PTT to bring down operating rates at ethylene and propylene cracker

(plastemart) -- Thailand's PTT Polyethylene expects to decrease run rates by 5% from May at its steam cracker in Map Ta Phut. This will bring down operating rates to an average of 60% for June at the cracker with nameplate capacity of 1 mln tpa ethylene and 25,000 tpa propylene. The cracker has been running well below nameplate capacity since commercial operations started in April due to lack of feedstock ethane from feedstock supplier PTT Plc. 50% of the cracker's ethane is sourced from PTT's recently revamped No. 2 and No. 3 gas separation plants, where operations have yet to stabilize. PTT's No 6 gas separation plant, that is to supply 50% of the feedstock, has not been granted clearance to start from local authorities and the environment office.

MRC

(prw) -- LyondellBasell believes it is in a good position following its emergence from Chapter 11 in April to benefit from growth in demand for polypropylene and polyethylene.

Anton de Vries, senior vice president of olefins and polyolefins, said at a pre-K2010 press briefing in Dusseldorf that there had been ⌠a lot of stress during Chapter 11 as the company shut plants and reduced headcount to its current level of 14,500. Groups fixed costs have been slashed by $1bn to $3.6bn now.

Now the company can look to the future, he said. It expects an additional 30 million tonnes of polyolefins demand worldwide by 2014. Asia-Pacific will account for most of that increase, especially China and the Indian sub-continent.

In its restructuring, LyondellBasell has closed four plants in North America and three in Europe, with another in Terni, Italy set for closure this year. But it has also brought on new capacity at three plants in the Middle East and is expanding its plant in Thailand.

Key to LyondellBasell's confidence is the low cost of its joint venture plants in the Gulf, which benefit from low feedstock costs. De Vries claimed supply from Middle Eastern plants to any part of the world can beat the price of polyolefins produced locally.

MRC

MRC Reference

LyondellBasell. The share in the Russian market in 2008:
PE - 1.4% (including HDPE - 2.5%, LDPE - 0.3%);
PP - 4.1% (including block-copolymers - 9.5%).

Annual sales growth in Russia, during the recent 5 years:
PE - 27%;
PP - 88%.

The leader in the following polymers processing technologies:

pipe extrusion;

film extrusion;

injection molding.

(plastemart) -- Reliance Industries is reported to be mulling an investment of US$3 bln to expand its petrochemicals unit in Jamnagar. A 2 mln tpa plant is being planned in Jamnagar with feedstock that will be sourced from its refining operations.

MRC

(plastemart) -- A polypropylene plant at Dung Quat Economic Zone has commenced trial runs this month. Under construction for three years, the refinery will have a capacity to produce 150,000 tpa. It has been built at a cost of US$232 mln by the Vietnam Oil and Gas Group. Feedstock propylene will be sourced from the Dung Quat Oil Refinery Plant.

MRC

MOSCOW (MRC) - Temporary absence of production of several HDPE grades in conditions of permanent demand has led to deficit in the market. To the end of last week prices for film-grade 273 HDPE went up to the level RUB 55.000 - 56.000/mt - according to MRC Price reports.

Lack of film-grade and 273 HDPE appeared due to Russian PE producers' production plans for May - June and growing demand in the market. Also the situation was aggravated by temporary technical problems at Stavrolen. As a result, on Friday some companies suspended sales of film-grade HDPE.

Prices for film-grade material in Moscow have reached the level RUB 55.000 - 55.500/mt, including VAT, FCA. Some market participants expect further price increase.

The situation in 273 HDPE market is more serious. Production of 273-83 PE grades in June at Kazanorgsyntez capacities isn't expected. Temporary technical problems at Stavrolen have led to delay of terms of HDPE supplies into the domestic market. Price offers have reached the level RUB 55.000/mt, including VAT, FCA Kazan, or RUB 56.000/mt, including VAT, FCA Moscow.

MRC

For more information about Russian HDPE market please refer to MRC Price reports.