BR prices in China may strengthen through September

(ICIS) -- Butadiene rubber (BR) prices in China may strengthen through September, with a spate of major turnarounds at domestic facilities likely to shave third-quarter supply in the market by about 13%, industry sources on Thursday.

The estimated loss of supply was more than 20 KT, they said. In July, China's actual BR output stood at about 45.3 KT, 21% lower than the total production in June, according to data from Chemease, an ICIS service in China.

BR offers were at CNY35.500/tonne (USD 5.512/tonne) this week, market sources said. In the week ending 29 July, spot prices were assessed at CNY35.200-35.800/tonne, according to ICIS.
Before the spate of shutdowns in the third quarter, China's BR prices were hovering at CNY30.700/tonne-31.000/tonne, ICIS data showed.

A number of Chinese BR producers are due to conduct annual maintenance at their plants, while one producer shut down production in June for an indefinite period because of squeezed margins stemming from soaring prices of feedstock butadiene (BD), industry sources said.

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(Business Standard) -- Mukesh Ambani-led Reliance Group has revived its interest in West Bengal, after a hiatus of nearly three years. After the Mamata Banerjee-led government took charge, Ambani spoke at length with West Bengal commerce and industry minister Partha Chatterjee and discussed a range of proposals from food processing and gems & jewellery to refineries and Haldia Petrochemicals.

Reliance Industries (RIL) officials, however, pointed out that unless the state government chalked out a concrete policy, proactively, the company does not see investments in petrochemicals or refining coming through.

⌠There is enough in the project pipeline, an official said on condition of anonymity. An liquefied natural gas terminal in the east coast could be considered, though, he said.

Reliance's interest in Bengal is not new. Ever since Haldia Petrochemicals project was conceived during Jyoti Basu's tenure, Reliance had been keen to get involved. Mukesh Ambani had come down to meet former chief minister Buddhadeb Bhattacharjee and industry minister Nirupam Sen in 2006, soon after the Assembly elections. Reliance has small parcels of land for its agri-retail plan, conceived during Buddhadeb Bhattacharjee's time. It had announced an investment of Rs 4,000 crore for its agri-retail plan in 2006, but had to put it on the back burner in the wake of hurdles posed by the Forward Bloc, a constituent of the Left Front.

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(Arabian Oil and Gas) -- Qatofine Company Limited is expected to resume operations at its linear low density polyethylene plant, on 5 August, according to Saudi web portal Argaam. The plant, located in Messaieed Industrial City in Qatar, has a production capacity of 450 KTa of linear low density polyethylene (LLDPE), was shut down on 12 July due to a technical problem, which was supposed to be fixed on the same day but it was delayed till the 5th.

Qatofine is a joint venture between QAPCO (63%), Total Petrochemicals France (36%) and Qatar Petroleum (1%).

The project's cost was estimated at USD 1.3bn and started commercial production in May 2010, and exported the first shipment in July 2010.

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(Arabian Oil and Gas) -- Russia matched post-Soviet record oil production recorded in May this year by pumping 10.26 million barrels per day (bpd) of crude in July, according to a Reuters report. Russia also pumped 10.26 million barrels per day (bpd) in October 2010. The June rate was 10.2 million bpd.

The country remains the world's top oil producer, with rival Saudi Arabia rapidly closing the gap as increased production comes on stream.

By comparison, Saudi Arabia pumped as much as 9.8 million bpd in June, an increase of as much as 900,000 bpd in response to the loss of Libyan supply after it failed to persuade OPEC of the need for a coordinated increase, said the report.

But while the kingdom had the spare capacity to ramp up production by nearly 10 percent in a month, Russia's top oil companies are struggling to grow by just a few percent a year.

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(Plastics Today) -- Dow Chemical Company introduced its Enlight polyolefin encapsulant film technology just one year ago but already demand has grown to the point the company needs new capacity, and globally. As a result, the plastics and chemicals supplier now plans to add capacity for these films in Germany and Thailand to support the extrusion line already running in Findlay, OH.

Dow (Philadelphia, PA) says the new lines will be installed at its facilities in Map Ta Phut, Thailand, and in Schkopau, Germany, with both to be built in 2012. "Converting solar energy into an efficient source of electricity is an area of expertise Dow will continue to develop," says Brij Sinha, global market manager for photovoltaics, performance plastics. "Demand for photovoltaic modules has been growing at about 30% per year, and is expected to continue at this rate for the next several years." The Findlay facility began production late last year.

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