Due to the surge in polypropylene demand, South Korea may seek to import more naphtha

According to a report from Natural Gas News in Singapore on May 7, 2021, as the vaccination program is being promoted across Asia and the demand for basic materials required to manufacture medical equipment has surged, major South Korean petrochemical producers have stepped up efforts to increase The production of polypropylene has opened the door for South Korea to import more petrochemical raw material naphtha.

A downstream market analyst in Seoul said: "In the first quarter of this year, South Korea's demand for polypropylene and polyethylene increased significantly by more than 34% over the same period last year.

With many countries in East Asia launching coronavirus vaccination plans at the end of the first quarter, Korean medical equipment manufacturers are operating at full capacity for the domestic distribution and export of various plastic medical equipment.

Therefore, South Korean petrochemical companies stated that they have the ability to meet the needs of manufacturers of medical equipment and sanitary products, and these companies are also keen to provide the necessary materials.

An executive of Hanwha Total Petrochemical, South Korea’s largest petrochemical company, said the company has completed a four-year project to increase its polypropylene production capacity.

According to this project, Hanwha Total Petrochemical has built a new plant with an annual output of 400,000 tons of polypropylene, increasing its polypropylene production capacity from the previous 720,000 tons/year to 1.

In addition, Lotte Chemical stated that a new type of LDS or low dead space syringe developed by South Korean medical device manufacturer Poonglim Pharmatech has been selected as one of the main injection tools used in the national vaccination process.

Therefore, the Korea Petrochemical Industry Association stated that the demand for naphtha, a petrochemical raw material in Korea, may show an upward trend in the next few months.

　　Li Jun compiled from natural gas news

　　The original text is as follows:

　　S Korea may seek more naphtha as polypropylene, medical device needs surge

　　South Korea's major petrochemical makers have stepped up efforts to boost production of polypropylene as base material demand for medical device manufacturing surged following the rollout of vaccination programs across Asia, opening the door for the country to import more petrochemical feedstock naphtha.

　　South Korea's demand for polypropylene and polyethylene, which are essential for making general medical devices including mask filters, plastic disposable syringes and hypodermic needles, as well as protective medical suits and gears, jumped by more than 34% in the first-quarter from a year earlier, according to downstream market analysts based in Seoul.

　　With many countries across East Asia kicking off their coronavirus vaccination programs in late Q1, South Korean medical device manufacturers are running their plants at full capacity for both domestic distribution and export of various plastic-based medical equipment.

　　Accordingly, South Korean petrochemical producers said they are well positioned to cater to the needs of medical equipment and hygiene product manufacturers, and the companies are keen to supply necessary materials.

　　South Korea's biggest petrochemical maker, Hanwha Total, has completed a four-year project to boost its polypropylene production capacity, a company official said.

　　Under the project, Hanwha Total has built a new polypropylene plant with a capacity of 400,000 mt/year, raising its polypropylene production capacity by 55.

　　In addition, Lotte Chemical said a new LDS, or Low Dead Space, syringe developed by South Korea's medical device manufacturer, Poonglim Pharmatech, has been selected as one of the main injection tools to be used in the nationwide vaccination process and the petrochemical maker plans to ramp up polypropylene output as the company stands best to support manufacturing of the particular device.

　　As a result, South Korea's petrochemical feedstock naphtha requirement will likely trend higher over the coming months, according to Korea Petrochemical Industry Association.