22 May 2007 15:52 [Source: ICIS news]
ANTWERP, Belgium (ICIS news)--The global operating rate for polypropylene (PP) will drop five basis points by 2010 as the surge in new capacity in the Middle East will outweigh demand, said Basell’s senior vice president of polyolefin products on Tuesday.
Global capacity growth of 6.3% was expected to outpace a 5.4% demand increase putting pressure on operating rates, said Yves Bonte, speaking at the 4th World Olefins Conference in ?xml:namespace>
Global operating rates were expected to fall to 87% in 2010 from 93% this year, almost as low as the trough in 2001.
The Basell spokesman predicted that the
The region is set to double its share of global PP capacity to 14%, with 3.5m tonnes/year of capacity coming on stream in
Over 4m tonnes/year of new PE capacity is expected to come on stream by 2011 in both
“Propylene (C3) and ethylene (C2) are far more expensive to transport than PP and PE; integration is the model for the future,” said Bonte, adding that most of the value was being added in the feedstock-olefins step rather than the olefins-polyolefins process.
Bonte said the feedstock cost advantage in the
“Even in a heated shipping market, it would still be beneficial to ship polyolefins from the
Capacity has been well above demand in recent years and in North America and
Although growth in Chinese demand would remain strong, it was not thought to be enough to absorb the huge capacity increases outside
“We do not see
Basell is the world's largest producer of PP, a leading supplier of PE and catalysts, and a global leader in the development and licensing of PP and PE processes.
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