China's domestic PVC market trades below imports on poor demand

(plastemart) -- China's domestic PVC market has been mostly unresponsive to the steadily rising import prices since the beginning of 2012, causing the domestic market to trade at a discount when compared to imports.

Contrary to the revived demand in many other regions that paved the way for import prices to rise, buying interest has been sluggish in China's domestic PVC market. Many producers complain about having to work with unsatisfactory margins as they cannot up-adjust their domestic PVC prices to avoid further dampening demand inside the country further.

Indeed, persistent problems about the global economy have resulted in slower demand for all end product applications in China. The world's second largest economy faced its largest trade deficit in 23 years in February as Europe's debt crisis hampered overall exports while overall imports surged following the Chinese New Year holidays.

While China's economic growth has moderated for the past four quarters in line with the curbed export demand and the government's earlier decision about restricting lending in order to tame inflation, the Chinese government cut its economic growth target to 7.5% for 2012 in early March for the first time after keeping it at around 8% for the past seven consecutive years.

MRC

MOSCOW (MRC) -- In February, overall production of bulk basic polymers in Russia made about 290,000 tonnes. The two months output of polymers this year exceeded 586,000 tonnes of polymers, according to MRC ScanPlast.

In February, the Russian producers made about 290,000 tonnes of bulk polymers (polyethylene, polypropylene, polyvinyl chloride, polystyrene, styrene plastics, PET). In January, the figure made about 296,000 tonnes.

Last month, the volume of polyethylene from Russian producers made about 120,000 tonnes, which was 5% down in comparison with the January figure. In January-February, the total volume of production of polyethylene in Russia made about 246,200 tonnes, which was 9% less compared to the same period a year ago. The decline in production resulted from suspension of HDPE production at Stavrolen (Lukoil Group).

In February, the production of polypropylene in Russia made a little more than 48,100 tonnes. In January, this figure was about 48,650 tonnes. In January-February, Russian producers made about 96,800 tonnes of polypropylene and its copolymers, which was 12% down compared to the same period a year ago. It resulted from the the accident at the third-largest in Russia production of polypropylene - Stavrolen. At the end of last week, the company resumed its work. Injection moulding PP-homo by Stavrolen production has appeared in the market, but the level of capacity utilization does not exceed 50% (with an annual capacity of 120,000 tonnes).

Last month, Russian producers made about 55,000 tonnes of unmixed PVC. Within two months of this year the output of PVC made over 110,000 tonnes, which was 15% up year on year. The growth in production resulted from increasing of capacity utilization of Caustic (Sterlitamak).

At the beginning of last year due to a conflict on the price of ethylene with Gazprom neftekhim Salavat, Bashkir company operated with reduced capacity utilization. The seasonal factor has led to a decrease in production of polystyrene in Russia in February. At the end of the month there was achieved around 26,500 tonnes of polystyrene and styrene plastics. In January-February, the production volume of polystyrene in Russia made about 56,000 tonnes, which was comparable to the same period last year (55,600 tonnes).

In February, PE production in Russia did not change significantly and stayed at January's level. In general, in February, output made 35,400 tonnes of granulate. In the previous month the figure made 35,700 tonnes. Last month the capacities utilization at Kaliningrad plant Alco-Naphtha increased which led to production increase by 2,000 tonnes.


The plant intends to achieve project capacities in the first half of this year. Performance of the plant Polief decreased. Due to unscheduled turnaround the company gained by 2,000 tonnes of bottles PET less than in January. In general, the current output exceeds the figures of last year. Due to the launch of new domestic facilities in the period from January to February in Russia produced 71,000 tonnes of PET. Over the same period of 2011 the plants gained about 53,000 tonnes.

MRC

(plastemart) -- The global Plastic Film and Sheets market is forecast to reach 56.6 mln tons by 2017, mainly driven by burgeoning demand from end-use markets, competitive advantages over traditional paper and foil, and technological advancements.

Changing consumer dynamics particularly in the food and non-food packaging industries, economic recovery, and growing prominence of developing Asian, Middle East and Latin American markets will further accelerate the pace of development. Plastic film, used for packaging of both food and non-food products apart from various other plastic products, is the largest sub-sector of the plastics processing industry.

Primary applications of plastic films include food packaging, shrink-wrap, stretch-wrap, carrier bags, bin bags, and heavy-duty sacks, and agriculture and building applications. Globalization and consolidation have impacted the plastic film industry to a considerable extent. Changing consumer dynamics and patterns are revolutionizing the food-packaging market, which is witnessing an increased preference for plastic film and sheets, compared to other flexible packaging materials such as kraft paper, aluminum foil and cellophane film.

Cast film continues to make inroads into those application areas that are historically led by BOPP film. Significant advancements in process capabilities coupled with enhanced resins and improved equipment have filled most of the wide existing gap between BOPP film and Cast PP film. The second-generation LLDPE products are likely to substitute plastics in film and other non-plastics because it offers improved properties such as greater degree of film toughness, processability, clarity and lower cost.

The plastic films industry is characterized by product diversity and competition in the market remains fragmented with the presence of both large-scale manufacturers and small producers. Major players profiled in the report include Achilles Corporation, AEP Industries Inc., Applied Extrusion Technologies (AET), Bemis Company, Inc., Berry Plastics Corporation, British Polythene Industries, DuPont Teijin Films, ExxonMobil Chemicals, Futamura Chemical Co., Ltd., Inteplast Group Ltd., Nylex (Malaysia) Berhad, Okura Industrial Co., Ltd., Polyplex Corporation Ltd., Reynolds Flexible Packaging, Quinn Plastics, SABIC Innovative Plastics, Sealed Air Corporation, SINOPEC Shanghai Petrochemical Co., Ltd., Sumitomo Bakelite Company Limited, Toray Plastics, Toyobo Company Ltd., Trioplast Industrier AB, Unitika Ltd., and Vibac Group, among several others.

MRC

(plastemart) -- A new amine-free antistat solution for BOPP (bi-axially oriented polypropylene) and PP (polypropylene) film delivers a unique combination that helps ensure safer chemistry for food packaging. The new product - GRINDSTED AR100 - will be featured in by DuPont at NPE along with other bio-based additives .

"DuPont has strength and depth in antistat solutions for polyolefins, and our new product is something that the market has been seeking for some time," said Bjarne Nielsen, senior applications manager, DuPont Polymer Additives. "Antistats are an important additive in many different packaging applications serving a well-defined purpose: preventing the attraction of dust and other fine particles to the polymer surface that would otherwise render a packaged product unattractive. There is a widespread desire today to avoid traditional ethoxylated amine chemistry wherever possible as demands for unquestioned safe chemistry in food packaging grow steadily."

The new product is aimed at the food packaging industry. "Brand owners are striving to improve all aspects of product safety, and the fact that GRINDSTED AR100 can be used at any loading level to obtain the optimal, desired performance and that it is a 1:1 alternative makes it an obvious choice in PP packaging applications," said Mick Potenza, DuPont Polymer Additives account manager, USA. "We expect the product to be a leader in its field on both sides of the Atlantic."
MRC

(hydrocarbonprocessing) -- Valero Energy said Monday that due to unfavorable refinery economics and the outlook for continued unfavorable refinery economics, refining operations will be suspended by the end of the month at its 235,000 bpd refinery in Aruba.

The refinery has been operating at reduced rates because of inadequate margins resulting in financial losses.

Over the past two years, Valero has thoroughly evaluated all of its alternatives for the refinery and is now considering the possibility of operating a terminal and storage operation at the site.

For the immediate future, Valero will maintain the refinery in a state that would allow a restart.

"We appreciate the diligent and incredible efforts of Prime Minister Eman and his government in helping Valero find an economic alternative that would allow continued operation of the refinery," said Valero CEO Bill Klesse.

"If it had not been for the efforts of the Prime Minister, the refinery would not have restarted in late 2010 and operated over the past 15 months. Our discussions with interested parties, including those facilitated by the Government of Aruba, will continue."
MRC