Ufaorgsintez resumed LDPE production after maintenance

MOSCOW (MRC) -- Ufaorgsintez resumed production of low density polyethylene (LDPE) at its second reactor after a scheduled turnaround, according to ICIS-MRC Price report.

Ufaorgsintez resumed LDPE (158 and 153) production at its second reactor on Saturday, 21 September, after the outage for scheduled maintenance works. However, the production is not loaded to its full capacity because of a feedstock shortage. The turnaround began on 16 September and lasted about 5 days.

The annual capacity of Ufaorgsintez's PE production is about 88,400 tonnes. The Ufa plant produced about 63,300 tonnes of LDPE in the first eight 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.

According to the producer's data, the company is one of the largest in Russia in terms of production - 40% phenol, 13% polyethylene, 20% polypropylene.
MRC

MOSCOW (MRC) - Polyom ( group Titan) plans to resume production of polypropylene (PP) in the next two days after a scheduled maintenance works, according to ICIS-MRC Price Report.

Polyom stopped its PP production for scheduled turnaround on 1, September 2013. Initially the plant planned to have two weeks scheduled maintenance, but for some reason the resumption of the operation was shifted on 23-24 September.

Polyom started production of polypropylene on 11 February 2013. The annual capacity of the plant is 180 tonnes. In less than seven months of the work, the company produced 73,600 tonnes of polypropylene.

MRC

MOSCOW (MRC) - "Bashkir Soda Company" (formerly Kaustik, based in Sterlitamak) resumed its suspension polyvinyl chloride (SPVC) production on 17 September following a week long maintenance work, according to a ICIS-MRC Price Report.

The plant's annual capacity of SPVC production is 210,000 tonnes. The company has announced its plans to increase capacity to 400,000 tonnes/year. The plant's production of PVC totalled about 124,600 tonnes in the seven months of the current year.

As MRC noted earlier, JSC "Kaustik" (Sterlitamak) was reorganised in April 2013, through a takeover of JSC "Soda" (Sterlitamak). In May 2013 JSC "Kaustik" was renamed into "Bashkir Soda Company".

MRC

MOSCOW (MRC) -- Ukrainian companies were forming actively inventories of high density polyethylene (HDPE) in August amid rising prices in Europe and falling supplies from Russia. HDPE imports to Ukraine grew by 16% from July, according to MRC DataScope.

In August, Ukrainian companies increased HDPE imports to 14,900 tonnes from 12,800 tonnes in July.
As expected, film and blow moulding HDPE accounted for the main growth in imports.

Film HDPE imports went up to 6,200 tonnes last month from 5,100 tonnes in July. Middle Eastern HDPE accounted for the main increase in imports (higher prices in Europe have forced the Ukrainian companies to look for cheaper alternatives). Imports of film HDPE are expected to drop in September because of continued price rises in Europe and the resumption of production at Karpatneftekhim (the first lots of HDPE have already entered the market).

The September scheduled outage at Kazanorgsintez HDPE production (the key PE supplier to Ukraine ) has forced local companies to build up additional inventories of blow moulding PE for the first autumn months. Imports of blow moulding HDPE rose to 3,500 tonnes in August from 2,200 tonnes in July. Russian polyethylene accounted for the main increase in supplies.

A seasonal factor led to increased pipe HDPE supplies. However, the overall August increase in imports was only 15% (2,900 tonnes from 2,500 tonnes in July) amid tight pipe PE supply in foreign markets

Higher prices in foreign markets and a lack of offers from Russian producers, on the contrary, resulted in reductions in August imports of injection moulding HDPE to Ukraine. Imports fell to 1,300 tonnes in August from 1,600 tonnes in July.

The overall HDPE imports to Ukraine totalled about 99,000 tonnes in the first eight months of 2013, up 27% year on year. Film HDPE accounted for the main growth in imports (about 67% to 41,900 tonnes).

MRC

MOSCOW (MRC) - Verkhovna Rada of Ukraine has adopted the changes to the Customs Tariff. But the import duty on polyvinyl chloride (PVC) remained unchanged. The final decision concerning PVC duty will be taken by a separate law, according to MRC.

On 19 September, the Ukrainian parliament voted for a change in the Customs Tariff of Ukraine in line with the European standards. Representatives of the Cabinet said the changes are important taking into account Ukraine's commitments before the International Convention on the Harmonized Commodity Description and Coding System, as a part of Ukraine's membership in the WTO.

Ukraine's import duties on unmixed PVC remained unchanged - 0% in the final draft amendments to the Customs Tariff, despite the initial version of the law draft expected to introduce two rates: a reduced rate of 6.5% and in the long run 13%.

However, some Ukrainian parliamentarians hope to increase import duty for unmixed PVC. The chairman of the Ukrainian Union "Batkivshchyna" Arseniy Yatsenyuk stands for the introduction of PVC duties, citing the need to support domestic producers - Karpatneftekhim (Kalush, Ivano-Frankivsk region).

Another deputy from " Batkivshchyna ", Olga Sikora, on 18 September registered a separate bill on amendments to the Customs Tariff of Ukraine, concerning an increase of PVC import duty by 6.5%.

A representative of the profile committee of the Verkhovna Rada Vitaly Homutynnik pointed out that it was agreed to prepare a separate bill to regulate this problem.

As MRC wrote before, the increase of duties on imported PVC to Ukraine by 6.5% was one of the main conditions for the resumption of the "Karpatneftehim," according to the memorandum signed by the Ukrainian Government and the Russian group LUKOIL in April of this year.

Karpatneftekhim (Kalush, Ivano-Frankivsk region), a subsidiary of "LUKOIL Neftekhim " - is the largest producer of polymers in Ukraine. The company produces polyolefins (ethylene and propylene), polyethylene (PE), chlorine, polyvinyl chloride (PVC), and caustic soda.

MRC