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Formosa Plastics USA to shut HDPE blowmolding unit

October 29/2020

MOSCOW (MRC) -- Petrochemicals producer Formosa Plastics USA, part of Formosa Petrochemical, will shut down its high density polyethylene (HDPE) blowmolding unit in Point Comfort, Texas for maintenance on October 30 , several sources told S&P Global Oct. 28.

The turnaround at this plant is expected to last for 30 days.

The company was not available for immediate comment on the shutdown.

"I don't think this is going to shift pricing in any way," one trader source said. "HDPE blowmolding has been tight (for exports) for several months and pricing will continue to be very firm," the source added.

The HDPE blowmolding unit has a capacity of 200,000 mt/year and was previously scheduled for a maintenance in October 2020, sources told Platts on June 11.

As MRC reported earlier, Formosa Plastics broke ground on its USD9.4 billion petrochemical complex in St. James Parish, Louisiana in late March, 2020, after receiving final permits but has now agreed to limit its construction activities until February 2021. The company plans to build the complex in two phases over 10 years. The first phase would include a 1.2-million metric tons/year ethylene plant using ethane as feedstock, with downstream facilities that will produce high-density polyethylene (HDPE), linear low-density polyethylene (LLDPE), and ethylene glycol (EG). A propane dehydrogenation plant and a polypropylene (PP) facility are also planned.

According to MRC's ScanPlast report, September estimated HDPE consumption in Russia fell to 55,790 tonnes from 119,750 tonnes a month earlier. ZapSibNeftekhim increased its export polyethylene (PE) sales. Kazanorgsintez's production capacities were also shut for a turnaround. Overall HDPE shipments to the Russian market totalled 911,650 tonnes in the first nine months of 2020, up by 6% year on year. Production grew significantly, whereas imports slumped by 27%.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company"s plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
Author:Margaret Volkova
Tags:PP, PS, PE, ABS, LLDPE, propylene, HDPE, ethylene, blow moulding, construction, Formosa, Russia, USA.
Category:General News
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