U.S. 'disappointed' with proposed EU duties on ethanol

MOSCOW (MRC) -- The United States on Wednesday objected to proposed European Union import duties on U.S. ethanol that EU officials said are intended to offset subsidies given to American producers, Reuters.

"We are disappointed in this outcome," said Nkenge Harmon, a spokeswoman for the U.S. Trade Representative's office. "I will add that we have serious concerns about certain procedural and methodological aspects of the investigation."

The European Commission has proposed a rare duty on all U.S. producers of ethanol after an investigation concluded that U.S. exporters sell the fuel to Europe at illegally low prices after receiving subsidies.

The European Union is seeking anti-dumping duties of 9.5 percent on all ethanol coming from the United States. The document proposed that the regulation should be adopted by the member states no later than Feb. 22.

Shipments of ethanol from the United States to the EU are worth more than USD930 million, or EUR700 million, a year.

EPure, a European ethanol industry group, supports the EU proposal. "We think it's effectively representing the fact that European industry has suffered from these cheap imports," a spokeswoman said.

U.S. ethanol industry groups the Renewable Fuels Association and Growth Energy said in a joint statement that ethanol producers and marketers were "outraged" by the proposal.

"Not only does it fly in the face of over 30 years of consistent practice by the European Commission, but it also violates numerous provisions of the World Trade Organization's agreement on anti dumping," it said.

As MRC wrote earlier, INEOS aims to access ethane feedstocks from the US for use in its European cracker complexes and announced the construction of a new ethane tank in Rafnes.


MRC

Domestic consumption of TiO2 in Ukraine decreased by 25%

MOSCOW (MRC) - In 2012, calculated consumption of titanium dioxide by Ukrainian companies fell by 25% on a decline of production from Sumyhimpromom and Crimean Titan, as well as fall of TiO2 purchases in foreign markets, according MRC DataScope.

In 2012, the market capacity of TiO2 in Ukraine fell to 5,660 tonnes, down 25% y-o-y, and reached 16,400 tonnes. With the reduction in consumption in the domestic market, the imports of the material to the country also declined. In 2012 Ukrainian producers of paints, PVC, paper and other sectors of processing imported about 6,500 tonnes of titanium dioxide, which down 9% (650 tonnes respectively) year on year.

Exports of titanium dioxide fell by more than 3,000 tonnes (down 2%) and totaled 16,400 tonnes. Due to the deterioration of the general situation in foreign markets, Ukraine's exports of titanium dioxide decreased to 135,000 tonnes. However, the structure of sales of did not change significantly. The major buyers of Ukrainian titanium dioxide are still Russia, Germany and Turkey.

Amid falling sales of titanium dioxide, both in external and domestic markets in 2012 Ukrainian plants reduced the production by 5.3% (to 8,167 tonnes), compared to the previous year. In 2012, Crimean Titan, based in Armyansk , produced 106,000 tonnes of titanium dioxide, down 2.2% from 2011. Sumykhimprom's production volumes of TiO2 fell by 12.8% to 39,310 tonnes. So, in 2012 the Ukraine's total production of titanium dioxide totaled 145,640 tonnes, from 153,800 tonnes in 2012.

More detailed information on exports and imports of titanium dioxide in Ukraine you can get in MRC DataScope.


MRC

Honeywell wins contracts for Borouge 3 petrochem complex in Abu Dhabi

MOSCOW (MRC) -- Honeywell has been awarded four contracts worth a combined USD40 million over an 18-month duration for the Abu Dhabi Polymer Company’s Borouge 3 petrochemicals complex in Ruwais, Abu Dhabi, according to Hydrocarbonprocessing.

Honeywell will be the main automation contractor (MAC) for this project, providing Linde and other engineering, procurement and construction (EPCs) contractors involved in the project with integrated control and safety systems.
Honeywell’s technologies have previously been implemented in the Borouge 1 project in 1999 and the Borouge 2 project in 2010, and will continue to help Borouge meet its goal of expanding capacity of the plant, making it the largest integrated polyolefins site in the world.

“The expansion of Borouge is a significant step forward, both for the company and for the industry. We are looking to boost our production of polyoleofins and add approximately 2.5 million tons per year of capacity. It is very important for us to work with the right technology partners, who understand our need for continuously efficient operations," said Abdulla Ateya, a senior vice president for Abu Dhabi's Borouge project.

Borouge 3 is an expansion of Abu Dhabi Polymer Company’s Borouge project. It aims to manufacture ethylene, polyethylene, polypropylene, and low-density polyethylene (LDPE), alongside associated butane, utilities and offsite facilities.

We remind that, as MRC reported earlier, Honeywell's UOP granted the third technology license for its breakthrough methanol-to-olefins (MTO) technology to China's Shandong Yangmei Hengtong Chemicals. Earlier last year China's Jiutai Energy (Zhungeer) also licensed Honeywell's UOP methanol technology to produce 600,000 tpa of ethylene and propylene at its facility in Ordos City, Inner Mongolia Province, China.
MRC

Reliance Industries showed high results in Q4 on strong refining margins and high demand for petrochemicals

MOSCOW (MRC) -- India's Reliance Industries showed a surprise 24% hike in December quarter profits on unexpectedly strong refining margins and solid demand for petrochemicals, reported Plastemart.

In December, RIL broke its September quarter record, when the company’s refining business accounted for 56.8% of total earnings before interest and tax (Ebit), the highest in the previous 10 quarters at the time. For the December quarter, the refining business accounted for 58.1% of total Ebit. The petrochemicals business, too, has done well and perhaps has had a stronger impact on overall profitability.

"RIL's performance has improved in this quarter with margin expansion in petrochemicals and record earnings in the refining business," chairman Mukesh Ambani said in a statement. He pledged to invest over a trillion rupees (USD18.6 billion) to upgrade the company's petrochemical and refining businesses, which he said would "secure a significant change in RIL's earning capacity." As MRC informed ealier, Reliance Industries plans to expand capacity at its refineries in the western state of Gujarat.

Reliance Industries Limited is an Indian conglomerate company headquartered in Mumbai, Maharashtra, India. The company operates through three business segments: petrochemicals, refining, and oil and gas, other segment of the company includes textile, retail business. The company's polymer production in 2010-11 (polypropylene, polyethylene and polyvinyl chloride) made 4,094 kilo tonnes.
MRC

In 2012 imports of PET to Russia dropped to the lowest level over the past 10 years

MOSCOW (MRC) -- In 2012, the total supplies of PET to the domestic market of Russia slashed by 120,000 tonnes year-on-year and fell to the lowest level over the past 10 years, according to MRC ScanPlast.

2012 turned out to be a rather difficult year for importers of PET to the domestic market of Russia. On an increase of the output by Russian plants, overall imports of PET by domestic companies dropped by 44% (120,000 tonnes) and made about 154,000 tonnes in 2012.


One of the reasons for the fall of purchases in foreign markets is carry-over stocks of PET granulate and the finished goods from 2011. As per some market players' estimates, the total carry-over residues of PET at the market participants' warehouses made from 30,000 to 50,000 tonnes, which resulted in decline in purchases in the first half of the previous year. Also, Russian makers of granulate had a negative impact on import sellers. Programs of Russian plants on imports replacing, increase of production volumes by domestic producers and loyal pricing policy resulted in a growth of purchases in the domestic market.

It is worth noting that unlike the trend of the previous years, last year supplies of Chinese PET prevailed over the general volumes of imports of Korean bottle grades of PET granulate. As it was reported earlier, this gap had been achieved due to the price difference of Chinese and Korean PET, which sometimes reached USD50/tonne.

For the said period, the total amount of Korean PET that arrived to the domestic market made about 61,000 tonnes, which is more than twice lower than in 2011. The volume of purchases of Chinese PET fell by 32% to almost 107,000 tonnes.


Among Asian producers, Korean KP Chemical accounted for the largest drop in sales in Russia in absolute terms. Thus, last year the sales volumes of domestic makers in Russia fell by 32,000 tonnes, which is more than twice lower than in 2011. Supplies of the Chinese company Jiangsu Sanfangxiang decreased by 47% (about 25,000 tonnes).

SK Chemicals also reported substantial losses of the market share. Thus, last year the volume of shipments of this producer to Russia fell by more than 70% (about 21,000 tonnes).

MRC