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# OAR Box 1872 Prepped by Keeia Richards



# Document

Number: 

# 32 ) 11-1-8 1

Docket Number: 

# A-90-1 9

Printed 11/26/20088:51:50AM

Sheet 32 of 204

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. .'.'. • JANUAR Y 199 0 ! ' i i : 

### i?icci£aaQ^sj.- = August 1988 STYRENE

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FOCUS.oo.Styren e monomer , mad e fro m benzen e an

d ethylen e vi a ethylbenzene . i s wee dt o mak e polymer s suc h s e polystyrene , styrene-butadien e rubber , aerylenitrile-butadiene-styren a (ABS ) resins , styrensto dpolyes ter s end emulsio npslymers . Polystyren e (PS) , s thermoplasti c polymer , i s th e dominan t derivativ e o f efcyrene , accountin g for abou t 70 S o f consumption . Styren e derivative s ar e use di ns broa dspeetru m o f expli cation s includin g peekeging, ' construction , transportation , applianc e an d electronics . Betwee nlat e 198 6 and lat e 198 9 th e globa l styren e marke t ue s charecteri2o db y tigh t supplie s sn d risin g priees . Stron g deman dfo r polystyren e i n packaging , constructio nen d consume r good s bot hi nth e U S andoversee s wa s a majo r grotrt hfactor . P S demandgrowt hdurin g thi s perio daverage d15 5 pe r year , befor e fallin g of f t o a 3 2 rat e i n 1989 . Styren e capacit y rationalization s i nth e Riid-1980's , couple dwit h numerou s unschedule dan d schedule dmaintenanc e doantimes/turnaround s a t majo r facilitie s durin g th e paB. . fe uyear s contribute dt o th e tigh t market . Wit hth e hig hprie e o f styrene , comin g a s a resul t o f tigh t markets , P S an d othe r styrenei c polymer s hav e bee nsubjec t t o competitio nfro m lower-cos t resins , suc ha e polypropylene , resultin g i ns reductio n o f deman dgrowth . Hooevar , ait hth e threa t o f new cspecit y

comin g o

nbot hdomesticall y an d abroa dthroug h ne bplant s en

ddebottleneeking , an d a slowin g o f demandi ns sluggis heconomy , styren e pricin g ease don d th e threa t o f intermsteria l competitio nbecsme les s prevalen t b y th ©end o f 1989 . Th e firs t sig no f marke t softnes s wa s see ni n lowe r expor t price s i n lat e 1989 . Wit hbusines s i ngenera l levellin g of f en d s n expecte dcontinuatio no f e slo w econom y cel l int o 1990 , styren e growt hbega nt o moderat e an d spot/expor t priee 6 fel l belot

a 3 0 cent s pe r poundi n September/Octobe r befor e recoverin g t o 32-3 5 cent s b y the en d o f th e year, largel y

on th e strengt ho f a very rapi drun=upi nth e pric e o f benzene . OUTLOOK....Ove r th e longe r term , U S styren e demandi s expecte dt o gro w a t abou t 3 3 pe r yea r assumin g the t th e economi c slocsdou ni n 199 0 dos s no t persis t int o 1991 . Expor t volume s er e expecte dt o declin e aomenha t ove r the nex t fe a year s a s ne w foreigncapacit y

come s o nstream . U S supplie s o f styren e shoul db e plenti ful . I nfsct , a U S styren e oversuppl y i s expected , particularl y i f al l o f th e announce dne w capacit y

i s built . However , wit hth e prospec t o f reduce dprofit s (an d perhap s shor t ter

m losses) , e s a resul t o f seve r pric e cuttin g i n a n over-supplie dmarket , muc ho f thi s net * capacit y

may b e deferred , delaye dor cancelle d outright . Expansionar y plannin g wil l als o b e negativel y affecte db

y th e growin g impac t o f environmenta l regulation s an

d restriction s bein g place do npolystyrene-base dpackagin g an d foodservic e disposables . PRXCXNG....Althoug hstyren e value s er e influence db y suppl y an d deman dfor bot hmonome r an d polystyrene , marke t condition s for benzen e ar e normall y th e mai nfacto r i nsettin g prices . However , wit hextremel y tigh t styren e supplie s i n 198 7 an d 1986 , pricin g wa s probabl y mor e dependen t o nsupply/deman dfactor s tha n o nrat * materia l values . T o sam e extent , th e risin g benzen e price s i n198 7 (a s hig ha s $32.50/gallon ) wer e probabl y

i n respons e t o th e stron g demand/hig hpric e o f styren e and derivatives . Styren e monome r price s ros e dramaticall y

i n firs t hal f 198 7 t o a s hig ha s 6 8 cent s pe r poun di nJune . Priee s range dfro m 62-6 7 cent s i n 1988 . Pricin g ease di n 198 9 uit hloose r marke t an d loue r overal l ra

w materia l values . Expor t prices , Quote da s hig ha s 8 0 cent s i n mi d 1988 , stabilize dat abou t 5 0 cent s b y yea r end , bu t b

y mid-198 9 haddroppe dint o th e 35-6 0 cent s pe r poundrange . Price s a s Io na s 2 5 cents/lb . wer e reporte di nAugust Septembe r an

d lis t price s ha d falle ns s eiell , reachin g 3 5 cent s pe r poundi nOctober .

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880 0 AVAILABILITY....Durin g 198 8 U S producer s operate dalmos t withou t downtime , eve nfo r maintenance , i norde r t o mee t surgin g deman den d replenis hinventories . 198 8 Deman dsn d productio nbot hse t records , bu t a t a price ) a s i nearl y 198 9 severa l plant s came dow nunexpectedl y

fo r extende dperiods , causin g a sever s suppl y problem , onl y

slightl y

alleviate db

y drawin g fro

m inventor y

buil t u p i n1988 . However , b y mid-198 9 deman dbega nt o eas e and b y th e en d o f the yea r productio nwa s of f substantiall y fro m 198 8 levels . Supplie s ar e no w

plentiful , bu t wit hproductio nrate s at 9055 * o f capacity , msny producer s ar e considerin g capacit y

additions . Arc o ha s receive dBoar dapprova l t o buil da larg e ne w PO/styren e plan t at Channelview , T Xexpecte do

nstream

b y yea r en

d 1991 , wit ha styren e capacit y o f 1. 2 billio npounds . Chevro ni s expand in g t o 1. 5 billio npound s at St . James , L A by 199 1 an

d the Cos-Ma r plan t i s bein g expande db y 60 0 millio n pounds , als o o n stream b y 1991 . f>o

w i s studyin g the possibilit y o f a larg e ne w

Gul f Coas t plan t fo r th e earl y 1990's. ; Huntsma ni s addin g a 20 0 millio npoundincremen t a t Beyport , T Xdurin g 1990 . Ne w project s hav e als o bee nannounce do r ar e bein g considere doverseas . Do w plan s a 650,00 0 metri c to n plan t i n Wester nEurop e b y 1991/92 , whil e closin g tw o othe r Europea nplants . Othe r Eueropea nexpansion s ar e expecte dt o ad

d e s muc ha s 200-300,00 0 metri c ton 9 o f capacit y b y 1991/92 . I nChine , Japan , Kore a en d Taiaa nat leas t 750,00 0 mettl e ton s o f ne w capacit y

i s expecte donstrea m by 1991/92 . 8/8 7'JA N 1 5 '9 1 11:0 6 RflDIR N CORP

. RTP , NC p. 1 0 PRODUCER

S AN D CAPACITIES - STYREM E - MILLIOW

S D 7 POUKQ S PRODUCER LOCATIO N 198 9 CAPACIT Y Amoc o Tess s City , T XB6 0 arc o Beave r Valley , P A 22 0 flrco Channelviea , T X131 0 Chevro n Chemiea 1 Co

. St

. Jamas , L A 60 0 Cos-Ma r (fins/G E Plastics ) Carville , L A 150 0 Don Freeport , T X150 0 Hoechst Ceianes e (Huntsma n Chemical ) Bsyport , T X100 0 Rexen e Odessa , T X32 0 Sterlin g Chemical s Texa s City , T X150 0
TOTA L 879 0
Base de nannounce dcapacitie s sn d trad e estimates . Cos-Mar , a 50/5 0 join t ventur e o f Fin e an d Borg Warne r (no a G £ Plasties) , i s expandin g t o 1. 9 billio npound s b y 1991 . Chevro ni s expandin g t o 1. 5 billio npound s a t St . Jame s b y 1991 . Do w

ha s expande dth e majo r portio no f thei r Freepor t facilit y whil e closin g a smelle r part . Arc o reactivate dth e Beave r Valle y plsn t i n198 8 sn d expande db y 11 0 millio npound s et Channelview . I n1986 , Huntsma nChemica l acquire dth e styren e en d polystyren e busi nes s e f America nHoechs t (now Hoechs t Celsnese) . Hoechs t wa s t o operat e th e Baypor . styren e plan t fo r Huntsma nfo r fiv e years , bu t Huntsme nactuall y tee k ove r ahee do f schedul e e n11/1/89 , Deltec hCorp . ( a managemen t buyou t group ) purchase dth e idl e Hoechs t Ceianes e plan t e t Bato nRouge , LA. , includin g th e world' s onl y

para-methylstyren e plsnt . Th e purchas e exclude s a nidl e monochloroaceti c aci dplsnt . Deltech , i na join t ventur e wit hPolysar , may refurbis han d moderniz e th e styren e plan t t o a capacit y o f 90 0 millio npound s from th e previousl y

idle d60 0 millio npounds . Polysa r reportedl y wil l receiv e 60 S o f th e plant s output , wit hth e balanc e bein g sol de nth e ope nmarket . Rexen e i s reportedl y intereste di nsellin g thei r styren e business . ZtO USES....Styren e monome r i s e elear , colorless , aromati c liquid . Chemica l synonym s ar e vinylbsnzen e an d phenylethylene . Th e principa l epplication s fo r styren e ar e plastic s an d rubber . I t i s als o use dt o mak e resins , fo r protectiv e coating s an d io nexchang e resins . Th e broa dspectru m o f en d use s include s construc tion , packaging , automotiv e an d househol dgoods.'Packagin g i s th e larges t singl e use . I npackaging , styrene-containin g resins , particularl y foems , ar e use da s fillers , an d cushioning . Constructio napplica tion s includ e pipe , fittings , tanks , insulation , lightin g fixtures , an d corrosio nresistan t products . Househol dgood s includ e syntheti c marble , flooring , disposabl e tableware , an d molde dfurnishings . Trans portatio napplication s rang e from tire s t o reinforce dplastic s an d aut o bod y putty . Polystyren e (PS ) resin s ar e th e larges t outlet . Eas y moldabilit y

an d compatibilit y

wit hcolorants , modifier s an d filler s resul t i nhig hconsumptio nb y fabricator s o f packaging , disposabl e beverag e tum blers , toy s an d othe r molde dgoods . Conventiona l P S processe s mor e easil y tha nman y

othe r thermoplastic s an di s les s expensiv e tha nothe r styrenics . Expendabl e polystyren e bead s ar e use dfo r disposabl e cups , containers , en d packagin g a s wel l a s fo r insulation . Ther e i s increasin g interes t i nth e recyclin g o f P S fo r us e i ninsulation , plasti c fenc e posts , an d othe r products . Copolymer s sn d adduct s ar e th e secon d larges t famil y

o f styren e derivatives . Styrene-scrylonitril e (SAN ) an d acrylonitrile-butadiene-styren e (ABS ) resin s hav e a variet y o f application s includin g appliance , automotive , construction , pipe , an d electroni e moldings . Styren e bloc k copolymer s ar e gainin g us e i nadhesive s an d sealant s wher e th e satu rate delastomeri c segment s ar e suite dfo r us e s s th e bas e polymer s i nho t mel t an d solvent-baee dsealant s tha t requir e resistanc e t o long-ter m degradatio nand/o r weatherability . Styrene-butadien e rubbe r (SBR ) fo r tire s end-othe r elastome r application s i s th e larges t volum e syn theti c rubbe r produce di nth e US . Styrene-butadien e late xi s use dfor carpe t backin g en d pape r processing . Styren e i s a nessentia l eo-reactsn t an d solven t i nunsaturete dpolyester s fo r us e i nreinforce dplas ti c fabrication s includin g boats , corrosio nresistan t tank s an d pipes , an d aut o bod y parts . EN D US E PATTER N

- 198 9 ESTIMAT E
DERIVATIV E , PERCEN T DERIVATIV E PERCEN T Polystyren e '7 0 Unsaturate d"Polyeste r 6 SB RElastoma r & S B Late x1 0 Miscellaneou s 5 AB S & SA

N Resin s 9
MANUFACTURING . ...Excep t fo r Arco' s proces s at Channelview , TX , al l U S producer s mak e polyme r grad e styren e b y dehydrogenatin g ethylbenzene . Arco' s proces s involve s th e ai r oxidatio no f ethylbenzen e (EB ) t o ethyl benzen e hydroperoxide . Th e hydroperoxid e react s wit hpropylen e t o form propylen e oxid e an d phenylmethyl carbino l whic hi s dehydrate dt o styrene . Th e yield s ar e 2. 5 lbs . o f styren e pe r poun do f propylen e oxide . A tw o ste pproces s produce s styren e from benzen e and ethylene . E B i s synthesize db y alkylatin g benzen e an dthe nth e E B i s dehydrogenated . Ne w processes , includin g thos e wit hne w zeolit e catalysts , hav e reduce d th e ne t benzen e an d ethylen e uni t consumption . Th e Friede l Crsft s reactio no f benzen e an d ethylen e i nth e presenc e o f anhydrou s aluminu m chlorid e catalys t wit hpromoter s i s carrie dou t i na homogeneou s liqui d phas e proces s a t increase dtemperatur e an d pressur e compare dt o th e olde r two-phas e process . Hig hpurit y E B i s recovered.an dsen t t o dehydrogenation . E B i s dahydrogenate db y catalyti c reectio ni nth e ga s phas e i nth e presenc e o f super-heate dsteam , fractionatio nseparate s hig hpurit y styrene , unconverte dE B an d benzen e and toluen e crackin g products . ENVIRONMENTA L ASPECTS....Styren e i s mildl y irritatin g t o eye s an d mucou s membrsnes , an d ma y b e narcoti c i n hig hconcentrations . Th e Occupationa l Safet y 4 Healt hAdministratio nha s withdraw na propose dclassifica tio no f styren e a s a earcinogen , bu t i s considerin g lowerin g th e exposur e limi t from 10 0 t o 5 0 ppm , eight hou r time-weighte daverag e (TUA) , t o svoi dnarcosis . Ther e i s n o know nconclusiv e evidenc e availabl e t o indicat e tha t styren e i s a carcinogen . Ther e i s concer nabou t centra l nervou s syste m disorder s an

d chromo som e changes . Th e ACGI H 1989/199 0 reeommende dthreshol dlimi t valu e i s 5 0 pp m (eight-hou r TWA) . T o th e bes t o f ou r knowledge , th e informatio ncontaine dherei ni s accurate . However , w e d o no t assum e an y

liabilit y

whatsoeve r fo r th e completenes s o r accurac y o f thi 6 report .