Brazilian chemical trade deficit widens

MOSCOW (MRC) -- Brazilian trade deficit in chemicals in the first nine months of 2013 was 19.7% greater than in the same period in 2012, said Bnamericas, citing chemical industry association Abiquim.

The total deficit of USD23.8bn for the year to September reflected a 10.8% increase in chemical imports to USD34.4bn, and a 4.9% drop in Brazil's chemical exports to USD10.6bn. Abiquim expects Brazil to post a record annual trade deficit in chemicals in 2013 of more than USD33bn.

In the month of September, Brazil's imports of chemical products decline by 12% from August to USD3.9bn. Imports were 3.5% higher than in September 2012.

The most imported chemical products were intermediate products for fertilizers, with USD686mn of imports in September.

Brazil exported USD1.2bn of chemical products in September, 2.5% more than in August but 0.7% less than in September last year.

As MRC wrote before, Brazilian trade deficit in plastic resins and raw materials surged in the first eight months of 2013 to USD615mn from just USD6.7mn in the same period last year. Producers of polyolefins outside Brazil, especially in the US, used their lower production costs to increase their share of a fast growing market.

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MOSCOW (MRC) -- Henkel Bautechnik’s new factory in Russia’s Stavropol region is now open for production, reported the company on its site.

The plant was officially opened on October 16, at a ceremony attended by customers, local officials, journalists and employees.

It is setting the standard for sustainable manufacturing of construction adhesives and bringing Henkel’s world-leading dry mix products closer to new and existing customers in the fast-growing Russian market.

The new site is Henkel Bautechnik’s fourth plant in Russia and will supply more than twenty regional distributors in this attractive market. Adhesive Technologies is optimizing its logistics and stock-management in Russia to reduce delivery times, decrease costs and drive down its footprint by cutting fuel consumption. This is the reason Russia’s Stavropol region was selected: The area is a magnet for investment thanks to its abundant local resources, reliable transport infrastructure and proximity to large distribution markets. The new factory brings Henkel closer to its customers geographically, and opens up new opportunities for partnering and customer collaboration.

The plant’s facilities include five automated production lines, warehouse space covering 8,500m2 and an overall annual production capacity of 160,000 tons.

The project is part of Henkel’s commitment to expanding its presence in emerging markets, including Russia, where it is already the number one supplier of adhesives: Ceresit and Thomsit brand products were used on more than 250 Russian construction sites in 2013 alone.

As MRC wrote previously, in September Henkel inaugurated the world’s largest adhesives factory in Shanghai, China. With this new production facility the company says it is expanding its production capacity in a major emerging market and will deliver its adhesive technologies more quickly to the growing number of customers based in China and the Asian region. The new factory comprises 150,000 square meters of space and is now the central production site for the company's industrial adhesives in China and the Asia-Pacific region.

Henkel operates worldwide with leading brands and technologies in three business areas: Laundry & Home Care, Cosmetics/Toiletries, and Adhesive Technologies. Founded in 1876, Henkel holds globally leading market positions both in the consumer and industrial businesses with well-known brands such as Persil, Schwarzkopf and Loctite.
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MOSCOW (MRC) -- DuPont Co., the biggest U.S. chemical maker by market value, posted third-quarter profit that beat analysts’ estimates on higher sales volumes at units that make materials for solar panels and bullet-resistant vests, said Bloomberg.

Profit excluding some legal and pension costs was 45 cents a share, Wilmington, Delaware-based DuPont said today in a statement, topping the 41-cent average of 19 estimates compiled by Bloomberg. Net sales climbed 4.7% to USD7.74 billion, trailing the USD7.77 billion average estimate.

Sales of films and metal pastes used in solar panels drove a 67% gain in operating profit at the electronics unit. Earnings rose 16% at the safety and protection division, where U.S. military demand helped sales of Kevlar anti-ballistic fibers, DuPont said in a slide presentation.

Third-quarter net income rose to USD285 million, or 30 cents a share, from USD5 million, or break even, a year earlier. Items DuPont excluded from its adjusted per-share earnings include some employee-retirement expenses, costs to reimburse customers whose trees were damaged by Imprelis herbicide, and expenses to settle a titanium-dioxide antitrust claim.

DuPont Chairman and Chief Executive Officer Ellen Kullman is under pressure to improve the company’s performance from Trian Fund Management LP. The New York-based hedge fund, co-founded by activist Nelson Peltz, raised its stake to more than 21 million shares, or about 2.3%, and met top DuPont executives to discuss ways to boost shareholder value, people familiar with the matter said in August.

Installations by the solar industry may increase 10% this year, DuPont said in its presentation. Sales at the world’s biggest solar-energy companies probably rose 17% in the third quarter, according to the median of analysts’ estimates compiled by Bloomberg.

The agriculture unit posted the biggest sales gain, rising 15% on Latin American pesticide demand and seed prices, the company said. That helped narrow the loss in the seasonally weak third quarter when farmers in the U.S. and Europe haven’t begun to buy supplies for the next planting.

The agriculture, safety and electronics units are the kinds of higher-margin businesses that Kullman is focusing on while continuing to move away from commodity chemicals. She said in July that DuPont is considering a spinoff or sale of its performance chemicals unit, which generated USD7.2 billion of revenue last year, because of slow-growing, volatile earnings. The unit makes cyanide, Freon refrigerants, Teflon coating for nonstick pans, and titanium dioxide, known by its chemical formula TiO2 and used in paints and plastics.

The performance chemicals segment posted a 38% decline in third-quarter operating profit as prices fell. The business is starting to recover, with sales volumes rising 25 percent, the third consecutive quarterly improvement, DuPont said.

As MRC wrote previously, in late 2012 DuPont reported of investments that the company were making in all its divisions kept on delivering results which were offset by the weakness in titanium dioxide (TiO2) markets. "Excluding the performance chemicals unit, which includes TiO2, the company expects earnings growth of at least high-teens in 2013 versus 2012. Performance chemicals margins are expected to fall six to seven percentage points in 2013," DuPont said.

DuPont, founded in 1802 to make gunpowder, produces thousands of products from genetically modified seeds to plastics for auto parts.
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MOSCOW (MRC) -- Novatek will supply fuel in its liquefied form to China National Petroleum Corp. for 15 years, according to a preliminary accord, said Hydracarbonprocessing.

Novatek will sell at least 3 MMmtpy of liquefied natural gas to CNPC on delivered ex-ship terms, with the price indexed to the Japanese Crude Cocktail, the Tarko-Sale, Novatek said in a statement. The agreement was signed during Prime Minister Dmitry Medvedev’s visit to Beijing. The period of supplies can be extended, according to the statement.

Novatek, which is leading the USD20 billion LNG project in the Russian Arctic region, is challenging Gazprom’s monopoly on supplies of super-chilled fuel abroad to benefit from the Asian nation’s rising energy demand. Russia plans to allow Novatek, as well as oil producer Rosneft, to export LNG from next year.

CNPC agreed in June to buy a 20 % stake in the Yamal LNG project, joining Novatek and partner Total. The deal is expected to be completed by December 1.

Yamal LNG at full capacity will produce 16.5 MMtpy of LNG starting from the end of 2016, according to Novatek.
MRC

MOSCOW (MRC) -- Eastman Chemical Company, in conjunction with Johnson Matthey Davy Technologies Limited (JM Davy), has developed advanced proprietary technology for the production of ethylene glycol from synthesis gas-based feed stocks, as per Plastemart.

Ethylene glycol, commonly referred to as mono ethylene glycol (MEG), is a key industrial chemical for PET production and is also a building block in the production of polyesters for fiber and packaging applications.

This new technology enables the production of MEG from a variety of raw materials, including coal, natural gas, or biomass and is based on new, proprietary catalysts and process design developed by Eastman and JM Davy.

Unlike other recent syngas based processes, this new technology does not go through oxalate intermediates. Extensive pilot plant demonstration of the new process is nearing completion and dialogue is underway for the first demonstration.

"This world-class technology is well positioned to enable global growth for ethylene glycol, a key industrial product," said Dr. Gregory W. Nelson, Eastman's senior vice president and chief technology officer. "The combined expertise of Eastman and JM Davy in synthesis gas chemistry enabled our best process and catalyst scientists to create a superior technology and bring it to market for licensing."

As MRC reported earlier, Eastman Chemical is expanding capacity of its Eastman 168 non-phthalate plasticizers at its manufacturing facility in Texas City, Texas, USA. The expansion at the site will increase the overall capacity of Eastman 168 by approximately 15% and is expected to be operational by mid-2014. Non-phthalate plasticizers are broadly used in products such as toys, childcare items, food contact materials and medical devices, and are also used to provide flexibility to PVC in a wide variety of applications.

Eastman (headquartered in Kingsport, Tennessee, USA) is a global specialty chemical company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. Its market-driven approaches take advantage of world-class technology platforms and leading positions in attractive end-markets such as transportation, building and construction, and consumables.
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