Index of chemical production in Russia fell by 0.6%

MOSCOW (MRC) -- In Q1, the volume of chemical production in Russia fell by 0.6%, the output of resin and plastic products grew by 2.8%, according to MRC analysts.

In March, the volume of chemical production in Russia grew by 1% year on year, according to Rosstat. In Q1, the production of chemicals fell by 0.6%. The largest decline in output fell on propylene, polypropylene and polyethylene (due to the accident at Stavrolen) and mineral fertilizers.

Last month, the production of mineral fertilizers (in terms of 100% of the basic substance) made 1,568 tonnes, 14% up than in February. In Q1, the production of mineral fertilizers decreased by 8% year on year. The production of caustic soda (in terms of 100% the basic substance) in March reached 94,800 tonnes. Over the first three months, of production of caustic soda rose by 8.2%.

In March, the production of ethylene and propylene made 202,000 tonnes and 96,800 tonnes, respectively. In January-March, the total production of ethylene and propylene decreased by 8% and 15% respectively year on year. The decline in production was due to an accident at Stavrolen in December. The production of styrene made 46,500 tonnes, styrene production grew by 0.9%.
The production of polyethylene, polypropylene, polystyrene and polyvinyl chloride last month reached 126,000 tonnes, 52,900 tonnes, 27,100 tonnes and 63,700 tonnes, respectively. In Q1, the production large volume polymers in Russia fell by 4%.


In March, the output of plastic products grew by 2.3% year on year. Production of pipes, fittings and hoses increased to 35,600 tonnes; plates, films and sheets unreinforced - to 66,900 tonnes; plates, films and porous sheets - to 13,500 tonnes, windows, boxes and polymer window sills - to 1.4 million sq.m.

In general, over the first three months, the production of plastic products increased by 3%. The production of pipes, fittings and hoses made 99,100 tonnes (up 7%), plates, films and sheets unreinforced - 170,200 tonnes (up 4%), plates, films and porous sheets -36,900 tonnes (up 20%); windows, boxes, polymer window sills - 3.2 million square meters (up 22%).


MRC

Linik stopped the production of PP

MOSCOW (MRC) -- Ukrainian producer Linik stopped on Monday the production of polypropylene (PP). The suspension of production resulted from the lack of feedstock for PP production, the production is to be resumed after the 20th of May, according to MRC analysts.

On Monday, Ukrainian producer Linik stopped the production of PP. The suspension resulted from the company's stoppage of oil refining in mid-March, and long-term turnaround of Ryazan refinery (TNK-BP Group), which is the main supplier of propane-propylene fraction (PPF) for the production of polypropylene.


After stoppage of its oil refinery Linik had to switch to the imported feedstock (PPF) from Ryazan oil refinery. Last month, Ukrainian producer managed to produce about 6,400 tonnes of polypropylene using both own stocks of PPF and feedstock from Russian refinery.

In April, Ryazan refinery stopped on long-term turnaround (about 45 days), and therefore the supply of PPF to Ukraine was suspended, and as a consequence, Linik had to stop the production of PP. Over the last fortnight, Linik produced about 2,800 tonnes of polypropylene. However, in late May Linik plans to resume the production of PP.


Over less than four months 2012, Linik produced about 23,600 tonnes of PP, which by one third down year on year.


MRC

Ukraine increased production of large volume polymers

MOSCOW (MRC) -- In January-March, the total production of large volume polymers in Ukraine rose by more than one and half in comparison with the previous year and made 95,000 tonnes. The main growth in production volumes were provided by Karpatneftekhim, according to MRC analysts.

In March, the total production of large volume polymers (polyethylene, polypropylene, polyvinyl chloride and polystyrene) in Ukraine grew to 37,320 tonnes, the largest increase in of production fell on the output of polyvinyl chloride produced by Karpatneftekhim (Lukoil Group).

Karpatneftekhim continues to increase the production of polyvinyl chloride. Last month, the company increased PVC production to 20,000 tonnes, having increased its capacity utilization to 80%. Over the first three months 2012, the total production of PVC in Ukraine made a little more than 40,000 tonnes.

Karpatneftehim works with 100% of capacity utilization. In March, the total production of HDPE increased by 7% compared with the February index - up to 9,350 tonnes. Production of HDPE grew due to the calendar factor. In Q1, the production volume of polyethylene reached 27,500 tonnes.

In mid-March, Ukrainian producer of polypropylene (PP) Linik stopped oil refining. The production of PP had been suspended by the beginning of this week. Last month, the company produce about 6,400 tonnes of the polymer. In January-March, the total production of PP made about 20,800 tonnes, which 23% down year on year.


In March, the production of PP grew almost twofold. Last month Stirol resumed the production of general purpose polystyrene. The output of PP by Stirol production made 1,500 tonnes. In January-March, the output of PS made a little more than 2,600 tonnes, which by 56% down year in year.


MRC

Sabic profits decline on China slowdown

(news.szenergy) -- Saudi Basic Industries, the world's largest petrochemical company by market value, said profit declined for a second quarter in the three months to the end of March because of a slowdown in demand from China and high oil prices.

The company, which is majority owned by the Saudi government, posted a 5 per cent decrease in net profit in the first quarter from the same period a year ago, according to a statement posted on Tuesday on the stock exchange. Profit totalled SR7.27bn (USD1.94bn) compared with SR7.69bn, the company said.

Sabic's products are used for a wide range of goods from retail to car manufacturing, meaning that the company's performance is tightly correlated to global economic activity. In recent years, the chemical maker has turned its focus to China and the east to serve demand for its products.

"China was growing at a higher rate before, then there was a slowdown in its economy, also the European slowdown and high oil prices had an impact on raw materials cost," chief executive Mohamed al-Mady told reporters in Riyadh.
MRC

Argentine move to seize YPF scuppers Sinopec deal

(news.szenergy) -- Argentina's move to nationalize local oil company YPF, controlled by Spain's Repsol, has scuppered years of planning by China's Sinopec Group to buy the South American company, sources said.

Bankers said China's second-largest oil company had held talks with Repsol to buy its controlling 57-percent stake in YPF. Chinese website Caixin.com cited a source as saying Sinopec had reached a non-binding agreement to take over YPF for more than USD15 billion.

But plans by Argentine President Cristina Fernandez to seize control of YPF, which have incensed Spain and sparked international criticism, have killed any hopes that state-owned China Petrochemical Corp (Sinopec) could seal a deal, they said.

"It's too hairy for any Chinese major to put in that much money, unless there is a special relationship with the Argentinian government, which I doubt," said a mergers and acquisitions banker, who has advised Chinese state-run oil companies on overseas acquisitions.

"This is a challenging situation for anybody given the government action. To me it looks like political suicide to now allow a Chinese company to own YPF soon after announcing the nationalization. I don't they can go flipflop like that."

Bankers said Sinopec's interest in YPF went back at least five years.

MRC