Home Author: John Richardson

Asian Chemical Connections

South Korea may have to shut 48% of its PP capacity in 2024-2030 to return to healthy operating rates

If South Korea kept all its PP plants open, 2024-2030 operating rates would average just 58% compared with 94% in 1990-2023. Profitability would obviously be very poor.

Or South Korea may permanently close an annual average of 430,00 tonnes/year of capacity – a total of 3m tonnes/year or 48% of capacity as of 2023. 2024-2030 operating rates would average a healthy 85%.

Why HDPE and other petchem operating rates could remain at record lows until 2030

UNTIL I FULLY understood the potential supply and industry economics implications of converting a lot more oil into petrochemicals, what’s happening to demand and the extent of China’s future self-sufficiency, I used to present charts such as the one above to clients with the proviso: “The good news is that this chart will almost certainly be wrong”. NOW I AM NOT SO SURE

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