Aromatics & Derivatives: Pushing through a Feedstock Transition

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Aromatics & Derivatives: Pushing through a Feedstock Transition

Wednesday, 11 September
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After a year of weak demand and residual global excess capacity, mainly in mainland China, 2023 represented the low point of the business downcycle for many aromatics products. The strong gasoline market helped many aromatics producers sell intermediates with high octane into the gasoline blend pool and achieve margins unavailable in the core products. Even though global GDP growth is expected to be moderate in 2024, it should be a year of improved aromatics and fiber margins as limited new capacity is expected online worldwide. However, there is much uncertainty about the strength of the gasoline crack spreads and octane values and many aromatics suppliers will want to have the flexibility to shift reformate use for gasoline or aromatics extraction. At the 2024 World Chemical Forum, Chemical Market Analytics’ experts will elaborate on the opportunities and challenges seen for the aromatics markets in 2024, from feedstocks to end-use applications, and share their views of the key drivers affecting the longer term outlook in each value chain.

Duncan Clark, Vice President, Global Aromatics, Chemical Market Analytics by OPIS
David Potter, Vice President European Aromatics, Chemical Market Analytics by OPIS
Benzene is the key building block for many aromatics value chains, but the global market is perennially beset by supply challenges that cause regional cost disparities, inconsistencies in trade flows and fluctuations in downstream consumption. The market is regularly influenced by changes in refining and steam cracking, whilst production of other aromatics remains critical to forward supply. Chemical Market Analytics will provide the long-term outlook for the global benzene markets including regional supply and trade flows. We will also examine the impact created by gasoline regulation, energy transition and the circular economy as well as growth potential in a fast-changing world.
Peter Feng, Executive Director, Aromatics, Chemical Market Analytics by OPIS
China’s drive to become self-sufficient has added a record amount of new capacity to the market. However, styrene demand is suffering from regulatory bans, pressure from other materials and a slow down in construction. The styrene market needs to right size itself but that’s not easy when some producers are operating for propylene oxide. Styrene producers are adopting new strategies to help survive the market downturn, such as selling EB, controlling production and extending turnarounds. Sustainability is changing the entire styrenics chain so producers must metamorphosize and adapt to the changing environment.
Steven English, Executive Director, Europe Aromatics, Chemical Market Analytics by OPIS
Moderator: Duncan Clark, Vice President, Global Aromatics, Chemical Market Analytics by OPIS
Make new connections or join familiar faces during this dedicated networking break. Sessions will resume at 11:00 am
James Nicholson, Executive Director Aromatics Americas, Chemical Market Analytics by OPIS
 
Duncan Clark, Vice President, Global Aromatics, Chemical Market Analytics by OPIS
The paraxylene and PTA markets have been deeply affected by the strength seen in gasoline over the last two years, with octane pressure impacting production margins but providing a better outlet for reformate for refinery integrated producers. The overcapacity in paraxylene has not really been felt as volume has been cut back. PTA investments continue in China at a rapid pace providing solid demand and mainland China’s emergence from COVID has given a tremendous boost to the polyester, PTA and paraxylene industries. However, how will market dynamics change when the gasoline market weakens again? Will the capacity come crashing back to the market?

The presentation will outline Chemical Market Analytics’ expectation on future gasoline naphtha market dynamics, the effect of trade and octane on paraxylene and PTA.

Moderator: Ashish Pujari, Executive Director Asia Aromatics, Chemical Market Analytics by OPIS
Sessions are to resume at 2:00 PM after lunch.
Peter Feng, Executive Director, Aromatics, Chemical Market Analytics by OPIS
Roberto Ribeiro, Executive Director, EO & Derivatives, Chemical Market Analytics by OPIS
The presentation delves into the dynamic market landscape for ethylene oxide, glycols, and derivatives, scrutinizing the asymmetrical impacts that is disrupting the market equilibrium. We begin by outlining the fundamental role of ethylene oxide and glycols in various industrial sectors, emphasizing their significance in the production of plastics, solvents, and antifreeze, among others. The paper then explores the market trends, focusing on supply-demand disparities and pricing volatility. The key driver of the actual asymmetry, oversupply, is thoroughly examined to understand their short-term and long-term implications on market stability. Additionally, we analyze the ripple effects of these asymmetries on related industries and global trade, driven by short-term disruptions like supply chain bottlenecks or regulatory changes, others are indicative of long-term shifts, potentially reshaping the industry landscape.
Ashish Pujari, Executive Director Asia Aromatics, Chemical Market Analytics by OPIS
Prem Chitkara, Executive Director-Polyester Fibers and Glycols & EO Derivatives, Chemical Market Analytics by OPIS
Despite a subdued economy, mainland China led tremendous growth of polyester fibers in 2023 amid a spurt of new fibers capacity. This speech will explore how polyester fibers growth will evolve in 2024 when apparel brand and retailers want to increase focus on sustainability while virgin fibers remain far more competitive than recycled fibers.
Make new connections or join familiar faces during this dedicated networking break. Sessions are to resume at 4:00 PM.
Meiko Woo, Executive Director Global Nylon, Fibers & Feedstocks, Chemical Market Analytics by OPIS
With the uncertain health of this market and continuous expansions in Mainland China, the nylon industry is reaching a point for players to consider whether to bail or stay in the game. This presentation comprehensively analyzes which nylon players/markets could stand a chance to get across the finish line from cost, demand, and supply perspective.
Tobias Spyra, Director, Styrenics and Polyurethane Feedstocks EMEA, Chemical Market Analytics by OPIS
The global isocyanates markets have ever been a dynamic growth engine for domestic producers and even outperformed global GDP. The petrochemical landscape and its growth patterns have changed with energy costs rising and private consumption hit hard after the Covid run. MDI and TDI markets must evolve to meet new demands in an ever changing petrochemical landscape via decarbonization and energy transition from refinery to crackers down to isocyanates. This speech will explore the challenges for MDI and TDI, and it will present market outlooks to answer how it will support the important feedstock needs of the polyurethane industry going forward.
Phillip Smee, Director Polyurethane Feedstocks, Chemical Market Analytics by OPIS
Two years of massive expansion into the propylene oxide chain paired with a soft global economy have led to an imbalance between PO and thus polyurethane supply and demand situation. Exit strategies for some, regional disadvantages, traditional exporters becoming importers and technological as well as environmental push will and are topics to be addressed going forward. The polyurethane industry however is and will remain the frontrunner as soon as global economy picks up in particular to address topics around reducing carbon footprint, concentrating on circular economy catalyzing demand for insulation. This speech will address these and other PO market considerations to help you prepare your formula for strategic success.
Peter Feng, Executive Director, Aromatics, Chemical Market Analytics by OPIS

 

Session Speakers

Duncan Clark Vice President, Global Aromatics & Fibers Team Lead Chemical Market Analytics by OPIS

Duncan Clark is the Vice President of the Global Aromatics and Fibers business at Chemical Market Analytics. Duncan Clark is the vice president of Global Aromatics and Derivatives, based in Chemical Market Analytics’ London office. Duncan joined the company in 2013 as the EMEA Aromatics Director, taking over the global Aromatics team leadership in 2017. Duncan has 40 years of experience working in the global petrochemical and chemical industries in various Sales, Marketing, Corporate Business Development, Business Management and Consultancy roles. Duncan maintains a view of global developments in all major aromatics markets and works closely with petrochemical producers, consumers and financial institutions worldwide, providing insight and future expectations. He has specific expertise in the polyester feedstocks markets. He is a regular speaker at Chemical Market Analytics’ regional conferences. He leads a global team of Aromatics consultants and analysts. He is responsible for the commercial strategy and client support for a broad portfolio of Aromatics services focused on individual aromatics value chains. He also regularly forms part of the project team for Chemical Market Analytics’ single client studies. Before this, Duncan spent ten years working in an ExxonMobil / Shell joint venture company involved in fuel and lubricant additives and visited refineries worldwide. He also spent 12 years working for Air Products in various chemical and industrial gas businesses in the UK, U.S., and Netherlands. He now provides insights into the global aromatics and derivative markets, including paraxylene, purified terephthalic acid, ethylene glycols, polyurethane feedstocks, and the global benzene, toluene, and xylenes markets. Mr. Clark has a Bachelor of Science in Chemical Engineering from University College London and a Master of Business Administration from Manchester Business School.  

Prem Chitkara Executive Director, Polyester Fibers, Glycols & EO Derivatives Chemical Market Analytics by OPIS

Prem is the Executive Director of Polyester Fibers, Glycols & EO Derivatives for the European, Middle-East, and African markets. Prem Chitkara is the executive director for polyester fibers, glycols & EO derivatives in Europe, the Middle East and Africa (EMEA region) at Chemical Market Analytics. With over 30 years of experience, Prem is a key resource within the business for understanding and insight into polyester fibers, glycols and ethylene oxide (EO) derivatives. He works closely within the EMEA region with various stakeholders, including manufacturers & buyers, convertors, end consumers and financial industries, bringing support and guidance through the polyester and EO chains. His current area of focus includes oversight of the ‘Global Polyester Fibers and Feedstocks’ reports as well as primary input and insight for the ‘Market Advisory - Global Ethylene Oxide, Glycols and EO Derivatives,’ ‘World Analysis- Polyesters’ and ‘World Analysis- Ethylene Oxide and Monoethylene Glycol (MEG).’ Prem has rich and diverse industry experience globally in manufacturing, technical, expansion projects, sales & marketing, and business development, supporting him in his current role. Before joining the consulting business in 2017, Prem worked with Reliance Industries Limited for 23 years at different locations in India and Germany, where he was responsible for developing Reliance’s Polyester business in the EMEA region. He holds a degree in Textile Engineering and earned an MBA. He has completed an Executive Management Development program at the Indian Institute of Management, Bangalore, India, and a Business Sustainability Management program at Cambridge University in the UK.

Steven English Executive Director Aromatics and Polyurethanes, EMEA Chemical Market Analytics by OPIS

Prem is the Executive Director of Polyester Fibers, Glycols & EO Derivatives for the European, Middle-East, and African markets. Steven English is an Executive Director of aromatics in Europe, the Middle East and Africa at Chemical Market Analytics. Steven has worked primarily in the aromatics and polyurethanes arena while at the company. With over 30 years of experience, Steven has a wide range of experience within the chemical industry globally and has worked as a consultant to the industry before joining Chemical Market Analytics just over two years ago. Steven looks after the cumene, phenol and acetone chain in the EMEA region. He works closely with all producers and end users in the value chain, focusing on pricing, supply, capacity changes, imports and exports to give a complete picture of the business. He also looks after MDI and TDI in the region, where his wealth of knowledge and keen observations bring insights into the polyurethanes industry. Additionally, Steven is the global service lead for our polyurethane activities. With a wide range of experiences in the chemical industry throughout the world, he is recognized as a global expert in polyurethanes, having led a global producer. He has also worked as a consultant to the chemical industry for many years, assisting with new chemical plant developments. He has an excellent understanding of the phenolics chain and its derivatives and has worked with many end products in his previous roles. Mr. English has a Bachelor of Science in Chemical Engineering from the University of Newcastle upon Tyne.

Peter Feng Vice President, Aromatics & Fibers Americas Chemical Market Analytics by OPIS

Mr. Peter Feng is the Vice President of Aromatics & Fibers Americas at Chemical Market Analytics. Peter Feng is the Vice President of Aromatics & Fibers. He is responsible for the North American Aromatics Service and covers the styrene, polystyrene and expandable polystyrene markets in the Americas for Chemical Market Analytics. With over 35 years of experience in various assignments, Peter has a breadth of knowledge in multiple disciplines and products. Peter is a key resource for understanding and insight into the aromatics sector of the petrochemical industry. Within the Americas, he leads the North American Aromatics Service. While his current area of focus is the products in the styrenics chain, he has covered many of the aromatics products at once. In addition to North American Aromatics, he contributes to several different services and is a key contributor to the World Styrene Analysis, World Polystyrene Analysis and World EPS Analysis. During his time at Chemical Market Analytics and predecessor companies, he has contributed to several bespoke client studies, including the development of a marketing plan for a new Middle East plant, a site assessment for a U.S. plant, strategic analysis for refineries and chemical plants, strategic purchasing analysis, etc. As a renowned expert, he has been sought after as a testifying expert in numerous legal cases. He is often a guest speaker at various conferences and industry events. Before his role in market consulting, he worked at Air Products and Sterling Chemicals. He had assignments in Process Engineering/Technology, Information Systems, Projects, Environmental, Supply Chain and Commercial teams during this time. Peter Feng has a Bachelor of Science and Master of Science in Chemical Engineering from Northwestern University and a Master of Business Administration from the University of Houston.

James Nicholson Executive Director, America Benzene, Pyrolysis Gasoline (Pygas) and Reformate Chemical Market Analytics by OPIS

James Nicholson is the Executive Director for America Benzene, Pyrolysis Gasoline (Pygas) and Reformate at Chemical Market Analytics. James joined the company three years ago and has provided insight into the world of olefins and aromatics, given his broad background and extensive international experience in the petrochemicals sector. His current area of focus and attention is benzene, but he also provides market coverage and analysis for pyrolysis gasoline (pygas) and reformate. He is a resource for the toluene and mixed xylenes markets as well. Responsibilities include the production of both the short and long-term price forecasts and short and long-term supply and demand balances for benzene, toluene, mixed xylenes (BTX) and pygas in the Americas region. James and the aromatics team also provide the primary input for the World Analyses reports for BTX and pygas. James’ prior industry experience includes nearly 30 years of process engineering, manufacturing and production engineering, olefins optimization and operations planning, including feedstock selection and feedstock breakeven analyses, financial analysis, NGL feedstock trading and procurement, and business management. He served as both a Marketing Manager for benzene and styrene and Business Director for Aromatics and Oxygenated Fuels for eight years, where he was responsible for purchasing 1 million tons per year of benzene and selling 1.3 million tons per year of styrene. Mr. Nicholson has both a Bachelor of Science in Chemical Engineering from Texas A&M University at College Station, Texas and a Master of Business Administration from Texas A&M University at Corpus Christi, Texas.

David Potter Vice President Aromatics and Fibers, EMEA Chemical Market Analytics by OPIS

David Potter is Vice President of Aromatics and Fibers, EMEA, at Chemical Market Analytics. David joined the Chemical Market Analytics team in January 2013 and is Vice President for the EMEA team, with product responsibility for pygas and benzene. David has expertise across several markets within the aromatics and fibers sector, including styrene monomers, phenolics, polyurethane feedstocks and ethylene oxide and derivatives. Between 2016-2018, David had global responsibility for Chemical Market Analytics daily pricing and market update reports for aromatics and light olefins. David joined the Chemical Market Analytics team from Platts, where he was an editor in the petrochemicals team responsible for price discovery, assessment, and editorial content on various petrochemical markets. However, David mainly focused on aromatics, where he was responsible for the benzene market coverage for over five years. Before his time at Platts, David worked for Petrochem Carless (now Haltermann Carless) for eight years between 1999-2007. He undertook many commercial roles here, including product management and customer service manager. He was responsible for buying and selling many different aliphatic and aromatic products, ketone solvents, antifreeze and glycols, plus undertaking many roles around road, rail and shipping logistics. David has a Bachelor of Arts in Media and a postgraduate diploma in Periodical Journalism.  

Ashish Pujari Vice President, Asia Aromatics & Fibers Chemical Market Analytics by OPIS

Ashish Pujari is the Vice President of Aromatics and Fibres at Chemical Market Analytics in Singapore. Ashish Pujari is the Vice President for Aromatics and Fibers in Asia. He has over 30 years of experience in the petrochemical industry, mainly focused on the polyester and raw material value chain, which stretches from project design, operations, sales & marketing and business development. Over the past 15 years, he has focused on market research and consulting for the polyester and raw material industry. He is responsible for providing thought leadership to the sector and guiding our long-term forecasts. Ashish works with the Asian petrochemicals industry and coordinates support across the value chains. His current products of focus are Paraxylene, terephthalic acid (PTA) and Polyester, covering the regional dynamics and guiding the global outlook. He also actively continues to focus on sustainability developments in the polyester sector. Ashish has also been instrumental in launching several reports, including the pricing reports for Aromatics in Asia and the Global Polyurethanes & Feedstock report. Ashish joined CMAI in 2009, with a responsibility to cover the Asian PX and polyester markets and has taken additional responsibilities through our transition to Chemical Market Analytics. Before joining CMAI, Ashish worked for Reliance Industries Ltd. (RIL) in India and was leading the M&A activity in the polyester sector at the time of his exit in 2009. Ashish joined RIL as a fresh engineer in 1994 in the project design and construction group and later progressed to operations. He also worked in sales & business development, becoming the North India regional sales lead for raw materials. Ashish holds a Bachelor of Engineering (Polymers & Chemical) from the University of Pune, India, as well as an Executive Management diploma from the Indian Institute of Management, Bangalore.  

Roberto Ribeiro Executive Director, Global Ethylene Oxide | Ethylene Glycol Chemical Market Analytics by OPIS

Roberto Ribeiro is the Executive Director for EO & Derivatives in the Americas at Chemical Market Analytics. Roberto Ribeiro is a seasoned chemical and petrochemical expert with over 30 years of experience. He is the Global Executive Director for EOD (ethylene oxide derivatives) and PET at Chemical Market Analytics. In this role, he is responsible for the research and analysis of a wide range of products, including PET, PTA, PX, ethylene glycols (MEG, DEG, TEG), high-purity ethylene oxide, and its derivatives such as ethoxylates, glycol ethers (E-series), ethanolamines (MEA, DEA, TEA), and polyethylene glycols (PEGs). Roberto works closely with the chemical and petrochemical sectors and other markets, such as plastic converters, brand owners, oil and gas, and financial industries, providing support and guidance throughout various business chains. His current focus areas include overseeing the Market Advisory Services' 'Global PET Stream Report' and 'Global Ethylene Oxide, Glycol, & Derivatives Report,' as well as providing primary input and insights for the World Analysis Services' 'World Analysis – Paraxylene,' 'World Analysis – Polyester,' 'World Analysis – PTA/DMT,' and 'World Analysis - Ethylene Oxide and Monoethylene Glycol.' He joined Chemical Market Analytics in April 2021, having previously served as President of Townsend Solutions, a strategic consulting firm in the petrochemical industry. Before his tenure at Townsend Solutions, Roberto held various leadership roles in strategic planning, business development, M&A, and sales and marketing at petrochemical manufacturing companies, many of which are now part of Braskem and LyondellBasell. Roberto's career began at Eastman Kodak and then Polibrasil Resinas, S.A., where he progressed from Marketing Intern to Head of Marketing in just five years, developing a deep customer empathy and talent for conducting in-depth market analyses. Roberto holds a bachelor's degree in Accounting and Finance and Business Administration from São Paulo University (Brazil). Additionally, he holds a master's degree in Oil & Gas from Universidad Austral (Argentina). He has participated in various professional development courses with Harvard Business School, New York University's Stern School of Business, and the Massachusetts Institute of Technology (MIT). He has been a speaker at numerous industry conferences across Europe, Asia, the Middle East, and North and South America.

Phillip Smee Executive Director, Polyurethane Chemical Market Analytics by OPIS

Phillip Smee is the Executive Director of Polyurethane in the Americas at Chemical Market Analytics. Phillip Smee is an executive director of aromatics and fibers responsible for polyurethane and feedstocks in the Americas. He has over 30 years of experience in the oil, gas, chemical and process industries before joining Chemical Market Analytics. He is a regional expert on polyurethanes and feedstocks and brings his diverse background to provide deep analysis of the markets. He contributes to polyurethane market reports and several World Analysis covering polyurethane feedstocks and polyols. He has ten years of production experience in polyols and eight years of production experience in isocyanates. During his career, he has lived and worked in Australia, New Zealand, Indonesia, China, Hong Kong, the USA, Saudi Arabia and the UK while holding roles in operations, engineering, project management and performance management. He has an Honors Degree in Chemical Engineering from the University of NSW, Sydney, Australia and is a Fellow of the Institute of Chemical Engineering and a Chartered Engineer.  

Tobias Spyra Director, EMEA Styrenics & Polyurethane Feedstocks Chemical Market Analytics by OPIS

Tobias Spyra is the Director for EMEA Styrenics & Polyurethane Feedstocks at Chemical Market Analytics. Mr. Spyra joined the European aromatics and fibers team in 2016 and his current role in Chemical Market Analytics is as Director of Styrenics and Polyurethane Feedstocks in Europe, the Middle East, and Africa region. As a key resource within Chemical Market Analytics for understanding and providing insight into the Aromatics sector of the petrochemical industry, he works closely with the petrochemical, oil, and financial industries. He specializes in cumene, phenol, acetone, AMS, BPA, solvents, styrene monomer, and its derivatives as well as the in the isocyanates, polyether, and polyester polyols markets. Prior to joining Chemical Market Analytics, he worked in the chemical and petrochemical industries in various Sales, Marketing, and Global Business Management roles at Ineos, Innovene, and BP. Fluent in English, Spanish, and German.

Meiko Woo Executive Director, Global Nylon Fibres & Feedstocks Chemical Market Analytics by OPIS

Meiko Woo is an Executive Director for Global Nylon Fibers and Feedstocks service at Chemical Market Analytics. Meiko Woo is the service leader for the nylon fibers and feedstocks service at Chemical Market Analytics. She also contributes to the polyester fibers and feedstocks service in North America. With over 20 years of experience, Meiko is a key resource within the business for understanding and insight into the fibers sector of the petrochemical industry. Meiko has developed an international reputation for providing meaningful analysis and actionable solutions for customers to optimize their business position concerning the nylon and polyester fibers industry. Her relevant skills include a keen commercial and technical understanding of the nylon and polyester value chain and robust analytical capabilities to drive toward data-driven conclusions. Before joining the predecessor of Chemical Market Analytics in 2009, Meiko worked for six years with Invista in Taiwan. She started as a process engineer and was promoted to Utility Area Plant Manager in 2004 and T10 Technical Plant Manager in 2006 before shifting to a commercial role in early 2007 and working as a planning and technical service manager. With her strong technical background, she liaised between the commercial team and manufacturing. Meiko has a Master's in Environmental Engineering from the National Chiao Tung University and a Bachelor of Science in Chemical Engineering from the National Taiwan University.
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