October PS imports to Uraine dropped by 8%

MOSCOW (MRC) -- October polystyrene (PS) imports to the Ukrainian domestic market fell by 8% from September to 5,400 tonnes, according to MRC DataScope.

Decreased imports was caused by reduced consumption in the general purpose polystyrene (GPPS) and high impact polystyrene (HIPS) sectors, while in the expandable polystyrene (EPS) segment, purchases showed an upward trend.

EPS import to Ukraine grew by 10% in October to 2,550 tonnes on feedstock shortages and vivid seasonal activity. High consumer activity remained in the market in November, the shortage of material became more accute because of an outage at Stirol.

At the same time, GPPS and HIPS imports dropped by a quarter in October to 2,400 tonnes.

Exports of Ukrainian EPS and GPPS also fell down in October due to stronger demand and tight supply in the domestic market. A sharp drop in exports from Ukraine are expected in November, which will be caused by the absence of PS production in Ukraine.

As reported earlier, Stirol (Gorlovka) shut down its PS production in late October, 2013, because of a shortage of styrene monomer (SM).

MRC

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