PTT Chemical to double ethylene capacity

(Reuters) -- Thailand's largest olefins maker-PTT Chemical Pcl, expects to operate its new 1 mln ton ethylene unit at 100% in 2010, from the current 50%. This is subject to the start up of the company's sixth gas separation plant of PTT, which is the main feedstock supply to the cracker, in Q4-2010. Chances of a fourth quarter start up seem bright after a ruling allowed lifted suspension of the gas separation plant, after work on it was suspended a year ago by a court ruling in an environmental dispute at Map Ta Phut.

MRC

MOSCOW (MRC) -- In July 2010, unblended PVC supply into the Russian market exceeded the level of 100 kt and amounted to 106 kt for the first time ever. The previous maximum was recorded in pre-crisis June 2008: 99,7 kt - according to MRC Monthly report on the Russian PVC market.

In 2009, the overall PVC market capacity (including compounds processing) decreased 25% compared to the previous year. PVC capacities utilization in Russia dropped to 85%. The PVC market went back to the level of 2006.

This year, the market has begun to recover rapidly. During the seven months of 2010 the level of PVC consumption increased 58%. Russian producers have raised utilization of their capacities, and lacking PVC volumes are delivered from Asia, the USA and Europe. In summer, spot supplies from the USA were the most attractive. In July, the share of imported resin amounted to 53%.

MRC

More information about the Russian PVC market is available in MRC Monthly reports.

PET market keeps up proving to be the most dynamically developing polymer market. PET imports in Russia in H1 increased 30,9 kt and amounted to 123,5 kt.

That trend is caused by increase in production of goods that use PET bottles for packaging. For example, production of mineral water grew by 13,6% in 2010.

The countries exporting PET into Russia are South Korea (61,2 kt) and China (51,9 kt). The overall share of these countries in imports amounted to 91,6%.

MRC

For more information about Russian PET market, please, refer to MRC Monthly reports.

The Russian expanded polystyrene market is totally dependent on imports. The current capacities of Russian producers can produce up to 3 kt of polystyrene.

The share of imported polystyrene is fluctuating within 70% - 85%. In July, overall EPS imports exceeded 12,6 kt. In November, the launch of the new SIBUR-Himprom 50.000 tpa site in Perm is going to let decrease imports share in the Russian market, but it will not fully meet the demand. The market will still be dependent on imports from Asia.

Traditionally, expansion of capacities is followed by the imposition of import duty to defend local producers. In terms of the Common Customs Union, from January 1, 2010 the common 0% import duty on expanded polystyrene in Belarus, Russia and Kazakhstan has been in effect. According to the desision of the Customs Union Committee ╧130 as of November 27, 2009, the zero import duty on EPS will be in effect until 2014.

Together with the Common Customs Union the procedure of changing import duty has become a lot more complicated. The EPS markets of these three countries are fully dependent on imports; and bringing in the defensive duty will only increase the polymer's price by the value proportional to the duty. As per MRC analysts, Russian producers will unlikely apply for import duty increase under current conditions.

MRC

For more information about the Russian polystyrene market, please, refer to MRC Monthly reports.

LONDON (Reuters) -- Royal Dutch Shell is in exclusive talks with Finnish fuel distributor St1 to sell the oil major's Swedish refinery, both companies said on Monday.

If the companies reach an agreement, it would be the second European refinery deal for Shell in a short period, following the sale of its German refinery in late August.

Shell has been looking for buyers for other refineries in Europe as a part of a plan to divest about 15 percent of its refining assets as margins are expected to remain weak for a long time in many developed countries, where industry experts say demand has peaked.

MRC