European makers will increase PVC prices by EUR80-140/tonne

MOSCOW (MRC) – European makers intend to get an increase in PVC prices by EUR80-140/tonne in September despite the growth of ethylene prices by EUR125/tonne, report MRC analysts.

The contract price of ethylene in Europe has grown for September shipments by EUR125/tonne from August level. The current price rise of ethylene means that production costs of PVC in Europe have increased by about EUR65/tonne. But European makers are going to get a more significant rise in PVC prices for September shipments to foreign markets, including CIS countries, on the back of low production margin.

Negotiations on September level of export prices for CIS countries markets already began last week. Some PVC makers voiced the rise of export prices by EUR140/tonne from August. This week negotiations on September prices are going on. There are announcements of rise in prices by EUR80-120/tonne. However, it is reported that some European makers are in no position to cover all the incoming requests for PVC shipment.
MRC

(plastemart) -- China and India are expected to drive the thermoplastic industry due to low-cost labor availability, and downstream processing capacity additions are anticipated to contribute to steady industry growth in Asia Pacific (APAC). The industry, which had good growth over the last five years, is expected to continue that growth momentum to reach approximately USD440 bln in 2017 with a CAGR of 4% over the next five years, as per a report by Lucintel.

The global thermoplastic industry is fragmented. APAC dominates the market and represents 41.4% of global revenue. A combination of factors such as feedstock price (crude oil and naphtha) and availability, scale and technology, ethylene sourcing, energy costs, distribution costs, environmental issues, and government regulations are likely to influence industry dynamics significantly.

The study reveals that innovations in packaging, rising living standards and population, increasing demand in end-user markets, and emerging economies are anticipated to boost the industry. The industry is expected to face certain challenges such as regulations to reduce CO2emissions, product commoditization, and crude oil and naphtha price fluctuations. The report tracks market one segment for four geographic regions: thus, it tracks four segments of the industry.
MRC

(closetsdaily) -- REHAU introduced its next generation of non-PVC products suitable for office design, store fixture and "green" kitchen projects at IWF 2012 (International Woodworking Fair, USA).

REHAU’s ECOSTYLE line of edgeband and tambour doors is available in the same selection of sizes and finishes––solid colors, wood grains, patterns and metallics - as its PVC line. The REHAU ECOSTYLE includes both PP and ABS, each of which has advantages related to specific application and processing capabilities, says the company. Polypropylene (PP) is a neutral synthetic manufactured completely of petroleum and is fully recyclable, odorless and physiologically harmless.

PP offers enhanced chemical and heat resistance, flexibility and resistance to fading than other non-PVC compounds, says the company. Acrylonitrile butadiene styrene (ABS) is used as a substitute material in PVC edges in carpentry and woodworking and has properties similar to PVC but is more weather resistant, so no stabilizing agents need to be added, says the company. It is impact resistant and highly heat resistant.
MRC

(plastemart) -- Formosa Petrochemical Corp reported the largest increase in monthly revenue among the Formosa Plastics Group’s four core companies.

The oil refiner said in the filing that its revenue last month rose 12.5% to NTD70.84 bln (USD2.37 bln) from NTD62.97 bln in July, bolstered by the recent price surges in global crude oil amid tighter supply, as well as higher prices for olefin products.

Crude oil output at its refineries rose to 474,000 barrels a day last month from 370,000 barrels at the end of July, with two of its refineries running at nearly 100% last month. These also contributed to the monthly increase in sales. On an annual basis, Formosa Petrochemical’s revenue surged 112.9% from NTD33.27 billion the year before, when the company was forced to shut down its refineries because of a string of safety incidents at its industrial complex in Mailiao. Formosa Plastics Corp, the group’s flagship company, said last month’s revenue edged up 0.5% month-on-month to NTD14.61 bln.

However, the figure was down 7.7% year-on-year. Last month saw increased sales of products such as polyvinyl chloride (PVC), but these were mostly offset by lower revenues from other products like polyethylene (PE) due to weak demand, the company said in a filing. However, the company said it expected to see strong revenue growth this month, along with a gradual increase in utilization rate, which it hoped would reach 87%, from 77% last month, and rise further to 93-94% next month.

Formosa Chemicals and Fibre Corp, producer of aromatics and styrenics, reported a 12.2% revenue increase to NTD22.44 billion from the previous month, and an increase of 3.7% from a year earlier. Nan Ya Plastics Corp, the nation’s largest plastics manufacturer, reported a sequential sales increase of 5.9% to NT$15.61 bln last month, as well as a slight increase of 0.1% from one year ago. Overall, the four core companies posted a combined revenue of NTD123.5 bln last month, up 10.02% from NTD112.26 bln in July and 43.06% from the NTD86.33 bln posted a year earlier.
MRC

(plastemart) -- According to BMI, the slow pace of capacity expansion due to the long-term, demographic changes will mean that India will become more reliant on imports for basic chemicals and plastics.

Even when bearing in mind the delays and cancellations, India will have a rapidly expanding petrochemicals industry. The Indian government forecasts domestic polymer demand reaching 11 mln tonnes in 2015, up from 5.8 mln tonnes in 2008. The main concern going forward is India’s ability to meet growing demand.

Over the last quarter BMI has revised the following forecasts/views:

- India is set to add nearly 900,000 tpa of new polypropylene (PP) capacity in 2012, with additional planned new capacity set to come online in 2013.
- By 2016, ethylene capacity will hit 9.41 mln tpa, polyethylene (PE) will reach 5.67 mln tpa and PP will be 5.1 mln tpa.
- Indian consumption of plastics will grow from 8 mln tonnnes in 2009 to 16 mln tons by 2016 and 25 mln tonnes by 2020. Going forward, the country will register a lower rate of growth than the 15-16% seen over the past few years.
MRC