Fire hits HMC Polymers' PP complex in Thailand
A fire hit Thai petrochemical producer HMC Polymers' polypropylene (PP) production complex at the Mab Ta Phut industrial estate in Rayong province yesterday.
The fire hit its silo farm, where PP pellets are stored and bagged. The fire was extinguished in around an hour and there were no injuries.
The producer shut one of its three PP units, with a nameplate capacity of 360,000 t/yr, following the incident. The shutdown is expected to last two weeks to a month, according to market sources. The producer also operates a propane dehydrogenation (PDH) plant with 300,000 t/yr of propylene capacity and two other PP units with capacities of 200,000 t/yr and 250,000 t/yr. Production at all of these units was unaffected.
HMC Polymers also sources feedstock propylene from Thai state-controlled petrochemical producer PTT Global Chemical, its major shareholder, and Thailand's Siam Cement (SCG) through local pipeline transfers. The shutdown of HMC Polymers' downstream PP unit is expected lengthen propylene supplies in Thailand, which may help to ease the propylene shortage in Asia-Pacific.
The shutdown of HMC Polymers' 360,000 t/yr PP unit is expected to further tighten spot supplies in Asia-Pacific. PP supplies have tightened significantly in Asia-Pacific since September because of planned and unplanned plant shutdowns across southeast Asia.
A fire hit Rayong-based refiner IRPC's atmospheric residue desulphurisation unit in early September. A fire also hit a waste containment basin at Philippine producer JG Summit's petrochemical complex in late September, prompting the shutdown of its only naphtha cracker and downstream polymer units for around 10 days.
South Korea's Hyosung, the newest PP producer in Vietnam, also shut its 300,000 t/yr PP unit in early October for around three weeks because of technical issues.
Malaysia's Lotte Titan has operated its PP plant at reduced rates since September because of feedstock shortages but the producer is set to restart its fluidised naphtha cracker (FNC), which was taken off line in early September, in the coming week. The FNC produces 93,000t/yr of ethylene and 130,000 t/yr of propylene.
Other PP producers, including Vietnam's Binh Son Refining and Petrochemical, ExxonMobil Singapore and SCG, also took off line their PP plants with a combined capacity of 1.37mn t/yr for around 30-45 days from August-November for scheduled maintenance.
Prices of PP raffia in southeast Asia have risen by 23pc or $210/t over the past three months as supplies have continued to lag demand since September. Argus assessed dutiable and duty-free PP raffia prices at $1,100-1,120/t and $1,190-1,210/t cfr, respectively, in southeast Asia on 26 November.
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