April SPVC imports to Russia decreased by 8%

MOSCOW (MRC) - Russia's imports of suspension polyvinylchloride (SPVC) in April 2013 decreased by 8% from March to about 53,600 tonnes. The main decrease in the supplies occured on US resin, according to MRC DataScope.

Despite the low seasonal demand for SPVC in the beginning of the year, its imports in March hit a record of 58,000 tonnes. But in April SPVC imports were reduced by 8% compared with the March to 53,600. The imports from China was still at a high level, while the deliveries of US SPVC declined significantly because of the increase in export prices of SPVC in February - March.

Thus, in April 2013, imports of SPVC from US amounted to 19,000 tonnes, down 25% from March. The SPVC deliveries were cut from all North American producers, the only exception made OxyVinyls's resin.

Import of Chinese acetylene PVC in April, on the contrary, increased slightly and reached 28,800 tonnes, while in March it was 28,200 tonnes. The supplies of SPVC from Xinjiang Zhongtai in April rose to 20,600 tonnes (from 11,700 tonnes in March), while imports of resin from Xinjiang Tianye fell from 16,500 tonnes in March to 8,200 tonnes in April.

In April, a small increase in imports of SPVC was seen from European and South Korean producers - to 5,800 tonnes, compared to the March 4,700 tonnes.

In general, over the four months of this year, the total imports of SPVC to Russia made 170,000 tonnes, up 44% year on year.


MRC

MOSCOW (MRC) -- Ufaorgsintez (part of "Bashneft"), one of the largest Russian petrochemical companies, has stopped production of polypropylene (PP) for maintenance, according to MRC analysts.

On Sunday, 12 May, the company shut its PP production for a scheduled turnaround. The outage is going to last two weeks. The annual PP capacity of the plant is 100,000 tonnes.

As reported, at night, on 26 April, Ufaorgsintez stopped the production of high-density polyethylene (LDPE) and polypropylene. Maintenance work lasted for 2 days.

A planned shutdown of the plant's LDPE production is scheduled for September 2013.

Ufaorgsintez (part of "Bashneft") specializes in the production of petrochemical products. The plant produces basic
polymers and synthetic rubber. Thus, the company produces a wide range of products, including phenol, acetone, chemical rubber, low-density polyethylene (LDPE), polypropylene (PP), etc. Besides, the plant manufactures finished goods of its products - plastic bags, boxes made of polyethylene, film, etc. In terms of production volumes, the company is one of the largest producers in the country (40% - phenol, 13% - polyethylene, 20% -polypropylene).
MRC

MOSCOW (MRC) -- In May, European makers reduced their export polyvinyl chloride (PVC) prices for the CIS countries by EUR40-50/tonne following a major drop in the contract ethylene price, according to ICIS-MRC Price report.

The contract ethylene price in Europe for May shipments has been agreed by EUR100/tonne lower than April's level. A significant fall in ethylene prices and decline in export prices in the US made European producers reduce proportionally their export PVC prices in May for the CIS markets.

Deals for May shipments of suspension PVC from Europe to the CIS countries are being agreed in the range of EUR700-760/tonne, FCA, which is on average by EUR40-50/tonne lower from April. Some market participants report that they were able to achieve lower prices than EUR700/tonne, FCA, for May shipments.

European producers are trying to limit their sales at such low prices in May, expecting a price increase in June amid rising oil quotations. Also, some market participants report that they have faced a limited supply of resin with the point K = 70 for export.
MRC

MOSCOW (MRC) -- An Indian ministerial panel has approved 25 oil and gas and 13 power projects involving investments worth billions of dollars as part of its efforts to boost economic growth, according to The Wall Street Journal.

These are among the many projects in India which are facing delays due to bureaucratic red-tape, creating an obstacle to growth in an economy expanding at its weakest pace in a decade. In December, the government set up the Cabinet Committee on Investments to fast-track industrial and infrastructure projects.

Fresh investment of USD1.9 billion will now be made over the next three to five years in these 25 projects, the government said in a statement. Investments of USD2.71 billion have already been made in them, it added.

The panel also reviewed 20 power projects and approved 13 of them involving investments of 330 billion rupees (USD6.1 billion), the government said. These include transmission networks as well as hydroelectric and thermal-power projects which needed clearances mainly from the environment ministry.

The remaining seven power projects involving investments of 320 billion rupees still haven't been cleared. These are facing delays over land acquisition, fuel supply and environmental clearances, the minister said.

We remind that, as MRC reported earlier, Indian Oil Corp (IOC) is planning a Rs 30,000 crore refinery on the west coast in Gujarat or Maharashtra as part of its plans to raise the refining capacity to 100 mln tonnes. Besides, Reliance Industries plans to expand capacity at its refineries in the western state of Gujarat. Also last year, Reliance unveiled an USD18 billion investment plan for India over the next five years.
MRC

MOSCOW (MRC) -- In Egypt, players in the PVC and PE markets report that the local producers are undergoing maintenance although they add that the market does not feel the full effects of these shutdowns, especially in the PVC market, given the persistently slow demand inside the country, said Apic-online.

In the PVC market, the local producer EPC had rolled over their prices at the end of the previous week and reported at the same time that they shut their plant for maintenance. A source from the producer had commented that they elected to roll over their prices due to the thin demand in the country. Regarding the shutdown, the source explained, "We had to shut all our lines due to an unexpected power failure. It was not just our plant which was affected by the power cut but also the other companies located in our area. Now, we are conducting a maintenance following our shutdown which might take from five days to two weeks."The producer also highlighted having sufficient stock levels to meet the market’s needs during this shutdown. According to players’ reports, the producer’s shutdown was still going on during this past week.

A pipe converter commented that EPC’s rollover decision was logical given the weak market activities. According to him, overall supply levels are greater than the general demand.

In the PE market, the local HDPE producer SIDPEC is also conducting maintenance according to market players although the producer has not confirmed this information officially by the time of publishing.

A trader commented, "The market is quiet and SIDPEC’s HDPE film and blow moulding materials are not available. We believe that the local supplies are generally not comfortable in the market and this may put further upward pressure on local prices apart from the ongoing currency issues."

A film products manufacturer noted, "Following SIDPEC’s hike, local HDPE prices moved up, too. Considering the limited locally held cargoes due to the restricted import activities and the limited availability from the local producer, the local market is now under further upward pressure." The converter is optimistic regarding the general demand and said, "We hope to see some revival in our end products before Ramadan and this situation might refresh the market a bit."

As MRC wrote earlier, players voice their complaints about the locally held supplies although overall demand inside the country continues to perform weakly given the ongoing economic woes and political instability. Plus, the increasing dollar parity hampers the purchasing power.

Another converter, who runs their plant at 60-70% capacity, said, "Our end product demand has started to improve slightly but supply levels are limited in the local market given the fact that we do not receive any deliveries from the local producer SIDPEC."

MRC