Daelim wins USD293 mln Saudi butanol plant project

MOSCOW (MRC) -- Saudi Butanol Company (Sabuco), a joint venture of local petrochemicals firms, has awarded South Korea's Daelim Construction Co. a 1.1 billion riyal (USD293 million) contract to build a butanol plant, reported Reuters with reference to Sabuco shareholders.

The Saudi Butanol Company, which will produce butanol to support the growth of the paints and coatings industry in Saudi Arabia, will be located at Tasnee Petrochemicals Complex

The construction of the plant in Jubail Industrial City will start in January 2014, with completion expected by May 2015. The plant will have a capacity of 330,000 tonnes a year of n-butanol, a type of alcohol used to make other chemicals, and 11,000 tonnes a year of iso-butanol.

As MRC informed previously, the estimated total cost of the project is SR1,939 million (USD517 million). It will open new job opportunities of around 200 direct and indirect positions for Saudi citizens.

Sabuco is a joint venture between Saudi Kayan Petrochemical Co., Sadara Petrochemical Co. and Saudi Acrylic Acid Co. (SAAC).

Saudi Kayan is an affiliate of SABIC (Saudi Basic Industries Corp.). Sadara is a joint venture between state oil company Saudi Aramco and Dow Chemical Co. SAAC is owned by Sahara Petrochemical Co. and National Industrialisation Co. (Tasnee).
MRC

MOSCOW (MRC) -- Russian production of caustic soda in January-May 2013 fell by 0.8% compared to the same period in the previous year and totalled 73,800 tonnes, according to MRC Monthly Report.
The largest customers of Russian caustic are Turkey and Ukraine.

The share of their purchase in Russian exports of caustic this year make 47% and 43%, respectively.

Russian largest exporter of caustic soda is Kaustik (Volgograd). The company exported 30,800 tonnes in January-May 2013.

The total Russian imports of caustic soda in January-May 2013 amounted to 18,700 tonnes, up by 10% year on year.
As reported by MRC earlier, in January-May 2013 the production of caustic soda in Russia fell by 1.2% compared to the same period in the previous year and totalled 448,700 tonnes.

MRC

MOSCOW (MRC) -- Last week spot prices of Ukrainian bottle grade polyethylene terephthalate (PET) for July were cut by UAH300/tonne, according to ICIS-MRC Price Report.

On the back of general price cuts, trading companies reduced the prices of the Lithuanian and Belarusian bottle grade PET for Ukrainian market.

According to a trader, domestic demand continues to be strong, which is typical for this season.

Prices of Belarusian bottle PET of 8200 grade and Lithuanian brand Neopet are heard at UAH16,500-16,700/tonne CPT Kiev, including VAT.

Imports of PET to the Ukrainian domestic market by Lithuanian Neo Group and Indorama Polymers totalled about 13,500 tonnes over the January-May 2013.

Imports of Belarusian PET from Mogilevkhimvolokno over the same period was 1,200 tonnes.

The total Ukrainian imports of PET over the Jan-May 2013 made 87,000 tonnes.
MRC

MOSCOW (MRC) - Prices of polypropylene (PP) in the Russian market increased by Rb500-2,000/tonne on the back of stronger demand and tight supply, according to ICIS-MRC Price Report.

A seasonal increase in PP demand coupled with the tight supply made Russian producers to go for a rise in price, in spite of the expectations of many market participants.

Decreased imports and oncoming shutdown of Tomskneftekhim for maintenance works also contribute to price growing.

A number of Russian producers have already announced price increases for July PP supplies. Polyom announced a Rb500/tonne increase in the July contract price of PP. Ufaorgsintez has announced increase in PP price of Rb1,500/tonne under the pressure of the low stocks, the rising feedstock costs and the reduction in run rates planned in the end of July. Nizhnekamskneftekhim raised the PP price by Rb2,000/tonne.

PP imports May and June significantly decreased, in particular, the supply of raffia from Turkmenistan. Russia's imports of PP in May fell to 13,000 tonnes, from the April's level of 22,500 tonnes. The June PP imports to Russia totalled 13,600 tonnes.

The continued weakening of the rouble against the dollar makes the purchases of PP in foreign markets increasingly unprofitable.

The second largest producer of polypropylene in Russia - Tomskneftekhim (SIBUR Group) plans to go for turnaround from 18th July to 9th August. The sources from the plant say that the current inventories are enough to meet the demand from of key customers. The capacity of Tomskneftekhim's PP production is 140,000 tonnes/year.
MRC

MOSCOW (MRC) -- The European producers have raised July prices for suspension polyvinylchloride (PVC-S) for the the CIS countries, according to ICIS-MRC Price report.

European producers increased July PVC-S prices for the CIS markets by EUR10-20/tonne from June, despite stable contract prices of ethylene in Europe. European makers explain higher export prices in July by limited PVC
inventories.

Meanwhile, some market participants say that they were able to preserve June PVC prices for July shipments. In general, deals for July deliveries of European PVC to the CIS countries are being concluded in the range of EUR755-810/tonne, FCA.
MRC