SIBUR expands polypropylene range

TOMSK (SIBUR) - Tomskneftekhim, SIBUR associate, started production of new general purpose polypropylene (PP) grade.

According to SIBUR, new 21020-16Н grade delivers high thermostability and thermal-oxidative ageing resistance, which gives converters opportunity to produce new goods with better durability and strength properties.

The product will expand the range of company's general purpose grades and will be used to produce technical and consumer goods: geotextiles, carpet lining, strapping materials, woven sacks, elastic packaging and toys.

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Sibur Holding is the largest Russian petrochemical group.

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

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.

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

(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.

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(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.

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(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.

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