Russian production of PVC plasticizers in early July

The demand for PVC plasticizers in the Russian market keeps up growing. Single plasticized PVC producers tell that in June plasticizer sales exceeded the production. Further increase of production is impossible due to insufficient DOF supply in the domestic market. In July even some big producers of plasticized PVC faced problems with purchases of additional plasticizer volumes. Last month the demand in the Russian market was covered by DOF supply from Eastern Europe. However, force majeur at one of the biggest plasticizer plants of ZAK company in Poland has led to decrease of export quotes and sharp price increase. So, European DOF went up in price by EUR 90 - 100/mt for July.

Single companies offer DOF from South Korea and North America, however, the first plasticizer supplies are expected no earlier than mid-August. For now, Russian converters are forced to limit the production. DOF price range in the Russian market is quite big and is in the range of RUB 72.000 - 92.000/mt, including VAT, FCA.

MRC

For more information about Russian DOF market please refer to MRC Annual reports.

(prw) -- Equipolymers has completed the previously announced sale of its PTA and PET production facilities at Ottana in Italy to a joint-venture set up between Ottana Energia and Indorama.

The Ottana facility has capacity to produce around 190,000tpa of PTA and 160,000tpa of PET resin.

Equipolymers will continue to produce PET resins at its remaining European manufacturing site at Schkopau in Germany, which has capacity to produce around 335,000tpa of PET.

MRC

(Polimerica) -- The LyondellBasell polypropylene plant in Terni, in central Italy, was planned to be shutdown on 30 June but after a recent meeting at the Ministry of Economic Development there is hope for the sale of the assets.

Apparently Novamont, a producer of biopolymers in Terni, as well as a group of local entrepreneurs are also interested in the plants in Umbria.In the meeting, LyondellBasell is to restart the plants - should interest be concrete.

A new meeting at the Ministry is planned for Thursday, 8 July to verify the status of negotiations.

MRCMRC Reference

LyondellBasell. The share in the Russian market in 2008:
PE - 1.4% (including HDPE - 2.5%, LDPE - 0.3%);
PP - 4.1% (including block-copolymers - 9.5%).

Annual sales growth in Russia, during the recent 5 years:
PE - 27%;
PP - 88%.

The leader in the following polymers processing technologies:

pipe extrusion;

film extrusion;

injection molding

SALAVAT (Salavatnefteorgsyntez) -- The decision of Salavatnefteorgsyntez authorities from 19.11.2009 about giving the status of independent legal entity ⌠Salavatskiy katalizatorniy zavod (Salavat catalyst plant) with 100% Salavatnefteorgsyntez authorized capital stock to refinery workshop #12 started the forming of company's divisional structure.

This decision has been made to increase the effectiveness of catalyst production, particularly, the increase of loading of existing capacities including market trends and Russian domestic market development forecasts.

The first results are optimistic: the production of ⌠Salavatskiy katalizatorniy zavod was profitable in Q1 2010, earnings went up by 40% comparing with same period last year and client database seriously expanded.

MRC

(Vedomosti) - Government of Great Britain is preparing a pack of actions for the case of financial break-up of oil and gas company BP. Neither BP itself, neither Government representatives don't admit it, however, plan details make rumors about division and absorption of the company that keeps bearing costs (over $3 bln already) in liquidation of oil leakage in The Gulf of Mexico. ExxonMobil and Royal Dutch Shell are the most possible candidates for BP.

Ministries of Finance and Business of Great Britain have made special consulting about variants of BP save. There was even the variant of company nationalization by the scheme applied for save of Royal Bank of Scotland during financial crisis of 2008 - 2009 for preventing of break-up, division or absorption of BP. During a business trip to Washington on July 20 British Prime-Minister David Cameron and Energy Minister Chris Huhne will discuss the future of BP with USA officials.

MRC