Uralkali Ready to Cut Potash Output to Protect 45% Price Gain

(bloomberg) -- OAO Uralkali (URKA), Russia's biggest fertilizer maker, is ready to cut production to prevent potash prices from falling after Potash Corp. of Saskatchewan Inc. announced reductions this year.

⌠Our strategy is that price is much more important than volumes, Chief Financial Officer Victor Belyakov said. ⌠It's a strategy for most of the big players in the market. We usually cut some production to come up with a fair price.

Russian producers and those in Canada, like Saskatoon, Saskatchewan-based Potash Corp., account for about 65 percent of global output, said Mark Connelly, a New York-based analyst at Credit Agricole Securities USA Inc. Suppliers are seeking to protect a 45 percent recovery in benchmark U.S. Midwest potash prices since July 2010.


⌠If the Canadian and Russian producers are aggressive in matching supply and demand, it shouldn't matter very much what other producers do, Connelly said .

MRC

(Acron) -- In 2011 the Group's total commercial output was up 4.9% year-on-year to 5,821,600 tonnes, record high for the Group's history.

In 2011 the Group's ammonia output increased 2.8% and nitrogen fertiliser output rose 7.3% year-on-year. Demand for all nitrogen fertilisers remained strong in 2011 which allowed Acron and Dorogobuzh to maintain maximum utilisation of their production facilities. The Group's nitrogen fertilisers are in great demand both in Russia and in Asia, North and Latin America.

In H1 2012 Acron intends to commission a new urea facility with the production capacity of 330,000 tonnes per year which will enable the Group to boost urea and UAN production already this year.

In 2011 the environment of the complex fertiliser world market remained favourable. Due to this, all production facilities of the Group operated at high utilisation level and raised output 6.5% in this segment, including 20% increase in the output of bulk blends.

The Group succeeded in promoting its brand product NPK 16-16-16 in emerging markets of Asia and Latin America in the reporting year. In 2011, shipment of complex fertilisers to Thailand increased by the factor of 1.5, and supplies to Brazil more than tripled.

The Group posted higher output of industrial products which went up 8.4% in this segment (1,011,400 tonnes).

Due to recovery of demand for low-density and technical-grade ammonium nitrate on the part of industrial consumers (mining companies), the Group's Russian facilities increased its output 37.2% year-on-year.

Given the recovery of the Russian wood processing industry, urea-formaldehyde resin output was up 12.4% to 176,500 tonnes.

In 2011 the fertiliser world market was favourable for producers. The global demand completely recovered following the 2008/2009 crisis which made producers boost output volumes to meet the increased demand for fertilisers. Prices of all types of fertilisers continued growing all through the year.

However, in late Q4 the market underwent sharp correction caused by seasonal factors and temporary glut of supply on the market. In early 2012 prices partially recovered and stabilised. In 2012 the balance between demand and supply in the world market is expected to remain favourable for fertiliser producers.

MRC

(arcema)-- Arkema announces a EUR100/tonne price increase of its Garbeflex DOP effective from February, 1st.

This increase is necessary because of the important increase of the Garbeflex DOP╝ raw material (propylene and orthoxylene) prices beginning of year 2012.

Marketed under the tradename Garbeflex DOP╝, this di(2-ethylhexyl) phtalate plasticizer is used primarily in the manufacture of flexible PVC, which has wide-ranging applications from films and sheets to cables and hooses. It is also used in the production of medical devices such as blood bags.
Hausse de prix du Garbeflex DOP╝

MRC

(chemmonitor) -- The Netherlandian company LyondellBasell intends to permanently suspend operations at two its manufacturing lines employed in polypropylene (PP) production.

The lines are situated in Wesseling (Germany). They are expected to be shut by July 2012. The facilities generate 0.09 million tonnes per year in total.

The closure is aimed at reduction of production costs. The manufacturer will be able to fully meet its purchasers' demand for the material despite the shutdown.

MRC

(chemmonitor) -- Several production units engaged in polyethylene (PE) and polypropylene (PP) production recommenced their activity at Al-Jubail (Saudi Arabia) last week. The facilities belong to SABIC, a domestic maker.

The plants were idle for 2 days on the back of the power outage at the locality.

The company does not estimate its production losses as large ones.

The accident affected also others PE and PP manufacturer running plants at the site. They were forced to suspend operations, as well.

MRC