China continues to expand PET bottle chip capacity

Spanish Market: Petrochemicals
23/07/19

China continues to expand its polyethylene terephthalate (PET) bottle chip production capacity with producers Yisheng Petrochemical, China Resources and Wankai all having expansion projects close to completion.

Yisheng Petrochemical's 600,000 t/yr production lines at Dalian in north China's Liaoning province will finish construction this month and is targeting to start up late in this year's third quarter. Another 500,000 t/yr production line, next to an existing 1.5mn t/yr PET bottle chip plant in south China's Hainan province, will come on stream in early 2020. This will make Yisheng China's largest PET bottle chip producer by early 2020 with a total capacity of 2.6mn t/yr.

Zhejiang Wankai is expanding its presence to southwest China, by building a 600,000 t/yr PET bottle chip plant in Chongqing. It is scheduled to finish construction and come on stream in next year's first quarter. Its main feedstock purified terephthalic acid will be mainly supplied by Sichuan Shengda and Chongqing Pengwei.

China Resources aims to add another 500,000 t/yr production line in Zhuhai in south China's Guangdong province. This unit will probably start up in the fourth quarter giving China Resources total PET bottle chip capacity of 2.1mn t/yr.

Expansion of China's PET bottle chip capacity has speeded up from last year, with 1.7mn t/yr starting up in the second half of 2018. China will have 12.2mn t/yr of production capacity by the end of 2020 including the latest expansion projects.

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

29/10/24

China’s Sinopec cuts crude runs, sales in 3Q 2024

San Francisco, 28 October (Argus) — Chinese state-controlled Sinopec cut crude runs and product sales in the third quarter as downstream margins weakened, leading to lower profits for the quarter. Sinopec processed 5.08mn b/d (190.69mn t) of crude in the first nine months of this year. The firm set a full-year target of 260mn t (5.2mn b/d) earlier in March. It sold 3.94mn b/d (138.06mn t) of gasoline, diesel and jet in the first nine months of this year domestically and has set a 2024 target of 191mn t. This suggests it will need to further ramp up throughput and sales in the fourth quarter to meet full-year targets. Sinopec is expected to pare back refinery runs this month from last month as margins weaken. But the company's gas output grew faster than expected. Output rose by 5.6pc on the year to 3.83bn ft³/d. It set a 2024 target of 3.78bn ft³/d earlier this year, which would be a 3pc growth from a year earlier. The company has this year "adjusted utilisation rate and product mix," it said, to counter "severe challenges" from rapidly decreasing oil prices and narrowing margins for certain products during the first nine months of this year. But this still failed to stem losses in its downstream segments in the July-September quarter, including refining and chemicals. Chinese gasoline crack spreads have collapsed to -$1.22/bl on 25 October, from their summer peak of $18.68/bl on 5 August, because of weak demand exacerbated by rapid displacement in the transport sector by electric vehicles, and this is forcing refiners to cut runs and boost exports. The company's net profit fell by 55pc on the year to 8.03bn yuan ($1.12bn) in July-September, a slightly bigger drop than some analysts estimated. Refining earnings before interest and taxes (ebit) of -$0.29/bl in the quarter is the lowest level since the fourth quarter of 2022, when it fell to -$2.61/bl. The fall in July-September ebit may be partly because of crude inventory loss, although the company did not specify. The company stepped up its "oil to chemicals" and "oil to specialties" project expansions. Its combined capital expenditure (capex) of Yn28bn for its refining and chemicals segments in January-September went to expanding the refining capacity at its 540,000 b/d Zhenhai refinery in eastern Zhejiang and adding of ethylene capacity at refineries including its 470,000 b/d Maoming refinery in southern Guangdong. Sinopec 3Q 2024 results 3Q24 3Q23 ±% Profit Yn bn Profit 8.0 17.9 -55.2 Upstream 16.1 16.2 -1.0 Refining -1.0 7.3 -113.3 Marketing 5.2 9.6 -45.4 Chemicals -1.6 -3.3 -51.5 Natural gas and pipeline NA NA NA Sales mn b/d Domestic product sales 4.1 4.3 -4.4 Total product sales 5.3 5.4 -2.0 Output Crude output mn b/d 0.8 0.8 -0.2 Natural gas output bcf/d 3.8 3.6 4.7 Refinery runs mn b/d 5.1 5.3 -4.8 Gasoline output mn b/d 1.5 1.6 -0.5 Diesel output mn b/d 1.1 1.3 -14.2 Jet output mn b/d 0.7 0.7 2.8 Source: Sinopec, Argus Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Range sees 6pc gain in realized 3Q NGL pricing

23/10/24

Range sees 6pc gain in realized 3Q NGL pricing

Houston, 23 October (Argus) — Marcellus gas producer Range Resources received a 6pc higher premium versus Mont Belvieu, Texas, on its natural gas liquids (NGL) production in the third quarter owing to its access to markets in Europe and Asia. The Fort Worth, Texas, based producer received on average $25.96/bl for its NGLs, excluding derivatives, up 6pc versus last year. That exceeded average NGL prices at Mont Belvieu, Texas, by $4.10/bl. "Our ability to market ethane propane and butane into the international markets drove the highest NGL premium in company history, at over $4/bl over the Mont Belvieu index," said chief executive Dennis Degner. Range reported its natural gas liquids (NGL) production rose 5pc year over year to 10.2mn bl, or 111,465 b/d, in the third quarter as its gas production rose by 4pc to 1.5 bcf/d. Range updated its full-year guidance on its NGL pricing to Mont Belvieu plus $2.10-$2.35/bl, up from the 75¢/bl to $1.50/bl estimated in the second quarter, owing to gains in propane and butane prices at Mont Belvieu, Texas and higher spot premiums for exported cargoes out of the US. Range's average NGL estimates assumes 53pc of its production is ethane, 27pc propane, and 8pc normal butane. Mont Belvieu, Texas, LST propane averaged 72.9¢/USG in the third quarter, higher than the average of 68.9¢/USG in the third quarter of 2023. Mont Belvieu butane prices averaged 97.25¢/USG in the third quarter, up versus 83.47¢/USG last year. Range credited its term commitments on Energy Transfer's Mariner East system, which pipes NGLs from Range and other Marcellus producers to its export facility at Marcus Hook, Pennsylvania, with its higher realized prices on NGLs, particularly propane and butane, given higher netbacks from Europe and Asia. "International demand and pricing for NGLs remained robust in the third quarter, leading to near maximum US export capacity utilization," Degner said. "Improving Panama Canal throughput access, and a growing global fleet of LPG ships improved waterborne freight rates, and these factors combined to drive export price premiums to new levels relative to the Mont Belvieu index, and Range's portfolio of transportation and sales contracts provided reliable access to these premium markets." Argus-assessed prices for spot propane cargoes on a fob basis rose above Mont Belvieu +30¢/USG in mid-September, a multi-year high. Degner noted higher premiums on spot cargoes are expected to remain until US Gulf coast terminals expand capacity there in late 2025. By Amy Strahan Netback to Northwest Europe vs Mont Belvieu $/t Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Korea to impose anti-dumping duty on Chinese PET resin

21/10/24

Korea to impose anti-dumping duty on Chinese PET resin

Shanghai, 21 October (Argus) — The Korea Trade Commission (KTC) has recommended that the Ministry of Economy and Finance (Moef) impose anti-dumping duties on polyethylene terephthalate (PET) resin from China, with an implementation period of five years. The affected products are classified under South Korea's tariff code 3907.61.0000. KTC recommended a rate ranging from 7-7.98pc, with this decision in line with market expectations. Chinese producer Jiangsu Ceville applied for the exclusion of recycled PET from the scope of the investigation, but the South Korean government ultimately denied this request. Moef in July announced the decision to impose provisional anti-dumping duties on the affected products for a period of four months, effective until 29 November. This came after KTC issued a positive preliminary ruling that recommended the imposition of provisional anti-dumping duties on the involved enterprises. KTC had started an anti-dumping investigation into the PET resin produced in China on 12 January. South Korean company TK Chemical had filed an anti-dumping investigation request with KTC in November 2023, citing losses to the relevant domestic industry because of the dumping of Chinese PET resin. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Housing construction falls in Sept, PVC demand mixed

18/10/24

Housing construction falls in Sept, PVC demand mixed

Houston, 18 October (Argus) — Housing permits and starts fell in September according to the latest figures from the US Census Bureau due to volatility in multi-family construction, but single-family construction has grown more steadily throughout the peak building season. Permits for privately-owned homes were at a seasonally adjusted annual rate of 1.428mn units in September, according to the US Census Bureau and the US Department of Housing and Urban Development (HUD). That is 2.9pc below the revised August rate of 1.47mn units and 5.7pc below the September 2023 rate. Housing starts were at a rate of 1.354mn units in September, 0.5pc below the revised August rate of 1.361mn units and 0.7pc below September 2023. Permits have risen and fallen every other month since April of this year. During that time permits for buildings of five or more units trended in the exact same way: rising in one month only to fall the very next. Housing starts have followed a similar track as well, only the month-to-month volatility has endured for the entire year. Once again, multi-family housing units have driven the inconsistency. More recently, multi-family homes have declined for two straight months. Single-family construction Stripping away the multi-family construction figures reveals that single-family construction has not only been more stable but has been growing consistently in recent months. That growth has been limited in some instances and any rebound has still been evidence of a construction market restrained by weaker buying sentiment fueled by high home prices as well as higher borrowing costs. Single-family housing permits were at a rate of 970,000 units in September, 0.3pc higher than August's revised rate. That is the highest rate in five months and the fourth-straight month of growth. Permits had fallen each month from January to June, though, and permits in September 2024 were still down 1.2pc compared with the prior year. Housing starts for single-family units were at a rate of 1.027mn units in September, 2.7pc higher than August and 5.5pc higher than the previous year. Housing starts have only grown for three consecutive months, reflecting the delayed impact of permitting on actual housing construction. The year-to-year comparisons reflect a housing construction market that is recovering from a weak 2023. But softer permit numbers compared with last year still indicate some hesitation in future demand expectations and the likelihood of a continued gradual and uneven recovery into next year. Builder confidence rose to 43 points in October compared with 41 in September, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) released on 17 October. That reflects some improving sentiment despite affordability concerns in the market, but any mark below 50 points is still indicative of a weak market. PVC demand varies by end use The housing market picture has been mixed for polyvinyl chloride (PVC) all year. Demand peaked for some buyers and converters back in May or June, with demand only slowly declining since. But some end use segments like pipe or exterior profiles have reported stable and solid demand even into October. Pipe production has been buoyed by public investments in infrastructure, such as spending to replace lead pipes used in the US' water infrastructure as part of a recent finalization of an Environmental Protection Agency (EPA) rule requiring all lead pipes be replaced within 10 years. But for exterior profiles, which covers siding, windows, and doors, the market has also been fairly strong as of late. Resin suppliers to these customers have reported strong ordering patterns, seemingly without concern about inventory buildup before the end of the year. Stronger single-family construction activity, which would use more siding for example, combined with recent storms in the Southeast US requiring home rebuilding and repair could explain some of this better demand sentiment compared to other PVC end uses. However, PVC contract pricing has been under pressure due to larger PVC inventories among producers and competition for market share. Argus assessed September PVC contracts as stable from the previous month at 59.5¢/lb, but some customers reported getting modest price decreases in limited instances. By Aaron May Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

CSX forecasts softer 4Q rail demand

17/10/24

CSX forecasts softer 4Q rail demand

Washington, 17 October (Argus) — Eastern US railroad said it expects that fourth quarter commodity market conditions will be mixed, limiting some freight demand. "Going into the fourth quarter, near-term conditions look modestly more challenging," chief executive Joe Hinrichs said on Wednesday. But the railroad expects "modest volume growth", supported by a few segments including chemicals and agriculture. But lower locomotive fuel prices and the impact of international coking coal prices, which are linked to export rail contracts, could drive a decrease in total revenue during the fourth quarter. He estimated that impact at roughly $200mn compared with last year's fourth quarter revenue of $3.68bn. CSX expects to see a carryover of year-over-year momentum in chemicals, agriculture and food, forest products and minerals, while metals and automotive will continue to be challenged. Demand for metals shipments is predicted to soften through the end of the year. Interest in shipments, particularly steel, is soft because of "sluggish demand, ample supply and low commodity prices", chief commercial officer Kevin Boone said. A weaker-than-anticipated automotive market contributed to the drop in metals demand. Consumer demand for automotive products has been reduced by high retail prices and interest rates, which has led to increased dealer inventories and slower production, Boone said. But CSX expects that an "interest rate easing cycle will help these markets normalize," Boone said. Metals and equipment volume fell in the second quarter, primarily because of lower steel and scrap shipments. Shipments of metals and equipment fell by 9pc to about 64,000 carloads compared with the same three months in 2023. Revenue dropped to $208mn, down by 8pc from a year earlier. Automotive volume dropped in the second quarter because of lower North American vehicle production, CSX said. Automotive traffic fell to 301,000 railcars loaded, down by 2pc from the third quarter 2023. Automotive revenue dropped to $98mn, down by 3pc compared with a year earlier. The outlook for fertilizer shipments is mixed following the third quarter as a decline in long-haul phosphates shipments persisted. Volume was negative, but the railroad was able to haul some profitable spot shipments. Shipments of fertilizer fell to 45,000 carloads in the third quarter, down by 4pc from a year earlier. Fertilizer revenue dropped to $118mn, down by 5pc from a year earlier. CSX expects growth in some market segments. Chemicals freight demand is expected to continue growing following "consistent, broad strength across plastics, industrial chemicals, LPGs, and waste. That demand helped boost chemicals volume by 9pc compared with a year earlier. Chemicals revenue rose to $727mn in the second quarter, up by 13pc compared with a year earlier. Agricultural and food products shipping demand is expected to continue growing, led by demand for grain and feed ingredients from the Midwest for supplies. That follows a third quarter when higher ethanol shipments, as well as increased overall volume helped raise volume by 9pc from the third quarter of 2023. Revenue from shipping agricultural and food products rose to $416mn, up by 11pc from a year earlier. CSX expects intermodal growth to continue with the trucking market falling, which would help drive more container freight to rail. Intermodal shipments are goods shipped in containers and trailers between different modes of transportation. The 1-3 October strike by the International Longshoremen's Association (ILA) did impact intermodal traffic, but the railroad was pleased with the "relatively quick short-term solution", Boone said. International intermodal volume during the third quarter rose because of higher east-coast port traffic. Domestic volume was mostly flat. Overall intermodal volume during the quarter increased by 3pc compared with a year earlier. But lower revenue per container helped reduce total intermodal revenue by 2pc to $509mn. CSX does not expect a major shift in coal volume through the end of the year as coal markets seem relatively stable and utility stockpiles are sufficient, Boone said. Rising natural gas prices are also unlikely to stimulate a "near-term step-up in volumes". Export coal demand has been consistent lately, particularly from buyers in Asia. But revenue per railcar for export coal could make a modest single digit drop, as contracts are tied to international coal benchmarks and prices fell earlier this year. Expport coal voume rose to 11.1mn short tons (10.1mn metric tonnes) in the second quarter on higher demand for thermal and coking coal. But domestic coal deliveries fell to 10.2mn st, down by 12pc from a year earlier, on lower deliveries to power plants and lake and river terminals. Rail coal volume fell by 2pc from a year earlier, while revenue dropped by 7pc to 553mn st. Total CSX profits rose to $894mn, up by 8pc compared with third quarter 2023. Revenue increased to $3.6bn, up by 1pc. By Abby Caplan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more