Thailand’s TPI Polene to cut EVA output in Feb-Apr on weak demand

SINGAPORE (ICIS)–Thailand’s TPI Polene plans cut ethylene vinyl acetate  (EVA) output by switching to producing low density polyethylene (LDPE) at one of its two tubular reactors in Map Ta Phut from the second week of February to mid-April, a company official said on Wednesday.

The company operates two tubular reactors at the site in Rayong province that have a combined EVA/LDPE capacity of 158,000 tonnes/year, with one of the reactors solely producing EVA.

The reactors are currently producing EVA at full swing, which was exerting inventory pressure on the producer as demand is weak amid increased supply with recent new entrants into the market.

“We have stocks that cannot move,” the TPI Polene official said.

Commodity grade EVA cargoes from the new Middle East-based EVA plant have hit the markets this month.

Sipchem’s 200,000 tonne/year EVA/LDPE swing plant at Jubail Industrial City, Saudi Arabia, was said to have commenced EVA production on 10 December 2014 and it has achieved full capacity, according to sources close to the company.

Prices of commodity grade EVA with 18% vinyl acetate (VA) content during the week ended 27 January fell to $1,280-1,380/tonne CFR China Main Port (CMP), reflecting a $70/tonne reduction following a deal at the higher end of the range for non-dutiable southeast Asian origin material, according to ICIS data. The lower end of the price range reflects discussions for dutiable cargoes.

Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections