Russian production of PVC in Q1 2013 decreased by 1%

MOSCOW (MRC) - In the first quarter of 2013, total production of polyvinyl chloride (PVC) in Russia made 165,600 tonnes, down 1% compared to the same period in 2012, according to MRC ScanPlast.

As for the previous month, Russian producers on the back of low seasonal demand and excess imports in March produced 55,430 tonnes. In February this figure due to the calendar factor was 51,600 tonnes.

In March the total production of suspension PVC (SPVC) in Russia amounted to 53,500 tonnes. The largest Russian producer of PVC - SayanskKhimPlast reduced its production in March to 22,600 tonnes (compared to 23,700 tonnes in February).

The second largest producer - Kausitk (Sterlitamak), on the contrary, in March increased its PVC output to 19,300 tonnes (compared to 16,00 tonnes in February). Kausitk (Sterlitamak) traditionally kept a high level of capacity utilization in the period of low demand in order to form additional inventories during the scheduled turnaround in June - July.

Kaustik (Volgograd) in March reduced the capacity utilization rate by 2%, the total output of PVC made about 8,000 tonnes. However, in January - March the total production of PVC by the plant made to 23,300 tonnes, up 5% year on year.

Sibur-Neftekhim increased PVC production in March to 3,600 tonnes. At the end of last week, the company completely stopped all its chlorine production. The company has stopped its chlorine production due to the oncoming launch of 330,000 tonne/year production RusVinyl (JV Sibur and Solvin) in the first quarter of 2014.

The only producer of emulsion PVC in Russia - Khimprom (Volgograd) in March reduced its capacity utilization by 4%, the production of PVC made about 2,000 tonnes. In the first quarter of this year, production of emulsion PVC made around 5,700 tonnes, which is 3% higher than a year ago.

Overall, the first quarter of 2013 total production of polyvinyl chloride in Russia amounted to 165,600 tonnes, down 1% compared to the same period in 2012. The reduction in output to a greater extent resulted from the reduction of SayanskKhimPlast's capacity utilization.


MRC

Zeon delays SSBR plant start-up

MOSCOW (MRC) -- Zeon Corp. said the start-up of its new solution styrene butadiene rubber (SSBR) plant on Singapore's Jurong Island will be delayed until September 2013 due to "unexpected site conditions", said Apic-online.

The plant, having a capacity of between 30,000 t/y and 40,000 t/y of SSBR, is the first phase of a two-phase project that was scheduled to begin production in July of this year. The second phase, for which a schedule has not been given, will double SSBR capacity.

Zeon explained the unexpected conditions were encountered during the construction of a stretch of public service tunnels that support Zeon's pipelines.

As MRC wrote earlier, the plant is expected to have an initial capacity of 35,000 mt/year. The company was tentatively planning to double capacity in 2015-2016 but will watch the market demand for SBR first before deciding on this.

The SBR produced at the plant will be used for tires, with SBR's key feedstocks being butadiene (60%) and styrene monomer (35%).

Zeon has three synthetic rubber plants with a total production capacity of 270,000 mt/year, which can produce SBR, butadiene rubber, as well as isoprene rubber.
MRC

Imports of GPPS and HIPS to Russia exceeded 20,000 tonnes

MOSCOW (MRC) - Russua's imports of general purpose polystyrene (GPPS) and high impact polystyrene (HIPS) in Q1 of 2013 made 20,600 tonnes, according to MRC ScanPlast.

March import of GPPS to the Russian market made 5,100 tonnes, up 38% from February 2013. As for the March imports of HIPS, they increased by a quarter, compared to February and amounted to 2,900 tonnes.

Starting from the beginning of the current year the imports of GPPS made 12,900 tonnes, up 48% from January-March deliveries in 2012.

January-March imports of HIPS amounted to 7,700 tonnes, up 79% from Q1 in 2012.

The largest suppliers of GPPS to Russia are Styrolution and Stirol, their shipments of GPPS in Q1 2013 made 7,800 (61%) tonnes and 1,300 (10%), tonnes respectively.


The main suppliers of high-impact polystyrene to the Russian market are Polimeri Europa - 2,900 tonnes (38%), Styrolution - 1,600 tonnes (21%) and LG Chem - 1,04 tonnes (13%).


MRC

MRC new digest as of 15 April, 2013

MOSCOW (MRC) -- MRC news digest as of 15 April, 2013.

1. The cost of polystyrene in Russia remains unchanged.

Russian producers and traders have left polystyrene prices for April at the March level. This week market participants were focused on the price formation of Russian PS for April. As per MRC analysts, the price of Russian polystyrene for the first half of April was left at the rollover from March. Nizhnekamskneftekhim's price remains at Rb75,000-79,000/tonne for general purpose polystyrene (GPPS) and Rb77,000-82,000/tonne, CPT Moscow, for high impact polystyrene (HIPS). Gazprom neftekhim Salavat's price of polystyrene also unchanged in April. Traders keep prices at Rb68,500-72,000/tonne for GPPS and Rb75,000-78,000/tonne for a natural HIPS. At the same time, according to a trader, the price for natural HIPS can be reduced in the second half of April.

2. Imports of suspension PVC to Russia rose to a record 58,000 tonnes in March.

In spite of low demand for suspension PVC (SPVC) over the last three months, imports of the material to the Russian market broke a ten-year record in March and reached 58,000 tonnes. The last record shipment of about 57,000 tonnes of SPVC was registered in May 2011. American and Chinese producers accounted for the largest increase in foreign supplies of the resin. Though North American makers are raising their SPVC prices and limiting their exports, it did not affect SPVC imports to Russia. Last month, the total supply volume of North American SPVC to Russia amounted to more than 25,000 tonnes, up 52% from February. Similar import volumes of about 25,000 tonnes from the United States were registered in October 2012. Import of the Chinese acetylene PVC rose to 28,700 tonnes, which is an absolute record in the history of PVC imports from China. Besides, last month suspension PVC supplies from Europe and South Korea also grew, but the share of supply of these producers in the total imports amounted to only about 10%. Overall, over the first three months of the year, the total import volume of SPVC to Russia made 118,600 tonnes, up 42% year-on-year.

3. Imports of polypropylene to Russia fell by 9% in March.

In March, imports of polypropylene to Russia dropped by 9% from February. Last month imports of polypropylene (PP) amounted to 22,300 tonnes. PP from Turkmenistan accounted for the decline in imports, while imports from other regions increased. Despite low seasonal demand, high capacity utilization of the existing plants and the start-up of a new unit in Omsk (Polyom), imports of polypropylene to Russia are still at a high level. In February-March, 2012, PP imports to Russia totalled 16,000 and 16,800 tonnes, respectively. Last month, imports of propylene homopolymer (homopolymer PP) decreased to 11,200 tonnes, while in February, they made 13,300 tonnes. The decline in imports of homopolymer PP was due to the reduction of PP supplies from Turkmenistan, whereas the supply volumes from other regions virtually remained at the level of February. In March, imports of impact copolymers of propylene (PP-impact) rose by 5% from February to 4,900 tonnes. Injection moulding grades of PP-impact accounted for the main growth in imports. Imports of random copolymer of propylene (PP-random) rose to 3,100 tonnes last month. Overall, in the first quarter of the year, the total import volume of polypropylene to Russia made 60,400 tonnes, up 16% year-on-year.

4. Imports of PET to Russia slashed by 8% in March.

In March, imports of PET to Russia decreased by 8% from February. In absolute terms, supplies of imported PET to Russia fell by 1,300 tonnes last month to 14,700 tonnes. However, if compared to March 2012, they increased by 1,000 tonnes. Import purchases of PET in Asia decreased due to an on-going decline in prices and, as a result, market participants' expectations of lower quotations. In the supply structure, the share of recycled PET flex made about 900 tonnes, whereas imports of PET granulate amounted to 13,800 tonnes in March. Overall, in January-March, imports of PET to the Russian domestic market made about 40,000 tonnes. If compared to the same period last year, imports of PET dropped by 4%. Total shipments of imported PET to Russia amounted to 41,600 tonnes over the same period last year.

5. March imports of PE to Russia grew by 17%.

Russia's total imports of polyethylene (PE) in March grew by 17% from February and reached about 66,000 tonnes. Although the season has not started yet, Russian converters have been increasing purchases of polyethylene (PE) abroad since the early year. Thus, the total imports of PE in Q1 2013 made 175,000 tonnes, up 16% year on year. The main increase was seen in the import of high density polyethylene (HDPE) and linear polyethylene (LLDPE). In March, imports of HDPE increased by 21% compared to February and amounted to about 30,500 tonnes. Purchases of PE increased in all sectors of consumption, the only exception made sector of the cable insulation. The largest increase in HDPE imports showed blow moulding polyethylene - 81%. The imports of pipe of polyethylene increased by 26% and was close to 9,000 tonnes. The three months' imports of HDPE made about 80,000 tonnes, which is equal to the same period a year ago. March imports of LLDPE rose to 19,700 tonnes, up 19% from February figure. In January - March 2013, the external supplies of LLDPE increased to 50,500 tonnes, which is 44% higher than a year ago. Imports of low-density polyethylene (LDPE) in March amounted to about 10,500 tonnes, including supplies through Belarus, which is not much more than the February figure - 10,000 tonnes. In January - March this year, the external supply of LDPE to Russia reached 30,000 tonnes, up 7% compared to the same period a year ago. Imports of copolymers of ethylene and other compositions of polyethylene in March of this year made 5,300 tonnes.

6. Russian DOP prices continue to grow.

Prices of dioctyl phthalate plasticizer (DOP) in Russia continue to grow on the back of the seasonal demand and oncoming stop on the turnaround of Gazprom neftekhim Salavat. Iin early April pPrice of Russian plasticizer DOP on growing feedstock costs, particularly diethylenglycol (DEG), was increased on average by Rb3,000/tonne the Rb70,000-72,000/tonne, including VAT, delivery. By mid-April due to the limited supply of DOP to the market its price rose to Rb70,000-74,500/tonne, including VAT, delivery. In addition, Gazprom neftekhim Salavat, Russia's largest producer of plasticizer DOP, is going to stop its capacities on a month-long turnaround from 20, April. Some market participants expect the prices of plasticizer DOP to grow further until May on rising feedstock costs.
MRC

Total reports upsets at multiple units and fire at Port Arthur refinery

MOSCOW (MRC) -- Total Petro Chemicals and Refining USA on Sunday said an early-day regional power failure caused upsets at multiple units at its Port Arthur Refinery, including a fire at one of the Vacuum Distillation Units, reported The Wall Street Journal.

The fire was extinguished, company spokeswoman Jennifer Walsh said.

"The refinery is conducting air quality monitoring and there has not been offsite impact detected. We will continue to monitor the situation and will provide more information as it becomes available," Ms. Walsh said.

Ms. Walsh didn't say what other units at the refinery had been impacted by the power outage, but a filing to Texas state environmental regulators earlier on Sunday said the 9:30 a.m. CDT event resulted in emissions at Area 1, Area 5, the East Flare, the North Flare, Sulfur Recovery Units 1 and 3, a Tail Gas Thermal Oxidizer, the South Flare and Unit 833.

The filing said the refinery instituted emergency shutdown procedures to the affected units but didn't name the units.

Total's Port Arthur refinery is able to process up to 174,000 barrels of crude oil a day.

As MRC wrote previously, in early 2013, Total Petrochemicals and Refining USA reported a malfunction in the sulfur recovery unit of its Port Arthur, Texas, refinery.

Total, one of the world's leading petrochemicals companies with business in Europe, the United States, the Middle East and Asia. Total has two main product groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
MRC