Demand for EPS subsiding in Ukraine

MOSCOW (MRC) -- Demand for expandable polystyrene (EPS) had slumped in Ukraine by mid-December on the back of a seasonal drop in activity in the construction sector, according to MRC Price report.

Many traders and major EPS buyers reported falling sales of the material. After high November sales, demand had subsided substantially by the second week of December, market sources said. At the same time, market players' decreased activity was accompanied by traders' lower spot prices.

Offer prices of Russian EPS dropped by UAH400-500/tonne following SIBUR-Khimprom's lower prices for December and were heard at UAH21,900-22,200/tonne CPT Kiev, including VAT. Prices for European material were higher and were heard in the range of UAH22,800-24,000/tonne CPT Kiev, including VAT (depending on the brand). There were virtually no purchases of these grades in December because of a seasonal slowdown and higher prices.

Market players also said demand would almost totally subside in a week. The resumption of sales should be expected in the second half of January, after the New Year holidays, but EPS sales will be low until late February.

As reported earlier, the share of Russian EPS in the total consumption of the material in Ukraine increased significantly, despite the overall cuts in shipments to Ukraine. EPS imports from Russia grew in January-November 2013 by 7,000 tonnes year on year to 20,500 tonnes, thereby substantially displacing the Chinese and European suppliers.
MRC

HDPE imports to Ukraine increased by 7% in the first eleven months of the year

MOSCOW (MRC) - Imports of high density polyethylene (HDPE) to Ukraine increased by 7% to 126,000 tonnes in the first eleven months of this year, compared with the same period last year, according to MRC DataScope.

HDPE imports to Ukraine rose to 10,600 tonnes in November, following the October decline at 8,300 tonnes. Structure of Ukraine's imports of HDPE by sector was as follows.

Karpatneftekhim (LUKOIL group) resumed HDPE production in September, which resulted in the reduction of HDPE imports in September and October. However, Ukrainian producer shut its HDPE production in November, and as a consequence, imports began to grow again.

November imports of film HDPE to Ukraine increased to 4,800 tonnes, compared with 2,900 tonnes in October. Total imports of film HDPE to Ukraine was 55,300 tonnes in the first eleven months of the year, up by 20% year on year.

Ukraine imports of pipe HDPE (excluding imports of Russian bimodal PE) fell almost twofold to 1,100 tonnes in November, compared with the October's level. Total imports of pipe HDPE to Ukraine reduced to 21,600 tonnes in the first eleven months of the year, compared with 25,500 tonnes year on year on the back of a weaker demand for plastic pipes.

Imports of blow moulding and injection moulding HDPE to Ukraine were 2,800 tonnes and 1,500 tonnes in November, compared with October's level of 1,600 tonnes and 1,700 tonnes, respectively. Total imports of blow moulding and injection moulding HDPE to Ukraine increased to 23,800 tonnes and 17,700 tonnes in the first eleven months of 2013, up 12% and 8% from the same period in 2012.

Total imports of HDPE to other consumption sectors declined to 7,700 tonnes in the first eleven months of the year, compared with 8,400 tonnes year on year.


MRC

Ufaorgsintez raises LDPE prices by Rb1,000/tonne

MOSCOW (MRC) -- Ufaorgsintez (part of Bashneft Group), Russia's third largest producer of low density polyethylene (LDPE), has announced an increase in contract prices from 16 December 2013, according to ICIS-MRC Price report.

Thus, the company will increase its contract LDPE prices by Rb1,000/tonne from the level as of 1 December 2013. Higher contract prices were caused by stronger demand for polyethylene (PE). A company source said, some of January LDPE quantities had already been contracted.

OAO Ufaorgsintez, organized in 1956, produces organic synthesis products in Russia and Europe. Its products include ethylene, propylene, ethanol, cumol, ethyl benzol, phenol, acetone, copolymer rubber, polyethylene (PE) and polypropylene (PP). The plant's annual low density polyethylene (LDPE) capacity is about 90,000 tonnes. The overall plant's PE output totalled 75,600 tonnes over the first ten months of 2013. The company exports its products to Belarus, Kazakhstan, Finland, Germany, France, and Brazil.
MRC

Russia increased imports of Chinese PET

MOSCOW (MRC) - Imports of Chinese polyethylene terephthalate (PET) to Russia increased by 34% (22,600 tonnes) in the first eleven months of the year, compared with the same period in 2012, despite a general decline in imports of PET to Russia, according to MRC ScanPlast.

Total imports of Chinese PET to Russia reached 88,000 tonnes over the reported period. At the same time total imports of PET chips to Russia fell by 7.7% (13,000 tonnes) to 156,500 tonnes in the first eleven months of the year.
Chinese producers managed to take the advantage in imports because of lower price. Throughout the year, price of Chinese PET was on average down by USD30-40/tonnes from Korean material.

The increase in imports of Chinese PET accompanied by displacing of other importers' share. Korean producers have lost their share in the Ryssian market most of all.

Imports of Korean PET to Russia decreased by 25% (15,000 tonnes) to 44,000 tonnes. Russia's imports of PET was almost 10,000 tonnes in November, with 40% occurred for Chinese material.

MRC

Qapco plans new ethylene expansion project

MOSCOW (MRC) -- Qatar Petrochemical Company (Qapco) has announced plans to build a new plant at Mesaieed Industrial City at a cost of QR1.2 bln (USD330 mln) to produce 400,000 tpa of ethylene by 2016, as per Plastemart.

With this Qapco’s installed ethylene production capacity will be hiked from the existing 800,000 tpa to approximately 1.2 mln tpa.

In its final stages of launch, the plant is to start operating within next three years, and will be a joint venture of Qapco, Qatar Petroleum and Total.

As MRC reported previously, in late 2012, Qapco inaugurated the third LDPE plant at Mesaieed Industrial City. The new facility will produce prime high pressure grade LDPE than existing QAPCO facilities, thus positioning the company as a global leader in LDPE production.

Qatar Petrochemical Company (QAPCO) is a Qatar-based company established in 1974 and is a joint venture between Industries Qatar (80%) and Total Petrochemicals (20%). The company is currently one of the largest producers of low density polyethylene (LDPE) in the region. In addition to LDPE, QAPCO also produces linear low density polyethylene (LLDPE), ethylene, and sulfur, which it sells to over 4500 industry customers in 145 countries through its extensive global marketing network.
MRC