POLYPROPYLENE. (Dept. of Polymer Science, University of Southern Mississippi, Chemical Marketing Reporter)

Transcription

1 POLYPROPYLENE PP's intrinsic properties of high stiffness, good tensile strength and inertness toward acids, alkalis and solvents, plus its cost advantage over other thermoplastic polymers, has secured its position in a wide range of consumer and industrial products, manufactured by several high volume forming methods. PP's very low density, combined with good mechanical properties (especially when filled or compounded) and good injection-molding characteristics make it very suitable for the large-volume cost- and weight-conscious automotive market. In the fiber area, PP is used in carpet backing and has a growth market in carpet face yam. PP films provide excellent optical clarity and low moisture vapor transmission. Key uses are snack food packaging, pressure-sensitive tape backing and labels. Smaller markets for PP films include such diverse product areas, such as shrink-film overwrap, capacitor and other electronic industry films, photo and graphic arts applications, soft-goods overwrap and disposable diaper tabs and closures. (Dept. of Polymer Science, University of Southern Mississippi, Chemical Marketing Reporter) POLYPROPYLENE USES Injection Molding 31% Fiber and filament 30% Film & Sheet 11% Wire & Cable Blow Molding 2% Resellers, Distributors & Compounders 2 (Source:Chemical Marketing Reporter) MARKET TRENDS AND CONDITIONS Polypropylene demand is currently steady, fueled in part by substitution for HDPE (high density polyethylene) and ABS (acrylonitrile-butadiene-styrene) resins on a costperformance basis. Growth is particularly strong the automotive sector, which is a huge and growing market for plastics. Here the drivers are improved performance and reduced weight by substituting for metal. In some applications, polypropylene has been replacing polyurethane and other plastics because of its ability to be recycled Historically, polypropylene has seen demand growth of 6-6.5% (1997 and 2002). In the near-term, growth is expected to average at least 5% per year through This could lead to the need for new capacity over the medium to long-term as the overall rate of capacity additions has averaged less than worldwide over the past several years. Globally, operating rates are expected to reach 9 in 2005 (CMAI). In North America, capacity is expected to increase only slightly at around 1% per year as producers work to absorb capacity that was added in the late 90 s early 2000 s. The industry has been undergoing significant restructuring worldwide with U.S. mergers including Sunoco s takeover of Equistar s Bayport, TX plant. Internationally, Mitsubishi Chemical has merged its polypropylene business with Chisso to create Japan Polypropylene (JPP) Petrochemical Profile Polypropylene 1

2 SUPPLY AND DEMAND Since the late 1990s, capacity utilization has hovered at or near 90% with fluctuations primarily a result of capacity being taken offline. If industry forecasts hold true, new capacity will be called for in the mid-term, 2007 to In the very short-term, capacity should be significant to meet demand, especially if producers work to bring shuttered capacity back online. In the medium to long-term, there will be the need for new capacity to be added. Producers will continue to add new units on an opportunistic basis and work to improve productivity. This will lead to project activity but it is unlikely that we will see wholesale market expansion any time in the near future. POLYPROPYLENE SUPPLY AND DEMAND (MM lbs) * 2005* Capacity Production Utilization 9 101% 97% 90% 86% 87% 91% 9 Demand * Estimated (Source: Chemical Product Synopsis, In-house Estimates) PRODUCERS The largest U.S. polypropylene producer is Equistar with plants in Texas, Louisiana and the U.S. Midwest. (A listing of individual producers and plant locations is included as an attachment to this profile.) Basell, one of the world s largest producers, is currently working to restart capacity in Texas, which will add 420 MM/lb to the market by Because Basell currently does not have capacity on line in the U.S., it does not show up as a producer. Basell is also the exclusive marketer for the polypropylene produced at ConocoPhillip s Bay-way (N.J.) plant. 8 of polypropylene capacity exists in Texas and the Gulf Coast with the remainder located primarily in the Midwest. Petrochemical Profile Polypropylene 2

3 U.S. POLYPROPYLENE PRODUCERS Enterprise Valero Other 14% Equistar 14% Sunoco BASF/FINA ExxonMobil 12% Huntsman Marathon Ashland 4% Baton Rouge PP 4% Dow 6% Shell 7% Koch BP Chevron Phillips PROJECT ACTIVITY Since the late 1990s, there has been very little domestic project activity in the polypropylene market. In fact, capacity has been taken off the market rather than added. BP closed down 32% of it s North American capacity in 2002 and Just recently, however, discussions have begun to take place about restarting some previously shuttered capacity. Basell, for example has discussed plans for reopening significant capacity in Bayport. While there may be some opportunity for limited domestic polypropylene work, most work will be overseas. COMPETITOR ACTIVITY There has been little domestic polypropylene activity over the past few years. Most recently, Fluor Daniel, Aker Kvaerner, and Jacobs have been strong. Fluor Daniel provided engineering construction with JV partner, Technip for polypropylene expansion at Amoco s Chocolate Bayou Plant in In 2002, Aker Kvaerner completed construction of a grassroots facility at the Tosco Bayway Refinery (now Conoco Phillips) in Linden, New Jersey. Aker Kvaerner was responsible for lump sum turnkey EPC. Internationally, Jacobs is strong with a particularly tight alliance with Fina. Jacobs has completed at least three polypropylene projects for Fina at its Feluy, Belgium site. TECHNOLOGY OWNERS Basell Polyolefins (Spheripol, Spherizone) Borealis A/S BP Chisso Corp. Dow Chemical Co. Univation Technologies (UNIPOL PP) Novolen Technology Holdings C.V. (ABB/Equistar) (Source: HPI Petrochemical Processes Handbook) Petrochemical Profile Polypropylene 3

4 PRODUCER POLYPROPYLENE ATTACHMENT 1 U.S. POLYPROPYLENE PRODUCERS PLANT CAPACITY* COMPANY TOTAL* ALON USA, Big Spring, TX 80 AtoFina Petrochemicals, Port Arthur, TX 260 BASF/FINA, Port Arthur, TX 1,200 Baton Rouge Propylene, Port Allen, LA 1,500 BP Chemicals 3,000 Chocolate Bayou, TX 1,800 Lima, Ohio 340 Texas City, TX 480 Whiting, IN 380 Chevron Phillips Chemical 3,200 Cedar, Bayou, TX 900 Port Arthur, TX 1,100 Sweeny, TX 1,200 ChevronTexaco 310 El Segundo, CA 110 Richmond, CA 200 CITGO 680 Corpus Christi, TX 300 Lake Charles, LA 380 Conoco Phillips 650 Linden, NJ 400 Wood River, IL 250 Dow Chemical 2,500 Freeport, TX 1,000 Plaquemine, LA 800 Taft, LA 700 DuPont, Orange, TX 110 Enterprise Products, Mont Belvieu, TX 1,100 Equistar 5,680 Channelview, TX 3,200 Chocolate Bayou, TX 730 Clinton, IA 120 Corpus Christi, TX 630 La Porte, TX 600 Lake Charles, LA 200 Morris, IL 200 ExxonMobil 4,560 Baton Rouge, LA 1,700 Baytown, TX 2,200 Beaumont, TX 400 Houston, TX 260 Petrochemical Profile Polypropylene 4

5 PRODUCER PLANT COMPANY CAPACITY* TOTAL* Flint Hills Resources, Corpus Christi, TX 450 Formosa, Point Comfort, TX 600 Frontier Oil, El Dorado, Kan. 60 Huntsman, 1280 Odessa, TX 230 Port Arthur, TX 650 Port Neches, TX 400 Javelina Company, Corpus Christi, TX 100 Koch Hydrocarbon Southwest, Mont Belvieu, TX 3,000 Los Angeles Refining, Wilmington, CA 140 Marathon Ashland 1,420 Catlettsburg, KY 350 Detroit, MI 130 Garyville, LA 800 Texas City, TX 140 Motiva Enterprises 770 Delaware City, DE 120 Port Arthur, TX 650 Murphy Oil, Meraux, LA 200 Shell 2,700 Deer Park, TX 1,100 Norco, LA 1,600 Sunoco 1,200 Brandenburg, KY 30 Marcus Hook, PA 450 Philadelphia, PA 400 Toledo, OH 260 Westville, NJ 60 Tesoro Petroleum, Anacortes, WA 80 Texas Eastman, Longview, TX 700 Valero Energy 1,040 Corpus Christi, TX 100 Houston, TX 300 Krotz Springs, LA 400 Texas City, TX 240 Westlake CA&O, Calvert City, KY 350 Williams Olefins, Geismar, LA 100 Williams Refining, Memphis, Tenn. 300 Total 39,320 *Millions of pounds per year. Petrochemical Profile Polypropylene 5