Supplies of pipe PE to Russia have surged by 10%

MOSCOW (MRC) -- Import supplies of pipe PE to the Russian market have been increasing steadily over the last two months. In May pipe PE import made about 9,400 tonnes. The year-to-date import grew by 10%, as per MRC analysts .

In May Russian companies increased import of pipe HDPE up to 9,400 tonnes, while in April this index was about 8,300 tonnes. In total, year-to-date imports of pipe PE to the Russian market slightly exceeded 34,000 tonnes, 10% up year-on-year.

Conversely, PE pipes makers claim that the current year is not that good and that the demand for the finished goods has decreased. The cold winter delayed the season of construction activities for more than a month. But the main reason is the absence of public investments in infrastructure. The fair share of Russian pipes was used exactly for construction of infrastructural facilities.

The growth of pipe PE imports to Russia was largely caused by the reduction of Russian makers’ output. This year’s output of the coloured PE100 by the domestic plants has increased by half (since February Nizhnekamskneftekhim has been producing coloured PE100 consistently).
In the meantime the output of PE80 reduced twice. One of the reasons is a shutdown of Stavrolen (Lukoil group).
The decrease in production volumes of pipe PE in Russia (down 14% from last year) was one of the reasons of growth in imports, as per MRC analysts.

A low demand for pipe HDPE in the local market has limited the price rise since the beginning of the year.
The prices of the coloured PE100 reached the average level of Rb67,000/tonne, including VAT, FCA Kazan. Uncoloured PE100 is offered on average at Rb65,500/tonne, including VAT, FCA Kazan and Nizhnekamsk.

MRC

European producers keep reducing their export prices

MOSCOW (MRC) -- European producers of polyethylene (PE) continue to reduce export prices in the CIS markets, trying to increase exports volumes to the maximum in order to balance the domestic market. This week the export quotations were reduced on average by EUR20-30/tonne, according to MRC analysts.

The ongoing fall of oil quotations, unstable market situation and an excess supply of polyethylene forced European makers to increase export sales. The production cutback due to the low demand could not balance the domestic market, which made European makers boost PE sales in the export markets to the maximum. The depreciation of the euro against the dollar was beneficial to them.

European export quotations of polyethylene have been falling since the mid May. This week was no exception, export prices for the CIS markets were reduced by EUR20-30/tonne The quotations of high-density polyethylene (HDPE) were voiced in the range of EUR1,080-1,160/tonne, FCA. LDPE was offered on average at EUR1,070-1,180/tonne, FCA.

It is worth noting that in most cases, shipment volumes are limited and may be delivered no earlier than the last week of June.

MRC

Year-to-date import of EPS to Ukraine increased by 11%

MOSCOW (MRC) -- Year-to-date import of expandable polystyrene to Ukraine made 8,500 tonnes, according to MRC analysts.

Since February 2012 imports of expandable polystyrene have grown rapidly. By the end of May it was imported 2,750 tonnes of EPS, which was up by 47%, compared with the supply in April 2012.

In January-May 2012, It was delivered 8,500 tonnes of material, which up 11% year on year.

The majority position in the supply structure takes Sibur-Khimprom. The company imported one third from the total EPS imports volumes to Ukraine, which made 2,700 tonnes in 2012. Where a significant volume of supply, namely, 1,250 tonnes was in May 2012.

The imports volumes of Chinese EPS have been decreasing this year. Thus, the Loyal deliveries in January-May 2012 made only 2,500 tonnes, which down 41% year on year.


MRC

CB&I to provide Feed services for NKNK's ethylene plant

(gtforum) -- USD 40 million contract awarded for front-end engineering and design services for 1Mta ethylene plant in Russia.

CB&I announced today that it has been awarded a contract valued in excess of USD40 million by Nizhnekamskneftekhim OAO (NKNK) to provide front-end engineering and design (Feed) services for a new ethylene plant. The work is scheduled for completion in 2013.

CB&I's project scope includes Feed for a 1.0Mta ethylene plant, a related butadiene extraction unit and a pyrotol unit, including offsites and utilities.

The U.S. CB&I is one of the world’s leading engineering, procurement and construction companies and a major process technology licensor.
MRC

Styron increased PS productivity

(styron) -- Styron Europe GmbH announced today that it has considerably increased productivity during the month of May by settling its PS EMEA monthly negotiated business within the first 10 days. This improvement was confirmed by measured key productivity indicators for the month of May.

Styron confirms that the following key productivity indicators were achieved following the early contract pricing settlement for polystyrene in EMEA in the month of May: 50% decrease in the number of invoice adjustments in May in comparison with the period January until March 2012; 60% decrease in the value of adjustments in May in comparison with the previous sixteen months.

Styron’s key customers also reported significant benefits and improvements. On March 16, Styron made an appeal for an improved process to settle contract pricing for polystyrene at the beginning of the month, effective as of May.

In mid-April more than 20 of Styron’s key customers had already endorsed the proposal to change the timing to the beginning of the month. In May, the company managed to settle 90% of Styron’s PS EMEA monthly negotiated business according to these new terms. A similar result was achieved in the month of June.
MRC