Polymerupdate global resin pricing and plant news 7135

In Asian plant news, Polymerupdate is reporting that Hanwha Chemicals will restart its oxo-alcohols and polyvinyl chloride (PVC) plants, with production halted at the 110,000 tonnes/yr oxo-alcohols plant and 250,000 tonnes/yr PVC plant due to a power failure. The plants are located at the Yeosu Petrochemical Complex on the southern tip of the Korean Peninsula. Also affected are the polyethylene (PE) plant, which features a 370,000 tonnes/yr low-density polyethylene (LDPE) unit and a 350,000 tonnes/yr linear low-density polyethylene (LLDPE) unit.

Indonesia’s state-owned oil and gas company Pertamina is seeking partners for the construction of a 200,000 tonnes/yr polypropylene (PP) processing unit at its Balongan refinery in West Java. Polymerupdate reports that an investment of $200 million will be needed to upgrade the residue-cracking unit at the Balongan refinery to switch from ethylene output to propylene. As propylene is more profitable, the company aims to increase its production from 1000 tonnes/day to 1700 tonnes/day, with completion by October 2010 the goal. An engineering, procurement, construction, and commissioning contract was signed by Pertamina in January with Japan’s Toyo Engineering and Rekayasa Industri of Indonesia for a $283 million expansion.

In Asian pricing news, Polymerupdate is reporting that PVC suspension-grade prices for June will be raised by $20/tonne CFR on the basis of higher crude oil and monomer prices. Typifying the difficulty in the market, a Taiwanese PVC producer told Polymerupdate that, “Many of our clients are finding it hard to digest PVC prices at above the $1200/mt CFR levels.”

Rising crude prices and unplanned outages, including one at Polymirae’s South Korean facility, pushed polypropylene (PP) prices higher, with injection and raffia up to $1610/tonne CFR, and some offers heard at above $1630/tonne to $1640/tonne for June. PP film prices are up to $1660/tonne CFR China with Taiwan deals done into China seen at $1650/tonne CFR. PP offers have firmed in Southeast Asia as well with Thailand pegging copolymer PP offers at above $1650/tonne CFR Southeast Asia. Polymirae’s PP plant at Yeochun will restart when the three steam crackers of Yeochun NCC again come onstream.

LLDPE quotes are stable this week, with CFR Far East Asia prices at $1645/tonne while CFR Southeast Asia prices have been assessed at $1670/tonne. High-density polyethylene (HDPE) prices in parts of Asia firmed with CFR Far East Asia prices for injection HDPE grades at $1640/tonne and CFR Southeast Asian prices at $1620/tonne. HDPE film prices on a CFR Far East Asia basis were assessed at $1620/tonne levels, while CFR Southeast Asian prices were assessed at $1625/tonne. HDPE injection offers to China will be raised to $1650/tonne next week, with HDPE film prices to be taken up to the $1630 to $1640/tonne CFR China.

In acrylonitrile butadiene styrene (ABS), Polymerupdate reports that prices are mostly stable across Asia although they’ve been pressured higher by about $20/tonne in conjunction with firming feedstock numbers. ABS injection prices were assessed at $1860/tonne CFR in Asia with offers heard at above $1870/tonne CFR.

In European pricing news, Polymerupdate reports that general-purpose and natural-grade ABS contract prices were assessed down at euro 1720/tonne FD North West Europe. PS prices in Europe were also lower, with general-purpose PS (GPPS) contract prices at the euro 1385/tonne FD North West Europe, down euro 5/tonne. High-impact PS (HIPS) contract prices were assessed at euro 1440/tonne FD North West Europe, also down euro 5/tonne.

Polymerupdate reports that contract prices for suspension-grade PVC were down to euro 1030/tonne FD North West Europe, in spite of PVC producer efforts to raise May prices by euro 30/tonne. In polyethylene terephthalate (PET), FD North West Europe contract prices for bottle-grade material were seen at euro 1295/tonne, while FD North West Europe bottle-grade PET resin spot prices were assessed at euro 1110/tonne. Film-grade PET contract prices were assessed at euro 1265/tonne.

LLDPE spot prices in Europe declined to euro 1180/tonne FD North West Europe, but several producers have announced increases for all grades, with Dow Europe planning to lift prices on LDPE, LLDPE and HDPE resins by euro 50/tonne. Sabic has also announced a hike for May of euro 30/tonne.

PP prices also fell, with homopolymer injection-grade PP assessed at euro 1210/tonne FD North West Europe, while PP copolymer contract prices were assessed at euro 1260/tonne FD North West Europe. In the spot market, PP homopolymer prices were assessed at euro 1055/tonne FD North West Europe, while PP copolymer prices were at euro 1095/tonne FD North West Europe.

In European plant news, Ineos Polyolefins will halt production at its 175,000 tonnes/yr PP unit at Bamble, Norway. Shutdown is expected by September 2008 due to tight margins and limited technical capabilities, which have resulted in losses that are no longer sustainable, according to the company.