Brazilian producer Braskem has actually cited an absence of Middle Eastern polypropylene imports into Europe for higher prices in the initial quarter.
” The high number of upkeep closures at PP plants in the center East throughout Q1 2017, which influenced 15% of the region’s total polymer manufacturing capacity, resulted in lower exports to Europe in the period as well as subsequently greater costs in the region,” Braskem said in its first-quarter results statement.
According to S&P Global Platts data, homo shot polypropylene spot costs for distribution in Northwest Europe balanced Eur1,169/ mt ($ 1,284/ mt) in the quarter, an increase of 14% year on year and up 16% from Q4 2016.
Between East PP materials from Borouge took a hit after a fire at the Takreer refinery in the UAE in January. Takreer products feedstock propylene to Borouge’s 900,000 mt/year PP plant.
Braskem also said that European PP basics were likewise reinforced as demand enhanced on a quarter-on-quarter and also year-on-year basis.
The need boost was driven mostly by the auto, durable goods and also construction product markets, Braskem said.
In chelating agent in food , Braskem claimed PP demand increases was because of “higher prices for polystyrene and engineering plastics, which led consumers to seek various other items [, i.e. polypropylene,] to replace these materials.”
Looking upstream, European PP costs in the first quarter were supported by the greater price of propylene.
” The ordinary cost recommendation for propylene in Europe in Q1 2017 was $870/mt (Eur792/mt), 36% more than in Q1 2016, which is clarified by the arranged and unscheduled shutdowns at both biscuits and propylene production units using gas as feedstock and by the strong demand for propylene derivatives in the area in the period.”
Braskem runs 2 industrial units in Europe, both producing polypropylene. The mixed polypropylene capability of the systems, at Wesseling and Schkopau in Germany, complete 545,000 mt/year.
Supply from Borouge is anticipated to improve in the 3rd quarter, when the firm’s PP plant will certainly receive extra propylene from Takreer’s freshly built 500,000 mt/year PDH plant.
“Propylene supply will originate from the new PDH device in the 3rd quarter,” Mark Garrett, CEO of Borealis– which holds a 50% risk in the project– said previously this month, adding that the company will certainly have the ability to run its Borouge-3 PP unit at three-quarters of capability after the PDH device has been started.