PP market in Russia grows steadily

MOSCOW (MRC) -- PP consumption in Russia steadily grows last year, and will form about 650 kt in 2010 - according to MRC Annual reports.

In 2009 PP market in Russia has shown a desirable crisis steadiness getting a 2% development (totals 634 kt). In Q1 2010 the demand for this polymer was lower than in Q4 2009 on the level 160 kt (-3%). However, this is a seasonal factor, in total PP consumption in Russia shows stable positive trends. So, in Q1 2010 comparing with same period in 2008 the growth formed 6%. Packaging and film production sectors served as drivers of growth in 2009.

By year results, the production has grown by 20% to the volumes of 595 kt. Production capacities of the domestic producers are almost 100% charged last times. Supplies into the domestic market increased 4% in Q1, and exports formed about 26 kt this period. However, imports into China, Turkey, Ukraine and other countries almost totally disappeared in March and April (see mrcplast.com from May 13).

During year 2009 many companies invested into PP processing equipment (total investments formed about USD 86 mln. There are many projects in packaging and multilayer film (see mrcplast.com from April 16) among them. Auto and geotextile production and others are also actively developing. This defines the active PP demand provoking imports increase (see mrcplast.com from May 14), promoted by falling EURO.

MRC

For more detailed event analysis and PP market development forecasts please refer to MRC Annual reports.

NOVA Chemicals improves net income in Q1 2010

(NOVA) -- In the first quarter of 2010, NOVA Chemicals generated net income of $94 million as compared to a net loss of $123 million for the first quarter of 2009 and net income of $17 million in the fourth quarter of 2009 as margins and demand for products improved.

The Olefins/Polyolefins business unit generated $185 million of operating income in the first quarter of 2010 versus an operating loss of $38 million during the first quarter of 2009. The year-over-year improvement was due to higher sales volumes and selling prices that increased more than feedstock costs.

The INEOS NOVA joint venture operating income improved from breakeven in the first quarter of 2009 to operating income of $16 million in the first quarter of 2010.

MRC

Plastkard presents new PVC-S grade

VOLGOGRAD (Plastkard) -- In terms of its strategic development, Plastkard has invented a new recipe format of vinyl chloride polymerization process and samples of high-molecular PVC-S with K=80. The absorption mass of PVC plasticizer with K=80 forms at least 30g for 100g of PVC; thermostability at 160╟С is at least 30 minutes. This polymer has very low quantity of defects like ⌠fish eye, and has quite narrow allocation of PVC particles. The new polymer can be converted in compositions with plasticizer and without it.

PVC with K=80 has undergone preliminary testing at Nikochim Group's plants. Test results have shown potential of the new PVC grade as regards production and technical purposes. Finished goods made of it should have high physical and mechanical properties and good stability at different temperatures (from -60╟С to +180╟С). Research has given grounds to organize production of the new PVC grade.

MRC

Borouge signs contract for US$ 1.075 bln petrochemical project

(Borealis) -- Borouge, a joint-venture between the Abu Dhabi National Oil Company (ADNOC), one of the world's major oil companies, and Borealis, a leading provider of chemical and innovative plastics solutions, and The Linde Group, a world leading gases and engineering company, formally signed a US$ 1.075 billion contract for the construction of a 1.5 million tonnes per year (t/y) ethane cracker at Borouge's production site in Ruwais, Abu Dhabi, in the UAE.

The new cracker, the third of its kind to be built by The Linde Group for Borouge in one decade, complements the existing 600,000 t/y ethane cracker at the plant. After completion of the new cracker, Borouge will have the world's largest ethane cracker complex, setting a new benchmark for the industry.

MRCMRC Reference

Borealis. The share in the Russian market in 2008:

polyethylene - 4.1% (including HDPE - 4.7%, LLDPE - 8.7%);
polypropylene - 3.2% (PP-impact - 7.5%).

Annual sales growth in Russia over the last 5 years:
polyethylene - 11%;
polypropylene - 6%.

Leader in polymers processing technologies:
extrusion coating;
cable extrusion;
injection molding.

Nymex to launch new plastics contracts

(prw) -- The New York Mercantile Exchange will launch two new plastics futures contracts on June 6.

The 24-month contracts will be for a blow moulding grade of high density polyethylene and a film grade of linear low density PE. They will be financially-settled swaps that do not include physical delivery.

The Nymex has offered futures contracts on blow moulded HDPE and on three grades of homopolymer polypropylene since late 2008.

MRC