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(ICIS) -- Production of polymers in
Venezuela has not achieved consistency after a number of turnarounds this year,
leaving shortages of some grades, buyers said on Friday. The country's only
polypropylene (PP) plant increased capacity at the end of 2010 from 110,000
tonnes/year to 144,000 tonnes/year-a 34,000 tonne/year expansion.
However, the plant has not been able to deliver the targeted 12,000
tonnes/month consistently in 2011, and production has remained around 8,000
tonnes/month, which is less than what the plant produced before the expansion,
buyers said.
Market players expected PP production to improve in December, although
not by much. PP resins are currently in short supply, buyers
said.
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The shortages generated by the lower production have been covered with
imports, increasing domestic prices. Things have not been better for
polyethylene (PE) production. Linear low density PE (LLDPE) is the grade that
has typically been in short supply, produced at Venezuela’s 190,000 tonnes/year
swing plant (HDPE/LLDPE).
Shortages of low density PE (LDPE) have been added to the list more
recently, because of technical problems.
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Buyers try to cope with these shortages ordering more material than they
really need. They know that the state-owned producer will deliver less than
requested.
Conversely, the local producer knows that buyers ask for more product
than they need, which minimises the claims about shortages.
mrcplast.com
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