US expandable polystyrene prices rose this week

(ICIS) -- US expandable polystyrene (EPS) prices rose this week as September price increases found partial acceptance, market sources said on Tuesday. US EPS prices were assessed by ICIS at 91-98 cents/lb ($2,006-2,161/tonne, ┬1,484-1,599/tonne) DEL (delivered) for block and package material, up 3 cents/lb from August prices.

Producers in the US had sought as much as 5 cents/lb, with BASF and NOVA seeking 5 cents/lb for modified or block EPS, which contains a flame retardant, and a 3 cent/lb increase for non-modified, or package EPS, effective 1 September.

Other producers, including Flint Hills Resources and Styrochem, announced a 5 cent/lb increase across the board, regardless of grade.

Initially, several producers had sought the increases on 15 August, but pushed the price hike back to 1 September to meet competitive situations. The price hike was related to the August contract price for feedstock benzene, which was up by 44 cents/gal from July.


MRC

(ICIS) -- Titanium dioxide (TiO2) prices in Asia are likely to continue to increase in the fourth quarter, with global producers hiking offers by USD 500/tonne (EUR 365/tonne) because of tight supply and rising raw material costs, market sources said on Wednesday.

But buyers said they may not require strong volumes in the last three months of the year, having secured adequate inventory in the third quarter, when TiO2 prices had a USD 300-500/tonne increase. The majority of producers are bullish that TiO2 prices will not halt their uptrend despite the traditional slowdown in downstream demand in the fourth quarter, market sources said.

TiO2 is mainly used as white powder pigment in the production of paints, coatings, plastics, paper, inks, fibres, food and cosmetics.

Kronos was first among international TiO2 makers to announce a USD 500/tonne price hike for all its products sold in Asia Pacific, effective 1 September.

MRC

(ICIS) -- The European monoethylene glycol (MEG) market is still undecided about which of the two initial September contract settlements to follow, sources said on Wednesday. ⌠I think in the case of doubt the benefit should go to the customer, not the supplier, a contract customer said.

He added that EUR 1,105/tonne (USD 1,514/tonne), the lower of the two numbers, would be preferable to the EUR 1,110/tonne, as a EUR 57/tonne increase from August is already significant. The market has two first settlements that were concluded on 1 September.

⌠I would assume that in the end one [of the contracts] will be confirmed, said a producer. There were suggestions that if four other parties were to agree a figure in the middle of the two existing contract agreements, the matter would be resolved. However, a second customer said this scenario was unlikely.

A third customer has proposed EUR 1,105/tonne to its supplier, who has rejected it. The August contract at EUR 1,048/tonne was agreed at the same time as the initial September prices were announced.


MRC

(RussianOilCompanies) -- Bashneft board of directors discussed establishing a joint venture, United Petrochemical Company, with the Austrian Petrochemical Holding GmbH. It will be a project company, set up to research and analyze the current situation and investment attractiveness of Russian petrochemical industry and to work out plans and proposals for the development of this sphere at Bashneft.

The parties will contribute to the EUR 10 mln share capital of the new company proportionately to their shareholdings: Bashneft - 75% and Petrochemical Holding GmbH - 25%.

The establishment of this joint venture is a legal consolidation of Bashneft and Petrochemical Holding cooperative intentions. Petrochemical Holding GmbH is headed by Yakov Goldovsky, who has considerable experience of working in petrochemical sphere.

MRC

(UzDaily.com) -- Two new joint ventures on production of components for cars were created in Uzbekistan in cooperation with the Korean companies. Both of them will be located in Andijan's Bobur OJSC.

Uzavtosanoat joint stock company and Austem Co. Ltd of South Korea created a joint venture, Uzauto-austem, on production of wheel disks and chassis junctions for new models of cars, produced at GM Uzbekistan. The project cost is USD 23 million. The charter capital makes up USD 8.6 million. Annually, the venture will produce 800,000 wheel disks and 100,000 chassis junctions.

Avtosanoat invest LLC, Uzavtosanoat JSC, and Erае cs limited founded Uzerae climate control JV with charter capital of USD 7 million. The enterprise will produce 250,000 units of radiators, air conditioner, ventilation, and heating systems a year. The project cost is USD 20 million.

It is expected that both enterprises will be commissioned in 2013.

MRC