Oleochemicals, biofuels face higher 2012 feedstock price

(ICIS) -- After bottoming out in September, the global fats and oils market is expected to see another upward price cycle in 2012, led by projected lower production volumes and increased consumption of biofuels, an industry consultant said on Wednesday.

⌠World fats and oils supplies are sufficiently ample until December 2011. Expect soybean oil export from South America to be reduced because of higher domestic consumption for biofuels," said Thomas Mielke, director of Germany-based agriculture consulting firm ISTA Mielke.

Growing global dependence on palm oil for food use will rise in the next several years, which will strain feedstock use for oleochemicals and biofuels, Mielke said. About 76m-77m tonnes of palm oil will be required in 2020, compared with 45.5m tonnes seen in 2010, he added. ⌠This means an annual average palm oil output growth of 3.1m tonnes will be needed worldwide. Indonesia has to bear that increase in consumption demand, as Malaysia palm oil production is already strained, said Mielke.

As of 2010, biofuels already accounted for 12% of the global fats and oils consumption, at 171.6m tonnes. Chemicals account for 4%, or 7.7m tonnes, of global fats and oils' use.


MRC

(SIBUR) -- Construction of the PVC plant in Kstovo of the Nizhniy Novgorod region, implemented by RusVinyl LLC, is actively under way and continues according to schedule. Actually, piling works are fully completed; concrete laying is near completion, laying of underground pipeline has started. At the construction site framing of production facilities has begun as well.

Kuehne+Nagel logistic company delivered two VCM storage tanks by river to the port. The third tank will arrive within the next few weeks. The gross weight of one such bullet is approximately 255 tons; it is 36.5 meters long, 8.75 meters wide and 8.16 meters high. In order to deliver this heavy equipment to the construction site RusVinyl carries out works for improvement and widening of certain sections of roads.

RusVinyl LLC is a 50/50 joint venture established by SIBUR Holding and SolVin for the construction of a 330 thousand t/y Polyvinyl Chloride (PVC) Integrated Plant in Kstovo of Nizhniy Novgorod region.

SIBUR is the leader of Russian petrochemistry, which operates from gas processing to the production of monomers and entire range of polymers, synthetic rubbers, specific chemical products as well as the processing of plastics.

MRC

(MRC) -- In September, Russian producers increased output of polypropylene (PP) to 59,000 tonnes. Following the nine months results, overall PP production in Russia increased by 10% and made 510,600 tonnes, according to MRC ScanPlast.


In September, only Nizhnekamskneftechem suspended PP facilities for a scheduled turnaround. As a result, the company's PP output decreased by 11% compared to August. Other Russian producers increased PP production. The biggest production growth was reached by Stavrolen - about 16% compared with August.

In September, Russian producers reduced production of copolymers of propylene in favor of homopolymers of propylene. In general, this year the structure of PP production remains without big changes: a share of homopolymers made more than 80% of total production.

Following the nine months results, overall PP production by Russian producers made 510,600 tonnes, which was by 10% more year on year.


The biggest increase in production - about 25% - was demonstrated by Neftechemiya (Kapotnya). Such a high growth index was due to a long shutdown for a turnaround last year. Besides, Stavrolen increased PP production by 14%. Other Russian producers didn't show such a significant production volumes.

MRC

(ICIS) -- Prices of styrene butadiene rubber (SBR) in India are set to weaken further in the fourth quarter as feedstock butadiene (BD) prices tumble and car sales fall, industry sources said on Tuesday. Prices of non-oil grade 1502 SBR have plummeted by $700/tonne (┬511/tonne) since mid-September to $3,400-3,500/tonne CFR (cost & freight) India in the week ended 12 October, ICIS data showed. This is in line with the more than a $800/tonne drop in feedstock BD prices to $2,300-2,400/tonne CFR NE (northeast) Asia during the same period. Market players expect prices of SBR 1502 to fall further to around the $3,000/tonne level.

MRC

(Sabic) -- Visitors to this year's Fakuma plastics exhibition will have an opportunity to see several of SABIC's latest polypropylenes running on different injection moulding machines of its machine manufacturing partners, producing thin-walled packaging and medical components. The grades presented at Fakuma are supplied on a global scale from our facilities in Europe, Saudi Arabia and Asia.

SABIC's new grade for thin-wall injection moulded packaging, SABIC PP Flowpact FPC 100, will have its public premier at the show. Stork Plastics Machinery B.V., the Dutch specialist in high-speed injection moulding machines, will use it to make margarine tubs with 0.45-mm wall thicknesses in a four-cavity mould installed on a Stork E 2500-850 full-electric machine with a 2500-kN electric clamp unit.

KrausMaffei will be running SABIC QR673K, part of the SABIC PP Qrystal grade family, at their stand. The material has state-of-the-art part aesthetics and a broad processing window which enables lower processing temperatures, thus reducing energy consumption and cycle times.

SABIC PP Flowpact FPC 100 will also be used by ARBURG GmbH + Co KG, to make in-mould labelled 1.2-litre pails. A two-cavity mould will be running on an Arburg Allrounder 720 H with a clamp force of 3200 kN.

MRC