October PP imports to Russia decreased by 18%

MOSCOW (MRC) - The external supply of polypropylene (PP) to Russia decreased by 18% (14,100 tonnes) in October, compared with the September level - 17,100 tonnes. The greatest decrease in imports occurred for homopolymer PP, according to MRC DataScope.

PP imports to Russia have been decreasing for the second month in a row, following August record high. The launch of two new production sites in Omsk and Tobolsk with a total capacity of 680,000 tonnes resulted in the reduction of October of homopolymer PP to a record low - 2,900 tonnes.

The structure of Russia's PP imports last month looked as follows. Import of homopolymer PP in September was about 6,200 tonnes, and in October this figure dropped more than twofold. Total imports of homo the total amount of external supplies of homopolymer PP in October was 67,200 tonnes in January-October 2013, from 121,700 tonnes in the same period of 2012. The main reason of the decline in imports of homopolymer PP was the launch of Poliom and Tobolsk-Polymer.

October imports of block copolymers of propylene (PP-block) rose to 4,300 tonnes to 4,000 tonnes in September. Total imports of PP-block to Russia in the first ten months in 2013 rose to 47,300 tonnes, from 45,700 tonnes because of the stronger demand in the sector of injection moulding.


Imports of stat-propylene copolymer (PP-random) in October was about 3,700 tonnes against 3,200 tonnes in September. Total imports of PP-random to Russia decreased by 31,000 tonnes, from 41,800 tonnes in 2012 because of the weaker demand in the sectors of injection moulding and pressure pipes.

External supplies of other polymers of propylene in October fell to 3,200 tonnes, from 3,800 tonnes in the previous month.
In general, the external supply of polymers of propylene totalled 31,300 tonnes in the first ten months of the year, from 28,700 tonnes year on year.


MRC

MOSCOW (MRC) -- German Lanxess posted a drop of more than a quarter in adjusted core earnings, hurt by lower prices for its main product, synthetic rubber for tyres, and weak overseas currencies, said Reuters.

The world's largest maker of synthetic rubber said third-quarter adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 26.4% to 187 million euros (USD251 million), still beating the 179 million euro average estimate in a Reuters poll.

At its Performance Polymers rubber unit, which accounts for more than half of group sales, weak demand and lower costs for the main petrochemical raw material butadiene led to a 19 percent decrease in product prices.

"Lanxess expects the market environment to remain difficult, especially for the automotive and tyre industries," it said.

Lanxess, whose former parent Bayer invented synthetic rubber, is cutting costs, plans to shed businesses with about 500 million euros in annual sales, and is looking into diversifying away from volatile rubber markets.

French tyre maker Michelin last month warned an emerging-market currency slide would hit earnings this year, while Goodyear, the top U.S. tyre maker, said there were no signs of a significant improvement in Europe.

Lanxess, which also makes ingredients for pesticides, leather chemicals and durable plastics, said it expected EBITDA excluding one-off items of 710-760 million euros for the full year. It had previously seen a range of 700-800 million euros.

As MRC wrote before, Lanxess celebrated the opening of its first production facility in Russia. In the new plant at the Lipetsk site, Lanxess subsidiary Rhein Chemie manufactures polymer-bound rubber additives for the markets in Russia and the Commonwealth of Independent States (CIS), primarily for the automotive and tire industries. A production facility for the bladders used in tire production is to be added in 2016. The overall investment volume in euros amounts to a seven-digit figure and 40 new jobs will be created at the new plant in the medium term.

Lanxess is a leading specialty chemicals company with sales of EUR 9.1 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

MOSCOW (MRC) -- Chevron Phillips Chemical has completed its study to expand normal alpha olefin (NAO) capacity at its Cedar Bayou plant in Baytown, Texas, said Upstreamonline.

As such, the company has received approval to proceed with detailed engineering, design and procurement of long-lead equipment. The capacity expansion is targeting a 20% minimum increase in a phased approach. Final project approval will be sought in the first quarter of 2014.

Construction would be targeted to commence in the first quarter of 2014, and the project would be completed in the second quarter of 2015.

"This is a critical milestone in meeting our goals to remain a consistent and reliable supplier to our customers and to meet their growth strategies," said Mitch Eichelberger, general manager of normal alpha olefins and polyalphaolefins for Chevron Phillips Chemical.

"We are well-positioned to take full advantage of the abundant resources from shale resource development and to support our customers as they continue to grow their businesses."

Normal alpha olefins and their derivatives are used extensively as polyethylene co-monomers, plasticizers, synthetic motor oils, lubricants, automotive additives, surfactants, paper sizing, and in a wide range of specialty applications.

As MRC wrote before, Chevron Phillips Chemical and refiner Phillips 66, has finalized the sale of its Chinese polystyrene business to Grand Astor Ltd.In the deal, Chevron Phillips is selling its affiliate company Chevron Phillips Chemical (China) Co. Ltd., which owns a polystyrene plant located in Zhangjiagang, China.

Chevron Phillips Chemica, headquartered in The Woodlands, Texas (north of Houston), US,l is one of the world’s top producers of olefins and polyolefins and a leading supplier of aromatics, alpha olefins, styrenics, specialty chemicals, piping, and proprietary plastics. Chevron and Phillips 66 each own 50% of Chevron Phillips Chemical.

MRC

MOSCOW (MRC) -- Brazilian petrochemicals giant Braskem produced about 1.3 mln mt of polyethylene, polypropylene and PVC in Q3-13, down 5% from Q3-12, as per Plastemart.

The main reason for this fall was the unscheduled disruption in electricity suppliers that hit northeastern Brazil in late August, impacting its Camacari petrochemical complex in Bahia state and its PVC plant in Alagoas state. This resulted in a 12% drop in resin production in the quarter compared to the previous one.

PVC production for both years includes caustic soda and chlorine. Polyolefins production, which includes polyethylene and polypropylene, totaled 1,068,769 mt in Q3-12, down from 1,107,133 mt in Q3-13. Q3-13 PVC production totaled 129.546 mt, down 8% from 140.595 mt in Q3-12. Braskem ran its crackers at an average operating rate of 92% in Q3-13, up from 92% in Q3-12, but down from 94% capacity in Q2.

As MRC wrote before, Braskem is participating in the bidding to acquire the polyvinyl chloride (PVC) assets of Belgium's Solvay in South America. Braskem said the negotiations had not yet concluded and it could not say when they would be completed.

Braskem is Brazilian main producer of polyethylene and polypropylene. In addition with ongoing plants located in both petrochemical complexes, in April 2008 Braskem opened a 300,000 metric ton polypropylene plant in the city of Paulinia (Sao Paulo).
MRC

MOSCOW (MRC) -- Jakarta-listed PT Chandra Asri Petrochemical, the country’s largest petrochemical producer, and Michelin have inaugurated Synthetic Rubber Indonesia (SRI) as a new joint venture to produce synthetic rubber, as per Apic-online.

SRI, owned 45% by Chandra Asri's Petrokimia Butadiene Indonesia (PBI) subsidiary and 55% by Michelin, will build a plant to produce polybutadiene rubber with a neodymium catalyst and solution styrene butadiene rubber.

The plant, for which capacities and specific location were not given, is targeted to come on stream at the beginning of 2017. Total investment in establishing SRI and building the plant is expected to be USD435-million.

Feedstock for the synthetic rubber production will be supplied from a new 100,000-t/y butadiene plant being built by PBI in Cilegon, West Java.

At the same time, Chandra Asri is expanding its naphtha cracker to meet the mixed C4 feedstock requirements for PBI’s butadiene project.

As MRC wrote previously, this summer, German petrochemical company Ferrostaal Industrial Projects and Chandra Asri Petrochemical agreed to work on studies for the development of a petrochemical plant. Under an agreement, Ferrostaal and Chandra Asri will develop a methanol-based olefin production complex in Teluk Bintuni in West Papua, with a total investment amounting to USD1.89 billion. The complex is expected to produce up to 400,000 tonnes of polypropylene and 175,000 tonnes of ethylene annually.
MRC