Synthetic rubber consumption by India's auto industry dips 5%

(commodityonline) -- The consumption of synthetic Rubber by the India's auto tyre industry declined by 5% to 24,010 tonnes in September 2011 against 25,323 tonnes same period last year, according to data provided by Rubber Board.

While, India's auto tyre industry consumed 1,54,887 tonnes in April-Sept 2011 as against 1,44,126 ton in the same period of the previous year.

India's synthetic rubber output fell by 10% to 8,421 tonnes in September 2011, while consumption declined by 3 per cent to 33,510 tonnes. While, the production was 9,320 tonnes and consumption at 34,480 tonnnes during 2010-11, reported PTI.

The Indian auto tyre industry consumed 1,54,887 tonnes in April-September 2011 as against 1,44,126 tonnes in the same period of the previous year.

Meanwhile, the total imports in April-September in this fiscal rose to 1,73,490 tonnes from 1,51,435 tonne in the same period last fiscal.

Synthetic Rubber is the raw material used to manufacture auto tyres.

MRC

(chemmonitor) -- Europe-based companies considerably decreased capacities at their cracker plants in this quarter. For instance, the facilities operated at 70 percent rates in early-Q4, while last month capacities varied from 50 to 70 percent.

The rates cuts are attributed to the unfavorable sentiment in the market for polyolefins.

The situation in the Europe market is unlikely to improve in the first half of the following year. However, Europe is forecast to overcome the existing debt crisis by Q3, 2012.

MRC

(ICIS) -- The solvents market in the Middle East and India is expected to be quiet in the first quarter of 2012 as players continue to monitor the impact of the Europe debt crisis on the GDP and interest rates in these regions, industry sources said.

Most players were buying on a need-to basis at the end of 2011, the importer added.
Other players were more conservative, with another Indian trader predicting flat demand in early 2012.
In the Middle East, the Europe debt crisis looks set to have a greater impact, said a distributor from the United Arab Emirates (UAE).

⌠Exports to Europe for paints and fibreglass products are affected, the distributor said. Acetone prices are likely to be stable at USD 920-970/tonne (EUR 708-747/tonne) CFR (cost & freight) Middle East in the first quarter, it added.

The outlook for isopropanol (IPA) demand in India is more optimistic and companies in the Middle East are building up their inventories.
IPA prices, which are at USD 1,170-1,230/tonne CFR India on 28 December, are expected to remain stable in January and stable-to-firm for February-March, said an Indian producer.
An Indian buyer said that prices are expected to be firmer in the first quarter, compared to the fourth quarter in 2011.

The Indian producer added that July-September may be the peak season for the pharmaceutical industry, which accounts for about 70% of the demand for IPA, which is used in the production of drugs in the industry.

Middle East prices are expected to increase in early 2012 as buyers are likely to stock up at the beginning of the year, with a distributor predicting prices to be at USD 1,200-1,220/tonne CFR Middle East.

A South Korean producer said: ⌠The base price for IPA should not go below USD1,150/tonne CFR India/Middle East in early 2012 as the acetone-based producers need the price increase to mitigate losses.

Meanwhile, the prices of ethyl acetate (etac) looks set to hold steady in 2012.
There is limited ethanol available in the market as the percentage of ethanol used to produce petrol-diesel blends have increased from 5% to 10%, said a producer in India.
Thus, ethanol prices are expected to be stable-to-firm, which will support etac prices as ethanol is a co-feedstock for etac, the producer said.

The producer added that etac prices are likely to be at USD 950-1,050 FOB Mumbai in the first quarter.
⌠Demand for etac in the first quarter looks slightly more promising as the packaging and paint industries may do some stocking up, the producer said.

The average price of ETAC in India is forecast to be at around USD 1,000/tonne CFR Mumbai in the first quarter of 2012, according to traders.
However, a source from UAE was less optimistic about the Middle East market. ⌠ETAC prices will continue to be stable at USD 980-1,020/tonne CFR Middle East, the source said.

MRC

(seekingalpha) -- ConocoPhillips (COP) is aggressively restructuring its business model. The company is expected, by mid 2012, to split into two publicly traded entities. The net effect should provide investors with an increased 2012 dividend.

The company is in the midst of separating the Energy and Production (E&P) unit from the Refining and Marketing unit (R&M).

ConocoPhillips is an international, integrated energy company. As of Dec. 31, 2010, it is the third-largest U.S. integrated energy company, based on market capitalization, as well as proved reserves and production of oil and natural gas, and the largest refiner in the United States. ConocoPhillips is the seventh-largest holder of proved reserves and the fourth-largest refiner worldwide, of nongovernment-controlled companies.
Headquartered in Houston, Texas, ConocoPhillips operates in more than 30 countries.

MRC

(ICIS) -- China's polyethylene (PE) prices are expected to bottom out in mid-February on restocking activity following a persistent downtrend, industry sources said on Tuesday.

The prices of different PE grades fell by 2.7-7.5% in the past six weeks on weak demand, according to ICIS.
Restocking demand will be significant because most importers have been keeping low inventory in 2011 as a result of tight credit and weak downstream demand, and some have reduced their December stocks to minimum levels ahead of the Lunar New Year holiday on 22-28 January, local traders said.
PE prices will not fall further in the first quarter because the current prices of the different PE grades are already close to or at cost for naphtha-based PE producers, according to some local traders.
More naphtha-based PE plants will reduce production rates in the first quarter if their margins fall further, they said.

The cash margin of integrated naphtha-based producers was estimated at USD 147/tonne (EUR 113/tonne) for the week ended 16 December, according to ICIS.
A number of PE producers in Taiwan and South Korea have been running their PE plants at reduced rates because of thin margins.

⌠The Chinese economy will be at the tail-end of a down-cycle in 2012. It's expected to improve only in 2013, a Beijing-based trader said in Mandarin.
China's monetary policy is expected to remain tight next year which will in turn curtail the domestic plastics demand, local traders said.

MRC