Prices and demand for pipe HDPE in Russia are falling

MOSCOW (MRC) -- Purchasing activity in the market of pipe HDPE had considerably fallen as well as the prices by mid-November, according to MRC Price market reports.

October appeared a quite complicated period for the Russian market of pipe HDPE. Because of PE productions shutdowns for scheduled maintenance in Kazan and Nizhnekamsk, the offer of both colored and non-colored pipe materials was almost absent.

Yet from the end of summer big Russian producers of PE pipes started active contracting of materials for works in external markets in October-November. As a result in October pipe HDPE supplies grew almost twice as much compared to September and reached the level of record 14.2 KT.

By mid-October prices for small volumes of the Russian colored 100PE had reached the level of 63.000 - 65.000 Rub./t, including VAT, FCA. But starting from early November with sufficient volumes of both colored and non-colored Russian pipe HDPE along with slumping demand, the prices dropped to the level of 60.000 - 62.000 Rub./t, including VAT, FCA.

For more detailed information, see the Price market reports Polyethylene in Russia

MRC

(Plastemart) -- Oil Corp. (CNOOC) has started constructing a CNY 8.3 billion fine chemical project in Dongfang city industrial park, Hainan Province. The project will be constructed in two phases.

The first-phase project, to start operation in December 2012 with CNY 4.341 bln investment, will produce liquefied natural gas, MTBE, naphtha and diesel.

The second-phase project will produce acrylonitrile, styrene, MMA and acetonitrile and is estimated to start operation in April 2013.

The fine chemical project is a key project of Hainan's 11th five-year plan to count on the abundant offshore oil resources in Hainan. It will adopt deep catalytic cracking technology according to the nation's clean production and green chemical development principles.

MRC

(ICIS) -- The gap between low density polyethylene (LDPE) and C4 linear low density polyethylene (LLDPE) is at an all-time high, market sources said on Thursday.

⌠We are seeing a difference of about ┬150/tonne ($205/tonne) and even more between the two grades, said a trader selling both polyethylene (PE) grades.

A more traditional price gap between LDPE and C4 LLDPE had been around ┬50/tonne, with LDPE commanding a premium. This delta had been relatively static for several years, before imports of LLDPE started to have an effect in Europe in the third quarter of 2010.

The new price differential was due to the double effect of LDPE prices strengthening and LLDPE prices weakening due to the increased availability of imports: several sources now felt that this would be the new order in future PE pricing.

MRC

(European Plastics News) -- Newly-formed UK-based company Coraltech has acquired all the patents relating to the Coralfoam injection molding technologies, which it claims hold big potential in automotive and packaging lightweighting.

The patents include the use of the Coralfoam process in open-expansion, core-back and gas-in-melt injection moulding applications. They are valid for a further seven years and were acquired from Im-Pak Technologies, also based in the UK, earlier this year.

Coraltech is also working with Coralfoam process inventor Peter Clarke in development of a new lightweight selectively-foamed PP soup pot design for a major UK retailer. Early indications show a potential weight reduction from 27g to 19g.

MRC

(Plastemart) -- The US$15 bln joint venture between Saudi Aramco and Dow Chemicals to be located at Jubail is on track and is expected to favour Saudi Arabian contractors by allocating 30% of the construction budget in their favour.

This petrochem JV that has endured a few setbacks in the past, looks ready to move forward. Aramco is talking to contractors to find out unit rates and costs as it looks towards the construction phase of the huge complex.

MRC