Formosa to shut crude distillation unit and two secondary units for planned maintenance

(Reuters) - Formosa Petrochemical Corp. will shut a 180,000 barrels per day (bpd) crude distillation unit and two secondary units for planned maintenance at its 540,000 bpd refinery in Taiwan from December. The shutdown of the refinery could place some pressure on gas oil and kerosene stocks as December is usually the peak demand period for the fuel as the region's top oil consumers China and Japan use it as heating fuel for winter.


The maintenance at CDU No. 2, a vacuum distillation unit (VDU) of 80,000 bpd capacity and a 52,000 bpd VGO hydrotreating unit, will last for 40 days from the start of December, a company spokesman said on Friday.


Formosa restarted a third CDU at its refinery early September after the refinery was shut for safety reasons following a fire in end-July at a secondary unit that damaged some infrastructure, including power cables.


Formosa has also restarted the second of two residual fluid catalytic crackers (RFCC) this week after a prolonged shutdown since the end-July fire. Both RFCCs are of equal capacity at 84,000 bpd.


MRC

Solvay commissioned the largest hydrogen peroxide plant in the world

(Solvay) -- Solvay announced that MTP HPJV (Thailand) Ltd, its hydrogen peroxide joint venture with The Dow Chemical Company (Dow), has successfully commissioned the largest hydrogen peroxide (HP) plant in the world. The production process of the new plant in Map Ta Phut, Thailand, is based on Solvay's proprietary, high-yield hydrogen peroxide technology that enables such unique, large-scale plants to benefit from advantages in both specific investment and production costs. Solvay's HP technology also brings significant environmental advantages such as reductions in energy consumption and in waste water.


The plant has a capacity of over 330,000 tons per year of hydrogen peroxide at 100% concentration and serves mainly as a captive raw material source for the manufacture of propylene oxide (PO) by Dow and Siam Cement Group (SCG). Propylene oxide is primarily used to produce propylene glycol, polyurethanes and glycol ethers. It is the second world-scale HP plant dedicated to PO production, the first being the 230,000 tons HP plant (Antwerp, Belgium) commissioned at the end of 2008, which serves a Dow and BASF HPPO plant. Producing PO with HP offers unique and sizeable economic and environmental benefits compared with conventional propylene oxide production technologies.


MRC

Spot butadiene prices in Asia to fall further this month

(ICIS) -- Spot butadiene (BD) prices in Asia look set to fall further this month as suppliers are forced to offload surplus material given reduced regional production at major downstream synthetic rubber and acrylonitrile-butadiene-styrene (ABS) sectors, industry sources said on Friday. BD shed about $700/tonne (┬518/tonne) last month, ending September at $2,700-2,800/tonne CFR (cost and freight) northeast (NE) Asia, according to ICIS data.


⌠We expect the BD price to fall to around the $2,000/tonne CFR NE Asia level by the end of October and may even drop below this level in early November, given the current bearish market sentiment, a trader said.


About 10,000 to 15,000 tonnes of BD from Europe and the US are scheduled to arrive in Asia in October and November, competing with Asian supply, which is struggling to find buyers in the current weak market.


Concerns over the ongoing European debt crisis and a faltering US economy have prompted production cutbacks of synthetic rubbers and ABS resins in Asia. China, Japan, South Korea and Taiwan are export-oriented economies that count Europe and the US as their major markets.


MRC

In USA MMA contract prices to fall by 3.8% from September

(ICIS) -- US October methyl methacrylate (MMA) contract prices appear set to fall by 3.8% from September, sources said on Friday. Several buyers and one producer said they are seeing October MMA prices at $1.25-1.30/lb ($2,756-2,866/tonne, ┬2,039-2,121/tonne) FD railcar (free delivered via railcar) and $1.27-1.32/lb FD tank truck. This would represent a fall of 5 cents/lb from September levels. However, pending further confirmation, prices continue to be assessed by ICIS at $1.30-1.35/lb FD railcar and $1.32-1.37/lb FD tank truck.


The biggest factor pushing prices down was softer feedstock costs. Although the US October barge acetone contract has not been settled, further upstream the US October benzene contract fell by 68 cents/gal and the US October propylene contract fell by 14 cents/lb.


MMA demand is also softer, sources said, but mostly because of seasonal factors. A producer said that year-on-year demand is comparable or healthier for most markets. Demand from the coatings market has taken its typical seasonal fall, sources said, and the acrylic sheet market has also softened slightly.


MRC

DuPont to increase the polymer finishing capacity of Vamac ethylene/acrylic elastomer

(Plastemart) -- DuPont Performance Polymers, Geneva, Switzerland, has announced that it will increase the polymer finishing capacity of Vamac ethylene/acrylic elastomer by 50% in response to strong and growing demand for use in automotive powertrain applications, such as turbo charger hoses, air ducts, oil cooler hoses, tubing and gaskets.


Patrick Ferronato, global automotive manager for DuPont Performance Polymers, said that, ⌠The industry's drive to improve the performance of smaller, more efficient engines to meet fuel economy and emissions regulations is driving up temperatures under the hood. Vamac is a natural replacement for conventional rubbers due to its excellent heat and oil resistance. The new finishing line will be located in La Porte, Texas, USA, and is scheduled to be completed by the end of 2011 with product available in 2012.


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