Polypropylene grows in price again in Russia

MOSCOW (MRC) -- July hasn't brought the expected polypropylene price decrease in the Russian market. Outlined price fall at the beginning of the month has changed to growth despite the expectations of market players - according to MRC Price reports.

Gradual suspension of capacities in Kapotnia (Moscow oblast) and Ufa in May became one of the main reasons of further polypropylene price increase in the Russian market. To mid-June raffia prices in the market went up to the level RUB 58.000 - 62.000/mt, including VAT, FCA. To month-end raffia prices in the Russian market started slowly declining and reached the level RUB 58.000 - 59.500/mt due to the resume of production in Neftekhimia and Ufaorgsyntez capacities. As a result, many Russian converters have essentially decreased polypropylene purchases while expecting another price fall.

However, in spite of further decrease of prices, the Russian market saw another price elevation. Technical problems at Stavrolen have led to suspension of polypropylene capacities. Tomskneftekhim facilities were shut down for planned repairs last week. Other Russian producers also plan to reduce raffia production in July.

Lack of raffia in July is partly covered with supply from Ukraine. The first shippings from Lipol started last week already. Also some market players expect the resume of PP production at Stavrolen. Yet small raffia volumes are offered in the range of RUB 60.000 - 61.000/mt, including VAT, FCA.

MRC

More information about Russian polypropylene market is available in MRC Price reports.

Japan Polypropylene to close two plants in 2011

(JPC) -- In a bid to reduce costs, Japan Polypropylene Corp. will close two relatively old polypropylene plants in 2011. A 90,000 tpa plant at Kashima, operational since 1970, will be shut in May 2011. A 79,000 tpa plant in Ichihara, operational since 1967, will be shut in June 2011.

This step has been taken by the company as part of its restructuring plans in a bid to cope with deteriorating PP demand in the domestic market and enhance the competitiveness of its PP. Japan Polypropylene is 65:35 owned by Japan Polychem and Chisso, and it currently has 11 PP plants in Japan with a total capacity of 1.244 million tpa.

MRC

Sabic publishes final positive Q2 financial report

(Sabic) -- Sabic has reported encouraging Q2 figures - net profit almost tripled from the same period last year, rising to $1.3bn as a result of higher sales and increased production.

The increase in the net income for the quarter ended June 30, 2010 compared with the same quarter in 2009 is attributable to the increased production and sales volumes with the new capacity coming on-stream at Sharq, Yahsab and the joint-venture with Sinopec in China.

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%.

BASF and Renova Stroygroup announce strategic partnership

EKATERINBURG (BASF) -- BASF and Renova Stroygroup today announced a strategic partnership for energy-efficient construction in Ekaterinburg. Renova Stroygroup plans to construct housing for around 325,000 people with the aid of energy-efficient BASF construction materials and expertise in the new city district of Akademitscheskij Rayon, one of Europe's largest building sites.

The first building with a thermal insulation composite system has now been constructed in Akademitscheskij Rayon using insulation paneling made of BASF's Neopor. The paneling system enables energy savings of up to 50 percent compared with non-insulated buildings. In addition, BASF's subsidiary Luwoge consult will contribute to the conception and planning of a low-energy house in Akademitscheskij Rayon.

MRCMRC Reference

BASF. The share in the Russian market in 2008:
PS - 9.1% (GPPS - 5.9%, ABS - 11.4%, EPS - 10.6%).

Annual sales growth in Russia over the 5 years:
PS - 15%.

Imports by polymers processing technologies:
foaming;
injection molding

SIBUR announces new joint venture with IOGCE

MOSCOW (SIBUR) - SIBUR affiliate ⌠Sibur-Gasservice and Interregional Oil and Gas Complex Exchange (IOGCE) have presented the joint project of exchange sales of liquefied petroleum gas to Federal Antimonopoly Service (FAS).

SIBUR has been daily supplying IOGCE with over 20 lots of automotive propane-butane, technical propane-butane sales, EXW, and delivery in tank-containers to railway stations since April 2010. Sales of liquefied petroleum gas with IOGCE promotes the expansion of SIBUR sales geography and attraction of new customers.



MRC
MRC Reference

Sibur Holding is the largest Russian petrochemical group.

Shareholders:
Gazprombank (70% minus 1 share);
Gazfond (25% plus 1 share);
5% reserved for option program.