In China prices of benzene and xylenes to weaken

(ICIS) -- Spot prices of benzene and xylenes in the domestic Chinese market look set to weaken, as supply will increase once a huge aromatics facility at Huizhou in Guangdong province resumes operations, while demand is still weak, market sources said on Tuesday.


The facility owned and operated by China National Offshore Oil Corp Oil (CNOOC) subsidiary, CNOOC Oil & Petrochemicals, is the country's second biggest aromatics plant. It is expected to come back on stream in the middle of the month after an outage of about four months. The facility can produce 350,000 tonnes/year of benzene, 220,000 tonnes/year of toluene and 900,000 tonnes/year of xylenes, a company source said. The company is also expected to resume operations at its 850,000 tonne/year paraxylene (PX) plant at the site at around the same time.


With more supply coming into the market amid soft demand, spot prices of aromatics products are likely to come off, market sources said.


MRC

European ethylene cracker margins fell to the lowest level since April

(ICIS) -- Contract ethylene cracker margins based on naphtha feedstock have fallen to the lowest level since April on a combination of a lower November contract price, firmer naphtha prices and the strength of the US dollar against the euro, ICIS margin analysis showed on Monday. Contract margins fell by 30%, dropping ┬162/tonne ($222/tonne) week-on-week because of a 4% rise in feedstock costs.


A slight rise in naphtha values was magnified by a 3% strengthening of the US dollar.
Spot margins fared a little better, supported by higher spot ethylene euro-based prices and co-product credits. However, spot margins remain significantly below contract margins, at a ┬347/tonne disadvantage.


The November ethylene contract settled at ┬1,095/tonne FD (free delivered) NWE (northwest Europe), down ┬20/tonne from October.


MRC

Mexichem is in discussions to take an ownership stake in a new US ethylene cracker

(ICIS) -- Mexico-based polyvinyl chloride (PVC) producer Mexichem is in discussions to take an ownership stake in a new US ethylene cracker, a senior executive said on Monday. ⌠We are in the very preliminary stages of discussions to partner on a condo cracker in the US, said Juan Francisco Sanchez Kramer, strategic procurement manager at Mexichem.


Sanchez Kramer spoke to ICIS on the sidelines of the 31st annual meeting of the Latin American Petrochemical Association (APLA).⌠We are talking to three potential partners on this, he added.
Two of the potential partners have announced firm plans to proceed with crackers in the US based on greater shale gas availability, while the third has announced its intention to build a cracker, noted Sanchez Kramer.⌠The cracker would have to be on the Gulf Coast, so it is close to our VCM [vinyl chloride monomer] and PVC plants in Mexico, he said.


Companies that have announced firm plans to build a cracker in the US include Netherlands-based LyondellBasell, US-based Dow Chemical, and Anglo-Dutch company Shell. However, Shell announced its intention to build its cracker near the Marcellus shale gas formation in the northeast US.
Many others, including US-based Chevron Phillips Chemical and Brazil's Braskem have announced they are studying a new US cracker.


Mexichem is interested in obtaining a share in the cracker that would allow it to take 500,000-600,000 tonnes/year of ethylene to produce ethylene dichloride (EDC), which would be used to make vinyl chloride monomer (VCM) and then PVC.


MRC

New Borsoft PP grade makes squeezable tube innovation a reality

(Borealis) -- Borealis' first polypropylene (PP) grade for squeezable cosmetics tubes, Borsoft SL600MO, is the material innovation behind an inspirational, sustainability-focused packaging solution for the cosmetics sector called CLUBE.


Developed by Plasticum Group, a leading European manufacturer and designer of innovative plastic packaging solutions, CLUBE is a one piece squeezable tube with an integrated closure and in-mould label (IML) that cuts material usage by up to 40%. CLUBE is unique in enabling all three elements to be produced in one single bi-injection moulding production step, instead of the traditional three, for more efficient production and a series of knock-on productivity, design and environment-related benefits.


Borsoft SL600MO was created specifically by Borealis, a leading provider of chemical and innovative plastics solutions, for this project. Tailored to meet the needs of the production process and the tube, the grade was optimised for outstanding flowability, good flexibility, excellent contact transparency and outstanding environmental stress crack resistance (ESCR).


MRC

In November Ukrainian PP production is expected to grow

(MRC) -- In November, Ukrainian producer Linik plans to increase the output of polypropylene (PP) to 9,000 tonnes. Following the October results, the total volume of the polymer made 6,900 tonnes, according to MRC ScanPlast.


In October, Ukrainian producer Linik increased volumes of PP production to 6,900 tonnes, that was by 25% more compared with September. In recent months Ukrainian producer of PP has undergone difficulties with production. Last month, Linik cut back PP production, due to technical problems at the refinery. In August, a week-long stop for a turnaround as well as the accident led to a decline in production volumes of PP.

The 9 months' volumes of crude oil refinery by Linik made about 4 million tonnes. The converter processed only 969,000 tonnes and 555,000 tonnes of the feedstock for the Ukrainian market. This year, the company changed its business model and implemented programs to improve the work efficiency, which allowed TNK-BP to have $17 million net profit over the nine months of 2011.

A significant increase in the production of PP is expected in November. This month Linik planned to process 100,000 tonnes of different feedstock for the domestic market. According to preliminary estimates, the planned total processing volume of crude oil will allow the company to increase the output of PP to 9,000 tonnes. The 9 months' volume of production of PP by Linik made more than 77,000 tonnes, that by 22% more year on year.


MRC