July PP imports to Russia remained at the level of June

MOSCOW (MRC) -- The launch of two new polypropylene (PP) plants in Omsk (Polyom, Titan Group) and Tobolsk (Tobolsk-Polymer, SIBUR group) reduced imports of material to the required minimum, according to MRC DataScope.

PP imports to Russia in July remained at the June's level and totalled 15,200 tonnes.

The startup of the two new PP facilities in Omsk and Tobolsk, which allowed to double the output of the polymer, led to major cuts in imports. The Russian market has become a net exporter (the difference between exports and imports) in the propylene homopolymer (homopolymer PP), but the market of propylene copolymers are still dependent on imports.

Imports of homopolymer PP to Russia in July amounted to 3,900 tonnes, whereas in June, it was 3,500 tonnes. Over the past three months, the proportion of propylene homopolymer in total imports dropped to 25%, whereas in the previous year they exceeded 50%. Export sales of Russian homopolymer PP in July reached 11,000 tonnes.

Imports of block copolymers of propylene (PP-block) in July were 5,300 tonnes (in June - 6,000 tonnes). High prices of PP-block in foreign markets resulted in reductions in imports of extrusion grades of the copolymer, while imports of injection moulding polymer virtually remained at June's level.

Imports of statistical copolymer of propylene (PP-random) last month remained around 3,000 tonnes, as in June. Russian companies have increased their supply of pipe copolymer of propylene by 71% from June up to 1,900 tonnes. Producers of BOPP films, on the contrary, reduced in July their purchases of PP-random by more than half.

Imports of other copolymers of propylene in July amounted to about 3,100 tonnes, up 11% from June.

Overall, in the first seven months of this year, PP imports to Russia totalled 126,000 tonnes, down 22% year on year.

MRC

MOSCOW (MRC) -- Petronas (Petroliam Nasional Bhd) has further delayed a final investment decision and the start of production on its USD19-billion Refinery and Petrochemicals Integrated Development (Rapid) project in Johor, Malaysia, reported GV.

The investment decision, which had been expected in June 2013, has been extended to March 2014 by external factors beyond the company’s control, a statement released by Petronas said.

As a result of the revised date for a final investment decision, the Rapid refinery is now scheduled to start operations in the fourth quarter of 2017 and the remaining plants in the complex are scheduled to be commissioned in 2018. Petronas had earlier pushed back the entire project’s start up to early 2017 from late 2016.

The planned complex includes a 300,000-b/d refinery, which will supply naphtha and liquefied petroleum gas feedstock for the production of about 3-million t/y of ethylene, propylene, C4 and C5 olefins and several downstream units.

As MRC informed previously, Petronas' net profit in the first quarter ended March 31, 2013 slipped 2.73% to RM20.37 billion from RM20.94 billion a year ago due to lower crude oil prices and higher costs, partially offset by increased production.

Petronas, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company wholly owned by the Government of Malaysia. The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment.
MRC

MOSCOW (MRC) -- Radius Systems, the UK's leading supplier of PE pipes and fittings to the Gas and Water utilities sector, have extended their Puriton product range with the addition of pipe sizes 110 and 160mm, to offer their customers a complete pipe and fittings solution, from diameter 25 to 180mm, for laying potable water pipes in contaminated land, as per the company's press release.

The two new mains pipe sizes and their associated fittings have been developed to meet customer demands and are now available to purchase from Radius.

In addition to this range extension, Radius Systems have also changed the natural PE100 material used for the core of its mains pipe in diameters 90 to 180mm to black PE100 material. The change has been brought through their program of continuous product improvement in developing innovative solutions for their customers.

The new PE100 black material retains the same performance properties and strength as the previous natural material and the system's approvals and jointing procedures remain unchanged.

As MRC informed previously, Radius Systems has recently announced the acquisition of 100% of the issued share capital of Aeon Group Holdings Ltd. After the acquisition of the Subterra brand in June, AEON is the company's second acquisition following the purchase of Radius Systems by POLYPLASTIC Group in February this year.

Radius Systems is the leading UK producer of PE pipe and fittings solutions to all major utilities companies in the gas, water and telecoms sectors. Radius generated net sales of over EUR100 million in 2012 and employs 370 people at its facilities in Hilcote (Derbyshire), Banbridge and Lurgan (both in Northern Ireland).
MRC

MOSCOW (MRC) -- South Korea's HC Petrochem has further cut runs at its No 2 aromatics plant at Daesan to 80%, due to weak production margins for paraxylene, reported Plastemart.

The company first cut the run rate at the No. 1 unit to 90% from 100% on August 1 due to weak margins, further reducing it to 80% on August 9. The lower rate could be in place until the margin improves.

The No. 2 aromatics plant is able to produce 800,000 tpa of PX and 120,000 tpa of benzene.

As MRC reported previously, South Korea's paraxylene exports for January-March totaled 806,657 mt, surging 60.5% from a year earlier and up 41.4% from the previous quarter. The sharp increase was due to the startup of a new PX plant there. South Korea's HC Petrochem, a 50:50 joint venture between Hyundai Oilbank and Japan's Cosmo Oil, started commercial operations at its new 800,000 tpa PX plant in Daesan on January 8. Most of the new output from the plant is shipped to China.

HC Petrochem manufactures and markets paraxylene. The company was founded in 2009 and is based in Seosan Si, South Korea. HC Petrochem is a joint venture between Cosmo Oil and Hyundai Oilbank.
MRC

MOSCOW (MRC) -- Westlake Chemical Corporation has stated that it received a copy of a complaint filed by Eastman Chemical Company with the Texas Railroad Commission regarding Westlake's pipeline that transports ethylene between Mont Belvieu, Texas, and Longview, Texas, where both Westlake and Eastman have operating facilities, reported the company on its site.

In its complaint and related public statements to the media and investors, Eastman contends that recent changes made by Westlake to the pipeline tariff and the terms and conditions of the pipeline usage, cost and service, were made to delay the divesture of some of Eastman's ethylene cracking units and would also impact its production capacity in Longview, Texas.

Westlake does not agree with Eastman's position as outlined in its complaint. The changes made to the pipeline tariff were made in accordance with standard practices and reflect market conditions and were in no way intended to impact Eastman's operation of its facilities in Longview nor were these changes made to delay Eastman's divesture efforts.а Westlake is committed to continued long-term safe operation, support for the employees and investment at the Longview site.

We remind that, as MRC wrote previously, last year Westlake announced an expansion of the existing PVC plant in Calvert City, Kentucky, and the plans to convert the feedstock for its Calvert City ethylene plant from propane to ethane along with increasing ethylene capacity from 450 million pounds per year to 630 million pounds per year. This expansion and feedstock conversion will add approximately 200 million pounds per year of PVC capacity to the existing 1,100 million pounds of annual capacity, enhance Westlake's vinyl chain integration and leverage low cost ethane being developed in the Marcellus shale area.

Westlake Chemical Corporation is a manufacturer and supplier of petrochemicals, polymers and building products with headquarters in Houston, Texas.а The company's range of products includes ethylene, polyethylene, styrene, propylene, caustic, VCM, PVC and PVC pipe and specialty components, windows, and fence.
MRC