Styrene: Development Focus Needs Adjustment Urgently

By Sun Yuxiao, Yu Dexia, PetroChina Jilin Petrochemical Co., Ltd.

Capacity growth slowed down

China’s styrene capacity was 1.874 million t/a in 2005, 5.679 million t/a in 2010 and 7.304 million t/a in 2015. Average annual growth of capacity was 24.8% during 2005-2010, but only 5.20% during 2010-2015.
Two new styrene units were constructed in China in 2015. The capacity of the unit built by Shandong Heze Yuhuang Chemical (Group) Co., Ltd. was 240 kt/a. The capacity of the unit built by CNOOC Dongfang Petrochemical Co., Ltd. was 120 kt/a. By the end of 2015 there were 42 styrene units in China, and capacity growth was around 2.3%. Table 1 shows the major producers and their respective capacities.
Table 2 shows the styrene units being constructed or planned for construction in China during 2016-2019. Capacity will likely reach 10 million t/a in 2019.

Table 1   Major styrene producers in China, 2015

Producer    Capacity (kt/a)
CNOOC and Shell Petrochemical Co., Ltd. (CSPC)    700
Shanghai SECCO Petrochemical Co., Ltd. (SECCO) (joint venture between Sinopec and BP Amoco)    675
Joint venture between Sinopec Zhenhai Refining and Chemical Co., Ltd. (ZRCC) and Lyondell    620?
Tianjin Dagu Chemical Co., Ltd.    500
PetroChina Jilin Petrochemical Co., Ltd.    420?
Jiangsu Leasty Chemical Co., Ltd.    420?
Xinjiang Dushanzi Petrochemical Co., Ltd.    320?
SP Chemicals (Taixing) Co., Ltd.    320?
Changzhou Xinri Chemistry Co., Ltd.    250?
Panjin Ethylene Co., Ltd.    225
Sinopec Qilu Petrochemical Co., Ltd.    200?
Shandong Heze Yuhuang Chemical (Group) Co., Ltd.    440?
PetroChina Daqing Petrochemical Co., Ltd.    190?
Changzhou Donghao Chemical Industry Co., Ltd.    200?
CNOOC Dongfang Petrochemical Co., Ltd.    120?
Sinopec Baling Petrochemical Co., Ltd.    120?
Shaanxi Yanchang Petroleum (Group) Co., Ltd.    120?
BASF-YPC Company Limited    120?
Sinopec Maoming Petrochemical Co., Ltd.    150
Anhui Anqing Petrochemical Co., Ltd.    100?
Sinopec Yanshan Petrochemical Co., Ltd.    84?
Qingdao Refining and Chemical Co., Ltd.    80?
Sinopec Guangzhou Petrochemical Co., Ltd.    80?
Zhejiang Ningbo Keyuan Group Co., Ltd.    80?
Shandong Huaxing Petrochemical Group Co., Ltd.    80?
Shandong Dongming Petrochemical Group Co., Ltd.    80?
Hainan Shihua Jiasheng Chemical Co., Ltd.    80
PetroChina Jinzhou Petrochemical Co., Ltd.    80?
Sinopec Zhanjiang Dongxing Refinery    60
PetroChina Jinxi Refining and Chemical Co., Ltd.    60
PetroChina Lanzhou Petrochemical Co., Ltd.    60?
PetroChina Fushun Petrochemical Co., Ltd.    60?
North China Petroleum Administration Bureau Petrochemical Plant    80?
Guangdong Zhongshan Nanrong Chemical Co., Ltd.    50?
Sinopec Jingmen Petrochemical Co., Ltd.    80?
Total     7 304


Table 2    Styrene units being constructed or planned for construction in China, 2017-2019

Company    New capacity (kt/a)    Expected production startup
Qingdao Soda Ash Industrial Co., Ltd.    500    2016
Abel Chemical (Jiangsu) Co., Ltd.    500    2016
CNOOC Ningbo Daxie Petrochemical Co., Ltd.     280    2017
Jiangsu Jiasheng (Kunpeng Petrochemical Co., Ltd.)    700    2017
Changzhou New Solar Technology Group Co., Ltd.    300    2016
Zhejiang Ningbo Keyuan Group Co., Ltd.    120    2016
Sinopec Jiujiang Petrochemical Co., Ltd.    80    2016
Shandong Lihuayi Group Co., Ltd.    60    2016
Sinopec SABIC Tianjin Petrochemical Co., Ltd.    35    2016
Sinopec Yangzi Petrochemical Co., Ltd.    35    2016
Total    2 610    



Demand has been stable

Pushed strongly by the demand from manufacturers of downstream products, the apparent consumption of styrene increased at an average annual rate of 4.84% during 2010-2015. Average annual growth of apparent consumption during 2016-2020 is expected to be 3.5%.
China uses styrene mainly in making polystyrene (PS)/ expandable polystyrene (EPS), acrylonitrile–butadiene–styrene copolymer (ABS)/ acrylonitrile-styrene copolymer (SAN), unsaturated polyester resin, SBR, SB elastomers (including SBS, SBC and SIS) and other chemical products. With the stable development of downstream sectors – construction materials, household electric appliances and automobiles – demand for PS and ABS will continue to increase considerably. Moreover, with development of energy-saving buildings, demand for EPS in thermal insulation products is also increasing constantly, and EPS is hoped to become a new bright spot in styrene demand. Demand for styrene in this sector is expected to growth 5-10% annually. Styrene demand among makers of SAN resin, thermoplastic elastomers and unsaturated polyester resin will also keep increasing rapidly. So overall demand for styrene in China will likely exceed 10 million tons in 2020.

Import and export

New styrene units in China have started production one after another in recent years, increasing the supply and reducing import dependence substantially. China imported 3.744 million tons in 2015, 0.36% more than in the previous year, and providing 39.51% of the supply. Export of styrene is very small – only 4.9 kt in 2015.
China’s major sources for imported styrene in 2015 included Korea (33.42%), Saudi Arabia (13.30%) and Japan (11.98%). It was much the same in 2014 (Korea 37.54%, Saudi Arabia 13.14% and Japan 12.73%). Only the proportion of styrene imported from Korea was around 4 percentage points lower than in 2014.
According to incomplete statistics, around 850 kt/a of new capacity was added in 2016. In view of the stable development expected in downstream sectors, the import volume of styrene will still exceed 3 million tons during 2016-2017. If new units are put on stream on schedule, their supply impact will not be fully realized until after 2017. So the import of styrene will likely decline in volume year by year after the next two or three years.