Impact of Petroleum Pricing. Raw Material Market Dynamics for Metal Coatings

Similar documents
Fundamentals of Petrochemical Industry

Alcohols to Hydrocarbons (ATH)

THE CHANGING WORLD OF RAW MATERIALS: IMPACT OF ADHESIVES AND COATINGS. Ingrid Brase

Petrochemicals: Opportunities and Challenges

Total chemical production

Investment Planning of an Integrated Petrochemicals Complex & Refinery A Best Practice Approach

May Feedstock Disruptions in Chemicals chains necessitate business model innovation

Egyptian Petrochemicals Industry. A Prospect for the Future LOGO

Replacement Tubes for Gillian Gas Detection Pumps

Europe s Largest. Frank Rouwnes. Chemical Cluster

The Petrochemical Industry From Middle Eastern Perspective?

Light Olefins Market Review. Bill Hyde, Senior Director Olefins and Elastomers Foro Pemex Petroquimica June 7, 2012

Opportunity in Map Ta Phut Retrofit Knowledge Sharing Session. February 18, 2016

Petrochemicals Global Trends & Opportunities for Investment in India. A N JHA, Executive Director ( Petrochemical- Project )

CONTENTS. Chapter 1 Industrial Catalysts. Chapter 2 The First Catalysts

EXPLOSION-PROOF MOTORS SINGLE PHASE

Meeting R. Janssens

alephtrading.com Aleph Trade Path to the Top

Prospects for the Basic Petrochemical Value Chains

Feedstock Challenges and Innovative Routes to Feedstock

Refining/Petrochemical Integration A New Paradigm. Anil Khatri, GTC Technology Coking and CatCracking Conference New Delhi - October 2013

Filtration efficiency: 99% or more HEPO2element

Issue One. Chemical Compatibility Guide

Abu Dhabi International Downstream Summit 2017 Downstream optimization: role of technology, integration and industrial gases. Dr.Ch.

Mr. Joseph C. Gentry. Director, Global Licensing GTC Technology US, LLC USA

Excellence in Petrochemicals. Dr. Albert Heuser President January 20, 2010

Filtration efficiency: 99% or more

Downstream Petroleum Sector The Growing Prominence of Asian Refining

Supporting Information

Competitiveness of sugar cane ethanol derivatives. November 2010

KBR Technology Business

Colorimetric Gas Detector Tube System US Dollar Price List

Marc Laughlin Associate Director, Methanol & Acetone for the Americas June 5, 2013

Synonym(s) ) Chlorine, liquefied/gas. Ammonia, Gasoline, natural 7300 (gasoline) Hydrogen gas. Phosgene

Paramount Chemical Guide

West Texas Oil vs NYMEX Natural Gas ($ / MM btu) Jul-08. Jan-07. Jan-05. Jan-08. Jan-09. Jan-06. Jan-10. Jul-07. Jul-05. Jul-10. Jul-06.

INDIAN CHEMICAL COUNCIL TAX PROPOSAL FOR UNION BUDGET TRU

Pressure switch FF 4 Approval acc. to ATEX EN For mining and chemistry

West Texas Oil vs NYMEX Natural Gas ($ / MM btu) Jul-08. Jan-07. Jan-05. Jan-08. Jan-09. Jan-06. Jan-10. Jul-07. Jul-05. Jul-10. Jul-06.

Global Olefins Review

Refinery & Petrochemical Integration- An IOCL Perspective

PEP Review METHYL TERTIARY BUTYL ETHER PRODUCTION FROM STEAM CRACKER C 4 STREAM By Syed N. Naqvi (December 2012)

Monthly Report on the Corporate Goods Price Index ( Preliminary Figures for October 2014 )

New Catalytic Process Production of Olefins

IHS Petrochemical Outlook

Tank Truck Product Integrity Protection Guidelines 4 th Edition, Revision 1 August 27, Normal Alpha Olefins Polyalphaolefins

INVESTOR PRESENTATION

PRESENTATION TO FOURTH IEA-IEF-OPEC SYMPOSIUM ON ENERGY OUTLOOKS

A snapshot of today s (low oil) petrochemical industry.

World crude oil exports by country, thousand barrels daily

The Game Has Changed The Influence Of Shale Development On The Global Petrochemical Industry

INTRODUCTION Enabling Iran s Future Through Partnership and Technology

Application Data Sheet. Chemical Compatibility Chart. IND-AS EN-01 (May, 2014) Metals Plastics Seals KEY. Good. Fair. Ethylene Propylene.

Mathew George Indian Oil Corporation Ltd. Global Propylene & Derivatives Summit Houston 2014

Refining/Petrochemical Integration-A New Paradigm

Thursday, March 6, 2014 Houston, TX. 8:30 9:40 a.m. AN ECONOMIST S-EYE VIEW OF THE ENERGY INDUSTRY: HYDROCARBON HAT TRICK

Refining/Petrochemical Integration-A New Paradigm Joseph C. Gentry, Director - Global Licensing Engineered to Innovate

Table C 15. TAC Emissions Summary and Ambient Air Impact Concentrations. FCA Mack Avenue Assembly Plant Update February 2019

CHEMSYSTEMS. Report Abstract. Petrochemical Market Dynamics Feedstocks

GTC TECHNOLOGY WHITE PAPER

Wim Van de Velde, Director of Marketing, Plastic Additives business

SCOPE OF ACCREDITATION TO ISO/IEC 17025:2005

Petrochemical Industry

Presented by: Bob Berkley. The Association of Modified Asphalt Producers

Schwechat Refinery Visit

Petrochemical Downstream in Saudi Arabia

PROCESS ECONOMICS PROGRAM SRI INTERNATIONAL Menlo Park, California

STAR process technology Robust on-purpose propylene production technology

Module8:Engine Fuels and Their Effects on Emissions Lecture 36:Hydrocarbon Fuels and Quality Requirements FUELS AND EFFECTS ON ENGINE EMISSIONS

Indian Oil Corporation Limited (IOCL)

Selection of DODGE E-Z KLEEN Polymer and Stainless Steel Housed Ball Bearings. P = (X x F R ) + (Y x F A ) F A C o

Florida s Pollutants Tax on the production or importation of petroleum products, perchloroethylene, solvents, ammonia, chlorine, and pesticides.

Seeing is believing:

SERIE 2T SERIES 3T ASTM - A216 WCB, A216WCC, A351 CF8, A351 CF8M, A352 LCB, A351 CN7M, A105N, NO. Part Name Material

Refinery and Petrochemicals technology innovations are aimed to

Aromatic compounds production, usage. Dr. Ákos Fürcht BME

Special Report. IHS Chemical. Global Solvents: Opportunities for Greener Solvents. by Eric Linak and Sebastian N. Bizzari. ihs.

REFINING PETROCHEMICALS INTEGRATION

Maximizing Refinery Margins by Petrochemical Integration

gc applications Hydrocarbons C1-C5 Paraffins Hydrocarbons, Sulfur Gases C1-C2 Hydrocarbons Gases

Abstract Process Economics Program Report No. 203 ALKANE DEHYDROGENATION AND AROMATIZATION (September 1992)

The Stability of Sulfur Compounds, Low Molecular Weight Gases, and VOCs in Four Air Sample Bag Materials

Florida s Pollutants Tax on the production or importation of petroleum products, perchloroethylene, solvents, ammonia, chlorine, and pesticides.

U.S. Ethane Crackers and Ethylene Derivative Capacity Additions

SHALE-ADVANTAGED CHEMICAL INDUSTRY INVESTMENT

Beverage Grade Carbon Dioxide

«CURRENT SITUATION AND DEVELOPMENT PROSPECTS OF GAS AND PETROCHEMICAL COMPLEX OF THE REPUBLIC OF TATARSTAN» JSC «Tatneftekhiminvest-Holding»

TANK LINING RESISTANCE GUIDE I-19

Abstract Process Economics Program Report 43D MEGA METHANOL PLANTS (December 2003)

Synergies between Refining and Petrochemicals : Today and Tomorrow

ANALYST DATABOOK Oil refining at LUKOIL Group refineries, mln tons. Product output at LUKOIL Group refineries, mln tons

India s Current Position in the Petrochemicals Industry

Small on price, big on boot

Oil and Gas Projects in Mexico and Expectations for Japanese Technologies

A new simple and robust process FT-NIR Spectrometer with small footprint and extended maintenance interval

Regional Energy Trade and Refining Industry in Northeast Asia

Fans for ATEX EXPLOSIVE ATMOSPHERES

FR PVC COATED RAINWEAR

BENZENE SUPPLY TRENDS AND PROPOSED METHOD FOR ENHANCED RECOVERY

Catalysts for olefin processes. A range of performance catalysts and absorbents for use across the olefins value chain.

Transcription:

Impact of Petroleum Pricing Raw Material Market Dynamics for Metal Coatings

Petroleum & Natural Gas Markets Have Direct and Indirect Impact on RM Costs Direct Raw Material Availability and Pricing Indirect Cost of Supplier Manufacturing Operations Transportation and Shipping Costs

Factors affecting Petroleum & Natural Gas Markets World Demand Geopolitical influence (e.g. Middle East) Import vs Export, transportation US Market Weather; Heating/Cooling, Tropical Storms Speculation, Futures Trading Government Regulation Refinery Capacity and competition for feed stocks

$80 $70 $60 $50 $40 $30 $20 $10 $0 Crude Oil Trends CRUDE OIL (West Texas Intermediate) April 2006 J a n - 0 4 A p r- 0 4 J u l- 0 4 O c t - 0 4 J a n - 0 5 A p r- 0 5 J u l- 0 5 O c t - 0 5 J a n - 0 6 A p r- 0 6 $/Barrel $72.88/ barrel

Natural Gas Trends $10.00 $9.00 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 Average NYM EX Settlement P rices 1992 - April 2006 $0.00 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 $/MMBTU $1.809 $2.142 $1.901 $1.636 $2.591 $2.587 $2.108 $2.268 $3.886 $4.273 $3.221 $5.407 $6.119 $9.252 $7.474 Year

Crude Oil & Natural Gas are the Key Starting Materials for Solvents & Resins Crude Used for Naptha production Naptha feeds gasoline & oil production Also used for Ethylene and Propylene Natural Gas Energy fuel for electricity and heating Also used for Methanol, carbon black Principle RM for Ethylene and Propylene

Principle Petrochemical Feedstocks Butane Hydrogen Xylenes Crude Oil Refinery Reformer BTX Toluene ~30% Naptha Gas Oil Reformate Pygas BTX Extraction Benzene Ethane Propane Butane Steam Cracker Raffinate Propylene Natural Gas Gas Separation Unit Ethylene ~70% Methanol Butadiene

Resins and Solvents for Coatings can come from 3 Major Feedstocks Ethylene Benzene Propylene.Each Step in the Petrochemical production process creates competing products that drive supply and prices.

Ethylene Ethylene Dichloride Vinyl Chloride Polyethylene Synthetic Alcohols Ethoxylates (Surfacants) Polyvinyl Chloride Ethylene Alpha Olefins Ethylene Oxide PAOs Polyalphaolefins Ethylene Glycol Ethers Ethylene Glycol Ether Acetates Polyester Polyols Polyethylene Terephthalate Ethylene Glycols Ethanol Ethyl Acetate Antifreeze Ethanolamines Ethyl Benzene Unsaturated Polyester Resins 1,3-Propanediol Corterra

Benzene Unsaturated Polyester Resins Polystyrene Ethyl Benzene Styrene ABS, SAN, SBR, SBL Acrylonitrile Butadiene Styrene Styrene Acrylonitrile Styrene Butadiene Rubber Styrene Butadiene Latex Adipic Acid Nylon 66 Benzene Cyclohexane Caprolactam Nylon 6 Cumene Phenol Phenolic Resins Epoxy Resins Acetone Bisphenol A Polycarbonate

Propylene Cumene Phenol Methyl Methacrylate Polymethyl Methacrylate Polypropylene Acetone Direct Solvent Propylene Acrylonitrile Adiponitrile, Hexamethylenediamine Solvent Aldols MIBK DAA Etc. Propylene Oxide Propylene Glycol Ethers Isopropyl Alcohol Isopropyl Acetate Propylene Glycols Propylene Glycol Ether Acetates Butanol, 2-Ethylhexanol Butyl Acetate Polyether Polyols Polyurethanes Acrylic Acid Acrylates

Feedstock Price Trends U S $ / LB. Ethylene, Propylene, Styrene:10 year historial prices (April 2006) $0.90 $0.80 $0.70 *Styrene $0.50/lb. $0.60 $0.50 $0.40 $0.30 $0.20 Ethylene $0.49/lb. Propylene $0.47/lb. $0.10 $0.00 A p r - 9 6 A u g - 9 6 D e c - 9 6 A p r - 9 7 A u g - 9 7 D e c - 9 7 A p r - 9 8 A u g - 9 8 D e c - 9 8 A p r - 9 9 A u g - 9 9 D e c - 9 9 A p r - 0 0 A u g - 0 0 D e c - 0 0 A p r - 0 1 A u g - 0 1 D e c - 0 1 A p r - 0 2 A u g - 0 2 D e c - 0 2 A p r - 0 3 A u g - 0 3 D e c - 0 3 A p r - 0 4 A u g - 0 4 D e c - 0 4 A p r - 0 5 A u g - 0 5 D e c - 0 5 A p r - 0 6 * S TYR EN E - This is a one-t ime adjust ment made t o more closely ref lect price levels f or large and medium volume t ransact ions. THIS SHOULD NOT BE INTERPRETED AS A MARKET PRICE CHANGE. PROP ETH STY

Pricing pressure is similar for other Key Components used in the paint & coating industry Pigments Organic and Titanium Dioxide Additives Waxes, Enhancers, Fillers The ability to mitigate costs, and reject downstream price increases weakened during 2003 as producers tightened supply and long term contracts expired.

2003 When the Dam Broke! DOL Producer Price Index, Paint Materials (last 4 points are preliminary) 210 200 190 180 170 160 150 Jan -03 M ar-03 M ay-03 Jul-03 S ep -03 No v-03 Jan -04 M ar-04 M ay-04 Jul-04 S ep -04 No v-04 Jan -05 M ar-05 M ay-05 Jul-05 S ep -05 No v-05 Jan -06 M ar-06 Date P P I, P aint M aterials

Key Points to Remember The Petroleum Market is Complex & Dynamic Global/Regional Economies and Politics Impacted by Capacity, Weather, Speculators Each Petro-product has its own demand dynamic Supply & Demand has shifted to a Seller s Market Price increases are successful due to a captive market and limited supply Price increase for feedstock=increase for resins, etc. Price will change when dynamics change

What can be done do to minimize cost escalation? Develop Good Supplier Relationships Based on Reliability & Best Value vs Competitive Stabilize supply during shortages, natural disasters Enables good due diligence when prices increase Establish Effective Supply Continuity Plans Enables competitive pricing for commodities Protects RM supply during price sensitive events Protects customers from stock out risks Helps Primary and Secondary Suppliers plan their business