Deficit in Russian dioctyl phthalate market

MOSCOW (MRC) - Seasonal demand increase and suspensions for scheduled maintenance of the largest Russian dioctyl phthalate capacities on Salavatnefteorgsyntez ground strengthen the deficit in Russian market. However, stabilization of this situation is expected in mid-May - according to MRC.

Dioctyl phthalate production capacities were suspended for repairs by Salavatnefteorgsyntez from April 11 to May 16. Seasonal elevation of demand for plasticizers in soft PVC-composites production sector and shutdown for maintenance of the biggest producer have led to deficit in the domestic market. Price for dioctyl phthalate made in Roshalsk plant starts from RUB65.000/mt, VAT included, FCA.

Tight plasticizers market could have been compensated by the other Russian producers, in particular, Ural chemical plant. However, in April - May supply of diethyl hexanol, one of two key material sources, is limited in Russian market. At the same time it is highly possible that Salavatnefteorgsyntez will earlier resume dioctyl phthalate production.

Deficit in Russian dioctyl phthalate market traditionally appears when Salavat capacities are suspended. Salavatnefteorgsyntez is the biggest Russian plasticizers production, the capacity forms about 36.000 tpa. Monthly dyoctyl phthalate supply into the domestic market forms average 2.9 kt. Suspension essentially reflects on Russian market balance.

MRC

Eastman mulls divesture of PET business

(plastemart) -- Among other strategic options for its PET business, Eastman Chemical Company is considering possible divesture of the unit. Bank of America Merrill Lynch has been hired as its financial advisor.

MRC


Dammam 7 Petrochemical Co inks deal with Shanghai Huayi

(plastemart) -- Dammam 7 Petrochemical Co. has inked a deal with Shanghai Huayi for acrylic acid plant as part of a huge petrochemical complex in Jubail. Capacities at the complex include syngas, butanol and acrylic esters. The deal will strengthen China's position in the domestic Saudi Arabian market and will help transfer technology and knowledge to Saudi Arabia. Dammam 7 has inked an agreement with Saudi Aramco Total Refining and Petrochemical Co. for the supply of 200,000 tons of feedstock.

MRC


Uncertainty shrouds Petrolimex's US$4.5 bln petrochemical complex

(plastemart) -- Vietnam's Van Phong Economic Zone Authority needs approximately VND15 trillion (US$769 mln) uptil 2015 as investment outlay for Petrolimex's petrochemical and oil refinery complex. The US$4.5 bln complex, located in Ninh Hoa district's Ninh Phuoc commune to be located on land and sea, is to refine 10 mln tpa of oil. Petrolimex is mulling a joint venture with a Chinese company to build the complex. Construction was expected to begin in 2011 and be completed by 2016 with a production to comprise plants to produce liquefied petroleum gas, petrol, gasoline, diesel oil, benzene, polypropylene and sulfur.

The zone's authority needs VND500 billion (US$25.6 mln) for 2010 and 2011, each, to build resettlement areas. The company is expected to approach the government for part of the sum, and mobilize other sources for the balance.

At present, Vietnam has seven petrochemical and oil refinery projects with total capacity of 60-70 million tpa of oil, most of which are yet to come on stream.

MRC

Italian, Taiwanese firms join to serve China's plastics extrusion market

(Plastics Today) -- A new joint venture is being formed in China by Taiwan's Shini Plastics Technologies Inc. (Taipei) and Italy's Syncro srl (Busto Arsizio) to serve the automation needs of processors of extruded products. The venture opens China's fast-growing market to Syncro's products while helping Shini expand its customer base, to now mostly injection molders.

Based in Dongguan, Guangdong Province, Shini-Syncro Extrusion Control Inc. will manufacture and provide products and services in the fields of gravimetric dosing and mixing systems, central conveying systems, film-thickness measurement and control systems, and central monitoring systems for extrusion lines. The joint venture will integrate the advanced extrusion line process-control expertise of Syncro with Shini's advantages of global marketing channels and low-cost manufacturing.

Shini's core business is the manufacture and sales of plastics auxiliary equipment including dryers, feeders and conveyors, dosers and mixers, mold-temperature regulators, granulators and recycling equipment, robots, and hot runner systems. As such, its traditional customers have been injection molders.

MRC