SCG Chemicals

Slowing demand from China has lowered petrochemical spreads in the second quarter, but increasing production volume and expected market recovery in the second half could bolster SCG Chemicals' year-on-year revenue growth to 20% this year.

Mr Cholanat tries some recipes using WaveMe melamine ware. PHONGTHAI WATTANAVANITVUT

The Siam Cement Group (SCG) unit projected that its revenue will rise by 20% this year from 144.3 billion baht last year as production volume should rise 40% after its suspended projects in Map Ta Phut resumed, said president Cholanat Yanaranop.
The projection was based on expectations that global ethylene output would increase by another 11 million tonnes this year from about 140 million tonnes in 2010.
"The petrochemical business has weakened this quarter from three months earlier as China slows down its consumption. This has caused a drop in spreads as oil prices have been relatively unchanged at $110 per barrel," Mr Cholanat said.
The spread between naphtha and high-density polyethylene (HDPE) has fallen from $400 a tonne in the first quarter to $300 at present while propylene spreads had slipped below $700 per tonne quoted in the first three months, he acknowledged.