Europe naphtha prices soften on lower crude values

(ICIS) -- Lower Brent crude oil prices resulted in the European naphtha cargo range softening further on Wednesday morning. However, views were mixed on the effect this would have on naphtha demand.

At 10.15 GMT, the range was assessed at USD 1.062-1.070/tonne CIF (cost, insurance & freight) NWE (northwest Europe), with June Brent crude oil at USD 122.76/bbl.

This was a fall of USD 9/tonne from the previous afternoon's range of USD 1.071-1.079/tonne, when June Brent was at USD 123.64/bbl.

It also marked a USD 34/tonne drop from the exceptionally high range of USD 1.096-1.104/tonne seen on the afternoon of 28 April, when June Brent was at USD 126.18/bbl.

Prices have risen further since then, albeit remaining at levels last seen in July 2008. This has led to concerns about the negative effect on European naphtha demand.

MRC

(ICIS) -- BP declared force majeure (FM) on US acetic acid earlier this week because of problems stemming from a recent power outage at a plant in Texas City, Texas, sources said on Wednesday.

BP markets all of the acetic acid produced by a 545 KTa Sterling Chemicals plant in Texas City, in a deal that expires in 2031, according to Sterling's website. The power outage had disrupted operations at the Sterling plant, sources said.

Allocation levels and details on whether the plant is still running were unknown.

BP and Sterling Chemicals have not responded to calls seeking comment.

The acetic acid FM stemmed from a power outage on 25 April that knocked out petrochemical and refinery operations in Texas City, sources said.

The power outage disrupted Texas City operations at a Dow Chemical complex, an INEOS styrene plant and Marathon, BP and Valero refineries.

MRC

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