Biaksplen NK produced new adhesive for insulation of oil and gas pipelines

MOSCOW (MRC) -- Russian Sibur subsidiary Biaksplen NK Ltd reported in its press release that the production line of the company produced an experimental industrial adhesive (adhesion-promoting agent) composition based on polyethylene. The composition is used in insulation of oil and gas pipelines. Insulation meets the latest requirements of external coating of pipes, which service life last tens of years.

A new product is designed by corporate R & D center of NIOST Sibur for durable fixation of triple insulation of the surface of steel main gas and oil pipelines.

"This is the first experience with the adhesive composition for us. We discovered new principles, the effect of various parameters on the product, find out a number of modifications - said Irina Ryzhikov, Head of the Laboratory of polymer composites NIOST. - All the results we plan to use in our future work".

"According to its characteristics, the composition, developed jointly by scientists of NIOST and Biaksplen NK specialists is on par with the best foreign analogues, - said the director of the Biaksplen NK division Leonid Gindin - Such materials are introduced in the domestic market only in the form of pilot lots of individual designers. In Russia, all major pipe plants use a three-layer polymer protection, where adhesive base is an important component".

MRC

(dow) -- Dow Argentina, a subsidiary of US chemicals company Dow Chemical, invests USD14m to build a new floor lamp in polyethylene production complex in Bahia Blanca, a security system that will optimize the combustion process gas in its two ethylene plants.

Ground flare will improve safe and controlled combustion process in the complex’s two ethylene plants gas production.

"We invested in this second ground flare to double gas processing capacity during scheduled maintenance, start-ups or operational disruptions in the plant. Combustion will be contained within a cylindrical combustion chamber with no noise or smoke emissions, "commented Hersen Porta, Director of Operations of the Bahia Blanca".

The work has begun and its commissioning is scheduled for the third quarter of 2013. The project prioritizes local and national employment, involving four of Argentina contractors. The works involve them some 200,000 hours of engineering and construction, involving about 15 million pesos in salaries alone.

MRC

(Reuters) - French plastic processing group Plastic Omnium is to cut its German output by halting the production of auto bumpers, which employs 200 staff, the company said on Friday.

Blaming a shrinking car market in Europe and automakers' own strategic decisions, Plastic Omnium said it had begun talks with staff representatives to cut bumpers from its Eisenach-Thuringia factory, which also makes fuel tanks and systems.

Plastic Omnium produces plastic-based car parts. Company expects by 2018, plastic components to account for 30% of total vehicle weight, compared with 17% today, as per company's website.

Majority held by the wealthy Burelle family, Plastic Omnium has been offsetting economic headwinds in Europe by developing production in the Americas, China and India. It has a market capitalisation of 1.1 billion euros (USD1.4 billion).
MRC

(bloomberg) -- PKN Orlen SA (PKN) slid to a week-low after Bank Zachodni WBK SA recommended selling Poland’s biggest oil refiner on expectations of lower refining margins.

The stock declined 0.5 percent to 45.76 zloty, the lowest since Nov. 16, at the close in Warsaw. Trading volume was 45 percent of the daily average over the past three months, according to data compiled by Bloomberg.

Zachodni initiated coverage of Orlen with a share-price estimate of 41.5 zloty, compared with a 40.37 zloty average from 15 analysts surveyed by Bloomberg. "Operating results for the refinery segment are likely to fall in 2013," Tomasz Kasowicz, a Warsaw-based analyst at Zachodni, said in a note today. The petrochemical margins may also come under pressure in the next two years as “new, export- oriented poly-olefin capacities from the U.S. may begin to flood European markets,” he said.

Polish group PKN Orlen PKNA is a majority owner - 63% of czech polyolefins manufacturer Unipetrol.

Unipetrol , a.s. is a group of companies operating in the petrochemical industry in the Czech Republic. In 2005 Unipetrol became a part of the PKN ORLEN Group, the largest oil processor in Central Europe. The Unipetrol Group is oriented mostly towards oil processing, fuel distribution and petrochemical production.
MRC

MOSCOW (MRC) - MRC news digest as of 27.11.12.

1. Ukrainian importers increased PET purchasing volumes by 22%.

In October, Ukrainian companies significantly increased purchasing volumes of PET in the foreign markets on reduction of stock residues last month. About 12,500 tonnes of PET granulate arrived in the Ukrainian domestic market, up 22% from September, according to MRC DataScope. Russian companies explained an increase in purchasing volumes by the necessity to replenish stock residues. The increase in consumer activity of converters in the foreign markets in September resulted in a growth of PET imports almost three-fold in October year-on-year and made 12,500 tonnes last month. Over the past ten month, about 136,600 tonnes of the material arrived in the market. There were also significant changes in the structure of supply. According to the customs statistics, there were no shipments of Korean and Pakistani PET in October. Ukrainian companies preferred Chinese analogues.

2. Asian makers rolled over prices for December for CIS countries.

The producers of polyolefins in Asia keep export prices for markets of the CIS countries in December from November level, according to a Price report ICIS-MRC. The negotiations on export prices of Asian polyolefins for December to CIS markets started this week. Some South Korean makers reported that despite the weakening demand for polyethylene and polypropylene on high prices of oil and naphtha they are forced to keep high prices. Asian makers are planning to keep process for December shipments to CIS countries at the level of November, moreover some makers aim to raise their export offer. HDPE prices for shipments in December this week were discussed at USD1,370-1,420/tonne, FOB. Some makers on limited quotas voiced their prices at USD1,500-1,540/t, FOB.

3. North American PVC had grown in value by USD20-30/tonne by mid-November.

Export prices of North American PVC had rose by USD20-30/tonne by mid-month after drop in early November. Price offers for January shipments are expected to appear next week, according to ICIS-MRC Price report. On the back of a negative outlook regarding PVC sales for December shipments from the USA to the foreign markets (Russia, Turkey and some Asian countries), suppliers of North American resin slashed export prices to stimulate the demand from buyers. PVC price offers for December shipments for the CIS countries were voiced in the range of USD900-920/tonne, CFR St Petersburg and CIF Odessa. However, despite the late delivery dates of PVC (December), a number of enquiries for purchasing was quite large.

4. Korean PET producers reduced price offers by USD10/tonne.

Korean PET makers decreased the price offer for the material for export deliveries by USD10/tonne following a price cut in China and pressure from customers, according to MRC Price report. In mid-November, the range of spot prices of Korean PET was reduced to the level of USD1,390-1,400/tonne, FOB Busan. A more competitive price offer from Chinese suppliers made Korean sellers reduce PET prices. Thus, Chinese material was offered at the price of USD1,350-1,370/tonne, FOB China. Asian producers keep reporting a decline in demand. At present, Russian importers prefer Chinese PET due to more attractive price offers. According to MRC price report, Chinese PET in the Central region of Russia, including logistics, made USD1,440-1,460/tonne, DAP Moscow.

5. HDPE output doubled in Russia in October.

In October, Russian producers increased HDPE production to 70,000 tonnes, which is almost two times higher from September.. Over the past ten months, HDPE production volume in Russia made about 572,200 tonnes, according to MRC ScanPlast. It is worth noting that such a low index of September output was due to a scheduled outage for maintenance at Kazanorgsintez HDPE production line. In early October, Stavrolen had resumed operations at its HDPE production and by the end of the month operational rates had reached 100%. In October, HDPE output made about 22,000 tonnes. In the first decade of October, Kazanorgsintez resumed HDPE production after a scheduled turnaround. The total output for the incomplete working month made about 25,800 tonnes. Last month, Gasprom neftekhim Salavat increased production volume of HDPE by 90%. In October, the level of capacity utilization at Nizhnekamskneftekhim remained at September level. In October, there were no major changes in the structure of high-density polyethylene production according to consumption sectors. The resumption of production at Stavrolen allowed to increase the supply of film and blow moulding HDPE in the Russian market.

6. The output of products from polymers in Russia rose by 20,3% in October.

In October, the production volume of finished goods from polymers in Russia grew by 20,3% year-on-year. The largest increase in the output was recorded in the sector of plastic pipes production, report MRC analysts. Meantime, the production volume of plastic products grew by 3,3% from September. In October, decrease in production was registered only in the sector of plates, films and non-combining sheets production. In other sectors, there was still a positive dynamics of growth in output. In October, the volume of production of plastic pipes, hoses and fittings made about 82,000 tonnes, while in September this index made 78,900 tonnes. In general, over the past ten months, the total production volume of pipes, hoses and fittings from polymers rose by 31% year-on-year and made over 610,400 tonnes. In the sector of PVC windows and sills production there was also an increase in output.

7. In October imports of linear polyethylene to Russia grew by 39%.

In October, Russian companies increased their imports of linear polyethylene to 16,900 tonnes, up 39% from September. The ten months’ imports of LLDPE to Russia amounted to 137,400 tonnes, as per MRC DataScope. In October, Russian companies increased imports of linear polyethylene to 16,900 tonnes (excluding the re-imports of Middle Eastern LLDPE from Belarus to Russia), up 39% from September. The main increase in imports of linear polyethylene last month provided by the producers of the films. Imports of film LLDPE to Russia in October amounted to about 14,500 tonnes, while in September it hardly reached 9,300 tonnes. The low imports in September resulted from the limited quotas for exports from Middle Eastern producers of LLDPE. In October the quotas were increased, and as a result, imports of Middle Eastern polyethylene grew almost twofold.

8. October olefin production in Russia increased by 82%.

In October, the production of ethylene and propylene in Russia grew by 82% compared to September 2012. This significant increase in production resulted from the planned turnarounds of pyrolysis furnaces in September, as well as the resumption of ethylene production by Stavrolen, according to MRC analysts. In October, Russian producers increased capacity utilization of pyrolysis furnaces. Last month’s total production of ethylene and propylene made 205,000 tonnes and 108,000 tonnes, respectively, up 77% and 90% from September. Such a serious increase in the olefins output was due the planned shutdowns of pyrolysis furnaces in September, and the resumption of ethylene production by Stavrolen in October. Kazanorgsintez, Nizhnekamskneftekhim and Angarsk Plant of Polymers stopped their ethylene capacities on turnarounds in September, which affected the volume of ethylene and propylene production.

9. Import of EPS to Ukraine rose by 18%.

In January-October, 2012, 23,600 tonnes of EPS were imported to the Ukrainian market, up 18% year-on-year, according to MRC DataScope. In October, 2012, almost 3,700 tonnes of the material were imported to the Ukrainian EPS market, up 27% from September. Since early 2012 the supply volume has risen to the level of 23,600 tonnes of EPS, up 18% year-on-year. In the structure of supply, 80% of October shipments account for Perm Alphapor. In absolute terms, the supply of Russian EPS reached the volume of 2,960 tonnes, which is a record value and up 40% from September. Alphapor accounts for 54% of all imports since the beginning of the year, while the share of Loyal dropped from 47% in 2011 to 22% in 2012.
MRC