Saudi Industrial Investment Group established a joint venture company

(Platts) -- Joint stock company Saudi Industrial Investment Group, or SIIG, said Monday it has established a joint venture company dedicated to producing downstream petrochemical products.

The venture, called Petrochemical Conversion Company, or PCC, has been formed under a 50:50 partnership with the Arabian Chevron Phillips Petrochemical Company, the company said in a statement posted on the Saudi stock exchange Tadawul. A total of USD 2 bln will be invested in PCC over the next two years.

One of the first projects for the new company will be a nylon manufacturing plant, SIIG said. In addition, other downstream petrochemical plants will also be established under the joint venture, the company added.

MRC

(UralPolit) -- Construction and assembling operations in the site of Tobolsk-Polymer plant are 30% completed. Maintenance support of "Tobolsk-Polymer" makes 95% now. According to Vice- president of SIBUR, General Director of "Tobolsk-Polymer" LTD, Michael Karisalov, now all main equipment for a new plant is shipped and delivered to the port of Arkhangelsk. The cargo is expected to arrive to the port of Tobolsk in the second half of August. Its transportation from the port to the construction site will be made in early September 2011.

"Tobolsk-Polymer" is the largest investment project of the Russian petrochemical industry. The annual capacity of this project will make 500 KT of polypropylene per annum.

MRC

(ICIS) -- US July contract prices for polyethylene (PE) fell by 3-4 cents/lb (USD 66-88/tonne, EUR 46-62/tonne), based on weak domestic demand, sources said on Friday. With the reduction, prices for linear low density polyethylene (LLDPE) butane film were at 71-74 cents/lb DEL (delivered), low density polyethylene (LDPE) film prices were at 80-82 cents/lb DEL and high density polyethylene (HDPE) blow moulding prices were at 69-71 cents/lb DEL, for small-volume buyers, as assessed by ICIS.

Producers had announced earlier in the month that prices would fall by 3 cents/lb for all grades of PE resins. However, many customers were able to argue for an extra cent, depending on the amount of the decrease they were given in June.

At least two buyers indicated prices fell by as much as 5 cents/lb for certain grades, but those decreases were not believed to be representative of the market.

Producers have already announced plans to raise prices by 5 cents/lb on all grades by 1 August. However buyers say they expect it will be difficult for producers to push through an increase before September.


MRC

(ICIS) -- Stocks in the European chemicals sector were lifted by a rally in global markets on Monday after US leaders reached an agreement to avoid the country defaulting on its debt obligations.
President Barack Obama said that under a proposed deal, which will be put to a vote in the US Senate and the House of Representatives later on Monday, the US debt ceiling would rise by up to USD 2.4 trillion (EUR 1.7 trillion).

In early afternoon trading, the Dow Jones Euro Stoxx Chemicals index was trading up 0.75%, indicating that many of Europe's major chemical companies had experienced some gains. Among Europe's top producers, Germany-based major BASF's shares had risen 1.34%, France-based Arkema was up 1.03%, while shares of Norway-based fertilizer producer Yara grew 1.15%
European stock markets reacted positively to US Congressional leaders agreeing on raising its borrowing cap.


MRC

(ICIS) -- Taiwan's Formosa group has shut a 540.000 bbl/day refinery and 520.000 tonne/year Group II base oil plant in Mailiao following a fire at a propylene pipeline over the weekend, although its No 2 and No 3 crackers continue to operate at high rates, company sources said on Monday.
The shutdown of the base oil unit has forced the company to cancel all its term and spot base oil shipments scheduled to load after the first week of August.

The company originally planned to export around 45 KT of the product in August. However, the group is running its No 2 and No 3 naphtha crackers ⌠normally, a company source added.

⌠There is no impact on the crackers, said a company source, referring to the 1.03m tonne/year No 2 and 1.2m tonne/year No 3 crackers at the complex. The crackers are operating at a rate of 90-100%, he added.

The refinery and naphtha crackers belong to the group's Formosa Petrochemical Corp (FPCC).
A fire broke out at a hydrogen pipeline at the group's Mailiao petrochemical complex on 27 July and as a result, FPCC was unable to restart its No 1 cracker.


MRC