Petrochemicals & Polymers - Part I & II
Istanbul Schedule
21st - 22nd October 2008, Istanbul
Petrochemicals: Part I – A Beginner’s Course
An Introduction to the Industry
This beginner’s course starts with the assumption that the delegates have no knowledge of petrochemicals. During the day, their knowledge is built up so at the end they have an understanding of the key fundamentals that drive the petrochemical business.
The first session explains that essentially six building block chemicals are used to make petrochemicals and the everyday items that we use in our lives. We discuss the raw materials required and processes used as well as some of the commonly used terms.
We then look at the development of the oil industry and its relationship with petrochemicals. Oil refinery processes are discussed and the role petrochemicals play in the refinery. Information on crude oil and natural gas reserves, production and consumption is included.
The global petrochemical business is examined looking at chemical production and growth, and who are the main players. In this, we look at the growing influence of China and the increasing role the Middle East with its huge competitive advantage will play in the business.
A session introduces pricing and markets covering factors that influence price and how prices are set in the market. Types of pricing and price jargon are explained.
A break-out session gives delegates the opportunity to put some of the learning into practice. Working in groups with help from the presenters, you are given a task to develop a project in a selected part of the world. Presentations allow for group discussion on issues and topics not covered earlier.
The day concludes with an overview of the course and the strategies of the big chemical companies. A glimpse at future trends is given.
Petrochemicals & Polymers: Part II – The Next Level
A Deeper Understanding of Commodity Polymer Markets, Prices, Costs and Profitability
This course also follows the beginner’s programme but with a focus on the commodity polymers business. It takes a deeper look at the feedstocks and markets for polymers and gives an understanding of the cost elements in the manufacture of polymers as well as profitability and margins. This learning is reinforced with an exercise in calculating the cost of making a polymer.
The first three papers cover the fundamentals of the commodity polymers business. There is an introduction to plastics explaining their structure, the polymerisation processes and basic market trends.
We discuss the production and markets of two basic raw materials – ethylene and propylene – used to make polymers.
The third paper looks at the market dynamics of polyethylene, polypropylene, polystyrene, polyvinyl chloride and polyethylene terephthalate.
The discussion next turns to environmental issues surrounding polymers with delegates invited to add their thoughts and experiences to this topical and often controversial subject.
We then get down to explaining the cost of production. The components of fixed and variable costs are described and how the costs are built up to a final figure. Cost curves and leader and laggard concepts are explained, and how theoretical prices are set.
The class room exercise enables delegates to practice some cost calculations with an end task of deciding whether to produce an incremental amount of a polymer.
A follow-on session looks at the different measurements of profitability and types of margins. The concept of value chains is explained.
The concluding session turns to polymer pricing with a discussion on price setting mechanisms, inter-regional prices and inter-material competition. Long term factors which influence future prices are covered.
Those who need to attend include:
• Experienced sales and marketing staff new to the polymers business
• Buyers and converters of commodity polymers
• Purchasers in end-user industries using and consuming polymers
• People providing support functions and services to this sector
• Technical staff looking for a broader overview of the polymer sector
• Delegates who have attended the beginner’s course or more experienced people looking for a refresher course
Time permitting, there is a review of the day and a short quiz.
