Imports of PET to Ukraine rose by 78% in February

MOSCOW (MRC) -- The February volumes of PET import to Ukraine increased by 78% from January, which equals to more than 7,300 tonnes of bottle PET granulate, according to MRC DataScope.

Totally, last month, Ukrainian companies shipped about 15,900 tonnes of granulate. The growth of imports was anticipated and justified by both a seasonal factor and attractive PET prices in the foreign markets in December, 2012. On the beginning of an upward price trend, Ukrainian companies increased purchasing volumes to generate stocks in preparation for the season.

For the second consecutive month there have been no shipments of Korean PET granulate. In February, the lion's share of imports accounted for the Chinese granulate brands, to the detriment of Korean PET. Totally, about 12,000 tonnes of Chinese PET of China Resources Chemicals, Dragon Special Resin, SK Chemicals, Jiangsu Sanfangxiang, etc. origin arrived in the Ukrainian market last month.

Among the new trends, a sharp increase in Lithuanian imports of PET in 2013 should be noted. In February, imports of Lithuanian PET rose by 700 tonnes and made about 3,500 tonnes. For the first time in 2013, the world's largest producer of PET - Indorama Polymers - entered the Ukrainian market. In February, Indorama Polymers' import share of PET from the Lithuanian plant made about 700 tonnes.

MRC

MOSCOW (MRC) -- Williams, the world’s only processor of oil sands upgrader offgas, has approved the construction of a propane dehydrogenation (PDH) facility in Alberta, Canada, the first and only one in Canada, which will allow Williams to significantly increase production of polymer-grade propylene (PGP) from its Canadian operations, reported Hydrocarbonprocessing.

Williams is the only company in Canada currently producing polymer-grade propylene.

The PDH facility will have the capability to initially produce up to 1.1 billion pounds (500 kilotonnes) per year of polymer-grade propylene, with the opportunity to double capacity with a future expansion.

The company estimates capital expenditures of up to USD900 million to be funded with expected cash flow from its Canadian operation and international cash on hand. Pending appropriate permitting approvals, the PDH facility is scheduled to go into service in the second quarter of 2016.

Williams has selected Honeywell’s UOP as the vendor to provide the UOP Oleflex process technology for the dehydrogenation process. The technology uses a platinum-based catalyst system, as well as less energy and water than competing PDH technologies.

As MRC informed earlier, in late 2012, Williams Partners signed an agreement with Williams to purchase the company's 83% undivided interest in the Geismar olefins production facility, a refinery-grade propylene splitter, for USD2.264bn.
MRC

MOSCOW (ICIS-MRC) -- Rising prices in foreign markets and decline in imports put pressure on the prices of low-density polyethylene (LDPE) in the Ukrainian market. By mid-March, LDPE prices had increased by UAH500/tonne, according to ICIS-MRC Price Report.

Seasonaly weak demand for low-density polyethylene (LDPE) and excess supply have been keeping the prices from rising in the Ukrainian market for quite long time, despite the increase in prices in foreign markets. But by mid-March LDPE prices in Ukraine began growing under the pressure of another price increases in the foreign markets and the seasonal increase in demand for film goods.

During January-February 2013 prices of LDPE in the Ukrainian market were at UAH14,600-15,000/tonne, CPT Kiev, including VAT, for the 158 LDPE. At the same time LDPE prices from major external suppliers (Russia, Belarus and Azerbaijan) by early March had increased by USD100-130/tonne.

The demand for LDPE by mid-March had not significantly increased in the Ukrainian market as weather still limits the demand for finished products from the end-users. However, the decline in imports and higher prices in foreign markets began to put pressure on the market.

Leading Russian producer - Kazanorgsintez stopped its deliveries of LDPE to Ukraine from March. Considering that January supplies of Russian PE to the Ukrainian market made about 6,800 tonnes, then two-weeks imports from Russia in March fell to 1,500 tonnes. Azerbaijani producer Ethylene-Polyethylene (Socar) stopped its sales of LDPE from 19, March to 27, March due to the holiday Nowruz. Supplies of LDPE from Belarus were also significantly reduced.

All of these factors had led to an increase in LDPE prices in the Ukrainian market by mid-March. Offers for the Russian 158-th PE rose to UAH15,100-15,500/toone, CPT Kiev, including VAT. Azerbaijani LDPE is offered at UAH14,700-14,800/tonne, FCA, including VAT, the offers for Belarusian PE are almost absent.


MRC

MOSCOW (MRC) -- Linpac Packaging has unveiled its first product under the Freshware range to stand vertically for maximum shelf appeal and shelf space efficiency, reported Foodproduction.

The VertiFresh standing salad bowl for the chilled retail convenience sector is manufactured from super-cleaned rPET.

The firm has also developed vacuum skin packs (VSPs) to combine the extended shelf life benefits of vacuum skin technologies with rigid tray sealed pre-formed rPET and polypropylene (PP) trays.

Linpac launched the Freshware range at the start of the year to take advantage of demand for chilled retail and prepared convenience foods. It offer packaging for prepared fruit and salads, dips, sandwich fillers, fresh pasta, pizza, prepared vegetables, chilled bakery, cooked meats and prepared fish.

As MRC informed earlier, Linpac Packaging plans to open a production site in Belarus by the end of the year. The Belarus facility will initially be 100% focussed on expandable polystyrene (EPS) because Russia mainly is an EPS market, said Linpac, who first considered building a factory in Belarus in 2009.

LINPAC Group Limited was founded in 1959 in Lincolnshire, England. It is now an international, GBP1.1 billion, mainly plastic packaging and supply chain manufacturing and services business, based in Birmingham, United Kingdom, and has 7,000 employees in 29 countries. The company manufactures food packaging, returnable transit packaging (RTP), rigid plastic containers, cartridges, bulk storage tanks, bulk containers, medical containers, spill control products, and GRP gratings and structures.
MRC

MOSCOW (MRC) -- Axiall and OxyVinyls announced 3-cent/lb (USD66/ton) increases for PVC prices effective as of April 1, said Plastemart.

One of the producers cited healthy demand and reduced domestic availability for the price hike target. Nevertheless, PVC prices out of the US see limited interest in many export destinations. According to traders, American producers are not rushing to cut their offers for new shipments as they see satisfactory buying appetite in their domestic markets amidst tight supplies. All the same, PVC cargoes on the way from the US are still showing up at lower levels sporadically in Turkey, for which the US is the largest PVC supplier. "The persistent lack of demand in export markets will shake the confidence of US producers at some point," commented a market player.

As MRC wrote earlier, European producers aimed to increase prices of PVC for the CIS counries by EUR30-40/tonne, following the rise of European contract price of ethylene for March by EUR50/tonne from February, according to ICIS-MRC Price Report.

The rising costs of ethylene resulted from the growing oil quotations in the second half of February. European producers announced such a serious increase in export prices of PVC for the CIS markets on the back of high cost of the main feedstock (ethylene) and low margins.
MRC