PVC prices in China are unlikely to slide further

(ICIS) -- Polyvinyl chloride (PVC) prices in China are unlikely to slide further in the near term in light of firming feedstock prices and a likely pick up in demand with the onset of the production season through September, market sources said on Wednesday.

Spot prices of PVC reached their peak at USD1.220-1.250/tonne (EUR 866-888/tonne) CFR (cost & freight) CMP (China Main Port) in May and were last assessed at USD 1.070-1.090/tonne CFR CMP on 15 July 2011, according to ICIS data. Prices in the spot market have plunged to the current level amid sluggish demand in China, market sources said.


Power restrictions in several regions in east China have dampened demand as a number of downstream factories have reduced their operation rates, with some smaller plants even shutting their operations, market sources said. As a result, some market participants do not expect to see a significant improvement in demand until September.

In addition, a deluge of competitively priced US cargoes into the country has placed further downwards pressure on prices, according to market sources.

MRC

(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