APLA ’07: Dow Argentina cuts ethylene exports

18 November 2007 17:00  [Source: ICIS news]

By Anna Jagger

BUENOS AIRES (ICIS news)--Strengthening demand for ethylene derivatives in Argentina and increased raw material supplies have enabled Dow Chemical to cut its ethylene exports from the country, an official at the US group said here on Sunday.

Dow was able to reduce its ethylene exports to 3,000 tonnes in 2007 compared with annual exports of 20,000-60,000 tonnes between 2001-2006, he told ICIS news during the Latin American Petrochemical Association (APLA) annual meeting.

Output from Dow’s ethylene and polyethylene (PE) complex in Bahia Blanca, Argentina was impacted by gas shortages caused by the unusually cold winter this year. According to Polyolefins Consulting, Dow’s production at the site fell by 50% between June and August.

Production of ethylene and PE returned to full rates in September, said the Dow official.

Strong economic growth has buoyed Argentinean demand for PE and polyvinyl chloride (PVC). “Market growth has been quite impressive,” he remarked.

Dow expects Argentinean PE consumption to remain strong in 2008. “The raw material factor will depend on the temperature,” added the official.

Dow would like to expand production at the Bahia Blanca site but remains constrained by limited feedstock availability. The company has been discussing a capacity increase of 20-25%, if feedstock costs allow.

Dow has the capacity to produce 750,000 tonnes/year of ethylene and 630,000 tonnes/year of PE at the site.

By: Anna Jagger
+44 20 8652 3214

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