IS INDIA READY FOR SM PLANT - Elite Conferenceseliteconferences.com/pdfs/2018/022_VT_Nandkumar_SPL.pdfUNSATURATED POLYESTER RESIN (UPR), PAINTS 8 SHARE OF DOWNSTREAM IN STYRENE DEMAND

IS INDIA READY FOR SM

PLANT ?

LEADERS IN STYRENICS

SUPREME

PETROCHEM LTD

1

INTRODUCTION

We, at Supreme Petrochem Ltd, manufacture the following

Polystyrene with a capacity of approx 272 KTA

Expandable Polystyrene with a capacity of approx 75 KTA –

Nagothane & Chennai works

Specialty Compounds producer with a capacity of 33 KTA

First producer of XPS thermal insulator boards – 100000 cubic

meter

2

INTRODUCTION

SMMA with capacity of approx 42 KT

A division handling trading of Styrene Monomer

Various recognitions and awards in the field of energy

conservation, environment protection and safety

Signatory to responsible care initiative

3

GLOBAL STYRENICS

Styrene Monomer

4

1

STYRENE TECHNOLOGIES

• Global styrene capacity – 35 million tons

• Badger / Exxon Mobil technology – dehydrogenation of EB (90%)

• Lyondell / Shell Technologies – styrene / propylene oxide (10%)

• Exelus.inc technology – From Toluene and Methanol, yet to be

commercialized

5

STYRENE TECHNOLOGIES

• Minimum economic size for styrene plant – 700 KTA

• Estimated ISBL Capital Investment – USD 250 - 300 million

• Total cost of production = 8parts benzene + 3parts Ethylene +

200~250 USD conversion

• Supreme Petrochem has a licensed technology but has decided

not to put styrene plant

6

STYRENE CAPACITY AND OPERATING

RATES, KTA

7 2013 2014 2015 2016 2017*

0

5000

10000

15000

20000

25000

30000

35000World Capacity at 100% is approximately 35MMTA

Operati

ng

Rates

STYRENE DERIVATIVES

• MAJOR POLYMERS

POLYSTYRENE (PS), EXPANDABLE POLYSTYRENE (EPS)

ACRYLONITRILE BUTADIENE STYRENE (ABS),STYRENE

ACRYLONITRILE (SAN)

STYRENE BUTADIENE RUBBER (SBR), STYRENE BUTADIENE STYRENE

(SBS)

STYRENE METHYL METHACRYLATE (SMMA)

• OTHERS

UNSATURATED POLYESTER RESIN (UPR), PAINTS

8

SHARE OF DOWNSTREAM IN STYRENE

DEMAND

9

0.32

0.23

0.2

0.25 PS

EPS

ABS

OTHERS

INDIAN STYRENICS

Current Scenario

10

2

STYRENE IMPORTS IN INDIA, KTA

11

2013-14 2014-15 2015-16 2016-17 2017-18*

0

100

200

300

400

500

600

700

800

900

STYRENE IMPORTS, KTA

12

SHARE OF DOWNSTREAM IN STYRENE

DEMAND

13

0.48

0.16

0.14

0.22

PS

EPS

ABS

OTHERS

DERIVATIVES DEMAND IN INDIA

14

Yearly demand

(KTA)

2013-14

2014-15

2015-16

2016-17

2017-18

PS

217

238

261

275

290

EPS

80

82

91

102

112

ABS

200

250

280

360

420

Type – Crystal Clear

Refrigerator parts, Sheets,

Insulation – xps, Food trays,

Medical disposables, Packaging

POLYSTYRENE APPLICATIONS

Type - High impact

Refrigerator components,

Thermoformed food and non food

packaging, Molded parts of Air-

conditioner, Computer housings,

Compounds for electricals, 3D

Printing

15

16

Applications of PS

Stretch Blow

Molded Bottles

TV- Cabinets

Pens, Packages, Containers

EPS APPLICATIONS

STANDARD

1. APPLIANCE

PACKAGING

2. AUTOMOTIVE

PACKAGAING

3. INSULATION

4. FISH BOXES

5. DECORATIVE

SHAPE

MOULDINGS

FLAME

RETARDANT

1. 3D PANEL

2. INSULATED

CONCRETE FORM

3. GEOFOAM

4. BUILDING

INSULATION

5. LIGHT WEIGHT

CONCRETE

FOOD GRADE

1. FOOD

SERVICEWARE

2. COFFEE CUPS

3. FOOD TRAYS

4. THIN WALL

MOULDINGS

5. MEDICAL

DISPOSABLE

PACKAGING

17

18

Custom duty on styrene is 2%

India has entered into an agreement with following countries

> Singapore

> Malaysia

> Indonesia

> Thailand

> Korea

> Japan

Duty on styrene is NIL if its imported from the above countries

Rest of all the places, the duty on Styrene is at 2% basic

DUTY

19

There are two methods of manufacturing styrene

1) The conventional method of Ethyl Benzene (EB) route

2) Propylene Oxide route - Styrene derived as a by product and P.O. is

considered as the main product

-> Thumb rule – app. 0.785% of benzene & 0.285% of Ethylene is used to

manufacturing of SM

-> The manufacturing cost plus a conversion cost of approx 150-180 USD.

-> Delta of approx USD 250/MT

MANUFACTURING

20

Delta between Benzene to Styrene for last one year

Average delta for the year USD 513.45. Same trend for last 2-3 years

Month Styrene Benzene Difference Sep-17 1359.50 787.30 572.20

Oct-17 1218.13 785.88 432.25

Nov-17 1258.13 840.63 417.50

Dec-17 1060.50 705.60 354.90

Jan-18 1375.63 922.75 452.88

Feb-18 1429.38 903.25 526.13

Mar-18 1360.00 853.13 506.87

Apr-18 1360.63 838.08 522.54

May-18 1421.25 857.83 563.42

Jun-18 1453.00 831.60 621.40

Jul-18 1390.00 840.00 550.00

Aug-18 1457.50 879.13 578.37

Sep-18 1426.88 850.42 576.46

21

• ADD imposed by China – Taiwan, South Korea & USA

• USA & Korea – Cargo in India

• Reduction in import – Singapore & Middle east

• By 2020 China will be self sufficient – May start export

currently China is importing app 2.5-3 million

Anti Dumping Duty / Trend flow GLOBAL

IMPACT

IS IT TIME FOR INDIA TO INVEST

?

Why not…

Reasoning

High spread between Benzene-Styrene

Benzene is getting exported today by majors

The duty benefits are taken away – Entire/Partly by the S.E. producers

The shipping cost of app USD 20-55/MT is spread from M.E. to Singapore to

Korea, which is going to have an advantage for a local Manufacturer.

Indian demand – 750 KT – increasing trend of 5% - by 2022 – 1 Million MT

Forex saving

Employment generator 22

STYRENE DEMAND PROJECTIONS, KTA(5%

growth)

23

2018 2019 2020 2021 2022 2023

0

200

400

600

800

1000

1200

IS IT TIME FOR INDIA TO INVEST

?

Challenges – for refineries

Alternate/ better use of Ethylene ?

The demand is throughout the country from

Ennore – Vizag – Delhi – Gujrat -> Mumbai -> Manglore

Proper vessel network – to manage logistics

The biggest threat – 2020-China self sufficent

24

25

THANK YOU

Any questions?

You can find me at

vt [email protected]