PET imports to Russia to fall down

(MRC) -- Reduction of PET imports to Russia continues for the fourth month. In October, granulates imports fell to 6.7 thousand tons, which was minimum for this year, as per MRC DataScope.


The volumes of PET granulate imports have been falling since July. The reason for that is a surplus of the material in the domestic market. Over February-April, converters and trading companies seriously overestimated the potential of expected consumption in summer. The market was entered by the volumes that significantly exceeded the last year figures. On the back of the general economic situation and not hot summer, the sales in the sectors of the finished consumption reduced, in particular, the beer market fell down. In this connection, inventories at the market players' stocks keep on influencing the import deliveries as well as sales of the Russian producers within the country.


Reduction of materials prices in the Asian markets doesn't help stimulate the demand. In early September, the Asian material was offered, on average, for $1,755/т FOB, while this week PET offer for exports was announced within $1,500/т FOB. Over the two months, PET in the Asia markets cheapened by $250/ton.


Despite moderate granulates prices, the Asian producers of PET say about a weak activity of the Russian market players. This allows to talk about low imports of PET till the year end.

Reduction of supplies of imported material (to 6.7 thousand tons in October) is a positive factor for the domestic producers of the granulate. Though on the back of the material oversupply to the market, domestic plants aren't able to use current possibilities. As per the market players' opinion, this year will finish with significant inventories at stocks.


The fall is observed in October export deliveries as well. In October PET exports reduced nearly by three times and made 5.3 thousand tons against 16.5 thousand tons in the previous month. Nevertheless, over the ten months, overall exports of PET from Russia and the Western Europe reached 60 thousand tons. Such active covering of export markets was achieved due to the launch of a new PET plant in Kaliningrad with a total capacity of 220 thousand tons.


Perspectives of development of polymer markets, pricing issues and other important aspects will be discussed at The Polymers Summit-2011, which will be held in Moscow on November 30, 2011 at the Ritz Carlton Hotel. The Summit will be organized by MRC with the support of ICIS. The main idea of the Summit is to find a "the golden mean" between producers and converters. When producers receive exactly such margin of production, which helps them to invest in production expansion in order to substitute polymers imports, and the converters receive such price of feedstock that helps them to compete imported finished products. The Summit site gives an access to the live video of the Summit, speakers" presentations, as well as opportunities to ask questions or make appointments to any Summit partcipant.


MRC

PVC-S imports to Russia in October down to 24 thousand tons

(MRC) -- Import supplies of suspension PVC (PVC-S) in October expectedly reduced to 24 thousand tons. The seasonal factor will keep on influencing reduction of suspension imports to Russia, according to MRC DataScope.


The peak of PVC-S imports has been in August for the second year. September reduction of contract prices by the Russian producers as well as excessive offer of the resin in the market since August resulted in a significant decline of PVC purchases in the external markets. In September import supplies of the suspension to Russia went down to 38.7 thousand tons. In October the figure reduced to 24 thousand tons.

Overall imports of PVC from USA reduced to 9 thousand tons last month. Imports of the acetylene resin from China went down to 1.4 thousand tons. At the same time PVC from Karpatneftechem (Lukoil) is regaining its share in PVS market. Supplies of the Ukrainian resin in October to Russia made nearly 8.4 thousand tons.


A serious decline of export prices for November supplies from the North American and Chinese producers resulted in growth of PVC purchases from external suppliers. Nevertheless, the Russian companies-importers are still afraid to contract big volumes of the resin. Also an additional limit is the approaching New Year. The companies don't want to have considerable inventories for the next year.


Over the ten months, import supplies of suspension PVC exceeded 416 thousand tons which was 40% more than over the same period last year. As per preliminary estimates, in November overall imports of PVC to the Russian market won't exceed 20 thousand tons.


MRC

The collapse of BP's latest asset sale has thrown the spotlight of investor pressure back on Dudley

(Arabian oil and gas) -- BP CEO Bob Dudley will be feeling the pressure as divestment program vital to easing shareholder pressure goes off the rails. The collapse of BP's latest asset sale has thrown the spotlight of investor pressure back on CEO Bob Dudley, as the company continues to lag behind its supermajor rivals in share performance.


Dudley, who declared that BP had reached a ⌠turning point after the Macondo disaster on the release of the firm's Q3 results last month, may have to re-think its plan to raise its dividend after the $7 billion sale of its Argentinean unit and followed a failed $16 billion share swap agreement with Rosneft for deepwater arctic exploration in Russia.


Fitch, a ratings agency, said: "We believe that if the company's cash position were to become more constrained in the short term, the company's most likely first response would be to postpone any increase in its dividend payments."


BP had hoped to sell its Pan American Energy unit to Bridas, which is 50% owned by China's CNOOC, as part of a divestment program aimed at footing the bill for the Macondo disaster, which it is estimated will cost the firm $40 billion.


Only last month the company announced it was stepping up its divestment program from $30 billion to $45 billion, having confirmed that $26 billion have been raised so far. The reason for the collapsed sale is unclear, with BP leaving little clue save for ⌠legal reasons and Bridas citing regulatory and legal concerns and ⌠the way BP handled the transaction.


Perspectives of development of polymer markets, pricing issues and other important aspects will be discussed at The Polymers Summit-2011, which will be held in Moscow on November 30, 2011 at the Ritz Carlton Hotel. The Summit will be organized by MRC with the support of ICIS. The main idea of the Summit is to find a "the golden mean" between producers and converters. When producers receive exactly such margin of production, which helps them to invest in production expansion in order to substitute polymers imports, and the converters receive such price of feedstock that helps them to compete imported finished products. The Summit site gives an access to the live video of the Summit, speakers" presentations, as well as opportunities to ask questions or make appointments to any Summit partcipant.


MRC

India to face supply deficit of PTA and MEG in the long-term

(ICIS) -- India will have a huge supply deficit of purified terephthalic acid (PTA) and monoethylene glycol (MEG) in the long-term, with scant investments being poured into these sectors, set against the country's rapidly growing consumption, an industry official said late on Wednesday.


The country's PTA deficit will increase fivefold to approximately 1.67m tonnes by 2022 from 2009, while its MEG deficit will nearly triple to around 1.15m tonnes over the same period, said Mathew George, chief manager of Indian Oil's petrochemicals export division, in an interview with ICIS. In 2009, the PTA deficit was estimated at 330,000 tonnes and the MEG deficit pegged at 387,000 tonnes.


For MEG, India's domestic production totalled 800,000 tonnes, while demand was at around 1.2m tonnes. ⌠By 2022, India's total MEG supply will only reach 1.1m tonnes, while its demand will have increased to a little over 2m tonnes, George said.


Perspectives of development of polymer markets, pricing issues and other important aspects will be discussed at The Polymers Summit-2011, which will be held in Moscow on November 30, 2011 at the Ritz Carlton Hotel. The Summit will be organized by MRC with the support of ICIS. The main idea of the Summit is to find a "the golden mean" between producers and converters. When producers receive exactly such margin of production, which helps them to invest in production expansion in order to substitute polymers imports, and the converters receive such price of feedstock that helps them to compete imported finished products. The Summit site gives an access to the live video of the Summit, speakers" presentations, as well as opportunities to ask questions or make appointments to any Summit partcipant.


MRC

Nitriflex da Amazonia named as distributor for its plastics resins in Brazil

(PlastEurope) -- Asahi Kasei Plastics North America (Fowlerville, Michigan / USA) has named Nitriflex da Amazonia (Sao Paulo / Brazil) as distributor for its plastics resins in Brazil. The portfolio of the US Japanese transplant includes PA, PP, acetals, modified polyphenylene ether (mPPE). In Manaus / Brazil, Nitriflex produces ABS, polycarbonate (PC), acrylics and custom blends.


Adding the Asahi Kasei product lines will round off the Nitriflex portfolio, enabling the company to ⌠better service our customers with optimum polymeric solutions in a number of industries," said Danny Siekierski, vice president operations at parent company Brampac (Sao Paulo). The Brazilian company also aims to advance application development for its Asian partner.


Perspectives of development of polymer markets, pricing issues and other important aspects will be discussed at The Polymers Summit-2011, which will be held in Moscow on November 30, 2011 at the Ritz Carlton Hotel. The Summit will be organized by MRC with the support of ICIS. The main idea of the Summit is to find a "the golden mean" between producers and converters. When producers receive exactly such margin of production, which helps them to invest in production expansion in order to substitute polymers imports, and the converters receive such price of feedstock that helps them to compete imported finished products. The Summit site gives an access to the live video of the Summit, speakers" presentations, as well as opportunities to ask questions or make appointments to any Summit partcipant.


MRC