<article><p class="lead">Vietnamese refinery operator Nghi Son Refinery and Petrochemical (NSRP) has shut its 370,000 t/yr polypropylene (PP) plant following a fire at its 200,000 b/d refinery.</p><p>The PP plant, which has been shut since 21 February, is expected to remain off line for around 10 days until early March, according to market sources. The plant has been operating at lower rates of around 60pc since early February, with buyers receiving lesser PP supplies this month. NSRP is expected to increase operating rates at the plant to 80pc after it restarts in March, market sources told <i>Argus</i>, but further details are unclear.</p><p>The 200,000 b/d Nghi Son refinery will be off line for at least a week following a <a href="https://direct.argusmedia.com/newsandanalysis/article/2304236">fire resulting from an electrical trip</a> on the night of 21 February, a Vietnam-based source told <i>Argus</i>, although this has not been confirmed by NSRP. </p><p>The refinery was grappling with financial issues in January, leading to fears that it would shut down from mid-February to March. But it later said that it had <a href="https://direct.argusmedia.com/newsandanalysis/article/2296983">agreed on a short-term proposal with its backers</a> to maintain stable and sustainable operations. "A possibly lengthy shutdown will not be required," it said.</p><p>NSRP's partners — PetroVietnam, Kuwait's state-owned KPC and Japanese companies Idemitsu and Mitsui — will make early payments under a fuel products offtake agreement contract to help NSRP improve its cashflow, PetroVietnam said in late January.</p><p>PetroVietnam then expected the refinery to gradually restore production from mid-February. The refinery was also expected to ramp up operating rates to 100pc from mid-March. But any changes to these plans in light of the latest fire-led shutdown could not be confirmed with NSRP.</p><p>The temporary closure of NSRP's PP plant is expected to further tighten duty-free PP supply in southeast Asia, but this could be offset by Indonesian PP producer Polytama delaying a one-month maintenance shutdown of its 300,000 t/yr PP plant to early March from mid-February, according to market sources. PP offers from China at preferential import tariffs to southeast Asia are also increasing.</p><p><i>Argus</i> assessed PP raffia prices at $1,310-1,330/t cfr Vietnam on 18 February, up by $20/t from the previous session. China's PP raffia prices stood at $1,220-1,240/t fob China last week, down by $10/t from the previous session.</p><p class="bylines">By Yee Ying Ang</p></article>
