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Aromatics & Derivatives: Actionable Market Outlooks and the Transitioning Feedstock Landscape

Thursday, 14 September
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The aromatics and fibers markets have not escaped the challenges faced by most chemical sectors this year, higher crude oil prices and exceptionally high natural gas costs in Europe and Asia, COVID lockdowns in mainland China affecting consumption, and rising inflation impacting consumer spending and driving weaker economic growth. These factors have caused demand to fall and costs to rise, to the detriment of producers all along the aromatics and derivatives chains. However, an unexpectedly tight global gasoline market that pushed octane values to record levels added an extra dimension to the dynamics of the aromatics markets this summer. Each aromatics value chain will be discussed in detail by Chemical Market Analytics experts at the World Chemical Forum and the outlook for these markets as the world adjusts to the new geopolitical climate.

Duncan Clark, Vice President, Global Aromatics, Chemical Market Analytics by OPIS
James Nicholson, Director, Benzene, Chemical Market Analytics by OPIS
Benzene, octane, and aromatics markets have experienced extraordinary volatility in recent years, especially in North America and Europe. Were market conditions in 2022 a harbinger of things to come? In this presentation Chemical Market Analytics will review the current benzene market and outline projections for the future supply / demand balances and trade in the context of an on-going energy transition, unprecedented freight rates, and other market dynamics.
Peter Feng, Executive Director, Aromatics, Chemical Market Analytics by OPIS
Traversing Alaska’s Iditarod Trail tests competitors with long distances, harsh terrain and severe weather. Styrene producers are running their own Iditarod as they face the challenges of a long, deep trough. Some competitors have already dropped out of the arduous trek as margin pressures prove to be too daunting. This presentation will explore expectations for the styrene market including outlooks for strong octane markets, tight benzene, high freight rates, POSM developments and sustainability pressures, and how those factors will force producers to adjust their strategies if they want to survive.
Brian Lee, Executive Director, Asia Aromatics, Chemical Market Analytics by OPIS
The global phenolics chain is at a crossroads. Demand growth will ultimately be driven by polycarbonates. But there are challenges to meet the demand growth. The phenolics sector faces profitability challenges for non-integrated producers as well as raw material supply issues without new cumene investment. Coproduct acetone problems are also a stumbling block to further investment. This speech will address the issues that need to be overcome for derivative demand growth expectations to be met.
Moderator: Duncan Clark, Vice President, Global Aromatics, Chemical Market Analytics by OPIS
Join us in the Hub to hear Sumitomo discuss “A Solution for Recycling Plastic Packaging Using Sumicle®”

Speaker: Eiko Ito, Assistant Manager of R&D, Sumitomo Chemical Company 

We introduce Sumicle®, a novel material developed by Sumitomo Chemical, specifically designed to enhance the recyclability of plastic packaging.

Conventional plastic packaging are composed of multiple materials, including PE, PP, PA, and PET, with different functions assigned to each polymer layer. However, the recyclability of multi-layer packaging composed of different types of materials is inferior to that of mono-material packaging.

Sumicle®, PE-based material, offers comparable rigidity and heat resistance at handling to those of PA films. By substituting PA films with Sumicle®, mono-material plastic packaging, consisting only of PE, can be achieved.

This presentation not only introduces the excellent performance of Sumicle® but also illustrates the recyclability of plastic packaging using Sumicle®.

Sessions will resume at 11:00 am

David Potter, Executive Director Aromatics & Fibers, Chemical Market Analytics by OPIS
The coming decade will bring enormous uncertainty to aromatics feedstock supplies. Approximately 50% of aromatics feedstocks are currently produced at reformer units.  That production is expected to fall as the energy transition advances and gasoline demand declines. At the same time, pygas supply from steam crackers is projected to increase. This speech will explore outlook uncertainties and the implications for aromatics feedstocks.
Duncan Clark, Vice President, Global Aromatics, Chemical Market Analytics by OPIS
As the largest polyester producing country, the performance of the mainland Chinese economy materially impacts demand for global PTA and paraxylene. We expect the lifting of COVID restrictions in mainland China result in stronger polyester growth in 2023 and potentially improve PTA and paraxylene business performance. However, large new paraxylene capacity which will operate at higher rates was added in mainland China in Q4 2022. Additional PTA capacity is coming in 2023, raising the question of whether these markets will climb out of their current downcycles. The gasoline market is also a competing outlet for paraxylene feedstocks which could put pressure on paraxylene and PTA costs. These issues will be discussed in this global overview of the paraxylene and PTA markets.
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
Ethylene Oxide and its derivatives, including glycols and other high purity Ethylene Oxide based products, currently struggle with an asymmetric situation. On one side, some market sectors face multiple issues, including significant oversupply and challenging margins. Conversely, other sectors of the ethylene oxide chain are dealing with limited supply and enjoy healthy prices. Additionally, all market sectors must continuously respond to new challenges, variables, and volatility. This presentation will address the varying market conditions and provide insights to navigate the ethylene oxide and derivatives markets in turbulent times.
Ashish Pujari, Executive Director Asia Aromatics, Chemical Market Analytics by OPIS
COVID-19 highlighted the importance of PET for hygienically storing and delivering food and beverages. However, the post-pandemic focus on sustainability is increasing. Major companies are doubling down on efforts to achieve their near-term sustainability goals, thus leaving PET fighting an uphill battle with other packaging products. Enhanced efforts are needed to highlight the dual values of PET as (1) a sustainable packaging product that (2) delivers hygienic advantages for the food and beverage markets. This speech will discuss the acceptability of PET as a product and its future with respect to competitive sustainability versus other packaging products. We will also explore whether investments in PET will continue to be economically viable.
Prem Chitkara, Executive Director-Polyester Fibers and Glycols & EO Derivatives, Chemical Market Analytics by OPIS
COVID infections in mainland China and poor economic conditions in Europe and the United States decreased fibers demand during 2022 despite a significant decline in previously high ocean freight costs. This speech will explore the impact that current and forecast market dynamics and macroeconomic conditions are projected to have on polyester fibers growth.
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
The global nylon industry has experienced substantial change over the past decade. Inter-fiber competition, the emergence of Mainland China, trade wars and COVID-19 collectively reshaped the industry landscape. The bumpy ride isn’t over yet as raw material volatility, an extended oversupply situation and macroeconomic headwinds portend continued obstacles for the industry. This speech will explore the journey towards improved profitability, why it will take longer and be tougher than previously anticipated, and how nylon producers must continue their balancing acts to weather near-term challenges.
Tobias Spyra, Director, Styrenics and Polyurethane Feedstocks EMEA, Chemical Market Analytics by OPIS
The world of polyurethane isocyanates has always known change, but never more so than now. Threats to the industry are coming from all sides, including demand slumps, regional disadvantages, overcapacity and traditional exporters becoming importers. As threats increase, so do opportunities. The end of the economic downturn will bring recovery. A high cost energy environment and enhanced focus on a circular economy are expected to catalyze increased isocyanates consumption for insulation and refurbishment . This speech will address these and other isocyanates market considerations to help you prepare your formula for strategic success.
Marcelo Wasem, Director, Americas Purified Terephthalic Acid | Polyethylene Terephthalate, Chemical Market Analytics by OPIS
The outlooks for the propylene oxide (PO) and polyether polyols industries directly affect expectations for future polyurethanes market dynamics. However, PO and polyether polyols must evolve to meet new demands in a changing petrochemical landscape as global initiatives including energy transition and decarbonization advance. This speech will explore the challenges for PO and polyether polyols, and it will present market outlooks to answer how PO and polyether polyols will support the important feedstock needs of the polyurethane industry.
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 acts as the key resource within Dow Jones for understanding and providing insight into the Aromatics sector of the petrochemical industry, he works closely with the petrochemical, oil, and financial industries. Duncan joined IHS Markit base chemicals business (now known as Chemical Market Analytics) in 2013, he has spent the last 32 years working in the chemical and petrochemical industries in various Sales, Marketing, and Global Business Management roles. Before this, Duncan spent ten years working in an ExxonMobil / Shell joint venture company, involved in Fuel and Lubricant additives visiting refineries all over the world. He also spent 12 years working for Air Products in various chemical and industrial gases businesses in the U.K., 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. He graduated with a BSc. in Chemical Engineering from University College London. He also has a Master of Business Administration from Manchester Business School.  

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

Prem serves as Director for the Polyester and Glycols & EO business for Europe, Middle-East, and African markets. Prem has the responsibility of polyester fibers, glycols & EO derivatives business for Chemical Market Analytics (CMA) at Dow Jones for the EMEA region. Prem has more than 28 years of rich and diverse industry experience globally in manufacturing, technical, expansion projects, sales & marketing, and business development, supporting him in his current role. He holds a degree in Textile Engineering and has earned an MBA degree as well. He has also completed an Executive Management Development Program from IIM Bangalore in India and also a Business Sustainability Management program from Cambridge University in the UK. Before joining CMA in 2017, Prem worked with Reliance Industries Limited for 23 years at different locations in India and Germany. He was based in Frankfurt from 2008 to 2017 where he was responsible for establishing Reliance’s Polyester business in the EMEA region.

Peter Feng Executive Director, Americas Styrenics Chemical Market Analytics by OPIS

Mr. Peter Feng is the Executive Director of Aromatics at Chemical Market Analytics. He is a known industry expert on styrene, polystyrene, and expandable polystyrene. Mr. Feng is currently the Service Leader for the North American Aromatics Market Service and has been covering the aromatics markets for over fourteen years at CMAI and IHS Markit base chemicals business (now known as Chemical Market Analytics). He has over 36 years of experience in the chemical industry working first for Air Products and Chemicals and then for Sterling Chemicals. During this time he had assignments in Process Engineering, Process Technology, Information Systems, Environmental, Supply Chain, and Commercial. In 1992 he joined Sterling Chemicals where he had various supply chain and commercial responsibilities for styrenics and other products. Mr. Feng was a Partner at CMAI when it was acquired by IHS Markit in May of 2011. He has covered the benzene, toluene, mixed xylenes, styrene, polystyrene, EPS, ABS, and phenolics markets at CMAI and Chemical Market Analytics but focuses currently on styrene, polystyrene, and expandable polystyrene. As an industry expert, he has testified as an Expert Witness in numerous arbitration and court cases. He contributes to a number of services and reports including the North American Aromatics Market Report. Mr. Feng has written for a number of World Analyses and is now responsible for the World Styrene Analysis, World Polystyrene Analysis, and World Expandable Polystyrene Analysis. He is a frequent speaker at events such as the World Petrochemical Conference, EPS Expo, Foodservice Packaging Institute, and Badger's World Styrene Conference. He has assisted with single-client work in the areas of strategic planning, mergers, and acquisitions, bankruptcies, benchmarking, litigation, and market analysis. Mr. Feng holds a Bachelors and Masters of Science degree in Chemical Engineering from Northwestern University, US, and a Master of Business Administration (MBA) degree from the University of Houston, US.

Brian Lee Executive Director, Asia Benzene, Styrene Chemical Market Analytics by OPIS

Brian Lee is the Executive Director for Styrene, Phenol, and Acetone at Chemical Market Analytics. Brian is responsible for covering Styrene, Phenol, and Acetone market analysis and the market reports on Asian Aromatics. Mr. Lee serves as an executive director at Chemical Market Analytics responsible for covering Styrene, Phenol, and Acetone market analysis and the market reports on Asian Aromatics. He contributes to various market advisory publications and supports consulting activities. His distinguished career has spanned more than 25 years in the petrochemical and chemical industries. Previously, he worked with Argus Dewitt for three years as a vice president covering Asian Aromatics. He contributed to numerous market reports, and single client studies and also hosted the Asian conference including speaking. Mr. Lee started his career with Samsung C&T Corporation where he worked for 16 years both in Asia and Europe. He was responsible for trading and marketing BTX, Styrene, PX, and PTA to global customers. Mr. Lee holds an MBA from Hanyang cyber University, and a Bachelor of Science in chemical engineering from Hanyang University, South Korea.  

James Nicholson Executive Director, America Benzene, Pygas & Reformate Chemical Market Analytics by OPIS

James Nicholson is the Executive Director for America Benzene, Pygas & Reformate at Chemical Market Analytics. Mr. Nicholson is the Research and Analysis executive director responsible for market coverage of Benzene, PyGas, and Reformate in North America.  He has 30 years of industry experience with 29 years having served Lyondell Chemical in a variety of roles including optimization, olefins feedstocks, trading, and multiple commercial roles where he was most recently Business Director – Aromatics and Oxygenated Fuels, Americas.

David Potter Executive Director, EMEA Phenolics and Americas Isocyanates Chemical Market Analytics by OPIS

David Potter is Executive Director for EMEA aromatics and phenolics at Chemical Market Analytics. Mr. Potter joined the IHS Markit base chemicals business (now known as Chemical Market Analytics) at the start of 2013, where he has been responsible for market coverage and insight across the global aromatics and fibers team. He has specialized in aromatics derivatives such as phenolics, styrene monomers, and polyurethane feedstocks for both the EMEA region and the Americas. He is currently responsible for aromatics and phenolics in the EMEA region. Prior to joining IHS Markit base chemicals business (now known as Chemical Market Analytics),  Mr. Potter worked on the petrochemical desk at Platts for close to six years, where he covered the EMEA benzene and toluene markets for over four years. He also worked on other product streams including olefins and polymers. He first entered the petrochemical world in 1999 when he was recruited by Petrochem Carless, a UK-based refiner and distributor. He worked with Petrochem Carless for nearly seven years, where he took a variety of sales and marketing roles. Mr. Potter also has a postgraduate diploma in periodical journalism.  

Ashish Pujari Vice President, Asia Aromatics | Global Polyurethane Feedstocks | Polyester Fibers & Feedstocks | Polyester Stream Chemical Market Analytics by OPIS

Ashish Pujari serves as Vice President of Aromatics and Fibres in the Chemicals team at Chemical Market Analytics in Singapore. Mr. Pujari has responsibility for the Asian Aromatics business and Global Fibres and Feedstocks business and is the service leader for subscription services covering the global Polyester, and the Asian Aromatics value chain. He also provides commercial leadership to the Polyurethanes Service within the Base chemicals group. Apart from the regular market and outlook updates, Mr. Pujari also leads initiatives in creating and updating the long-term outlook for the polyester value chain. He has also been involved in numerous consulting studies since joining the firm. Prior to joining Chemical Market Associates, Inc. (CMAI) in 2009, Mr. Pujari gained 15 years of experience with Reliance Industries Limited in India. He started his career as a project and operations engineer and was involved in the startup and commissioning of the Hazira complex on the west coast of India. He shifted to the commercial role in mid-1998 and worked as a business analyst for Reliance's executive management before shifting to a sales and marketing role, handling Fibers Intermediates. Mr. Pujari holds a B.E. in chemical and polymer engineering from Maharashtra Institute of Technology, Pune, India, and completed his Executive MBA, at the Indian Institute of Management (IIMB), Bangalore, India.  

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 30 years of experience. He is the Research & Analysis Director and global leader for Ethylene Oxide and Derivatives at Chemical Market Analytics and is responsible for market analysis, insights, price discovery, and forecasts for ethylene oxide, ethylene glycols (MEG, DEG, TEG), ethoxylates, glycol ethers (E-series), ethanolamines (MEA, DEA, TEA) and paraxylene. Also, he contributes to the market analysis for orthoxylene, PTA, PET, and PU feedstocks for North America. He joined Chemical Market Analytics and its predecessor (IHS Markit) in April 2021 from Asterisk Advisors, a petrochemical consulting company. During his time at Asterisk, he provides the full business and market-oriented assessment for the chemical and petrochemical value chain, based on deep insights into customer needs and developing a culture of performance and efficiency within its client. Previously, he was President of Townsend Solutions, a petrochemical-industry strategic consulting firm. Before joining Townsend Solutions, Roberto was in a series of Strategic Planning, Business Development, M&A, and Sales and Marketing leadership roles from petrochemical manufacturing companies, all now part of Braskem and LyondellBasell. Roberto holds a bachelor’s degree in Accounting and Finance and Business Administration from São Paulo University (Brazil). He also holds a master’s degree in Oil & Gas from Universidad Austral (Argentina) and has participated in a series of professional development courses with Harvard Business School, New York University’s Stern School of Business, and Massachusetts Institute of Technology (MIT). He has spoken at a long list of industry conferences spanning Europe, Asia, the Middle East, and North and South America.

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.

Marcelo Wasem Director, Americas Purified Terephthalic Acid | Polyethylene Terephthalate Chemical Market Analytics by OPIS

Marcelo Wasem is the Director for Americas Purified Terephthalic Acid (PTA) and Polyethylene Terephthalate (PET) at Chemical Market Analytics. Marcelo Wasem is responsible for the coverage of the Purified Terephthalic Acid (PTA) and Polyethylene Terephthalate (PET) markets in the Americas. He is responsible for the development of detailed supply/demand analysis, cost analysis, global price discovery, and price forecasting for PTA and PET. Furthermore, he is also co-author of some Chemical Market Analytics reports in the Market Advisory Service scope. Prior to joining Chemical Market Analytics, Mr. Wasem worked in petrochemical companies in Brazil, developing different roles in areas like supply chain, feedstocks, energy, and commercial, acquiring expertise through more than two decades of experience in the petrochemical industry. After moving to the United States, he developed some consultant projects on waste tire recycling.  

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 a known industry expert on nylon feedstocks and fibers, including cyclohexane, cyclohexanone, caprolactam, adipic acid, and downstream nylon fibres. With more than 15 years of commercial and technical petrochemical industry experience, She has developed an international reputation for providing meaningful analysis and actionable solutions for customers to optimize their business position with respect to the fibres industry. Prior to joining Chemical Market Associates, Inc. (CMAI) in 2009, Ms. Woo gained 6 years of experience with Invista in Taiwan. She started her career as a process engineer and was involved in plant operations before shifting to a commercial role in early 2007 and working as a planning and technical service manager, handling polyester intermediates. Ms. Woo holds a Bachelor of Engineering, Chemical Science from the National Taiwan University, Taiwan, and a master's degree in environmental engineering from the National Chiao Tung University, Taiwan.