19 July 2013 08:12 [Source: ICIS news]
SINGAPORE (ICIS)--South Korea’s Hanwha Chemical may export more low density polyethylene (LDPE) film and coating grades to Asia in the coming months if regional prices rise further amid tight supply, a company source said on Friday.
“We typically produce more wire and cable and ethylene vinyl acetate resins at this time of the year because domestic demand is good in this summer period,” the source said.
But the producer may consider increasing its production of LDPE film and coating grades if the prices of these resins increase sharply in Asia in the coming weeks as a result of tight supply, he said.
Thai producer PTT Global Chemical (PTTGC) declared force majeure on Wednesday after a plant outage, and that has driven prices in China and Southeast Asia higher.
Hanwha Chemical operates an 86,000 tonne/year LDPE plant in Ulsan and two LDPE plants in Yeosu with a combined capacity of 327,000 tonnes/year, he said.
Around 50% of the producer’s export volume consists of coating grades while film grades account for less than 20%, he said.
The producer typically exports half of its LDPE output, he said.
Hanwha Chemical’s main LDPE coating export markets are China, India and Indonesia, while its LDPE film resins are mainly exported to Latin America, Africa and Europe, he added.
The bulk of the LDPE consumed in China and Southeast Asia consists of film and coating grades, industry sources said.
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