Russian PVC producers raise prices by Rb500-1,600/tonne for September

MOSCOW (MRC) -- The Russian polyvinyl chloride (PVC) producers intend to achieve higher contract prices in September by Rb500-1,600/tonne, according to ICIS-MRC Price report.

Negotiations on Russian PVC contract prices for September began this week. Russian producers have announced the necessity to raise contract prices from August. Prices need to be increased because of both tight supply (scheduled outages for maintenance and reduction in imports) and higher prices of imported resin.

The devaluation of the ruble against the dollar has led to a major rise in imported PVC prices, making many Russian companies refuse from purchasing resin in foreign markets, including the United States.

SayanskKhimplast shut down its PVC production for a month of maintenance works in August. In September, Bashkir Soda Company stopped its production (from 11 September for 8 days) and Volgograd Kaustik shut down its operations (from 26 September to three weeks).

However, local converters are going to keep August prices of Russian PVC for September shipments. Many companies said demand for finished products from PVC, particularly for profile-moulding prouducts, fell by 10.5% in the first seven months of 2013. There has been a strong competition in the market of finished goods, and any price increase in feedstock force converters to reduce their margins.
MRC

MOSCOW (MRC) -- Imports of polyethylene (PE) and polypropylene (PP) to Belarus in the first half of 2013 increased by 6% year on year. High density polyethylene (HDPE) accounted for the main growth in imports, according MRC Price report.

The overall PE and PP imports to Belarus totalled about 93,000 tonnes in the first half of 2013, while during the same period of 2012, this index did not exceed 87,500 tonnes. The dependence of the local market from HDPE imports increased, whereas imports of other PE and PP grades, on the contrary, fell down.

HDPE imports reached 31,500 tonnes in January-June, up by 39 % year on year. Russian producers accounted for about half of the overall HDPE imports (this year, imports from Russia increased by three times).

The total low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) in the first half of 2013 dropped to 22,500 tonnes from 25,200 tonnes in 2012. In this segment, Saudi Arabian polyethylene accounted for about 56% of the total imports this year.

Import of homopolymer of propylene (homopolymer PP) reached 29,100 tonnes in January-June, while in the first half of 2012 it was 28,900 tonnes. Russian homopolymer PP accounted for about 51% of the overall imports.

Imports of copolymers of propylene decreased by 7.5% this year and did not exceed 9,900 tonnes. German producers occupy the leading position in the procurement of copolymers of propylene to Belarus (about 73% of total supplies).
MRC

MOSCOW (MRC) -- Evonik, the German specialty chemicals company, filed a civil lawsuit against the Shanghai QiGuang Corporation for trademark infringement of Evonik’s registered trademark Tegostab in China, as per GV.

The result of the court decision is that Shanghai Qiguang has to stop infringing the registered trademark Tegostab, and to compensate Evonik the incurred damages.

Further, Shanghai Qiguang was required to publish an apology letter in the China Chemical Industry News on 18 July 2013.

Evonik says it does not tolerate any sort of dubious business since success is largely built on trust and in the interest of its customers.

"The basis for a lasting relationship between Evonik and its customers is transparency at all stakeholder levels. Therefore we encourage our customers to purchase only from official sales channels," says Dr. Tammo Boinowitz, Senior Vice President and General Manager of the Business Line Comfort & Insulation.

We remind that, as MRC informed previously, Evonik Industries has just opened the newly expanded plant for the production of premium raw materials, additives and ingredients for the cosmetic and household care industries in a solemn ceremony in Bekasi, Indonesia. With this investment, Evonik is increasing its capacity for surfactants and esters used in hair care, skincare, and industrial applications.

Evonik, the industrial group from Germany, is one of the world leaders in specialty chemicals. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik is active in over 100 countries around the world. In fiscal 2012 more than 33,000 employees generated sales of around EUR13.6 billion and an operating profit (adjusted EBITDA) of about EUR2.6 billion. The international rating agency Moody's has upgraded the credit rating of Evonik Industries AG from Baa3 with a positive outlook to Baa2 with a positive outlook. The rating agency quotes, among other things, the robust operational performance.
MRC

MOSCOW (MRC) -- AkzoNobel, a paints and coatings company and a maker of specialty chemicals, has announced the appointment of David Allen as the company’s new Head of Integrated Supply Chain, reported the company on its site.

He will officially take up the position on October 1, 2013.

Allen joins AkzoNobel from China National Bluestar Group, where he has held the post of Chief Operating Officer since 2009. Prior to joining Bluestar he previously worked for General Electric Company and Sabic in various operations, manufacturing and logistics roles. David Allen will report directly to CEO Ton Buchner.

"We are delighted to have appointed someone of David’s calibre and standing," said AkzoNobel CEO Ton Buchner. "He brings strong operations, manufacturing and logistics experience from across Europe, USA, Asia Pacific and China.

"His broad experience in our industries combined with his strong track record in improving operational performance will be a valuable addition to our team as we continue to take our strategy forward."

We remind that, as MRC wrote earlier, AkzoNobel had received a binding offer from Swiss-based Sika AG to buy its Building Adhesives business for EUR260 million. The deal is expected to be completed in the fourth quarter. The proceeds from the deal will be used to repay short-term debt and improve liquidity.

Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.
MRC

MOSCOW (MRC) -- PolyOne GLS Thermoplastic Elastomers, a global leader in high-performance, custom-formulated thermoplastic elastomer (TPE) solutions, has introduced Versaflex CE thermoplastic elastomers, according to the company's press release.

Created for applications in the consumer electronics market, this family of TPEs enables consumer electronics companies to differentiate their devices through design, performance and market-driven aesthetics.

"Our wide range of innovative technologies allow us to provide targeted performance for distinctive electronics applications," said Charles Page, global marketing director for PolyOne GLS Thermoplastic Elastomers, "and we continue to develop new solutions that address the needs of the fast-moving and rapidly expanding consumer electronics sector."

Versaflex CE supports more sustainable manufacturing because it bonds to PC/ABS and other substrates during molding without adhesives. In addition, these materials can help to lower systems cost by reducing scrap and accelerating throughput of materials during processing.

As MRC reported earlier, PolyOne has agreed to sell its vinyl dispersion, blending and suspension resin assets to Mexico-based Mexichem. PolyOne is going to receive USD250 million in cash for this deal. The sale is subject to satisfaction of regulatory requirements and other customary closing conditions.

PolyOne Corporation is a global provider of specialized polymer materials, services, and solutions. PolyOne is a provider of specialized polymer materials, services and solutions with operations in specialty polymer formulations, color and additive systems, polymer distribution and specialty vinyl resins. The company's full-year revenues in 2012 increased 4.5% to USD3.0 billion, compared to USD2.9 billion in 2011.
MRC