Impact modifiers share for PVC from China is growing

MOSCOW (Market Report) - From the beginning of the year impact modifiers supply for PVC from China has reached the level of 3 kt that is 135% more than that of the analogue period in 2009 - MRC Monthly Report says.

For 8 months of 2010 impact modifiers imports volume for PVC in Russia made up 13,25 kt. The main supply volumes fall at modifiers produced by Rohm and Haas as well as Weifang Yaxing, whose supply volumes made up 0,54 kt and 0,47 kt respectively or 46% of the total volume.

August was marked by the change of the leader in the structure of impact modifiers supply for PVC to the Russian market. During the last years the biggest import volumes fell at modifiers from Germany (total supply volumes this year has made up 2,82 kt). Though in July a share of impact modifiers for PVC from Chinese producers has started a vigorous growth and in August it reached 30%. In total summarizing the results of 8-month modifiers imports from China made up about 3 kt.

In 2009 the impact modifiers supply for PVC were made mostly from France (26%), Germany (22%) and Belgium (21%). From the beginning of 2010 the market situation has changed and now the market leaders are as follows: China (23%), Germany (21%) and France (17%).

MRC

SINGAPORE (ICIS) -- India's Reliance Industries may cut operating rates at its 1.9m tonne/year polypropylene (PP) facility at Jamnagar, Gujarat state in November as a result of reduced on-site propylene supply, a source close to the company said on Tuesday.

"Propylene feedstock supply will be reduced because of lower throughput at its upstream fluid catalytic cracking (FCC) units," the source said.

The source didn't know how much production would be cut at the PP and FCC units but that the lower operating rates would be maintained for four to five days.

Reliance operates two FCCs at Jamnagar, each with a 200,000 bbl/day capacity.

MRC

LONDON (ICIS) -- Emergency services are racing to complete the building of an emergency dam to contain a possible second spill of red caustic sludge from a damaged reservoir that broke last week flooding several towns in western Hungary, media reports said on Monday.

Authorities have been working to finish a protective wall being built across the fields just below the reservoir, after a widening of the cracks was spotted.

A state of emergency was declared on Tuesday last week in Hungary's three western counties of Veszprem, Gyor-Moson-Sopron and Vas after some 600,000-700,000m3 of sludge escaped from an alumina plant at the Ajkai Timfoldgyar plant in the town of Ajka, affecting an area of 40km2.

mrcplast.com

SINGAPORE (ICIS) -- Suppliers of polystyrene (PS) and acrylonitrile-butadiene-styrene (ABS) in Asia raised their offers by at least $50/tonne (┬36/tonne) this week, in line with the increase in feedstock costs, market sources said on Tuesday.

Prices quotes for general-purpose PS were at above $1,350/tonne CFR (cost and freight) China, while offers for high-impact (HI) PS stood at $1,500/tonne CFR China. For ABS, offers were heard mostly at above $2,000/tonne CFR NE Asia, traders said.

The holidays in China over the past weeks had slowed down production at factories. Ramping up of production at factories was expected from mid-October, with the busy manufacturing activities possibly lasting into November, market sources said.

PS resins are used in packaging, utensils, toys and consumer electronics. ABS is used for office equipment, consumer electronics, toys and automotives.

MRC

(Plastemart) -- Japanese ethylene production has fallen by 12.1% to 557,100 tons in September 2010 vs 633,500 tons September 2009.

This is partly due to the scheduled plant maintenance shutdown at a naphtha cracker. Output in September 2010 was down 7.3% from 600,700 tons in August.

MRC