Shell to bring partner on PE component of a new cracker

(ICIS) -- Shell could go it alone on any polyethylene (PE) component of its plan for a cracker project in the US, but it would also contemplate teaming up with another company, an executive said on Monday.


"Partnering is one of the things we would have to consider" for a PE side of the project, said Ben van Beurden, the Anglo-Dutch energy company's executive vice president for chemicals.


The cracker plan is being driven by the US advantage in relatively cheaper feedstocks because of swelling production of ethane from shale gas, especially from the Marcellus shale formation in the northeast.


The market has to take a view on how long that advantage will persist, van Beurden said, adding that Shell obviously thinks it will go on long enough to make the investment worthwhile.


The big picture is that the US will be a "significant" PE exporter in years ahead, van Beurden said on the sidelines of the American Chemistry Council (ACC) annual meeting in Colorado Springs, Colorado. But the cracker plan itself is based on expectations for domestic demand in the US northeast.


MRC

In Asia polystyrene resin prices have fallen this week

(ICIS) -- Asia polystyrene (PS) resin prices have fallen this week amid persistently poor demand and lower feedstock prices, said producers and traders on Tuesday. However, some suppliers said they are expecting the emergence of some buying interest in late June, ahead of the Chinese manufacturing season for exports in the third quarter of the year.


Prices of general purpose PS (GPPS) slipped to around USD 1.520/tonne CFR (cost & freight) China on 7 June, down from USD 1.610/tonne CFR China a month ago, market sources said.


Prices of high impact PS (HIPS) also declined, down to USD 1.750/tonne CFR China this week from above USD 1.800/tonne CFR China a month ago, the sources added.


Weaker prices of feedstock styrene monomer (SM), which slipped below USD 1.400/tonne CFR China this week from USD 1.450/tonne CFR China a month ago, weighed on the PS market.


MRC

GEO Specialty Chemicals and BASF to acquire the Bisomer monomer business

(BASF) -- GEO Specialty Chemicals, Inc. has entered into an agreement with BASF to acquire the Bisomer monomer business (hydroxy methacrylates, multifunctional methacrylates (MFM) and specialty adducts) and conventional contact lens business of Cognis UK. The transaction includes a manufacturing facility in Hythe, England that produces hydroxy methacrylates, multifunctional methacrylates (MFM) and specialty adducts, polyalkylene glycols (PAG) and PAG-based lubricants. As a part of the transaction, approximately 140 employees are expected to transfer to the new owner, GEO Specialty Chemicals UK Limited.


BASF and GEO have agreed not to announce the terms of the transaction. The divestiture is subject to approval by the EU Commission. Closing of the transaction is expected in the third quarter of 2011.


GEO Specialty Chemicals, Inc., a privately owned company founded in 1993, is a producer of specialty chemicals, targeting niche markets. The Company has three divisions, which include Water Treatment, Paints & Coatings and Construction & Industrial, and operates eighteen manufacturing facilities.


MRC

SABIC to help customers achieve sustainability goals

(SABIC) -- At Chinaplas 2011,the Innovative Plastics strategic business unit of SABIC today announced a new milestone in its expanding sustainability efforts to provide customers with a diverse portfolio of high-performance, environmentally responsible materials. Further evidencing its commitment to validating its ecological claims, the company is now one of the first to receive Environmental Claims Validation (ECV) from Underwriters Laboratories Environment (ULE), a wholly owned subsidiary of Underwriters Laboratories. Certification was given to Innovative Plastics' new Noryl RN0401 resin - which contains at least 20 percent post-consumer recycled (PCR) content - after successfully completed the demanding ULE validation process. This achievement represents another major step in Innovative Plastics' pioneering efforts to support its customers' sustainability programs with environmentally sound advanced materials solutions.


MRC

LDPE prices in the Russian market to decrease

(ICIS-MRC) -- After cheapening in the external markets, LDPE prices have been falling in the Russian market as well, according to ICIS-MRC Price Report.


2010 was quite successful for polymers market after crisis 2008. Overall consumption of polyethylene in Russia grew more than by 30% compared to 2009 and exceeded 1.7 mln tons. Demand for LDPE increased by 29% and made 565 KT. Although hopes of many market players for 2011 didn't come true.


This year demand for LDPE in Russia keeps on growing but not that quickly as in 2010. Russian producers reduced LDPE output by 4%, at the same time export supplies got down by 12%. Excessive offer resulted in competitiveness among producers in the domestic market.


Nearly 1-month shutdown for maintenance of LDPE production at Kazanorgsyntez didn't allow to reduce excessive offer.


In the beginning of the last week the price for LDPE from Tomskneftehim was reduced by
1.500 RUB/t. At the end of the week contract prices for polyethylene from Kazan were reduced, on average, by 500 - 1.000 RUB/t, depending on the grade. The price for 158 LDPE was within the range 63.000 - 64.500 RUB/t, including VAT, FCA Moscow. In June, some Russian producers plan to increase LDPE exports to balance the market offer and demand.


Under the pressure of low demand from the late March till now, quotations for LDPE in Asia fell more than by USD 150/mt. In the European market spot prices fell on average by EUR 50-70/mt.


MRC