Global polymer trade impacted by rising freight rates

(plastemart) -- Sharply increasing freight costs are reported to be creating obstacles to global polymer trade- several sources complain that the volume of their shipments has fallen, and sellers complained that rising costs are forcing them to take a firmer stance on their prices.

International freight companies announced large freight rate increases for March in a bid to restore margins. Shipping companies in Europe have already announced additional significant freight increases for April after achieving most of their rate increase targets for March.

A trader offering Chinese and South Korean PET to overseas markets complained of having trouble maintaining competitiveness owing to rising freight costs. "Sales to some of our regular destination countries such as Russia and Brazil have fallen recently as rising freight rates have made it more difficult for us to offer at competitive prices in these markets," the trader complained.

Another trader importing PP and PE to the Turkish market also complained of facing greater difficulties in deal conclusion owing to the rise in freight costs. "Our shipments from Singapore to Turkey are down by around 20% when compared with the past month because of the increase in freight costs," the trader complained. In addition to complaints about reductions in volume, several sellers commented that rising freight costs are putting pressure on them to raise their prices even in the face of less than lackluster demand.


MRC

(plastemart) -- Graham Corporation -a designer and manufacturer of critical equipment for the oil refining, petrochemical and power industries, including the supply of components and raw materials to nuclear energy facilities, has secured USD8 million in orders that are expected to be delivered in the fourth quarter of Graham's fiscal year 2013, which ends March 31, 2013.

The steam surface condensers for the China-based project will be used in a plant that produces petroleum products from coal. As the world's largest producer and consumer of coal, China has embraced CTL technology.

The petrochemical project in the Middle East is for an ethylene facility. Petrochemical projects have been advancing with the gradual improvement in the global economy. All five steam surface condensers will be built in Graham's Batavia facility.
MRC

(observer) -- Nova Chemicals expects to receive feedstock in the form of Marcellus shale ethane as early as mid-2013.

An application is being sent to the National Energy Board for an 8 km pipeline extension to link to an existing St. Clair River crossing for Marcellus shale gas. Nova plans to expand ethylene production at its Corunna site, increase polyethylene production at its Moore site, and is eyeing the possibility of a new world-scale polyethylene plant in Sarnia-Lambton.

The Corunna cracker is being converted to use all natural gas liquids by 2014. The unit can currently handle ethane, butane, crude oil, propane and other materials. Construction of the project estimated to cost up to USD250 mln, will start to ramp up in Q3/Q4, upon environmental approvals.
MRC

(polyestertime) --Lukoil and Gazprom Neft may retreat as much as 10 percent over the next few weeks as waning concern over tensions with Iran brakes oil's advance, according to Quesnell Capital SA.

Lukoil, Russia's biggest non-state crude producer, has jumped 22 percent in U.S. trading in 2012, while Gazprom Neft, the oil arm of gas export monopoly OAO Gazprom, has added 12 percent as Iran's threat to shut the Strait of Hormuz, a transit route for a fifth of the world's oil, pushed Brent crude above USD125 for the first time in nine months. Futures (VEA) expiring in June on Moscow's dollardenominated RTS Index were little changed at 169,455 in U.S. trading on March 16.

Bets that Brent will continue to rally have dropped from a seven-month high reached on March 9 and options on West Texas Intermediate, the most liquid oil contracts, show traders are paying less to insure against price swings, data compiled by Bloomberg show. Concern that a reduction in Iranian exports will cut global oil supply is dissipating as the U.S. and U.K. mull releasing strategic reserves and Saudi Arabia, the world's biggest crude exporter, says it can make up for shortages.

"We've already seen a slowdown in the oil rally, I would expect some weakness in the oil stocks,"Ian McCall, a managing partner in Geneva at emerging-markets investment adviser Quesnell, which oversees 100 million Swiss francs (USD107 million) including Russian assets. "Once the rally tops, we may see a 5 to 10 percent pullback in Russian oil stocks over a couple of weeks."

MRC

(greenerpackage) -- PepsiCo has announced that it has developed what it says is the world's first PET plastic bottle made entirely from plant-based, fully renewable resources, enabling the company to manufacture a beverage container with a significantly reduced carbon footprint.

PepsiCo's "green" bottle is 100% recyclable and is made from bio-based raw materials, including switchgrass, pine bark, and corn husks. In the future, the company expects to broaden the renewable sources used to create the bottle to include orange peels, potato peels, oat hulls, and other agricultural byproducts from its foods business.

Combining biological and chemical processes, PepsiCo has identified methods to create a molecular structure that is identical to petroleum-based PET, which results in a bottle that the company says looks, feels, and protects its product identically to existing PET beverage containers.

PepsiCo will pilot production of the new bottle in 2012. Upon successful completion of the pilot, the company intends to move directly to full-scale commercialization.
MRC