Europe ABS players witnessed spot price drop through March, contract values grew

(chemmonitor) -- Europe acrylonitrile butadiene styrene (ABS) players witnessed complicated market dynamics through the preceding month in the region.

The spot market remained relatively quiet through the whole month with few activity glimpses. Besides, a series of price drops took place starting from the first decade of March.

For instance, ABS traded on CFR NWE basis registered considerable reduction by USD 105 per tonne or 4.4 percent week on week on March 14.

MRC

(sibur) -- SIBUR has signed contracts to insure its business assets in a joint insurance scheme with the leading Russian companies Sogaz JSC and AlfaStrakhovanie Plc.

The integrated property damage and business interruption insurance provides cover for the property owned by the companies in the SIBUR group in the event of physical damages or loss of profit caused by human error in production. The policy covers the property assets of SIBUR's gas processing plants and of Tobolsk-Neftekhim LLC, and also the expected profit of SIBUR Holding CJSC. The policy allows up to USD1.3 billion to be paid in compensation for each insurance case.

The integrated insurance policy is based in the Western market and is reinsured by companies with a credit rating of at least A-, according to Standard & Poor. This rating threshold guarantees extremely reliable insurance cover.
The policy is one of the largest taken out by Russian oil and gas and petrochemical companies, both in terms of its geographical scale and the size of the cover acquired. It will allow the company's cash flow to be stabilised, and will reduce the negative impact of potential technological risks to SIBUR's financial and economic operations.
MRC

MOSCOW (MRC) -- Russian producers amid growing global demand and price quotations of oil increased the April contract prices of polyethylene by Rb1,000-2,500/tonne. Before the scheduled stops on the turnarounds the prices of LDPE rose most significantly, according to ICIS-MRC Price report.

In April, Russian producers of PE expectedly raise prices. Growing oil price quotations in the world and increased domestic demand were the main drivers of price hike. The situation in the market of LDPE was tightened by oncoming stops on the turnaround of plants in Kazan and Ufa. Nizhnekamskneftekhim and Kazanorgsintez increased the contract prices of HDPE for April by Rb1,000-1,200/tonne. Kazanorgsintez increased the contract prices of PE80. Nizhnekamskneftekhim increased the contract prices of film and pipe HDPE. By middle of this week the spot prices of film polyethylene have been settled at Rb65,000-66,500/tonne, including VAT, CPT Moscow.

This week Sibur, which controls Tomsknefehim assets, and Kazanorgsintez announced an increase in contract prices of LDPE by Rb2,000-2,500/tonne. Kazan plant is to stop its LDPE facilities on a month turnaround from April 14. In late April, Ufaorgsintez stops one of the reactors for LDPE production on two-week turnaround. The seasonal increase in demand and oncoming turnaround resulted in serious increase in the spot prices. The price quotations of 158-LDPE this week reached a Rb60,000-64,000/tonne, including VAT, CPT Moscow.


MRC

MOSCOW (MRC) -- Ukrainian parliament submitted an amendment to the Law "On Customs Tariff of Ukraine" (╧9241-d), according to which the import duties would be increased for 500 commodity items. The draft law suggests the growth of import duties on polymers and polymer products, according to MRC analysts.

On 30 March, a group of Ukrainian deputies registered in the Verkhovna Rada the draft amendments to the Law "On Customs Tariff of Ukraine" (╧ 9241-d). On 3rd April, a draft law was submitted to the deputies consideration. According to the amendments, the rates of import are expected to be increased on 500 commodity items, which can replenish state budget by UAH 2 bln annually.

The import rates are to be raised to the level permitted under the commitments which Ukraine took joining the WTO.
The list of commodity items, which are expected to be increased in import duty, includes colourants, pigments, paints and varnishes, lutes, varnishes (group 32), plastics, polymers and finished products from these chemical products (groups 38 and 39).

According to the draft law, there will be increased import duties on copolymers of ethylene, propylene and styrene (FEACN codes 3901 30 00 00, 3901 90 90 90, 3902 30 00 90, 3903 30 00 00, 3903 90 90 00) up to 6.5%. The unmixed PVC and vinyl chloride copolymers (FEACN codes 3904 10 00 00 and 3904 40 00 00) are supposed to grow from 0% to 5%. Import duties on PET (FEACN codes 3907 60 80 00) will grow from 1% to 6.5%. Under the amendment the import duties on finished products made from polymers are expected to be increased to the maximum possible in the WTO - from 6.5% to 10%.

Ukraine is net importer of many polymers groups, in particular, copolymers of ethylene, propylene and styrene, vinyl chloride polymers, compound ether, etc. The most serious dependence is observed in the polymer group of unmixed PVC and PET. Last year, according to the MRC data, the import of these polymers to Ukraine made about 150,000 tonnes.

The increase in import duties on 500 commodity items is expected to be effective from 1st July 2012.



MRC

(downstreamtoday) -- Chevron Phillips Chemical Co. is adding to the petrochemical party. The Woodlands-based company on Monday announced it would build in Baytown the world's largest plant, by capacity, for making a key component of plastic resin: 1-hexene.

The plant, which Chevron Phillips will begin building this year, is scheduled to start operations in the first quarter of 2014 and have an annual production capacity of 250,000 metric tons, or 551 million pounds, according to a company announcement.

The plant is the latest industry project aimed at taking advantage of newly tapped supplies of natural gas liquids that are expected to be abundant and cheap amid a boom in production from shale.

The chemical 1-hexene, derived from ethylene, is used to manufacture polyethylene, which in turn is commonly converted into film, pipe, detergent bottles, and food and beverage containers.

Ethylene itself is derived from ethane, for which production has grown substantially in the United States because of advances in drilling techniques that have tapped into large, cheap supplies of natural gas liquids.
MRC