Imports of titanium dioxide to Russia rose by 46% in H1 2013

MOSCOW (MRC) -- Purchases of titanium dioxide (TiO2) by Russian companies in the first six months of 2013 increased by 46% year on year and amounted to 48,900 tonnes, according to MRC DataScope report.

Producers of paints and coatings and producers of rigid compounds have showed a significant increase in consumption. Russian traders and producers of paints imported 34,500 tonnes of special grades of titanium dioxide in January-June 2013, up 55% year on year.

Consumption in the segment of rigid compounds grew by 2.5 times. Russian producers of rigid compounds imported 12,400 tonnes over the first six months of the year, while during the same period last year, imports of TiO2 by producers of rigid compounds equalled about 5 tonnes.

The most tradable grade of titanum dioxide in Russia is DuPont's Ti-pure. In January-June 2013, 8,100 tonnes of this grade entered the market.

High demand in the market was also registered for the Ukrainian brand Sumtitan R-202 and Crimea TiOx-220 produced by Sumykhimprom and Crimean Titan. Import of these grades by Russian companies in the first half of the year totalled 3,100 tonnes and 2,900 tonnes, respectively.

MRC

MOSCOW (MRC) - The demand for expandable polystyrene (EPS) has weakened significantly on the back of an unprecedented rise in price of styrene monomer in Asia, which made Chinese producers to increase EPS prices, according to a ICIS-MRC Price Report.

July and August are traditionally the peak in the consumption of EPS in China, with exports booming and improvement in construction sector, where thermal insulation materials made of EPS are widely used.
In early July, on expectations of growth in demand for polystyrene, prices of styrene monomer (SM) also began to rise in Asia.

The situation was aggravated by the tight supply of SM in the region. As a result, SM price has reached USD1,800/tonne, which forced producers of EPS to increase the prices similarly. Thus, in the beginning of the month the price of Chinese EPS was settled at USD1,950/tonne FOB China.

Producers of EPS traditionally try to maintain the minimum margin of profit around USD150/tonne in relation to styrene monomer. Therefore, when SM prices rose to a high of USD1,830-1,850/tonne, Chinese producers have responded with increasing price of EPS to USD2,010/tonne FOB China, which is an absolute record.

Buyers of Chinese EPS from the CIS countries have suspended the purchases of material, the price of which, they believe, is too high. Russian traders who supply the material through the ports of St Petersburg and Novorossiysk, reduced or stopped buying Chinese EPS in the beginning of the month. Another price increase made the traders who supply through Vostochniy port also reduce their purchases.

Ukrainian market of EPS is going through a difficult time in 2013, accompanied by a decrease in consumption of material. A series of price rises from Chinese producers have resulted in the complete cease of purchases of Asian material.

Belarusian buyers of EPS have switched to European material, with lower logistics costs, as well as the relative stability of prices this year.
MRC

MOSCOW (MRC) -- Qatar Chemical and Petrochemical Marketing and Distribution Company (Muntajat) has taken over the marketing and distribution responsibilities for Qatar’s globally recognised Lotrene brand of low density polyethylene (LDPE) and linear low density polyethylene (LLDPE), as per the company's press release.

Muntajat has the mandate to export Qatar’s 10 million tonnes/year of chemicals and petrochemicals to markets worldwide. In Qatar, LDPE and LLDPE are produced by Qatar Petrochemical Company (Qapco) and Qatofin respectively, and these high-quality products are being sold to more than 4,500 customers worldwide under the brand name Lotrene.

Muntajat has assumed the commercial and export responsibilities for Qapco’s LDPE and Qatofin’s LLDPE products, making it the representative of the Lotrene brand.

This marks the company’s entry to the polymers sector, Muntajat’s third area of operations after the "successful transition" earlier this year of the marketing and distribution activities of the chemicals and fertilisers produced in Qatar.

We remind that, as MRC informed previously, in June 2013, Qatar Petroleum and Qatar Petrochemical Company signed technology licence contracts for the multibillion dollar Al Sejeel petrochemical complex with Univation Technologies for the polyethylene technology and Dow Chemical Company for polypropylene technology. The Al Sejeel project is part of Qatar’s large-scale expansion of the petrochemicals sector to support diversification and growth of the Qatari economy as the country has announced that it will raise its petrochemical output to 23mn tpy by 2020. The petrochemical complex will produce ethylene, high-density polyethylene (HDPE), linear low-density polyethylene (LLDPE), polypropylene, butadiene and py-gasoline.

Qatar Petrochemical Company (QAPCO) is a Qatar-based company established in 1974 and is a joint venture between Industries Qatar (80%) and Total Petrochemicals (20%). The company is currently one of the largest producers of low density polyethylene (LDPE) in the region. In addition to LDPE, QAPCO also produces linear low density polyethylene (LLDPE), ethylene, and sulfur, which it sells to over 4500 industry customers in 145 countries through its extensive global marketing network.
MRC

MOSCOW (MRC) - Russian producers of high-density polyethylene (HDPE) have managed to cut import volumes after a record high external supplies last year. HDPE imports in the first half of the year fell by 12% to just more than 155,000 tonnes, according MRC DataScope.

HDPE imports surge in 2012 resulted from the long time outage of Stavrolen (group Lukoil), the second-largest producer of polyethylene in Russia.
This year, the Russian producers due to careful pricing and expansion of assortment have managed to reduce imports. The main fall in imports accounted for homopolymer PP. Over the first half the year, the imports of HDPE to the domestic market were cut by 48% to 25,800 tonnes.
External supply of film HDPE in June fell to 2,700 tonnes.

Import of pipe HDPE in the first half of the year was about 40,000 tonnes, down by 16% compared to the same period a year ago. External supply of blow moulding HDPE fell by 17% over the same period and totalled about 17,600 tonnes.


At the same time, this year imports of injection moulding HDPE and HDPE for corrosion resistant coating for large diameter steel pipes rose by 19% and 33% and totalled 22,200 tonnes and 39,200 tonnes, respectively.

However, the situation is likely to be changed soon. As MRC wrote before, Nizhnekamskneftehim started production of a new grade HDPE for caps of PET containers (the monthly volume of imports of this PE grade average about 2,000 tonnes). Nizhnekamskneftehim together with other the pipe producers plans to develop the production of polyethylene for anti-corrosion coating of pipes.

MRC

MOSCOW (MRC) -- SABIC, the world’s biggest petrochemicals maker by market value, is studying investment opportunities in the US as the economic slowdown in Europe and China hurt its second-quarter sales, reported SaudiGasette.

SABIC’s plan for US investments comes as the economic slowdown in Europe and China ebbed demand from clients and affected earnings at the company and its affiliates.

"It is very important that SABIC is not left out from investments in the US as it is a huge market in terms of the presence of shale gas and also proximity to other markets," Chief Executive Officer Mohamed Al-Mady said in Riyadh today. "We are studying opportunities in the US to expand SABIC’s presence in the chemical and polymer businesses," he said, declining to give further details until the plans crystallize.

SABIC would be joining companies including Dow Chemical Co. and Exxon Mobil Corp. in seeking to take advantage of the US shale boom that has helped drive down natural-gas prices. Cheap gas is doubly advantageous to chemical makers because it’s used as a raw material and to power factories.

As MRC wrote previously, SABIC plans to cut about 1,050 positions and close some assets in Europe as the company responds to diminished demand. The job cuts will take place across Europe, a third of which will be contracting staff and two- thirds Sabic employees.

SABIC Americas, the company’s unit, provides chemicals and fertilizer products to industries in the US, Canada, Mexico, Central America, South America and the Caribbean, according to the company’s website. It also operates a research and technology center in Houston, Texas.

Saudi Basic Industries Corporation (SABIC) ranks among the world’s top petrochemical companies. The company is among the world’s market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers. SABIC recorded a net profit of SR 24.72 billion (USUSD 6.59 billion) in 2012, down 15,5% year-on-year. Sales revenues for 2012 totalled SR 189 billion (USUSD 50.40 billion). Total assets stood at SR 338 billion (USUSD 90.13 billion) at the end of 2012. SABIC manufactures on a global scale in Saudi Arabia, the Americas, Europe and Asia Pacific.
MRC