Ufaorgsintez reduces PE and PP contract prices

MOSCOW (MRC) -- Ufaorgsintez (part of Bashneft Group) has announced a reduction in contract prices of low density polyethylene (LDPE ) and polypropylene (PP) from 15 November, 2013, according to ICIS-MRC Price report.

The company reduced contract prices of polyolefins by Rb400-1,300/tonne from early November. Lower LDPE and PP prices were caused by a seasonal decline in demand.

The contract price for shrinkable film LDPE 153 dropped by Rb400/tonne, other polyethylene (PE) contract prices remained intact.

Contract prices for homopolymer of propylene (homopolymer PP) fell by Rb600-1,300/tonne from early November, while contract prices for copolymers of propylene (PP-impact and PP-random) remained steady.

Ufaorgsintez's annual PP production capacity is 100,000 tonnes, the plants annual LDPE capacity is about 90,000 tonnes. The overall PP and LDPE output in the first nine months of 2013 totalled 87,000 tonnes and 68,800 tonnes, respectively.
MRC

MOSCOW (MRC) - Imports of polypropylene (PP) to Ukraine increased by 4% in October, compared with the September level.
The reduction in the supply of Russian and European PP was offset by significant growth in imports from the Middle East, according to MRC DataScope.

November PP imports to Ukraine has increased to 11,600 tonnes, compared with 11,200 tonnes in September. The growth of imports was seen in the markets of homopolymer PP and stat-copolymer of propylene (PP-random). Serious increase the supply of polypropylene from Saudi Arabia offset the decline in the supply of polymer from other regions.

Structure of imports of polypropylene looked as follows. External supply of homopolymer PP in October rose to 8,500 tonnes from 8,200 tonnes in the previous month. Only Saudi producers increased their PP imports to October to Ukraine (3,400 tonne in October, from 2,600 tonnes in September), while imports from other countries, on the contrary, fell. Total PP imports to Ukraine was 84,900 tonnes in the first ten months of the year, compared with 62,800 tonnes year on year.

Imports of block copolymers of propylene (PP-block) last month fell by 5% compared with September to 1,500 tonnes. The demand in the sector of injection moulding and pressure pipes has weakened. Total imports of PP-block fell to 13,700 tonnes in the first ten moths of the year, down by 15% year on year.
Imports of PP-random grew by 12% in October, from the September's level. The main increase occurred for the supply of pressure pipes and BOPP films. Total imports of stat-copolymers of propylene to Ukraine exceeded 10,000 tonnes, from 7,800 tonnes year on year.

Imports of other polymers of propylene in October remained at the level of September and exceeded 300 tonnes. Total imports of PP to Ukraine was more than 112,000 tonnes in the first ten months of the year, up 23% year on year.

MRC

MOSCOW (MRC) -- Brazil-based construction company Odebrecht plans to build an ethane cracker and three polyethylene (PE) plants as part of a new project in West Virginia,, reported Hydrocarbonprocessing with reference to the state's governor's statement.

The complex, named the Ascent - Appalachian Shale Cracker Enterprise, would include the ethane cracker, three polyethylene plants, and associated infrastructure for water treatment and energy co-generation.

A purchase option for the anticipated project site in Parkersburg, West Virginia, has already been secured, according to state officials.

"Although we realize much work remains to be done, this announcement of a potential project is tremendous news for our state and our region," said West Virginia Gov. Earl Ray Tomblin, who called it a "game changer" for his state.

The governor did not disclose a timeline or capacity details.

The feasibility of the project, according to the governor's office, will depend on several variables -- including the contracting of long-term ethane supply, financing, regulatory approvals, and appropriate governmental support.

Braskem would be responsible for petrochemical-related activities as well as the commercialization of the polyethylene after the investment is completed.

"As the United States’ leader in polypropylene production and with a significant footprint already in the region, we are excited about today’s announcement," said Fernando Musa, CEO of Braskem America. "Should Ascent materialize, we look forward to serving our clients in the polyethylene market."

The state of West Virginia is close in proximity to both the Marcellus and Utica shale plays, giving it easy access to natural gas-based feedstocks.

As MRC wrote previously, Styrolution, the global leader in styrenics, and Braskem, the largest producer of thermoplastic resins in America and a global leader in biopolymers, has recently announced the signing of a memorandum of understanding (MOU) to investigate the formation of a joint venture in Brazil. The proposed 100,000 tonne plant would supply specialty styrenics, acrylonitrile butadiene styrene (ABS) and styrene acrylonitrile (SAN) copolymers, to customers in Brazil and throughout South America.

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) -- The US Department of Energy (DOE) has given the green light for additional exports of liquefied natural gas by Freeport LNG in south Texas, said Upstreamonline.

The company received conditional approval to export 0.4 billion cubic feet per day to countries that do not have free trade agreements with the US. That will give Freeport, which was already cleared to export 1.4 Bcfpd, a total capacity of 1.8 Bcfpd at its facility at Quintana Island, Texas.

The DOE said the review was "extensive" and "careful" and considered economic, energy security and environmental factors as well as public comments for and against. The agency however "determined that additional volume of exports from the terminal at a rate of up to 0.4 Bcf/d for a period of 20 years was not inconsistent with the public interest."

The expansion to Freeport marks the fifth such approval for the DOE, which cleared the Cove Point terminal in Maryland in September. Nearly two dozen export proposals have awaited consideration by multiple regulatory agencies that must review them.

The DOE said it would continue to consider the projects on a case-by-case basis. Natural-gas exports remain controversial in the US, with opponents arguing that sales abroad will drive up domestic prices for manufacturing and consumers.

Supporters contend LNG exports will have minimal impact on pricing and conversely will provide companies an incentive to increase output in areas with stagnant production.

The first LNG project to gain approval, a Louisiana terminal by Cheniere Energy, is about halfway complete and is due to be operational by late 2015.

As MRC wrote before, officials at BASF’s Freeport, Texas, site announced that the site will soon begin construction of a new, 160,000 ton per year ammonium sulfate crystallizer system at its caprolactam plant. This is a joint project with American Plant Food Corporation, Galena, Texas, a customer of BASF.
MRC

MOSCOW (MRC) -- Polymer demand growth in Europe for 2013 is expected to be static compared with 2012, according to Applied Market Information Ltd., said Plastemart.

AMI calculates that the market for thermoplastics in Europe is currently 36.5 mln tons, a volume that is still nearly 4 mln tons less than the peak it hit in 2007. Although during 2010 and into 2011 the industry made a modest recovery from the devastating effects of the global downturn of 2008 and 2009, by the last quarter of 2011 the recovery was beginning to run out of steam in the face of the looming eurozone crisis. Although the drop in demand over 2012 and 2013 has been far less severe than in 2008-2009 - polymer producers and processors alike have been more savvy about managing their inventories and have not got caught out as they did in 2008 - the decline in government spending, manufacturing and consumer confidence still resulted in an overall contraction of polymer demand of just over 1% in 2012.

Central Europe also continues to show positive growth, even if some of the smaller countries remain vulnerable to external shocks. Poland is the only country in Europe which has not technically gone into recession since 2007. Although polymer demand growth has weakened, it is still managing to show some positive trends for appliance manufacturing and consumer packaging, even though automotive production in 2012 contracted substantially.

PET bottles for the packaging of alcoholic beverages replacing glass bottles; barrier sheet and multilayer rigid and flexible constructions replacing glass and tin cans; plastic one piece closures replacing two-piece closures and metal tops. While markets are expected to return to growth next year, AMI acknowledges that the effects will be patchy and there will continue to be winners and losers across the European plastics industry. The countries of Southern Europe will continue to seeing shrinking demand as their economies structurally readjust, while Germany and northern European markets (Benelux, UK, Nordic markets) are considered to be more economically sound, which should help to drive growth at least in line with GDP. Central European countries are also still expected to show good growth, driven by ongoing investments in car production and electrical goods manufacturing although the success of their plastics industry will be dependent on growth continuing in the West.

However, volume growth will continue to be offset by trends in lightweighting and downgauging meaning that polymer demand growth is unlikely to advance beyond GDP growth rates. As a result it is likely to be 2020 or beyond before the industry see demand back at its 2007 level again.

As MRC wrote before, in Europe, toiletries and cosmetics sectors are the largest consumers of polymers when comes to non-beverage applications, which account for 60% of total caps and closure industry polymer demand in Europe.

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