Ban of pouring beer into PET bottles reduces the Russian PET market by 30%

(MRC) -- In case of adoption a new Customs Union regulation in Russia, which bans pouring beer in PET bottles, the Russian PET market volume will lose 30%, according to MRC analysts.


Russian brewers are among leading consumers of PET. The share of beer makes about 30% of total consumption of PET bottle pellets in Russia. About 31% make producers of carbonated soft drinks, 18% - producers of water. The rest of volumes are used in production of finished products such as bottled oil, juices, milk and so on.


In 2010, total volume of PET pellets in the Russian market made about 580 KT where the share of bottle PET was 520 KT. So, in case of new regulation adoption, which bans using PET bottles for bottling beer, the consumption of pellets just in Russia will decrease by 30% or by 156 KT.


Beer market has been stagnating for the third year. Following the results of the summer season 2011, other segments of PET packaging demonstrated slumping sales too. Indulgent summer compared with the heat wave of 2010 was the main reason for that.


According to MRC analysts, adoption of the amendment even more will aggravate the situation of Russian producers of PET pellets and PET preforms, taking away a significant share of their market, and cause serious losses to the Russian petrochemical industry in a whole. Fringe producers of caps for PET bottles and polypropylene producers will also be affected. Only in 2010, by MRC estimates, total production of beer caps in PET bottles made around 17 KT.


Here is given infographics, which shows the structure of Russian PET market and the possible affect of Customs Union amendment. Infographics can be downloaded here.


MRC

Shanghai SECCO Petrochemical halted operations at its naphtha cracker

(ICIS) -- China's Shanghai SECCO Petrochemical halted operations at its 1.2m tonne/year naphtha cracker and several downstream plants overnight following a blast at an olefins pipeline, sources close to the company said on Friday.


The cracker is the single largest ethylene plant in China. The cause of the blast at the company's olefins pipeline in the petrochemical complex in Jinshan district of Shanghai is under investigation, with no definite restart dates set for the shut plants.


⌠It is too early to say when the cracker will restart, said another source close to the company. The company does not need to import ethylene spot cargoes since some of the derivative units were also taken off line, he said.


MRC

European acetone spot prices drifted lower this week

(ICIS) -- European acetone spot prices drifted lower this week with many market participants on Friday blaming a tip in the supply/demand balance as well as concerns over an economic slowdown.
While some sellers said their demand was steady and "as expected" for September, others spoke about a much slower-than-expected start to September.


In terms of pricing, spot numbers have been on a gradual decline since peaking in April this year at ┬1,100-1,185/tonne FD (free delivered) NWE (northwest Europe).


During this time, spot business hit a record high of ┬1,400/tonne ($1,944/tonne) into Italy. However, this week prices dropped to the mid-to-low ┬700s/tonne in parts of northwest Europe.


But in the trade and distribution sector, a reseller said levels of ┬750-780/tonne FD NWE, were ⌠old numbers and that in order to move any cargoes now he would have to offer at a lower level.
Another Netherlands-based reseller said that to move any material it would have to buy at ┬680-690/tonne on a free carrier alongside (FCA) basis.


MRC

BASF establishes lightweight composites team for cooperation with the automotive industry

(BASF) -- To show its commitment to the growing importance of lightweight design in the automotive industry, in mid-2011 BASF established a lightweight composites team. The group focuses on the development of marketable materials and technologies that are suitable for manufacturing high-performance fiber-reinforced parts for automotive applications. More metal can be replaced only through use of lightweight yet strong composite materials and parts, and in this way - regardless of the propulsion system in the vehicle - reduce energy consumption and CO2 emissions even further.


Via its broad product portfolio, BASF is able to investigate three different plastic matrix systems simultaneously and intends to develop tailor-made formulations in close cooperation with customers. "We can build here on BASF's know-how in the areas of epoxy, polyurethane and polyamide chemistry, want to exploit the synergies in the team and will be making a double-digit million euro investment in development in the coming years", explained Willy Hoven-Nievelstein, BASF's head of the Engineering Plastics Europe business unit.


MRC

ConocoPhillips to include its CP Chem stake in the spinoff of its refinery business

(ICIS) -- US-based ConocoPhillips confirmed on Thursday its plan to include its Chevron Phillips Chemical (CP Chem) stake in the spinoff of its refinery business. That spinoff will become a new downstream company that will combine three of ConocoPhillips's core businesses: refining, marketing and transportation (RM&T); chemicals; and midstream.


ConocoPhillips laid out its plans for the downstream spinoff, which it plans to complete by the second quarter of 2012, during the Barclay's Energy Conference in New York City. The new downstream company's portfolio will include about $50bn (┬36bn) in assets.


The RM&T segment has 16 refineries, 12 of which are in the US, with a Nelson complexity average of 12. They have a capacity of 2.4m bbl/day, and about 10,000 branded marketing outlets.
The chemicals segment, which includes the CP Chem stake, is North America's largest producer of high density polyethylene (HDPE), the company said. It is also North America's fourth largest ethylene producer. CP Chem is a 50:50 joint venture made up of ConocoPhillips and Chevron.


MRC