In May, PP output in Russia grew by 11%

MOSCOW (MRC) -- In May, Russian producers increased polypropylene (PP) output to 62 KT. Over the five months overall PP production exceeded 286 KT, according to MRC ScanPlast.

In May, all Russian producers increased utilization of PP capacities which allowed to reach record 62.1 KT which was 11% more compared to April. Over the five months, overall output of PP in Russia exceeded 286 KT which was 7% more compared to the same period last year.


In May, Russian producers increased production of all types of PP. Raffia output made nearly 23 KT. Overall production of impact copolymers exceeded 10 KT.


MRC

Chinese companies to cut PP production

(ICIS) -- Sinopec is planning to cut its polypropylene (PP) output in June, traders said.Yanshan Petrochemicals plans to shut down its 440 KTa plant in the first half of August for about 30 days of maintenance. Dushanzi Petrochemicals is to turnaround 690 KTa of its PP capacity in the second half of July for about two months.


In addition, the production of household appliances such as air-conditioners and refrigerators will go into its traditional peak season in September, increasing the demand for PP feedstock, these sources added.


MRC

PP prices in China to fall further through July

(ICIS) -- Prices of polypropylene (PP) in China are expected to fall further through July, on the back of faltering demand from downstream markets as the government continues to tighten its credit lending polices, market participants said on Wednesday.


The authorities have tightened lending and raised interest rates in a bid to stem accelerating inflation, which hit a 34-month high of 5.5% in May, according to official figures announced on Tuesday.


The central bank on Tuesday also raised the reserve requirement ratio for banks by 50 basis points from June 20.


Downstream manufacturers are facing difficulties in obtaining loans because of the measures, resulting in lower purchasing ability and demand for feedstocks such as PP.


Prices of raffia yarn and injection-grade homopolymer PP were at USD 1.500-1.530/tonne (EUR 1.035-1.056/tonne) CFR China this week, 7.4% or USD 100-140/tonne lower than first-half May levels at USD 1.600-1.670/tonne CFR China.


For block copolymer PP, discussions fell to USD 1.500-1.550/tonne CFR China this week, a sharp dive of USD 120-130/tonne or an average of 7.5%, from USD 1.620-1.680/tonne CFR China three weeks ago, according to data from Chemease, an ICIS service in China.


MRC

BASF to declare FM on polybutylene terephthalate

(ICIS) -- BASF has declared force majeure on polybutylene terephthalate (PBT) and reduced output volumes because of limited availability of feedstock butanediol (BDO), the chemicals major said on Wednesday.


Europe's largest PBT producer declared force majeure on PBT base polymer and compounds, both marketed under the BASF trade name Ultradur, on 7 June. However, it is still producing material.


BASF's Ludwigshafen facility is not currently producing BDO because of a lack of raw material acetylene. Production of the feedstock was disrupted following a fire in a precursor plant at the facility on 30 May. The company declared force majeure on BDO on 31 May.


PBT production at the 100 KTa facility in Schwarzheide, Germany, will be increased once BDO stock is more readily available, the source said. In the meantime, its customers are on allocation.


MRC

Agreements on project financing for RusVinyl to be signed on June 17

(SIBUR) -- On June 17, 2011 at 12:30 p.m. Moscow time and 9:30 a.m. London time (BST) at the Press Centre of the St. Petersburg International Economic Forum (Pavilion 6, Conference Room 6.3), agreements will be signed for the project funding of ⌠RusVinyl LLC, under guarantees by the export credit agencies of France and Belgium.


The bank syndicate providing the financing includes Sberbank of Russia, the European Bank for Reconstruction and Development, BNP PARIBAS, ING Bank N.V. and HSBC France.


⌠RusVinyl LLC is a joint venture between SIBUR, the leading petrochemicals producer in Russia, CIS and Eastern Europe and SolVin (a joint venture of Solvay and BASF), which is building a complex for PVC production with a capacity of 330,000 tonnes per annum in the Kstovo District of the Nizhny Novgorod Region.


MRC