European PP prices are at their lowest level since February 2010

(ICIS) -- European polypropylene (PP) prices are flat, at their lowest level since February 2010, and market players do not see any significant upturn in the weeks to come, several sources said on Thursday. ⌠Inventories are currently at 840,000 tonnes/year in Europe, said one player who considered a normal sales month to be around 700,000 tonnes/year.


⌠Production is reduced and will be for some time, said another source, adding; ⌠but even at reduced levels, say 85%, there will be 31 producing days in December and only 17 days of sales. We will be going out of the year with high stocks.


One producer gave its vision for the weeks to come: ⌠December will be flat and we can expect a ┬10/tonne ($13/tonne) increase in January, followed by another ┬20/tonne in February.
⌠We don't expect much improvement in the market before quarter two 2012, said another producer.


Spot sales are currently the domain of producers, as traders cannot get hold of the prices they need to compete with them. Homopolymer injection prices are now at ┬1,030/tonne FD (free delivered) NWE (northwest Europe) on a net basis. The November propylene contract price stands at ┬1,013/tonne FD NWE.


Monthly prices are at higher levels as many are propylene or index-linked. Discussions over 2012 business are now taking place and several buyers are attempting to move away from linked business which has proved to be to their detriment in 2011.


Perspectives of development of the polymers 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 is 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

Asian ethylene prices appeared to have bottomed out

(ICIS) -- It is still unclear whether Asian petrochemical demand will rebound in the next three months amid rising ethylene and butadiene (BD) prices, traders said on Thursday. Ethylene prices in the region appeared to have bottomed out, rising by $10-20/tonne (┬7.5-15/tonne) in the week ended 18 November to $1,020-1,050/tonne CFR (cost and freight) NE (northeast) Asia, ICIS data showed.


Downstream styrene butadiene rubber (SBR) prices in Asia ended a three-month slump on restocking activities by traders/end-users, and on the back of rising values of feedstock BD.
Average spot prices of non-oil grade 1502 SBR rebounded $50/tonne week on week to $2,725/tonne (┬2,017/tonne) CIF China on 23 November, after shedding 45% since early August, according to ICIS.


BD prices were assessed at $1,700-1,750/tonne CFR NE Asia in the week ended 23 November, up by 9.5% from the previous week. Until the rebound in prices this week, BD values had been falling for four months. The rebound in BD prices led to expectations that SBR values will increase further, market sources said. BD is a major feedstock in the production of SBR, making up more than 70% of SBR's composition and cost.


Perspectives of development of the polymers 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 is 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

BP and Indian Oil Corporation to set up a 50:50 joint venture for a 1 mln tpa acetic plant

(Plastemart) -- UK-based British Petroleum (BP) and Indian Oil Corporation have signed a memorandum of understanding (MOU) to set up a 50:50 joint venture for a 1 mln tpa acetic plant in Gujarat. The plant will come up with associated gassification facilities for production of synthesis gas.
The two companies await results of the feasibility report to confirm the exact details of the project, which is expected to be commissioned in 2015. The joint venture will derive its technical prowess from the latest Cativa XP from BP while petroleum coke feedstock will be used from Indian Oil.


Perspectives of development of the polymers 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 is 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

SBR prices in Asia ended a three-month slump

(ICIS) -- Styrene butadiene rubber (SBR) prices in Asia ended a three-month slump on restocking activities by traders/end-users, and backed by rising values of feedstock butadiene (BD), industry sources said on Thursday.


Average spot prices of non-oil grade 1502 SBR rebounded $50/tonne week on week to $2,725/tonne (┬2,017/tonne) CIF (cost and freight) China on 23 November, after shedding 45% since early August, ICIS data showed.


The Lunar New Year, which falls on 23 January 2012, is celebrated across Asia. Traders and downstream tyre makers are looking to book January deliveries ahead of the festive season. A rebound in BD prices also led to expectations that SBR values will increase further, market sources said.


Perspectives of development of the polymers 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 is 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

The global styrene market will see improved stability in the coming years

(ICIS) -- The global styrene market will see improved stability in the coming years as operating rates increase, but still faces crucial challenges in light of ongoing macroeconomic volatility, a senior executive from Germany-based styrenics producer Styrolution said on Tuesday.


Speaking at the 10th European Aromatics & Derivatives Conference in Amsterdam, Europe president Martin Pugh said that demand growth will start to overtake capacity additions in the next three years, which will lead to operating rates gradually moving back closer to 90%, from the 80% level seen since the downturn in late 2008.


While Pugh added that global styrene demand growth forecasts have been reduced to 3.3% from previous expectations closer to 4%, growth levels varied between the different downstream sectors.
The polystyrene (PS) market, which has struggled with oversupply despite a 25% capacity reduction over the past five to six years, is forecast to grow by only 3%, while other derivative markets such as expandable polystyrene (EPS) and acrylonitrile-butadiene-styrene (ABS) may expect to see growth rates of up to 5-6% from now until 2014.


The low volume of recycled PS also poses a challenge, with Pugh arguing that the industry needs to find bigger markets in order to cultivate additional growth for the polymer. For the European ABS market, increasing capacities in the Middle East and Asia as well as the EU/South Korea free trade agreement both present challenges for future growth.


Perspectives of development of the polymers 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 is 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