PC imports to Russia fell by 21%

MOSCOW (MRC) -- The overall imports of polycarbonate (PC) chips to the Russian domestic market fell in 2013 by 21% from the previous year and totalled 45,000 tonnes, according to MRC DataScope.

At the moment, production of injection moulding goods for automotive industry and in electrical engineering, is the main sector of PC consumption in the Russian market. Overall, about 33,000 tonnes of injection moulding PC grades were imported to Russia in 2013, which accounted for 73% of the total imports. It should be noted that European material was the most poplular in this sector. Sabic, with its share of 71%, occupied the leading position among foreign producers last year. Consequently, Lexan 103R was the most popular grade in the market in 2013. About 15,000 tonnes of this grade entered the Russian market in 2013, which was 45% of the total imported injection moulding grades. The overall imports of injection moulding PC chips fell in 2013 by 22% from the previous year.


The sector of extrusion PC chips is the second largest sector. It reached 4,300 tonnes last year, accounting for almost 10% of all supplies to the national market. Production of cellular PC sheets and profiles for their installation is the main target market of processing of this material. The most popular producers in this segment were also Sabic and Bayer, with shares of 52% and 33%, respectively. Bayer's Makrolon ET3117 was the most popular grade in 2013. 1,600 tonnes of this grade arrived in the market last year, which accounted for 19% of the total imports of extrusion grades in 2013. Thus, European PC was the most popular imported material in the extrusion sector, as well as, in the injection moulding one. Such converters as Plastik Alliance, Carboglass, SafPlast preferred to use this material in their production. Imports of extrusion PC grades to the Russian market fell last year by 27% from 2012. However, this market has been constantly growing. A substantial part of the demand was met by the domestic producer - Kazanorgsintez.


The segment of blow moulding PC accounted for the remaining 17% of imports and totalled 3,300 tonnes. Bottles blowing (over 10 liters) is the main target market for this material in Russia. Unlike in the previous sectors, Asian producers occupied the leading position in this segment: Samyang (31%) and Mitsubishi (23%). Samyang's Trirex 3026 BL can be called the most popular imported blow moulding grade in Russia. It accounted for 31% of this segment's imports or more than 1,000 tonne. Imports of blow moulding material dropped in 2013 by 2% from the year earier. It should be mentioned that Kazanorgsintez's operated at full capacity in 2013 and its output exceeded 65,000 tonnes, while imports decreased. The plant produced injection moulding and extrusion grades, which were divided between export and domestic supplies, depending on market demand.

To date, the segment of extrusion PC grades is the most interesting for Russia, because it is connected with a considerable number of domestic converters - producers of cellular polycarbonate. The segment of the PC sheets and profiles has been constantly expanding not only in Russia, but also in the CIS countries. Therefore, products from Russian material may well take its niche there and compete with European material due to its lower cost.

MRC

Imports of linear polyethylene in Russia grew by 9% in2013

MOSCOW (MRC) - Insufficient domestic production and stronger demand from film producers increases the dependence of the Russian marketfrom linear polyethylene (LLDPE) imports. Total imports of LLDPE to Russian grew by 9% to 209,000 tonnes in 2013, from 191,700 tonnes in 2012 (more than 23,000 tonnes of which were delivered through Belarus), according to MRC DataScope.

Tight supply from Nizhnekamskneftekhim and stronger demand from key consumption sector - film production were the main drivers for the imports growth. However, the dynamics of growth in LLDPE demand slowed in the Russian market in 2013.
Structure of imports by sector consumption in 2013 was as follows. Imports of film LLDPE rose to 184,800 tonnes in 2013, compared with 167,400 tonnes in 2012. Producers of stretch film continued to be the drivers of demand growth.

Imports of LLDPE for rotational moulding and paper lamination, on the contrary, decreased to 8,800 tonnes and 3,900 tonnes respectively in 2013, while in 2013 these figures were to 10,000 tonnes and 4,600 tonnes respectively.
Import of injection moulding LLDPE increased by almost one and a half to about 4,400 tonnes in 2013, from 3,000 tonnes in 2012. Total imports of LLDPE to in other sectors (cable extrusion, compounding, extrusion) increased to 7,100 tonnes in 2013, from 6,900 tonnes in 2012.

As reported previously, the demand for linear polyethylene in the Russian market has increased more than 10 times for the last 10 years - from 22,600 tonnes in 2004 to 236,000 tonnes in 2013.

MRC

Sadara selects Metso to supply valves for Al Jubail chemical complex

MOSCOW (MRC) -- Metso has received significant orders for its Neles and Jamesbury valves from Sadara Chemical Co., a joint venture between Saudi Aramco and Dow Chemical, as per Hydrocarbonprocessing.

The valves will be delivered for Sadara's fully integrated chemicals complex currently under construction in Al Jubail, Saudi Arabia.

Metso received these orders during the 2013 year, the company said in a news release on Friday.

Metso's delivery includes automated control and on/off valves, emergency shut-down valves, as well as ball and butterfly valves equipped with intelligent valve controllers Neles ND9000. Metso's valves will control process flow in several process areas in the complex, including the mixed feed cracker, downstream units and utilities.

The Neles metal seat as well as Jamesbury soft seat technologies provide dependable valve performance enabling reliable, safe and efficient plant operations in petrochemical industry applications. Neles ND9000 is a field-proven valve controller that guarantees end product quality in all operating conditions with its unique 3rd generation diagnostics and incomparable performance features.

We remind that, as MRC wrote previously, in earlly Junly 2013, Sadara Chemical Company announced financial close for the funding of main financing of approximately USD10.5 billion project. This marks the completion of project financing for Sadara, which is a joint venture between the Saudi Arabian Oil Company (Saudi Aramco) and the Dow Chemical Company. The main financing supplements the USD2 billion raised through a sukuk issuance in April, bringing the total Sadara project financing raised to approximately USD12.5 billion, the "largest project financing ever in the Middle East."

Sadara Chemical Company is a joint venture between Saudi Aramco and Dow Chemical. The Sadara complex, which will have 26 manufacturing facilities, is claimed to be the world's largest petrochemical facility ever built in a single phase and will manufacture more than three million tonnes of chemical and plastics products.
MRC

Solvay bids to acquire conductive polymer maker Plextronics

MOSCOW (MRC) -- Solvay SA has bid to acquire for USD32.6 mln Plextronics Inc., a printed electronics maker that filed for Chapter 11 protection from creditors on Jan. 16, as per Plastemart.

Brussels-based Solvay is part-owner of Pittsburgh-based Plextronics. Solvay invested USD15 mln in 2011 in Plextronics, which was a spin off of research done at Carnegie Mellon University, Pittsburgh. According to the bankruptcy court filing, an attempt was made by Solvay to buy Plextronics in 2010, but was unsuccessful on lack of approval from Solvay’s board.

Plextronics filed for Chapter 11 protection in US Bankruptcy Court in Wilmington, Del. The firm claimed assets of USD3 mln vs. USD33 mln in debt. Products developed by Plextronics included light emitting diodes and organic photovoltaic cells for use in flat-panel screen displays and other applications.

As MRC wrote previously, Solvay has recently announced that it has won two rare earth mixed oxides patent cases against China-based HySci (Tianjin) Specialty Materials Co., Ltd. Solvay was awarded 5.6 million RMB (EUR0.67 million) in damages and HySci was ordered to immediately stop the production and the sale of certain rare earth mixed oxides used in automotive catalysts.

Solvay is an international chemicals and plastics company. In 2011, Solvay acquired Rhodia for approximately EUR 3.4 billion. Rhodia is one of the three sectors of activities of Solvay. Rhodia is a world leader in the development and production of specialty chemicals, and partner of major players in the automotive, electronics, flavors and fragrances, health, personal and home care markets, consumer goods and industrial markets.
MRC

Shell eyes North Sea asset sales

MOSCOW (MRC) -- Shell is looking to sell off some of its North Sea field interests as it targets asset divestments totalling USD15 billion over the next two years, according to Upstreamonline.

It follows the recent appointment of new chief executive Ben van Beurden who is expected to take a more investor-friendly approach than his predecessor Peter Voser, likely to involve generating cash from asset sales as Shell seeks to boost returns for shareholders while carrying out major investments.

The Anglo-Dutch supermajor said in October that it would step up divestments "significantly" in 2014 and 2015 to keep cash flowing in, having made record capital expenditure last year of USD45 billion that was USD5 billion over guidance.

A source close to the company told the Financial Times it would divest mature upstream assets in the North Sea and elsewhere, more of its refining portfolio and some projects that have not yet reached final investment decisions and "make sense for others to develop".

Some analysts have suggested the supermajor could go even further, with JP Morgan Cazenove analyst Fred Lucas stating in a note the company could divest as much as USD30 billion in non-core assets.

Shell has insisted that it intends to meet its spending target of USD130 billion between 2012 and 2015, despite last year’s record outlay, but this is dependent on making asset disposals.

Major oil companies such as Shell and Statoil are facing increasing investor pressure to hold down spending as costs rise and prospects for oil prices wane.

As MRC reported earlier, in 2013, Ukraine took its first major step away from dependency on Russian gas imports when it signed a USD10 billion shale gas deal with Shell. The 50-year production sharing agreement marked the biggest contract yet to tap shale gas in Europe and the largest foreign investment in the former Soviet republic.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC