LDPE production in Russia rose by 19% in July

MOSCOW (MRC) - Scheduled shutdowns of three Russian producers of low-density polyethylene (LDPE) in July resulted in a serious drop in the output. LDPE production in July decreased by 19%, according to MRC analysts.

Three Russian producers stopped their LDPE capacities on scheduled turnaround: Tomskneftekhim (Sibur group), "Gazprom neftekhim Salavat" (Gazprom) and Angarsk Zavod Polymerov (Rosneft), with total annual capacity of 362,000 tonnes.


Russia's imports of LDPE in July fell to 46,700 tonnes, from the level of 57,700 in June. Tomskneftekhim (SIBUR group) stopped its LDPE production on scheduled maintenance works from 19 July to 8 August. The company produced 12,800 tonnes of LDPE in less than three weeks of July.

"Gazprom neftekhim Salavat" (Gazprom) stopped production of LDPE on the turnaround from 17 July to 17 August; July production of LDPE of the plant was slightly more than 2,000 tonnes. Angarsk Zavod Polymerov (Rosneft) halted its capacities on 50-days prevention in the third decade of July; LDPE production of the plant in July was 2,400 tonnes.

Other Russian producers of LDPE, Kazanorgsyntez and Ufaorgsintez, in July kept the June level of capacity utilisation. The output of LDPE at these plants totalled 21,200 tonnes and 8,300 tonnes, respectively.

Overall, Russia's production of LDPE in the first seven months of this year totalled 374,200 tonnes, up by 4% year on year.


MRC

MOSCOW (MRC) - Russian converters continue to increase production of polymer products, but the rate of the production growth has slowed this year. Russian production of polymer products grew by 5.9% in July, according to MRC analysts.

At the same time, production of pipes and fittings made of polymers, on the contrary, decreased in the first seven months.

According to the Russian Federal State Statistics, July production of films and sheets, non-porous and not combined with other materials totalled 76,300 tonnes, from 72,300 tonnes in June. Russia's production of films and sheets, non-porous and not combined with other materials in the seven months of this year totalled 479,200 tonnes, up 1.3% year on year.

The output of pipes, hoses and fittings made of polymers in July was 54,800 tonnes, up by 0,5% from June level.
The production of pipes, hoses and fittings made of polymer In January - July of this year totalled 331,300 tonnes, down by 14,7% year on year.

The production of plastic windows and sills in July of this year was 3 mln square meters, up by 16.6% from June level. Russian production of plastic windows and sills in the seven months of this year totalled 13.9 mln square meters, up by 9.6% year on year.

The volume of production of plastic doors and boxes in July was 102,000 square meters, up 12,4% from June level.
The total production of plastic doors and boxes In January - July 2013 amounted to 498,400 square meters, down by 1.1% year on year.

July production of polymer plates and sheets was 19,100 tonnes, up by 14% from June. The production of polymer plates and sheets in Russia totalled 112,900 tonnes in the seven months of this year, up by 17.5% year on year.

Russia's production volume of bottles, flasks and similar articles from polymers in July was 1.4 billion items, almost the equal as in June. Russian production volume of bottles, flasks and similar articles from polymers in seven months totalled 8.4 billion items, down by 1.4% year on year.

MRC

MOSCOW (MRC) - On the back of the shortage in the domestic market and a serious rise in feedstock costs European producers increased their export PVC price significantly. PVC prices for the CIS countries markets grew by EUR25-40/tonne for August delivery, according to ICIS-MRC Price Report.

Scheduled and unscheduled shutdowns of PVC plants in Europe amid strong seasonal demand resulted in a shortage of material, which is especially felt in the eastern part of the region. In addition, the contract price of ethylene (one of the two main feedstock) was agreed in August up by EUR40/tonne from July level.

All of these factors allowed European producers to achieve significant rise in export prices in the current month.
Thus, the deals for European PVC were struck at EUR775-850/tonne FCA.

All deals for August European PVC supplies to the CIS markets had been closed by this week. Some European producers said they also plan to raise export prices of PVC in September in line with further price growth of raw materials. The expected price increase will be at least EUR10/tonne.
MRC

MOSCOW (MRC) - Ufaorgsintez, one of the largest Russian companies producing organic synthesis products and polymers, has suspended polypropylene (PP) production, said MRC analysts.

The reasons of the outage have not been disclosed yet.

The emergency shutdown of PP plant took place in the evening, 20 August. According to unofficial information, the production is planned to be resumed on Sunday, 25 August.

The annual PP production capacity of Ufaorgsintez is 100,000 tonnes. The overall PP production at the Ufa plant totalled about 70,200 tonnes in the first seven months of 2013.

Ufaorgsintez OAO manufactures organic synthesis products in Russia and Europe. Its products include ethylene, propylene, ethanol, cumol, ethyl benzol, phenol, acetone, copolymer rubber, polyolefines, poly vinyl chloride and polyethylene items, thinners, and dilutants. The company exports its products to Byelorussia, Kazakhstan, Finland, Germany, France, and Brazil. Ufaorgsintez OAO was founded in 1956 and is based in Ufa, Russia. As of January 22, 2010, Ufaorgsintez OAO operates as a subsidiary of Bashneft Joint Stock Oil Company.
MRC

MOSCOW (MRC) -- Shell progressed its plan to build a lubricant oil blending plant in Indonesia with a groundbreaking ceremony officiated by Indonesia’s Minister for Industry Mohamad S. Hidayat; Shell Global Commercial Executive Vice President Mark Gainsborough and Shell Indonesia President Director Darwin Silalahi, reported the company on its site.

The plant, to be built on 75,000 square meters of land in Marunda Center (north of Jakarta), is about the size of ten football fields, and will supply a range of high quality lubricants for consumer, transport, industrial and marine markets in Indonesia.

The facility is expected to have a capacity of 120,000 tonnes per year, producing Shell’s major brands like Shell Helix, Shell Advance, Shell Rimula, Shell Tellus, Shell Spirax and Shell Omala, making it the largest lubricants blending plant operated by an international oil company in the country.

Darwin Silalahi, President Director of Shell Indonesia, said, "This latest milestone marks our continuous commitment to Indonesia, working with the local and the national government to create more jobs for the local economy, and bring products made with the latest in Shell lubricant technology closer to our customers."

As MRC informed previously, in early 2013, Royal Dutch Shell took a final investment decision tol increase production capacity at its Singapore petrochemical plant to meet demand for specialized materials used in the automotive and furniture industries. The upgrade will increase the plant's capacity to produce polyols -- industrial chemicals used to make high-quality foams -- by more than 100,000 metric tpy to 360,000 tpy. The project is expected to be completed in 2014.

Besides, Shell will upgrade its petrochemical plant in Singapore to meet rising demand for ethylene in Asia. The upgrade will increase the plant's capacity to produce olefins and aromatics industrial chemicals used to make plastic, paint and other products by more than 20%.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC