HDPE import to Russia dropped by 12% in April

MOSCOW (MRC) -- After the March surge, imports of high-density polyethylene (HDPE) to the Russian market began to decline. In April, the total import volumes decreased by 12% from March to 27,000 tonnes, according to MRC DataScope report.


Sufficient supply from Russian producers and low demand for finished products made Russian companies reduce HDPE imports in April.

HDPE for extrusion coating for steel pipes of large diameter and for products produced by blow moulding accounted for the largest decrease in supply. The reduction was 25% and 27%, respectively, which equalls 4,700 and 3,500 tonnes.

Last month, imports of HDPE for the production of pipes made 7,500 tonnes, down 15% from March. The decline in imports was due to low demand for finished products, sufficient supply of Russian polyethylene and large stocks from the previous months.

In April, import of injection moulding HDPE fell by 15% to 4,500 tonnes. Shipments of film HDPE were reduced by only 1% to 5,500 tonnes.

Overall, in January-April 2013, HDPE imports to Russia amounted to 107,000 tonnes, down 2% year-on-year. Over the first four months of the year, the reduction of imports were registered for HDPE for the production of films (45%) and cable insulation (12%). In other sectors of consumption, conversely, imports increased.

MRC

Petrobras confirms plans for multi-tranche bond issue

MOSCOW (MRC) -- Brazilian state-run energy giant Petrobras will wade back into the international debt market in an effort to raise billions of dollars toward an ambitious capital spending program, according to The Wall Street Journal.

In a filing with the U.S. Securities and Exchange Commission, Petrobras said it will offer six separate dollar-denominated bonds, including fixed-rate bonds with maturities in 2016, 2019, 2023 and 2043. Two other tranches will feature floating rate notes due 2016 and 2019.

The company, which is Brazil's largest industrial firm, hired BB Securities, Bank of America Merrill Lynch, Itau BBA, Morgan Stanley, Citi, HSBC, and JP Morgan to coordinate the operation.

Petrobras said it intends to use the proceeds to finance capital expenditures under its 2013-2017 business plan and for general corporate purposes.

Earlier this year, Petrobras Chief Financial Officer Almir Barbassa said that the company expects to raise about USD20 billion in 2013 from debt issues and bank loans to fund the company's ambitious USD237 billion multi-year investment plan. Petrobras will tap global debt markets to finance its latest five-year investment plan that covers the 2013-2017 period.

Petroleo Brasileiro S.A. or Petrobras is a semi-public Brazilian multinational energy corporation headquartered in Rio de Janeiro, Brazil. It is the largest company in the Southern Hemisphere by market capitalization and the largest in Latin America measured by 2011 revenues.
MRC

Jacobs Engineering renews agreement with Borealis for work at Stenungsund, Sweden

MOSCOW (MRC) -- Jacobs Engineering Group Inc. has renewed its frame agreement with Borealis for work at its facilities in Stenungsund, Sweden, reported Plastemart.

Officials did not disclose the contract value, however noted that under the terms of the five year frame agreement, Jacobs is providing engineering, procurement, project management and construction management services on a variety of projects, each of which is expected to have a total installed cost varying in range up to USD11 million.

Jacobs Group Vice President Mark Bello stated, "We are very pleased to renew our frame agreement with Borealis. This is the continuation of a ten-year working relationship between Jacobs and Borealis in Sweden. We appreciate their confidence in our performance, and are committed to continue to support Borealis’ investment needs."

We remind that, as MRC informed earlier, last month Jacobs Engineering Group received a frame agreement from BASF to provide engineering services at BASF’s integrated chemicals complex in Antwerp, Belgium. Officials did not disclose the contract value, but noted that the contract duration is three years.

Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. The only polyethylene (PE) producer in Sweden, Borealis’ Stenungsund facilities include a PE plant, a cracker for ethylene and propylene production, and an innovation center focused on research and development for infrastructure markets.
MRC

MEG and PTA prices rose in Asia

MOSCOW (MRC) -- Spot prices of monoethylene glycol (MEG) and terephthalic acid (PTA) have grown in the Asian region on good buying activity from producers of polyethylene terephthalate (PET), according to ICIS-MRC Price report.

Last week, import PTA prices at the Chinese port increased by USD23-25/tonne. Prices for the main feedstock for the production of PET granulate have reached USD1,050-1,054/tonne, CFR China.

MEG prices also showed an upward trend. Thus, over the past week MEG prices at the Chinese port rose by USD18-20/tonne and amounted to USD997-1,006/tonne, CFR China.

PET producers' good sales and, as a consequence, a stable high demand for raw materials from plants have boosted feedstock prices.

Some market players expect feedstock quotations for Chinese producers of granulate to increase in the near future. According to another source, the price situation for future shipments remains uncertain due to negative macro-statistic data. Thus, the producers' price index (PPI) in China has been falling the second consecutive month. In comparison with the same period last year, PPI index dropped by 2.6%.

However, according to ICIS-MRC Price report, prices of Russian MEG fell last week. The price range of the Russian feedstock was heard at Rb47,5-50,0/tonne, FCA, including VAT.
MRC

EU probes oil majors on price manipulation

VOSCOW (MRC) - European authorities have raided offices of oil majors Shell, BP and Statoil in an investigation of suspected manipulation of oil prices, one of the biggest cross-border actions since the Libor rigging scandal, said Reuters.

Authorities have sharpened scrutiny of financial benchmarks around the world since slapping large fines on some of the world's biggest banks for rigging interest rate benchmarks.

On Tuesday, the European Commission said it was investigating major oil companies over suspected anti-competitive agreements related to submission of prices to leading oil pricing agency Platts, a unit of McGraw Hill Group (MHFI.N).

The Commission also said companies may have prevented others from participating in the price assessment process, with a view to distorting published prices.

Statoil said the suspected violations were related to the Platts price assessment process and may have been ongoing since 2002.

Critics say the system is only a snapshot of the market, because it excludes trade outside the window - one reason that it can be vulnerable to manipulation.

The Commission said that even small distortions of assessed prices may have a huge impact on the prices of crude oil, refined oil products and biofuels purchases and sales, potentially harming final consumers.

It added the fact inspections had been carried out did not mean the companies were guilty of anti-competitive behavior.

The Commission did not make clear whether it was investigating a specific incident. These investigations typically take years to draw final conclusions.

Platts, Royal Dutch Shell (RDSa.L), BP (BP.L) and Statoil (STL.OL) said they were cooperating with the probe.

French major Total (TOTF.PA) said there had been no inspections at its offices. The Commission did not list the companies being investigated, and it was not clear whether other companies were included.
MRC