European producers to reduce export prices for PE

MOSOW (MRC) -- Following the slide in Asian and Middle East prices for PE, European producers reduce export prices, on average, by EUR 100/t, according to ICIS-MRC Price report.

Reorientation of PE export streams from Asia and Middle East to Europe forced European producers to reduce prices yet in May. In June, growing competitiveness as well as decrease of oil prices resulted in further cheapening of PE.

Contract price for ethylene in July in Europe fell by EUR 95/t that will affect PE prices next month. Some European producers have already declared EUR 100/t reduction of export prices for LDPE and LLDPE in CIS. Export prices for HDPE were changing during June, as a result some producers declared reduction of July export prices by EUR 120 - 150/t compared to early June.

Russian producers unwillingly reduce PE prices both for domestic and external markets. LDPE prices for the domestic market fell by 1.000 - 3.000 RUB/t by the end of June, depending on
producer. Only one Russian producer declared reduction of HDPE prices in July.

MRC

(Plastemart) -- HPCL is in the process of reviving its USD 10 bln refinery-cum-petrochemical project in Visakhapatnam and is currently in talks with various companies like Mittal Energy to enter into a joint venture partnership. The company plans to raise debt to fund the new project.

The project was first planned in 2005-06 and was expected to come up in the proposed petroleum, chemicals and petrochemicals investment region (PCPIR) at Visakhapatnam. Total France SA and Mittal Energy Investment were HPCL's partners in the project. However, in December 2008, Mittal Energy exited the project followed by Total in September 2009, after which HPCL decided to defer the project.

MRC

(Arabian Oil and Gas) -- In February, Aramco awarded KBR the FEED contract for the Jizan project. Saudi Aramco may invite bids earlier than planned for the contract to build a $7 billion refinery at Jizan in the Kingdom's southwest.

Aramco's original plan was to invite bids for the EPC contracts by the end of 2012, but they are now looking to bring this forward by six months, according to an unnamed source speaking to the Dow Jones Newswire.

Jizan is slated to produce 400,000 barrel per day on completion, and will supply the burgeoning local market.

It is not clear why the tendering process is being expedited. The project was initially due to be implemented by the Saudi government as a private sector initiative but, after generating limited interest, was handed over to Aramco.

MRC

(Styron) -- Styron, a leading global materials company established in June 2010, today announced that it filed a registration statement on Form F-1 with the U.S. Securities and Exchange Commission related to a proposed initial public offering of its common stock. The filing is under the company name Trinseo S.A. In April, Styron announced plans to change its name to Trinseo, which will take effect globally later this year.


The offering may consist of newly issued shares sold by Trinseo S.A as well as shares sold by selling stockholders. The number of shares to be offered and the price range for the offering have not yet been determined. The company will likely use the net proceeds from the proposed public offering for debt repayment and other general corporate purposes.


The previously referenced registration statement relating to these securities has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.


MRC

(ICIS) -- US spot offers for some grades of polyethylene (PE) have emerged 19% below May contract prices, suggesting that falling feedstock costs and pressure from overseas imports will cause PE contracts to settle lower in June, buyers said on Friday.

Prime low density PE (LDPE) was offered in the secondary market at 72-74 cents/lb (USD 1.587-1.631/tonne, EUR 1.111-1.142/tonne) FOB (free on board) Houston for bagged material, while linear low density (LLDPE) butene was offered at 63-65 cents/lb FOB Houston for bagged material.
By comparison, LDPE film was assessed at 89-91 cents/lb DEL (delivered), and LLDPE butene was assessed at 78-81 cents/lb DEL for May contracts, according to ICIS.

Negotiations for June contracts are expected to continue through the end of the month, with some producers continuing to fight decreases, sources said.

Even with the lower prices, the US export market is hampered by prices in Asia that are 15-20 cents/lb lower than in North America, sources said.

MRC