Local deficit of LDPE for thermal shrinkage made prices up

MOSCOW (MRC) -- Suspension of Kazan enterprise as well as limited traffic in federal roads stipulated local deficit and small growth of prices for polyethylene (PE) for thermal shrinkage, according to ICIS-MRC Price forecast.

In April because of spring floods the cargo traffic was limited in many federal roads. It didn't affect the Russian market of PE seriously, except growing expenses for delivery. A small demand for LDPE in terms of efficient offer didn't cause serious problems in the market.

In mid-April LDPE capacities in Kazan were suspended for scheduled maintenance, and in the end of the month there was a small deficit of 153 PE in separate Russian regions. Despite a low buying activity, in the first weeks of May the prices for LDPE for shrinkable films production in terms of limited offer grew to 65.000 - 67.000 RUB/t, including VAT, FCA. The offer of 158 PE is more than enough and the level of prices is within 61.000 - 64.500 RUB/t, including VAT, FCA, depending on producers.

Renovation of LDPE production for shrinkable films in Kazanorgsyntez is expected after 17 May, after scheduled maintenance. It is not excluded that till now a further reduction of PE offer will stipulate the growth of spot prices.

MRC

(Sabic) -- Sabic Innovative Plastics launched at the VDI conference two new specialty materials that make creating and maintaining high-quality, attractive automotive interiors much easier. The first new product is a Cycolac acrylonitrile-butadiene-styrene/polycarbonate (ABS/PC) resin for elegant, low-gloss parts that eliminates the costs, wear problems and environmental downsides of secondary painting.

The second innovation is a Geloy polycarbonate/acrylonitrile styrene acrylate (PC/ASA) resin that provides permanent anti-static performance for a fresh, clean appearance of interior parts. The new Cycolac and Geloy resin materials - along with other high-tech thermoplastic resins and glazing in Sabic Innovative Plastics' robust and growing portfolio of automotive materials - are on display at its booth, showcasing the company's focus on driving next-generation breakthroughs to help global automotive customers enhance vehicle performance and consumer appeal.

MRC

(Plastics Today) -- Sustainable plastics manufacturer Cereplast (El Segundo, CA) will establish a 100 KTa bioplastics manufacturing plant in Italy, bringing production into the region that generates 85% of its business. The eventual 100 KT (220 million lb) of capacity will be built out in several phases, with 50 KT of initial production expected to start up in late-2012. The second 50 KT phase is planned to begin in mid-2013, based on market demand.

Cereplast said the plant will be developed near Assisi in Umbria at the site of an existing industrial plant and cover 125,000-ft2. The building is currently permitted as a chemical site, which allows Cereplast to utilize existing infrastructure.

MRC

(Plastemart) -- Samsung Engineering Co., South Korea's largest industrial plant builder, has said that it has won a USD 230 million order to build a high-density polyethylene (HDPE) plant in western India. Under the deal with ONGC Petro-additions Ltd. (OPaL), a unit of India's state-run Oil & Natural Gas Corporation Ltd. (ONGC), Samsung Engineering will build the plant with an annual production capacity of 340 KT of HDPE by August 2013. The plant will be built at the special economic zone in Dahej, Gujarat.

MRC

(ICIS) -- China's manufacturing growth eased in April as the government's measures to tighten monetary policy started to show signs of helping to slow domestic demand, industry sources said on Tuesday.

The Purchasing Managers' Index (PMI) declined by 0.5 percentage points from March to 52.9% in April, according to a report from the China Federation of Logistics and Purchasing (CFLP) released on 1 May. The PMI fell after rebounding in March from three consecutive months of slowdowns.

The index for new orders fell by 1.4 percentage points month on month to 53.8% in April, with the import order index at 50.6%, a fall of 1.4 percentage points. The export index was 51.3%, a slide of 1.2 percentage points, according to data from CFLP.

The production index was 55.3% in April, a fall of 0.4 percentage points month on month, while the purchasing index dropped by 2.1 percentage points to 66.2%, according to the data.

China has raised interest rates four times since last October and has hiked the reserve requirement ratio ten times since early 2010.

MRC