October SPVC imports to Russia fell to a three-year low

MOSCOW (MRC) -- The external supply of suspension polyvinyl chloride (SPVC) to Russia decreased by 3% (15,900 tonnes) in October, compared with the September level (16,400 tonnes), reaching the bottom since March 2010, according to MRC DatatScope.

The main reason for such a serious drop in imports was the weakening demand. Russian companies actively increased the volume of PVC imports in the beginning of the year. Russia's SPVC imports hit the record in March with more than 58,000 tonnes, declining after which on the back of weakening demand from the major consuming sectors. Total Russia's SPVC imports in the first ten months of the year exceeded 334,000 tonnes, down by 4% year on year.
The structure of SPVC imports to Russian in october was as follows. October imports of US resin fell to 4,700 tonnes, compared to 8,000 tonnes in September. Russia's import of US resin hit the record in March with more than 25,000 tonnes. Total imports of US resin to Russia was about 162,800 tonnes in the first ten months of 2013, compared with 157,500 tonnes year on year.

Chinese producers, on the contrary, managed to increase the imports of resin last month to 6,900 tonnes, from 4,500 tonnes in September.
Total imports of Chinese resin to Russia grew to 125,900 tonnes in the first ten months of the year, from 79,500 tonnes year on year.
Such significant increase in imports from China resulted from the decline in the production of K 70 PVC by the Russian producers (SIBUR-Neftekhim shut production in April).

European producers also increased slightly their PVC delivery in October to 3,200 tonnes, from 2,700 tonnes in September. In general, total imports of European SPVC decreased to 33,200 tonnes in January - October 2013, from 35,800 tonnes in the same period a year earlier.

Imports of US PVC is expected to be increased in November on the back of significant decline of export prices.


MRC

Imports of PS and styrene plastics to Russia dropped by 9 % in January-October 2013

MOSCOW (MRC) -- Imports of polystyrene (PS) and styrene plastics to the Russian market in January-September, 2013, fell by 9% year on year and totalled about 179,000 tonnes, according to MRC DataScope.


Decreased imports were caused by increased production of domestic PS grades of polymer, which was also affected by the expansion of general purpose polystyrene (GPPS) and acrylonitrile-butadiene-styrene (ABS) production capacities at Nizhnekamskneftekhim.

GPPS imports slumped by 24% to 41,000 tonnes. At the same time, despite the expansion of ABS capacities in Russia, its imports grew by 8% in January-October up to 36,500 tonnes. Imports of high impact polystyrene (HIPS) rose by 11% and totalled 24,600 tonnes.

Expandable polystyrene (EPS) market remained the largest import market. EPS imports to Russia fell to 60,000 tonnes in January-October, 2013 (a decrease of 17% year on year).


Exports of Russian PS during the same period increased by 30% year on year to 58,500 tonnes. The EPS market became the leader in terms of exports in 2013, whereas back in 2012 exports of Russian HIPS occupied the leading position.

The overall sales of Russian EPS to foreign markets totalled 21,500 tonnes in January-October, 2013. All segments of styrene plastics produced in Russia (EPS, GPPS, HIPS, ABS) accounted for increased supplies to foreign markets. More information about the structure of consumption, production and imports of PS you can see in MRC Scan Plast.

MRC

Chevron sues protesters in Poland

MOSCOW (MRC) -- Chevron said it had filed a civil lawsuit against protesters in Poland who have prevented the US supermajor from reaching a site where it plans to explore for shale gas, said Upstreamonline.

Local people occupied the site near the village of Zurawlow, about 260 kilometres south-east of the Polish capital, when contractors started trying to erect a fence.

Chevron said it filed the action on the grounds that the protesters were violating its lawful right of access to the site, one of four shale gas exploration concessions the company has in Poland.

"While we respect the rights of individuals to express their opinions, it should be done within the law. We believe that the views expressed by a small group of people do not reflect views of the majority of residents" in the region around the site, Chevron said, according to a Reuters report.

The protesters say Chevron has not adequately consulted with local residents and that its drilling will damage the environment.

Chevron says it is committed to operating in a safe and responsible way and is bringing benefits to communities where it operates.

In neighbouring Romania, Chevron had to suspend work at another planned shale gas exploration well after local people blocked the site. As MRC wrote before, Chevron signed on the dotted line for its USD10 billion deal with Ukraine for the Olesska shale production sharing agreement. Ukrainian president Viktor Yanukovych and Chevron regional president James Johnson were on hand for the signing at the presidential palace in Kiev.

Chevron Phillips is a chemical producer jointly owned by Chevron Corporation and Phillips 66. The company was formed July 1, 2000 by merging the chemicals operations of both Chevron Corporation and Phillips Petroleum Company. A 50/50 venture, the company continues to be governed by a board of directors composed of two members from each of the parent companies. Chevron Phillips is headquartered at The Woodlands, Texas (a northern suburb of Houston), and is a major producer of ethylene, propylene, polyethylene, polypropylene, K-Resin(r) SBC, ryton polyphenylene sulfide (PPS), alpha-olefins, polyalphaolefins, aromatic compounds and a range of specialty chemicals.
MRC

Chandra Asri Petrochemical to revamp its naphtha cracker in January to production capacity

MOSCOW (MRC) -- Chandra Asri Petrochemical (TPIA), Indonesia’s largest petrochemical company, plans to start revamp of its naphtha cracker plant in Cilegon, Banten, in January 2014, to help boost its production capacity, as per Plastemart with reference to Jakarta Post.

The overhaul, which will include the purchase of new machinery, will cost approximately USD380 mln. Funds will be raised by issue of shares and borrowing from several foreign banks.

On the cards is a plan to modify the plant’s machines and add more furnaces to boost our overall production capacity of its ethylene, propylene, Mixed C4 and Pyrolysis gasoline or pygas compounds.

The company would increase its ethylene production to 860,000 tpa from the current 600,000 tons, and increase propylene production to 470,000 tpa from 320,000 tpa. Production of Mixed C4 is expected to increase from 220,000 tons to 315,000 tpa, while Pygas will increase to 400,000 tpa from 280,000 tpa.

Japan’s Toyo Engineering Corp. was finalizing the engineering design for the plant’s modification, which is expected to be completed by the third quarter of 2015 with operations beginning in early 2016.

As MRC wrote previously, this September, PT Chandra Asri Petrochemical Tbk signed cooperation contract of Engineering, Procurement, and Construction (EPC) for the construction of production facility of the company's naphtha cracker with Toyo Engineering Corporation. The expansion will increase its naphtha cracker production capacity up to 43%.
MRC

Yanshan Petrochemical restarted its PP line in China

MOSCOW (MRC) -- Yanshan Petrochemical has restarted a polypropylene (PP) line, according to Apic-online.

A Polymerupdate source in China informed that the line was restarted on November 7, 2013. It was shut for a maintenance turnaround.

Located in Beijing, China, the plant has a production capacity of 200,000 mt/year.

Another Chinese petrochemical producer Luoyang Petrochemical restarted its PP plant on September 20, 2013. It was shut on August 19, 2013. Located in Henan province, China, the plant has a production capacity of 140,000 mt/year.

As MRC reported earlier, Shenhua Ningxia Coal Industry Group shut its polypropylene (PP) plant for a maintainence turnaround on 27 October 2013. Located at Yinchuan city, Ningxia in China, the PP plant has a production capacity of 500,000 mt/year. The palnt is expected to remain shut for around 10 days.
MRC