Russian PP prices remain strong, despite resumption of Poliom

MOSCOW (MRC) - Supply of polypropylene (PP) in the Russian market has improved in the second half of October, on the back of the resumption of production at Poliom. However, the price level is still high, according to ICIS-MRC price Report.

Poliom has resumed its PP production in early October, following nearly a month long shutdown. However, due to unscheduled outages of Stavrolen and Ufaorgsintez (their capacity utilisation was low because of the feedstock shortage) supply of PP, in particular raffia (grade homopolymer PP) continued to be tight in the first half of the month.

Market situation has stabilized in the second half of October, but the price remained high.

The negotiations for Russian contract PP prices for November have begun this week. Some Russian producers said they plan to leave raffia grade polypropylene prices at the rollover from October. They do not rule out that they will raise the price of injection moulding homopolymer PP because the tight supply in the market.

Spot raffia prices this week were at Rb59,500-62,500/tonne CPT Moscow, including VAT. In the injection moulding homopolymer PP market, price offers were heard in the range of Rb63,000-66,000/tonne CPT Moscow, including VAT. A shortage of injection moulding homopolymer PP continued to be felt in the market.
MRC

Jiaxing Petrochemical shut PTA plant for maintenance in China

MOSCOW (MRC) -- Jiaxing Petrochemical has shut its purified terephthalic acid (PTA) plant for maintenance turnaround, as per Apic-online.

A Polymerupdate source in China informed that the plant was shut on october 29, 2013. It is likely to remain off-stream for around one month.

Located in Zhejiang province, China, the plant has production capacity of 1.5 million mt/year.

As MRC wrote previously, the company started commercial production at the plant on September 2, 2012.

PTA is the primary feedstock of PET and polyester production. The 1.5m tonne/year PTA plant can meet requirement for the production of 1.7m tonnes/year polyester products.
MRC

PET import prices dropped to the lowest level since the beginning of the year

MOSCOW (MRC) -- Spot quotations of Asian polyethylene terephthalate (PET) decreased again, dropping to its lowest level this year on the back of falling feedstock and sluggish demand, according to ICIS-MRC Price Report.

One of the largest South Korean traders told MRC that PET quotations are likely to continue to decrease in November. The source noted that Chinese producers were the initiators of price cuts. This policy is driven by the desire to stimulate demand for their products, amid oversupply of the material in the country and weak export shipments. Chinese export prices of PET for customers in the CIS were heard in the range of USD1,310-1,330/tonne FOB China, down by USD30-40/tonne from last week level.

Supplies of Korean PET were cut by USD30/tonne to USD1,340-1,360/tonne FOB Korea. The price of imported Asian PET in the Russian port was at USD1,340-1,390/tonne CFR East, excluding VAT. Price offers for the Asian PET for Ukrainian market were heard at USD1,380-1,420/tonne CIF Odessa, excluding VAT.

Prices of imported PET increasingly put pressure on Russian material. As it was said previously, Russian converters also expect PET contract prices to be cut in November.


MRC

Hungarian import dependency may fall on new plant - MOL CEO

MOSCOW (MRC) - -Hungary's largest oil and gas company MOL Nyrt. laid the cornerstone of a butadiene plant in a move that may decrease Hungary's dependency on imports of the chemical, said The Wall Street Journal.

MOL is set to invest 120 million euros (USD162.7 million) in the plant of its petrochemical arm TVK, part of the company's 300-billion-forint (USD1.37 billion) three-year investment scheme.

Production of butadiene, a component used in synthetic rubber production, will be supplied to tire makers across Hungary, MOL CEO Zsolt Hernadi said at an event in Tiszaujvaros, northeast Hungary.

The butadiene plant could help boost TVK's profits, because production of the chemical is more profitable than of other polymer products produced by TVK, MOL said in a statement.

The new plant will have an annual output of 130,000 metric tons from the second quarter of 2015, MOL said. MOL was trading 0.6% higher at HUF15,290 at 1116 GMT Tuesday.

Mr. Hernadi was speaking in public for the first time since a Croatian court issued an international arrest warrant against him. He is wanted for a hearing related to a bribery case. Croatia earlier sentenced a former prime minister Ivo Sanader, saying he had accepted bribes to allow MOL management to have rights over Croatian peer INA d.d.

Mr. Hernadi didn't comment on the case. MOL is focusing on business as usual and is committed to solving any problems and issues that come up, he said. MOL previously said Hungarian authorities had dismissed the allegations against MOL, which now holds a 49.1% share of INA. Hungary's government holds a 24.6% stake in MOL.

As MRC wrote before, MOL Nyrt. laid the cornerstone of a butadiene plant in a move that may decrease Hungary's dependency on imports of the chemical. MOL is set to invest 120 million euros (USD162.7 million) in the plant of its petrochemical arm TVK, part of the company's 300-billion-forint (USD1.37 billion) three-year investment scheme.

According to MRC, TVK is a significant player in market of polyolefins in Ukraine. Tiszai Vegyi Kombinat (TVK) is a Hungarian manufacturer of olefins and polyolefins such as polyethylene and polypropylene. Feedstock is supplied by MOL of which TVK is a subsidiary and which also processes a major portion of resulting by-products from the olefins plant.

MOL previously said Hungarian authorities had dismissed the allegations against MOL, which now holds a 49.1% share of INA. Hungary's government holds a 24.6% stake in MOL.
MRC

Petrobras reports boiler shutdown at Pasadena, TX, refinery

MOSCOW (MRC) -- Petrobras reported a boiler shutdown at its 100,000-barrel-per-day refinery in Pasadena, Texas, according to a filing with state pollution regulators, said Economistimes.

The filing with Texas Commission on Environmental Quality listed a gasoline-making fluidic catalytic cracking (FCC) unit as a source of emissions.

As MRC wrote before, Petrobras is in talks to sell off its Argentine unit as part of a USD9.9 billion divestment plan. Petrobras, however, has taken its Pasadena Refining System, a refinery located in Pasadena, Texas, off the market

Petroleo Brasileiro S.A. or Petrobras is a semi-public Brazilian multinational energy corporation headquartered in Rio de Janeiro, Brazil. It is the largest company in the Southern Hemisphere by market capitalization and the largest in Latin America measured by 2011 revenues.
MRC