Hungary's Gazdasagi Versenyhivatal searched the offices of plastic pipe manufacturers

(PlastEurope) -- Suspecting price fixing, Hungary's competition authority Gazdasagi Versenyhivatal has searched the offices of several plastic pipe manufacturers.
On 16 December 2011, the authorities showed up unannounced at the Hungarian subsidiaries of Wavin (Zwolle/The Netherlands) and Pipelife (Wiener Neudorf/Austria) as well as the premises of local producer BTH Fitting (Vadna/Hungary). The latter had recently been acquired by Tessenderlo (Brussels/Belgium) as part of the Belgium company's takeover of BT Bautechnik.


The authorities are investigating whether the pipe producers engaged in price fixing in 2006, when and by how much they lifted prices and whether they divvied up regional markets among themselves in an effort not to compete with each other. GVH said the inquiry should be completed within the next six months, but cautioned that if the matter turns out to be more complex, the investigation could be extended by another six months.


MRC

Saudi Arabia's GASCO posted strong results for the close of 2011

(Arabian oil and gas) -- Saudi Arabia's National Gas & Industrialisation Company (GASCO), has posted strong results for the close of 2011. GASCO transports, fills and markets LNG under a mandate from the Saudi government.


The company, based in Jubail, Saudi Arabia, posted net profit for the last quarter of 2011 of SR 49.8 million (USD13.2 million compared to profit of SR 25.5 million (USD6.8 million) in 2010, an increase of 95%.


The operating profit during the fourth quarter SR 31.6 million (USD8.42 million)compared to SR 22.9 million (USD6.1 million) for the same quarter of last year, with an increase of 38%.


Annual operating profit increased by SR 3 million to SR 90 million (USD24 million).


In a statement to the Saudi stock exchange - Tadawul - GASCO attributed the operating profit hikes to an increase in sales, and a boom in net profit to the company's divestment of stakes in banks and other non-core investments.


Shares in the company have increased in value by 7.05% over the last year, according to Bloomberg data.


MRC

Formosa Petrochemical bought 75,000 tonnes of naphtha for February to March arrival

(Reuters) - Taiwan's Formosa Petrochemical has bought around 75,000 tonnes of naphtha for February to March arrival, bringing its total purchases since mid-December to over 350,000 tonnes, traders said on Thursday.


The volumes were bought at a price of flat to premiums of $1.00 a tonne to Japan quotes on a cost-and-freight (C&F) basis, lower than what it had recently paid at USD3.00 a tonne premium.


Formosa operates a 2.93 million tonnes per year (tpy) cracking complex which are currently running below full-tilt due to weak plastics demand from China.

MRC

BASF to sell its 50%-share in PEC-Rhin in Ottmarsheim

(BASF) -- BASF has signed a contract to sell its 50%-share in PEC-Rhin in Ottmarsheim, France, to its joint venture partner GPN, a member of the French Total Group.

PEC-Rhin produces CAN/AN (calcium ammonium nitrate/ammonium nitrate) fertilizers and the respective intermediates, ammonia and nitric acid. The company was established in 1966 and currently has about 180 employees.


The sale of BASF's fertilizer activities in Antwerp, Belgium to EuroChem as announced in September 2011 is ongoing as planned, subject to approval by the appropriate antitrust authorities.


The total transaction value for both deals is expected to be approximately EUR700 million. BASF plans to complete the transactions by the end of the first quarter of 2012.


MRC

Asia petrochemical demand and prices to firm post-Lunar New Year

(ICIS) -- Spot prices of petrochemicals in Asia may get a good nudge up following an expected virtual halt in trades next week as the region celebrates the Lunar New Year, with most market players hoping for a strong pick-up in buying activities.


China will be out of the market for a full week on 22-28 January, while Taiwan will have a three-day holiday. In South Korea, Singapore, Indonesia and Malaysia, the shift to the Year of the Dragon in the Chinese calendar will be celebrated for two days at the start of that week.


Prices of some petrochemical products in the region have either been falling or trading sideways since the start of the year, as demand traditionally weakens in the weeks leading to the Lunar New Year celebration, which is happening a bit early in 2012.

Some propylene sellers in northeast Asia expect prices to move up, to track the rising values of feedstock naphtha. An expected tightness in regional supply because of a slew of cracker turnarounds due in March should also give propylene prices a further boost, market sources said. Offers were scant this week as some traders prefer to suspend discussions until after the Lunar New Year holiday.


Spot propylene prices were quoted at USD1,350-1,400/tonne (EUR1,040-1,078/tonne) CFR (cost and freight) NE (northeast) Asia at midday on Friday, while naphtha values were at USD960.50-962.50/tonne CFR Japan.


MRC