Russian PC market decreased by 9% in Q1 2014

MOSCOW (MRC) - Russian market of polycarbonate (PC) decreased to 23,600 tonnes, down 9% in the first quarter of this year, compared with the same period in 2013, according to MRC ScanPlast.

The main reason for the decrease in PC market volumes were weaker imports because of rouble devaluation and rising domestic prices. Many consumers have switched the buying of PC from Kazanorgsintez. Especially it affected the extrusion sector with seasonally growing demand.
Market participants said the peak of the demand will come on the eve of the May holidays.

Russia's market of extrusion grade PC was more than 19,000 tonnes in Q1 20014, down 11% against the same period last year. Average monthly processing volumes of extrusion grade PC in Russia are 5,000-8,000/tonnes this raw material, depending on the season. The first seasonal surge in demand is in March-May, and the second - at the beginning of autumn. The largest converters of extrusion PC in Russia are producers of cellular PC sheets, namely Kronos Polyalt and SafPlast.

Consumption in the injection moulding sector is steady as it is the least affected by seasonal factor. Market volume in this sector in the first quarter of this year increased to 5,000 tonnes, up 6% compared to the same period last year. Russia's monthly demand for the injection moulding PC is about 1,500 tonnes, where imports volumes make 1,000 tonnes. The remaining volumes are provided Russian producers.

Key consumers in this segment are producers of household appliances and automotive components (Samsung Electronics Rus Kaluga, LG Electronics Rus, Beko, Automotive Lighting). Blow moulding sector in Russia completely depends on imports, and in Q1 20014 decreased 674 tonnes, down 20% compared with the same period last year, on the back of price rise of Asian material and rouble devaluation.

Russia's monthly consumption of blow moulding PC is 250 tonnes. Main consumers are the producers of water packaging of more than 10 litres.
Total Russia's imports of PC in the first quarter of this year exceeded 10,000 tonnes, and PC exports was almost 4,000 tonnes over the reported period.


MRC

MOSCOW (МRC) -- Nizhnekamskneftehim ( NKNKh ), Russia's largest producer of plastics and synthetic rubbers , on 14 April launched its 50,000 tonne/year fourth line of polystyrene (PS) production, the company said.

The new line will produce 13 grades of PS, seven of them are of general grades, six other additional grades intended for processing by injection moulding, extrusion and expanding. Production will be based on Japanese Toyo-Mitsui technology. The new line will allow NKNKh to increase PS production and expand the product line. Construction of the fourth line was launched in the first quarter of 2013, pre-commissioning works began in December 2013.


NKNKh launched its 50,000 tonne/year first PS line in July 2003. The second line of the same capacity was launched in July 2005. Third PS line of 50,000 tonne/year capacity started in 2008. The producer launched production of acrylonitrile -butadiene-styrene ( ABS) plastics with the capacity of 60,000 tonnes/year in 2013.

OAO Nizhnekamskneftekhim – one of the largest petrochemical companies in Europe, the leader in the production of synthetic rubbers and plastics in the Russian Federation. The Company is part of TAIF Group. The main production facilities are located in the city of Nizhnekamsk, Republic of Tatarstan. The company was founded in 1967.
MRC

MOSCOW (MRC) -- France's Total, Europe’s third-largest oil company, has not renewed its only shale gas exploration licence in Poland, reported Reuters with reference to a statement of a spokesman for Poland's environment ministry, in the latest decision from an oil major rethinking shale plans in the country.

"Total had an exploration licence in eastern Poland, near Chelm, which expired on April 1," said Pawel Mikusek, a ministry spokesman. "They didn't renew it."

Poland launched a major push into shale three years ago when Prime Minister Donald Tusk announced the country would seek to produce unconventional gas on a commercial scale in 2014.

But a revision in once promising shale reserve estimates, a lack of a legal framework and some poor initial drilling results have prompted Marathon Oil, Talisman Energy and Exxon Mobil to pull out of Poland.

As MRC informed previously, earlier this year, Total called on peers to revise projects that require tens of billions of dollars of investment as costs escalate. Total totalvowed to lower capital spending even as it starts projects from Norway to Angola to increase output.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
MRC

MOSCOW (MRC) -- Royal DSM expects to begin producing cellulosic ethanol in the US by July as the government considers reducing the amount of renewable fuel that oil companies will be required to buy, said Hydrocarbonprocessing.

The USD250 million plant in Emmetsburg, Iowa, is a joint venture with ethanol maker Poet and will produce about 12 million gallons (45 million liters) this year, said DSM chief executive Feike Sijbesma. It will be able to make about 20 million to 25 million gallons annually and will reach full production by the end of the year.

Demand for the fuel is driven in part by US Environmental Protection Agency requirements that gasoline companies blend biofuels into their products. Those mandates increase annually while US gasoline consumption is declining.

As a result, the biofuel percentage in each gallon of fuel is rising, and is approaching the 10% level that refiners and automakers say may damage engines. The EPA in November proposed lowering the rate, a change DSM said is unnecessary.

There’s no reason a 10% ethanol blend can’t be used in US vehicles, and fuels with as much as 15% ethanol have been extensively tested, Welsh said.

The Emmetsburg plant will turn corn waste into cellulosic ethanol. That’s considered a second-generation biofuel, an evolutionary step beyond fuel produced from food crops such as ethanol from corn and sugar cane. DSM makes a broad range of chemicals, including enzymes used in food production and biofuels.

As MRC wrote before, Royal DSM (Heerlen / The Netherlands) has signed a partnership agreement with long fibre thermoplastic (LFT) specialist Plasticomp (Winona, Minnesota / USA) to develop bio-based LFT composite materials based on DSM’s "EcoPaXX" polyamide 4.10. The lightweight materials, which include compounds reinforced with glass fiber as well as carbon fiber, will be targeted at automotive and other performance-driven markets.

Royal DSM is a global science-based company active in health, nutrition and materials. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials.
MRC

MOSCOW (MRC) - PolyOne Corporation, a premier global provider of specialized polymer materials, services and solutions, has announced it has signed an expanded supply agreement with Dow Corning Corporation enabling PolyOne Distribution to sell Dow Corning brand silicones to healthcare customers in China, according to Polyone's statement.

By increasing its breadth of solutions, PolyOne is providing growth opportunities for US-based companies that manufacture medical-grade silicone healthcare products in China.

"This agreement with Dow Corning strengthens our portfolio to better serve our healthcare customers located in China, and also supports our strategy of helping U.S.-based multinational companies facilitate manufacturing in Asia," stated Kurt Schuering, president, PolyOne Distribution.

The addition of Dow Corning brand silicones to the PolyOne Distribution portfolio broadens the ability of both companies to support healthcare customers in China. PolyOne offers a single channel for thermoplastic and thermoset resins used in medical applications, and customers can also leverage expanded healthcare-focused resources to accelerate product development and regulatory compliance.

As MRC wrote before, earlier this year, PolyOne Corporation announced the addition of new capabilities to its OnColor HC Plus portfolio. These expanded offerings add medical-grade LDPE, nylon, PEBA, PS and PVC to the globally available palette of specialty healthcare colorants.

Dow Corning provides performance-enhancing solutions to serve the diverse needs of more than 25,000 customers worldwide. A global leader in silicones, silicon-based technology and innovation, Dow Corning offers more than 7,000 products and services via the company's Dow Corning and XIAMETER brands.

PolyOne Corporation is a global provider of specialized polymer materials, services, and solutions. PolyOne is a provider of specialized polymer materials, services and solutions with operations in specialty polymer formulations, color and additive systems, polymer distribution and specialty vinyl resins.
MRC