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(ICIS) -- The global styrene market will
see improved stability in the coming years as operating rates increase, but
still faces crucial challenges in light of ongoing macroeconomic volatility, a
senior executive from Germany-based styrenics producer Styrolution said on
Tuesday.
Speaking at the 10th European Aromatics & Derivatives Conference in
Amsterdam, Europe president Martin Pugh said that demand growth will start to
overtake capacity additions in the next three years, which will lead to
operating rates gradually moving back closer to 90%, from the 80% level seen
since the downturn in late 2008.
While Pugh added that global styrene demand growth forecasts have been
reduced to 3.3% from previous expectations closer to 4%, growth levels varied
between the different downstream sectors.
The polystyrene (PS) market, which
has struggled with oversupply despite a 25% capacity reduction over the past
five to six years, is forecast to grow by only 3%, while other derivative
markets such as expandable polystyrene (EPS) and acrylonitrile-butadiene-styrene
(ABS) may expect to see growth rates of up to 5–6% from now until 2014.
The low volume of recycled PS also poses a challenge, with Pugh arguing
that the industry needs to find bigger markets in order to cultivate additional
growth for the polymer. For the European ABS market, increasing capacities in
the Middle East and Asia as well as the EU/South Korea free trade agreement both
present challenges for future growth.
Perspectives of development of the polymers markets, pricing issues and
other important aspects will be discussed at The Polymers
Summit-2011, which will be held in Moscow on November 30, 2011 at the
Ritz Carlton Hotel. The Summit is organized by MRC with the support of ICIS. The main idea
of the Summit is to find a "the golden mean" between producers and converters.
When producers receive exactly such margin of production, which helps them to
invest in production expansion in order to substitute polymers imports, and the
converters receive such price of feedstock that helps them to compete imported
finished products. The Summit site gives an access to the live video of the
Summit, speakers" presentations, as well as opportunities to ask questions or
make appointments to any Summit partcipant.
mrcplast.com
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