US ethane and titanium dioxide prices to remain relatively high in 2012

(ICIS) -- Prices should remain relatively high for US ethane and titanium dioxide (TiO2) in 2012, an analyst said on Monday. A majority of US crackers use ethane as a feedstock to produce ethylene, which is one of the reasons why supplies are tight, according to a research note by David Begleiter, an analyst for Deutsche Bank. He estimates that more than 80% of North American ethylene production relied on natural gas liquids as a feedstock in 2011.


In addition to demand, constrained pipelines are also keeping ethane prices high, Begleiter said. New pipeline and fractionation capacity will not be in place until late 2012 or early 2013.


As such, Begleiter expects ethane supplies to be balanced to tight when compared with demand. Ethane supplies could loosen somewhat in the second quarter, when about 11% of North American ethylene capacity will be off line, Begleiter said. Regardless of the expected tightness, ethane crackers should maintain their advantage against naphtha crackers, he said.


Titanium ore is a feedstock for the pigment titanium dioxide (TiO2), and high ore prices helped support higher prices for the pigment.


TiO2 producers should be able to pass through the cost hikes because supply for the pigment remains tight.


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EU commercial vehicle registrations up 8.4% in November

(ICIS) -- New registrations for commercial vehicles in the EU totalled 171,670 units in November, up by 8.4% from the same month last year, an industry body said on Tuesday. According to data from the European Automobiles Manufacturers' Association (ACEA), the figures showed an improvement in all vehicle categories during November except for the buses and coaches segment, which fell 11.4% year on year to 2,627 units.
Within the other EU vehicle-registration segments for November, vans grew 8.5% year on year to 141,800 units; new heavy truck registrations increased 14.5% year on year to 20,673 units; and new commercial vehicles over 3.5 tonnes increased by 10.2% to 27,243 units.


A wide variety of chemicals markets depend on demand from the automotive industry, which has suffered badly from the effects of the global economic crisis.


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TURCAS Petrol and SOCAR to negotiate on the share in JV SOCAR-Turcas

(Trend) -- TURCAS Petrol and State Oil Company of Azerbaijan (SOCAR) began negotiations for the transfer of 25 percent share of Turcas Petrol in the joint venture SOCAR-Turcas of SOCAR, the Anadolu agency said on Tuesday. Talks are held on the purchase of 18.5-percent share of SOCAR-Turcas in a project to build a refinery in Izmir by SOCAR.


TURCAS will complete its work in the petrochemical holding company through indirect stock, and engage in the distribution of fuel refineries after reaching an agreement.


Turcas and SOCAR are parties of the joint venture - co-owner of a petrochemical complex Petkim. SOCAR-Turcas started construction of a new oil refinery in Turkey to meet Petkim's raw demand.


A ceremony of laying the foundation of a new refinery, which will provide feedstock for petrochemical complex Petkim, co-owner of which is SOCAR, in Izmir was held October 25.


The new refinery will primarily focus on supplying raw material for the complex. The cost of the plant is USD5.5 billion; and the production capacity is ten million tons per year. Oil produced in the factory will be directed to meet the demand of Petkim, the domestic market in Turkey and the countries of the Mediterranean region.


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Arkema may be a takeover target for Saudi Basic Industries Corp. and DuPont

(Bloomberg) -- Arkema SA (AKE), already cheaper than any of its rival industrial chemical producers, may now be a takeover target for Saudi Basic Industries Corp. and DuPont Co. after deciding to spin off its unprofitable vinyls business.
Since losing a third of its market capitalization in the past seven months, Arkema's combined equity and net debt is now valued at 3.5 times this year's earnings before interest, taxes, depreciation and amortization, based on analysts' estimates compiled by Bloomberg. The multiple is the lowest among rival chemical producers, including Lanxess AG (LXS), Solvay SA (SOLB), Clariant AG (CLN) and Dow Chemical Co. (DOW), according to data compiled by Bloomberg.


With the sale of a unit that's been hampered by slumping construction spending, Arkema may now attract takeover interest from Sabic, the world's biggest petrochemicals maker, and DuPont (DD), the largest U.S. chemicals producer by market value, according to Berenberg Bank. The company, which makes chemicals used in everything from athletic shoes to air conditioning, may also lure private equity bidders, said Nomura Holdings Inc. Colombes, France-based Arkema could fetch as much as 70 euros a share in an acquisition, according to Berenberg, a 47 percent premium to yesterday's closing price.


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German state delegation visited SABIC and viewed joint petrochemical projects

(Sabic) -- A high-level German delegation, led by Dr. Niels Schmidt, Deputy Premier and Minister of Finance and Economy in the State of Baden - Wurttemberg, visited the Saudi Basic Industries Corporation (SABIC) in Riyadh on December 18 to discuss various aspects of cooperation between SABIC and major German companies in the petrochemical sector, existing investment opportunities, and other topics of common interest.
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The delegation, which comprised two members of the state parliament, and 30 political, economic and media personalities, was received by Prince Saud bin Abdullah bin Thenayan Al-Saud, Chairman of SABIC and the Royal Commission for Jubail and Yanbu, in the presence of Mohamed Al-Mady, SABIC Vice Chairman and CEO, and the company's executive vice presidents and vice presidents.


SABIC operates several industrial complexes in Europe, including Germany


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