PVC oversupply causes price decrease in the Russian market

By June results, total PVC-S imports into the Russian market have exceeded 35 kt. It is a record since May - June 2008 in conditions of supply terms delays of quite big resin volumes from China. PVC from North America is actively supplied into the Russian market this year. American resin has taken about 27% of total Russian imports, while pressing Russian producers in window profile and windowsill production sectors.

Serious PVC imports have led to oversupply in the Russian market last two months. The competition between resin suppliers has strengthened, which led to dominative position of buyers in the market. Single producers had to decrease prices. Last week PVC price offers went down by average RUB 500/mt in the spot market and were fixed in the range of RUB 46.000 - 48.000/mt, including VAT, FCA.

MRC

For more information about PVC market in Russia is available in MRC Price reports.

(Bloomberg) -- Saudi Basic Industries Corp., the world's biggest petrochemicals maker, may have seen second quarter profit more than triple after demand for plastics recovered in a strengthening global economy.

Sabic will report 5.8 billion riyals ($1.6 billion) in net income after 1.8 billion riyals in the same quarter last year, according to Bloomberg. Sabic traditionally releases quarterly results within a month after the end of a quarter.

A global economic recovery is helping Sabic overcome last year's slump, when sales of its automotive, construction and consumer products weakened. The company's U.S. plastics business is improving as demand for materials needed to make automobiles and electronic goods increased.

MRCMRC Reference

Sabic. The share in the Russian market in 2008:
PE - 0.2%;
PP - 0.4%;
PS - 0.2%.

Annual sales growth in Russia over the last 5 years:
PE - 33%;
PP - 62%

(prw) -- Less than two months after opening a massive PET plant, Indorama Polymers Public Co. Ltd. already is talking about expanding its Decatur, Ala., site to add recycling operations there.

Officials with Bangkok-based Indorama are deciding between Decatur and Asheboro, N.C., as potential sites for PET bottle recycling. As much as 25 percent of this recycled PET then would be blended into virgin resin, operations vice president Yash Awasthi told the Decatur Industrial Development Board.

MRC

(BUSINESS WIRE) -- Chevron Corporation today reported that earnings for the second quarter 2010 are expected to be higher than in the first quarter. Upstream earnings are projected to be in line with first quarter results. Downstream results, inclusive of the former Chemicals business segment, are expected to be significantly higher than the first quarter. Additionally, earnings are expected to benefit from favorable non-cash foreign currency effects due to the strengthening of the U.S. dollar in the second quarter.

MRC

(Finam) -- After purchasing 97% stocks of Bereznikovskiy Sodovy Zavod (BZS - Berezniki Soda Plant), Sterlitamak based Kaustik (Bashkhim group) has sent all the minor BZS stockholders obligatory offer about purchase of BZS equities, according to requirements of ⌠About joint-stock companies" law. Offer price forms RUB 7.281 ($236) for one equity. Terms of offer accepting are 70 days since the announcement date. Sberbank has provided bank guarantee of the offer.

MRCMRC Reference

Share in the Russian market, 2008:

PVC - 27.3%;

PVC-S - 30.0%;

caustic soda - 19.5%.

Annual sales growth in Russia, recent 3 years:

PVC-S - (-1%);

caustic soda - 1%