Asia naphtha crackers run high on firm PE margin

(ICIS) -- Most naphtha crackers in Asia, with downstream derivatives, continue to operate at near full capacity or higher, thanks to a firm integrated margin, but sentiment may turn bearish in the face of an ethylene price slump, traders said on Tuesday.

The integrated polyethylene (PE) margin held firm at $235/tonne (┬169/tonne) in the week ended 5 November, ICIS data showed.

On the other hand, the ethylene or steam cracker margin plummeted to $34/tonne NE (northeast) Asia in the same period, versus $72/tonne the previous week and $252/tonne in September, the data showed.

As a rule of thumb, cracking operators may enjoy full cost recovery if the spread between naphtha and ethylene hovers at a minimum of $250/tonne, traders said.

Ethylene prices fell to $980-1,000/tonne CFR (cost & freight) NE Asia last week, against month-ago levels of $1,110-1,150/tonne due to an armada of supply from the Middle East, ICIS data showed.

Regional integrated naphtha crackers are running at high rates because of a healthy polymers market, adding to the flood of ethylene supply.

MRC

(European Plastics News) -- Sita, the waste company owned by France-based Suez Environnement, says it will build 10 plants across the UK to convert end of life plastic into diesel fuel. The company will commission the first plant in London by the end of 2011.

Each plant - Sita is aiming for 10 in total - will convert 6,000 tonnes of mixed waste plastic per year to produce four million litres of diesel. The company will build two to three conversion plants per year, depending on planning.

The fuel will primarily be used by Sita vehicles as well as bulk transport companies such as lorry firms.

MRC

(Plastics News) -- Plastic Technologies Inc. believes that its new breakthrough grip handle technology for containers will give consumer product goods companies the opportunity to reduce packaging weight by as much as 25 percent.

⌠It is a new PET bottle that provides better market shelf impact for the brand owner, said Ron Puvak, director of business development and marketing for PTI, based in Holland, Ohio. ⌠Our objective was to create a more consumer-friendly package. It has a great grip and pour feature compared to mixed materials packages that are on the market and it allows consumer to pour liquids easily from multi-serve containers.

PTI said the process used to make the Deep Grip bottles ≈ injection stretch blow molding (ISBM) ≈ offers several benefits compared to the extrusion blow molding process that is typically used to produce handled bottles.

Among the benefits from the ISBM process, according to PTI, are potential weight reductions of 20-25 percent, higher output of 1,200 bottles per cavity per hour, a smaller equipment footprint, and better drop and creep resistance.

MRC

(JCN Newswire) -- Teijin Limited announced that it will enter the high-performance polyethylene (HP-PE) market by establishing its first production facility in Emmen, the Netherlands, aiming to start commercial production in the second half of 2011.

Teijin plans to grow its HP-PE business quickly through innovation and market cultivation, targeting a global market share of 15% to 20% by 2015.

HP-PE, which generally comes in the form of fibers or tapes, is produced with ultra-high-molecular-weight polyethylene polymers. Being highly resistant to impact, cutting, wear and chemicals while offering outstanding toughness and strength, HP-PE has a wide range of applications, including reinforced plastics, protective materials, ropes, nets and medical materials.

By adding HP-PE to its product portfolio the Teijin Group will further pursue a position as a world leader in ultra-high-performance materials.

Based in Tokyo and Osaka, Japan, Teijin is a global technology-driven group operating in eight main fields: aramid fibers, carbon fibers, polyester fibers, plastics, films, medical & pharmaceuticals, fiber products marketing and IT businesses. The group had consolidated sales of USD 8.5 billion in fiscal 2009 and employs 18,778 people worldwide, with 156 companies around the world.

MRC

(ICIS) -- LANXESS reported a third-quarter net profit of ┬118m, a sharp increase from ┬23m in the same period last year, due to strong demand for its synthetic rubber and high-tech plastics, Axel Heitmann, chairman of the board of management, said on Wednesday.

The German specialty chemicals producer's sales in the July-September period rose 35% year on year to ┬1.85bn, while earnings before interest, tax, depreciation and amortisation (EBITDA) pre-exceptionals rose 71% to ┬244m.

Group sales were boosted by higher volumes in key customer industries, positive currency effects and price increases, which fully-offset higher raw material costs, Heitmann said.

MRC