Innovation is a main driver of the growth of PP market

MOSCOW (MRC) -- Amid strong inter-polymer competition and unfavouralbe global economic situation, innovation will become a driver for polypropylene (PP) sales upturn in Europe till 2016, accoring to 'packaging europe' with reference to a recently published study by Applied Market Information Ltd (AMI Consulting), leading industry consultants.

Europe is the kernel of technical development of PP. European makers had done their best in shifting their PP production towards higher value applications.

The largest amount of growth will account for the production PP packaging, despite low consumers spendign and high competitions in the marekt. PP will lose its market share in favor of high-density polyethylene (HDPE) in a segment roof caps and closures. Recycled PET will also displace the polypropylene from the market, for example, in a segment of the thin-walled packaging. Despite such an outlook and situation in the market, PP is gaining sales due to the introduction of new grades of resin offering high clarity and fast cycling. We remind that Borealis, has just launched the next generation transparent polypropylene (PP) grade Borpact SH950MO for packaging of deep freeze products. It is also an excellent choice for broader consumer packaging and housewares. SABIC has also developed a new brand of high clarity polypropylene SABIC PP Qrystal QR681K, as MRC reported earlier. This random copolymer is an economical, transparent and durable material for the production of bottles, small and medium size.

Automotive sector will largerly benifit from the fastest growth driven by penetration gains. PP producers are offering automotive companies solutions which substantially reduce their costs. The fast intake of long fibre PP should be mentioned in this connection. Thus, as MRC informed earlier, Renault is now launching the New Renault Clio with a thermoplastic lift-gate made with Styron's material solutions, which consits of three parts, namely, Styron's polypropylene compound, long glass fiber polypropylene resin (LGF-PP), PP impact copolymer blended with different components. PP help reduce the cost of cars and also provides excellent opportunities for light-weighting which is a key objective in car design.

The textile segment has suffered since the downturn in construction activity. Residential construction was first hit and is now showing some early signs of recovery, whereas civil construction was hit more recently. Generally PP non-wovens have prospered better than other PP textiles, according to the study.
MRC

Ukrainian PE imports hit a record in October

MOSCOW (MRC) – Ukraine’s imports of polyethylene in October, up 45% from September and reached five years’ record 32,640 tonnes. The main increase in imports fell on the high density polyethylene (HDPE), according to MRC DataScope.

In October, the total amount of external supplies of polyethylene to the Ukrainian market grew by 45% from September and reached 32,640 tonnes. Which was an absolute record over the last five years. Such significant growth in imports mainly took place in the sector of high density polyethylene and resulted from the stoppage of domestic maker - Karpatneftehim (Lukoil Group) and serious disruptions of PE delivery from Asia and the US.
Ukrainian producer Karpatneftekhim stopped its capacity for scheduled maintenance in the beginning of September. By the end of October, all maintenance work had been completed, but the production of polyethylene has not been resumed due to economical inexpedience.

The producer’s annual production capacity makes 100,000 tonnes per year; the monthly supplies in the domestic market exceeds 2,000 tonnes of film HDPE.

Imports of high-density polyethylene to the Ukrainian market in October rose to record levels - more than 17,300 tonnes. HDPE imports increased by more than twofold compared with September. The main increase in imports fell on the film and pipe polyethylene.

Limited export quotas and high prices of HDPE in Europe in August-September, and a suspension of Karpatneftehim made Ukrainian companies contract PE actively in the US and Asia.

LDPE imports to Ukraine in October grew by 11% compared with September and amounted to 7,900 tonnes. Even more significant was the increase in the supply of linear polyethylene - about 3% from 6,000 in September to 6,200 in October.

In general, over the ten months of this year, the total volume of imports of polyethylene in Ukraine amounted to 268,700 tonnes, up 7% compared to the same period a year ago.

MRC

Uniplas to establish Indian petrochemical complex

(chemicals-technology) -- The Indian ministry of chemicals has asked the government of Odisha to consider the possibility of setting up a petrochemical complex at the state's PCPIR (Petroleum, Chemicals and Petrochemicals Investment Region) hub by UAE-based Uniplas Petrochemicals.

"The PCPIR project in Odisha, to be established across 284.15 square kilometres of land, is expected to be on stream by 2030."

The UAE-based company is planning to set up a 150ktpa capacity petrochemical complex, worth nearly Rs 55bn (USD1m), by using foreign direct investment to produce caustic soda, ethylene, chlorine, PVC (polyvinyl chloride) and PVC compounds.

PCPIR director Geeta Menon was quoted by Business Standard as saying that Uniplas Petrochemicals has expressed an interest in investing in the various PCPIRs being set up in different parts of the country.

''In India, Uniplas is exploring the possibility of setting up grassroot complex to produce PVC for sale in the Indian as well as overseas markets,'' Menon added.

''While the company is at present examining the possibility of investing in the Gujarat PCPIR, your state government may also like to consider this offer in view of the fact that such an investment would provide [a] tremendous value addition and pave the way for an integrated value chain to be developed as envisaged in the PCPIR policy."
The complex will also generate direct employment for nearly 250-300 people and indirect employment to more than 10,000 people.
MRC

Argentina PVC maker Solvay Indupa posts wider nine-month loss as sales fall

(platts) -- Solvay Indupa, a leading PVC and sodium hydroxide producer in Argentina and Brazil, saw its loss widen to 144.7 million pesos (USD30.3 million) in the first nine months of 2012 from 10.1 million pesos in the year-earlier period as sales fell and costs rose.

The Buenos Aires-based company, which is controlled by Belgium's Solvay Group, said in a preliminary financial report that sales revenue fell 1.1% to 2.399 billion pesos in the first nine months of 2012 compared with 2.423 billion pesos in the January-September period of 2011.

The company blamed the weaker performance on low PVC prices in Argentina and Brazil and a flood of cheaper PVC from foreign suppliers.

The business also took a hit from a seasonal decline in the supply of natural gas feedstock, in particular during the third quarter. On the brighter side, the company said PVC sales in Argentina rose 16% in the third quarter from a year earlier as buyers bought supplies to replenish sagging inventories.

Yet PVC imports rose 30% over the same period as producers elsewhere turned to Latin America to sell product as demand suffers in other markets. Much of the imported supplies were sold at below-market prices, making it harder for Indupa to compete, it said.

In Brazil, PVC sales rose 11% in the third quarter compared with the year-earlier period on steady orders from public works projects as well as from makers of film, cables and laminates. Liquid sodium hydroxide sales rose 2% over the same period in Brazil, it added.

Indupa produces PVC at a 240,000 mt/year facility in Bahia Blanca and at a 274,000 mt/year plant in Santo Andre, Brazil. It also produces chlorine, ethylene dichloride and vinyl chloride, among other products.
MRC

Kazakhstan creates integrated petrochemical network

(plastemart) -- As part of its plan to implement projects that contribute to the oil chemicals production network, Atyrau Oil Refinery will invest in petrochemicals production in Kazakhstan.

New facilities for production of aromatic hydrocarbons are being constructed at Atyrau Oil Refinery. The construction is scheduled to complete in December 2013.

When this production kicks off, Kazakhstan will create an integrated chain of oil chemicals production facilities producing high value-added goods. According to the company, introduction of the new facilities for production of aromatic hydrocarbons will increase Atyrau Refinery's production capacity to 133,000 tons of benzole and 496,000 tons of paraxylene. The company will reach the rated capacity after 2013. The project is worth USD1.04 bln.

The project will have two stages: the first stage - establishment of production of polypropylene with the capacity of 500 thousand tons a year, the second stage - establishment of production of polyethylene with the capacity of 800 thousand tons a year.
MRC