In Ukraine, the import duty on virgin PVC will grow up to 5%

MRC - A group of deputies of the Verkhovna Rada has introduced in parliament committee the bill N 9241 from Oct 04, 2011 to amend the law "On Customs Tariff of Ukraine" in order to increase import duties on PVC-S to 5%, according to MRC analysts.


The changes deal with the introduction of import duty on virgin PVC (FEACN code 3904 10 00 00) to 5% with the aim to develop domestic chemical industry, create the conditions to strart production of new chemical raw materials and their processing, domestic producers support and increase of the inpayments to the state budget.

Previously, MRC analysts expected that the list of goods subject to import duty to be introduced can enter HDPE and PVC-S, as well as other products of the polymer group. Economically reasonable level of import duty, according to MRC analysts could be 6.5%, since it agreed with WTO requirements.

This law project plans to implement the import duties on Jan 1, 2012. According to the financial and economic bill grounds, the introduction of 5% fee will bring only in 2012 more than USD 3 mln of additional income to the Ukrainian state budget. The adoption of the project is expected to satisfy domestic producer demand for virgin PVC, increase loading capacity and reduce import dependence.

The explanatory note to the bill predicts following economic figures for the Ukrainian PVC market in 2012: production - 285 KT, import - 55 KT, export - 175 KT, consumption - 160 KT.

Before this year May, Ukrainian converters were completely dependent on PVC imports from Europe and the USA. Following last year results, PV-S imports made 125.2 KT, PVC-E - 28.6 KT. Over the eight months, these figures were 85.6 KT and 21.42 KT respectively.

In May, Karpatneftechem launched a new PVC-S production of 300 KT/year capacities . The investments in PVC production complex made USD 234 mln. Over less than five months the total PVC-S production in Ukraine has exceeded 53.6 KT.



By: MRC analyst, Sergey Karaychentsev.

www.mrcplast.com

Average 2012 Europe PET prices similar to Sept '11 - customers

LONDON (ICIS) -- The average 2012 price of polyethylene terephthalate (PET) in Europe is unlikely to vary much from current levels, customers predicted at a PET industry forum on Thursday.


⌠Speculation is affecting prices... The market is finding a new level around ┬1,300/tonne ($1,733/tonne), a buyer said.
Various customers at Global Service International's (GSI) ninth annual ⌠PET day in Artimino, Italy, estimated the PET price would average ┬1,375/tonne FD (free delivered) Europe.
The September 2011 price is assessed at ┬1,350-1,390/tonne, up ┬50-70/tonne compared to August, according to ICIS.



Converters agreed that 2012 would see the ┬1,300s/tonne and between them came up with an average of ┬1,335/tonne in a pole conducted during the conference.
Bottlers, however, envisaged PET prices averaging at ┬1,275/tonne in 2012.
Based on a raw material calculation using paraxylene (PX) and monoethylene glycol (MEG), PET was pegged in the same pole at ┬1,430/tonne for next year.



In the short-term, those customers willing to comment are expecting to see some sort of an increase in October because of potentially higher feedstock prices.


MRC

Average 2012 Europe PET prices similar to Sept '11 - customers

October/07/2011

LONDON (ICIS)--The average 2012 price of polyethylene terephthalate (PET) in Europe is unlikely to vary much from current levels, customers predicted at a PET industry forum on Thursday.

⌠Speculation is affecting prices... The market is finding a new level around ┬1,300/tonne ($1,733/tonne), a buyer said.
Various customers at Global Service International's (GSI) ninth annual ⌠PET day in Artimino, Italy, estimated the PET price would average ┬1,375/tonne FD (free delivered) Europe.
The September 2011 price is assessed at ┬1,350-1,390/tonne, up ┬50-70/tonne compared to August, according to ICIS.



Converters agreed that 2012 would see the ┬1,300s/tonne and between them came up with an average of ┬1,335/tonne in a pole conducted during the conference.
Bottlers, however, envisaged PET prices averaging at ┬1,275/tonne in 2012.
Based on a raw material calculation using paraxylene (PX) and monoethylene glycol (MEG), PET was pegged in the same pole at ┬1,430/tonne for next year.
In the short-term, those customers willing to comment are expecting to see some sort of an increase in October because of potentially higher feedstock prices.


MRC

Belarus and China to take part in the development of an oil field in Venezuela

(RIA Novosti) -- Belarus and China are to take part in the development of an oil field in Venezuela, Belarusian state television said on Wednesday. The project was discussed during a visit by a delegation of Belarusian officials to the Latin American state late last week, the report said.


"We have received approval to work in a large oil-rich region together with Venezuela and China and extract hundreds of thousands of barrels of oil a day," Belarusian presidential aide Viktor Sheiman was quoted as saying.


In line with the agreement, the Belarusian-Venezuelan joint oil production company Petrolera BeloVenezolana will develop two more oil deposits in Venezuela, he said, adding that oil production will "increase many times" as a result.

Belarus is currently involved in oil production at seven oil and six gas deposits in the Latin American country. By 2011, the extraction of oil is expected to reach 1.2 million tones, while gas extraction is planned at 1 billion cubic meters.


MRC

German Bischof + Klein to build second plant in Saudi Arabia

(PlastEurope) -- In Saudi Arabia, flexible packaging and technical film manufacturer Bischof + Klein is planning to build a second plant in the Rabigh petrochemicals complex. "The Saudi Arabia region is developing into an important location for the production of plastics," said Volker Pfennig, managing director of the B+K Group. "We want to share in this growth."


The German packaging and film company has been represented in the Arabian Peninsula region for ten years through B+K Middle East Company. The joint venture with the Saudi companies H.A. Al-Zamil & Bros Co, Al-Rajhi House Enterprises and Ahmed A.M. Al-Ohali produces FFS packaging solutions on the basis of co-extruded films as well as stretch hood and shrink films in Al-Khobar near Dammam. According to data from market research company Applied Market Information, B+K holds a 30% stake in the jv. Its biggest customer is the petrochemicals group Sabic, but it also supplies companies in the neighbouring states.


At the end of October, B+K Mec will start up two additional FFS film lines, making a total of eleven FFS lines and two machines for the "SmartFlex" stretch hood range. The capacity will then rise to 24,500 t/y of FFS film and 5,400 t/y of stretch film.


MRC