Abolition of PVC duties in China and ASEAN to increase export of Chinese PVC

MOSCOW (MRC) -- Since the 1st of January 2012, the agreement on free trade оf PVC between China and ASEAN came into force. To a greater extent this agreement is beneficial to the Chinese side, which will be able to increase exports to these countries, according to MRC analysts.


From January 1, 2012, there were cancelled customs duty on PVC import in accordance with the agreement on China-ASEAN free trade between China and six member countries of the Union (Indonesia, Malaysia, Thailand, Philippines, Singapore and Brunei-Darussalam). According to Chinese customs, imports of PVC in 2010 was about 1.2 million tonnes, with about 87% of the total imports that fell on resin producers from USA, Japan and Taiwan (328 thousand tonnes, 427 thousand tonnes and 284 thousand tonnes, respectively).


Over the eleven months of 2011, imports of PVC to China reduced to 944 thousand tonnes, with about 817 thousand tonnes that fell on the resin from the U.S., Japan and Taiwan.


Exports of PVC from China, on the contrary, increases. In 2010, the total export volume of Chinese PVC was about 218 thousand tonnes. The leaders of resin imports from China were Russia, Uzbekistan and South Korea, with 113 thousand tonnes, 20 thousand tonnes and 23 thousand tonnes respectively. Over the eleven months of 2011, exports of PVC from China grew to 355 thousand tonnes, the main exports volume fell on Russia, Korea and Uzbekistan (114 thousand tonnes, 28 thousand tonnes and 25 thousand tonnes respectively).

According to some market participants, this agreement will not change the structure of PVC imports to China seriously. Quite a long time the main foreign suppliers of PVC to China have been the producers from the United States, Japan and Taiwan, and it will be very difficult to press them out of the Chinese market, first of all because of the limited production capacities of PVC in ASEAN countries.

Thus in Thailand, which is the most developed in terms of consumption and production, the output of PVC makes about 1 million tonnes, while domestic consumption is slightly more than 500 thousand tonnes.


The agreement will allow China to increase PVC exports to these countries. According to preliminary data by January 1, 2012 the total capacity of Chinese producers of PVC had reached 19 million tonnes per year. In 2010, PVC consumption in China made around 12 million tonnes.


MRC

Crimea Titan reached record production capacity in 2011

(titanexport) -- 2011 saw Crimea TITAN produce 108 069 tones of its main product which is an all-time best record since the foundation of the plant. To compare: 2010 saw 105 681 tones of titanium dioxide produced. Original design capacity of the plant amounted to 80 thsn. tones of titanium dioxide per year.

Breakthrough in production capacity was possible due to large-scale modernization of the plant as well as determined professional effort from the plant workers.

MRC

Petrochemical holding Sibur disposed non-core tyre business

(sibur) -- Petrochemical holding company SIBUR has completed the sale of 100% of OAO SIBUR-Russian Tyres (SRT) to a group of investors including the management of SRT and Vadim Gurinov, former CEO of Russia's largest tyre manufacturer.


The disposal follows the restructuring of SRT with the sale of two of its non-core plants: OAO SIBUR-Volzhskiy, a manufacturer of synthetic fibres, which was acquired by CJSC Gazprom Stroy TEK Salavat and OAO Volzhkiy Nitrogen and Oxygen Plant, which specialises in commercial grade gas production and was sold to the ROEL Group.

"The sale of our non-core assets for the production of tyres and fertilizers has been very efficient and we look forward to maintaining a mutually beneficial partnership with the new owners on feedstock supply," commented Dmitry Konov, CEO of SIBUR. "The new structure of SIBUR will allow us to focus on developing our core petrochemical business of gas processing and the production of polymers, organic synthesis products and synthetic rubbers."

The deal was completed on 29 December 2011.


MRC

Bemis Clysar introduces new polyolefin shrink film

(clysar) -- A high-performance polyolefin films supplier, Bemis Clysar introduces single-source printed polyolefin shrink film with high-impact, 360-degree graphics for multi-packs and bundled items, including juice minis, wipes canisters, personal care products, automotive supplies and promotional products.

Strong enough to replace wrapped paperboard trays or paperboard sleeves, Clysar printed shrink film is said to deliver a more production-friendly, sustainable solution than traditional multi-pack formats. "Printing polyolefin shrink film poses a unique set of challenges due to the thin gauge and balanced shrink characteristics of the film," explains Vicki Larson, Clysar's marketing manager.

Bemis Clysar adds, multi-pack operations utilizing printed shrink film can be fully automated, eliminating the hand assembly and slow speeds of many traditional packaging operations. Replacing traditional multi-component tray, film and label packaging with printed shrink film saves up to 69% in material and offers sustainability improvements throughout the package's life, the company claims.


MRC

Nissan-Renault alliance recorded in sales last year

(bbc) -- The Renault-Nissan partnership's global vehicle sales increased 10% last year to a record high.

Deliveries by the two car companies and their Russian partner AvtoVaz rose to 8.03 million vehicles, up from 7.28 million in 2010.

Renault-Nissan chief executive Carlos Ghosn announced the results at the Detroit motor show.

The rise has been attributed to a rebound in the US car market and strong demand from China.

Japanese car makers suffered major disruptions to production in 2011 due to the earthquake and tsunami in March and the floods in Thailand.

Despite this, Nissan's deliveries jumped to 4.67 million cars and light trucks.

Nissan's factories and production lines were not as badly hit as rivals Toyota and Honda.

Nissan was able get production back up to 80% of its capacity by mid-May and said it had recovered fully by September.

Mr Ghosn told reporters in Detroit that passenger car sales role 8.9% in the US and about 10% in China. Nissan's chief Carlos Ghosn is hoping to increase market share in 2012.

MRC