LANXESS expects a better year-on-year financial performance in the third quarter

(ICIS) -- German producer LANXESS said on Wednesday it expects a better year-on-year financial performance in the third quarter, while reiterating its full-year target of delivering a 20% growth in pre-exceptional earnings before interest, tax, depreciation and amortisation (EBITDA).
In the third quarter of 2010, the company posted a more than five-fold increase in net profit to EUR 118m (USD 162m), with pre-exceptional EBITDA up 71% year on year to EUR 244m. The company had a record quarterly net profit of EUR 181m in the second quarter. LANXESS said it has earmarked EUR 130m in research expenses, up 15% year on year.

MRC

(ICIS) -- Softening demand, lower feedstock costs and imports pushed down spot prices for US styrene butadiene rubber (SBR) this month, market participants said on Wednesday. SBR spot ranges for non-oil grade 1502 and oil-extended grade 1712 dropped by 5 cents/lb (USD 110/tonne, EUR 80/tonne) FOB (free on board) USG (US Gulf) from August. September SBR spot ranges for non-oil grade 1502 were 185-200 cents, while oil-extended grade was 170-180 cents/lb.

Concerns about the global economy and plummeting feedstock values have kept buyers on the sidelines, a producer said.

Buyers will continue to delay purchases if butadiene (BD) prices continue to slide and could push SBR values even lower, the producer said.

The recent softening in BD spot prices, which in September snapped a nine-month uptrend in the US market, is pointing to a major reduction in October, sources said, predicting a two-digit fall for the US contract.

MRC

(ICIS) -- The Asian styrene monomer (SM) market will remain under pressure for the rest of the year as a result of persistently weak demand in the region, producers and traders said on Thursday.
Spot prices for October and November parcels slipped below USD 1,450/tonne (EUR 1,059/tonne) CFR (cost & freight) China this week, compared with prices at above USD 1,500/tonne CFR China a month ago, according to ICIS data.

Demand from the downstream styrenics sector is weak, although China's manufacturing season for exports typically lasts for three months until the end of September each year.

The ongoing debt crisis in the eurozone and the weak economic outlook in the US has dampened demand for China-made products. At the same time, tightened credit conditions in China have also curbed domestic demand for resins.

The outlook for the SM market remains weak, given that the fourth quarter is an off-peak season for styrenic resins. Therefore, most players are cautious about the near-term outlook. Prices in the region are weak despite the tight supply conditions in the Asian market.

MRC

(BASF) -- For the reflector used in an automotive interior lighting application, the international automotive supplier Delphi has recently started to employ a high-performance plastic from BASF. After being injection molded, the complex and highly detailed part is metallized by means of physical vapor deposition (PVD), a process with demanding requirements for the plastic. The relatively new Ultrason E 2010 MR is a polyether sulfone (PESU) characterized by its good mold release properties. The reflector is manufactured by Goletz GmbH, located in Kierspe (Germany, North Rhine-Westphalia).


MRC

(MRC) -- In August PET imports to Russia expectedly fell by 9 KT compared to July on the back of seasonal factor which equaled to 38% reduction of import supplies, as per MRC DataScope.

In August under the pressure of a seasonal factor Russian converters and trade companies imported about 14 KT of granulates while in the previous month it made 23 KT. Supplies form South Korea reduced by 5 KT and made 6 KT. Import of Chinese granulates fell by 3 KT and made 6.6 KT.

Traditionally supplies of import products reduce in the last month of summer which depends on the end of the season. Converters start forming main stocks in March-April before a summer season. This year many market players expected record figures of last summer. Some players forecasted even bigger growth of sales in the segments of final consumption, such as non-alcoholic carbonated drinks and water. Before a feverish season during February-April market players imported about 116 KT which was 47 KT more than last year figures. Although this year bottlers' sales were affected by a late and rainy summer as well as decreased average temperature.

The market of non-alcoholic carbonated drinks didn't demonstrate expected growth. Kvas market decreased for the first time over last six years. Nevertheless, taking into account last year increased sales as an exclusion, consumption growth is pointed nearly in all sectors of PET consumption, except beer that has been stagnating for the third year.

Moving stocks contributed to surplus of stock and decreased imports in July and August. Reduction of import parameters in summer of 2011 tells about considerable overstocks of polymer.

Surplus of import feedstock also had a negative influence on sales of the Russian producers of PET. Because of indefinite situation in the market, some Russian producers preferred to reorient at export to the countries of the Western Europe. In August overall export of granulate made about 10 KT which 223 as much as last year figures and twice as much as July exports.

MRC