LDPE prices in Russia increased by Rb1,000-1,500/tonne by early April

MOSCOW (MRC) -- Early April was marked by a further rise of low density polyethylene (LDPE) prices in the Russian market, according to ICIS-MRC Price report.

Several Russian LDPE majors - Kazanorgsintez, Tomskneftekhim, Ufaorgsintez and Gazprom neftekhim Salavat - announced a price increase for LDPE by Rb1,000-1,500/tonne.

Consumer activity in the LDPE market is still low due to long winter. However, in the near future LDPE prices will be affected by scheduled outages for maintenance at the plants, road closures and a seasonal growth in demand.

Kazanorgsintez plans to stop its LDPE production from 18 April for a monthly turnaround. Ufaorgsintez is going to shut its production in mid-May for a 10-day maintenance, but the exact dates have not been finally approved yet.

Belarusian producer Polymir stopped one of its two reactors on 30 March for a two-week turnaround. On average, not less than 5,000 tonnes of high-density polyethylene are delivered from Belarus to Russia.

Traditionally, in April, restrictions on the movement of road freight trasport are imposed during the spring floods in many regions of Russia. Since 1 April, the restriction has been introduced in the Republic of Bashkortostan, from mid-April it will come into effect in Tatarstan. The movement restriction on the roads will result in an increase in the cost and delivery dates of the goods.

By early April, LDPE prices went up to the level of Rb58,000-60,000/tonne, CPT Moscow, including VAT, for LDPE 158 and Rb61,000-62,000/tonne, CPT Moscow, including VAT, for LDPE 153. Despite the fact that consumer activity in early April is low in the market, a seasonal increase in demand for polyethylene, as well as a further price surge, is likely to take place in the near future with the upcoming warmth and plants shutdowns.

As it was reported, last year by early April, prices of LDPE 158 in the Russian market had risen to the level of Rb60,000-64,000/tonne, CPT Moscow, including VAT, and by mid-May, the planned outage for maintenance at Kazanorgsintez's LDPE production and a seasonal increase in demand had led to the price level of Rb66,500-68,000/tonne, CPT Moscow, including VAT, for PE 158.
MRC

MOSCOW (MRC) - In February, the imports of caustic soda to Russia increased threefold compared to January and amounted to 5,600 tonnes, according to MRC DataScope.

Russian companies increased their purchases of liquid and solid caustic. Russia's imports of liquid caustic soda in February made 1,400 tonnes. Ukrainian liquid caustic soda made 50% of total imports in February.

Chinese material is still a leader in imports of solid caustic soda to Russia. The share of Chinese material made 95% of total imports in February. The total imports of solid caustic soda in February made 4,200 tonnes.

Thus, the share of imports in the consumption of caustic soda in February was about 7%. In general, the calculated consumption of caustic soda in Russia in February reached 77,000 tonnes.

MRC

MOSCOW (MRC) -- The Saudi Basic Industries Corporation (SABIC) is seeking to expand collaboration with the business sector in Singapore, and to continue to be a reliable source of quality products and services to Asia, said MENAFN.

SABIC's Asia operations, which have been experiencing a strong double-digit growth, are headquartered in Singapore. The two sides exchanged views on how to further these business relations, Singapore being the hub of SABIC's regional operations.

Al-Mady said Singapore's strategic location facilitated easy access to Asian markets. It makes it easier for us to conduct business with our customers in the region, adding value to our regional operations and helping us grow. Moreover, Singapore's skilled workforce and advanced infrastructure strongly supports our long-term goals for growth in Asia, and creates value for our customers.

Besides its headquarters in Singapore, SABIC's Asia operations are spread across 40 offices in the region, with three technology and innovation facilities. Asia is SABIC's fastest growing region globally.

The minister of state was accompanied by Desmond Ng, charge d'affaires ad interim; Francis Chong, director, Ministry of Trade and Industry; Goh Wee Hong, deputy director, Building and Construction Authority; Feroz Siddiqui, director, International Enterprise Singapore Center; Khalil Abu Bakar, director, Economic Development Board Center; Desmond Chua, assistant director, Ministry of Trade and Industry; Guo Weimin, first secretary; and Akshay Kothari, embassy officer.

MRC wrote earlier, SABIC, Saudi petrochemical major, has announced fourth quarter net profits of 5.83 billion riyals (USD1.55 bln), an 11.3% increase compared to 2011.

Sabic is ranked among the world's largest petrochemicals manufacturers. It is the largest public company in Saudi Arabia. The comany manufactures chemicals and intermediates, industrial polymers, fertilizers and metals. It is currently the second largest global ethylene glycol producer. Among its products are propylene, paraxylene, styrene, vinyl chloride monomer.

MRC

MOSCOW (MRC) -- Belgian Solvay SA will increase its investment in Thailand, one of its three main Asian production bases, while pursuing opportunities in Indonesia and Singapore, as per GV with reference to the company's statement.

The Brussels-based chemical company has spent 18 billion baht in the region over the past four years, mainly to build two production lines, making it the largest Belgian investor.

"Thailand is an important base for Solvay in Asia along with China and South Korea," said Jean-Pierre Clamadieu, the French chief executive of the 150-year-old firm. "We have a good base in Thailand and will continue to develop here."

In 2011, Solvay's joint venture with the US-based Dow Chemical Co. started up the world's largest hydrogen peroxide plant in the Map Ta Phut area at a cost of EUR120 million euros (4.51 billion baht at the present exchange rate). Last year, an epichlorohydrin plant began operations under Vinythai (VNT), the Stock Exchange of Thailand (SET)-listed polyvinyl chloride producer and a joint venture between Solvay and PTT Global Chemical Plc (PTTGC).

Meanwhile, Solvay is looking at investment opportunities in Indonesia and Singapore. The company has earmarked EUR900 million for capital expenditure this year, half of it for maintaining and developing existing plants. The other half will be used to build new capacity, the vast majority of which will be for Asian markets. However, the company is considering divesting its assets in the Argentine petrochemical producer Indupa, as part of a major restructuring and portfolio optimisation at Solvay

We remind that, as MRC informed earlier, in October, 2012, SIBUR and Solvay agreed to establish RusPAV joint venture for the production of surface-active agents (surfactants) and products for the oil industry in Dzerzhinsk, Russia. SIBUR Holding already has a joint venture with Solvay/SolVin - RusVinyl situated in Kstovo district, Nizhny Novgorod region, where the complex for the production of polyvinyl chloride (PVC) with a capacity of 330,000 t/y is being built.

Solvay is an international chemicals and plastics company. Solvay, with a market share 27%, is the second largest PVC manufacturer in Europe, after Kerling with 29% of the market.
MRC

MOSCOW (MRC) -- Exxon said the weekend breach caused a few thousand barrels of oil to spill into Mayflower, a town of less than 3,000 about 25 miles northwest of Little Rock. The Environmental Protection Agency called it a "major spill," a category that includes any spill larger than 250 barrels, said Hydrocarbonprocessing.

Crews cleaned up thousands of barrels of crude over the weekend after an ExxonMobil pipeline ruptured and polluted an Arkansas town -- an incident that underscored the fragility of the US pipeline network.

Exxon said Friday's breach caused a few thousand barrels of oil to spill into Mayflower, a town of less than 3,000 about 25 miles northwest of Little Rock. The Environmental Protection Agency called it a "major spill," a category that includes any spill larger than 250 barrels.

More than 20 homes were evacuated. Other neighbors left to avoid the smell or breathing problems exacerbated by fumes, said state Rep. Doug House, a Republican from North Little Rock whose district includes Mayflower. He added that air monitors have found the air is safe in most areas.

Exxon said the pipeline, which is buried two feet underground, has been shut down.

A spokesman for the US Department of Transportation's Pipeline and Hazardous Materials Safety Administration said Sunday that an inspector was investigating the cause of the breach in the pipeline.

Opponents of the proposed Keystone XL pipeline, which would ship Canadian crude to the Gulf Coast, on Sunday drew links between the Arkansas incident and Keystone. Steve Kretzmann, executive director of nonprofit advocacy group Oil Change International, predicted more incidents like the one in Mayflower if Keystone is built.

In a review last month, the US State Department didn't find major environmental risks associated with Keystone. The agency said TransCanada had agreed to conditions to reduce risks of spills or leaks.

As MRC wrote earlier, ExxonMobil Chemical has agreed to license its tubular process technology to Sasol North America for a new low density polyethylene (LDPE) plant in Lake Charles, Louisiana. The new 420,000 tpy plant is expected to be completed in late 2016.
MRC