Processing Strong styrene growth foreseen
Eastern Asia will lead hefty growth in world styrene demand through 2005.
Driving the region's 9.3%/year increase in styrene consumption are economic growth, improved standards of living, and increasing exports of finished products.
Those are the findings of a study by Chem Systems Inc., Tarrytown, N.Y.
The firm predicts world styrene consumption will increase at an average 4.1%/year through 2005, fueled by increased demand for polystyrene and acrylonitrile butadiene styrene (ABS).
Most styrene capacity expansion will take place in eastern Asia. Chem Systems expects additions in that region to total 2.5 million metric tons/year by 1998. This massive capacity increase will reduce world operating rates, shift trade patterns, and squeeze profits in traditional exporting countries.
World styrene consumption increased 9.6% during 1994, making styrene one of the leaders in commodity petrochemicals' recent recovery.
Demand growth was strong for all styrene derivatives, especially polystyrene and ABS, which combined account for 75% of world styrene consumption.
In 1995, says Chem Systems, growth in styrene demand was less than anticipated because of inventory adjustments and an unexpected slide in shipments to China after the country closed its southern border.
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