December Russian PVC prices to go down by Rb500-1,000/tonne

MOSCOW (MRC) -- Russian producers were forced to reduce further contract prices of polyvinyl chloride (PVC) for the domestic market from early December. Prices dropped by an average of Rb500-1,000/tonne from November, according to ICIS-MRC Price report.

Negotiations on December contract prices of Russian PVC began last week. Russian producers had to reduce contract prices on the back of seasonal weaker demand and lower export prices in the US for shipments in November-December.

Deals for December shipments of Russian PVC were negotiated in the range Rb44,000-45,500/tonne CPT Moscow, including VAT, for PVC with K=64/67. Some market participants said they managed to achieve prices below Rb44,000/tonne, CPT Moscow, including VAT. Contracts for PVC with K=70 were negotiated in the range Rb45,500-47,000/tonne CPT Moscow, including VAT.

Demand for finished products from PVC dropped шт 2013 by 5-10% year on year. Many converters reported a major drop in sales of finished products in November after a seasonal peak in September-October (peak demand and peak PVC prices in 2013).

Russian PVC converters had divided into two groups by December. The first group includes companies that intend to enter 2014 with minimum stocks of PVC and finished products and, consequently, do not plan major PVC procument.

The second group consists of companies that intend to preserve large PVC purchases, despite weaker demand for finished products, thus achieving a bottom price level. To date, the number of such companies is scarce.

In addition, a number of companies that plan to shut down their production for long maintenance in late December until February has increased significantly this year.
MRC

SABIC opens new India technology hub

MOSCOW (MRC) -- Saudi Arabia-based SABIC on Friday opened its new USD100 million technology center in Bengaluru, India, as per Hydrocarbonprocessing.

The technology center will house 300 scientists, whose roles are to carry out research into new platforms for next-generation materials across industry sectors such as construction, clean energy, electronics, medical devices and transportation.

"Other initatives include designing greener building materials to reduce environmental footprints and developing eco-friendly products in response to global megatrends and needs," the company said in a statement.

SABIC has 17 technology and innovations centers around the globe, with the India location the newest.

"Saudi Arabia and India have a long history of deep relationships," said Prince Saud bin Abdullah bin Thenayan Al-Saud, chairman of SABIC.

"We believe in the future of India - a rapidly developing nation where partnership and inclusive development is a priority," he added. "India is an important market for us in Asia, which is why our investment here is significant."

As MRC reported previously, this Autumn, the polymershapes division of Sabic (Riyadh/Saudi Arabia) opened a new US branch in Austin, Texas, to give local customers better access to its plastics and associated products.

Sabic is ranked among the world's largest petrochemicals manufacturers. It is the largest public company in Saudi Arabia. The comany manufactures chemicals and intermediates, industrial polymers, fertilizers and metals. It is currently the second largest global ethylene glycol producer, the third largest polyethylene manufacturer, the fourth largest polyolefins manufacturer and the fourth largest polypropylene manufacturer. Among its products are propylene, paraxylene, styrene, vinyl chloride monomer.
MRC

Kuraray to Acquire DuPont Glass Laminating Solutions/Vinyls

MOSCOW (MRC) -- Kuraray and DuPont, the biggest US chemical maker by market value, have signed a definitive agreement for DuPont to sell Glass Laminating Solutions/Vinyls (GLS/Vinyls), a part of DuPont Packaging & Industrial Polymers, to Kuraray for USD543 million, plus the value of the inventories, according to DuPont's press release.

The sale is expected to close during the first half of 2014 pending customary regulatory approvals.

GLS/Vinyls is a leading supplier of polyvinyl butyral and ionomer sheets for safety glass, and vinyl acetate monomer and polyvinyl alcohol (PVA) products used in a variety of architectural, automotive and industrial applications. GLS/Vinyls delivered full-year 2012 net sales of more than USD500 million. It has six manufacturing sites in the US, Europe and Asia that serve more than 350 customers worldwide.

Keiji Murakami, president of Kuraray’s Vinyl Acetate Company said, "Kuraray was one of the first to successfully industrialize and globally market PVA. As a pioneer of Vinyl Acetate related business, Kuraray has a global presence in the business area of PVA resin, PVB resin and film, PVA film that is used for LCD and detergent unit packing, EVOH (ethylene vinyl alcohol) resin (trademarked as EVAL) used for food packaging and gasoline tanks, and PVA fiber (vinylon) that is used for a substitute of asbestos and a reinforcing material of cement.

"We will benefit from DuPont’s talented global GLS/Vinyls team and their technology, R&D, manufacturing and sales network that has supported it over the years. I am convinced these areas of expertise will allow us to continue to expand our Vinyl Acetate business going forward, said Murakami.

"GLS/Vinyls will have a good home with Kuraray. That company’s focus on PVA as a central part of its core Vinyl Acetate business, its strong global market position and its capacity to invest in GLS/Vinyls all make this a good fit," said William J. Harvey, president, DuPont Packaging & Industrial Polymers.

As MRC reported this summer, the company is considering a spinoff or sale of its performance chemicals unit, which makes titanium dioxide pigment and Teflon coatings, to focus on less cyclical products and boost shareholder returns.

DuPont is an American chemical company that was founded in July 1802. It is the world's ninth largest chemical company based on revenue in 2012. DuPont developed many polymers such as Vespel, neoprene, nylon, Corian, Teflon, Mylar, Kevlar, Zemdrain, M5 fiber, Nomex, Tyvek, Sorona and Lycra. DuPont developed Freon (chlorofluorocarbons) for the refrigerant industry, and later more environmentally friendly refrigerants. It developed synthetic pigments and paints including ChromaFlair.
MRC

Oriental Energy to start up new PP plant next year

MOSCOW (MRC) -- Oriental Energy is in plans to start a new polypropylene (PP) plant, reported Apic-online.

A Polymerupdate source in China informed that the plant is likely to be started in mid 2014.

Located in Zhangjiagang, China, the plant will have a production capacity of 400,000 mt/year.

As MRC informed previously, Zhenhai Refining & Chemical Co (ZRCC) is in plans to shut a polypropylene (PP) plant for maintenance turnaround in May 2014. The duration of the shutdown could not be ascertained. Located in Ningbo, Zhejiang province in China, the plant has a production capacity of 250,000 mt/year.

Another Chinese petrochemical producer - Shaoxing Sanyuan Petrochemical shut its PP plant for maintenance turnaround on November 20, 2013. It is likely to remain off-stream for around one month. Located in Shaoxing, Zhejiang province, the plant has a production capacity of 200,000 mt/year.
MRC

Pemex nets Spanish yard stake

MOSCOW (MRC) -- Pemex has firmed up a deal to acquire a majority stake in a shipyard in Spainish north-western Galicia region, said Upstreamonline.

The state-run oil giant has taken a 51% slice in Barreras shipyard, confirming reports earlier this year that the deal was imminent. Mexico City-headquartered Pemex said the deal was aimed at reviving the Spanish shipbuilding industry as well as servicing the Mexican oil industry.

Spanish daily El Pais reported before the summer that Pemex was considering signing a letter of intent to take the 51% stake in Barreras. Pemex said last September its PMI unit had signed two contracts for flotels, one to be built at the Hijos de J Barreras shipyard in Vigo and state-owned yard Navantia in north-western Spain. The reported value at the time was USD392 million.

The company added last year that it also planned to contract 14 tugs, seven to be built in Galicia and seven in Mexican yards. The plans are part of a broader programme of at least USD800 million for the company to revamp its fleet.

On 15 April, Mexican president Enrique Pena Nieto and Galician government president Alberto Nunez Feijoo met to "strengthen a strategic alliance" between the two entities with an eye to investment of up to USD240 million in the state oil company's fleet, according to Galicia.

The arrangement could help lead to the contracting of new vessels, Conde said at the time.

Founded in 1892, the Barreras shipyard is mainly concerned with the construction of offshore vessels, ferries and roll on-roll off vessels.

As MRC wrote before, Pemex Petroquimica and Mexichem entered into a joint venture, which will enable greater competitiveness of the domestic petrochemical industry in the global market through the integration of a new company, which will create value to the chlorine-vinyl Chain. The joint venture includes a cash investment and assets contribution up to the amount of USD518 million, of which PEMEX will participate with USD228 million in assets while Mexichem will contribute with both, USD90 million in assets and USD200 million in cash in order to modernize the Pajaritos complex.

Pemex, Mexican Petroleum, is a Mexican state-owned petroleum company. Pemex has a total asset worth of USD415.75 billion, and is the world's second largest non-publicly listed company by total market value, and Latin America's second largest enterprise by annual revenue as of 2009. Company produces such polymers, as polyethylene (PE), polypropylene (PP), polystyrene (PS).
MRC