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EXECUTIVE SUMMARY
Styrene Monomer
Styrene Monomer is one of the important plastic raw materials in
liquid form derived from complex petrochemical processes. It is a
Description
Feedstock
Primary and
End Uses
Through years, the specification and analytical methods for styrene have changed.
Sales specifications have been defined by the majority of the manufacturers according to
the standard D2827 Standard Specification for Styrene Monomer of the American
Society for Testing and Materials (ASTM). For a typical sales specification, there are a
few key parameters which are: a minimum purity of 99.7 wt. % and a maximum color of
10 on the Platinum-Cobalt (Pt-Co) scale. Meanwhile the specified impurities and their
concentrations depend upon the manufacturing method employed, along with plant
performance characteristics. The typical inhibitor content of the standard grade is 10-15
ppm TBC (4-tert-butylcatechol), while a higher dose may be defined in the customer
specification depending on the expected storage period and use conditions at the customer
site (Styrene Monomer: Environmental, Health and Safety Guidelines, 2012).
Styrene is widely used in the manufacture of resins, plastics, and latices/emulsion
polymers by both batch and continuous mass polymerisation; by solution, suspension, and
emulsion processes; and by various modifications and combinations of these techniques.
In 2004, the global styrene demand was reported to be over 24,000 Kt. Figure 2.1 below
presents the global styrene polymer derivatives demand based in year 2004.
SBR Styrene
Butadiene Rubber, 4%
SBL Styrene
Butadiene Latex,
6%
UPR Unsaturated
Polyester Resins, 5%
Thermoplastic
Elastomers, 2%
Others, 5%
SAN ResinsStyrene
Acrytonitrile,
2%
MBS Methyl
MethacrylateButadiene-Styrene
Copolymers, <1%
PS Polystyrene, 46%
2.3
Competitors
Idemitsu Company is the only company in Malaysia well known for
Uses
2.3.1
Table 2.3: Idemitsu SM (Malaysia) Sdn.Bhd. Company Profile (Worlds Vest Base:
Global Finance Intelligence, 2012)
WVB number
Address
Phone number
Fax number
Email
Website
Industry (SIC)
Profile brief
Directors/ Managers
2.4
Process Technology
2.4.1
Production Methods
Styrene is produced in industrial quantities from ethyl benzene, which is in turn
prepared on a large scale by alkylation of benzene with ethylene (Denis H. James William
M. Castor, 2005). Styrene was first prepared (Rudolph Fittig et al., 1879) in the laboratory
by synthesis of styrene entails the decarboxylation of cinnamic acid (Abbott and T. W,
1941). The conventional way to produce styrene is via dehydrogenation of ethyl benzene
as shown in Figure 2.2. Ethyl benzene is dehydrogenated by mixing it in the gas phase
with 10-15 times its volume in high temperature steam and passed over a catalyst to yield
styrene and hydrogen. The catalysts used in most of the dehydrogenation process are
based on iron (III) oxide, promoted by several percentage of potassium oxide or
potassium carbonate.
Figure 2.2:
Dehydrogenation
of ethyl benzene
to styrene and
hydrogen
A typical styrene plant consists of two or three reactors in series, which operate
under vacuum to enhance the conversion and selectivity. Typical per-pass conversions are
ca. 65% for two reactors and 70-75% for three reactors. Selectivity to styrene is 93-97%.
The overall reaction is endothermic, and heat is supplied by steam in adiabatic reactors or
by external firing in tubular isothermal reactors. The steam is the source of heat and
serves to removes coke that tends to form on the catalyst through the water gas shift
reaction. Apart from that the steam also dilutes the reactant and products, shifting the
position of chemical equilibrium towards product. Toluene and benzene are formed as by
products.
(1)
(2)
(3)
POSM technology is used for about a third of the world's production of propylene
oxide and involves the reaction of propylene and ethyl benzene to produce propylene
oxide and styrene. The majority (60 and 70%) of propylene oxide is used in the
manufacture of polyether polyols for use in making polyurethane plastics. Propylene
oxide is also used in the production of propylene glycol, polypropylene glycol, propylene
glycols ethers and propylene carbonate.
2.4.2
Technology Development
In recent years, technological developments in the ethyl benzene and styrene area
Improving conversion and so reducing the amount of ethyl benzene that must be
separated is the main objective for researching alternative routes to styrene. Other than
the POSM process, none of these routes like obtaining styrene from butadiene have been
commercially demonstrated.
2.4.3
and Snamprogetti S.p.A. (the engineering and main contracting company of Italys Eni)
have synergistically developed a new route to produce styrene monomer from ethane and
benzene (SNOW Ethane Option") or ethylene and benzene (SNOW Ethylene Option").
The SNOW (SNOW = SNamprogetti + DOW) represents a technological and economical
breakthrough in the Styrene Industry. The SNOW technology is innovative as concerns
many factors: raw materials, reactor design, heat supply system, catalyst, feed
composition (Elsevier, 2007).
Ethane, along with ethyl benzene from the alkylation unit, is fed to a
dehydrogenation reactor with a catalyst capable of simultaneously producing styrene and
ethylene. The dehydrogenation effluent is cooled and separated and the ethylene stream is
recycled to the alkylation unit. The catalyst suitable for this type of reaction is composed
of gallium, platinum and potassium on alumina modified with silica. The process attempts
to overcome previous shortcomings in the development of processes employing ethane to
produce styrene. These include inefficient recovery of aromatics, production of high
levels of heavies and tars, and inefficient separation of hydrogen and ethane. A basic
block flow diagram of the process is shown in Figure 2.3 below.
Ethane
Benzene
Ethyl
Benzene
Process
Dehydrogenation
Section
EB Recycle
Separation
and Styrene
Purification
Styrene
C2 Recycle
materials than those in the conventional process. A small company called Exelus Inc. is
developing a process based on this chemical route to making styrene, i.e., using the sidechain alkylation of toluene with methanol. This is made possible by a particular catalyst
which allows for the side-chain alkylation of toluene to take place when reacted with
methanol.
Figure
2.4:
Alkylation of toluene with methanol to styrene, hydrogen and water
ExSyM achieves up to 80% reduction in energy usage by changing the process
chemistry, using instead the alkylation of toluene with methanol to form styrene directly
and reduces the endothermic heat of reaction by 50% which removes the thermodynamic
limitation. The reaction also occurs at lower temperatures, near 400C compares to
conventional process which required high temperature excess of 600C. Furthermore, the
change in feed stocks reduces the production cost by about 35%. Exelus claims to have
invented a new catalytic technology that allows for a breakthrough selectivity of 80% at
full methanol conversion.
The ability to successfully synthesize styrene on a commercial scale from toluene
and methanol would very likely have a significant impact on the styrene market. This has
long been realized and for that reason there has been a long history of attempts to develop
such a process. Historically, however, this process has suffered from low selectivity due
to competing decomposition of methanol (Tatsuaki Yashima et al. 1972). It is reported
(Peter Taffe, 2007) that an approximately 9:1 mixture of styrene and ethyl benzene is
obtained, with a total styrene yield of over 60% (Stephen K. Ritter, 2007).
2.5
Market Data
2.5.1
June 2010 itself. In the early of June, the market price of styrene is rated to be
$1055/1000kg. Fortunately, the price increases slightly in about the middle of the same
month which is $1060/1000kg. However there is slight different in the other Asian
regional. In China for example, the highest rated for styrene in the early June 2010 is
$1130/1000kg and it was surprisingly decreased to $1084/1000kg (Dewittworld, 2010).
As in Taiwan, $1151/1000kg is the price that remained the same through the
month of May 2010. Prices have varied quite widely in the recent years, for example in
the fall semester of 1999; normal prices were $0.682/kg. However, the prices are found to
be increasing from year to year averagely, even if it is only slight increase (Dewittworld,
2010).
These prices are not simply being made up. A detailed research and a surveyed
statistics are done to detect the approximate value of the particular chemical. For the
record, the styrene production is depend on the general economic circumstances and of
course the customer demand and the process itself depend on the operating costs that are
mainly due to the changes in raw material prices and improved energy usages. However,
with the current prices and demand, the development of styrene is believed to have
positive increment in at least a few months period (Venezia, 2010).
While experts differ in growth projections, there is a general research that styrene
will see growth in the next few years (Guzman, 2010). Some experts believe that from
2009 to 2013 styrene will achieve an average growth of about 3-4%. Another market
research optimistically forecasts 4% growth from 2008 until 2013, while less than 3%
growths is forecast by another for the same period (Venezia, 2010).
The price in Korea offers the lowest while the price rate in China is the highest
even though the currency is not much different. These will contribute to the positive
chances in terms of business opportunity for the other country in the Asia region to
produce and sell the styrene production economically in domestic sector. Compared to the
Middle East, central and eastern Europe, the development of styrene in terms of
production and demand might be slow in rate but, the growth of the particular chemical is
increasing and the spot for the possible clients and customers are showing positive
increment as shown in Figure 2.5 (Nicholson,2010).
Figure 2.6 shows the monthly styrene imports by the country of China. As shown
below, the development of the trends is quite obvious. From the year of 2008 to the year
of 2010, the imports of styrene to this country are reportedly increasing from year to year.
However, starting from the month of July of 2010 which is this year, China reportedly has
stopped the imports of the styrene and move on to the other sources of chemicals
(Dewittworld, 2010). Thus, since China is one of the biggest imports and exports
chemicals country in Asia, this will be such an opportunities for the country or even the
companies from Malaysia to take place in the spot market.
Figure 2.6: Monthly China styrene imports in 2008 to 2010 (Dewittworld, 2010)
Figure 2.7 below shows the Asian pacific ethylene prices. Since ethylbenzene is
our main raw material to produce styrene, its essential to study the trends of the prices to
determine the suitable country that has the possibilities to imports the styrene. As we can
see from the graph, the prices ethylene started of around US$1400/MT, as time goes by
the prices of ethylene starting to show an increment and reach its highest value at around
US$2000/MT (Dewittworld, 2010). At around the month of September of 2008, there
been a drop of prices in the Asia pacific which is the lowest isUS$400/MT. This may due
to the economic factors or demand. However, the graph is slowly increasing and showing
development until the month of July 2009.
Figure 2.7: Asian pacific ethylene prices for 2008 to 2009 with unit price of US$/MT
(Dewittworld, 2010)
2.5.2
Growth has
continued at a slower pace over 2011, ensuring total demand remains above the pre-crisis
peak seen in 2007. The growth outlook for styrene is relatively positive, partly due to the
revival of polystyrene consumption growth in China. Styrene monomer is used in a broad
range of polymer derivatives, ranging from commodity polymers to engineering plastics
and synthetic rubber, namely polystyrene, expandable polystyrene (EPS), acrylonitrile
butadiene styrene (ABS), styrene acrylonitrile (SAN), styrene butadiene rubber (SBR),
styrene butadiene latex (SBL), and other copolymer resins as shown in Figure 2.8
(Nexant, 2012).
Styrenic Copolymers
SBR & Latex
Other
Polystyrene
SB Copolymer
Latex
Unsaturated
Polester Resin
ABS/SAN resin
recovery in these products over 2009. ABS and SBR grew strongly in 2010, with demand
growth at over 10 percent for both polymers. Demand for both ABS and SBR in Asia is
increasingly driven by local demand for finished products such as tyres, vehicles and
electrical appliances (Nexant, 2012).
Capacity development continues to be concentrated in Asia Pacific and the Middle
East. Asia Pacific has been the largest production base since 1997 following huge
capacity development in China, South Korea and Taiwan. Saudi Arabia has been the focus
of capacity development in the Middle East, although Iran and Kuwait have also recently
been active. Capacity in North America has been declining since the 2007 peak, due to
rationalisation in the United States. However, no further shutdowns are expected in the
short-term. Styrene capacity in Western Europe also reached its peak in 2007, and further
styrene capacity development in the region is unlikely (Nexant, 2012).
New capacity developments will be based around advantaged feedstock in the
Middle East and in China, where producers can benefit from both ethylene and benzene
availability, and proximity to market. North America, Western Europe, Japan and South
Korea are not expected to add capacity, while India is likely to start up its first styrene
plant in a few years (Nexant, 2012).
While global operating rates have increased steadily since 2009, rates are
expected to climb significantly further by 2014, due to the limited quantity of new
capacity under development. Operating rates will be high in the Middle East, due to the
production cost advantage, while those in Western Europe are also high following largescale consolidation. Asia Pacific, which will maintain a large structural styrene import
requirement, will operate around global average rates due to large capacity additions, and
the presence of several older and less advantaged units (Nexant, 2012).
Trade flows of styrene are expected to increase as a result of export-oriented
capacity development in the Middle East. North Americas net exports will gradually
decrease, while Western Europes imports will remain stable. North American producers
have substantially lost their market position in Asia Pacific as Middle Eastern exports
increased. Demand for imports into Central Europe will increase, and exports from
Eastern Europe will drop, as derivative expansions run ahead of styrene capacity
development in both regions (Nexant, 2012).
World styrene demand grew at an average annual rate of only 0.4% during 2003
2010. Rising raw material prices and weakened demand for polystyrene in the United
States, Western Europe and Japan slowed overall styrene demand growth. Growth in
these three regions will be flat to declining over the forecast period. The fastest styrene
demand growth will be in China, the Middle East, Central and Eastern Europe, and
Central and South America. Based on current capacity expansion announcements, the
United States, Canada, Japan, Singapore, the Republic of Korea, and the Middle East will
remain net exporters while Mexico, India, Thailand and other Asian countries will
continue to be net importers to 2013. Capacity closures in the United States and Western
Europe in 2009, and potentially into 2010, and continued capacity growth in China will
gradually shift global supply closer to demand in Asia. Figure 2.9 shows the world
consumption of styrene in year 2010.
China
Taiwan
Japan
Other
Asia
Rep. of Korea
United States
Western
Europe
With a history of nearly 100 years, Idemitsu has not only become a leader in the
oil and petrochemical industries and a household name in Japan, but has also
continuously expanded its business globally. Idemitsu Group's initial investment in
Malaysia goes way back to 1972 when its first joint-venture project for Polystyrene Resin
production started in Johor Bahru. Since the 1970s, Idemitsu has also established a close
relationship with the Malaysian oil industry through technology transfer and with the
purchase of Malaysian crude oil and LPG (Malaysian Investment Development Authority,
2012).
Over a period of more than 3 decades, the originally stand-alone Polystyrene
business (Petrochemicals (M) Sdn. Bhd. with a current capacity of 140,000 mt/year) has
finally gained more upstream integration with Idemitsu's styrene monomer production
operations (Idemitsu Styrene Monomer (M) Sdn. Bhd. with a capacity of 240,000
mt/year). Idemitsu also has a 12.5% equity holding in Ethylene Malaysia Sdn. Bhd. (with
Petronas and BP) which supplies Ethylene to Idemitsu's main petrochemical industry
based in Pasir Gudang, Johor for SM production. With this Styrene supply chain built in
Malaysia, Idemitsu is now exporting more than 70% of its Polystyrene directly or
indirectly to the international market and the Group's Styrene business in Malaysia
exceeded RM1.7 billion in 2007 (Malaysian Investment Development Authority, 2012).
Besides petrochemical products for the industrial market, Idemitsu has also
established a Lubricant Oil marketing subsidiary (Idemitsu Lube (Malaysia) Sdn. Bhd) in
Malaysia to supply Idemitsu's world-renowned lubricants to both industry and consumer
markets. The Group's 274-acre land in Pasir Gudang with its own exclusive chemical
jetty will be the developed further. Indeed, Malaysia is Idemitsu's home-away-fromhome, both for the company as well as our Japanese personnel (Malaysian Investment
Development Authority, 2012).
2.6
overall annual production of 50,000 MTA. Plant is expected to operate 359 days per
annum, whereby 6 days are allocated for plant shutdown and maintenance (twice a year).
Currently the production for styrene in Malaysia is much lower compared to its demand.
Thus, there is high potential for profit by manufacturing and distributing styrene in
Malaysia. The table below shows the chemical, utilities and equipment prices; and freight
cost estimation for styrene production. Refer appendix for further detail calculations.
139.28 MT/day
50,000 MTA
Styrene Monomer
(Dewittworld, 2010)
Ethylbenzene
(Dewittworld, 2010)
Benzene
Raw
Material
(Dewittworld, 2010)
Ethane
(Platts, 2012)
Methanol
(IChemeE, 2012)
Toluene
(Dewittworld, 2010)
Gasoline
Utilities
(Trading
Economics, 2012)
Water
(steam,
cooling,
FREIGHT
(RM)
-
1040/1000kg
3,249.48/ton
324.948/ton
0.54/kg
1,687.23/ton
168.723/ton
810/1000kg
2,530.845/ton
253.085/ton
47.25/gal
147.63/gal
14.763/gal
213.5277/ton
667.167/ton
66.717/ton
0.484/kg
1,512.258/ton
151.226/ton
0.59/liter
1.843455/liter
0.184/liter
31,588.70/month
63,177.39/month
2000/unit
6,249.00/unit
(x2 units)
11,800/unit
(x2 units)
36,869.10/unit
(x6 units)
30,000/unit
(x6 units)
93,735.00/unit
(x2 units)
(x2 units)
252,709.56
PCE)
Reactor
Main
Equipment
Heat Exchanger
Distillation Column
Installation
(40% PCE)
Labor
Packaging
Plastic Drum
(alibaba.com.,
17.00/unit
53.12/unit
2012)
2.7
Economic Potential
To determine the economic potential of the production of styrene, the route to
produce styrene must be decided first. Our production chooses the dehydrogenation of
ethylbenzene to form styrene, so that the only raw material used is ethylbenzene. The
equation of the dehydrogenation process is,
C6H5CH2CH3 C6H5CHCH2 + H2
(4)
From the equation above, it showed that 1 mole of ethylbenzene will dehydrogenated to
form 1 mole of styrene and 1 mole of hydrogen (refer Appendix I). Table 2.5 shows the
summary of calculation for raw material and product.
Table 2.5: Calculated values for raw material and product
Molecular weight
Quantity mole/ year
Quantity kg/ year
Ethylbenzene (EB)
106kg/kmole
480769.23 kmole/year
5.096x107 kg/year
Current
price
Table 2.4
Sell price/ year
from
RM 1,687.23/ton
3,249.48/ton
RM 8.598x107
RM 1.625x108
APPENDIX I
To calculate plant capacity based on annual production of 50,000 MTA and 359
operating days per annum:
50,000 mtric ton/year x 1 year/359 days = 139.28 metric ton/day
Dollar
$1
$5
$ 10
$ 50
$ 100 $ 200
$ 500
Ringgit RM 3.12 RM 15.62 RM 31.25 RM 156 RM 312 RM 625 RM 1562
RM3.1245 per Dollar rate on Fri, 31 August, 2012 [http://fxrate.net/USD/MYR/]
Labor cost:
Total estimation for 500 workers = 400 labors + 100 higher management team
Cost Estimation for 400 labors =
3 shifts/day x RM5/hour x 400 workers/3 workers x 30 days/1 month = RM
480,000/ month
Cost Estimation for 100 higher management team
= RM 2000/month 100 workers = RM 200 000/month
Total Labor Cost = Cost Estimation for 400 labors + Cost Estimation for 100
higher management team
= (RM 480 000 + RM 200 000)/month
= RM 680 000/month
REFERENCES
1) Alibaba.com (2012). MAPO Industries Sdn.Bhd; Plastic Drums [Online].
Available from: http://mapoindustries.trustpass.alibaba.com/product/1155005450617254/plastic_drums.html [Accessed 2 September 2012]
2) Chemicals-Technology.com (2011). Lyondell Propylene Oxide/Styrene Monomer
(POSM)
Plant,
China
[online].
Available
from:
http://www.chemicals-
(2012).
Malaysia
Styrene
Market
[online].
Available
from
http://www.mida.gov.my/env3/index.php?
mact=CompanyDirectory,mdef86,details,1&mdef86companyid=28&mdef86retur
nid=124&page=124 [Accessed 16 August 2012]
9) Nexant Inc. (2009). PERP Program: Styrene/Ethyl Benzene
10) Platts (2012). Asian Styrene Monomer Market Data [online]. Available from:
http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Petrochemicals/6556136[
Accessed 16 August 2012]
11) Platts
(2012).
US
Ethane
to
be
Plentiful
[online].
Available
from:
http://www.platts.com/rssfeeddetailednews/rssfeed/petrochemicals/6949128
[Accessed 3 September 2012]
12) Trading Economics (2012). Pump Price for Gasoline (US Dollar per liter) in
Malaysia [Online]. Available from:
http://www.tradingeconomics.com/malaysia/pump-price-for-gasoline-us-dollarper-liter-wb-data.html [Accessed 2 September 2012]