Sumykhimprom increased production of NPK complex fertilizers by 63%, titanium dioxide - 19% in Q1 2014

MOSCOW (MRC) - Sumykhimprom, the largest producer of complex fertilizers in Ukraine in the first quarter of 2014 increased the production of complex fertilizers "NPK 15-15-15" by 63% compared with same period last year - up to 23,079 tonnes, titanium dioxide - by 18.7%, to 8,590 tonnes, according to the press service of the company.

The company also increased the production of other types of its products. The producer's production of ferrous sulfate increased by 47% to 8,607 tonnes in Q1 2014. At the same time Sumykhimprom reduced the production of sulfuric acid by 5% - up to 61,785 tonnes over the reported period.

According to the company, the growth in the production of phosphorus fertilizer was achieved due to the stronger demand from farmers. "If in January export shipment was only 1,000 tonnes of fertilizers, than in February and March export volumes exceeded 46,000 tonnes of fertilizers. Fertilizer "NPK 15-15-15" remains one of the most popular, so it is logical that we are increasing its production" - said the Senior manager of Sumykhimprom Igor Lazakovich.

JSC "Sumykhimprom" produces phosphate mineral fertilizers and other goods of inorganic chemistry. Its activities include design and research; wholesale and retail trade; intermediate services on consumer goods sales; and construction organizations. Its products include granphos, superphosphate ammoniated, sulfuric acid, oleum, reactive sulfuric acid, coagulants to treat potable water and sewage, paints, construction lime, cement activator, and consumer goods. 100% of shares of "Sumyhimprom" are state-owned. In 2013 the company reduced the output of titanium dioxide by 17% to 32,620 tonnes; mineral fertilizers down by 45.7%, to 206,550 tonnes.
MRC

MOSCOW (MRC) -- Goldman Sachs maintained a Buy rating on Axiall Corporation and raised its price target to USD66.00 (from USD60.00), said Streetinsider.

The change is tied to PVC margin gains. Analyst Brian Maguire said, "We see non-integrated ethylene buyers such as AXLL as the biggest beneficiary of the March ethylene contract settling down 4 cents on Friday (April 4).

Meanwhile the PVC contract price rose 3 cents in March for a net 5 cent increase in PVC margin for the month. This puts March prices up 9 cents for PVC year to-date and down 2.75 cents for ethylene.

On paper, this puts PVC margin in March up over 10 cents from December. Were this margin gain to hold for a full year, we estimate it would add roughly USD250mn to AXLL EBITDA given their 2.5bn pounds of PVC capacity.

However, we expect some of the margin gains to fade this summer as PVC supply disruptions ease. Still, we now expect 2014 PVC margin to be nearly 6 cents higher than 2013, with another 2 cent margin gain expected in 2015."

As MRC wrote before, Axiall Corp. is considering building a USD3 billion ethane cracker and chemical plant somewhere in Louisiana. The Atlanta-based chemical manufacturer says it could make a decision sometime early next year. Axiall would invest USD1 billion of its own money, while an unnamed partner would put in USD2 billion.

Axiall Corporation is a leading integrated chemicals and building products company. It is an international manufacturer of chlor-alkali and derivatives, chlorovinyls and aromatics products including chlorine, caustic soda, vinyl chloride monomer, chlorinated solvents, calcium hypochlorite, ethylene dichloride, muriatic acid, phosgene derivatives, polyvinyl chloride, vinyl compounds, acetone, cumene and phenol. It also manufactures vinyl-based building and home improvement products, including window and door profiles, mouldings, siding, pipe and pipe fittings, and decking. Axiall, headquartered in Atlanta, Georgia, has manufacturing facilities located throughout North America and in Asia to provide industry-leading materials and services to customers.
MRC

MOSCOW (MRC) - Ufaorgsintez, owned by United Petrochemical Company, announced an increase in the contract prices of low density polyethylene (LDPE) and polypropylene (PP), effective from 15 April, according to ICIS-MRC Price Report.

Company raised contract prices for polyolefins by Rb500-4,500/tonne, compared with the level on 1 April. The most significant increase occurred for LDPE, whereas PP rose slightly.

Prices for 108 and 158 PE rose by Rb2,500/tonne and Rb4,500/tonne, respectively, compared with the level at the beginning of the month. Prices for homopolymer PP of raffia grade increased to Rb1,250/tonne, while the prices for block copolymers (PP-block) increased by Rb500/tonne. Prices for injection moulding homopolymer PP remained mostly steady.

Ufaorgsintez JSC was founded in 1956 and is based in Ufa, Russia. Ufaorgsintez JSC manufactures organic synthesis products in Russia and Europe. Its products include ethylene, propylene, ethanol, cumol, ethyl benzol, phenol, acetone, copolymer rubber, polyolefines, poly vinyl chloride and polyethylene items, thinners, and dilutants. PP production capacity of the plant is 100,000 tonnes/year. Total production of polyethylene and polypropylene at the plant exceeded 23,100 tonnes and 32,600 tonnes in Q1 2014, respectively. As of January 22, 2010, Ufaorgsintez JSC operates as a subsidiary of United Petrochemical Company OAO, with 87.76% of the "Ufaorgsintez"capital.
MRC

MOSCOW (MRC) -- Jilin Petrochemical has shut a high density polyethylene (HDPE) plant for maintenance turnaround, reported Apic-online.

A Polymerupdate source in China informed that the plant was shut on April 10, 2014. The plant is likely to remain off-stream for around one month.

Located in Jilin province, China, the plant has a production capacity of 300,000 mt/year.

As MRC informed earlier, Sinopec Shanghai Petrochemical shut its HDPE plant on March 26, 2014 owing to feedstock issues. A restart date for the plant could not be ascertained. Located in Shanghai, China, the plant has a production capacity of 250,000 mt/year.

Earlier, on 3 March, Shanghai Golden Phillips Petrochemical shut its HDPE plant. The shutdown was attributed to high cost of feedstock ethylene. Located in Shanghai, China, the plant has a production capacity of 135,000 mt/year.
MRC

MOSCOW (MRC) -- Traders raised spot prices of general purpose polystyrene (GPPS) and high impact polystyrene (HIPS), following the hryvnya devaluation, according to ICIS-MRC Price report.

The collapse of the hryvnya exchange rate leads to a constant increase in prices of imported polymers. Traders raise polystyrene (PS) prices and adjust them almost every day. The price spread of the most popular injection moulding GPPS grades of Nizhnekamskneftekhim production were heard in the range of UAH27,000-28,200/tonne CPT Kiev, including VAT, on Wednesday. The price of 525 grade rose by UAH6,500-6,900/tonne since early 2014.

The slump in prices is no less significant in the HIPS market. HIPS prices of Nizhnekamskneftekhim's 825 grade were heard at UAH28,000-29,000/tonne CPT Kiev, including VAT, up by UAH6,500-6,800/tonne compared with prices of the beginning of the year.

Traders said prices have been bound long to foreign currencies (dollar, euro or rouble depending on the country of origin of the polymer) and they are recalculated at the current foreign currency rate of the interbank market. Many companies initially calculate selling prices at a higher exchange rate, because the hryvnya has fallen almost every day in recent months. Almost all traders work now on 100% prepayment basis. Deferred payments are granted only to very disciplined customers with a good payment history, a Ukrainian trader said.

Demand is present in the PS market, despite a high rate of price increases, sellers said. At the same time, producers of finished products said buying activity dropped in the market of finished products, following the general decline in economic activity of the population, which would have a negative impact on the overall PS consumption.
MRC