Hyosung unexpectedly shuts Vietnamese PP unit

South Korean polymers producer Hyosung yesterday unexpectedly shut its 300,000 t/yr polypropylene (PP) unit in Ba Ria-Vung Tau, Vietnam. The shutdown, possibly associated with an equipment failure that prompted maintenance, is estimated to last for around 3-4 weeks.

Hyosung is expected to delay the delivery of PP orders to its customers with delivery windows of July and August because of the production losses.

Hyosung's first Vietnamese PP unit started operations in March 2020, while its second PP unit is expected to start up in this year's late third or early fourth quarter.

The sudden production halt at Hyosung's PP unit is expected to tighten regional PP supplies during July-August, along with maintenance scheduled during the same period.

Singapore's TPC is expected to shut two of its PP units with a combined capacity of 460,000 t/yr for a 35-day maintenance from mid-July, which will mainly affect supplies of PP random and block co-polymers.

Malaysia's Lotte Titan may cut operating rates at its 640,000 t/yr PP plant in August because of reduced propylene supplies from its upstream cracker. Its upstream cracker, capable of producing up to 145,000 t/yr of propylene, will have a month-long maintenance from early August.

PP prices in Vietnam rose in the past two weeks as international exporters began raising PP offers to the region because of firmer feedstock prices, even as demand continued to be affected by Covid-19 restrictions. Argus assessed PP raffia prices at $1,180-1,200/t cfr Vietnam on 9 July, up by $20/t from a week earlier.

By Yee Ying Ang