Demand for imported PE to go up in China in late July

MOSCOW (MRC) - Asian market players expect demand increase in China later in July, when converters are to start to build up stocks before the beginning of the season - according to MRC Price reports.

Chinese plastic goods producers usually start to increase production in August to ensure exports to Europe and the USA before Christmas and New Year holidays. The agricultural season that usually lasts in China from September to December will push up demand for film-grade LLDPE, which is going to stimulate consumption of all the other types of polyethylene.

In May - June, polyethylene demand in China remained weak. Prices for imported material went down by USD 200-250/mt since May. In view of weak demand for LDPE in China, some Asian producers switched to production of more profitable EVA. Low interest in film-grade HDPE in the Chinese market made some producers from Taiwan, Thailand and South Korea redirect production toward other HDPE grades, as well as to redirect exports to the markets of SE Asia, where demand for film-grade material is stronger.

As to market players, these factors together with suspensions of a number of plants in the Middle East may lead to serious limitations in HDPE supplies to the Chinese market in July - August.

PE demand remains weak in China, today. Prices continue to go down despite the limited supply. However, positive dynamics in stock market and the market of oil futures in conditions of the decision of Chinese authorities to increase flexibility of Yuan exchange rate give reason to think that PE prices are going to reach their bottom soon. At the same time, some Chinese importers tell about their fears that strengthening of Yuan may limit export potential of Chinese plastic products, which can lead to weaker demand for polyethylene.

MRC



For more information about the PE market please refer to MRC Price reports.

Mecalit to extend Polish production facility

(Plasteurope) -- German plastics processor Mecalit Kunststoffverarbeitung plans to invest EUR 1m in its production plant in the special economic zone in Lodz, Poland. Since founding Mecalit Polska in 2005, the manufacturer has spent about EUR 6.3m in the plant. The finished goods are earmarked for customers such as BSH Bosch und Siemens Hausgerate, which also operates a plant in Lodz.

Some 380 workers are employed at Mecalit's production sites in Lichtenau, Germany and in Lodz. Equipped with injection moulding machinery with a clamp force of between 150-13,000 kN, the company processes about 4,000 t/y of plastics, predominantly PE, PP, PS, ABS, PA, POM and blends.

MRC

Salavatnefteorgsyntez held annual general stockholders' meeting

SALAVAT (Salavatnefteorgsyntez) -- Salavatnefteorgsyntez annual general stockholders' meeting took place on June 30, 2010. Shareholders approved the annual report, the annual financial report, including profit and loss staments. ⌠Audit - Novye Tekhnologiy Ltd. was approved as Salavatnefteorgsyntez's auditor.

MRC

Abu Dhabi Polymer Company inks $930 mln. contract with Hyundai Engineering

(plastemart) -- Hyundai Engineering and Construction Co has been awarded a US$930 mln order to build petrochemical facilities from the UAE's Abu Dhabi Polymer Company. Hyundai said the order was part of a US$2.6 bln project to build the world's largest petrochemical plant.

MRC

Sinopec resumes ethylene unit construction in Wuhan

(plastemart) -- China Petroleum & Chemical Corp. (Sinopec) has embarked upon a program to expand an oil refinery in Wuhan city and resumes construction of an ethylene unit at the plant. Construction work on the 800,000 tpa ethylene plant was halted in 2008 because of the financial crisis. The ethylene unit is scheduled for completion in 2013.

MRC