Cefic downgraded its 2011 growth forecast for EU chemicals production to 2.5%

(ICIS) -- Cefic has downgraded its 2011 growth forecast for EU chemicals production to 2.5% from 4.5% because of a slowdown in the second quarter and a likely stall in the third quarter, the trade association said on Friday. Cefic originally forecast in November last year that EU chemicals output growth would be 2.5% in 2011, but it was then revised to 4.5% growth in June 2011. The forecast for EU chemicals output growth for 2012 remains unchanged at 2.5%, it added.

Cefic said that data from the last seven months of 2011 show chemicals production at 3.2% below the 2007 peak, but forecasts it will reach the pre-crisis threshold toward mid-2013. Meanwhile, EU manufacturing production growth has also been revised down to 5% in 2011 and to 2.5% in 2012.

However, EU exports are holding up well, the association said. In the first half of 2011, the EU had a net trade surplus of EUR 20.4bn (USD 27.6bn) with trading partners, EUR 3.2bn less than in the same period of 2010.

MRC

(MRC) -- In August, Russian companies increased PP imports to 14 KT. Import growth reffered both to PP-homo and PP-random. In general, over the eight months, total PP imports to Russia made 126 KT, that by 18% up year on year, according to MRC DataScope. In August PP-homo imports rose to 6.4 KT. High prices of raffia from Turkmenistan resulted in suspension of its deliveries, and the ongoing ruble devaluation against major world currencies made imports of Turkmen PP-homo even more unattractive for the Russian companies. LyondellBasell strengthened its position in the Russian market of injection molding grades of PP-homo. In general, following January - August results, total imports of PP-homo rose by 16% to 68.7 KT.

August deliveries of impact PP copolymers from foreign markets, by contrast, declined by 18% to 2.8 KT compared to July. Main reduction in imports fell at extrusion grades, in particular, for PP pipes production. Over the eight months, total impact PP copolymers supplies from foreign markets exceeded 25.5 KT, showing a 24% increase year on year.

Last month import of PP-random reached 3 KT. In August, Russian companies actively increased PP-impact supplies of pipe grades due to the work stoppage of the Russian producers. In general, this year the total import of PP-random made a little over 19 KT, that by 3% up year on year.

In August, Russian producers increased export supplies to 6.5 KT, including countries of Common Customs Union. In general, over the eight months, the exports of Russian PP made nearly 35 KT.

MRC

(Plastemart) -- Formosa Plastic Corp. (FPC) plans to invest in petrochemicals and shale gas exploration through its overseas subsidiary FPC USA, to raise deployment in the U.S., as per CENS. Mature and commercialization of low-cost shale gas exploration technologies will enable FPC USA to boost production capacity of ethylene and propylene. Investment outlay is estimated at US$400 mln to build a 400,000 tpa ethylene plant.

FPC holds 22.6% stake in FPC USA, which owns 300 natural-gas wells and will expand annual capacities of ethylene and propylene by 2.1 mln tons and 1.15 mln tons, respectively by the end of 2013.

MRC

(Nexeosolutions) -- At the forthcoming Fakuma, Nexeo Solutions will formally present itself at a major European trade show. The new independent company will set out to connect customers and suppliers of chemicals, plastics, composites and environmental services. With operations across North America, Europe and Asia, Nexeo Solutions aspires to be the global leader in the industry.

The company, which was formed from the distribution division of Ashland Inc. earlier this year, has an extensive global infrastructure, experienced team and efficient logistic network enabling customers to connect to the opportunities of the markets.

According to CEO David Bradley, the company will focus exclusively on distribution and will be using service as a differentiator. The company's product portfolio encompasses materials for all prime processes, including injection molding, blow molding, extrusion and rotational molding. Nexeo Solutions offers a broad product offering complemented with the ability to provide technical support to aid in design assistance and process optimization.

MRC

(Socar) -- On September 28, SOCAR President Mr. Rovnag Abdullayev met with Mr. Charles Hendry, UK Minister of State for Energy and Climate Change. Welcoming the guests, Mr. Abdullayev spoke about the role of oil and gas industry in the development of the country. He said that foreign oil majors, including BP, had played an important role in the achievements of Azerbaijan's oil and gas sector in recent years. He noted with approval the experience of beneficial cooperation between SOCAR and BP on the Azeri-Chirag-Gunashli, Shahdeniz, and Baku-Tbilisi-Jeyhan projects. The companies represented in the British delegation expressed interest in the projects in the Azerbaijani energy sector. The participants heard about preparations to build the new oil and gas refinery and petrochemicals complex and about major ecological projects carried out by SOCAR. SOCAR President said that Azerbaijan was open to foreign investment and carefully considered cooperation proposals from all companies.

MRC