Ukraine fertilizers market projected to double by 2017

(DF) -- Mr. Dmitry Firtash, Head of the Board of Directors Group DF, projected that the volume of domestic mineral fertilizers market will double by 2017.

“We are positive that the Ukrainian fertilizers market will double within 5 years to come. Even the most pessimistic outlooks show an at least a 1.7-times growth. We have a lot confidence in these forecasts which is why we invest in our enterprises,” explained Mr. Firtash.

According to the outlooks published by OSTCHEM (a company operating Group DF’s nitrogen chemical productions), by 2017 the nitrogen fertilizers consumption volumes will rise from the current 950 thousand tons up to 2 million tons, phosphates – from 225 up to 460 thousand tons, potassium fertilizers – from 125 up to 270-280 thousand tons.

Dmitry Firtash further noted that fertilizers consumption in Ukraine is growing at a pace higher than in other countries. “Whereas these days Ukraine’s share in the global fertilizers consumption breakdown is below 1 percent. In 2017 it is estimated to reach 1.5 – 1.7 percent,” says Mr. Firtash.

According to his assessments, soon enough the volumes of fertilizers consumption in Ukraine will reach those recorded in Europe. “Fertilization is a key to efficient agriculture, a key to farmers’ profitability,” stresses Dmitry Firtash. The Head of the Group DF’s Board of Directors is sure that an increase in fertilizers consumption will inevitably bring about a rise in agribusiness efficacy.

Group DF is a private international group of companies whose interests and assets are concentrated in the energy sector, chemical industry, energy production infrastructure, agriculture and real estate.

OSTCHEM is an asset management company consolidating efforts of Group DF’s nitrogen chemical industries: STIROL Concern (Gorlovka), Severodonetsk Azot, Cherkassy Azot, Rivneazot.

As MRC wrote earlier, Mr. Firtash was considered to be the probable future ownner of TNK-BP's Lisichansky refinery.
MRC

(bloomberg) -- Solvay SA (SOLB), the chemicals and plastics maker that bought Rhodia SA last year, reported earnings that beat analyst estimates after adding capacity for specialty polymers and higher guar gum prices compensated for margin erosion in polyamide, vinyls and rare-earth oxides.

Third-quarter earnings before interest, tax, depreciation and amortization, or Ebitda, rose 4 % to 554 million euros (USD721 million), the Brussels-based company said today in a statement. Sales rose 1.1 % to 3.29 billion euros as currency effects offset lower demand.

The sales of specialty polymers increased 18 %, Solvay faced lower demand for rare-earth oxides used in lamps and silica for car tires. Excess capacity in the polyamide and PVC plastic industries eroded margins.

Solvay rose as much as 3.4 % on Euronext Brussels and traded 74 cents higher at 93.10 euros by 9:48 a.m. local time. The shares have advanced 8.5 % since Chief Executive Officer Jean-Pierre Clamadieu set a target for 2016 Ebitda excluding some items of 3 billion euros on April 24, outpacing the Stoxx 600 Chemicals Index’s 7.3 % gain in the period.

Solvay generated 346 million euros of cash not required for reinvestment in the quarter and has reduced net financial debt to 1.53 billion euros from 2.13 billion euros since the acquisition of Rhodia SA 13 months ago.

As MRC wrote earlier, Solvay and Russian petrochemical company Sibur have signed an agreement to establish Ruspav, a 50/50 joint venture for the production of surfactants and oilfield process chemicals in Dzerzhinsk, Russia. Ruspav will be located near SIBUR's petrochemicals operations, 400km east of Moscow, and is expected to be operational in 2015.

MRC

(nasdaq) -- Exxon Mobil Corp. (XOM) reported flaring at its refinery in Joliet, Ill., Friday, according to a filing with the National Response Center.

The 238,600 barrel-a-day refinery released nitrogen dioxide, nitrogen oxide and hydrogen sulfide into the air after an "over pressuring" incident in an undisclosed unit. The release lasted about 30 minutes, and the unit was shut down and the valves were reset, according to the filing.

Also, the public are being warned about possible flaring from Mossmorran throughout this week, as Fife Ethylene Plant starts up again. Flaring, an essential part of the plant's safety systems, was seen on Monday evening and is expected to continue this week.

Following its annual closure for routine maintenance, ExxonMobil Chemical plant's start-up had to be delayed when a leak was discovered. The leakage caused no risk to the workforce, the community or environment, but a large part of the plant had to be shut down to carry out repairs.

As MRC wrote earlier, on 5, Oct, ExxonMobil Corp. confined a fire that broke out at its Baytown, Texas refinery to a process unit. The complex has a 584,000 bbl/day refinery and two chemical plants that make butyl rubber and polypropylene (PP), making it the largest operating refinery in the U.S. and one of the largest in the world.

MRC

(cleveland) -- Dow Chemical, the chemical producer eliminating 2,400 jobs to cope with a slowing economy, reported better-than-expected third-quarter earnings as volumes rose and plastics output benefited from low-cost natural gas.

Net income fell 35% to USD582 million, or 42 cents a share, from USD900 million, or 69 cents, a year earlier, Midland-based Dow said Wednesday. Revenue dropped 9.7% to USD13.6 billion.

Chairman and CEO Andrew Liveris said Tuesday that he's cutting jobs and closing plants at the biggest U.S. chemical maker because global economic growth is slowing. The belt-tightening won't affect planned expansion on the U.S. Gulf Coast, where low-cost natural gas from shale helped boost third-quarter demand for ethylene-derived plastics by 5%, Dow said.

Liveris is eliminating 2,400 jobs -- with half of those in North America -- and closing 20 plants to cope with slow global economic growth. About 3,000 employees will receive severance notices, with the difference because of growth in other strategic programs.

MRC

(Petkim) --Turkish petrochemicals group Petkim has reduced polypropylene and polyvinyl chloride prices by USD20-25/mt this week on the back of weakening demand.

List prices for polypropylene were lowered by USD25/mt to USD1,650-1,660/mt FCA Aliaga, and for PVC by USD20/mt to USD1,140-1,170/mt. Polyethylene prices were unchanged.

Petkim Petrokimya Holding AS is a Turkey-based petrochemical company. The main product groups are Low-density polyethylene (LDPE); High-density polyethylene (HDPE); Polyvinyl chloride (PVC); Polypropylene (PP); Masterbatches; Olefins; Fibers, and Aromatics.

As MRC wrote earlier, Petkim Petrokimya Holding AS, Turkey"s biggest petrochemicals maker, plans to invest as much as USD8 billion by 2016 on projects including a refinery, a new port and power plants.
MRC