Europe July MLLDPE contracts down on growing availability

(ICIS) -- Growing availability in the European metallocene linear low density polyethylene (MLLDPE) market has weighed heavily on July's contract prices, forcing values to dip by EUR 50-60/tonne (USD 70-85/tonne), market participants said on Wednesday.

Import pressure and a growing disparity between spot and contract values left producers with little choice but to offer reductions at a minimum of EUR 50/tonne, according to several sources.
This left July C8 blown film grade MLLDPE contract prices at EUR 1.500-1.550/tonne FD (free delivered) NWE (northwest Europe) on a gross basis, according to ICIS. Many market players felt the reductions could be on a higher level by the end of the month, with at least one buyer saying that it was looking to achieve the full upstream ethylene decrease of EUR 95/tonne, or even a three-digit reduction.

Exports into Europe are also available at levels of EUR 1.330/tonne FCA (free carrier), according to several traders, with C8 blown film grade MLLDPE offered to consumers at around EUR 1.400/tonne FD on a net spot basis.

MRC

(SIBUR) -- At the site of the company Voronezhsintezkauchuk, work has begun on the construction of a new complex for the production of modern road materials ≈ butadiene-styrene thermoplastic elastomers (TPE). The designed capacity of the new complex will be 50 thousand tonnes per annum. Voronezhsintezkauchuk is the only Russia-based TPE manufacturer with an output volume of 35 KTa, which is substantially lower than the actual level of demand on the domestic market. Planned investments in construction will amount to more than 3.8 billion rubles.

MRC

(BUSINESS WIRE) -- The Dow Chemical Company and Mitsui & Co., Ltd., of Tokyo, Japan announced the formation of a new joint venture and execution of a Memorandum of Understanding (MOU) aimed at providing innovative and sustainable product solutions to the global high-performance flexible packaging, hygiene and medical markets. This represents the world's largest biopolymers play and is Dow's largest investment in Brazil, a country in which Dow has operated successfully for more than 50 years.

Under the terms of the agreement, Mitsui would become a 50% equity interest partner in Dow's sugar cane growing operation in Santa Vitoria, Minas Gerais, Brazil. The initial scope of the joint venture includes production of sugar cane-derived ethanol for use as a renewable feedstock source, bringing new, biomass-based feedstocks to Dow while diversifying the Company's raw material streams from traditional fossil fuels.

When complete, Dow and Mitsui will have the world's largest integrated facility for the production of biopolymers made from renewable, sugar-cane derived ethanol. The project aligns with Dow's goal of developing low carbon solutions to meet the world's pressing energy and climate change challenges.

MRC

(Plastemart) -- Uflex Ltd., India's largest flexible packaging manufacturer has commissioned an AL-OX coater for Packaging films at its Egypt plant in 6th of October City, near Cairo. With this, UFLEX joins the list of handful manufacturers, capable of producing ALOX-coated films. As part of the expansion plans in Egypt, Uflex Ltd. is ramping up production capacities for BOPP films (Bi-axially Oriented Poly Propylene film) to 35 KTa; 30000 tpa of PET (Polyester) and 12000 tpa of CPP films aggregating to total capacity of 77 KTa.

The company's planned investments in Egypt are pegged at USD 135 mln. The first line of this expansion involved adding capacities in BOPP films. The second line of setting up facilities for CPP films, work at the new 12.000 tpa facility, state-of-the-art Cast Polypropylene (CPP) film line has been commissioned and has become operational, whereas the third line to produce 30000 tpa of PET film will be operational by Dec 2011-Jan 2012.

MRC

(Platts) -- South Korea's Kumho P&B Chemicals has been operating its solvents lines at Yeosu at about 70-80% of capacity since July 6, a source close to the company said Tuesday.

The run cuts followed flooding caused by heavy rains and a disruption in steam and power supply, the source said, adding that the company hoped to ramp up to full capacity again by the end of the month.

Steam and power supplied by parent company Kumho Petrochemical was disrupted for two-three days, the source said, but gave no further details.

The company has three solvents lines but the 30-year-old No. 1 line, with the capacity to produce 30 KTa of phenol and 20 KTa of acetone, was scrapped in 2008 because of poor margins.

The No. 2 line can make 135 KTa of phenol and 84 KTa of acetone while the No. 3 line can deliver 205 KTa of phenol and 123 KTa of acetone.

MRC