PET imports to Russia in September hit a record low

(MRC) -- In September PET imports to Russia declined by 40% and made about 8,000 tonnes. It is a record minimum not only for this year - similar small amount of granulates import was last observed in September 2002, according to MRC DataScope.


Imports was expected to reduce at the end of the third quarter due to the situation in the domestic market. However, market participants could not predict such a significant decline. Volumes contracted from the largest Russian producers of PET performs cut nearly by twice compared to August.

Decline in imports to Russia was observed in the products from the South Korean KP Chemical and SK Chemicals.

The ruble devaluation having started in early August and growing price quotations of PET in Asia also had an impact on decrease of supply. As a result, the Russian producers offered better prices for the domestic market in contrast to the Asian producers.

In September, some Russian producers of PET reported a slight increase in buying activity of some converters on the back of trade reorientation at the domestic feedstock. However, significant products remnants and off-season kept from boosting significant changes in the market.


While import is falling to record lows, export of granulates has shown a record growth. In September, exports of domestic PET increased by 6,000 tonnes and made about 16,500 tonnes, which is the maximum value of shipments to the foreign markets in the history of PET production in Russia.


MRC

(Plastemart) -- Film and sheet versions of its BIOFRONT highly heat-resistant bioplastic, which already is available as fiber and resin, developed by Teijin Limited opens up many new possibilities for this versatile, plant-based, high-performance bioplastic. BIOFRONT film and sheet exhibit high transmission properties due to a unique stereocomplex crystalline structure achieved with high-purity L-lactate and D-lactate polymer made from renewable plant resources. These film and sheet can be used for a wide range of applications, including packaging and printing substrate requiring high transmission and strength; optical film requiring high transmission, low heat-shrinkage and optical isotropy (uniform properties in all directions); white reflective film and printing substrate requiring strong light scattering; transparent substrate, decorative film, insert molding and blister packaging requiring high transparency and non-crystalline properties.

MRC

(Lanxess) -- LANXESS is strengthening its commitment to renewable raw materials. The German specialty chemicals company aims to produce phthalate-free plasticizers from bio-based succinic acid from 2012 onwards. Its strategic partner is the U.S. company BioAmber, Inc., based in Minneapolis, Minnesota. BioAmber is a global leader in succinic acid generated on the basis of renewable resources. Together, the two companies are developing plasticizers, whose cost-effectiveness and safety profile make them sustainable alternatives to phthalate-containing formulations.

BioAmber produces succinic acid through the fermentation of renewable raw materials. The process developed by BioAmber consumes considerably less energy than the production of succinic acid using fossil fuels, is significantly more cost-effective and has a better carbon footprint. In the future, the company plans to use waste from the agriculture industry and sugarcane processing as starting materials.

⌠Our cooperation with BioAmber is a unique opportunity to launch a new generation of plasticizers on the market that meet all legal regulations and can also score in terms of environmental aspects and sustainability, said Jorge Nogueira, head of LANXESS' Functional Chemicals business unit that manufactures phthalate-free plasticizers.

MRC

(ICIS) -- Two oil traders have pleaded guilty to defrauding LyondellBassell Industries and its Houston Refinery subsidiary of more than $80m (┬58m) in an oil shipping conspiracy, the US Department of Justice said on Thursday.

The department said that oil traders Bernard Langley, 54, of the UK, and Houston, Texas, resident Clyde Meltzer, 65, admitted to conspiracy and wire fraud in a scheme that involved overcharging LyondellBassell and Houston Refinery for crude oil freight costs.

In a case that was brought to the attention of prosecutors by LyondellBassell, federal attorneys had alleged that Langley and Meltzer conspired with a LyondellBassell employee, Jonathan Barnes, to charge above-market shipping rates on the company's crude oil imports from Venezuela. Barnes, who pleaded guilty in March this year, had served as the marine chartering manager for LyondellBassell's Houston refinery starting in 2006.

According to the department's charges, beginning in late 2006 Barnes agreed to give chartering contracts to shipping companies that Langley and Meltzer had set up in the British Virgin Islands and elsewhere.


MRC

(ICIS) -- Weak polyethylene (PE) and polypropylene (PP) demand in Europe has led to increased export activity and some low-priced spot deals at prices that many players consider below the current market level, sources said on Thursday. ⌠European demand is very disappointing, but we hope to reach our projected volumes by selling to export markets, said one producer.

Targeted markets include Africa and South America, with some volumes also secured to Asia, with low density polyethylene (LDPE) and PP seen as the most commonly traded material at present.

FOB) (free on board) levels below $1,400/tonne (┬1,022/tonne) are said to be on offer for PP homopolymer, and levels barely above this level are said to be available for LDPE exports.

Most exports are being done directly from producers, without the involvement of traders, but some say current levels are too low for them, as it would be below variable costs.

European buyers and sellers are reluctant to push for a big price reduction in their monthly discussions with producers, as any price drop will have to be passed on to buyers' own customers downstream, and would probably not generate increased activity, given the economic situation in Europe at present.


MRC