply/demand in the Republic of Korea:

December 2009 645.3001 E


ETHYLBENZENE

Republic of Korea Supply/Demand for Ethylbenzene (thousands of metric tons) Production

Imports

Exports


2000 2001 2002 2003 2004

2,774 2,616 2,939 2,849 2,904

----3.0

--0.1 ---

2,774 2,616 2,939 2,849 2,907

2005 2006 2007 2008 2009

3,066 3,271 3,292 3,218 3,143

------

----0.1

3,066 3,271 3,292 3,218 3,143

2013

2,950

--

--

2,950

a.


SOURCES:

(A) World Trade Atlas, Global Trade Information Services, Inc. (data for IMPORTS and EXPORTS for 2000-2009). Reported under harmonized code # 2902.60.00.00. (B) CEH estimates (data for PRODUCTION and APPARENT CONSUMPTION).

All ethylbenzene is consumed in the production of styrene. South Korea’s ethylbenzene consumption and production are both estimated to decline approximately 1-2% annually over the forecast period as domestic styrene demand slows and styrene exports to China and Other Asia are gradually supplanted by capacity startups abroad over the forecast period. Development of world-scale styene plants in the Middle East may lead to further declines in output and possible oversupply within the next several years.

TAIWAN Producing Companies

The following table presents ethylbenzene producers, plant locations and capacities in Taiwan: Taiwanese Producers of Styrene Company and Plant Location


Formosa Chemicals & Fibre Corp. Mailiao

1,365

Grand Pacific Petrochemical Corp. Ta Sheh

370

Taiwan Styrene Monomer Corp. Linyuan

380

Total SOURCE:

2,115 CEH estimates.

December 2009 645.3001 F


ETHYLBENZENE

Taiwan’s ethylbenzene capacity grew 67% between 2001 and 2007. Formosa Chemicals & Fibre Corp. is Taiwan’s largest ethylbenzene/styrene manufacturer, accounting for approximately 65% of total capacity. The company utilizes dilute ethylene from Formosa Petrochemical’s adjacent refinery in Mailiao. No further expansion of ethylbenzene capacity is anticipated over the forecast period.

Salient Statistics

The following table provides historical data for ethylbenzene supply/demand in Taiwan: Taiwanese Supply/Demand for Ethylbenzene (thousands of metric tons) Production

Imports

Exports


2000 2001 2002 2003 2004

1,185 1,238 1,405 1,423 1,421

3.1 -----

----0.2

1,188 1,238 1,405 1,423 1,421

2005 2006 2007 2008 2009

1,406 1,375 1,980 2,072 1,969

------

0.1 0.3 0.2 -0.1

1,406 1,375 1,980 2,072 1,969

2013

2,050

--

--

2,050

a.


SOURCES:


Taiwan’s ethylbenzene units have operated above 95% utilization rates over the past several years. Following the completion of Formosa Chemicals’ ethylbenzene/styrene expansion in 2007, Taiwan became a net exporter of styrene, displacing some import volume. In addition to growing styrene exports, small quantities of ethylbenzene are occasionally shipped to China. Overall, ethylbenzene demand growth in Taiwan will remain relatively flat to 2013.

O THER ASIA

Other Asia includes Hong Kong, India, Indonesia, Malaysia, the Philippines, Singapore and Thailand.

Producing Companies

The following table presents ethylbenzene producers, plant locations and capacities in Other Asia:

December 2009 645.3001 G


ETHYLBENZENE

Other Asian Producers of Styrene Company and Plant Location


Indonesia

PT Styrindo Mono Indonesia Serang

335

Malaysia

Idemitsu SM (Malaysia) Pasir Gudong

228

Singapore

ELLBA Eastern Pte. Pulau Seraya

625

Shell Chemicals Seraya Pte. Pulau Seraya

450

Thailand

IRPC Public Co. Ltd. a Rayong

225

Siam Styrene Monomer Co. Rayong

360

Total a.

2,223

Formerly Thai Petrochemical Industry Co. Ltd.

SOURCE:

CEH estimates.

Idemitsu’s Pasir Gudang facility in Malaysia will boost capacity by 2010 bringing its total to 260 thousand metric tons. No other expansion is anticipated in Other Asia over the next few years.

Salient Statistics

The following table provides historical data for ethylbenzene supply/demand in Other Asia:

December 2009 645.3001 H


ETHYLBENZENE

Other Asian Supply/Demand for Ethylbenzene (thousands of metric tons) Production

Imports

Exports


2000 2001 2002 2003 2004

1,342 1,349 1,584 2,130 2,056

0.9 0.8 0.8 0.6 0.8

0.1 0.1 0.1 0.2 0.1

1,343 1,350 1,585 2,130 2,057

2005 2006 2007 2008 2009

1,763 1,923 2,094 2,076 2,016

1.0 1.1 5.4 0.1 0.5

--4.9 -2.0

1,764 1,924 2,095 2,076 2,014

2013

2,100

--

--

2,100

a.


SOURCES:


All ethylbenzene in Other Asia is consumed for styrene manufacture. Following the expansion by Idemitsu in 2010, Other Asian ethylbenzene supply and demand will remain relatively balanced over the forecast period.

OCEANIA Oceania includes Australia, Guam, New Guinea and New Zealand. P RODUCING COMPANIES

The following table presents ethylbenzene producers, plant locations and capacities in Oceania: Oceanian Producers of Ethylbenzene Annual Capacity (thousands of metric tons) Company and Plant Location

2009

2014

Proposed End Date

135

--

2010

Australia

Huntsman Chemical Australia West Footscray, Victoria SOURCE:

CEH estimates.

Huntsman Chemical in Australia is the sole manufacturer of ethylbenzene/styrene in Oceania. The 135 thousand metric ton plant will reportedly close by year-end 2009. No capacity additions in Oceania are anticipated over the forecast period.

CEH ethylbenzene

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