JSR announces termination of the capacity rights agreement of S-SBR

MOSCOW (MRC) -- Japan's JSR Corporation has announced that Styron Europe GmbH and JSR have reached an agreement to terminate the capacity rights agreement for the production of solution styrene butadiene rubber (S-SBR), reported JSR on its site.

This termination is effective as of March 31, 2014 and expected to have a minimal impact on the consolidated business results of JSR, which was reported on January 27, 2014.

In 2007, JSR obtained the capacity rights to produce 30, 000 tons of S-SBR from Styron Europe GmbH (formerly Dow Europe) and started to supply JSR S-SBR including the products made in Europe to European tire market.

Last November, JSR reached an agreement with MOL Hungarian Oil and Gas Public Limited Company (MOL) to establish a joint venture in Hungary to manufacture S-SBR.

Considering the circumstances, JSR has concluded that it is the most appropriate course of action to consolidate production capacity in Europe to the new joint venture to establish an optimum supply system for customers in Europe.

As MRC wrote previously, JSR Corp. and MOL have recently received European Commission approval to form Vierium Investment, a new joint venture company to produce 60,000 t/y of solution polymerized styrene butadiene rubber (S-SBR) in Tiszaujvaros, Hungary. The venture, owned 51% by JSR and 49% by MOL, will utilize MOL's existing plant infrastructures and JSR's S-SBR production technologies.
MRC

MOSCOW (MRC) - Consumption of the Russian market of polycarbonate (PC) increased by 9,700 tonnes in January 2014, up 40% compared to December 2013, according to MRC ScanPlast.

Russia's PC consumption in January 2014 was 9,700 tonnes, up 34% from January 2013. Exports volumes of Russian PC in January 2014 was 174 tonnes, which is 83% below the level in December 2013. Russia's PC imports increased to 4,400 tonnes in January 2014 up by 72% from December 2013.

PC production in Russia was 6,200 tonnes in January 2014, down 6% from December 2013. Stronger demand for PC in the Russian market stimulated the imports growth and decrease in exports.

Demand for extrusion blends PC has increased since late January. Demand for injection moulding PC grades remains stable. Russian converters prefer to buy European PC for injection moulding and extrusion.

Because of decrease in PC price in Europe, the devaluation of the rouble against the euro did not affect the level of domestic prices. Therefore, customers were not affected by price pressure and current demand reflects the real needs of the market.

Demand for blow moulding PC weakened because of rise in price, driven the dollar rate growth and higher export quotations from Asian producers. Almost all feedstock for the processing technology is imported into Russia from Asia.
The biggest share in the Russian PC market occurs for extrusion sector with more than a half from the total market and it continues to grow. The share of extrusion PC grades in January imports was close to 75%, reaching 3,300 tonnes.

MRC

MOSCOW (MRC) -- Russian producers raised spot prices of polyethylene terephthalate (PET) this week by Rb1,000/tonne, following the weakening of the rouble against the dollar, according to ICIS-MRC Price report.

Russian plants announced price increases for the domestic market, following the weakening of the rouble and a consequent rise in imported PET prices. The plants' offer prices were heard in the range of Rb65,000-66,500/tonne CPT Moscow, including VAT. Small deals took place in February at Rb68,000/tonne CPT Moscow, including VAT, said a PET producer. However, such sales were scarce and, generally, did not affect the average PET price in the market.

Converters said purchases were virtually absent in the spot market in February. Sources said processing plants use imported material and contract quantities for their operations at the moment. In its turn, buying activity is also very low in the PET preforms market.

As reported previously, January PET imports into Russia surged by 68% from December 2013 and totalled 25,500 tonnes, which is abnormally high for the imported PET market in this period of the year.
MRC

MOSCOW (MRC) -- Buying activity in the Russian polyvinyl chloride (PVC) market fell noticeably in late February. Many local converters completed all their deals and anticipate March negotiations of contract prices, following another surge in the dollar exchange rate and higher prices in foreign markets, according to ICIS-MRC Price report.

After a disastrous January, demand for suspension polyvinyl chloride (SPVC) increased slightly in February in the Russian market. Many local converters were actively replenishing their inventories in early February, after long January holidays. Many companies have completed all their deals for February PVC shipements by late February and cautiously await March negotiations of contract prices from Russian producers, which will begin next week. The situation is aggravated by limited working capital of the most market participants and the next surge in the dollar exchange rate amid higher PVC prices in the foreign markets.

The dollar exchange rate against the rouble jumped to Rb35.6 in the second half of the week. North American PVC suppliers announced a further price increase for March shipments. Thus, purchase prices of North American resin for Russian companies will be in the range of Rb51,000-53,000/tonne CPT Moscow, including VAT, given new PVC prices in the US and the dollar exchange rate. Chinese producers also do not rule out the possibility of price rises in March. But, even given the current prices and the dollar exchange rate, prices of Chinese acetylene are at about Rb49,000/tonne CPT Moscow, including VAT.

Such a sharp price hike of imported material and an anticipated increase in Russian PVC prices will be a major endurance test for many local converters. Demand for finished products was very low because of seasonal factors, resulting in converters' lower cash flows, which could not even cover the February PVC purchasing.

Negotiations over Russian PVC contract prices will begin next Monday, and local converters hope prices not to rise as sharply as those of imported material. Russian producers tried to raise contract prices by more than Rb3,000/tonne in February, but converters managed to limit the price increase (deals for February shipments were done in the range of Rb44,000-47,600/tonne CPT Moscow, including VAT, for K=64/67).
MRC

MOSCOW (MRC) -- Microspec, the market leader in medical tubing, has earned a global reputation for extruding the most complex tubing in the industry. The company partnered with global styrenics leader Styrolution to replace PVC for its highly flexible multi-lumen tubing which makes it possible to administer different medications from one access point, as per Styrolution's press release.

The Styrolution solution offers better clarity than PVC, low drug absorption and unique processability, according to the statement.

Thus, Microspec selects Styrolution for its multi-lumen tubes: since lumens vary in shape, number, symmetry, and diameter, Microspec required an alternative material to PVC with unique processing properties to create the intricate tube structure. It was also important for the company to collaborate with a material provider that understand the strict regulatory environment for the healthcare and diagnostics (HD) industry and offer long-term recipes for its products. For this reason, Microspec turned to Styrolution for its state-of-the-art styrene butadiene block copolymers, Styroflex and Styrolux, and Styrolution's HD Service Package.

Styroflex and Styrolux offer excellent alternative to PVC: Microspec selected these products because of their excellent processability and low drug absorption. The high processability enables the production of a more complex lumen structure to provide optional tube stabilization by inserting guide wires or rigid tubes. Styroflex and Styrolux also deliver other advantages for medical applications, such as a low yellowness index, better clarity than PVC, increased run rates, and elimination of plasticizer migration.

As MRC informed previously, aiming to strengthen its customer-centric innovation and drive growth, Styrolution has recently announced a new organizational unit: Global Focus Industries and R&D. The group's R&D arm will further emphasize application-driven collaborative innovation with customers. The formation of the new unit aligns with the company's growth strategy, which calls for three ‘shifts' intended to put greater focus on three areas: higher-growth industries, ABS Standard and styrenic specialties, and emerging markets.

Styroflex and Styrolux - versatile styrenics: Styroflex is a styrene-butadiene block copolymer (SBC) with the properties of a thermoplastic elastomer (S-TPE), suitable for extrusion and injection molding. Styrolux resins are a range of thermoplastic styrene-butadiene copolymers (SBC).

The Styrolution Group GmbH is a global provider of styrenics , headquartered in Frankfurt am Main. The company is a joint venture between BASF (50%) and INEOS (50%), were merged into the main styrene operations of the two partners. Its main focus is on the production of monomer, polystyrene, styrenic specialties, and ABS. The company offers styrene plastics for a variety of everyday products from different industries, such as automotive, electronics, construction, household, leisure, packaging, medicine and health.
MRC