Global styrene outlook & a story of evolution
¡ª¡ªAlan Lu, director of aromatics, IHS Chemical

Mr. Lu first introduced fundamental conditions including demand, downstream and capacities of global styrene market in the past 10 years. As he described the demand to be at low growth rate, and capacity boomed in 2010 while slowed down in 2015. Mr. Lu also gave his forecast on global styrene producers’ operating rate in 2016-2020. 

Following the general picture, Mr. Lu put more priority on the evolution of NEA, Europe and America. NEA producers were scattered, and European plants had reformed and integrated, and given their large non propylene oxide/styrene market, the styrene production was not necessary to be profitable. American producers had developed from a scattered condition to reinforced export, based on their low energy cost. There was fierce competition between styrene producers from Middle East and Americas. 

Finally, he pointed to the fittest survival philosophy, and suggest that NEA producers to enhance integration with upstream capacity, and European enterprises to continue support the more profitable derivatives in the integrated industry, and North American enterprises to explore more in export.