China stops MTBE re-exports because of rising domestic demand

(ICIS) -- Chinese market players have reversed a rare move to resell bonded cargoes of methyl tertiary butyl ether (MTBE) because domestic demand for gasoline fuel is picking up, traders said on Monday. A major Chinese seller withdrew its offer to sell 4 KT of bonded MTBE last week. The seller's initial offer stood at USD 1.140/tonne (EUR 787/tonne) FOB (free on board) China, the traders said.


Around 10-12 KT of MTBE material were being resold into the Singapore market in ecent weeks at USD 1.120/tonne FOB China, or equivalent to USD 1.165/tonne CFR (cost & freight) Singapore, the traders added. The cargo was subsequently sold at USD 1.140/tonne FOB China or USD 1.185/tonne CFR Singapore, the traders added.


China, the world's top energy user, imports gasoline despite being a net gasoline exporter and major Chinese refiners source the motor fuel from private blenders, the traders added. There will be hundreds of thousands of motorists on the roads during Golden Week, which is a week-long holiday celebrating China's National Day.


Overall gasoline demand remains stable in China, although the Chinese government is tightening credit to combat inflation, industry players said.


MRC

Iran and India to resolve oil payment dispute

(Arabian Oil and Gas) -- India has settled a USD 5 bln dispute over payment for oil imports from Iran, according to reports from the Iranian oil ministry and the Iranian state-backed Mehr news agency.


In order to navigate payment through what has been described by the Carnegie Endowment for Peace as the "swiss cheese" of international sanctions currently levied against Iran, India will make the USD 5 billion back payment and future payments for crude through a Euro-denominated facility in Turkey's Halkbank.


While buying Iranian crude remains legal under the sanctions regime, severe financial restrictions have made it difficult to pay Tehran for crude exports.


India imports around 400.000 barrels of oil per day from Iran, some 12% of total national daily demand. The Iranian oil ministry had threatened to cancel future exports to India if payment terms were not negotiated.


MRC

BASF to form JV for the production of bio-based succinic acid

(BASF) -- BASF SE and Purac, a subsidiary of CSM nv, today announce the start of negotiations to form a joint venture for the production of bio-based succinic acid. The companies have been conducting research under a joint development agreement on bio-based succinic acid since 2009. The complementary strengths in fermentation and downstream processing led to the development of a sustainable and highly efficient manufacturing process based on a proprietary microorganism. The demand for succinic acid is anticipated to grow strongly in the next years. Main drivers are expected to be bioplastics, chemical intermediates, solvents, polyurethanes and plasticizers.


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Extrusion systems manufacturer Macro Engineering opened a new office in Italy

(PlasticsToday) -- In a move to increase sales and service resources available to its customer base in Europe and the Middle East, extrusion systems manufacturer Macro Engineering has opened a new office near Milan, Italy under the name Macro Engineering & Technology S.r.l.


Plastic film and sheet extrusion systems manufacturer Macro (Mississauga, Ontario, Canada) say it had considered a number of alternatives to accelerate its plan to start a European operation including the acquisition of an Italian machinery manufacturer. However, negotiations for the acquisition broke down and the company opted to establish its own subsidiary. Macro selected Italy because of its proximity to the company's European customer base and for the Milan area's well-established network of suppliers and human resources.


MRC

BASF substantially expands production of insulation material Styrodur C

(BASF) -- BASF will substantially expand the production plant for the insulation material Styrodur C at the Ludwigshafen site in Germany. This will increase the production capacity of the extruded polystyrene rigid foam panels (XPS) from the current 1.3 million m by an additional 220,000 m. In the extended plant the new XPS types Styrodur Neo and Styrodur HT can be manufactured along with standard products. Operation will start at the end of 2011.


The plant extension is incorporated into the existing production structure, but will have a more elaborate configuration and will operate using an optimized method. This will allow a well-directed setting of specific panel properties. Thus, security of supply and quality consistency for BASF customers is increased.


With Styrodur C, BASF is among the leading providers of XPS insulation in Europe. The European XPS market is currently growing by 3 to 5 percent per annum, driven by rising energy prices and legal regulations on thermal insulation in new and old buildings.

MRC