Eni inks deal with Homan Petrochemical to develop Korean elastomers plant

(hydrocarbonprocessing) -- Italy’s Eni said Friday it signed an agreement with Honam Petrochemical for the development of an elastomeric plant at a South Korean facility of the Asian company, as the Italian company seeks to turn around its chemicals subsidiary Versalis.

The new site will use Versalis’ technologies and will have a production capacity of about 200,000 tpy of elastomers, or elastic polymers, which will be delivered mainly to Asian markets, Eni said in a statement.

Start-up is planned for the end of 2015, the Rome-based company said.

Versalis will provide engineering services, commercial development skills and technical assistance, while Honam will provide the primary raw materials, operative sites and existing structures.

On April 2012, the Italian national oil company Eni decided to rename its chemical branch Polimeri Europa into Versalis. Beyond the branding operation, Eni intends to go global with its Europe centric chemical business to benefit from the high growth in emerging countries.

In becoming Versalis, Eni’s chemical activities defined a 2012 – 2015 Strategic Plan to reduce their reliance on the European local markets. For its overseas expansion, Versalis will focus on four core businesses where its owns licenses and innovative technologies in the production of polyethylene (PE), styrenics and elastomers.
MRC

(HaloPolymer) -- An overseas office of the HaloPolymer, HaloPolymer Trading, has opened its warehouses in Busan, South Korea. By doing so, the company aims to optimize sales of polytetrafluoroethylene (PTFE) of different brands in the region.

HaloPolymer Trading supplies to South Koreavarious brands of PTFE (4DE, 4A, 4M). Meanwhile, the company’s warehouses provide services to customers not only in South Korea, but also in Taiwan and other countries in South-East Asia. The company’s year-to-date sales in the region have reached about 140 tonnes.

HaloPolymer is the leader of the industry in Russia and one of the world’s largest manufacturers of fluorinated products, primarily fluorinated polymers. HaloPolymer's production capacity of fluorinated polymers in 2011 amounted to 12,700 tonness. The company supplies about 80% of its products to more than 30 countries around the world. As MRC reported earlier, Halopolymer had become the first Russian company to enter the American Society of Plastics Industry, (SPI). This organization is one of the most influential in the United States and represents the interests of market participants of plastics industry.
MRC

MOSCOW (MRC) -- Last week, buying activity in the Asian PE market was sluggish. The absence of demand from China due to the national holidays did not result in price fluctuations, report MRC analysts.

Last week, PE prices in Asia remained intact. Decreasing oil quotations and uncertainty about the global economic outlook have considerably slashed interest in purchasing from traders from South-Eastern Asia. Many importers in this region have suspended all purchases in anticipation of a clearer price trend.

Chinese market did not work last week due to the national holidays which lasted from October 3 to 7. However, many market participants do not expect prices to rise further with the resumption of work of Chinese companies.

Last week, small deals for LDPE in the South-Eastern Asia were concluded in the range of USD1,370-1,420/tonne, CFR. Deals for HDPE were made in the range of USD1,370-1,460/tonne, CFR.
MRC

MOSCOW (MRC) -- On the increased feedstock cost and low profit margin, European makers have been intending to increase their price offers by EUR40-50/tonne in October for the past two months, report MRC analysts.

The contract cost of styrene-monomer - feedstock for polystyrene production - has risen by EUR8/tonne. Most PS makers have announced a potential increase in October price offers on average by EUR40/tonne in order to make up for the growth of production costs and to increase profit margin.

Last Thursday, on 4 October, Styrolution voiced its intention to increase its price offer by EUR50/tonne for October shipments. Next day, Styrolution also reported the increase of EUR50/tonne in its press release. Total is expected to raise its price offer by the same amount; however, the company’s confirmation has not been received yet.

Producers insist that the profit margin has decreased significantly over the past two months despite high prices in the PS market. However, they understand that the current PS quotations in Europe are at a high level and the further increases may affect consumption.

Buyers have expected polystyrene prices to remain unchanged in October after an insignificant increase in the cost of styrene monomer. It is assumed that negotiations on the formation of the contract PS price in October will be difficult.
MRC

(finder) -- Slovnaft Petrochemicals has launched a new generation of transparent, high gloss, reactor made polypropylene random copolymers (PP) for low temperature processing of thin-wall rigid food packaging and storage.

The new generation grades - TATREN RM 85 82 CLEAR and TATREN RM 45 55 CLEAR - are based on the latest available technologies to offer the food packaging and household storage solutions sector a new benchmark in pure, high clarity PP.

Developed by Slovnaft Petrochemicals, s.r.o. in close cooperation with Millad NX 8000 innovator Milliken & Company, the clarifying agent was selected for its top industry performance in terms of excellent optical properties and good stiffness.

Slovnaft Petrochemicals, s.r.o., represents the Petrochemicals Division of Slovnaft Group. It produces polymers of high quality which are base materials with a broad range of uses. The geographical position of company gives it an important advantage when penetrating the quickly growing polymer markets of Central Europe.

According to MRC data, Slovnaft has not been supplying PP-random to Russia since 2008. Several years before the company's shipments to Russia had been negligible. Slovnat had mostly supplied block copolymers and homopolymers of polypropylene to the Russian market. Overall, since 2008, Slovnaft has reduced imports of polypropylene to Russia by 6.5 times.
MRC