countryreport from korea - cpmaicpmaindia.com/pdf/country_report_from_koria.pdf · notwithstanding...
TRANSCRIPT
AsiaPetrochemicalIndustryConference2014
May15~16,2014
Thailand
CountryReport
From
KOREA
KoreaPetrochemicalIndustryAssociation(KPIA)
-1-
C O N T E N T S
Ⅰ. Country Report ·························································· 5
Ⅱ. For Committee Meeting ········································· 21
1. General Matters & Raw Materials Committee ····· 22
2. Polyolefins Committee ··············································· 31
3. Styrenics Committee ·················································· 37
4. PVC Committee ···························································· 41
5. Synthetic Rubber Committee ··································· 45
6. Synthetic Fiber Raw Materials Committee ········· 49
7. Chemicals Committee ················································· 57
-2-
-3-
Ⅰ.CountryReport
-4-
2014 Asia Petrochemical Industry Conference - Korea
-5-
Review of Korean Petrochemical Industry and Its Prospect
1. Review of Korean Economy and Prospect
The Korean economy in recent days has shown stable trend in
employment and price aspects while having the increase in production
in entire fields of mining industry, service industry, construction
industry, public administration and so forth.
However, the recovery in the private sector in investment and so
forth has yet to be solidified and there are external risk factors
co-existing with the US's quantitative easing risk, unstable emerging
countries, weakening of Yen, slowing down in economic growth of
China and so forth.
Under such a situation, the GDP growth rate of this year (announced by
the Bank of Korea in January 2014, hereinafter the same) will be 3.8% (3.9% in the first
half → 3.7% in the second half) that is expected to be higher level than the last
year (2.8%).
The private consumption is expected to make solid increase with
the increase in purchase power following stable oil price and decline in
exchange rate while the facility investment will show relatively active
increase with the recovery in export and turning around from
lackadaisical economy up to the point in the signs of recovery.
Overall export in Korea is expected to expand the increase
compared to the previous year thanks to the recovery trend of global
economy, but it is likely to encounter difficulty in making substantial
increase due to the slow growth in newly emerging markets, as the
main export markets for Korea, as well as decline in exchange rate.
Country Report
-6-
<Review of major indices of domestic economy and its prospect (unit: %)>
2013
2014
First half Second half Annual
KIET BOK LGERI KIET BOK LGERI KIET BOK LGERIGDP 2.8 3.7 3.9 4.0 3.6 3.7 3.5 3.7 3.8 3.7
Private consumption
1.9 3.4 3.4 3.0 3.2 3.4 2.8 3.3 3.4 2.9
Construction investment
6.7 2.9 3.5 1.2 1.8 0.0 1.7 2.3 1.6 1.5
Facility investment
▼1.1 6.5 8.0 8.5 4.5 3.7 3.6 5.5 5.8 6.0
Note: 1. Fluctuation rate compared to the same term of the previous year
2. LG Economic Research Institute (LGERI) (Dec. 2013)
3. Korea Institute of Industrial Economics and Trade (KIET) (Nov. 2013)
4: Bank of Korea (BOK) (Jan. 2014)
2. Review of Petrochemical Industry and Prospect
[Review of 2013]
In 2013, the D/S of domestic petrochemical (based on 3 major
fields) was expected to be 21.83 million tons, an increase of 2.2%
compared to the previous year while demand was expected to be
10.79 million tons, an increase of 1.7% compared to the previous
year.
Notwithstanding the increase of production in synthetic resin and
increase in operation rate, production was increased with limitations
due to the excessive supply following large-scale capacity addition in
the region for synthetic fiber raw materials.
In spite of slow down in external industry status, decline of
exchange rate in the second half (1H 1,104 Won/Dollar, 2H 1,085
Won/Dollar), and deepening competition of exporting countries, export
showed an increase of 2.5% compared to the previous year but the
synthetic fiber raw material was turned around to declining trend with
the drastic progress in self-efficiency in China (a decline of 5.6%
2014 Asia Petrochemical Industry Conference - Korea
-7-
compared to the previous year). The domestic demand was shown to
make only 1.7% of growth compared to the previous year because of
the impact in reduction of fiber and tire production.
Review of supplies for 3 major fields (Unit: 1,000 tons)
(Data) KPIA (Note) Production is based on sales
[Prospect of 2014]
In 2014, the D/S of domestic petrochemical (based on 3 major
fields) is expected to be 22.35 million tons, an increase of 2.4%
compared to the previous year while demand is expected to be 11.13
million tons, an increase of 3.2% compared to the previous year.
Production lacks new major investment, but it is expected to have
no loss in additional operation from increase of operation rate for
capacity increase, schedule to implement routine maintenance repairs in
the previous year level and others. For new capacity project, there are
EO/EG (40/150, Korea Petrochemical Ind. Co., Ltd., '14.2H), EVA
Country Report
-8-
(200, Samsung Total, ‘14.1Q) and others.
Export is expected to make an increase with the improvement in
export economic conditions, lack of major new capacity addition in the
region, intensifying routine maintenance in spring from major exporting
countries (Taiwan, Japan and others). However, The export of synthetic
fiber raw material that China is quickly moving toward self-efficiency still
encounters difficulty to expect high increasing trend yet.
Domestic demand is likely to make growth in the level of previous
years with the improvement in domestic demand for consumption,
investment and others thanks to the recent economic recovery, such
as, increase in domestic economic growth rate, increase in operation
rate for the frontline industries, such as, automobile, home appliance
and so forth. With the upward adjustment in domestic GDP growth rate
(expect for 3.8% increase with 1.0%p compared to the previous year, the BOK)
following the improvement in major economic indices for recent private
consumption, investment in facilities and construction, export and
others. For some items that are sensitive to the economy, it is
forecasted to have the increase thanks to the increase in production
following the prospect of economic recovery in advanced countries as
well as the base effect of the previous year.
<Trend of fluctuation rate on demand for each year in 3 major fields>
(Data) Korea Petrochemical Industry Association
2014 Asia Petrochemical Industry Conference - Korea
-9-
Trend of fluctuation rate on demand for each year in 3 major fields (Unit: 1,000 tons)
(Data) KPIA
Country Report
-10-
□ Trend of Demand and Supply for each Field
(1) Synthetic resins
[Review of 2013]
In 2013, the D/S of the domestic synthetic resin for production
was 12.73 million tons, an increase of 6.4% compared to the previous
year while the demand was 5.44 million tons, an increase of 6.0%
compared to the previous year.
Review of demand and supply of synthetic resin and prospect (Unit: 1,000 tons)
(Data) KPIA (Note) Production is based on sales
Production was shown to increase with the expansion of
production for HDPE (new capacity addition) and LDPE (facility
improvement), increase of operation rate from export to China in some
products, reduction of routine maintenance and others.
Looking into the operation rate for each key product, LDPE
(annual average of 101%, previous year for 8%p↑) and ABS (annual
average of 86%, previous year for 8%p↑) are at the level higher than
other products while PS (annual average of 80%, previous year for
2%p↓) and PVC (annual average of 87%, previous year for 3%p↓)
showed a decline compared to the previous year due to the influence
of reduction in external export of China and others. For a reference,
the LDPE operation rate was 99.1% in January, 100.7% in March,
2014 Asia Petrochemical Industry Conference - Korea
-11-
101.5% in May, 102.8% in July,
99.1% in September, and
109.9% in November. The ABS
operation rate was 89.7% in
January, 84.2% in March, 87.5%
in May, 83.8% in July, 86.3% in
September, and 80.6% in
November. PS (including EPS)
recorded 66.3% in January,
82.8% in May, 82.3% in July,
81.9% in September, and 79.1%
in November.
Notwithstanding the advancement of China in the market for the
low priced products from Middle East, export showed steady increasing
trend with the sound export of PE and PP to China and Asian
countries, sustaining of share rate and others. However, the export of
PVC and PS that have China advanced for self-efficiency is shown to
decline compared to the previous year.
The domestic demand has shown an increase from expansion of
production and sales for quasi-durable goods (shoes, bags and
others) including home appliances as important durable goods. The
production index of the plastic industry has shown steady increasing
trend since the early part of the year, and with the showing of
increasing trend for each month in major home appliances of
refrigerator, washer and air-conditioner, the production amount in
October 2013 showed an increase of 42.1% compared to the previous
year, or 1 trillion 166.2 billion won. For a reference, accumulated
production amount of October 2013 of major home appliances
(refrigerator, washer and air-conditioner base) was shown for 9 trillion
780.5 billion won (an increase of 12.0% compared to the previous
year).
Country Report
-12-
Production index for domestic rubber and plastic industry (2013)
Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov.
Production index 109.0 95.9 110.7 112.8 113.6 111.8 110.7 99.1 99.1 115.5 110.4
Seasonal adjusted index
110.0 110.9 108.2 109.2 108.7 109.4 108.2 103.6 103.6 107.2 106.0
Ratio of same month of the
previous year
14.7 -6.6 1.8 7.3 4.7 -0.2 2.9 -7.9 -7.9 2.4 -1.5
Ratio to previous month
3.0 0.9 -1.5 1.0 -0.6 0.1 -0.7 -4.9 -4.9 4.3 -3.2
Accumulated
ratio to previous
year
14.7 3.6 2.8 3.9 4.1 3.5 3.3 3.4 2.1 2.1 1.9
(Data) National Statistics Office (Note) 2000 = 100%
[Prospect of 2014]
In 2014, the D/S of domestic synthetic resin is expected to be
13.21 million tons, an increase of 3.8% compared to the previous year
with the demand to be 5.63 million tons, an increase of 3.5%
compared to the previous year.
Notwithstanding the operation of new capacity addition in one
case, production is expected to increase thanks to the expansion of
domestic demand and sales as well as maintaining high operation rate
for export. As for major capacity addition plan, Samsung Total is
expected for 200,000 tons of EVA.
Export is expected to continue its increasing trend with moderation
of competition following lack of new major facilities in the Middle East
and items (PE and PP) not targeted for self-sufficiency in China.
The domestic demand is likely to grow in the GDP growth level
due to the factors of improvement in overall growth for domestic
2014 Asia Petrochemical Industry Conference - Korea
-13-
demand, such as, consumption, investment and others as well as
increase in recovery for production and export in pertinent frontline
industry. For a reference, according to the economic prospect of the
BOK (announced in January 2014), the economic growth rate of 2014
will show the high 3% range (compared to the same term of the
previous year) to continue the growth rate in the level of potential
growth rate. In addition, for the case of automobile industry, one of
the key front industries, production is expected to increase 2.7%
compared to the previous year due to the improvement in export effect
and production condition while information communication devices will
make to 4.8% around smart phone or components. And, display is
expected to grow 2.3% by breaking away from the “-” in the previous
year (KIET, Economic and Industrial Prospect in 2014).
(2) Synthetic Fiber Raw Materials
[Review of 2013]
In 2013, the D/S of domestic synthetic fiber raw materials recorded for
8.06 million tons, a decline of 4.0% compared to the previous year with
demand recorded 4.92 million tons, a decline of 2.3% compared to the
previous year.
Review of demand and supply of synthetic fiber raw material (Unit: 1,000 tons)
(Data) KPIA (Note) Production is based on sales
Production has experienced its reduction for slow down in
Country Report
-14-
production following the downward adjustment of operation rate due to
the excessive supply in the region that was caused by new capacity
projects of China for TPA, CPL and others.
The operation rate showed
worsening trait for profit with the
low rate of operation around
80%, a break-even point in most
of products. For a reference, the
TPA operation rate showed
80.2% in January, 75.2% in
March, 76.9% in May, 78.2% in
July, 83.0% in September, and
81.4% in November.
Export influenced on declining trend for overall export of synthetic
fiber raw material (2 consecutive years of declining trend) due to the
reduction of export to China for the largest export item in synthetic fiber
raw material, TPA.
Thanks to the minus growth or stagnation in production and
export in the frontline industry of fiber field, the domestic demand was
shown to have the declining trend of demand inevitably. The
production for each major fiber (polyester, nylon, and acrylic based)
recorded for 1,461,000 tons, approximately 1% decline compared to
the previous year.
[Prospect of 2014]
In 2014, the D/S of domestic synthetic fiber raw materials is
expected to be 7.94 million tons, a decline of 0.1% compared to the
2014 Asia Petrochemical Industry Conference - Korea
-15-
previous year with the demand to be 4.95 million tons, an increase of
2.3% compared to the previous year.
Notwithstanding the impact of capacity addition in EG and normal
operation of existing facilities, production is expected to continue its
declining trend due to low rate operation following the worsening
external supply conditions for TPA and CPLM. As for major capacity
projects, Korea Petrochemical Ind. Co., Ltd. is preparing to operate
EO/EG (40/150) in the second half in 2014.
Export is expected to continue its declining trend mainly with the
items showing drastic progress of self-sufficiency of China and it is
likely to decline approximately 3% compared to the previous year.
For a reference, during 2013~2014, China is planning to newly
operate TPA for 24 million tons that TPA export is inevitable to decline
for some time and caprolactam (CPL) is expected to cause the supply
in the region and deepening of price competition as it is scheduled to
operate the new capacity addition for up to 700,000 tons this year in China.
For domestic demand, it is expected to convert into increasing
trend compared to the previous year with the market growth in SE
Asia, production increase of carbon fiber, new growth engine, and
others. The fiber production is expected to grow for 3.3% for the year
with 3.0% in the first half and 3.6% in the second half due to the
recovery of domestic demand and expansion of export increasing trend
(KIET, Prospect of Economy and Industry in 2014).
(3) Synthetic Rubber
[Review of 2012]
Country Report
-16-
In 2013, the D/S of domestic synthetic rubber was 1.04 million tons,
an increase of 3.1% compared to the previous year with the demand for
420,000 tons, a decline of 2.2% compared to the previous year.
Review of demand and supply of synthetic rubber (Unit: 1,000 tons)
(Data) KPIA (Note) Production is based on sales
Production showed an increase in production volume with the new
capacity additions and facility improvement, but the operation rate
reflected the slow down in the industry with decline in sales price and
others to record 74%, a decline of approximately 3%p compared to
the previous year. As for major new capacity project, there was a
capacity addition of SBR 110,000 tons of Kumho Petrochemical
(simultaneous operation with NBR Latex, completed in Sep. 2012).
Furthermore, the operation rate of synthetic rubber reflected slow
down in domestic industry that it continued to operate, at lower
operation rate than the previous year in the second half.
Export was shown to increase compared to the previous year due to
the expanded export to SE Asia and India. The BR export to India recorded
43,000 tons up to November 2013, an increase of 86.7% compared to the
previous year based on the accumulation standard, from 23,000 tons in
2012. However, export to China recorded 89,000 tons, a decline of 10.1%
compared to the previous year based on the accumulation standard, due to
the progress in self-sufficiency of supply in China.
2014 Asia Petrochemical Industry Conference - Korea
-17-
The domestic demand was
declined compared to the
previous year due to the
reduction of production in tire
companies, lack of new vehicle
effect following no release of new
domestic models, and stagnated
export with the stagnation in
global automobile market. In
2013, the production of domestic
automobile tires (source: Korea
Tire Association) was 97.97
million, an increase of only 0.3% compared to the previous year.
[Prospect of 2014]
In 2014, the D/S of domestic synthetic rubber is forecasted to be
1.09 million tons, an increase of 4.8% compared to the previous year,
and the demand is expected to be 440,000 tons, an increase of
3.8% compared to the previous year.
Production is expected to be on the rise compared to the previous
year with the upward adjustment of the operation rate in accordance
with full operation of the new capacity addition and expansion of export.
The export is expected to continue its steady increasing trend with
the enlargement of import demand as the demand for tire exchange of
China is anticipated to be generated in full scale from 2014.
The domestic demand is expected to have increase of demand
with the production increase following the increase in replacement
demand for domestic demand of tire and recovery of export.
Country Report
-18-
(4) Export
[Review of 2013]
In 2013, overall petrochemical export in 2013 recorded USD 48.4
billion, an increase of 5.4% compared to the previous year. As per
region, export was increased in China (8.4%), EU (26.8%), and
Southwest Asia (16.5%) while export was declined in the US (△
20.7%), Middle East (△5.3%), and Japan (△6.3%).
Based on the volume, it was increased 5.7% compared to the
previous year with intermediate raw materials (23.7%) and synthetic
resin (7.6%) leading the increasing trend while basic raw materials (△
4.9%) and synthetic fiber raw materials (△5.4%) showing significant
decline. For a reference, the export volume was surveyed for 30.8
million tons in 2013, an increase of 5.7% compared to the previous
year from 29.1 million tons in 2012.
Trend of Export of petrochemical product for each year
(Data) KOTIS
2014 Asia Petrochemical Industry Conference - Korea
-19-
[Prospect of 2014]
Export in 2014 is expected to be USD 50.3 billion, an increase
of 4.0% compared to the previous year. The oil price is expected to
see a slight decline with the increase of supply for non-OPEC crude
oil and slow down in demand factor, but the naphtha is expected to
increase the price due to the supply reduction and demand increase.
For a reference, the naphtha is likely to emerge the strengthening
factors, such as, possibility of reduction in operation rate following
the worsening margin for local and European petroleum companies,
increase of demand for naphtha following the influence of capacity
addition in new splitters in Asia, and so forth.
As for each item, notwithstanding the sustained slow down in
export of synthetic fiber raw materials, due to the increase of supply
in the region, import regulation and others, it is expected to have
moderate increase trend in overall thanks to the recovery trend in
export of synthetic rubber as well as sustained increase in export of
intermediate raw materials.
Country Report
-20-
-21-
Ⅱ.ForCommitteeMeeting
1.GeneralMatters&Raw
MaterialsCommittee
General Matters & Raw Materials Committee
-22-
General Matters & Raw Materials Committee
1. Olefins (Ethylene, Propylene, Butadiene)
ITEM : Ethylene
1) The 2013 Results
The ethylene production was 8,321 Kton which was increased
approximately by 3.4% to the previous year and demand has shown
3.6% of increase as well, due to the increase of export of ethylene.
It shows that the export volume was over 1 MMT from 2012 the
reason why derivatives spread margin was negative and it was impact
on the trouble of derivatives.
Especially, HDPE plant of Daelim Industry that is producing 300KT
was shut down almost for 3 months from March, 2013. This accident
pushed YNCC to change ethylene surplus balance that could make
more exports than the expected. LG Chem which is located at Daesan
successfully started to produce new EVA (140KT) from September 2013
that makes total Korean demand increased than that of 2012.
2) The 2014 Forecast
In 2014, the domestic ethylene production will be almost same as
of 2013’s with 2 cracker T/A schedule from September to November.
However we are focusing on the change of derivatives expansion
2014 that is Samsung Total(EVA), SK(LLDPE, SM), and KPIC(EO, EG) by
almost 8.3% increase in demand. These capacity addition are almost
targeting at Chinese market, and the dependence on the Chinese market is
getting quite deeper. As ethylene producer has to cover the new domestic
demand, total Korean ethylene balance will be much tighter than 2013’s.
2014 Asia Petrochemical Industry Conference - Korea
-23-
ITEM : Propylene
1) The 2013 Results
In 2013, the propylene capacity increased to 6,841 Kton due to
the new operation of GS Caltex RFCC. But, domestic production
recorded same level of 2012 due to the lower operation rate of PP
Makers and weak demand.
Export of propylene maintained approximately 1,208 Kton while
import volumes doubled up to 434 Kton by expansion of AN unit(
Dongsuh PC, 245Kton ).
2) The 2014 Forecast
The domestic supply in 2014 is expected to stay at 6.643 Kton,
the increase of 1.1% compared to the previous year while domestic
consumption will be 5,582 Kton and export expected down to 1,061
Kton. The year-end capacity will be expanded to 6,911 Kton according
to new expansion of LG chemical plant.
ITEM : Butadiene
1) The 2013 Results
There was no expansion among Korean Butadiene makers in 2013
and export volume decreased by 21.7% due to the lull operating rate
of synthetic rubber plants in China. Domestic consumption was
increased by 3.9% that was mainly caused by new start up of Kumho
SBR plant in 1Q 2013.
General Matters & Raw Materials Committee
-24-
2) The 2014 Forecast
The domestic butadiene production will decline by 13.9% in 2014
due to T/A of 2 BD makers and export also shows consecutive
reduction. the domestic demand also will be shrunk by relatively low
operation of BR / SBR / ABS plants which is affected by overall low
overseas demand growth.
(Unit : 1,000MT)
2012 20132014
(Prospect)
Ethylene
Supply
Production 8,049 8,321 8,359
Import 131 145 280
Total 8,180 8,465 8,639
Demand
Domestic 7,095 7,351 7,962
Export 1,033 1,120 677
Total 8,128 8,471 8,639
Year-end Capacity 8,350 8,350 8,350
Propylene
Supply
Production 6,119 6,128 6,206
Import 243 434 437
Total 6,362 6,562 6,643
Demand
Domestic 5,347 5,362 5,582
Export 1,216 1,208 1,061
Total 6,563 6,570 6,643
Year-end Capacity 6,591 6,841 6,911
Butadiene
Supply
Production 1,331 1,314 1,131
Import 359 382 220
Total 1,691 1,696 1,351
Demand
Domestic 1,421 1,477 1,283
Export 284 223 68
Total 1,705 1,699 1,351
Year-end Capacity 1,322 1,322 1,322
2014 Asia Petrochemical Industry Conference - Korea
-25-
2. Aromatics(Benzene, Toluene, Xylene)
ITEM : Benzene
(Unit : 1,000MT)
2012 20132014
(Prospect)
Supply
Production 4,722 4,899 5,234
Import 173 65 75
Total 4,895 4,964 5,309
Demand
Domestic 3,329 3,466 3,503
Export 1,566 1,498 1,806
Total 4,895 4,964 5,309
1) The 2013 Results
With the increase in operation rate following the new capacity
addition of MDI, SM and other D/S (demand and supply) and increase
in SM demand, the BZ demand was increased and the spread was
improved (compared to 2012, +116U$/MT). In particular, the BZ import
increase of China supported outstanding market status in the second
half. The export to the US by SE Asia has declined due to the BZ
supply increase following the worsening US phenol market status and
increase of operation rate of the refinery/reformer.
2) The 2014 Forecast
The BZ production is expected to increase in 2014 following the
new capacity project of the local PX plants, and with respect to the
D/S aspect, it is expected to have surplus of supply following the
supply decrease from the routine maintenance for SM/phenol and
lackadaisical market status for phenol and CPL in the first half.
Accordingly, the spread is likely to decline compared to 2013. Due to
General Matters & Raw Materials Committee
-26-
the import reduction with the prospect of increase in SM operation rate
of the US and expansion of BZ production by China, the export
increase to the US by Northeast Asia is expected.
ITEM : Toluene
(Unit : 1,000MT)
2012 20132014
(Prospect)
Supply
Production 3,188 3,109 3,171
Import 153 202 200
Total 3,341 3,311 3,371
Demand
Domestic 2,243 2,356 2,727
Export 1,084 955 644
Total 3,327 3,311 3,371
1) The 2013 Results
Due to the strong PX market status all year long, the TDP
operation rate had been maintained in high rate, and accordingly, the
TOL demand was increased. The demand for gasoline blending use
had steady growth in the 4% range in 2013, but it showed the trend
of steady increase as the feedstock for PX production in accordance
with the PX/PTA capacity addition. The Naph/TOL Spread of 2013
maintained high level of 250U$/MT.
2) The 2014 Forecast
The first half of 2014 is expected to have the supply to be long
with the influence of new capacity addition of reformer/cracket in
2013~ 2014 in China coupled with the reduction of demand for
gasoline in Japan to increase the TOL production among other things.
2014 Asia Petrochemical Industry Conference - Korea
-27-
In particular, following the operation rate for MX production demands
thanks to the decline in the PX economic feasibility, there is a showing
of TOL surplus with the increase in TOL production, and accordingly,
the spread has been reduced compared to 2013 (average of spread in
January - March is U$166/MT). The second half of 2014 is expected
to have the local TOL supply to be tightened due to the new capacity
addition of the PX plants.
ITEM : Mixed Xylene
(Unit : 1,000MT)
2012 20132014
(Prospect)
Supply
Production 6,628 6,316 7,235
Import 995 1,832 1,399
Total 7,623 8,148 8,634
Demand
Domestic 7,086 7,539 8,128
Export 624 609 500
Total 7,710 8,148 8,628
1) The 2013 Results
Notwithstanding the fact that CPC of Taiwan declining its MX
purchase volume, the spot volume for US MX excluding the term has
significantly decreased compared to the past due to the MX demand
from new PX plant S/U for Hyundai Cosmo, Dragon Aromatic of China
and others as well as no arbitrage between the US and Asia that the
overall MX supply has been tight. Due to the price structure that is
linked to the market situation for PX/PTA, the drastic price increase for
MX independently had certain restriction, but the PX has maintained
solid market status to enable MX to maintain stable spread of an
average of 300$ or more per year.
General Matters & Raw Materials Committee
-28-
2) The 2014 Forecast
The first half is expected to reduce the MX demand following the
decrease of PX operation rate from worsening PX/PTA economy and
suspension of MX increase/PX operation in Japan. In addition,
following the declining PX economy, the surplus MX of the PX
production companies is re-sold in the market that the balance of
surplus is expected to be expanded.
Thanks to the impact on new PX project operation in the second
half, it is expected to encounter tight situation for demand and supply,
but there is a probability of having the MC market status change in
accordance with the level of recovery in the PX-PTA market
ITEM : Para Xylene
(Unit : 1,000MT)
2012 20132014
(Prospect)
Supply
Production 5,435 5,822 6,308
Import 775 861 500
Total 6,210 6,683 6,808
Demand
Domestic 4,008 3,658 3,506
Export 2,200 3,025 3,302
Total 6,208 6,683 6,808
1) The 2013 Results
With the new increase of PTA, the PX demand was increased in
2013, but due to the delay in new increase for the PX plants, the PX
supply increase did not reach to the increase in the PTA demand that
the balance of D/S was tight throughout the year. Because of the
2014 Asia Petrochemical Industry Conference - Korea
-29-
foregoing, the spread exceeded 500U$/MT. While the market
uncertainty was expanded with the frequent breaks of ACP and
movement of joint offer down by PTA makers, 4Q Tenglong PC
(800KTA) was in operation in 4Q to have the spread declined to below
500U$ or less.
2) The 2014 Forecast
Prior to the spring season, the Chinese PTA company has
maintained high rate of operation in order to maintain the fund turnover
and market influence, but after the spring season, the PX price
plummeted in accordance with the macro factors in economic index
and frigid fund in China, the PTA operation adjustment following the
low rate of operation for polyester, and new operation of Satorp PX in
March. It is also expected to have decline in the PX price and spread
yet again due to the economic decline with new intensified increase in
PX after Q3 although Q2 is expected to support the PX price with the
increase in operation rate following the peak season for the polyester
and new capacity addition for PTA as well as operation adjustment of
the PX plants.
General Matters & Raw Materials Committee
-30-
ITEM : Raw Material (Naphtha)
(Unit : 1,000MT)
2012 2013 2014(P)
G.R G.R
Supply 23,222 23,431 0.9% 24,713 5.5%
Supply Import 20,195 23,210 14.9% 22,910 -1.3%
Total 43,417 46,641 7.4% 47,623 2.1%
Crackers 24,315 25,320 4.1% 25,100 0.9%
Demand* Reformers 15,674 17,071 8.9% 18,523 8.5%
Others 3,428 4,250 24.0% 4,000 -5.9%
1) The 2013 Results
In 2013, the domestic naphtha consumption grew at the rate
of around 6% due to the increase of naphtha cracking (4.1%) and
high operation rate of reformers (8.9%). There was less maintenance
of naphtha cracking facilities (SK, KPIC), therefore the use of naphtha
is increased. The import of naphtha volume also increased to 23,210
Kton by relatively healthy margin of reformers on 1H 2013.
2) The 2014 Forecast
With a few of routine maintenance schedule in naphtha cracking
facilities, naphtha consumption in 2014 will be decreased to 25,100
Kton compared to previous year in cracking sector.
In reforming side & refinery production, even though it is
complicated to expect market situation, it is generally understood that
naphtha will be produced more from condensate splitters and
reformer’s demand will increase as well. Samsung-Total condensate
splitter (150 Kbd) will be on stream in June and SK Condensate
splitter (100 Kbd) is expected to start 2H 2014.
-31-
2. PolyolefinsCommittee
Polyolefins Committee
-32-
Polyolefins Committee
ITEM : LDPE (including L-LDPE, EVA)
(Unit : 1,000MT)
2012 20132014
(Prospect)
Supply
Production 2,068 2,178 2,648
Import 103 110 110
Total 2,171 2,288 2,758
Demand
Domestic 1,117 1,250 1,323
Export 1,054 1,038 1,435
Total 2,171 2,288 2,758
Year-end Capacity 2,074 2,248 2,843
1) The 2013 Results
Total LDPE production including LLDPE has been slightly increased
by 5.3% compared with 2012 up to 2,178 thousand ton. The import
quantity of LDPE was also somewhat increased.
In the domestic market, especially the demand of EVA solar cell
and LLDPE general purpose film have been increased. For last 3
years, the average rate of domestic demand growth was 5.8%. But in
the export demand, there was no big change compared to 2012.
Hanwha chemical expanded EVA plant by 34KT and LG Chemical
expanded EVA plant by 140KT in 2013.
2) The 2014 Forecast
Production of 2014 is expected to be 2,648Kton which is
increased by 470Kton. It is mainly because of the expansion of
2014 Asia Petrochemical Industry Conference - Korea
-33-
Samsung Total and SK Global Chemical.
The new EVA plant of SamSung Total is planned to start to
operate from 2014. 1Q and the new LLDPE plant of SK Global
Chemical is planned to start to operate from 2014. 2Q.
Domestic demand is expected to grow to 1,323Kton which is
increased by 5.8%. Export quantity is also expected to increase by
38.2% to 1,435 KT due to the balance of production and domestic
demand.
ITEM : HDPE
(Unit : 1,000MT)
2012 20132014
(Prospect)
Supply
Production 2,152 2,208 2,275
Import 32 38 45
Total 2,184 2,246 2,320
Demand
Domestic 918 883 909
Export 1,236 1,392 1,455
Total 2,154 2,275 2,364
Year-end Capacity 2,575 2,575 2,575
1) The 2013 Results
In 2013 Korea’s HDPE supply was estimated at 2,246KT up by
2.8% year-on-year, and the demand was at 2,275KT up by 5.6%
year-on-year.
With new capacity additions coming on-stream, total supply rose
by 56KT despite the decrease in production due to accidents in some
Polyolefins Committee
-34-
plants.
Domestic demand dropped by 35KT due to economic downturn
whereas export rose by 156KT due to recovered demand led by
developed countries’ economic recovery and steady export kept to
China/Asia despite competition against lower-feedstock-based Middle
Eastern origin products.
2) The 2014 Forecast
In 2014 Korea’s HDPE supply is forecasted at 2,320KT up by
3.3% year-on-year, and the demand is at 2,305KT up by 1.3%
year-on-year.
With no new capacity additions, total supply is forecasted at
2,275KT up by 3.0% year-on-year due to reduced S/D and
stabilization of latest new capacity additions. Domestic demand is
forecasted at 909KT up by 2.9% year-on-year in line with GDP growth
driven by recovered investment and consumption.
Export is forecasted at 1,455KT up by 4.5% year-on-year due to
limited new capacity additions from Middle East and steady export of
Korean origin product to China.
2014 Asia Petrochemical Industry Conference - Korea
-35-
ITEM : P P
(Unit : 1,000MT)
2012 20132014
(Prospect)
Supply
Production 3,874 4,038 4,215
Import 23 35 38
Total 3,897 4,073 4,253
Demand
Domestic 1,521 1,555 1,614
Export 2,376 2,517 2,638
Total 3,897 4,070 4,252
Year-end Capacity 4,240 4,240 4,240
1) The 2013 Results
In 2013, PP prices have generally shown stable-to-firm trend
($1,392~$1,537) in line with relatively firmer crude oil price and
feedstock prices. Overall PP industry in Korea recorded high rate of
production increase (4.2%) due to new expansion and improved
operation rate.
In 2013, Chinese PP production capacity increased by 8.1% to
15million ton and production volume increased by 10.4% to 12.4million
ton, consequently Chinese PP self-sufficiency rate increased up to
72% (2.6%p↑ year on year) due to slowdown of demand increase
and continued production increase rate. (Demand in 2013 was
17.2million ton, 4.6%p↓ year on year)
2) The 2014 Forecast
In 2014, Chinese GDP growth rate is expected to be 7.6% which
is 0.1% lower than 2013. In future, the China will develop in priority
energy reduction & environmental protection industries and organize
Polyolefins Committee
-36-
infrastructure like road network expansion necessary for the growth of
inland province in terms of investment, at the same time will continue
to grow by promotion of consumption.
Chinese PP industry in 2014 is expected to expand heavy supply
due to new capacity expansion exceeding 3million ton (out of 3million
tone, about 2milliion toe will come from CTO, MTO). In case of
demand increase rate, it would stay at previous year level (about 6%)
so that it is expected to keep decreasing import volume.
-37-
3.StyrenicsCommittee
Styrenics Committee
-38-
Styrenics Committee
ITEM : P S
(Unit : 1,000 MT)
2012 20132014
(Prospect)
Supply
Production 660 665 670
Import 30 30 30
Total 690 695 700
Demand
Domestic 232 233 235
Export 458 462 465
Total 690 695 700
Year-end Capacity 808 808 808
* EPS excluded
1) The 2013 Results
Affected by fluctuation of SM price and SM regional price
difference, profitability of makers is low over the previous year. In
particular, the depreciation of the Japanese yen worsens local prices
are competitive in the market, export volume to Japan reduced. On the
other hand, due to Korea-Turkey FTA, the total export volume to
Turkey has increased.
2) The 2014 Forecast
The possibility of reducing for the U.S. quantitative easing leads to
instability of financial market. And the week demand were worsened by
the low competitiveness of imported product affected by the currency
value deterioration of emarging economies in Southeast Asia. In Brazil,
Thank to holding World cup, the demand for PS is expected to
increase. PS maker in korea is expected to maintain similar level of
operating rate over previous year.
2014 Asia Petrochemical Industry Conference - Korea
-39-
ITEM : A B S
(Unit : 1,000 MT)
2012 20132014
(Prospect)
Supply
Production 1,446 1,640 1,694
Import 6 5 5
Total 1,452 1,645 1,699
Demand
Domestic 325 420 442
Export 1,126 1,224 1,257
Total 1,451 1,635 1,699
Year-end Capacity 1,625 1,694 1,726
1) The 2013 Results
In spite of continued global economic recession, ABS demand
was increased by 17% comparing with 2012. It is expected that some
portion of new demand came from small household goods.
But some part of demand increase is still under investigation.
Export volume was also increased by 11% in the same period due to
rising export volume to new market in Middle East, Eastern Europe and
Brazil. ABS supply was also increased as the demand increased.
2) The 2014 Forecast
Overall ABS demand is generally forecasted to be in the similar
level of 2013. However, there are some uncertainties in the market due
to global economy, energy price and political instability. Particularly,
the demand change in China will be a big challenge in 2014.
Styrenics Committee
-40-
ITEM : S M
(Unit : 1,000 MT)
2012 20132014
(Prospect)
Supply
Production 2,802 2,725 2,984
Import 804 948 880
Total 3,606 3,673 3,864
Demand
Domestic 2,376 2,406 2,430
Export 1,253 1,266 1,434
Total 3,629 3,672 3,864
Year-end Capacity 2,870 2,870 3,220
1) The 2013 Results
SM production of 2013 in Korea decreased by 2.7% year on year
to 2,725KT mainly on a SM plant trouble. As a result, imports jumped
up by 18% year on year to 948KT, while exports inched up by 1%.
Domestic demand grew by 1.3%, or 30KT year on year to 2,406KT.
2) The 2014 Forecast
The year-end SM capacity of Korea will increase by 350KT on the
restart of SKGC EB-SM unit, which has stopped the production for
several years.
As a result, SM production would increase by 9.5% to 2,984KT.
However, domestic demand is forecasted to inch up by 1% as China
market’s low growth rate will limit the export from Korea. From the
increase of difference between domestic production and demand,
import will decrease, and export will increase year on year.
-41-
4.PVCCommittee
PVC Committee
-42-
PVC Committee
ITEM : P V C
(Unit : 1,000MT)
2012 20132014
(Prospect)
Supply
Production 1,405 1,370 1,336
Import 103 77 80
Total 1,508 1,447 1,416
Demand
Domestic 834 721 726
Export 674 726 690
Total 1,508 1,447 1,416
Year-end Capacity 1,445 1,468 1,475
1) The 2013 Results
The first half of 2013, until before Chinese New Year, PVC price
was steadily raised up to a high level.However, due to high PVC
inventory in China, Carbide PVC poured out abroad and eroded PVC
price until the end of April right after the holiday.
From May to middle based on October, PVC price was generally
steady at $990/MT~$1020/MT CFR China, and there was a little
fluctuation. After that, due to poor seasonal demand ahead of winter,
the price was fluctuated once again until the end of December.
When it comes to domestic market in South Korea, despite of
economic recession, demand for window profile was increased due to
moderate growth of housing construction.
2) The 2014 Forecast
Northeast Asia demand growth for PVC has moderated less-than
2014 Asia Petrochemical Industry Conference - Korea
-43-
expected level of 3.0% in 2012, and 3.5% in 2013. The less bullish
outlook in the global and Chinese economies is expected to lead to
slower demand growth for PVC over the next two years until 2015.
Domestic demand in South Korea would grow 0.5%-1.5%/year
during 2014 and overall PVC market expected to be stagnated due to
depressed market situation in construction and housing fields.
ITEM : V C M
(Unit : 1,000MT)
2012 20132014
(Prospect)
Supply
Production 1,488 1,480 1,470
Import 3 14 -
Total 1,491 1,494 1,470
Demand
Domestic 1,405 1,370 1,370
Export 90 95 100
Total 1,495 1,465 1,470
Year-end Capacity 1,610 1,640 1,640
1) The 2013 Results
After having some loss in VCM capacity in Asia during last two
years, tight supply situation has been maintained. Although there was a
drop in Asian VCM market price due to bearish PVC market in 2Q,
overall in 2013, Asian VCM price had shown a upward trend on the back
of tight supply and cost push from higher feedstock price, especially C2.
In Korea, domestic demand mostly accounted for self-consumption
to produce PVC. There was more import volume than usual, but it was
mainly due to temporary supply/demand imbalance during a maker’s
maintenance period. For total export volume of VCM, there was no
PVC Committee
-44-
significant difference in 2013 compared to the last year.
2) The 2014 Forecast
The Asia market balance will be more tight during 1Q of 2014
since several VCM makers are scheduled to have maintenances on
their plants at the same time in March. As PVC market is under
downward pressure, over mid $900/MT CFR level of VCM is likely to be
corrected but taking high ethylene price and fundamentally tight VCM
balance into account, the possibility of significant drop will be limited.
In Korea, there is no planned capacity of VCM-PVC addition in
2014. Unless PVC operation is adjusted significantly with continuously
weakening PVC demand, total domestic demand and export volume are
expected to be the same level with last year’s figures.
-45-
5.SyntheticRubberCommittee
Synthetic Rubber Committee
-46-
Synthetic Rubber Committee
(Unit : MT)
2012 20132014
(Prospect)
SBR
Capa. (Year-end) 626 626 626
Supply
Production 569 598 600
Import 48 67 67
Total 617 665 667
Demand
Domestic 220 207 213
Export 342 384 454
Total 562 591 667
BR
Capa. (Year-end) 516 516 516
Supply
Production 443 452 460
Import 22 17 17
Total 465 469 477
Demand
Domestic 143 133 137
Export 300 312 340
Total 443 445 477
* SBR(E-SBR+S-SBR) / BR (HBR + LBR)
1) The 2013 Results
As of recession in the U.S. and the EU, slowdown growth of
global tire market slowdown growth was continued in 2013
Due to natural rubber oversupply in 2013, synthetic rubber market
price continued to fall
In emerging countries including Korea, the BR capacity was
expanded(BR 673KT, SBR 343KT, SSBR 620KT), so supply of the
synthetic rubber increased about 4.3%.
2013 Asia Petrochemical Industry Conference - Korea
-47-
Due to increase of rubber demand in china and export to US,
the export amount grew up 9% in Korea
The demand of SR was decreased due to the U.S. quantitative
easing in the last quarter.
2) The 2014 Forecast
Global rubber demand is forecasted to reach 27.7 million metric
tons in 2014, and Global synthetic rubber demand is expected to grow
by 3.8 percent in 2014.
BD supply balance will be good. The BD demand growth will be
limited, because operation rate of the synthethic rubber plant will be
decreased. The demand will be increased by 3%, but BD supply will
be increased by 7%.
Uncertainty from European credit issue & Chinese low growth may
hold demand of synthetic rubber.
In 2014, Korea will have a new additional supply (BR 30KT)
The Global market will be more competitve due to a new
additional supply in 2013~2014 (BR 975KT, SBR 423KT, SSBR 620)
With EU labeling regulation, Eco Tire market and needs for
S-SBR will be increased gradually. New supply plans are focused on
SSBR and Nd-BR except emerging countries.
Synthetic Rubber Committee
-48-
-49-
6.SyntheticFiberRaw Materials
Committee
Synthetic Fiber Raw Materials Committee
-50-
SyntheticFiberRawMaterialsCommittee
ITEM :AN
(Unit:1,000MT)
2012 20132014
(Prospect)
Supply
Production 578 730 768
Import 113 101 78
Total 691 831 846
Demand
Domestic 498 534 556
Export 201 306 292
Total 699 840 848
Year-end Capacity 605 850 850
1) The 2013 Results
Comparing with 2012, total demandof AN in Korea was increased
by 7% and reached to 534KT.
Derivative-wide, AN demand from acrylic fibre was 54KT,
recording 17% of increase from the last year which was resulting from
upswing in exports and carbon fibre expansion.
On the other hand, AN demand from ABS resin sector was
366KT, recording 5% of increase from 2012 due to export market
diversification and ABS expansion. In the mean time, AN supply also
has reached to 730KT, recording 26% of increase from 2012,
reflecting new 245KT line of Tongsuh.
2) The 2014 Forecast
Demand from AF will be expected to reach at 55KT which is
similar to last year. ABS demand will be forecasted to narrow range of
2014 Asia Petrochemical Industry Conference - Korea
-51-
increase, reach at 372KT.
Total domestic demand of AN will be reached to 556KT, by 4%
increase from the last year by other demand sector
Domestic production will be increased by 5% and reached at
768KT.
Import will be expected to be decreased by 23% and touched at
78KT by increased domestic production.
Accordingly, total supply would be expected to record 846KT in 2014.
ITEM :Caprolactam
(Unit:1,000MT)
2012 20132014
(Prospect)
Supply
Production 264 248 217
Import 36 33 32
Total 300 281 249
Demand
Domestic 267 281 249
Export 33 0 0
Total 300 281 249
Year-end Capacity 270 270 270
1) The 2013 Results
Production rate of CPLM in Capro was 100% in Korea. Production
is decreased by 6.0%
Synthetic Fiber Raw Materials Committee
-52-
2) The 2014 Forecast
The demand of CPLM was decreased by 11.3%
ITEM :EG
(Unit:1,000MT)
2012 20132014
(Prospect)
Supply
Production 1,180 1,152 1,228
Import 454 466 442
Total 1,634 1,619 1,670
Demand
Domestic 1,180 1,166 1,142
Export 441 468 520
Total 1,621 1,634 1,662
Year-end Capacity 1,340 1,340 1,525
1) The 2013 Results
Domestic polyester producers in Korea had struggled with both of
poor margin and lackluster demand in the textile industry. Market
fundamentals weakened as polyester margin collapsed, leading to a
decrease of MEG demand by 1% to 1,166KT compared with 2012.
MEG demand was subdued by decreasing operation rate in
polyester plants because of not only growing polyester filament imports
but also dropping orders from oversea garment buyers. Some of
polyester fiber makers did not run their plants any longer due to cost
burden. For instance, IKP, or Indo Korean Petrochemical found in 2009
and Star chemical found in 2011, had all stopped their operation due
to huge losses.
Accordingly, domestic buyers preferred to buy import products with
2014 Asia Petrochemical Industry Conference - Korea
-53-
cost competitiveness and thus MEG import had risen from 38% to 40%
compared with 2012. The volume of import products was 466KT, which
was up by 12KT(3%) compared with the previous year. Export from
Singapore and Middle-east, the main exporting countries, fell slightly,
but import from Japan increase up to 700% compared with 2012. MEG
surplus in Japan was regarded to flow in to Korean instead of China.
On MEG production front, domestic manufacture fell by 2% to
1,152KT in 2013. Lotte chemical corp. shut their three plants down (in
Yeo-su, Dae-san) due to catalyst change, which led to decrease of
MEG production. The production of HPEO was increased as the market
of EO derivatives was relatively bullish, which generated less MEG for
the market.
Despite of reduced production, diminishing demand affected
enlarging export portion. Korean MEG export in 2013 grew 9% to
468KT compared with 2012. The export to non-china made up 2% of
total export in 2012, but all MEG export coming from Korea was
heading to China in 2013, which shows that concentration on China
market was getting more intensified
2) The 2014 Forecast
In 2014, it is forecasted that the operation rate of polyester
plants in Korea will continue to be low, compared the previous year.
Although recovering export to the advanced countries will be foreseen
and the demand of polyester will grow in accordance with domestic
consumption, the import of polyester products will maintain its
increasing rate.
Thus, overall operation rate of polyester plants holding the level
of the previous year is forecasted. The import of polyester filaments in
Synthetic Fiber Raw Materials Committee
-54-
2013 was 187KT, increased by 27% over the previous year, and
continuously growing in import rate is estimated in 2014 as well.
Overall demand on polyester raw material in 2014 is forecasted to
be relatively lower than the previous year, taking into account
decreasing plans of the operation rates for some polyester plants in
2014 due to poor margins.
Meanwhile, production is expected to reach the level of 1,230KT,
up by almost 80KT over a year ago. No MEG plant in Korea has
announced to plan S/D in its plants except #3 plant (160K) of Lotte
chemical in yeosu in 2014. Furthermore, new plant in Ulsan will add
new MEG in domestic market presumably starting from 4Q.
Consequentially, growth in production by 7% compared to 2013 is
anticipated. The surplus resulted from decreasing in domestic demand,
along with increasing product in manufacturing is predicted to affect
growing sale in export. 520KT of export is foreseen, which is up by
almost 10% year on year.
ITEM :TPA
(Unit:1,000MT)
2012 20132014
(Prospect)
Supply
Production 6,219 5,874 5,824
Import 2 0 0
Total 6,221 5,874 5,824
Demand
Domestic 2,947 2,915 3,024
Export 3,274 2,959 2,800
Total 6,221 5,874 5,824
Year-end Capacity 6,790 6,790 6,790
2014 Asia Petrochemical Industry Conference - Korea
-55-
1) The 2013 Results
Production rate of TPA was decreased by 5.5%, Capacity addition
of China.
2) The 2014 Forecast
TPA production rate was decreased by 1.1%, due to Chinese TPA
self-efficiency rate increased up.
Synthetic Fiber Raw Materials Committee
-56-
-57-
7.ChemicalsCommittee
Chemicals Committee
-58-
Chemicals Committee
ITEM : 2-Ethyl Hexanol
(Unit : 1,000MT)
2012 20132014
(Prospect)
Supply
Production 395 377 370
Import 20 47 48
Total 415 424 418
Demand
Domestic 350 348 363
Export 88 75 86
Total 438 423 449
Year-end Capacity 400 400 400
※ Production is Shipment, Demand/Domestic is included self consumption
1) The 2013 Results
In the midst of the global economic recession and weak demand
in 2EH downstream, 2EH profitability has drastically worsened due to
the rapidly increased 2EH supply caused by the operation of new 2EH
plants in China.
In contrast to the firm international price of the raw material C3,
the international price of 2EH has constantly gone down to $1,415/MT
at the end of 2013 since it reached its peak at $1,715/MT on
September, 2012. Consequentially, the C3-2EH spread has steadily
narrowed and temporarily recorded negative spread, the 2EH market
has turned to a deficit.
2) The 2014 Forecast
The opeartion of series of new 2EH plants in China started in
2013 is expected to reach its peak in 2014 (total production capacity
2014 Asia Petrochemical Industry Conference - Korea
-59-
2,100KT/year), which turn the market into chronic oversupply conditions
in Asia.
In 2014, The weak demand in 2EH downstram will be the same
as last year. Although the present strong tendency of C3 price is
moderated if China’s new C3 plants which new method(MTO, CTO,
PDH) has been applied to proceed as scheduled, the 2EH price is
expected to be staying at current price level ($1420/MT) by the
absence of self-rising factor.
We prospect that continuous deterioration in 2EH profitability is a
inevitable situation in 2014.
ITEM : Phthalic Anhydride
(Unit : 1,000MT)
2012 20132014
(Prospect)
Supply
Production 382 382 380
Import 1 1 1
Total 383 383 381
Demand
Domestic 185 185 185
Export 198 198 196
Total 383 383 381
Year-end Capacity 340 340 340
1) The 2013 Results
The price spread between PA and OX has been gradually
narrowed over the year which cut down the profit of manufacturers.
Also, producers had difficulties to clear the inventory because of low
operating rates of PA users due to global economic downturn.
Chemicals Committee
-60-
2) The 2014 Forecast
Production rates will be lowered because of the maintenance
scheduled from makers' side and the depressed profitability in YR
2013. However, YR 2014 seems to be stablized when the market
started to be recovered from beginning of the year and the profitability
is speculated to be reinstated to YR 2012 level.
2014 Asia Petrochemical Industry Conference - Korea
-61-