Although the March styrene market price rose to 500 tons to 800 million, but the market is still low. Market sources show that there is still a lot of new capacity coming styrene, styrene feedstock and sales in both cases is not smooth, with the release of new capacity, the market outlook is still hard to be optimistic.
Was a major importer of styrene. Starting in 2005, the country kicked off in full swing in the construction of styrene production capacity continues to grow, the demand also increased simultaneously, but in view of the advantages of the lack of domestic and foreign enterprises operating rate product prices and other aspects of China’s annual imports of more than 300 tons still need styrene, a huge gap in the market. Although raw material benzene, ethylene prices lower, but styrene prices have been strong, even once hit a five-year high. Lucrative enterprises, up to several thousand tons of profits, causing widespread concern in the market. Styrene has thus become the hot spot for investment, sparking a wave of building tide.
Up to now, China has 37 companies producing styrene, total capacity at 7.3 million tons / year. According to incomplete statistics, over the next three to four years, China is still in the styrene production capacity growth stage, new construction, expansion, styrene plant in the vicinity of the proposed total capacity of 6,865,000 ~ 6,905,000 tons, or will be in 2017 exceeded one thousand tons mark.
The new capacity is mainly concentrated in the eastern coastal economically developed regions, East China production capacity of 470 million to 4.72 million tons / year, accounting for 68.41% of total production capacity. With the deepening development of the Midwest, styrene plant capacity is also being transferred to the Midwest, showing more flowering situation.
The author believes that imports of styrene still has its unique advantages, such as method of payment, the adaptability of the plant raw materials, the nature of the plant, etc., and therefore difficult to squeeze additional imports of styrene to styrene market share of domestic short-term, but also for the market requires intense fighting, completely replace the long road ahead.
The domestic downstream styrene butadiene rubber, ABS and other products have been in the doldrums, the demand can not be fast start. Therefore, even if only half of the new capacity coming into operation device also will undoubtedly cause saturation even styrene supply overcapacity. Moreover, from the perspective of raw materials, petroleum benzene new plant put into operation this year will be more than 230,000 tons, the new plant capacity on the hydrogenation of benzene at 100 million tons, remove overhaul and other factors, increased production of less than one million tons, an increase is clearly lower than the benzene ethylene, benzene market gap will increase further. Raw materials and sales undoubtedly on costs and prices for styrene formation pressure.
In summary, the release of new capacity will have a huge impact on the market outlook, if not exceptionally good, styrene or hovering in the downturn trend was in shock.
Translated by Google Translator from http://market.cria.org.cn/25/20236.html
