BASF expanded global PolyTHF production

(plastemart) -- Equate Petrochemical Company intends to resume operations at its ethylene glycol unit by mid-November 2012.

Initially it was planned to resume operation at the facility in six weeks' time after its shutdown due to the fire that took place on July 31, 2012, as MRC informed earlier. Thus, there was a change in schedule from what was issued on August 2, 2012.

The unit's capacity is 550,000 mtpa of ethylene glycol.

Equate is the single operator of a fully integrated world-scale manufacturing facility producing over 5 million tons annually of high-quality petrochemical products, such as polyethylene (PE), polypropylene (PP), styrene monomer, ethylene glycol and palaxylene, which are marketed throughout the Middle East, Asia, Africa and Europe.
MRC

(Plastopedia) -- On Monday, Formosa Plastics Corp. announced that its board had approved a plan to sell up to 9 billion New Taiwan dollars (USD300 million) of unsecured corporate bonds over the rest of 2012.

The company said in a statement the maturity of the bonds would be less than 10 years and could be sold at various times. The statement said the funds would be used to expand production capacity, repay bank loans, invest in local or overseas businesses and fund operations.

Formosa Plastics Corporation is a Taiwanese company based in Taiwan that primarily produces polyvinyl chloride (PVC) resins and other intermediate plastic products.
MRC

MOSCOW (MRC) -- Federal Antimonopoly Service (FAS) of Russian Federation keeps investigating the case of cartel agreement in the PVC market. The executive department has begun interviewing clients of Russian SPVC makers, report MRC analysts.

FAS brought an action for violation of antimonopoly legislation against Russian PVC makers (PLASTKARD, KAUSTIK, SayanskKhimPlast), suspecting them in cartelization. The United Trading Company, Sibmanagement Group have also fallen under suspicion of FAS.

In August Russian converters started to receive letters from FAS with the request to answer a few questions regarding operating conditions and to provide information on purchases of PVC from these companies during the period of 2004-2006. Many converters, in their turn, do not share FAS’s opinion as regards cartel agreement in the PVC market.

SPVC market before the crisis year of 2008 was one of the most dynamically developing markets of large polymers in the Russian Federation. In the period of 2000-2008, the average annual growth of demand for suspension PVC in Russia made 24%. In 2004, Russian makers produced about 492 thousand tonnes of SPVC, in 2006 this index made about 545 thousand tonnes. Import share in 2004 amounted to about 1% and in 2006 it rose up to 18%. In their turn, on the back of high demand in the domestic market Russian makers slashed export of suspension from 121,6 thous. tonnes in 2004 to 544 tonnes in 2006.
MRC

MOSCOW (MRC) – An emergency situation was declared in the Louisiana State faced with the nearing storm Isaac. The shipments from Houston were suspended, which will worsen the ongoing delay in delivery of PVC from the U.S., as per MRC analysts.

President Barack Obama declared the state of emergency in Louisiana on approaching of tropical storm Isaac. The operation of the plants as well as shipments had been stopped because of the oncoming hurricane until August, 30. The shipment of goods in the port of Houston was also suspended.

Many market participants reported that due to the dockers' strikes in the port of Houston and delays of PVC supply from producers, the August supplies of PVC to Russia had been already disrupted on two - three weeks. This closure of the ports in the Gulf of Mexico can delay the shipments of PVC from the U.S. to Russia at least by a week.

The limited export quotas from the U.S. and strong demand from export markets have led to a serious increase in the price of the North American PVC. Price quotation of the resin for the second half of September rose to USD1,010-1,030/tonne, CFR St. Petersburg.

MRC