10 August 2010 08:12 [Source: ICIS news]
By Chow Bee Lin
SINGAPORE (ICIS)--Asia’s polypropylene (PP) supply may remain tight through September on scheduled plant shutdowns in China, and production cuts in Taiwan due to unexpected outages at Formosa Petrochemical Corp’s (FPCC) upstream facilities, industry sources said on Tuesday.
“A general expectation that PP supply will be tight through first half October spurred intense buying interest and pushed prices sharply higher last week,” said a key trader in east ?xml:namespace>
The benchmark injection and yarn grades were sold or discussed at $1,180-1,240/tonne (€897-942/tonne) CFR (cost and freight)
The tight PP supply in China was also due to its consistently lower PP imports from March to June this year, local distributors said. (see graph below for details)
In China, Liaoning Huajin Tongda Chemicals’ PP plant has been shut from 20 July for 20 days, Yangzi Petrochemical’s 400,000 tonne/year PP plant in
The shut downs at these three plants was expected to tighten PP supply in
Formosa Plastics Corp (FPC) was expected to shut down its 450,000 tonne/year PP plant at
The tight supply in
The outage of major Saudi producer, Petro Rabigh’s 700,000 tonne/year PP plant in
Some buyers in southeast Asia hoped the tight supply would be eased by new supply from HMC Polymer in
PTT Chemical was unable to supply propane to HMC Polymers’ new PDH plant any earlier as its No 6 gas separation unit was among several major petrochemical projects in Rayong province that were suspended under a court ruling on environmental grounds, they said.
Polytama Propindo, which was running its 270,000 tonne/year PP plant at around 85% capacity due to an on-site shortage of propylene, would ramp up production in September if it received additional propylene from Pertamina, a company source said.
Pertamina was expected to be able to offer additional propylene when its new metathesis begins commercial production in September.
HMC Polymers and PTT Chemical were not immediately available for comment.
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Average PP production rate%
($1 = €0.76)
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