Global urea prices slide on economic turmoil and uncertainty

(ICIS) -- The economic turmoil of the past week has seen urea prices fall in most regions, market sources said on Friday. Crude oil losses and stock market volatility have reinforced the fragility of the current global economic situation.

Buyers, still haunted by the economic crash of 2008, have stepped out and prices are sliding.
⌠The financial turmoil has roiled our markets too as some with positions look to cash out any way possible, said a US-based trader.

This week an Egyptian sales tender for 25 KT saw only 8 KT actually sold at USD 500/tonne (EUR 350/tonne) FOB (free on board), USD 18/tonne below sales last week.

In the US, granular urea barge prices slipped by USD 20-25/short ton to USD 470/short ton FOB Nola (New Orleans) during the week, before staging a late rally because of positive crop data.

MRC

(Plastics Today) -- Plastics packaging processor Hutamaki has agreed to acquire the Brazilian film extruder and converter Prisma Pack Industria de Filmes Tecnicos e Embalagens Ltda (Camacari,Brazil). The privately owned Prisma Pack, founded in 2001, is a market leader in hygienic films in Brazil and also serves demand for food packaging and other applications. Hygienic films are mainly used in personal care products, such as disposable diapers, feminine protection and incontinence diapers.

Prisma Pack's net sales in 2010 were approximately EUR 40 million. The company has a strong track record of sales growth since its beginning in 2003. The company employs approximately 200. Huhtamaki's Brazilian subsidiary will acquire all of Prisma Pack for a debt-free purchase price of EUR 20 million.

The acquisition is expected to be completed by the end of August 2011.

Huhtamaki Group (Espoo, Finland) had 2010 net sales totaling EUR 2 billion.

MRC

(LANXESS) -- Lanxess has lifted its full-year guidance for 2011 after achieving record results in the second quarter. The specialty chemicals company now expects EBITDA pre exceptionals to grow about 20 percent year-on-year after previously forecasting a growth of 10-15 percent. EBITDA pre exceptionals in the second quarter rose 26 percent year-on-year to EUR 339 million.

Net debt at the end of the second quarter rose 49 percent from the end of 2010 to about EUR 1.4 billion mainly due to the acquisitions of the EPDM rubber business and Syngenta's material protection business. Operating cash-flow more than tripled to EUR 212 million reflecting the strength of the company's operational business.

MRC

(Mitsubishi Engineering-Plastics) -- The 2011 Frost & Sullivan European Customer Value Enhancement Award in the Smart E-Meter Market is presented to Mitsubishi Engineering-Plastics (MEP). The company's willingness to partner with its customers to serve this market has been key to its achieving the leading position. At the same time, MEP entered the Smart e-meter market with the clear intention of partnering not only with its immediate customers, but also with participants further along the value chain such as Smart e-meter and energy companies in order to deliver sustainable solutions.

MEP is actively involved at the design stage of the meters, enabling the company to understand exact customer requirements and needs as well as work towards cost optimization with respect to design from the initial stage itself. The reduction in the enclosure wall thickness is one of the key advantages that MEP offers through its integrated working approach, which aims at reducing material consumption, without compromising on other properties such as ductility, hydrolytic stability and fire retardance.

The Frost & Sullivan Award for Customer Value Enhancement is presented to the company that has demonstrated excellence in implementing strategies that proactively create value for its customers with a focus on improving the return on the investment that customers make in its services or products. This award recognizes the company's inordinate focus on enhancing the value that its customers receive, beyond simply good customer service, leading to improved customer retention and ultimately customer base expansion.

MRC

(Plastemart) -- Eastman Chemical Company has completed acquisition of Sterling Chemicals, Inc., a single site North American petrochemical producer, for USD100 mln in cash. This acquisition includes Sterling's plasticizer and acetic acid manufacturing assets in Texas City, Texas. Eastman plans to modify and restart the currently idled plasticizer manufacturing facility to produce non-phthalate plasticizers. This additional capacity will enable the company's Performance Chemicals and Intermediates segment to serve the growing market demand for non-phthalate alternatives.

MRC