HDPE import to Russia grew by 17% in August

MOSCOW (MRC) – In August, Russian traders increased import volumes of HDPE to 37,800 tonnes, up 17% from July. Over the past eight months HDPE import to Russia rose almost by a quarter, report MRC analysts.

Last month, the total HDPE import by Russian traders expectedly grew by 17% from July and made 37,800 tonnes. The main growth of import volumes accounted for film and pipe HDPE.

Russian PE pipes producers significantly increased the purchasing volumes in the foreign markets on the back of a series of outages at local HDPE plants for maintenance. Also, quite a low price level of HDPE in Europe and Asia in July added to the growth of purchases in the foreign markets. In August, pipe PE import rose to the record levels and made about 14,200 tonnes. Shipments of the Middle-Eastern Sabic’s PE100 grew more than twofold. Korea Petrochemical and SCG Chemicals’ HDPE import also rose considerably.

Film HDPE import made about 8,300 tonnes in August, up 33% from July. In recent months shipments of South Korean PE have increased dramatically. Export shipments of blow moulding HDPE slashed almost by half last month to 2,400 tonnes. The main reason is the restriction of export quotas by Shurtansk GHK and European makers.

In general, in January-August, the total import of HDPE to the Russian market made about 248,000 tonnes, up 24% year-on-year. The largest increase in imports in over the first eight months accounts for the film and blow moulding HDPE. Export of PE to this sectors grew by 124% and 121%, respectively, year-on-year.

MRC

The year-to-date EPS output in Russia exceeded 50,000 tonnes

MOSCOW (MRC) -- Russian makers have increased EPS production since the beginning of the year and reached the production level of 51,400 tonnes of the material, report MRC analysts.
In August, 2012, EPS output in Russia reached its historical maximum exceeding 9,000 tonnes of the material.

In August, SIBUR-Khimprom officially announced a launch of the second EPS production line at Perm with the production capacity of 50,000 tpa. As a result, the total capacity of Perm facility rose to 100,000 tonnes of EPS per year. According to market participants, preparations for the launch of the second line were conducted in phases, starting from Q2 2012. This allowed to increase the capacity of the plant gradually from 4,200 tonnes of EPS monthly in early 2012 to almost 8,400 tonnes in September 2012.

As a result, the year-to-date EPS output at Perm increased to 6,900 tonnes of the material, which is equivalent to 80% of the potential capacity utilization.
Also, the increased production was influenced by Plastik (Uzlovaya), which reached its planned indices of 750 tonnes in September. In July, 2012, the production was reduced to 280 tonnes.

In September, Angarsk Polymers plant shut its EPS production for maintenance. It is expected that the outage will last one or two months.

MRC

Jiutai Energy selects Honeywell UOP breakthrough technology

(uop) -- China’s Jiutai Energy (Zhungeer) Co. Ltd. has licensed Honeywell’s UOP methanol-to-olefins (MTO) technology to convert methanol from coal into key plastics building blocks, announced Honeywell company.

Honeywell’s UOP/Hydro MTO process converts methanol from gasified coal or natural gas to produce high yields of ethylene and propylene, building block materials used in the production of films, packaging, plastics and other petrochemicals. The breakthrough technology allows producers in countries such as China to tap abundant coal resources, rather than more expensive petroleum, to produce petrochemicals.

Jiutai will produce 600,000 tpa of ethylene and propylene at its facility in Ordos City, Inner Mongolia Province, China. In addition to technology licensing, Honeywell’s UOP will provide basic engineering, catalysts, adsorbents, specialty equipment, technical services and training for the project, which is expected to start up in 2014.
MRC

Exxon Mobil to expand its oil production capacities

(plastemart) -- Exxon Mobil Corporation has announced an agreement that will significantly increase its production acreage in the prolific Bakken oil shale region in the U.S., states of North Dakota and Montana.

ExxonMobil and its subsidiary, XTO Energy, signed an exchange agreement with Denbury Onshore, LLC, a subsidiary of Denbury Resources Inc., to acquire 100% of Denbury’s Bakken shale assets, which consist of approximately 196,000 net acres in North Dakota and Montana, with expected production in the second half of 2012 of more than 15,000 oil equivalent barrels per day. As MRC informed earlier, Exxon Mobil along with a couple of other petrochemical giants has recently unveiled their plans of expansion of their petrochemical facilities.

The agreement increases ExxonMobil’s holdings in the Bakken region by about 50% to nearly 600,000 acres, giving the company a significant presence in one of the major U.S. growth areas for onshore oil production.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3 percent of the world's oil and about 2 percent of the world's energy.
MRC

New PTA plant was launched in Hengli industrial park, China

(China daily) -- Hengli Petrochemical Industrial Park, which mainly produces purified terephthalic acid (PTA), began operations on Wednesday in Dalian, Northeast China's Liaoning province.

With a total investment of 26 billion yuan (USD4.12 billion), the project is expected to make an annual revenue of 200 billion yuan by 2015, according to Chen Jianhua, president of Jiangsu-based Hengli Group, one of the world's biggest weaving companies.

Chen said they have made great efforts to make the project environmentally friendly, using the advanced technology of US-based Invista, one of the world's largest integrated producers of polymers and fibers.

Li Wancai, mayor of Dalian, said the new PTA project has great significance for the extension of Dalian's petrochemical production chain and the structural adjustment of the industry.

The petrochemical park covers a planning area of 110 square kilometers. By 2030, it is expected to accommodate 40 million-tonne class oil refining, 7 million-tonne PTA and other petrochemical products, such as ethylene, propylene, PX, rubber, polyester and polyurethane.
MRC