Heavy olefins
Overview
Global butadiene production and demand are dominated by northeast Asia. Although the region continues to add both supply and derivative projects, there have been market inefficiencies that have resulted in deep sea imports into the region. Accurate and timely analysis will help producers, consumers and traders navigate these turbulent times.
The C5 and hydrocarbon resins industry has experienced a fundamental shift in the past few years, going from several acute shortages to a glut of products in the markets. Producers, industrial chemicals companies, chemical distributors, traders and technology providers all need to understand how this will play out, especially in light of new entries into the global market. Argus’ C5 and Hydrocarbon Resins Service is the only global service of its kind.
Our experts will help you determine what trends to track and how to stay competitive in today’s ever-changing global markets.
Latest heavy olefins news
Browse the latest market moving news on the global heavy olefins industry.
Vietnam’s Long Son extends cracker shutdown to June
Vietnam’s Long Son extends cracker shutdown to June
Singapore, 25 March (Argus) — Vietnam's sole cracker operator Long Son Petrochemical (LSP) has extended the shutdown of its cracker and associated downstream units in Ba Ria-Vung Tau to June, to address technical issues. LSP shut its cracker and downstream units on 21 February because of equipment issues. Siam Cement (SCG), the parent company of LSP, subsequently issued a force majeure on products the following day. SCG was initially expecting the cracker to restart in about 2-4 weeks after the shutdown in February. But the firm filed a statement to the Stock Exchange of Thailand (SET) on 22 March, stating that the technical difficulty is still under investigation and the LSP complex is expected to restart in June. LSP's cracker is a mixed feed cracker with a nameplate capacity of 950,000 t/yr for ethylene, 400,000 t/yr for propylene and a 100,000 t/yr butadiene extraction unit. Downstream units are polymer-focused, with a 500,000 t/yr high-density polyethylene (HDPE) plant, a 500,000 t/yr linear low-density polyethylene (LLDPE) unit and a 400,000 t/yr polypropylene (PP) unit. SCG offered spot HDPE, LLDPE and PP supplies from its new LSP complex to the market earlier this year but has ceased offers since late February, after the force majeure announcement. SCG also stated in its statement filed to the SET that its Rayong Olefins (ROC) cracker in Map Ta Phut, Thailand has resumed operations. The producer is expected to ramp up production at its 920,000 t/yr HDPE unit and 720,000 t/yr PP unit in Thailand following the restart of the ROC cracker, and will resume supply of these grades to the market. The ROC cracker was restarted late last week and has achieved on-specification olefins products since then, according to sources close to the company. The cracker was shut for maintenance since mid-November 2023. The ROC cracker has a nameplate capacity of 800,000 t/yr of ethylene and 400,000 t/yr propylene. SCG also owns another cracker at the same site — the Map Ta Phut Olefins cracker with capacity of 1mn t/yr of ethylene and 500,000 t/yr of propylene. Both the crackers are currently operating at near-full run rates. By Yee Ying Ang, Brian Leonal and Toong Shien Lee Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Rising South Korean cracker rates to boost LPG demand
Rising South Korean cracker rates to boost LPG demand
South Korean crackers are running harder as margins recover, writes Toong Shien Lee Singapore, 5 March (Argus) — South Korean cracker operators are aiming to raise run rates this month because of recent gains in ethylene and butadiene prices, raising demand for LPG feedstock with propane and butane still at a discount to naphtha. Hanwha Total will lift utilisation at its 1.55mn t/yr Daesan cracker to 100pc from 92pc in March, while KPIC has already raised its 800,000 t/yr Onsan cracker rates to 90pc from 80pc. LG Chem is also planning to increase run rates at its 1.15mn t/yr Yeosu 1 cracker to 70pc from 64pc, at its 800,000 t/yr Yeosu 2 cracker to 80pc from 73pc, and at its 1.27mn t/yr Daesan unit to 67pc from 64pc. GS Caltex is mulling raising utilisation at its 700,000 t/yr Yeosu cracker this month, as is Lotte Chemical at its 1.2mn t/yr Yeosu and 1mn t/yr Daesan units. Hyundai Chemical may ramp up rates at its 900,000 t/yr Daesan cracker to 60pc from 55pc in March, market participants say. The increase in olefin supplies from South Korea is expected to be partially offset by turnarounds at crackers in Japan. The plan to increase rates comes as cracker margins recover in line with rising ethylene and butadiene prices, although margins remain in negative territory. Naphtha cracking margins rose to -$104/t by 28 February from -$304/t at the start of 2024 — the highest since May 2023, Argus data show. Propane cracking margins have recovered more rapidly as propane prices have fallen relative to naphtha, climbing to -$2/t by 28 February from -$240/t on 3 January. Flexible Asian crackers have shifted to propane from naphtha since January to maximise production margins. Expectations of tighter ethylene and butadiene supplies in the region have pushed up prices to multi-month highs. The ethylene fob northeast Asia price rose to $935/t on 21 February from $820/t on 3 January, the highest since March 2023. Butadiene fob northeast Asia values increased to $1,270/t on 23 February from $898/t on 5 January, the highest since July 2022. NE Asian fob ethylene, butadiene Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Korea's Hanwha Total to load down butadiene production
Korea's Hanwha Total to load down butadiene production
Singapore, 4 March (Argus) — South Korea's Hanwha Total will be loading down butadiene production from 5-13 March after detecting a technical issue at its 150,000 t/yr compressor unit at Daesan. The company does not expect to require a complete shutdown to resolve the technical issue but anticipates production losses of around 3,200t. March contract deliveries to off-takers will be reduced by up to 1,400t, and the company has now shelved a previous plan to sell an 1,800t spot cargo for April. This means that South Korean butadiene consumers such as Kumho Petrochemical and LG Chemicals could have to seek imports to plug the shortfall in production. Hanwha Total's announcement also comes on the heels of butadiene prices hitting 20-month highs of $1,300-1,340/t cfr northeast Asia in the week of 23 February because of tight supply. By Bohan Loh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Pyrum starts work on 2nd tyre pyrolysis plant
Pyrum starts work on 2nd tyre pyrolysis plant
London, 29 February (Argus) — Germany-based chemical recycler Pyrum said it has begun to prepare the construction site for its second tyre pyrolysis unit in Perl-Besch, after receiving approval from the local municipal council. The company is clearing the site in order to begin construction on the plant, which has a planned capacity of 20,000 t/yr, in the second half of this year. Construction is scheduled to be completed by the end of 2025. Pyrum uses pyrolysis to recycle end-of-life tyres, creating tyre pyrolysis oil (TPO) and recycled carbon black among other products. The company is expanding its first plant in Dillingen-Saar, Germany, to 20,000 t/yr from around 6,600 t/yr, through the addition of two new reactors. It said it made a first 24,000l TPO delivery from the first new reactor to long-term buyer BASF, and said testing had begun on the second new reactor with a view to ramping up to 80pc operating rates by the end of March. "We are continuing to work full speed on our roll out plan… the further approval process with the authorities is already in full swing," said chief executive Pascal Klein. By Will Collins Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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Chemical Conversations: Olefins Outlook
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