SOCAR Turkey Enerji to become country’s most profitable company by 2023

MOSCOW (MRC) -- SOCAR Turkey Enerji intends to become the country's most profitable company by 2023, the head of SOCAR Turkey Enerji and board member of the Petkim Petrochemical Holding Kenan Yavuz told, said Messenger.

According to him, currently SOCAR Turkey Enerji is the largest investor in the history of Turkey. It is expected that company's export of chemical production will total to USD5 billion by late 2013.

Earlier Yavuz told Trend that the total income of SOCAR Turkey Enerji and its subsidiaries will exceed USD15 billion.

"Taking into account its total income, SOCAR Turkey Enerji is the third company in this sphere in the country after Koc and Sabanc Holding," Yavuz said.

SOCAR Turkey Enerji ranks second in the field of industrial production in Turkey. One can say that SOCAR Turkey Enerji is ahead of Sabanc? Holding in the field of industrial production, he said.

SOCAR Turkey Enerji A.S and SOCAR International DMCC OGG acquired a 10.32% stake in Petkim on March 30, 2012, increasing SOCAR's stake in the company to 61.32%. Some 38.68% is in free circulation on the Istanbul Stock Exchange.

Petkim Petrokimya Holding manufactures plastic packages, fabric, PVC and detergents. It is the only Turkish producer making such products, a quarter of which the company exports.

As MRC wrote before, Azerbaijan is expected to produce 142,500 tons of propylene in 2014 compared to 44,200 tons projected for 2013, the draft concept of socio-economic development in 2014 and the next three years.

SOCAR includes production association Azneft (companies producing oil and gas on land and sea) and Production Association Azerkimya (chemical industry), production association Azerigas (gas distribution).
The State Oil Company is the only producer of oil products in the country (it has two refineries on its balance sheet) and also owns petrol stations in Azerbaijan, Georgia, Ukraine and Romania. SOCAR possesses a network of petrol stations in Switzerland and is the co-owner of the largest Turkish petrochemical complex Petkim.
MRC

MOSCOW (MRC) -- South Korea's trade commission has recommended imposing antidumping tariffs on oriented polypropylene (OPP) films from China, Indonesia and Thailand over the next five years, said Globalpost.

The decision follows an investigation launched in January. OPP film is a glossy film used in a wide range of applications, including packaging, labeling and textiles.

The Korea Trade Commission said it has recommended the government to impose antidumping duties ranging from 3.89 percent to 25.05 percent on Chinese products and tariffs of 4.43% to 5.98% on imports from Indonesia.

Thai products will also be subject to antidumping tariffs of 3.48% to 10.55% over the next five years, it said.

The commission earlier said the combined market share of products from the three countries had more than doubled from 11.5% in 2009 to 24.2% in 2011. The local market for OPP film was at 327.2 billion won (USD307 million) in 2011.

In addition to fresh punitive duties on OPP film imports, the commission has also recommended the government to extend the country's antidumping tariffs on polyester yarn from China, Taiwan and Malaysia.

If accepted by the Finance Ministry, polyester filament drawn textured yarn from the three countries will continue to be subject to punitive duties ranging from 2.22% to 8.69% for another three years, according to the commission.

The commission said it has also recognized damages from the country's free trade agreement with the European Union to three local firms that process pork, a move that will entitle the local companies to various government support, including government subsidies for consulting fees and low-interest loans.

Pork imports from the European Union jumped 11.2% from USD284 million in the first half of 2011, when the Korea-EU FTA was still not in effect, to USD316 million in the first half of 2012.

As MRC wrote before, Malaysia has imposed anti-dumping duties on polyethylene terephthalate (PET) imported from Thailand and biaxially-oriented polypropylene (BOPP) from China, Indonesia, Taiwan, Thailand and Vietnam. The duty on PET from Thailand will increase to 49.25% from zero for the period from 21 April 2011 through 20 April 2016.
MRC

MOSCOW (MRC) -- Prices of North American polyvinyl chloride (PVC) for the CIS markets have stopped falling by the last week of October. November prices did not exceed USD950/tonne CFR St Petersburg, according to ICIS-MRC Price report.

A major drop in purchases of North American PVC by the CIS markets, particularly, by Russia, in the recent months forced suppliers to reduce prices significantly. Prices began to go down rapidly in the second half of October, but they have stopped falling by the last week of the month.

Offers for November PVC shipments from the US to the CIS countries were heard in the range of USD950-975/tonne CFR St Petersburg and USD955-980/tonne CIF Odessa for K65 PVC. However, suppliers of North American PVC said prices might grow in December on rising purchases from many export markets.

Companies from the CIS markets said the current prices for North American PVC are quite attractive, particularly, in comparison with European prices and they are contracting actively resin for November shipments.
MRC

MOSCOW (MRC) -- September scheduled outages at low density polyethylene (LDPE) production led to higher prices in the Russian market. A shortage of polyethylene (PE) has remained in October, despite stable operations at the plants, prices also remained high, according to ICIS-MRC Price report.

Scheduled shutdowns at LDPE production at Kazanorgsintez and Ufaorgsintez in September led to a shortage in the market. There was no outages in October with the exception of Ufaorgsintez. But, the shortage of PE, as well as a high price level, remained in the Russian market.

The LDPE 108 market accounted for the accutest shortage in supply during the whole month. The main reasons were low capacity utilisation at Ufaorgsintez (maintenance works and a shortage of feedstock because of outages for turnarounds at local gas processing plants - GPPs) and Angarsk Polymer Plant's high PE prices (Rb57,500/tonne FCA Angarsk, including VAT). Prices for PE 108 were in the range of Rb59,200-61,500/tonne CPT Moscow, including VAT, in the last week of October.

Price offers for Russian LDPE 158 were in a quite wide range of Rb59,000-62,000/tonne CPT Moscow, including VAT, in the last week of October. Offers for Belarusian PE were absent because of a scheduled shutdown for a turnaround at Polymir.

Supply was excessive and demand was weak in the shrinkable film PE market because of a seasonal factor. PE prices were in the range of Rb61,000-62,500/tonne CPT Moscow, including VAT.

Ufaorgsintez has finished all the maintenance works and has reached the designed capacity by November. Belarusian Polymir has resumed production of LDPE 158, which is expected to be shipped to the Russian market in the near future. But, major changes are unlikely to take place in the market in the first decade of November.

The leading Russian LDPE producers - Kazanorgsintez and Tomskneftekhim - increased their exports more than twice in October after September decline on the back of higher prices in foreign market. Large sales of Russian PE are also expected in November, which will sustain a lack of demand in the domestic market.
MRC

MOSCOW (MRC) -- South Korea's LG Chem is in plans to shut its cracker for maintenance turnaround, according to Apic-online.

A Polymerupdate source in China informed that the cracker is likely to be shut in November 2014. It is likely to remain off-stream for around one month.

Located in Yeosu, South Korea, the plant has a production capacity of 1 million mt/year.

As MRC reported earlier, LG Chem lowered the operating rate at its 650,000 mt/year acrylonitrile-butadiene-styrene (ABS) plant at Yeosu to 70% of capacity in October from 80% in September.

LG Chem also plans to start operations at a new 150,000 mt/year ABS plant in Huizhou, southern China's Guangdong province, toward the end of this year or in Q1 2014, sources close to the company said earlier. The plant will be a joint venture with state-owned China National Offshore Oil Corp.

LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. According to ICIS report, it is 15th biggest chemical company in the world in 2011. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.

MRC