European Union Cleared Middle Eastern SABIC and Octal of Suspicion of Subsidization and Dumping

(chemmonitor) -- Recently, the investigations conducted by the European Union in regard to polyethylene terephthalate (PET) products supplied from the countries of the Middle East to the EU were stopped since the complaints had been retracted.


The PET imports from Saudi Arabia and Oman were put under investigation around a year ago on suspicion of subsidization and dumping.

Saudi Basic Industries Corporation (SABIC) and Oman-headquartered Octal were suspected of unfair competition.

MRC

North America styrene market set to go down Next Year

(chemmonitor) -- Current instability in US economic situation and the debt of the EU entailed negative outlook for North America styrene market.

Styrene market consumers are very cautious about the perspectives of a raw material benzene and crude oil, while styrene producers are more positive.


Styrene traders and suppliers did not expect such tight market conditions next year.
Styrene North America market players predict unsteady benzene market and dependence on the economy of the U.S.

However, some styrene market players did not predict such a volatile market.

MRC

JV Agreement Signed Between Perstorp & PTT Global Chemical Public

(perstorp) -- Joint venture agreement was signed between Perstorp & PTT Global Chemical Public Company Ltd. (PTTGC) for the global production and specialty chemicals sales for the polyurethane industry on December 22, 2011.

The JV, focused on the production and trades of aromatic (tolylene diisocyanate (TDI)) and aliphatic (Isophorone diisocyanate (IPDI), hexamethylene diisocyanate (HDI) and derivates) isocyanates, comprises the founder Perstorp Business Group ⌠Coating Additives and its production units at Pont-de-Claix (France) and Freeport (the United States). 51 percent of the JV will be owned by PTTGC and 49 percent by Perstorp.

PTT Global Chemical Public Company Limited is Thailand's largest chemical producer and chemical flagship of PTT Group The company's business value chain consists of upstream business with petrochemical capacity of 8.2 million tons per year and petroleum products capacity of 228,000 barrels per day. Downstream business includes polymers, EO-Based Performance, Green Chemicals, and High Volume Specialties.

MRC

Russian Company Acron to start up ammonia unit in Veliky Novgorod in 2014

(Acron) -- JSC Acron (Russia) plans to start up a new ammonia unit in late 2014.

The company concluded an agreement with Haldor Topsoe (Denmark) on the design of the facility.

The ammonia unit is projected to have the capacity of around 2,060 metric tons per day. It will be fit mainly with the equipment from two other units currently operated by JSC Acron.

The facility will be situated in Veliky Novgorod (Russia) at the site of an unfinished ammonia plant the construction of which was postponed in 1990's.

Acron Group is a world's leading mineral fertiliser producer with a high level of vertical integration, including potash and phosphate asset development. The Group's key business segments include ammonia, nitrogen and complex mineral fertilisers, as well as organic and non-organic compounds.

MRC

Europe styrenics players optimistic about new year

(ICIS) -- While the European styrenics market still faces some obstacles, a swathe of new derivative capacities starting up in 2012 and a robust expandable polystyrene (EPS) sector are keeping players optimistic about the new year.


⌠There is a lot of concern about the volatility of the wider economy of course, said one trader back in October. ⌠But at times it's as if people can't see the forest for the trees. We are going to see a much tighter European market next year.


Martin Pugh - president Europe, the Middle East and Africa at Frankfurt-headquartered producer Styrolution - said styrene is undergoing a significant shift, with demand growth likely to overtake capacity additions in the next three years. This, he said, will lead to operating rates gradually returning to around 90%, from the 80% level seen since the end of 2008 as a result of the economic downturn.


A source from one major styrene net producer said that the start-up of new downstream facilities in Egypt, Saudi Arabia and Turkey next year will mean that an additional 10% of demand for the monomer would be created, calling it a ⌠good sign.


However, the producer remains ⌠conservative about the outlook for European styrenics as a whole, citing concerns about the Chinese economy and its potential impact on the global landscape.
And the start-up of these new polystyrene (PS) and EPS ventures in 2012 will in all likelihood prove to be a double-edged sword for the European market. Certainly, the increased output of PS from the export-driven Middle East will make next year challenging for domestic suppliers.


The emergence of a single European barge contract number seen ahead of the December settlement is also likely to be a key topic in 2012, with many players unsure of how the various parties will manage to reach a consensus each month.


⌠I suspect it will push the overall number each month up by 2-3% when compared to the monthly average we've seen throughout 2011, said one trader. Many players are also carefully watching Styrolution and how its role in the market will unfold in the new year.

With 17 production plants in 10 countries, Styrolution is now the global leader in the production of styrene monomer (SM), PS and styrene-based copolymers, and number two in acrylonitrile-butadiene-styrene (ABS), chief executive Roberto Gualdoni earlier this year.


The state of derivative markets fluctuates from sector to sector, with PS players somewhat concerned about 2012 because of the cheap imports expected to hit Europe from the Middle East.


The PS market, which has struggled with oversupply despite a 25% capacity reduction over the past five to six years, is forecast to grow by only 3%, while other derivative markets such as EPS and ABS may expect to see growth rates of up to 5-6% from now until 2014.


MRC