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 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.

Steven English Executive Director, Europe Aromatics Chemical Market Analytics by OPIS

Steven English has over thirty years of experience in the chemical industry. He was a business leader for many years with The Dow Chemical Company in North America and Europe. Steven has extensive polyurethane knowledge, as well as an excellent general chemical industry background. He has worked with many leading chemical companies as a consultant developing businesses, strategies, and new businesses. In recent years he has been working for Chemical Market Analytics as Director Consultant for Aromatics, including cumene phenol and acetone, as well as polyurethanes.

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.

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.

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.