11 August 2010 05:59 [Source: ICIS news]
By John Richardson
SINGAPORE (ICIS)--China will account for around one-third of global polypropylene (PP) consumption by the middle of this decade, up from the current 25%, as domestic demand continues to grow at more than 10% a year, a consultant said on Wednesday.
Mike Smith, vice-president for propylene and derivatives with petrochemical consultancy, DeWitt & Co, said the growing demand would be fed both by new capacities in ?xml:namespace>
New capacities will outpace demand growth for the next few years with global average operating rates below 90% up until 2014, he added.
Twelve million tonnes per year of capacity is due on-stream in 2009-11 in the Middle East and Asia, comprising 4.2m tonne/year in the Middle East, 5m tonne/year in Northeast Asia, mostly in China, and 2.8m tonne/year in Southeast Asia, he said.
The US and
Exports helped support a rapid recovery in the
Inventory rebuilding is being boosted by improved demand from the consumer electrical goods and automobile sectors.
North America has already seen PP capacity reduced by a net 700,000 tonne/year due to closures in the
Further announcements of capacity closures were possible in both regions, he warned.
The decline in the
There has been a lot of talk about the influence of Petrologistics’ 544,000 tonne/year propylene facility on
But Smith said that the plant will add only 3.5% to total US C3s supply.
European refinery propylene availability should improve as the economy picks up, but Smith warned that this could be offset by weaker gasoline exports to the
Steam cracker operating rates in Europe could also come under downward pressure from ethylene derivative– imports from the
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