US economic recovery likely to continue

(ICIS) -- US economic activity is likely to recover from the current ⌠soft patch in the second half of 2011, driving healthy chemical demand, the chief economist of the American Chemistry Council (ACC) said on Thursday. ⌠We see a recovery in most end-use sectors, with particular strength is capital goods, which is driving basic chemicals, said ACC chief economist Kevin Swift during a conference call on its mid-year outlook.

He said he expects US bulk petrochemicals and organics volume output to grow 5.6%, plastics resins at 4.7% and synthetic rubber at 5.7% in 2011. Overall chemical output, excluding pharmaceuticals, is expected to rise by 4.8% in 2011 and another 3.1% in 2012.

He compared the economic downturn of 2008-2009 to a fall into a 20-foot (6-metre) ravine. ⌠We've probably gone up 12-14 feet on the other side of the ravine, but it's been muddy and slippery, he added.

While the softening of the US manufacturing recovery in the second quarter will affect chemical demand, inventories are well balanced and exports continue to be strong, he said.
⌠US exports of thermoplastics have doubled since 3-4 years ago to 20% of output. And we see the potential of this growing much higher as the US has emerged as one of the world's low-cost producers because of shale gas, said Swift.

For the global chemical sector, the economist said he expects output to grow by 4.8% in 2011 and 5.3% in 2012.

MRC

(Arabian Oil and Gas) -- A fire yesterday on one of BP's oil production platforms operating in the North Sea has halted the company's production from the Valhall field. The fire prompted the evacuation of hundreds of workers, but BP said there was no risk of oil spills, according to a Reuters report.

"Production is shut in and there is no risk for an oil spill," BP spokesman Jan Erik Geirmo told Reuters. "It is serious when you have a fire on a production platform and the cause of this is something we need to investigate... and it's too early for us to speculate." "But it is quite clear that it was a serious incident." It is uncertain when the field will restart, Geirmo said.

MRC

(Arabian Oil and Gas) -- China's implied oil demand rose 1.1 percent in June from a year earlier, the slowest growth in oil demand in more than two years, according to a Reuters report. Oil plants in the country are undergoing heavy maintenance amid poor refining margins and Beijing's tightening monetary policy cut into oil use.

But analysts said real oil use may not be as bearish as the figures show, as oil firms may have been drawing on oil inventories, which were not reported by the government, to ease the pain of negative refining margins.

If Beijing continues its persistent battle against inflation, oil demand in the world's second-largest consumer could grow slower than the pace of 5 to 7% forecast early in the year. Concerns remain in Beijing about over inflated asset prices and the sttep rise in the costs of raw materials and foodstuffs.

Implied demand, crude oil throughput plus net imports of refined oil products, averaged 8.97 million barrels per day (bpd) last month, down 3.2 percent from May, and slipped below the 9 million bpd mark for the first time in 8 months, according to Reuters calculations based on preliminary official data.

MRC

(PlasticsToday) -- Plastics processor Trelleborg worked with offshore construction company McDermott to develop a new range of diver-friendly piggyback clamp designed to improve safety during installation of underwater pipelines. Molded from marine-grade polypropylene, the piggyback saddle can fit carrier pipelines from 20" - 42" and line sizes from 1.25" to 3.5". The one-size-fits-all design of the clamp can streamline purchasing, enabling zero-waste bulk ordering.

Business unit Trelleborg Offshore developed the clamp at the request of McDermott. The new PP system includes the use of edge-treated banding and a new fastening system which eliminates sharp edges, reducing the risk of cuts to a diver. The design also negates the need to pass the band around the carrier pipe to secure the piggyback line, which reduces handling and improves installation efficiency while also reducing costs and increasing diver safety.

MRC

(Reuters) - Royal Dutch Shell and Dow Chemical lost a court appeal on Wednesday against a fine levied by EU regulators five years ago for taking part in a cartel, but the court cut a fine imposed on Italy's Eni. The General Court, Europe's second-highest, also annulled penalties levied against Czech petrochemicals group Unipetrol and Polish company Trade-Stomil.

"With regard to Unipetrol, its subsidiary Kaucuk and Trade-Stomil, the Court considers that the evidence admitted by the Commission is not sufficient for a finding that those companies participated in unlawful agreements," the court found.

For Eni and its Polimeri Europa subsidiary, the court cut the joint fine to EUR 181.50 mln from 272.25 mln, saying a change in corporate structure and control had undermined the European Commission's argument that the companies had repeated an infringement.

But the Court upheld the EUR 160.88 mln fine on the Royal Dutch Shell group. And while it annulled part of the Commission's ruling against Dow, it did not reduce the fine of EUR 64.58 mln.

The European Commission had levied a total fine of EUR 519 mln against the five companies in 2006 for fixing prices and sharing customers for certain types of synthetic rubber used to make tyres, shoe soles and golf balls between 1996 to 2002.

MRC