Sentiments improve in Turkey's PET market

(polyestertime) -- Turkish players report that sentiment has improved in the PET market over the last week. Sellers started to receive an increasing number of inquiries from buyers in line with the opening high season for PET bottle applications amidst warmer weather conditions.

Most sellers reported achieving better sales compared to March, although, firmer sentiment has yet to affect import prices. This is mainly because spot feedstock markets followed a steady to slightly softer path recently.

In Asia, where spot feedstock costs recorded gradual drops during March, MEG and PTA prices gained some ground during last week, while PX prices softened further.

Import PET offers into Turkey saw stable prices or relatively smaller decreases compared to the previous weeks when there were persistent price cuts during the the second half of March, owing to cautious purchases of buyers amidst their sufficient stocks as well as bearish feedstock markets.

In the light of better sentiment, domestic PET producers have been following flat pricing strategies since the
start of April after issuing price cuts late last month. A source from a PET producer reported that their sales
performance improved. ⌠

MRC

Cabot breaks ground on China carbon black plant

(hydrocarbonprocessing) -- Cabot and joint venture partner Risun Chemicals broke ground on a new carbon black manufacturing facility in Xingtai, China. The new plant will have a Phase I manufacturing capacity of 130,000 tpy of carbon black, and will enable Cabot to increase its carbon black output in China by 25%.

Cabot Corp. and joint venture partner Risun Chemicals Co. broke ground Tuesday on a new carbon black manufacturing facility in Xingtai, China.

The project, announced in March 2011, is scheduled to be completed in mid-2013. Cabot and Risun are investing approximately USD140 million in the new facility, they said, with Cabot owning a 60% equity interest.

In the partnership, Cabot says it brings technology advancements and a leadership position in China while Risun provides the feedstock and energy integration capabilities with its current operations.

The new facility, located about 250 miles (400 kilometers) south of Beijing in Heibei Province, will help support tire and automotive growth in China, officials said.

Carbon black is a reinforcing agent essential in the manufacturing of tires. The material is also used in many automotive parts, including adhesives and sealants, battery materials, coatings, and more.

According to IHS Automotive, China's motor vehicle fleet is expected to grow to approximately 315 million vehicles over the next 10 years, up from 102 million vehicles today.

The new Xingtai facility will have a Phase I manufacturing capacity of 130,000 tpy of carbon black, and will enable Cabot to increase its carbon black manufacturing capacity in China by 25%, the company said.
MRC

ThyssenKrupp AG approves Etana deal in Kabardino-Balkaria

(polyestertime) -- The world's leading companies have started the construction of Europe's largest pure polymers plant ETANA in Kabardino-Balkaria. One of the world's largest industrial companies ThyssenKrupp AG has given permission for the construction of a new plant of its subsidiary Uhde Inventa-Fischer AG, acting as the general contractor and working in technological conjunction with Buhler AG (Switzerland), told ETANA plant's Director General Sergei Ashin.

According to him, the deal became possible after the adoption at the federal and regional levels of mechanisms for a significant reduction of overall risk. The Russian government and the leadership of the Kabardino-Balkaria Republic took unprecedented steps to support investment projects implemented in the South of Russia.

In addition, the ⌠absolute investment attractiveness of the republic with ⌠perfect investment laws and a growing economy promotes this, and its extensive transport infrastructure, proximity to the Black Sea ports and the maximum demand for the products in the regional economy create high competitive advantages, Ashin said quoting the foreign artners.

MRC

INEOS Q1 EBITDA down 19.4% year on year but up sharply from Q4

(ineos) -- INEOS Group Holdings S.A. confirms a significant improvement in trading in the first quarter of 2012.

Based on unaudited management information INEOS reports that EBITDA for the first quarter of 2012 was EUR465 million, compared to EUR577 million for Q1, 2011 and EUR190 million for Q4, 2011. Comparative information excludes the results of the Refining business, which was disposed of in July 2011.

Chemical Intermediates reported EBITDA of EUR233 million compared to EUR290 million in Q1, 2011. Chemical Intermediates experienced an improvement in performance in the quarter with solid demand across most sectors, which enabled the pass through of the recent increases in raw material prices.

The Phenol business reported a record quarter with good demand and a constrained supply situation (partially due to a heavy industry turnaround schedule) leading to healthy margins. The Oligomers business has experienced strong demand and healthy margins in all sectors.

Volumes and margins for the Nitriles business are now improving after a weak fourth quarter. The Oxide business had a mixed performance for the quarter with good EO demand in Europe partially offset by a weaker MEG market in Asia due to softer polyester demand.

MRC

Enterprise, Enbridge speed up Seaway oil pipeline reversal in US

(hydrocarbonprocessing) -- The Seaway pipeline reversal designed to help ease the glut in Cushing, Okla., will begin delivering crude oil to Gulf Coast refineries earlier than expected, a spokesman for the project said. The reversal had been expected to start up by June 1, but now could begin around May 17.

The Seaway pipeline reversal designed to help ease the glut in Cushing, Okla., will begin delivering crude oil to Gulf Coast refineries earlier than expected, a spokesman for the project said.

"It is running ahead of schedule, and we expect delivery of crude oil to begin during the later part of May," said Rick Rainey, a spokesman for Enterprise Products of Houston. The reversal had been expected to start up by June 1.

The Seaway reversal has been highly anticipated by the oil industry because the lack of transportation between the middle US and the Gulf Coast has caused a supply glut and dropping prices for North American oil as production surges from Canada and North Dakota.


The bottleneck is partially responsible for US benchmark oil prices trading about USD15/bbl below international prices. Seaway is joint project between Enterprise Products and Enbridge of Calgary that will move as much as 150,000 bpd this year from the main US oil storage hub of Cushing to refineries on the Gulf coast, and will be expanded to 400,000 bpd early next year.

It is competing with a rival project by TransCanada that could move about 700,000 bpd by mid-2013.

MRC