14 July 2011 11:46 [Source: ICIS news]
SINGAPORE (ICIS)-- Polyester chain facility integration can offer producers significant advantages in their operations including protection from the volatility of feedstock prices, said Rajen Udeshi, Reliance Industries polyester chain president, during the 5th Asian Aromatics & Derivatives Conference on Thursday.
Feedstock price fluctuations in the polyester chain in recent years have affected the spreads between feedstock and products, and consequently the profitability of independent producers, Udeshi said.
“Integration of polyester chain facilities significantly stabilises the combined spread between feedstock and polyester,” he said.
The combined spread from naphtha to polyester ranged from about $600-900/tonne (€426-639/tonne) in 2009 to 2010, according to Udeshi.
Besides stabilising the price spreads of feedstock and polyester, integration offers benefits to producers such as improved logistics, lower fixed costs, the capability to optimise production planning and reduced conversion costs.
However, even with integration adoption, various other factors can still affect the stability of the combined spread in the polyester chains, an industry expert told ICIS. These include crude oil prices, polyester demand and feedstock demand from aromatics blending.
Headquartered in ?xml:namespace>
The 5th Asian Aromatics & Derivatives Conference runs from 13-14 July.
($1 = €0.71)
Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections