Thailand's PTT to accept 20 year investment plan

(plastemart) -- Thailand's largest oil and gas firm PTT is in the process of outlining a 20 year investment plan. Expected to be completed before August, it will be submitted to PTT's Board of Directors for formal approval. This will be the largest investment in the company's history, taking it into new areas of the energy sector, will focus on upstream and downstream sectors, alternative energy and the petrochemical industry, along with investing in power plants and coal business. Each of PTT's subsidiaries will be responsible for the areas in which they are expert. Though the total size of its investments over the next 20 years is unclear, funding is being arranged for the plan, to be split into two 10 year plans. The Thai major plans to focus on projects outside the country, earmarking 50% of the total investment into overseas projects. Half of the total investment will fund projects in upstream energy; 15-20% in downstream energy; 20% in the petrochemical industry; and 10% to alternative-energy projects.

Though four of PTT's subsidiaries Thai Oil, IRPC, PTT Aromatics and Refining and PTT Chemical are to be merged in the future, they would be divided as business units under one umbrella.

MRC

Egiptian polymer producers plan shutdowns for repairs in July

(plastemart) -- Egyptian HDPE producer SIDPEC is planning a 2-3 week maintenance shutdown in H2-July. In a bid to ease supply concerns in the market where high MI HDPE injection availability has been tight for some time, the producer has stock to meet the market's needs for HDPE film and blow moulding until the beginning of August. However, SIDPEC has not been able to produce high MI HDPE injection as they faced a problem when shifting their production from low MI grade to high MI. The producer had been trying to solve the problem during mid-June due to the tightness. Despite SIDPEC's hopes to be able to resume their high MI HDPE injection production before their maintenance starts, a couple of traders started reporting that the producer is now facing issues on their low MI HDPE injection production as well. They highlight that SIDPEC has only been delivering limited quantities of low MI grade to the market following their most recent price cut.

Egypt's PVC producer EPC is also planning a 15 day maintenance shutdown, starting 15th of July. Since feedstock ethylene is sourced for the PVC plant from SIDPEC, EPC has decided to halt their operations at the same time with their supplier. EPC feels confident that their sales will not be affected by the shutdown.

MRC

PP demand in Ukraine back to pre-crisis level

MOSCOW (MRC) - Ukrainian polypropylene (PP) market gradually returns to pre-crisis level. Estimated PP consumption in Ukraine over the course of January - May 2010 16% increased comparing with same period last year - according to MRC Monthly reports.

Increase of consumption promoted the reduction of exports (-35%) and imports elevation (+11%). Ukrainian imports into Turkey went down by 56% this year, and in two last months the supplies there were totally absent. Exports into Russia were minimized.


At the same time, just from Russia was the most significant increase of imports (+79%). This year share of Russian material in the Ukrainian market forms 33%. Only in April - May Russian imports were small (about 1 kt in two months). The main cause was the deficit in the Russian market due to suspensions of the biggest PP producers. High price level was a disadvantage of Russian polypropylene.

May appeared to be a strict month for Ukrainian PP market. Long-term Linos suspension for the maintenance has seriously limited the supply of Ukrainian material. The resume is expected on June 26 - 27. In June the production, as per experts, should form around 1 kt.

MRC

For more information about PP market please refer to MRC Monthly reports.

BASF optimistic about Asian demand

(prw) -- BASF believes its plastics division will outperform the global market's predicted 5% annual growth, due largely to the company's activities in Asia and its focus on speciality grades.

⌠Last year was far from easy, not only for BASF but for the entire plastics industry. In 2009, sales in the plastics segment dropped as a result of lower demand and falling prices, especially for standard products, said Dr Martin Brudermuller, the member of BASF's board of executive directors responsible for plastics and Asia Pacific. "Sales declined by more than 20% to ┬7.1bn.

As a result of changes in the market the chemicals giant implemented a strategy to reduce overcapacities for standard plastics while expanding its specialties business. According to Brudermuller ⌠shedding sites and activities that are no longer competitive or that are unable to meet our expectations for profitability will help BASF maintain long-term growth.

Instead the company is focusing on areas such as its biodegradable plastics operation Ludwigshafen, which is to be expanded. This trend has seen the sales percentage of speciality plastics rise from around 40% in 2006 to more than 50% today.

MRC

MRC Reference

BASF. The share in the Russian market in 2008:
PS - 9.1% (GPPS - 5.9%, ABS - 11.4%, EPS - 10.6%).

Annual sales growth in Russia over the 5 years:
PS - 15%.

Imports by polymers processing technologies:
foaming;
injection molding


IOC to export polymers into Pakistan by surface transport

(plastemart) -- State-owned Indian Oil Corp. plans to export polymers into Pakistan by rail or road across the Punjab border, from its plant in Panipat. In an unprecedented move, buyers in Pakistan will be able to take delivery of imported cargoes directly at Lahore, instead of the Karachi. IOC has recently started commercial operations at 600,000 tpa polypropylene plant at Panipat, and is in talks with prospective buyers in Pakistan and Bangladesh. The plant started test runs in April and has been running at 80% capacity since early June. IOC plans to export about 10% of its PP capacity six months after starting commercial operations. Priority offshore PP markets will be neighboring Pakistan, Nepal, Bangladesh and Sri Lanka, although the company also wants to develop a customer base in Southeast Asia, China and Europe.

MRC