According to a source from Petronas, an explosion occurred at the Pengerang refinery in Malaysia on Sunday.
The refinery has a refining capacity of 300,000 barrels per day and provides raw materials for petrochemicals with a total capacity of 3.
6 million tons per year, including 3 million barrels per day.
tons/year of naphtha, 1 million tons/year of ethylene, 900,000 tons/year of propylene, 165,000 tons/year of pure benzene, 180,000 tons/year of butadiene, 900,000 tons/year of PP, 40 tons/year 10,000 tons/year of HDPE, 350,000 tons/year of metallocene C6
Since 2020, the international environment has been quite unstable.
Natural disasters at home and abroad have occurred frequently, domestic epidemics have swept across the country, the Lotte Chemical Plant in South Korea has exploded, Saudi Arabia’s crude oil disputes have continued, and the epidemic has spread abroad.
The international economic environment has always been in a tense state, and the market economy is difficult to calm down.
According to statistics, the global production capacity in 2020 will be about 96.
1 million tons/year.
The Pengerang refinery in Malaysia provides 900,000 tons/year of PP production capacity.
The reduction in production capacity is good for the polypropylene market.
Under the situation of continuous increase, the supply side of the domestic polypropylene market is under pressure, and the overall market supply is strong and the demand is weak.
This incident has limited impact on the domestic polypropylene market
Furthermore, from the perspective of import and export, the total domestic PP import volume in 2019 was about 5.
22 million tons, of which about 5% came from Malaysia; the total PP export volume in 2019 was about 390,000 tons, of which about 4.
8% was exported, and nearly 20,000 tons were exported.
The domestic polypropylene market is in a state of strong supply and weak demand.
The explosion has reduced the input of some PP external quantities and cut some supply in the PP market.
It is good for the market in the short term, but the short-term positive impact is limited.
For the domestic PP market as a whole, It is difficult to arouse large fluctuations in the market, and the market price is still mainly affected by supply and demand