Russian producers of polypropylene left capacity utilization at rollover from the January

MOSCOW (MRC) -- In February, Russian producers of polypropylene left capacity utilization at rollover from the January. The total volume of polypropylene production made slightly more than 48,000 tonnes, according to MRC SkanPlast.

Last month, Russian producers of polypropylene left the capacity utilization at rollover from the January. The total production of polypropylene made 48,140 tonnes. In January, this figure was 48,650 tonnes. In February, Russian producers reduced the production of raffia and switched to the injection moulding grades of homopolymer of propylene. Volumes of production of propylene copolymers also decreased.

This year, three Russian producers increased the level of capacity utilization. The volume of polypropylene production at Ufaorgsyntez grew by 29% due to the use of external supplies of feedstock. Tomskneftekhim and Petrochemicals did not increase production so significantly: by 9% and 2%, respectively.

Over the weekend, the third largest Russian producer of polypropylene Stavrolen began working on a shortened schedule. Earlier this week, there were produced first lots of the injection moulding polypropylene, but the company still does not force the events. The shipments of polypropylene in the domestic market are not underway yet .

Because of the accident on December 15, 2011 at the gas distribution unit, company had to switch to imported propylene, which affects the level of capacity utilization.
At the end of the second quarter a new production at the Polyom site in Omsk is expected to be launched with a capacity of 120,000 tonnes per year on technology of LyondellBasell.

MRC

(polyestertime) -- Two Indian plastics powerhouses are building major PET film plants in the United States this year. The moves are putting significant pressure on longstruggling domestic producers. DuPont, the major producer through a joint venture with Teijin, wants to sell its PET film assets, according to several financial reports.

Uflex Ltd., India's largest flexible packaging company, is building a USD180 million plant in Kentucky with an initial
target capacity of 66 million pounds a year. Double that capacity is planned at the site. Polyplex is building a USD187 million polyester film plant in Alabama. Initial capacity will be 66 million pounds per year, with additional capacity planned for 2015.

Total U.S. production of PET film in the last two years has been running around 430 to 435 million pounds per
year. Almost that much-423 million pounds-was imported into the United States in 2010, according to data from
the U.S. International Trade Commission (ITC).

MRC

(chemmonitor) -- Asia-based polypropylene (PP) sellers do not seem to actively trade with Europe users. This is due to constant fluctuations observed in the market for oil.

Europe values adopted an uptrend this year on the back of rising costs for raw materials as well as the consumption growth. They increased by approximately one third from the end-2011 level.

Asia prices also moved higher in the existing month, following a series of decreases a month ago.
MRC

(vedomosti) -- Since the New Year, officials in the calculation of the oil duty stopped referring to the data from Platts and Argus, and began using the Reuters's data. Oil workers will have put out approximately USD400 million by the end of the year for this change.

Starting this year, Ministry of Economic Development must publish the price of oil Urals regularly, which is necessary for calculation of the export duty. Earlier in the official monitoring, there were used the data from agencies Platts and Argus, said a representative of Ministry of Economic Development. But the terms of the contracts with these agencies do not allow to publish the data on the Ministry website, explains the expert of the Ministry of Finance, Alexander Sakovich. So, since January, Ministry of Economic Development switched to the indices of Reuters.

Each agency has got its own method of calculation, Sakowich said: Argus's calculations are based on the spot deals per day, Platts also takes into account futures. Reuters's index deals with the value of closing trading session, which can be checked in Bloomberg. When volatility of the quotations is not significant, the difference in the data of Platts, Argus and Reuters is also small, says an analyst of Nomos Bank, Denis Borisov, but the differences used to increase when prices hike.

None of the three agencies gave comments to "Vedomosti".
Now the indices differ by more than $1, as per Sakovich calculations: the average value of Reuters last month made $123,3 per barrel, the Argus's - $122,7, the Platts's - $121,98. The April duty on the basis of these data was also different: Reuters - $460,6 per 1 tonne, compared with average Platts and Argus, which would be less by $2.6 and make $458.

If oil exports remain at the level of 17-18 million tonnes per month (in January, it was 17.8 million tonnes, in February - 16.2 million tonnes), an additional $2.6 from 1tonne will result in an increase of the tax burden by $45 million per month, Borisov has calculated. From April to December it will make about $400 million, which can be divided among companies as follows: "Rosneft"-$110 million, TNK-BP-$60 million, "Surgutneftegas"-$50 million, "Lukoil"-$45 million, "Tatneft"-$30 million, "Gazprom oil"-$25 million, others-$80 million.

Representatives of TNK-BP and "Lukoil" refused to comment, the rest are not available.
The switching to Reuters's data will cost about 7% of the tax savings that oil workers received from the transition to a system of taxation "60-66" (60% - the maximum coefficient in the formula for calculating duty on oil exports, 66%- a single rate of duty on the export of dark and light oil.)

MRC

(basf) -- Quantum Kapital AG, headquartered in St. Gallen, Switzerland, plans to acquire BASF's offset printing inks business (IMEX) in Maastricht, Netherlands.

Quantum is a financial investor specialized in the acquisition and the successful development of non-strategic businesses of large companies. The sale covers all BASF's offset printing inks activities and includes the transfer of all BASF employees in Maastricht dedicated to the business. Currently 57 employees are working for the IMEX business of BASF. Quantum plans to continue the IMEX business at the Maastricht site. Legal closing of the transaction will be in the third quarter of 2012. The profitable IMEX business is expected to total sales of about 60 million Euro in 2012 and is an important supplier of heat set printing inks worldwide. The partners agreed not to reveal the purchasing price .

BASF sold its printing inks and printing plates business in 2004. The IMEX business was part of BASF's acquisition of former Ciba in 2009. At the Maastricht site BASF currently produces offset printing inks and pigment preparations for the plastics industry. The pigment preparations activities will be continued. Overall, through process and site optimization measures, BASF plans to decrease the number of the remaining positions at the Maastricht site from 92 to 73 by end of 2013. Some BASF employees affected by the planned restructuring will be offered a transfer to the IMEX business, and thus subsequently transfer to Quantum.

MRC