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MRC news digest over the past week

September 03/2013

MOSCOW (MRC) -- MRC news digest over the past week.

1. LDPE production in Russia rose by 19% in July.

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%. 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.

2. July PP output in Russia decreased by 4%.

The polypropylene (PP) output in July 2013 fell by 4% from June. The decline in production was caused by an outage for maintenance at Tomskneftekhim (SIBUR group). The PP production in July totalled 71,200 tonnes, while in June, this index reached 73,800 tonnes. Tomskneftekhim shut down its production for three weeks of scheduled maintenance works since 19 July. The Tomsk plant managed to produce about 5,800 tonnes in less than three weeks of July(10,900 tonnes in June). Last month, Nizhnekamskneftekhim and Stavrolen kept the June"s level of capacity utilisation. The PP output by these plants amounted to 18,500 tonnes and 11,200 tonnes, respectively. Neftekhimia (Kapotnya) and Ufaorgsintez showed a slight reduction in their output. Polyom (Titan Group) reached 100% capacity utilisation in July. The PP output by the Omsk plant reached 15,800 tonnes. Overall, the PP output in Russia exceeded 473,000 tonnes in the first seven months of 2013, up 27% year on year.

3. The share of Chinese PET grades in Ukraine rose to a record 69%.

Ukrainian companies have been increasing actively supplies of Chinese PET grades this year. In January-July the share of Chinese PET chips in the structure of imports grew to 69% year on year. In January-July 2012, China"s share was 48%. The overall imports of Chinese bottle PET totalled about 80,000 tonnes in January-July, 2013. The share of Pakistani and Korean suppliers has been falling amid increasing shipments of the Chinese material.  Imports of Korean PET decreased from 8% to 0.5% in the total structure of PET chips shipments to the country. The reason for such a sharp shift towards the Chinese material is mainly the price. Prices for Chinese PET in the Ukrainian port were USD1,495-1,510/tonne CIF Odessa, excluding VAT, last week, whereas prices for Korean material were USD1,530-1,540/tonne CIF Odessa, excluding VAT. This price difference was maintained throughout the year.

4. July PET output in Russia grew by 5%.

The July production of polyethylene terephthalate (PET) chips in Russia increased by 5% from June and reached a record high in the history of the industry. The July output in Russia totalled 43,400 tonnes of PET. Three plants have raised their capacity utilisation  simultaneously: SIBUR-PETF, Senezh and Alko-Naphtha. The Kaliningrad producer accounted for the largest increase in production. The total PET output is expected to drop in the country in August. The reason for the reduced production will be an unscheduled outage at  Senezh. According to our estimates, the output of Russian PET chip grades will fall by 4,500-5,000 tonnes in August from July.

5. July PVC output in Russia grew by 1%.

The total output of unmixed polyvinyl chloride (PVC) in Russia increased by 1% in July, despite an emergency shutdown of production at Khimprom (Volgograd) and reduced capacity utilisation at SayanskKhimplast. The July production of unblended PVC (emulsion and suspension) in Russia rose to 53,830 tonnes from 53,200 tonnes in June. The increased capacity utilisation of the Bashkir Soda Company (formerly Kaustik (Sterlitamak) allowed to offset lower production at SayanskKhimplast and Khimprom (Volgograd). The overall output of unblended PVC in Russia totalled 381,700 tonnes in the first seven months of 2013, an increase of 3% year on year. The output of suspension PVC rose to 361,400 tonnes and, on the contrary, the production of emulsion PVC dropped to 10,000 tonnes.

6. July exports of titanium dioxide to Ukraine rose by 15%.

July exports of titanium dioxide (TiO2) to Ukraine grew by 15% from June and amounted to 11,900 tonnes. Crimean Titan"s grade Crimea TiOx-220 accounted for the largest shipments (3,200 tonnes). Crimea TiOx-230 grade accounted for a slight drop in exports (exports amounted to 2,800 tonnes). There was reductions in exports of Ukrainian titanium dioxide this year. Export of TiO2 to Ukraine totalled 79,500  tonnes in January-July 2013, while it amounted to 84,900 tonnes a year earlier. Both Crimean Titan and SumyKhimprom reduced their shipments to foreign markets. The fall in exports over the said period amounted to 3% and 15%, respectively.

7. Scheduled outages for maintenance might lead to higher PP prices in Russia.

Russian producers intend to increase polypropylene (PP) prices in September. Producers explain their intentions by strong demand in the domestic market, tight supply for certain types of polypropylene, as well as higher prices for imported goods. Scheduled outages for maintenance at Nizhnekamskneftekhim (TAIF group) and Polyom (Titan group) might increase pressure on converters. Polyom intends to shut down its production for two weeks of maintenance works from 1 September. The Omsk producers has suspended its PP sales already since the end of last week. Nizhnekamskneftekhim plans to shut down its production for a turnaround for a week from 16 September. This week, some companies reported cutting back in supplies of injection propylene homopolymer (homopolymer PP) from the Nizhnekamsk producer.

8. Belarusian producers of products from polymers continued to show a positive trend in output, but the growth rates has slowed down. The July output of finished products from polymers increased by 6.3 % from  June. Producers of plastic windows, doors and window sills accounted for the largest increase in production. According to the National Statistical Committee of the Republic of Belarus, the production of plastic doors and boxes rose to 4,100 square meters, up by 41.3% from June. However, the overall production of these products totalled about 20,100 square meters in January-July 2013, down by 22.8% year on year. The output of windows, window frames and window sills amounted to 47,300 square meters in July, up by 8.9 % from June. The overall production of these products reached 266,000 square meters over seven months of 2013, an increase of 19.5 % year on year.
Author:Margaret Volkova
Tags:dioksid titana, PVC, PP, PE, PET, LDPE, SNOS (Salavatnefteorgsyntez), Neftehimiya, Nizhnekamskneftechem, Poliom, Omsk, Tomskneftekhim, Krimskiy Titan, Sumihimprom, Angarsk Polymers Plant, Stavrolen, Ufaorgsyntez.
Category:General News
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