Demand outlook optimistic for Europe olefins

BUDAPEST (ICIS)--There will be increased demand for European olefins next year and crackers will be running at full capacity, market sources said on Monday. Speaking on the sidelines of the 44th annual European Petrochemical Association (EPCA) meeting, ethylene (C2) and propylene (C3) producers and consumers remarked that the mood was upbeat and that the expectation was for increased demand through 2011. ⌠We have had first [demand] nominations for 2011 and they are looking good, a major producer said. He added that compared with 2010, next year's nominations were showing a marked increase.

This year so far has been widely described as better than expected, with European ethylene and propylene derivative markets supported by robust exports and the failure of new Middle East capacity to make as much of an impact as had been feared.

MRC

(prw) -- Global packaging manufacturer Amcor has bought one of its supplier companies, B-Pack Due, a cast polypropylene film manufacturer based in Campiglia Marittima, Italy. B-Pack is part of the ┬130m Colines Holdings Group.

The move heralds expansion by Amcor into the cast PP market; Amcor's film business is almost exclusively based on blown production. The deal also includes Amcor signing an exclusive supply agreement with Colines, which manufactures film production equipment, covering large CPP lines.

⌠The exclusivity agreement, which covers large capacity lines, provides Amcor with protected access to a world-leading CPP manufacturing technology that will serve as a platform for anticipated further expansion in CPP films, Amcor said in a statement.

A spokesman for Colines said the detailed terms of the supply agreement with Amcor would not be disclosed. However, he made clear that it was a reciprocal arrangement - Amcor would only buy Colines large cast lines and it in return will not supply its large CPP systems to other film producers.

Melbourne-based Amcor paid ┬43m for B-Pack Due, which had sales in 2009 of ┬43m.

Colines Holding's B-Pack barrier film business and its IP structured packaging operations are not included in the Amcor sale. The B-Pack facility at Nibbia in Italy houses two 2-meter-wide cast lines (five- and seven-layer) and three blown lines (two five-layer and one seven-layer).

The B-Pack barrier film operation has a production capacity of around 15,000 metric tons per year and specializes in medical and food films. Together with the IP structured packaging business, it represents annual sales or around ┬50m.

MRC

(prw) -- Nampak Plastics Europe has acquired the whole of the business of FourFourTwo. Both companies specialise in the manufacture of HDPE milk and juice bottles, which they supply to dairy processors and juice manufacturers in Great Britain and Northern Ireland.

Eric Collins, managing director of Nampak Plastics, said: ⌠We look forward to working together with FourFourTwo's employees and its customers. Customers will benefit from security of supply, access to better technical support and expertise, and access to environmental solutions, such as bottles made from recycled HDPE.

The acquisition was completed on 1 October 2010.

MRC

(Plastemart) -- Shin-Etsu Chemical is operating its expanded PVC plant in Plaquemine, Louisiana, at 100% capacity, as per Platts. Shintech's Plaquemine PVC plant's capacity was doubled to 600,000 tpa during the expansion after which the plant was restarted in September.

Shin-Etsu's PVC business in USA is operated by Shintech, Shin-Etsu Chemical's wholly owned subsidiary.

MRC

MOSCOW (MRC) -- PVC imports in Russia remained at a high level in September and reached 53,5 kt over the three weeks of the month - according to MRC analysts.

Chinese PVC supply was not stable in September. One of the reasons was joint counter-terrorist excercise of China and Kazakhstan, which disrupted cargo transportation through these countries. Some exporters also switched to suspension supplied from North America due to more attractive prices.

State holidays are being held in China between October 1 and 10, and the resumption of systematic PVC supply is expected in H2 October only. The Chinese government has limited the production at hazardous chemical plants, including those that produce acetylene-based PVC.

The increase of buying activity in Asian markets, including China, and low capacities utilization at acetylene PVC facilities in September led to price increase. Traditional Chinese PVC suppliers have increased October resin prices on average USD 30-50/mt.

Russian polymers market prospects will be discussed at Russian Polymers Summit on October 14, 2010 organized by ICIS and MRC. For more information please refer to http://www.icisconference.com/russianpolymers/ Summit official web page.

MRC

More information about PVC market in Russia is available in MRC Price reports.