Shell Chemicals said Wednesday it estimated potential annual demand growth for benzene of 3.9% between 2011-2014.
It said in a statement that the potential growth in benzene demand would be "underpinned by derivatives demand growth, including 3.6% for styrene, 5.1% for cumene/phenol (3.5%) and aniline (4%)."
Sven Royall, Shell Chemicals Vice President for Intermediates added that automotive manufacturing and the construction industry -- which he described as "slowly improving" -- would be where "much of the future growth in the demand is likely to emerge."
He added: "In large part, this will be because C6-derived products are well suited to meet the needs of a low-carbon age. Their light-weight and insulating properties can help reduce energy consumption and lower CO2 emissions, while their 'process ability' is enabling designers to engineer a variety of stronger, more flexible parts and products that meet the needs of a wide range of manufacturing industries."
Royall also said that there was now "a ground swell of opinion throughout the industry that better times are coming. There are also significant opportunities for future growth if the supply chain remains flexible, competitive and creative."
He noted that Shell's "major customers and their customers are expressing confidence that the materials and products made from or with aromatics will continue to be in demand, with new applications driving growth in a number of markets."
Royall said there were still problems within the aromatics and derivatives markets however. "Global styrene producers, for example, are still grappling with average industry operating rates around 82%, the lowest since 1990," he said.
Royall added that even with a positive outlook for future downstream demand, Shell Chemicals was not looking to expand towards the downstream.
"Having long since withdrawn from the downstream sector of the C6 value chain, we have no intention of returning," Royall said.
It said in a statement that the potential growth in benzene demand would be "underpinned by derivatives demand growth, including 3.6% for styrene, 5.1% for cumene/phenol (3.5%) and aniline (4%)."
Sven Royall, Shell Chemicals Vice President for Intermediates added that automotive manufacturing and the construction industry -- which he described as "slowly improving" -- would be where "much of the future growth in the demand is likely to emerge."
He added: "In large part, this will be because C6-derived products are well suited to meet the needs of a low-carbon age. Their light-weight and insulating properties can help reduce energy consumption and lower CO2 emissions, while their 'process ability' is enabling designers to engineer a variety of stronger, more flexible parts and products that meet the needs of a wide range of manufacturing industries."
Royall also said that there was now "a ground swell of opinion throughout the industry that better times are coming. There are also significant opportunities for future growth if the supply chain remains flexible, competitive and creative."
He noted that Shell's "major customers and their customers are expressing confidence that the materials and products made from or with aromatics will continue to be in demand, with new applications driving growth in a number of markets."
Royall said there were still problems within the aromatics and derivatives markets however. "Global styrene producers, for example, are still grappling with average industry operating rates around 82%, the lowest since 1990," he said.
Royall added that even with a positive outlook for future downstream demand, Shell Chemicals was not looking to expand towards the downstream.
"Having long since withdrawn from the downstream sector of the C6 value chain, we have no intention of returning," Royall said.
