Consumption of caustic soda in Russia fell by 6% in the first nine months of 2013

MOSCOW (MRC) -- Consumption of caustic soda in Russia in January-September 2013 dropped by 6% year on year and totalled about 677,000 tonnes, according MRC ScanPlast.

Russian producers reduced the production of caustic soda amid weaker demand in the domestic market. The overall output of caustic soda in Russia fell by 6% in January-September, 2013, to 757,600 tonnes, while exports rose by 1%. Exports of Russian caustic soda totalled 118,000 tonnes in the first nine months of the year.

The decline in production was accompanied by increased imports. The overall imports of caustic soda increased by 34% in January- September, 2013, and reached about 37,000 tonnes.

The largest caustic soda producer in Russia is Kaustik (Volgograd). The plant's annual production capacity is 23,000 tonnes.
MRC

MOSCOW (MRC) -- European producers of polyethylene (PE) reduced the price on the back of falling ethylene prices.
Offers for November delivery of high density polyethylene (HDPE) were agreed down by EUR30/tonne, from the October level, according to ICIS-MRC Price Report.

European contract price of ethylene for November shipment was settled down by EUR30/tonne from the October level. European producers have cut November PE price for CIS markets proportionally to the reduction in feedstock price; some market players said they managed to achieve even bigger reduction in price.

Negotiations for European PE prices for November delivery to CIS markets have begun this week. Price offers for HDPE were heard in the range of EUR1,090-1,170/tonne FCA.

Current weakening of the euro against the dollar has also a bearish effect on European PE prices.

Some companies are in no hurry to confirm the the current offers, hoping to achieve even lower prices on the back of falling oil quotations.
MRC

MOSCOW (MRC) -- Evonik Industries, the German specialty chemicals company, has opened a new production facility for organic specialty surfactants in the Shanghai Chemical Industry Park (SCIP) in Shanghai, China, as per the company's statement.

"With this investment, we are sustainably expanding our business in Asia. The new plant in Shanghai not only plays a key role in further consolidating our position in the Chinese market, but is also an important element of our strategy for the growth markets of the entire region," emphasized Dr. Klaus Engel, Chairman of the Executive Board of Evonik Industries AG, in his remarks at the opening ceremony.

The new facility has an annual capacity of around 80,000 metric tons. The investment volume was in the upper two-digit million Euro range. The production uses a number of different technologies, enabling Evonik to offer a broad portfolio of locally manufactured products. These include specialty surfactants from renewable resources that are used in personal care and hygiene products, household cleaning agents, and industrial applications.

Evonik already operates a similar plant in Bekasi, Indonesia, mainly serving manufacturers in the personal and household care industries in Southeast Asia, Australia and New Zealand.

The market for laundry care products in Asia is driven by consumer desire for a more comfortable and convenient lifestyle. The Chinese cosmetics market, Asia’s single largest, has been growing in double-digits and is expected to continue growing in this range. The Chinese market for cosmetic ingredients follows this trend.

As MRC reported earlier, this summer, Evonik launched its Composites Project House, based primarily in Marl, with a branch in Darmstadt, to develop new materials and system solutions for the lightweight construction sector.

Evonik, the industrial group from Germany, is one of the world leaders in specialty chemicals. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik is active in over 100 countries around the world. In fiscal 2012 more than 33,000 employees generated sales of around EUR13.6 billion and an operating profit (adjusted EBITDA) of about EUR2.6 billion.
MRC

MOSCOW (MRC) - Dutch food and chemicals group DSM stuck to its 2013 operating profit target of close to EUR1.4 billion (USD1.9 billion), up 27% from last year, thanks to acquisitions and the strength of its human and animal nutrition business, said Reuters.

The company said on Tuesday it was still exploring ways to reduce its exposure to the low-margin market for caprolactam, the raw material for a type of nylon with a wide range of uses from food packaging and fish nets to carpets and car parts.

The caprolactam business has hit results this year, and DSM said it was still looking at options ranging from partnerships to divestment, as well as searching for a partner with which to expand its pharmaceuticals business in Asia.

DSM shares rose more than 2% in early trading to stand at EUR57.00. DSM shifted strategy in 2010 and has spent more than EUR2.2 billion on acquisitions as it moved away from lower-margin bulk chemicals to focus on less cyclical businesses including food ingredients and high-end plastics.

DSM reported third-quarter EBITDA of EUR342 million, up 27% from a year ago, on revenue of EUR2.4 billion, up 4%. Analysts in a poll commissioned by Reuters had forecast EBITDA of 340 million, and revenue of 2.49 billion.

As MRC wrote before, Royal DSM signed a partnership agreement with long fibre thermoplastic (LFT) specialist Plasticomp (Winona, Minnesota / USA) to develop bio-based LFT composite materials based on DSM’s "EcoPaXX" polyamide 4.10.

Royal DSM is a global science-based company active in health, nutrition and materials. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials.
MRC

MOSCOW (MRC) -- The High Performance Elastomers (HPE) business unit of specialty chemicals group Lanxess has increased its prices for nitrile-butadiene rubber (NBR) globally effective November 1, 2013, reported the company on its site.

The price adjustment per metric ton for NBR is EUR60 for specialties and EUR100 for standard qualities. In Dollar markets the adjustment per metric ton is USD150 for specialties and USD200 for standard qualities.

This adjustment is unavoidable because the costs for raw materials have risen significantly.

Marketed under the Lanxess brand names Perbunan, Krynac and Baymod N, the rubber grade NBR is used for seals, hoses in hydraulic and pneumatic applications or blankets for rolls.

The HPE business unit is part of Lanxess’ Performance Polymers segment, which recorded sales of EUR 5.18 billion in fiscal 2012.

As MRC informed previously, Lanxess has recently developed a new polyester material grade based on polyethylene terephthalate (PET). The new material grade - Pocan TP 555-001 - is excellently suited to manufacturing housings, sockets and other components for light-emitting diodes (LED). What makes the product unique is its excellent light reflection, which hardly declines at all over time, and its high heat stability. Besides, it is reinforced with glass fibers and contains special additives.

Lanxess is a leading specialty chemicals company with sales of EUR9.1 billion in 2012 and roughly 17,400 employees in 31 countries. The company is currently represented at 50 production sites worldwide. The core business of Lanxess is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals.
MRC