a-Methylstyrene    

*Millions of pounds per year of high-purity grades of alpha-methylstyrene (AMS) recovered as a byproduct of phenol-acetone operations. Not all companies that produce phenol and acetone by cumene peroxidation isolate AMS. Significant quantities of AMS coproduct are hydrogenated back to cumene for recycling.

Frontier Oil’s plant in El Dorado , Kan. , was previously owned by Texaco. In 1998, the plant was transferred to Equilon Enterprises, the JV between Texaco and Shell. In 1999, Frontier purchased the plant from Equilon. Frontier’s AMS is marketed by The Plaza Group (Houston, Tex.)

In 1998, Sunoco acquired Allied-Signal’s plant in Frankford , Pa.

Aristech, a subsidiary of Mitsubishi (Japan) reduced its AMS capacity in 1999, in Haverhill , Ohio , when its phenol unit was modified. In January 2001, Sunoco acquired Aristech.

Profile last published 5/7/01 ; this revision 12/15/03 .

DEMAND

2001: 100 million pounds; 2002: 120 million pounds; 2006: 135 million pounds, projected. Trade data for AMS are not reported by the Department of Commerce. Imports and exports are each believed to approximate 10 million pounds per year. INEOS Phenol (Belgium/Netherlands) is the largest exporter of AMS to the U.S. Sunoco is the largest U.S. exporter of AMS.

GROWTH

Historical (1997 - 2002): -1.6 (negative) percent per year; future: 2.5 percent per year through 2006.

PRICE

Historical (1997 - 2002): High, $0.50 per pound, list, refined, tanks, works; low, $0.50, same basis. Current: $0.50, same basis. Current market prices, $0.45 to $0.50, same basis.

USES

Acrylonitrile-butadiene-styrene (ABS) resins, 30 percent; para-cumyl phenol (PCP), 25 percent; adhesives and coatings, 23 percent; waxes, 12 percent; miscellaneous, including resins, tackifiers, antioxidants and intermediates, 10 percent.

STRENGTH

Except for the recent recession, AMS demand has increased steadily in its niche markets, including the major outlet to plastics that require high-heat resistance. AMS does not have a serious competitor in these niche uses. Its largest application, ABS resin, is used primarily in durable goods and is therefore sensitive to general economic conditions - hence, the decrease in demand in 2000 and 2001. ABS is currently growing at 2.3 percent per year, which will be reflected in the AMS demand growth.

PCP has been a fast growing market segment for AMS since the 1990s and now accounts for 25 percent of the take. PCP is used as a chain terminator for molecular weight control in polycarbonate and epoxy resins; both of which are growing at more than 3 percent annually.

WEAKNESS

There is no apparent weakness at this time. AMS supply is tied to phenol/acetone production from cumene. Curtailed production of phenol in 2001, however, led to a more-than-proportional reduction in AMS supply, forcing market prices to increase.

OUTLOOK

AMS demand in the U.S. will roughly follow slightly lower than GNP growth, or about 2.5 percent. In the production of ABS resins, AMS will grow about 2.3 percent annually. PCP had been growing at more than 10 percent but will slow to a more modest 3 plus percent as its applications mature. AMS supply should be more than adequate as the phenol demand cycle has turned to the upside this year and should continue in this manner through 2007.

HISTORICAL DATA