Russian market is short of DOP

MOSCOW (MRC) -- By the end of June, Russian market had run short of plasticizer DOP due to unscheduled stop of Roshal plant of plasticizers. The situation in the market is expected to be improved by the end of July, according to MRC analysts.

In mid-June Roshal plant of plasticizers had to suspend its operation due to the lack of phthalic anhydride. As a consequence, in the last decade of June the Russian market experienced difficulties with the supplies of plasticizer DOP. Spot quotations by the beginning of July had risen on average by Rb3,000/tonne, compared to the June level. Currently, small volumes of DOP from Salavat are offered on average at Rb78,000/tonne, including VAT, FCA Salavat.

Roshal plant of plasticizers plans to resume its work on July, 15, however, due to a serious shortage of DOP the market is expected to be stabilized by the end of the month.

Market participants are sure that with the start of production the prices begin to grow.

MRC

Prices of HDPE began to grow in Russia

MOSCOW (MRC) -- In early July, prices of injection moulding HDPE unexpectedly began to rise, which resulted in a shortage of material in the Russian market, as per MRC analysts.

July in the Russian market of HDPE began with the deficit of injection moulding material and the price increase. The deficit was caused by prolonged stop of HDPE production by Kazanorgsintez, as well as Gazprom neftekhim Salavat’s switching to the production of pipe polyethylene.

Before that, Russian market was saved by the imports of polyethylene from Uzbekistan, but in April - May Shurtan GKhK suspended the deliveries of injection moulding HDPE to Russia and resumed them only in mid-June.

There are small volumes of injection moulding HDPE from Salavat in the spot market. The price quotations increased this week on average by Rb1,000/tonne, and started from Rb65,500/tonne, including VAT, FCA.

Market players expect next week the arrival of fresh volumes of Uzbek polyethylene, but it has been already sold out.

This situation is hardly to improve by the end of the month. Kazanorgsintez plans to resume the output of injection moulding HDPE in the end of July.

Gazprom neftekhim Salavat is to stop its PE capacities on the turnaround from July, 23.

MRC

PP in Italy trades at a discount as compared to Turkey

(Plastemart) -- The settlement of the monthly propylene contract with a EUR170/ton decrease in Europe has intensified the downward trend in place in Italy’s PP market for two and a half months.

Sellers are approaching the market with hefty decreases for July while the low end of the local spot market is expected to break below a new threshold. Along with these sustained decreases, Italy’s PP market appears to have lost its traditional premium over the nearby Turkish market, where PP prices have been on a rather stable to soft trend since the beginning of June.

European cargoes are being offered almost at par in both markets although Italy traditionally sees higher levels in its local market. The major reasons behind this situation are the ample supplies and unsatisfactory demand across Europe. demand is not likely to improve in the midst of the approaching summer holidays in August while supply remains long in the region.
MRC

Import of suspension PVC to Russia shrank by 29%

MOSCOW (MRC) -- In June import of suspension PVC made about 30,000 tonnes. In the first half of the year import of resin to Russia amounted to about 180,000 tonnes, down 29% year-on-year, report MRC analysts.
Moderate growth of demand for the finished goods made of PVC, ample supply of resin from Russian makers and a limited amount of current assets made many Russian traders cut purchasing volumes of suspension from foreign markets this year. Rouble devaluation in May increased the risks of importing. As a result, importing volumes keep falling.

In June importing volumes of suspension PVC to Russia made about 30,000 tonnes, down 10% from May. Imports of American resin slashed to 9,500 tonnes, while this index reached 36,000 and 26,000 tonnes, respectively, in May-June last year. As per initial estimates of MRC analysts, PVC supply from the USA is unlikely to exceed 9,000 tonnes in the nearest months.
Acetylene PVC supply from China made about 8,400 tonnes in June. Over the past two months import from China has decreased on average to 8,500 tonnes per month. Resin supply from Ukraine amounted to about 8,000 tonnes last month and will remain at this level in the near future.

In general, following the results of the first half of the year the total importing volumes of suspension PVC to Russia made up about 180,000 tonnes, down 29% year-on-year.

MRC

Norway Statoil to shut its production

(upstreamonline) -- Statoil is preparing to shut down production across its fields on the Norwegian continental shelf after a lockout notice was issued for over 6500 workers in an ongoing offshore strike.

The shutdown, due to take effect from 9 July, will result in an output loss to the state-owned operator of around 1.2 million barrels per day and lost daily revenue of Nkr520 million (USD87 million) – and could now trigger government intervention to resolve the damaging dispute.

Statoil said in a statement it would carry out a controlled shutdown of fields that would take one to four days, depending on the complexity of each installation, after Norway’s Oil Industry Association (OLF) issued the lockout notice on Thursday amid a continued deadlock in talks with unions.

OLF said the notice would cover 6515 workers with the Industri Energi, SAFE and Lederne unions, which already have 708 members out on strike in a battle with employers over improved pension rights. It would mean these workers being locked out from their workplaces from 10 July.

The OLF warned the shutdown of output would hit Norway’s reputation as a reliable oil and gas supplier.

The Oslo government has the power to force an end to the strike by imposing a compulsory settlement if it believes security or vital national interests are affected.
MRC