Russian PE producers increased output up to 150,000 tonnes in January

MOSCOW (MRC) -- Due to a high level of capacity utilization, Russian PE producers managed to increase production of polyethylene to more than 150,000 tonnes in January, according to MRC ScanPlast.


Since November last year, the output of polyethylene has been increasing in Russia. In January, Russian producers showed a high level of capacity utilization, despite a serious decline in demand in all sectors of PE consumption. Makers of high-density polyethylene (HDPE) accounted for the main increase in the output. The total output of HDPE exceeded 92,000 tonnes, while the production of low-density polyethylene (LDPE) made about 58,000 tonnes. Russian makers did not produce LLDPE in January.

Last month Russian HDPE producers managed to keep 100% capacity utilization, despite low domestic demand, and reduced exports. In January, Kazanorgsintez retained December level of HDPE production - about 42,000 tonnes. Stavrolen increased production to 26,400 tonnes, Nizhnekamskneftekhim produced about 19,000 tonnes. Gazprom Neftekhim Salavat reduced the production volume of HDPE to 5,000 tonnes in January.


Producers of low-density polyethylene (LDPE) kept a high level of capacity utilization last month, except for Tomskneftekhim and Angarsk polymer plant. The total output of LDPE at these plants amounted to 20,600 tonnes and 4,500 tonnes, respectively. In January, the largest producer of polyethylene - Kazanorgsintez produced a little more than 21,000 tonnes of LDPE. The total output of low-density polyethylene by Ufaorgsintez and Gazprom Neftekhim Salavat made 8,000 tonnes and 3,500 tonnes, respectively.

MRC

Exports of TiO2 from Ukraine rose by 3% in January

MOSCOW (MRC) -- In January 2013, sales of Ukrainian titanium dioxide (TiO2) to the foreign markets rose by 3.4% to 10,200 tonnes, according to MRC DataScope.


The share of export shipments of "Crimean Titan" titanium dioxide made around 77%. Last month "Crimean Titan" exported 7,874 tonnes of TiO2.

Exports of Sumykhimprom TiO2 made 2,300 tonnes, accounting for 22% of the total sales of titanium dioxide by Ukrainian producers to the foreign markets.

MRC analysts report that the largest sales market of the Crimean TiO2 is Turkey. Most of Sumykhimprom production has been exported to Russia.


In 2012, the total exports of Ukrainian titanium dioxide amounted to 135,700 tonnes. In 2011, Ukrainian producers of titanium dioxide exported 138,900 tonnes of TiO2. Last year the fall in shipments was due to a general decline in global consumption of titanium dioxide in the main processing sectors of the material.

MRC

Russian PVC producers kept a high level of capacity utilization in January

MOSCOW (MRC) -- Despite a serious slump in demand, Russian PVC producers kept a high level of capacity utilization in January. Producers are forming additional stocks in anticipation of a seasonal increase in demand and decrease in imports, according to MRC ScanPlast.

January is the lowest month of the year in terms of demand. However, Russian producers of polyvinyl chloride (PVC) kept high operational rates. Last month the total output of unblended PVC (suspension and emulsion) in Russia made 58,500 tonnes. The high level of capacity utilization has remained since October 2012. In winter months (the period of low demand) high operational rates account for the desire of Russian producers to form additional PVC inventories in anticipation of a seasonal increase in demand, reduction of imports and shutdown of PVC production at Sibur-Neftekhim.


Last month, the output of PVC made 56,600 tonnes. All Russian producers actually retained indices of the resin output at the level of December. Sayanskkhimplast produced more than 26,000 tonnes, Kaustik (Sterlitamak) - about 19,200 tonnes, Kaustik (Volgograd) and Sibur-Neftekhim produced 8,000 tonnes and 3,100 tonnes, respectively. In 2013, the further increase in PVC production is expected at Sayanskkhimplast (it plans to raise production up to 280,000 tonnes this year) and at Kaustik (Sterlitamak) - in 2012 the company increased its output up to 220,000 tpa).

Meantime, Sibur-Neftekhim (Sibur group) plans to completely stop the production of PVC in April 2013. Back in July 2012, the management company SIBUR announced a phased shutdown of chlorine production at a former plant Caprolactam. The annual capacity of PVC production at Sibur-Neftekhim makes 42,000 tonnes. In the first quarter of 2014, the launch of PVC production is expected at PVC complex RusVinyl (the joint venture of Sibur and Belgium's Solvay) with the capacity of 300,000 tpa.

In September 2012, PVC production was shut at Karpatneftehim (Lukoil group) in Ukraine. The nominal capacity of the plant allowed to produce up to 300,000 tpa of suspension PVC. Last year, imports of the Ukrainian resin made 67,600 tonnes. This year PVC producers from the U.S. and China are unlikely to be able to fully compensate for the lack of Ukrainian resins in the Russian market.


Also, this year, Russian companies have had limited export quotas of PVC from the U.S. Limited quotas in January-February were due to scheduled outages for maintenance at Formosa and Georgia Gulf's facilities. But it is possible that the quotas for the Russian market will be also limited after the planned shutdowns. The domestic PVC market in the United States began to recover, and local producers reduced their exports share in the production from 38.4% in 2011 to 37.2% in 2012. In 2012, the total volumes of import of PVC from the U.S. to Russia amounted to 192,000 tonnes, down 20% year-on-year.

Though PVC makers from the north of China increased their production capacity last year, there is still a bottleneck in the supply of acetylene PVC - limited rolling-stock. Many Russian companies report that they have not been shipped the resin as per December contracts yet.

MRC

Kronos Worldwide aimed to increase price of TiO2 in March by USD250/tonne

MOSCOW (MRC) - Company Kronos Worldwide, one of the largest importers of titanium dioxide (TiO2) to the Russian market, announced increase in export prices effective from 1, March 2013, said the maker in the press release.

On 1, March 2013 global producer of TiO2 - company Kronos Worldwide will increase the price of export shipments of at least by USD250/tonne. This price growth will affect mainly such regions as Asia, the Middle East, Africa and Latin America.

Kronos is also one of the largest suppliers of TiO2 to the Russian market. In 2012, Kronos took the fourth place in exports of titanium dioxide to Russia, with 8,760 tonnes.

Russian converters' most popular grade is Kronos 2220, which is used in the production of rigid compounds.

In general, consumption of titanium dioxide in Russia the share Kronos production makes 13,25%.

Kronos Worldwide, Inc (Kronos) is one of the largest producers of titanium dioxide pigment (TiO2). The company produces more than 40 grades of TiO2. The company deliveres TiO2 to more than 100 countries in the world, but most of them are supplied to Europe and North America.

MRC

Clariant officially launches new polymers plant in Spain

MOSCOW (MRC) -- Clariant has officially opened its new AMPS polymers plant for production of specialty polysulfonates at its facility in Tarragona, Spain, according to Hydrocarbonprocessing.

The new plant is the result of a two-year investment totaling around EUR16 million, brought about through Clariant’s recently-completed global optimization project.

Production start-up and customer approvals have been taking place since early last year, leading up to the official opening of the plant on February 22.

Two separate lines will make a range of polymers for the industrial and consumer specialties business unit as well as the oil and mining services unit.

As MRC wrote previously, Clariant planed to increase the production capacity of the dehydrogenation catalysts in the U.S. by expanding its petrochemical complex in Louisville (Kentucky, USA). The company had already made ?? significant investments in the project, which is scheduled to start in September 2013.

Besides, the company has strengthened its position in the Asian market by entering into strategic agreements with DKSH and Wacker. The company also showed good progress in portfolio management and the integration of Sud-Chemie.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints.
MRC