POSM II' finds markets playing dead
Technology has been in service several years coproducing styrene with propylene oxide (PO), or PO with methyl tert-butyl ether (MTBE). But with the recent addition of Arco Chemical's second world-scale PO/styrene plant (POSM II) at Channelview, TX, and the pending completion of Texaco Chemical's mammoth MTBE/PO plant at Port Neches, TX, the three markets are becoming firmly intertwined. At present, all three markets are over-supplied in North America and balanced to soft worldwide. But with the wave of new capacity, the three products are likely to become increasingly unstable, as strong demand in one serves to wash the others in unwanted coproduct. As market watchers see it now, styrene is the weakest sister, with poor prospects until toward the end of the decade. MTBE capacity additions are in a lull but will pick up again as the next Clean Air Act gasoline reformulation deadline nears in 1995. PO demand is still growing worldwide sufficiently to prompt several companies - including Arco - to consider new plants. Traditionally buffeted by the vagaries of the ethylene and benzene markets, styrene has already been hurt once by a knock-on effect from PO. Today it isn't so bad because the PO market is down,' says one styrene producer. But in the mid-80's styrene was so bad, and PO was very good, and Arco ran for PO. It really burdened styrene.
- OSTI ID:
- 6643845
- Journal Information:
- Chemical Week; (United States), Vol. 152:7; ISSN 0009-272X
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
29 ENERGY PLANNING
POLICY AND ECONOMY
ORGANIC OXYGEN COMPOUNDS
DEMAND
STYRENE
BENZENE
CAPACITY
ETHYLENE
GASOLINE
MANUFACTURERS
MARKET
PETROCHEMICAL PLANTS
PRODUCTION
US CLEAN AIR ACT
ALKENES
ALKYLATED AROMATICS
AROMATICS
CHEMICAL PLANTS
FUELS
HYDROCARBONS
INDUSTRIAL PLANTS
LAWS
LIQUID FUELS
ORGANIC COMPOUNDS
PETROLEUM PRODUCTS
POLLUTION LAWS
020700* - Petroleum- Economics
Industrial
& Business Aspects
290200 - Energy Planning & Policy- Economics & Sociology