Styrene Market Size
The global styrene market was estimated to be around 33,000 kilo tons in 2022. Demand poised to exceed 43,000 kilo tons by 2032. In 2022, Chinese Styrene spot prices stood at USD 1075 per metric ton, marking a decrease from USD 1230 per metric ton during the previous year. Conversely, in Europe, spot prices experienced an increase of USD 50 per metric ton, reaching USD 1136 per metric ton.
Styrene is a hydrocarbon compound with the chemical formula C8H8. It is a derivative of benzene and is a colourless liquid that evaporates easily and has a strong aroma. Styrene is a monomer, and is a key building block in the production of various polymers and copolymers. Styrene is produced on a large scale in the petrochemical industry, primarily via the dehydrogenation of ethylbenzene.
Styrene Capacity Overview
The global styrene market is well supplied, with capacity exceeding 43,000 kilo tons/annum in 2022. More than 60% of this supply is concentrated in Asia Pacific. Both regionally & globally, China is the largest producer, with a total annual capacity estimated at 17,749 kilo tons. Major contributors to this domestic supply include Zheijiang Petrochemical, Ningbo ZRCC Lyondell Chemical, Hengli Petrochemical, Changzhou New Solar Chem, Secco Petrochemical, Wanhua Chemical Yantai, and CNOOC-Shell Petrochemical, among others.
Global Styrene Demand Supply Analysis 2016-2032 (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting Estimates
Styrene Market, By Derivatives
Styrene market by derivatives is segmented as: Polystyrene (PS) & Expanded polystyrene (EPS), Unsaturated Polyester Resin (UPR), Styrene Butadiene Rubber (SBR), Acrylonitrile Butadiene Styrene (ABS), and others. Polystyrene is widely used in the production of plastics and foam materials. Expanded polystyrene (EPS) foam, commonly known as Styrofoam, is a well-known application of polystyrene. Polystyrene is used in packaging, disposable containers, insulation, and in various consumer products. Besides acrylonitrile and butadiene, styrene is the third monomer in the production of ABS. It contributes to the material s strength, rigidity, and gloss. ABS is widely used in several applications, including automotive parts, electronics, consumer goods, and construction materials. The collective consumption of styrene in PS, EPS, and ABS represents a nearly three-fourths share in its global production. Among these, styrene demand in ABS is projected to register the fastest growth over the forecast period.
In the UPR production process, styrene is added to the polyester resin to create a cross-linked polymer structure, providing it strength and durability. UPR is commonly used in the production of fiberglass-reinforced products such as tanks, pipes, boat hulls, and various composite materials in construction and automotive applications. SBR is a synthetic rubber copolymer composed of styrene and butadiene. Styrene contributes to the hardness and strength of SBR, while butadiene adds elasticity. SBR is widely used in the tire industry, where it enhances the performance and durability of tires.
Styrene Market, By Region
Asia Pacific dominates the global styrene market, followed by North America and Western Europe. Besides being the largest consumer, Asia Pacific is also the largest producer of styrene, representing a nearly 63% share. Supply in the region resides in China, Japan, South Korea, Taiwan, Thailand, Singapore, Indonesia, and Malaysia. Despite enough domestic capacity however, supplies are insufficient to satisfy demand, and the region is a net importer of styrene shipments. China, which remains the biggest manufacturer and consumer of styrene monomer, has seen several capacity additions over the historical period, with more due to add in the upcoming years. With increasing capacity, the country is expected to steadily reduce its import dependency over the next ten years. While Asia Pacific is the largest net importer, Middle East & Africa is the largest net exporter of styrene in the world.
USA follows China in the styrene supply, with capacity split between five manufacturers: LyondellBasell, INEOS Styrolution, Americas Styrenics, Westlake Chemical, and CosMar (a SABIC & Total joint-venture). With an annual production capacity exceeding 1,000 kilo tons, Western Europe is third-largest styrene manufacturer. Netherlands is the largest producer in the region, followed by Germany. Notably, the closure of Trinseo s plant at Boehlen has positioned BASF as the sole manufacturer of styrene in Germany, overseeing operations at its 550 kilo tons/year plant at Ludwigshafen.
Global Styrene Demand, By Region, 2022 (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting Estimates
Styrene Market Dynamics
Driver
The styrene market is drivers by several key factors, foremost among them being the growing demand from end-use industries such as automotive, construction, and packaging. Styrene being a building block for materials like ABS, UPR, and SBR positions it favourably across these sectors. Further, the robust economic growth observed in the Asia-Pacific region, particularly in China, significantly contributes to the growing styrene market.
Restraint
Environmental concerns and regulatory challenges are major restraining factors for growth of the global styrene market. Indirect photochemical reactions during styrene production contribute to the generation of photochemical smog. Stringent environmental regulations will require manufacturers to invest eco-friendly technologies and processes. Moreover, the volatility in the prices of raw materials ethylene and benzene, which in turn is dependent on crude oil prices can create challenges for styrene manufacturers, impacting their profit margins.
Opportunity
Rising demand for lightweight and high-performance materials in automotive and electrical & electronics sectors poses an opportunity for the styrene market. In automotive sector s pursuit of lighter yet durable materials to improve fuel efficiency and sustainability, as well as in the electronics industry s demand for materials with superior electrical insulation properties and structural integrity, styrene is strategically positioned to meet these evolving industry requirements.
Styrene Market Challenges
Currently, the global styrene market faces several challenges from surge in capacity, dwindling downstream demand, to soaring energy costs. China s substantial addition of new styrene plants, contributing over 3 million tons to global supply in 2022, is worsening the existing oversupply in the Asia-Pacific region. This has intensified the pressures on the global styrene producers, leading to economically challenging conditions. Trinseo’s 300 kilo tons/year plant closure is a recent example, highlighting the severe competition and high energy expenses.
Weaker demand from downstream sectors has exacerbated the challenges, causing price declines in key markets like China and Europe. Trinseo has also confirmed shutting down its only operating plant at Terneuzen, Netherlands, by November 2023, citing reduced European demand and increasing supply.
Current downturns in the styrene market extend to the global trade dynamics as well, particularly for regular styrene exporters to China. New capacities in China have resulted in a decline in Chinese imports, plummeting more 38% between 2020 and 2022.
Meanwhile, production plants undergoing heavy maintenance periods from time to time is seen as a potential mitigating factor for the supply glut in the styrene market, offering a prospect of stabilizing prices in the coming years.
Key Players in Styrene Market
LyondellBasell, CosMar (SABIC & Total JV), Americas Styrenics, INEOS Styrolution, Westlake Chemical, Shell, BASF, Versalis, Repsol, SIBUR, Nizhnekamskneftekhim (NKNK), Synthos, Zhejiang Petrochemical, Changzhou New Solar Chem, CNOOC-Shell Petrochemical, Leasty Chemical, Asahi Kasei Chemical, Nihon Oxirane, Idemitsu Kosan, Hanwha Total Petrochemicals (Hanwha-Total JV), LG Chemical, Lotte Chemical, Taiwan Styrene Monomer Corp (TSMC), Formosa Chemicals and Fibre, SADAF, Pars Petrochemical and EQUATE Petrochemical Company are some of the key players in the Styrene market.
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