In February Ukrainian converters doubled PET imports

MOSCOW (MRC) -- In February import supplies of PET significantly grew in the Ukrainian market. Last month converters and trading companies imported about 20,600 tons of PET granulate that was by 14,600 more than in January, according to MRC DataScope.

At the beginning of the year many local companies announced their intention to increase purchases of the granulate on the back of a more attractive price in the external markets as well as preparation for the season. As one converter said, preforms producers that have available circulating assets decided to use the moment for making purchases.

The growth of contracts from the Ukrainian companies was stipulated by the growing price for the components and PET that allowed to forecast a higher price in March.

Gatronova supplies became record over the whole period of the Ukrainian imports. The biggest Ukrainian converter purchased about 10,000 tons of PET grade A-80 of Pakistani production. There was also a sharp increase in supplies of the Belarusian PET. In general, about 2,300 tons of bottle PET were shipped to Ukraine. Imports from Litva doubled. The Ukrainian converters resumed polymer imports from UAE. Supplies of the Chinese PET decreased, mainly at the expense of shifted purchases in favor of the Middle Eastern material. Imports of the granulate from China made about 2,000 tons that was by 500 tons less than last month.

MRC

(romania-insider) -- The Romanian state will sell the majority stake in the chemical producer Oltchim Ramnicu-Valcea in a bid organized on May 31.

The deadline imposed by the International Monetary Fund (IMF) for ending privatization procedures was end-April. The privatization process will have two stages, and selected investors will be able to negotiate the acquisition of Arpechim, Olthim's main supplier, directly with its owner OMV Petrom.

Romania will sell 54.8 percent in Oltchim and four companies have so far stated interested in the company: Russian TISE, Forte from the United Arab Emirates, Romanian Rompet Romgas and German PCC - already a minority shareholder in the company.

The state will negotiate with the potential investors based on price offers, the only criteria taken into account. The negotiation will be based on evaluation pointing to a EUR 300 million price tag for Oltchim, if the company receives raw material from Arpechim, currently owned by Petrom. Without the raw material supply contract, Oltchim's value is almost zero, reveals an official document quoted by Mediafax.

The Government plans to turn Oltchim's debts into shares and sell them to the future investors in the company. This would increase the company's social capital and dilute the stakes of minority shareholders that unable to put money down to keep their current stakes. The European Commission agreed with the move earlier in March, ruling that this does not constitute state aid.

MRC

(reuters) -- Fitch Ratings has downgraded Turkey-based petrochemicals producer Petkim Petrokimya Holdings A.S.'s (Petkim) Long-term foreign and local currency Issuer Default Ratings (IDRs) to 'B+' from 'BB-'. Fitch has also downgraded Petkim's National Long-term rating to 'A-(tur)' from 'A+(tur)'.

The rating action reflects a downgrade of Petkim's standalone IDR to 'B' from 'BB-' and a simultaneous one notch uplift to 'B+' for support from State Oil Company of the Azerbaijan Republic (SOCAR; 'BBB-'/Stable), Petkim's main shareholder.

In Fitch's view, Petkim's severe underperformance in Q411 highlights the company's vulnerability in the face of cyclical downturns and signals a further weakening in its competitive position, at a time of reduced demand visibility and increasing price volatility.
MRC

(reuters) -- Nordic Tankers A/S announced that on March 27, 2012, it has entered into a conditional agreement to sell its chemical tanker activities, including the organization for USD 30 million to a company controlled by Triton, a European investment firm.

The sale is a result of discussions between the Company and its banks driven by the debt position in the Company and continuing low freight rates. Nordic Tankers A/S will in the future be a tonnage provider with a fleet of six product tankers in the range between 37,000 and 73,000 dwt (deadweight tonnage).

A moratorium on deferred and ordinary instalments payable until March 31, 2013 has been agreed on for the product tanker fleet subject to certain conditions. The listed Company will change its name from Nordic Tankers A/S to Nordic Shipholding A/S.
MRC

(fibre2fashion) -- Teijin Limited announced a partnership with the China Chemical Fibers Association (CCFA) to pursue business opportunities in the fields of chemical fibers and related industries in China. This is the first time for the CCFA to enter into a comprehensive alliance with a foreign private business.

Teijin has already reached an agreement to set up a closed-loop system for recycling polyester with Zhejiang Jiabao New Fiber Group Co., Ltd., which is based in Shaoxing, Zhejiang province and is a group company of Jinggong Holding Group, a prominent company involved with environmental management.

The system will be created by leveraging Teijin's leading-edge proprietary chemical recycling technology and business expertise cultivated through the global expansion of its Eco Circle closed-loop recycling system.

China is a high-priority market in the Teijin group's medium- to long-term growth plan. The group aims to expand business in China through strategic alliances with local partners, expansion of production and R&D bases and development of environment-related businesses.
MRC