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(BASF) -- BASF will invest in a world-scale production site for acrylic acid, butyl acrylate and superabsorbent polymers (SAP) in Camacari, Bahia, Brazil. It will be the first acrylic acid and superabsorbents plant in South America. With an investment volume of more than EUR 500 million, it is the largest investment in BASF's century-long history in South America.
In addition, BASF will start to produce 2-ethyl-hexyl acrylate, an important raw material for the adhesives and special coatings industries, in its existing chemical complex in Guaratingueta, Sao Paulo . This will be the first plant for this product in South America.
With the new acrylic acid complex, BASF aims to ensure the supply for important products as: superabsorbents for diapers, acrylic resins for coatings, textiles and adhesives and products for civil construction.
The construction of the new acrylic acid complex will start in 2011 employing about 1,000 individuals during construction. Production is expected to begin in the fourth quarter of 2014, generating 230 direct and 600 indirect jobs. The production for 2-ethyl-hexyl acrylate in Guaratingueta is expected to start in 2015 on the basis of Acrylic Acid produced in Camacari.
BASF to invest in production of acrylic acid, butyl acrylate and SAP in Brazil
Peak of pipe PE imports in Russia to fall to October
(MRC) -- Major Russian producers of pipes are actively contracting polyethylene in foreign markets for September - October production. The peak of PE pipe imports is expected in October, but it will be lower than a year ago, according to MRC DataScope.
Last year the peak of imports fell to October and made around 14 KT. Such significant import volumes were boosted by high demand and planned shutdown of Kazanorgsyntez HDPE production in September.
This year is not going to be an exception. The peak of PE pipe imports is also expected to be in October, but the figures will be lower compared to last year period.
Prices for September - October deliveries of European coloured PE100 are settled in the range of EUR 1.100-1.200/mt, FCA. In Asia the material for August deliveries is offered, on average, for USD 1.600 - 1.660/mt, FOB.
Despite ongoing shutdown for maintenance of Kazanorgsyntez, the only Russian producer of coloured PE 100, there is sufficient PE offer in the market.
Price offer for the Russian coloured PE 100 in the spot market is, on average, in the range of RUB 61.000-62.000/t, including VAT, FCA Kazan.
US propylene contracts for August settled flat with July
(ICIS) -- US propylene contracts for August settled flat with July, market sources said on Wednesday, confirming an initial agreement reached late last week. The settlement keeps polymer-grade propylene (PGP) at 78 cents/lb (USD 1.720/tonne, EUR 1.187/tonne) and chemical-grade propylene (CGP) at 76.50 cents/lb, as assessed by ICIS.
US producers had originally sought a 3 cent/lb increase for August, but buyers resisted the initiative and pushed for a rollover after crude oil prices began to fall earlier this month.
US propylene contracts usually settle at the beginning of the month being negotiated. In the spot market, refinery-grade propylene (RGP) for August traded at 68 cents/lb this week, flat with deals done during the week ended 12 August.
MRC
Asia's base oil market to see weak buying interest for a few more weeks
(ICIS) -- Asia's base oil market is expected to see weak buying interest for a few more weeks in the wake of volatile oil prices and the uncertain global economic outlook, market sources said on Thursday.
Traders and finished lubricant makers said they are delaying or minimising their purchases for cargoes loading at the end of August and in early September as they prefer to wait for a clearer price direction from the crude oil market.
Buyers usually build up their inventories in autumn, which is the peak season for lubricant production
Singapore ex-tank prices for SN150 fell by USD 10/tonne (EUR 6.90/tonne) at the high end of the range to USD 1.390-1.440/tonne in the week to 16 August, according to data from ICIS. The prices were dragged down by increased Chinese supply and weak demand.
MRC
PE buyers in Europe have little appetite for increases in August
(ICIS) -- Polyethylene (PE) buyers in Europe have little appetite for increases in August, citing low demand and ample availability as reasons to reject higher offers, several said on Thursday. PE producers had initially targeted increases of EUR 50-100/tonne (USD 72-145/tonne) for the month, following a EUR 30/tonne rise in the August ethylene contract price, but falling crude prices and a poor economic outlook in Europe have led some to abandon the idea of price increases altogether, said buyers.
Some HDPE blowmoulding buyers said that there could be a slight rise in prices, as margins have been poor in this sector and discussions so far have been tough. However, increases are expected to be limited.
The mood in the European PE market has changed several times in August as crude prices have shifted, along with expectations for the September ethylene contract price.
MRC