ABS and SAN resins values in Asia tumbled to their lowest levels this year

(ICIS) -- Acrylonitrile-butadiene-styrene (ABS) and styrene-acrylonitrile (SAN) resins values in Asia tumbled to their lowest levels this year because of weak demand from the key Chinese market, and amid declines in raw material prices, industry sources said on Tuesday. Spot values have been on a downtrend over the past two months, plunging below USD 2,000/tonne (EUR 1,520/tonne) CFR (cost & freight) northeast (NE) Asia for the two resins products in the week ended 30 September, according to ICIS.

The Chinese market is closed for the week-long celebration of its National Day on 1-7 October.
Demand for China-made products has been soft as its major export destinations, the US and Europe, are struggling with a persistent weakness in its economy and a mounting debt crisis, respectively. This translated to lower consumption of resins.

Meanwhile, declining feedstock prices have also weighed on ABS and SAN values. Key feedstock styrene monomer (SM) prices slipped below USD 1,350/tonne CFR China this week, down from above USD 1,500/tonne CFR China a month ago, according to ICIS.

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(ICIS) -- US ethylene contracts for September settled at 54.50 cents/lb (USD 1,202/tonne, EUR 902/tonne), down by 1 cent/lb from August, market sources said on Monday. The fall in the September contract price follows a decline in spot values of over 20% for the month as a whole.
Market participants had expected ethylene contracts to drop in September, but only slightly, after a surge in ethane prices last month largely offset a 22% drop in ethylene spot prices. Spot prices for prompt deliveries were assessed on 30 September at 49.00-50.25 cents/lb DEL (delivered).


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(ICIS) -- The Asian monoethylene glycol (MEG) market will face uncertainty when China's week-long holiday ends, as supply will be limited because of plant turnarounds, while demand will be weak as a result of the grim global economic climate, market sources said on Tuesday. Prices of MEG closed at USD 1,230-1,235/tonne (EUR 935-939/tonne) CFR (cost & freight) CMP (China Main Port) on 30 September, down by USD 90-100/tonne from 9 September when prices hit a 44-month high, according to ICIS data. Trading has slowed this week, sources said, as the China market is closed for the National Day holiday from 1-7 October.

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(Arabian oil and gas) -- Saudi International Petrochemical Company (Sipchem) has started construction operations to build plants of Phase III projects. ⌠The first of these two plants produces ethylene vinyl acetate (EVA) and low density polyethylene (LDPE), the company said in a statement. ⌠The second plant produces ethyl acetate and butyl acetate. Both plants will be located in Jubail Industrial City, it added.

The 200 KTa vinyl acetate plant will be operated by the International Polymers Company Limited, an affiliate of Sipchem, founded in 2009, owned by Sipchem (75%) and Hanwha Chemical. of South Korea (25%).

The total cost of the project is estimated at approximately USD 800m, and slated for start up during the second quarter 2013.

GS Engineering & Construction is the main contractor of the project, and has already started works on the site. The project will utilize ExxonMobil's technology. Sipchem has already signed a technology license agreement with ExxonMobil.

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(BASF) -- BASF SE and INEOS AG have received approvals from all relevant antitrust authorities for the formation of the joint venture Styrolution. Closing is effective as of October 1, 2011. From this date on Styrolution operates independently.

BASF and INEOS have combined their global business activities in styrene monomers (SM), polystyrene (PS), acrylonitrile butadiene styrene (ABS), styrene-butadiene block copolymers (SBC) and other styrene-based copolymers (SAN, AMSAN, ASA, MABS) as well as copolymer blends into the new joint venture, Styrolution. The business with expandable polystyrene is not part of the transaction. BASF and INEOS will retain their respective businesses.


The company headquarters will be located in Frankfurt/Main, Germany. In the JV 50% of the shares will be owned by BASF and 50% by INEOS. Styrolution will have sites in Germany, Belgium, France, Sweden, Korea, India, Thailand, the USA, Canada and Mexico. In 2010 the joint venture had pro forma sales of about EUR 6.4 billion and employed approximately 3,400 people.

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