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The global styrene market will see improved stability in the coming years

November 23/2011

(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 5Ц6% 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.

Tags:ABS, styrene.
Category:General News
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