External suppliers reduced PVC prices for the Russian market

(MRC) -- By late August PVC prices in foreign markets have reduced slightly. However, dollar's rate growth and lower prices of the Russian resin resulted in a significant reduction of suspension purchases in foreign markets, according to ICIS-MRC Price report.

In early August, Chinese suppliers of acetylene PVC decreased export prices to USD 1.050 - 1.070/mt, DAP Dostyk. Russian companies attempts to bargain for even lower prices on Chinese PVC are still of no effect. According to Chinese suppliers, a further price reduction is unprofitable.

Serious decline in suspension prices in August from some Russian producers, as well as dollar growth against ruble made Chinese PVC uncompetitive. As a result, in August Russian companies significantly reduced their resin purchases in China.

PVC producers in the U.S. reduced export prices for September cargoes to USD 1.060 - 1.080/mt, CFR St. Petersburg and Novorossiysk. Despite this, many Russian companies lost their interest in purchasing North American PVC.

Soon a further decline in PVC imports from the USA and China is expected. However, there won't be a sharp price fall due to debts for July and August contract obligations.

MRC

(ICIS) -- Bayer has received several inquiries regarding the use of its West Virginia sites for an ethane cracker, a top company executive said on Thursday. Bayer said in December it was exploring the idea of potential investors using one of its two sites in West Virginia for a cracker using ethane derived from Marcellus shale.

⌠We have had several inquiries, said Greg Babe, head of Bayer MaterialScience and CEO of Bayer Corp in the US. Bayer Corp, headquartered in Pittsburgh, Pennsylvania, is the US subsidiary of the Bayer group. ⌠Starting in December of last year, when our offers have hit the news waves, we have had several inquiries, ongoing discussions, since then, Babe said.

Shell announced in June it was developing plans for a world-scale cracker in the Appalachian region of the US, but it has not made a site decision. Babe said he was open to either leasing or selling land on one of the Bayer sites for a cracker. An ⌠outspoken supporter of reinvigorating manufacturing in the United States, Babe said the rich ethane content of the Marcellus shale gas reserves makes West Virginia a logical place for an ethane cracker.

MRC

(ICIS) -- Asia's naphtha backwardation is likely to strengthen on expectations that Taiwanese Formosa Petrochemical Corp (FPCC) would restart its long overdue 700 KTa No 1 naphtha cracker at Mailiao sometime in September, traders said on Friday. The expectations of a restart have raised hopes of higher demand for naphtha in a market already quite short of molecules, traders said on Friday.

The time spread between the first-half October and first-half November contracts was assessed at USD 6/tonne (EUR 4.20/tonne) on Thursday, the strongest since 16 May when the inter-month spread was at USD 7/tonne, according to ICIS.

The naphtha crack spread versus October Brent crude futures was valued at USD 135.60/tonne, up by USD 6.35/tonne on the previous week.

MRC

(ICIS) -- US-based catalyst producer WR Grace's recent loss in the bidding for a business drew no immediate comments from other possible buyers on Wednesday. Earlier this year, WR Grace was in talks to make what it called a strategic acquisition, one that would significantly improve the company's business plan and growth strategy in the upcoming years, according to court documents. WR Grace did not elaborate on other details of the possible deal, including whether its catalyst or building-materials division would acquire the business.

On 29 July, WR Grace learned that it was not the successful bidder in the auction. As company policy, WR Grace does not comment on acquisitions. If the auction was for a catalyst business, possible bidders could include Albemarle, BASF, INEOS and LyondellBasell, all of which produce catalysts.

Albemarle would not comment on the auction. BASF and LyondellBasell did not immediately respond to requests for comment. A spokesman for INEOS's North American business was unaware of any acquisitions by the company. As far as the seller, it could be Dow Chemical. Earlier this year, sources in the financial community said Dow was trying to sell its licensing and catalyst business.

MRC

(Reuters) - LG Chem , South Korea's top chemical company, said on Thursday that its joint venture would invest USD 4 billion to build a petrochemical complex in Kazakhstan.

The joint venture with state-run Kazakhstan Petrochemical Industries (KPI) will build ethylene and polyethylene plants with an annual capacity of 840 KT and 800 KT respectively and start commercial production from the facilities in 2016, LG Chem said in a statement.

MRC