Russian converters expecting PP price decrease

MOSCOW (MRC) -- The last week of June was marked by a serious decrease in demand in the Russian polypropylene market. Many market players expect PP prices to go down in the domestic market being pressed by continuously falling prices in Asia - according to MRC Price reports.

Russian converters had seriously cut down polypropylene purchases by the end of June. Launch of PP plants after the scheduled maintenance in Ufa and Kapotnya with the total capacity of 200.000 tpa at the end of June should lead to market saturation and, as a result, price decrease. Continuously falling prices in Asia is also a serious argument for the converters.

Russian producers have not chnaged July PP prices seriously. Raffia prices vary within the range of RUB 58.500 - 60.000/mt, including VAT, FCA. In the second half of July, PP production in Tomsk is going to be shut down for planned repairs. Operations are expectedly to be resumed in mid-August.

PP prices in Asia had been falling since the beginning of May and lost more than USD 150/mt by the end of June. The European market, contrariwise, is demonstrating a stable growth of prices being pushed up by scarce supply. Despite the EUR 20/mt decrease of contract prices for propylene in Europe, some European producers have raised July PP prices by EUR 15 - 30/mt. Some companies have nevertheless not chnaged their prices. Generally, PP-homo prices for Russian companies were fixed within the range of EUR 1.220 - 1.280/mt, FCA.

MRC

For more information about the Russian PP market, please, refer to MRC Price reports.

Total Petrochemicals to acquire polystyrene lines in Europe

(plastemart) -- The European Commission has given a nod of approval to Total Petrochemicals Feluy (TPF) to acquire the polystyrene production lines of Polimeri Europa at Feluy, a subsidiary of Italian oil and gas company Eni (E). As per the deal, TPF will continue polystyrene production on behalf of Polimeri until September 2011. This does not include the expandable polystyrene unit reactors, which will close in September 2010.

MRC

Lanxess invests in plasticizer production

(prw) -- Chemicals group Lanxess is investing a ⌠mid-single-digit amount of million euros in expanding production facilities for the plasticiser Mesamoll in Krefeld-Uerdingen, Germany, by 40%.

The Mesanoll products are alkanesulfonic acid esters that have good resistance to saponification, as well as outstanding solvating and migration properties, says Lanxess. They are compatible with various polymers, including PVC and polyurethane.

The company has also launched a new fast-solvating grade - Mesamoll TP LXS 51067 - for PVC floor coverings and wall coatings applications.

MRC

Siam Cement to boost year's profits

(plastemart) -- Siam Cement expects a boost to this year's profits with the start up of a US$1.2 bln petrochemical plant that will triple the size of high-margin petrochemical products produced by the Thai company. Under current conditions, the Thai major is witnessing a slowdown in domestic sales of cement, ceramic tiles and other building materials. The petrochem plant start up will help counter this slowdown . The plant can produce 1.7 mln tpa of ethylene and propylene. Since the first half of the year, test runs have been started, keeping run rates at the facility at about 70% of capacity.

Siam Cement, Thailand's number three company by market value has increased investments in petrochemical plants in Thailand and Vietnam. Demand for chemicals used to make plastics has surged as economic growth rest of Asia spurs sales of cars, electrical appliances and other consumer products.

MRC

SIBUR to produce EPS using up-to-date technology

MOSCOW (SIBUR) -- SIBUR is starting to sign contracts with customers to supply expanded polystyrene, which is going to be produced by the company using state-of-the-art Austrian-Norwegian SUNPOR technology.



A new 50.000 tpa complex will be located at the Sibur-Chimprom site and is scheduled to be launched at the end of 2010. Today installation of the equipment has been accomplished tests are ongoing.

The product is made to produce various goods including construction thermo-insulation, home appliances and food packaging.



MRCMRC Reference

Sibur Holding is the largest Russian petrochemical group.

Shareholders:
Gazprombank (70% minus 1 share);
Gazfond (25% plus 1 share);
5% reserved for option program.