October LLDPE imports to Russia grew by 29%

MOSCOW (MRC) -- There was a surge in imports in the linear low density polyethylene (LLDPE) market after a drop in August-September, 2013. LLDPE imports last month rose by 29% from September, according to MRC DataScope.

Middle Eastern producers accounted for the decline in LLDPE imports in August-September, which led to shortages in the Russian market. As expected, October LLDPE imports rose to 19,300 tonnes from 15,000 tonnes in September because of increased supply of film LLDPE.

Films producers still remained key LLDPE consumers. October imports of film LLDPE exceeded 17,100 tonnes, whereas in September this index was 12,200 tonnes. The overall imports of film LLDPE totalled about 150,000 tonnes (117,000 tonnes a year earlier).

October imports of LLDPE for large items produced by rotational moulding halved compared with September under the pressure of seasonal factors and totalled about 775 tonnes. This index fell to 7,900 tonnes during the first ten months of the year from 9,400 tonnes in 2012.

Imports also dropped in other sectors of LLDPE consumption with the exception of injection moulding PE.

The overall LLDPE imports to Russia exceeded 171,000 tonnes in January-October 2013, up 24% year on year.

MRC

MOSCOW (MRC) -- Reliance Industries (RIL) has significantly raised the scope and worth of its earlier pact with Munich-based Linde AG, parent of industrial gases producer Linde India, by 50% to €700 million (about Rs 5,900 crore), as per Plastemart.

Reliance Industries’ ongoing refinery expansion project at Jamnagar includes plans to produce synthetic gas from coal. As MRC wrote previously, in a deal signed in April, Linde’s engineering division would supply four large air separation units for the production of gaseous oxygen and another two to produce high-purity oxygen to the ethylene glycol facilities in Jamnagar.

To treat the synthesis gas generated during this gasification process, Linde would also deliver two acid gas removal units.

Reliance is also building one of the world’s largest ethylene crackers taking advantage of refinery integration at Jamnagar. This project will be commissioned in H2-2016 and would nearly double the ethylene capacity to 3.3 mln tpa.

We remind that earlier this year RIL announced that it would invest over Rs 100,000 crore in expansion of its petrochemical capacities and adding value to its refining business. Besides, in October last year the company unveiled its plans to expand capacity at its refineries in the western state of Gujarat.

Reliance Industries is one of the world's largest producers of polymers. The company's polymer production in 2010-11 (polypropylene, polyethylene and polyvinyl chloride) made 4,094 kilo tonnes.
MRC

MOSCOW (MRC) - Imports of polycarbonate (PC) to Ukraine increased by 15% to 3,600 tonnes in January-October 2013 compared to the same period last year, according to MRC DataScope.
Imports of PC-granulate have been rising since January. The largest share of imports (87%) occurred for such European countries as Germany, Spain, Netherlands and Belgium.

Injection moulding grades accounted for 79% of the total imports. The major market players in the polycarbonate market in Ukraine were such converters as Eudjin Ltd, Spetztekhosnastka, Technology Klozhers, Graif Ukraine.

Radka Ukraine and Alpha-Plast were the largest traders of PC in Ukraine over the reported period. The largest importers of PC to Ukraine over the first ten months of the year were Sabic with a share of 32%, Bayer (30%), Dijmex Europe and Styron (each for 11%).

MRC

MOSCOW (MRC) -- Prices for North American polyvinyl chloride (PVC) continue to increase, following a brief drop. Price offers for US resin for CIS countries in the second half of November rose to the level of USD1,000/tonne CFR, according to ICIS-MRC Price Report.

The decrease in export prices of US PVC began in mid-September and by the end of October prices dropped to the year minimum - USD950-965/tonne CFR St Petersburg and CIF Odessa. But the price trend has changed in November, with offers for the second half of November heard in the range of USD985-1000/tonne CFR St Petersburg, and USD990-1010/tonne CIF Odessa, for K65 PVC.

Price offer for K70 PVC started from USD1010/tonne CFR on the back of reduced export quotas. Suppliers of North American PVC explained the the price rise by increasing demand from Asian markets, particularly China.

At the same time, there is no certainty that prices for December shipment will exceed USD1,000/tonne CFR.
MRC

MOSCOW (MRC) -- Ineos has opend one million tonne deep-sea ethylene terminal at Ineos Oxide, Zwijndrecht, Belgium, according to the company's statement.

The new deep-sea terminal, at the heart of the second largest petrochemical region in the world, is now fully operational.

Hans Casier, CEO Ineos Oxide says: "This is a major step for INEOS which will secure the long term viability of its business located at the Antwerp site and connected along side the ARG pipeline. The terminal allows us to access ethylene from world markets at competitive costs, which means we can continue to compete successfully on a global basis."

Capable of unloading shipments of ethylene from the world’s largest ethylene vessels, the terminal directly supplies the needs of both those INEOS ethylene derivative plants located directly at the Antwerp site and those which are connected along the ARG ethylene pipeline, which links Antwerp to Koln and the Ruhr industrial areas.

Ineos has a very large demand for ethylene, supplied substantially by its own production from several steam crackers across Europe. To balance the shortfall the company has traditionally bought ethylene from other companies that sit on the ARG pipeline. The new one million tonne deep sea terminal now presents an opportunity for INEOS to import competitively priced ethylene from around the world, thereby improving its flexibility.

Ineos Oxide, part of the INEOS Group of Companies, is a leading producer of ethylene oxide and ethylene oxide derivatives, propylene oxide and propylene oxide derivatives, plus a range of solvents and speciality chemicals, with production facilities in Antwerp Belgium, Koln Germany, Lavera France, Plaquemine Louisiana, Freeport Texas and Hull in the United Kingdom.

As MRC wrote previously, las year chemicals major Ineos signed an agreement to secure ethane from the US that it will use as a feedstock to operate its steam crackers in Europe. It agreed a long-term deal with Range Resources Corp. for the lifting of ethane from the Marcus Hook facility, located near Philadelphia, from 2015.

INEOS Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom. Ineos operates steam crackers in Grangemouth in the UK, Cologne in Germany, Lavera in France and Rafnes in Norway.
MRC