IHS Markit 34th Annual World Petrochemical Conference

Plastic industry in focus as it faces backlash

that threatens chemical makers
IHS Markit held its 34th Annual World Petrochemical The issue of plastic waste took center stage at IHS World
Conference on 19-22 March 2019 in San Antonio, Texas, USA. Petrochemical Markit's conference as executives of companies
The chemical industry is heading for a slowdown as society that produce the chemicals that go into plastics called on their
turns against disposable plastics and the rise of recycling industry to innovate and develop new technologies to promote
weakens demand, IHS Markit predicted at the Conference. recycling and curb pollution.
After climbing to multi-year highs, chemical earnings will drop Although the topic of plastic waste has already been on the
this year and won't recover until 2023 as environmental issues minds of the petrochemical industry, this is the first time the
add to the drag from a downturn in the global economy, issue dominated the panels and speeches at the annual
according to the global research firm. conference, which draws thousands of petrochemical
Speaking in one of the sessions in the conference Jim professionals every year.
Fitterling, chief executive officer of Dow Inc. and chief The European Union is leading a global movement to phase
operating officer at DowDuPont, said that “Plastic waste I out single-use plastics and bolster recycling as society
believe is going to be the sustainability issue of our time. It responds to an ocean pollution crisis that threatens the
represents not only the biggest risk to our industry, but also industry's “license to operate,” Victor
one of the biggest opportunities. ” Bell, president of Environmental
“Modern society is what it is today because of the miracle of Packaging International, said in a
plastics, we cannot forget that, but we also cannot forget or presentation. At worst, the backlash
ignore that plastic waste is a global crisis that needs oUr against plastic could potentially cut
attention,” he further said. The chemical industry is best the growth in demand for new resin
positioned to combat plastic waste by developing new by half, although it probably w on't be
products and innovative ways to recycle, Fitterling said. that severe because of limits in
Product bans are “a slippery slope” that do more harm than recycling capacity, according to IHS.
good, because plastics bring environmental benefits such as Shaped by p h o to g ra p h s of
making vehicles lighter and keeping foods fresh longer, he said. garbage-strewn beaches and reports
“If we can do chemical recycling back to feedstocks and of a vast Pacific garbage patch, public
Bob Patel
back to plastics versus the alternatives — another oil and gas CEO of LyondellBasell a ttitu d e s to w a rd p la s tic s are
well — that opens up a whole range of impacts on climate increasingly skeptical, and it will take
possibilities that people haven't thought about,” Fitterling more than education to reverse the
said. trend, says Bob Patel, CEO of LyondellBasell. Speaking at
Conference, he warned that the problem of plastics waste is
growing, and that it will require innovative solutions
developed cooperatively across the value chain.
“Typically, as an industry we would say let's do more to
explain why plastics are so good for society,” Patel told
attendees. “But I think the time has now come to address
the issue head on, rather than to be advocates for why
plastics are great, because the perception is moving very,
very rapidly.”
To illustrate, Patel noted that the number of Google
searches for “marine litter” has increased by 204% since
2013, while the number of searches for “plastics pollution”
has increased by 608%. He also cited recent polls finding
From Left to Right: Lynn Tattum (moderator), Vice President, Oil,
that 86% of US and UK citizens are concerned about
Midstream, Downstream and Chemical, IHS Markit; Jim Fitterling, CEO, plastics waste in marine environments, and worse, 53% of
The Dow Chemical C,o.; Datuk Sazali Hamzah, Managing Director & US citizens and 68% of UK citizens believe it is necessary
CEO, Petronas Chemicals Group Berhad (PCG); and Deepak Parikh, to eliminate the use of plastics in modern life.
President and CEO, Clariant Corp. North America “Make no mistake, this is a very relevant and prevalent

68 ◦ P O P U L A R P L A S T IC S & P A C K A G IN G ◦ APRIL 2019

topic,” Patel said. “O ur children are being taught in schools Variable outlook in emerging markets
that plastics are bad. If we don't do something about this waste
issue, then perhaps those teachers are right—but we will do The rise in global uncertainty is being keenly felt in
something.” emerging markets, according to an executive panel discussion
LyondellBasell has, for example, partnered with the at the t World Petrochemical Conference. Economic growth is
Karlsruhe Institute of Technology in Germany to develop a decelerating in China, although the government is enacting
chemical recycling process to transform plastic waste into stimulus measures to maintain current growth levels. Latin
feedstock. The company has also partnered with SUEZ to start America is facing both economic and political challenges, and a
a recycling company in the Netherlands, Quality Circular supply/demand imbalance could emerge in India. The threat
Polymers. “My point is that we're going to have to move on of trade war between the United States and China hangs over it
multiple fronts,” said Patel. “It's not just about mechanical all.
recycling or just about physical recycling. We're going to have In terms of raw GDP growth, China and India—especially
to do several different things in parallel.” the latter—are expected to see solid figures. According to IHS
Executives from LyondellBasell, Dow Chemical, Clariant Markit, GDP growth is expected to total 6.3% and 6.0% in
Corp. and others touted a new industry wide effort launched China for 2019 and 2020, respectively. In India, GDP growth
earlier this year called the Alliance to End Plastic Waste. The is forecast to be 7.1% and 7.0%, respectively. This is despite a
nonprofit has about 35 members, but Fitterling said he could manufacturing recession in China, as IHS Markit's purchasing
see expanding to 300 members. The Alliance has committed managers' index (PMI) for mainland China has slipped below
more than $1 billion over the next five years toward attacking 50 for the first time since 2016.
plastic pollution from a variety of angles — from waste cleanup Emerging markets overall will continue to grow, but at
to investing in technological advances in recycling. slower rates. Average GDP growth in emerging markets
Some environmentalists have criticized the Alliance as an totaled 4.8% in 2018, and is expected to decline to 4.6% this
ad-hoc measure that w on't address the root of plastic waste. year, according to IHS Markit. Growth in Brazil and Russia is
expected to remain below 2%, although growth in Brazil is
But Bob Patel defended the Alliance's multipronged approach,
expected to pick up after an exceptionally w eak period.
one that involves chemical companies as well as companies that
use plastics to make consumer goods, such as Procter &
China still key
Gamble. He encouraged the industry to continue to take a
pragmatic approach to problem. China remains a critical market, and a critical source of
“I think for us as chemical companies, we can't immediately growth, for chemical manufacturers. The country is expected
get into the mode of defending our turf. If certain single-use to see ethylene demand exceed 5 million metric tons by 2020,
applications should no longer be in plastics, then let it be what up from about 3.5 million metric tons in 2015, according to Bi
it is,” Patel said. “We have to keep the bigger picture in mind Chen, executive v.p. with China National Offshore Oil
and not worry about individual applications that may be 1 or 2 Corporation (C N O O C; Beijing). Chinese demand can “help
percent of the entire market. I think a healthy dose of sustain the upcycle” in petrochemicals, Chen says.
pragmatism and thinking about the big picture will be very Yet, the industry in China is changing. “There is a structural
important for us.” imbalance in supply and demand of China's petrochemical
Leaders also called on companies to start investing more in products,” Chen says. “Overcapacity of general products and
technologies around chemical recycling, which is different insufficient capacity of general products exist at the same
than traditional mechanical recycling that grinds down plastic time.” For many products, China produces 10% or less of
domestic demand, with particularly large gaps in downstream
bottles into materials for reuse. Chemical recycling involves
polyolefins and engineering plastics. China's government has
processes to turn previously unrecyclable plastics into
urged a public strategy to correct these imbalances, aiming to
feedstocks and fuels to be used again in the production of
push the country's chemical industry downstream into
clothes, bottles and everyday products.
intermediates and specialties.
On the supply side, New plants, primarily in China, will
Given China's reliance on petrochemical imports, the trade
oversupply chemical markets and depress margins, said Dave
war with the United States is a threat. The United States is a
Witte, IHS senior vice president. Earnings are likely to plateau
major exporter of most petrochemical products, and China is
at a level below last year's, he said. Industry demand growth
among the largest importers, Chen notes. “China and the US
will slow to about 4 percent a year, from 4.4 percent, partly have a clear division of labor and rely heavily on each other [in
because recycled plastics are replacing virgin resins. c h e m i c a l s p r o d u c t i o n ] , ” he s a ys . “ T h e y ar e
“Polyethylene, used in shopping sacks and packaging, faces c o m p l e m e n t a r y . . . c o o p e r a t i o n me ans mo r e t h a n
a global oversupply in the near term, while an oversupply of competition.”
ethylene, a precursor to polyethylene, will come early next
decade, Witte said. U.S. plastics makers also will face pressure India rising
from natural gas liquids such as ethane, a key raw material, he
said. The outlook is relatively better for polypropylene, used While China shifts downstream and considers challenges in
in bottle caps and carpets. trade policy, India looks set to become a bigger growth engine.

P O P U L A R PLASTICS & P A C K A G IN G o A P R IL 2 0 1 9 o 6 9
 pecial R eport

The country will be the world's most populous by 2025, says back to styrene, a value chain that Trinseo is predominantly in.
Ajit Kumar, chief general manager/petrochemicals marketing He shared with the audience news that Trinseo's joint venture
with Indian Oil Corporation (Mumbai). (JV) Americas Styrenics has closed the loop with its partner
This plus rising living standards means big increases in Agilyx and taken its first commercial truckload of styrene
petrochemicals consumption. By 2040, Indian petrochemicals monomer from recycled polystyrene to route back through its
consumption is expected to total 104 million metric tons, styrene unit in Louisiana to produce food-grade polystyrene.
compared with 26 million metric tons today, according to “It's small-scale today, a first step that's proof of concept, but
Kumar. About 60 million metric tons of that will need to be it's commercial quantities that are going through. This is really
imported, he adds. India's growth is driven by demographics, exciting, to say that as an industry and as companies we are
including population growth and the rising middle glass, taking steps and moving in the right direction.” Agilyx and
Kumar says. “Trade issues and the manufacturing recession are AmSty signed a letter of intent to form a JV in November last
not impacting the Indian economy. ” year and agreed an offtake deal to process recycled styrene
monomer produced at Agilyx's Tigard, Oregon, facility in
Industry's small steps toward sustainability as Americas Styrenics' St. James, Louisiana, styrene plant.
A n o th er panelist, E dison T erra, executive vice
a business strategy president/polyolefins South America/Europe and renewables
Sustainability as part of a company's business strategy is a at Braskem, highlighted his company's approach. “O ur vision
highly complex issue, but the chemical industry is beginning to of sustainability for plastics is circularity. The circular
take tangible early steps toward eventual implementation of a economy is not about tying different linear chains together, it's
circular economy. A panel discussion at the World really about redesigning the whole chain to make it circular,
Petrochemical Conference highlighted several initiatives that and with the aim of doing that collectively. ”
illustrated how the industry is responding to the heightened There are some initiatives that companies can do by
global awareness of the issue of plastic waste. themselves, he adds, giving as an example a project by Braskem
to produce recycled resin “that preserves the mechanical
properties as if it was a virgin product. This is a very disruptive
initiative that we are developing and partnering with a few
customers that we have. ”
The company's Wecycle platform has delivered promising
results to create a recycled resin with higher quality and a high
percentage of recycled materials derived from household post­
consumer thermoformed packaging made from polyethylene.
Its main characteristics include resistance to stress cracking like
that of virgin resins and tensile stress mechanical properties
that are 70% higher than recycled resins currently being used
in the market.
Terra adds: “What we try to use as a strategy is that every
time we tackle one specific solution, we try to make it in a way
From left to right: Tim Stedman, Senior Vice President/Business that we can scale it very rapidly and replicate it in other places.
President, Trinseo; Edison Terra, Executive Vice President,
We are taking care of the liabilities that we have today but at the
Polyolefins South Anierica/Europe & Renewables, Braskem; Nina
Butler, CEO, MORE Recycling same time we work to not generate new situations. Every time
we are developing a new product or application, we must figure
The industry's various initiatives came none too soon, says out and think about the whole life cycle of that product, and
Tim Stedman, senior vice president/business president at how we are going to introduce it to the economy after the life
Trinseo. “This one got away from us big time. We are playing cycle is over.”
catch-up as an industry, not only in terms of technology but Nina Butler, CEO of MORE Recycling, points out that
also in the way of communicating and how to address this issue. plastics collection in many parts of the world is in decline
Because it came at us in a way that I don't think we were ready because of the poor economics. “In the US we may have
for,” he says. roughly a billion pounds of stranded material that was
Stedman continues: “On the positive side, this industry is collected that doesn't have the demand pull-through, or the
incredibly creative and has immense capability to solve capacity to process it domestically that we had in previous
problems. The reality is that all these announcements by years because we were able to send that material offshore.”
various brand owners and governments are being made, but Despite this, she says she “believes fundamentally that the
they don't know how to solve them. It's very complicated.” He petrochemical industry can unlock this plastic paradox, this
adds that a golden opportunity remains to catch up and challenge of plastic waste versus greenhouse gas emissions.”
“actually demonstrate the real value the industry brings and Dewey Johnson, vice president/base chemicals and plastics
that our products can bring. ” at IHS Markit, highlighted the improving speed in terms of the
One such example is the chemical recycling of polystyrene length of time it can take to bring new technology “from the

70 o POPULAR PLASTICS & PACKAGING o APRIL 2019

bench to the market.” Energy renewables are a good example, aiming to convert more than 40% of its 400,000 b/d crude
he says. throughput into chemicals. It is due to start operations this year.
“Only two or three years ago renewables were on the edge “It's a very high level of integration, even at 40%, you're talking
of the conversation. This year renewables are a very significant about 8 million tons/year of product coming out of one project,
part of the energy portfolio as the energy industry looks at which is going to have its impact upon the market,” says
decarbonization of its portfolio. It's a great example of how, Sharma.
when you have focus and investment, things happen very Another is the Saudi Aramco/SABIC joint venture,
quickly,” says Johnson. planning a 400,000 b/d CO TC complex, which Sharma says
aims to convert 40-50% of its throughput into chemicals. It is
Crude-to-chemicals integrated complexes in planned to start operations in Yanbu, Saudi Arabia by 2025,
the spotlight producing up to 9 million metric tons/year of chemicals and
base oils. “The previous project, Hengli, is focused more on
The emergence of world-scale crude-oil-to-chemicals aromatics. We think this project, because of the location of this
(COTC) and integrated refinery and petrochemical complexes project, will be more focused on olefins.”
will have a profoundly disruptive impact upon the chemicals The next level of integration, says Sharma, is represented by
market, which will only be able to deal with a handful of these the recent agreement between Aramco, Chevron Lummus
projects. Global and CB&I which is targeting a project with a 70-80%
“We believe that the market can only absorb some of these conversion rate to chemicals. “If they are successful, it will
projects, so it will have to think about how many of these definitely disrupt the market,” he says. Some of the refineries of
complexes it can bear, and it may end up overbuilding the future will have zero fuels production, according to another
capacity,” says Sanjay Sharma, Vice President/Middle East and speaker, Honeywell U O P's Keith Couch, senior director/sales
India for Chemical Consulting at IHS Markit. support and integrated product solutions.
Speaking in the Feedstocks & Refining Integration track of “Petrochemicals integration was a dream long ago. It's
the Conference, Sharma adds country strategies are also becoming the standard upon which all integrated industrial
driving some of these investments. “There is a risk in that. They mega-complexes are being built. We do see a future where some
may end up accepting a lower return on their capital because refineries produce only petrochemicals. The opportunity to do
that is driven by their national strategy. For them, what is so has been determined by fundamental economics,” he says.
important is placing crude, it's not about maximizing their He adds that he doesn't see a fundamentally balanced future
returns from chemical investments. They may end up in terms of olefins and aromatics. “We didn't see a balanced
accepting burning their capital on the chemical business past, and I think the past is going to be the same as the future.
because for them it's the placement of crude that's more About 75% of chemicals is olefins-driven, and 25% is
important. That's their national strategy and that's the concern aromatics-driven, that's been the same for about the past 15-20
for the chemical industry. ” years. Fundamental economics will continue to show that same
Sharma went on to outline how chemical companies that ratio to be true.”
have access to the required technologies and markets “are in a
strong position in this moment because oil companies and YPF sees Argentina petrochemical production
refiners will need those companies to take their products to the
market and have access to their technology. We feel that, for
hub within next decade
the chemical players with strong technology and access to the Argentina has the potential to create a petrochemical cluster
market, this is an opportunity for them to align with those within the next decade, says Federico Veller, chemicals
refiners and oil companies.” executive manager at YPF (Buenos Aires), Argentina's state-
Some of the largest integrated C O T C
complexes are aiming for yields of anywhere
between 40-80% of chemicals, he says, while their
deep integration will also give them flexibility and
product diversification advantages. “For refiners,
the ability to switch between products is critical as
demand for transportation fuel decreases going
forward. Flexibility is key,” he says.
• Locations such as India, China and SE Asia are
natural preferred destinations for these type of
complexes, he adds, as large multinational
companies and national oil companies look to
operate in growing markets with low capital costs.
He highlighted several examples of the current
crop of mega-facilities being built, including the
Hengli refinery and para-xylene complex, which is

P O P U L A R PLASTICS & P A C K A G IN G O A P R IL 2 0 1 9 Q 71
owned energy company. YPF hopes to develop the Vaca world-scale, ethane-based ethylene and polyethylene plant.
Muerta formation shale gas and natural gas liquids (NGLs) The new study finds that the advantages associated with
potential into significant petrochemical investment to serve natural gas and LPG are not as great, but they are significant,
South American markets. including feedstock costs 15% lower in the case of methane,
Veller told attendees at the Latin American Petrochemical 6% lower in the case of propane, and 13% lower in the case of
Summit part of WPC that YPF was studying world-scale butane; and delivery costs lower by 26% for methanol, 12%
investment in ethylene, propane dehydrogenation (PDH), for integrated ammonia/urea, and 11% for integrated
methanol and derivatives, including polyethylene (PE) and propane dehydrogenation/polypropylene (PDH/PP).
polypropylene (PP). The company is also evaluating expansion “While both methanol and ammonia/urea production
of urea. from natural gas are economically advantaged in the region
“We strongly believe that in the timeframe of the next five to due to the low feedstock costs, the most advantaged LPG
ten years that a petrochemical cluster could be developed in derivative is an integrated propylene [via propane
Argentina,” Veller says. Partners are being sought, he says. dehydrogenation] to polypropylene project in the shale
“The opportunities are so big that it would be impossible to be crescent region,” says Anthony Palmer, vice president,
developed by only one player,” Veller says. “We need the effort chemical consulting at IHS Markit. “Access to ample supplies
of several companies.” YPF hopes to help “catalyze this of locally produced propane leads to a competitive
investment,” he adds. manufacturing cost for propylene, and subsequently
South America today has a significant petrochemical supply polypropylene, which is augmented by the region's close
deficit. In 2018, the region imported 7 million metric tons/year proximity to over three-quarters of the US polypropylene
(MMt/y) of urea, 1.1 MMt/y of PE, 800,000 metric tons/year of end-use market.”
methanol, and 300,000 metric tons/year of PP, Veller says. IHS Markit forecasts that the shale crescent region will
New petrochemical production would largely serve regional supply 45% of US natural gas production by 2040, up from
demand needs although there is potential for global exports of 29% in 2018, and 19% of US NGL production in 2040, up
methanol, he adds. from 14% in2018.
YPF is evaluating Argentina's first large-scale liquified
natural gas (LNG) export facility to capitalize on the expected Peak refined fuels demand drives increased
surge in shale gas production from Vaca Muerta. That
investment is needed to support the upstream, midstream and
refinery integration
infrastructure development needed to ensure petrochemical Spurred by trends in mobility and process technology, oil
feedstock supply. refiners are considering whether to shift their growth
investment into the petrochemical sector, but rapid changes
WPC Study finds PDH/PP advantaged in in public attitudes toward the sustainability of plastics
complicate assessments of market
shale crescent risk , says M ark E ram o , vice
The feedstock and delivery advantages available to president/global business
petrochemical projects in the shale crescent region of Ohio, development, energy and chemicals
West Virginia, and Pennsylvania extend beyond the ethylene at IHS Markit. Eramo, speaking at
chain, according to “Estimated Logistics Benefits of the Shale the Conference.
Crescent USA Region Versus the US Gulf Coast for Natural Re f i ne r s have h i s t o r i c a l l y
Gas and LPG,” a new study released at the Conference. regarded energy as their primary
Commissioned by Shale Crescent USA and conducted by bus i n e s s , and p e t r o c h e m i c a l
IHS M arkit, the study evaluates chemical industry production as a secondary and even
development opportunities in the region based on the minor activity. However, demand
predicted volume and cost of natural gas (methane) and for petroleum products is slowing
liquefied petroleum gas (LPG; propane and normal-butane) toward a plateau mainly because of
production in the Marcellus and Utica shale plays; the logistics- increased fuel efficiency, while
related cost advantage of feedstock supply; and the cost to demand for petrochemicals is forecast to continue growing at
distribute the chemical products to regional customers. rates above GDP, says Eramo.
The Gulf Coast has long been the hub of US petrochemical
production, but the shale crescent region—with its abundant Refiners' options for deepening their participation in
natural gas and natural gas liquids (NGL) supply, access to petrochemicals range from increased feedstock supply to
water for transportation and processing, and proximity to the direct investment in production, or integration. The
vast m ajo rity of N o rth A m erica's th erm o p lastics integration of petrochemical and refining has evolved over
consumers—can make a strong case for becoming a second the decades, notes Eramo, with petrochemical production
hub. accounting for a greater and greater share of the crude oil
A related study last year found that the shale crescent converted at the facility. Before the 1990s, he says, integration
offered compelling advantages over the US Gulf Coast for a amounted to the simple recovery of aromatics and FCC

7 2 ◦ POPULAR PLASTICS & PACKAGING o APRIL 2 019

olefins, products that accounted for less than 15% of the oil Eramo. "Listen and watch for signposts, [which show] the
converted. During the 1990s and 2000s, refiners forward potential for a fundamental shift in demand growth."
integrated, incorporating steam crackers and commodity
derivative units that consumed 15-25% of each oil barrel. The ExxonMobil outlines Guangdong
2010s have been a period o f "chemical emphasis," with refiners
petrochemical complex derivative plans
increasing the scale of integration, the complexity of
derivatives production, and the share of oil converted to ExxonMobil's proposed complex in Guangdong Province,
25-40%. China, based on a 1.2-million metric tons/year (MMt/y)
The next step in the evolution of refinery integration will be ethylene flexible feed steam cracker, will include more than 2
crude oil-to-chemicals (COTC). "This is a new technology million metric tons of polyolefins, according to company
being developed, that says you can go as deep into the barrel as officials.
80%—which completely turns the equation around from the The complex would produce 1.2 M Mt/y of polyethylene
1980s and 90s," says Eramo. "Now you are building
for chemicals, not fuels."
CO TC is essentially petrochemical production at
the scale of oil refining, with capacities three to four
times greater than today's largest plants, requiring
significantly higher capital investment. "To me, the
most important message here is, if this does happen,
and we do see these assets being built, chemical
producers will have to adjust the build cycle to the
new supply increments," says Eramo.
However, the economic case for a COTC facility
could change if the demand outlook is affected by the
rising outcry over plastics waste. Eramo points to
several media events over the past year that seem to
have contributed to the negative turn in public
opinion, including the BBC's Blue Planet II
documentary, which drew attention to the problem
of marine plastics waste, and a statement by the
Royal Statistical Society that 90.5% of all plastics
waste produced has never been recycled. In November, The (PE) and 860,000 metric tons/year of polypropylene (PP),
Collins Dictionary highlighted the issue by naming "single­ Jennifer Chan, vice president/major growth ventures at
use" its word of the year, noting that its use had quadrupled ExxonMobil Chemical Company, told attendees at the China
since2013. Forum on the final day of the Conference. The plant will use
"The good news is, governments, associations, companies, ExxonMobil's direct crude steam cracking technology and
and people at the grassroots level are responding. They want to generate around $4.4 billion in sales annually, according to the
help, to get engaged," says Eramo. "Now let's get more tactical company. The project will generate annual earnings of $700
and look at products and applications. What is the potential for million/year based on 2017 feedstock and margin economics,
post-consumer recycled content in that application, or the according to a recent investor presentation.
potential for deselection or displacement?" To answer these “The facility w ould su p p o rt C h in a 's n atio n al
questions, IHS Markit has conducted end-use application petrochemical development priorities and closely aligns with
analysis quantifying the potential impact on the polyethylene the development plans from the Guangdong area,” Chan says.
(PE), polypropylene (PP), polyvinyl chloride (PVC), ExxonMobil wants to build the world-scale petrochemical
complex in the Huizhou Dayawan Petrochemical Industrial
polystyrene (PS), and polyethylene terephthalate (PET) resin
Park at Huizhou in Guangdong Province. Start-up is
markets. Among the findings are that PE and PP hold 90% of
currently planned for 2023, subject to approvals.
the related volume risk.
Fernando Vallina, Chairm an, ExxonM obil China
"The plastics waste issue threatens petrochemical demand
Investment Company, said in a video played during Chan's
growth compared to historical trendline assumptions," says
presentation: “This plant is going to be focused on Chinese
Eramo. However, there is both an upside and a downside, he consumption, a plant in China for Chinese consumers.” He
notes. The downside risk is that large amounts of prime resin added that ExxonMobil's direct crude steam cracking
demand is lost to displacement and increased recycle content in technology would “provide cost advantages over naphtha
existing applications. The upside risk is new applications and feedstock, the industry standard in Asia.”
markets for post-consumer recycled plastic and increased China imported 2 million metric tons (MMt) of ethylene
penetration into new markets and application for prime resins. and 13 MMt of PE in 2017, according to IHS Markit data. It is
It is important to distinguish between "signposts" like the scheduled to add 13-14 M Mt/y of ethylene capacity between
plastics waste issue and transient events when forecasting, says 2018-21. ■

POPULAR PLASTICS & P A C K A G IN G o A P R IL 2 0 1 9 ◦ 73

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