Japan Butyl Co Ltd expands butyl rubber production in Kawasaki

(ICIS) -- Japan Butyl Co Ltd has completed the expansion of its butyl rubber production capacity in Kawasaki by 22.5% to 98,000 tonnes/year, according to its parent company ExxonMobil Yugen Kaisha (EMYK) on Friday.

EMYK added that the butyl rubber plant would showcase advances in ExxonMobil's proprietary process technology that should translate to energy and investment savings.

⌠Our goal is to continue being a reliable supplier of quality butyl polymers. This is particularly important for the Asia Pacific market, which is growing at a rapid rate, said John Lyon, vice president for global butyl polymers business unit at ExxonMobil Chemical.

MRC

(Plastemart) -- Naphtha premiums in the Middle East have risen this week after cargoes were diverted to Europe. Currently, Europe is faced a widespread refinery and port strike in France that has exhausted supplies in the region. Nationwide strikes over pension reforms have spread to France's 12 oil refineries, adding to the impact of a multi-week strike at the country's largest oil port, Fos-Lavera.

Saudi Aramco sold 50,000 tons of A180 naphtha for early-November loading from Ras Tanura at US$16-17/ton above Middle East quotes, free-on-board (FOB) basis, pointing to a strong recovery on the export market to high premiums.

Two Saudi cargoes were shipped to Europe last week by Vitol.

MRC

(Plastemart) -- Pakistan's Engro Polymer and Chemicals Limited (EPCL) is seeking permission to import ethylene at zero rate for production of Vinyl Chloride Monomer (VCM), Ethylene Dichloride (EDC). EPCL has recently undergone expansion/back integration at an investment outlay of US$260 mln, as per Business Recorder.

EPCL manufactures Polyvinyl Chloride (PVC), VCM, EDC, Caustic Soda and Sodium Hypochlorite. The company's major stakeholders are Engro Corporation Ltd, Mitsubishi Corp. and International Finance Corporation.

MRC

(Platts) -- Iran's Mehr Petrochemical may start producing grades other than film-grade high density polyethylene at its plant due to a shortage of butane-1 feedstock, a source close to the company said Wednesday.

Mehr Petrochemical has a 300,000 mt/year HDPE plant at Assaluyeh. There are three major grades in HDPE -- HDPE film, HDPE injection and HDPE blow molding. The source explained Mehr was considering switching to HDPE injection or blow molding production as they consume less butane-1.

Mehr Petrochemical is a joint venture by National Petrochemical Co. (39%), Singapore Petrochemical Investment Ettehad Co. (58%) and other companies (3%).

MRC

(Platts) -- US propylene contracts were expected to fall in November, tracing lower spot values, sources told Platts this week. Participants anticipated that November contract prices could fall by as much as 3-4 cents/lb, given the delta between spot and contract.

October spot PGP was last heard offered this week at 55.25 cents/lb MtB pipe. Buyers were absent though. Sources pegged spot at 55 cents/lb or lower. With October contracts settling 1.5 cents lower at 58.50 cents/lb, the gulf between the CP and spot was 3.50 cents/lb.

Lower spot was attributed to pending supply improvements as supplier Petrologistics was expected to start up its new 500 kt/year propane dehydrogentation unit at Houston, Texas. The start up has been delayed several times, and the company was heard to be aiming for a start up by the end of this week. The plants output is expected to be 70% CGP and 30% PGP, a company source said.

MRC