INTERVIEW: INEOS sees firm PP sector in Europe

19 April 2007 10:38  [Source: ICIS news]

LONDON (ICIS news)--INEOS Polyeolefins (INEOS PO) sees a strong polypropylene (PP) market in 2007 and beyond, PP business director Pete Grant said in an interview with ICIS news on Wednesday.

 

“The market is tight and stocks are at a record low,” he said.

 

INEOS PO’s 200,000 tonne/year PP1 unit at Geel in Belgium would close as planned during the second quarter.

 

“INEOS PO is a long-term player in Europe. We are aiming to provide long-term sustainable assets to serve customers with whom we want to develop and grow.

 

“Parts of the PP commodity market will commoditise more. This is one reason we are closing PP1. We want to be prepared as we move towards the bottom of the cycle,” he said.

 

The bottom of the cycle was not in sight for some time, however, as producers generally expected to be able to ride through 2007 and most of 2008 with little disturbance from new lower-cost capacity until 2010.

 

“The market expects further closures in time,” he said. “Big new capacity expansions in the Middle East are planned and they will come, but we do not expect any significant impact in Europe for another couple of years.”

 

INEOS PO’s 300,000 tonne/year PP copolymer plant in Geel would continue operation, he added.

 

By: Linda Naylor
+44 20 8652 3214

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