Braskem PP purchase will not solve US market woes

(ICIS) -- Braskem's purchase of Dow Chemical's global polypropylene (PP) business could bring more discipline to the US market, but it will not solve the fundamental problem of feedstock shortness, market sources said on Thursday.

The purchase, announced on Wednesday, includes two PP plants in the US and two in Germany, with a total capacity of more than 1m tonnes/year.

By acquiring the two Texas plants, one in Freeport and one in Seadrift, Brazil-based Braskem will increase its PP capacity in the US by 50% to 1.4m tonnes/year, making the company the leading PP producer in North America, the company said.

But there are still nine other PP producers operating in the market, sources said, adding that it will be difficult for one company to exert much influence. It also does not change the most significant factor in the market, which is the short supply of feedstock propylene, sources said.

MRC

(Domo chemicals) -- As from July 1st, 2011, Domo Polypropylene BV becomes Ducor Petrochemicals BV. Ducor Petrochemicals, a joint venture between Domo Chemicals and Carmel Olefins, offers a wide range of polyolefins (polypropylene homopolymers, polypropylene block copolymers, polypropylene random copolymers and low density polyethylene) as well as refinery products, such as paraffin wax.

The core business remains unchanged as Ducor Petrochemicals continues to be a market oriented producer of polypropylene. The production in Rozenburg, The Netherlands, guarantees a flexible, customer oriented supply of a wide range of polypropylene products.

The strategic alliance with Carmel Olefins, part of the Oil Refineries Group, enables Ducor Petrochemicals to offer both complementary and supplementary polyolefins as well as other petrochemical products.

MRC

(Plastics Today) -- Rapid prototyping is increasingly helping General Motors accelerate the creative process and reduce the time and money spent on clay modeling and molding of expensive prototype parts for aerodynamic, test track, and on-road evaluations, effectively doubling testing capacity for the OEM over the last two years.

GM says its use of selective laser sintering (SLS) and stereolithography (SLA) have allowed its designers to quickly and inexpensively go from computer models to one-off parts for wind-tunnel testing, for example, so more iterations can be tested in less time. In this case, aerodynamics engineers can put a current production vehicle into the wind-tunnel and quickly swap out RP bumper covers, grilles, spoilers, and mirrors between test runs.

GM points out that in the past, modelers would carve a rough approximation of the front structure and the engine from foam or wood to evaluate the air flow through the engine bay, while today, GM's 3D prototyping lab can generate a fully detailed model including the engine, transmission, brake lines, drive-shafts, exhaust system, suspension, and other components under the car.

MRC

(CENS) -- Formosa Plastics U.S.A. will expand the annual capacity of ethylene of its naphtha cracking complex by 800 KT, from the original plan of 450 KT, with the investment amount exceeding USD 1.5 bln, much higher than USD 900 mln originally, said Li Chih-tsun, chairman of Formosa Plastics, yesterday (July 28).

The expansion project is for the third naphtha cracker of Formosa Plastics U.S.A., which embraces shale gas as raw material, different from the first and second naphtha crackers, which use naphtha as raw material. Following the completion of the expansion project, by 2015 at the latest, Formosa Plastics U.S.A. will boast annual capacity of 2.42 million metric tons of ethylene and 1.24 million metric tons of propylene, compared with 3 million metric tons of ethylene and 2.37 million metric tons of propylene of Formosa Plastics Group`s petrochemical complex in Mailiao offshore industrial zone, Yunlin County.

The expansion project will take place at the Point Comfort production base in Texas and is expected to be approved by 2012. In addition to ethylene and propylene, it also involves the production of downstream EVA.

MRC

(ICIS-MRC) -- ICIS and specialist Russia-based benchmark price provider Market Report Company (MRC) have joined forces again to bring you a weekly polystyrene (PS) price report for the Commonwealth of Independent States (CIS) and international markets. The report combines MRC knowledge of local CIS markets and ICIS expertise on European and Asian markets, giving local and global insight.

The PS price report includes an aggregated price for the product that can be used for settling contracts, as well as detailed information by brand. The report covers domestic prices, import prices, market news, report methodology, 12 month price history for Russia and Ukraine as well as market commentary on each CIS market Europe and Asia.

Now the Russian market of HIPS and GPPS are mostly provided by domestic producers. The market of EPS is presented mostly by the Asian products, as per MRC analyst Roman Lugovskoy. He says, that separate Russian producers intend to substitute a part of import supplies in the nearest time.

The report is available in both English and Russian, with domestic and import price assessments provided by locally-based editors in touch with all key players in the market.

The reports are best used to understand price drivers and fluctuations in domestic CIS markets, and on a global scale, as well as the resulting impact on the CIS market, also to develop detailed analysis from price history, data and graphs to support commercial decision-making.

The joint portfolio of ICIS and MRC also includes: PE, PVC and PP.

MRC