Fatal fire at Evonik will likely disrupt CDT supply

(pcimag) -- An explosion and fire that broke out March 31, 2012, at Evonik's CDT plant on the grounds of the Marl Chemicals Park, Marl, Germany, killed two Evonik employees and threatens to disrupt the supply of CDT-based products. Evonik announced that it is supporting the authorities investigating the cause of the fire and has started its own examination through an independent expert.

The company also announced that the incident will likely affect the supply of CDT-based products.

In a press release regarding the incident, the company said, "At the moment we still do not have any indication as to the full extent of the damage. While we do expect there to be substantial constraints with respect to our ability to provide supplies of CDT-based products, we are nonetheless confident that we will be able to provide alternative solutions in the form of substitutes such as VESTAMID Terra. It is possible to modify these bio-based polymers as required for many of the relevant applications to achieve much the same material attributes as PA12. We are already making every effort to ensure the facility is repaired and running and that we will be able to re-establish full supply capability as soon as possible."
MRC

(canplastics) -- China Liansu Group Holdings Ltd., said to be one of the largest manufacturers of extruded plastic products in China, is establishing a joint venture in Canada with Pickering, Ont.-based extrusion technology supplier Skyreach Group Inc.

The new company, called Skyreach L&S Extrusions Corp., will operate two divisions: the first providing vinyl profiles to the window and door industry, and the second supplying standard and custom-finished vinyl patio doors and basement windows, as well as decking, railing and fencing materials.

China Liansu Group, headquartered in Shunde, Guangdong, has over 3,800 employees worldwide, with operations in China, North America and over 20 other countries. The company develops, manufactures and distributes pipes, pipe fittings, valves, window and door profiles, window and door hardware, bathroom and kitchen faucets and plastic extrusion equipment.

Founded in 1991, Skyreach Group supplies vinyl extrusion production lines, such as extruders, extrusion tooling, and downstream equipment, and also manufactures extruded profile and window and door assembling equipment.

The new joint venture will be located in Vaughan, Ont.
MRC

(plastemart) -- The Russian government has no plans to change the export duty on crude oil and products, including high export duties for gasoline and naphtha.


In May 2011, the government introduced export duties for gasoline and naphtha at 90% of that for Urals to limit export of the products and resolve fuel shortages on the domestic market.

MRC

(plastemart) -- The arbitrage opportunity to move polyethylene cargoes from China to Southeast Asia is open, but cargo flow is still limited.

Traders are mainly moving linear low density polyethylene (LLDPE) from Chinese bonded warehouses to Southeast Asia, in a practice called "re-exporting." The main factor behind this has largely been slow PE demand in China due to lower-than-usual orders for finished products. Concurrently, this is the conventionally low demand season between April and May for the PE market.

This has caused a big gap between prices of ex-warehouse cargoes and shipment cargoes. China has been closed for a public holiday Monday to Wednesday, preventing any price movements.

PE in Southeast Asia has been on an uptrend due to tight local supply, particularly in Indonesia where domestic production has been low, especially of LLDPE, due to poor margins. Market sources were unable to pinpoint exactly when the arbitrage window opened, but have seen movements over the last two weeks. Traders in China prefer to hold on to their lower cost cargo.
MRC