Russian polystyrene to increase in September

(ICIS-MRC) -- Russian producers have announced increase of September prices for polystyrene in the domestic market, according to ICIS-MRC Price Report. In July-August prices of high-impact polystyrene (HIPS) and general-purpose polystyrene (GPPS) remained unchanged.
A number of scheduled maintenance stops in Nizhnekamsk and Salavat reduced polystyrene supplies to the Russian market, but it had insignificant impact on prices.


Last month European producers increased polystyrene export prices nearly by EUR 80 - 100/mt. Prices of domestic products in the Russian market remained RUB 60.000 - 64.000/t, including VAT, CPT Moscow, for GPPS, and RUB 64.000-66.000/t, including VAT, CPT Moscow, for HIPS.


According to many Russian market players, high demand for polystyrene in late August as well as quite high prices of imported feedstock had to result in growing price of Russian polymer nearly by RUB 2.000 - 3.000/t. In early September, the largest producer of GPPS and HIPS Nizhnekamskneftechem increased material costs nearly by RUB 2.000/t for September deliveries.
Current prices are RUB 65.000-67.000/t, including VAT, CPT Moscow, for GPPS, and RUB 67.000-69.000/t, including VAT, CPT Moscow, for HIPS.


GPPS of Gazprom neftechem Salavat is traded for RUB 60.000-61.000/t. Market players expect the producer to increase prices to RUB 62.000-62.500/t, which will keep the difference between Salavat and Nizhnekamsk materials within RUB 4.000/t. HIPS production at Gazprom neftechem Salavat restarted only last week. Now consumers may buy only natural HIPS for RUB 61.000-62.000/t. Production of white HIPS is expected to restart shortly.


GPPS by PG Prof is still poorly presented in the commercial market. Main volume of the material is processed at Penoplex, which is a producer of construction and decorative finishing materials. The rest of the material provide contract deliveries. Quotation of material remains at RUB 67.000-68.000/t.


MRC

India paid USD 5 billion Iran oil debt

(Arabian oil and gas) -- India has paid off the last of its USD 5 billion debt to Iran which accrued due to problems with payment in the wake of international sanctions against the Islamic Republic.


"Although all the USD 5 billion of India's oil debt has been cleared, because of selling oil again Iran will always be a creditor of that country," India's Central Bank Governor Mahmoud Bahmani told the official IRNA news agency.


In order to get around US-backed sanctions against Iran, Indian companies are making the oil payments in euros via Turkey's state-owned Halkbank, according to Indian offcials cited by Reuters. Bahmani said a payment-in-kind system offered by India was rejected by Tehran.


Iran has been slapped with sanctions in reaction to its nuclear program, which the US and EU says is for the development of nuclear weapons, something Tehran denies.


MRC

Kuwait's production of the crude oil exceeded 2.8 million barrels per day in August

(Arabian oil and gas) -- Kuwait's production of the crude oil exceeded 2.8 million barrels per day in August, the Minister of Oil and State Minister for National Assembly Affairs Dr. Mohammad Al-Busairi has said in a statement to Kuwait News Agency (KUNA). Kuwait's current output capacity stands at 3.50 million bpd, he added.


Price of the oil on international spot markets would have jumped to much higher levels had OPEC producers, and specifically Kuwait and Saudi Arabia, not increased their production of the crude, Al-Busairi added in his remarks to KUNA.


According to Reuters, Kuwait has not produced over 2.80 million bpd since its output peaked at 2.85 million bpd in September 2008, just before oil demand dipped in the global economic crisis.


MRC

Mexico's ALFA completes acquisition of Wellman's PET Resin business

(Plastemart) -- ALFA, S.A.B. de C.V. (ALFA) subsidiary DAK Americas, LLC has completed the acquisition of the PET Resins business of Wellman, Inc. The acquisition is expected to bring DAK's total PET resin production capacity to more than 4.3 bln lbs pa in the Americas. The acquisition includes PET resin production facilities in Bay St. Louis, Miss., which has a production capacity of about 950 mln lbs pa of PET resin. The acquired facilities will be integrated into DAK Americas Resins Business Unit, also which has U.S. operations in Wilmington, N.C.; Fayetteville, N.C. and Charleston, S.C.


Alvaro Fernandez, President of ALFA, commented: ⌠This transaction allows our subsidiary DAK Americas to increase efficiency, gain additional product flexibility and broaden product range to better serve the needs of our customers.


MRC

Japan's Sumitomo Chemical started maintenance work at its sole naphtha cracker

(Reuters) -- Japan's Sumitomo Chemical Co said it started maintenance work as planned on Thursday at its sole naphtha cracker in Chiba, near Tokyo. Maintenance work on the cracker, with ethylene production capacity of 380 KTa, is due to finish on Oct. 17.


Mitsubishi Chemical Co separately said the No.2 453 KTa naphtha cracker at its Kashima plant, north of Tokyo, entered regular maintenance on Aug. 30, as planned. The turnaround is due to end in mid-October, a company spokesman said.


MRC