PE imports to Belarus fell by 16% in January and February 2014

MOSCOW (MRC) -- Imports of polyethylene (PE) into Belarus decreased by 16% over the first two months of 2014. High density polyethylene (HDPE) accounted for the greatest fall in supplies, according to MRC analysts.

PE imports to Belarus dropped in January and February of 2014 to 14,200 tonnes from 16,900 tonnes over the first two months of 2013. HDPE accounted for the greatest decrease in demand. The main reasons for reduced imports were weak demand for finished products and the devaluation of the national currency amid shrinking credit financing.

The structure of PE imports over the stated period lookds the following way.

Imports of high density polyethylene (HDPE) totalled 7,800 tonnes over the first two months of the year, down by 19.2% year on year. As expected, European HDPE producers reduced their presence in the local market (higher prices), while Russian producers increased their shipments to 6,000 tonnes (about 4,000 tonnes - a year earlier).

The overall imports of low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) fell to 6,400 tonnes in January and February 2014 from 7,200 tonnes a year earlier. Producers from Saudi Arabia are leaders in this market (they supplied about 3,500 tonnes of PE over the stated period). The share of Russian LDPE is insignificant in the local market and was about 728 tonnes over the first two months of the year.
MRC

Reliance signs loan to finance expansion of its petrochemical plants

MOSCOW (MRC) -- Reliance Industries Ltd. (RIL) signs loan co-financed by Japan Bank for International Cooperation (JBIC) and Japanese banks backed by Nippon Export and Investment Insurance (NEXI) for up to USD 550 million to part finance the proposed expansion of its petrochemical plants and setting up new gasification plant and refinery off-gas cracker over the next two to three years, said Noodls.

This is RIL's eighth ECA facility for the largest capital expenditure program it has undertaken. This is the first time that JBIC is extending credit to RIL. JBIC will provide direct financing of up to USD 330 million and Japanese banks, supported by a 95% NEXI insurance cover, will finance up to USD 220 million.

The participating banks include The Bank of Tokyo- Mitsubishi UFJ, Ltd., Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd. and three regional Japanese banks namely The Gunma Bank Ltd., The Hachijuni Bank, Ltd. and The Chiba Bank, Ltd.

This facility will have a door-to-door tenor of twelve years and will be used to finance contracts for imports of goods & services signed with more than 20 Japanese suppliers, including some SMEs and MMEs.

With this facility, NEXI has established a new insurance program that extends support to Japanese regional banks' for financing such overseas projects. In addition to the aforesaid six Japanese banks, some more banks (Japanese regional banks) are expected to participate through a partial assignment of the contractual rights and obligations of NEXI

Reliance Industries Limited (RIL) is India's largest private sector company on all major financial parameters with a turnover of INR 401,302 crore (USD67.0 billion), cash profit of INR 30,795 crore (USD 5.1 billion) and net profit of INR 21,984 crore (USD3.7 billion) as of March 31, 2014. As MRC informed before, Reliance Industries Ltd. has reported a 7.9% year-on-year decline in its gross refining margin for the January-March quarter, to USD9.30/barrel.

MRC

Evonik enters into strategic partnership with the University of Tokyo

MOSCOW (MRC) -- Evonik Industries, a leading specialty chemicals manufacturer,and the University of Tokyo plan to work together closely in selected fields in the future and have sealed a strategic partnership for this purpose, according to the company's press release.

The University of Tokyo, one of the most important universities in the world, is now Evonik’s fourth strategic university partner. Such partnerships already exist with the University of Minnesota in the USA, the renowned Shanghai Jiao Tong University (SJTU) in China, and with King Abdullah University of Science and Technology (KAUST) in Saudi Arabia.

Additionally, in the fall of 2013, Evonik signed a memorandum of understanding regarding a strategic partnership with the Agency for Science, Technology, and Research, the leading major national research institution in Singapore. "These partnerships are an important tool for our international innovation strategy," stated Senior representative of the Evonik Group in Japan. "Networking worldwide with top institutions gives us access to scientific excellence and researchers with outstanding educational backgrounds."

Strategic partnerships with universities in all important regions of the world create a framework for Evonik for joint research projects and a regular sharing of research trends in science and industry.

As MRC informed earlier, Evonik Industries is paving the way for a new technology whose applications include automotive finishes that are more scratch-resistant than ever before. The specialty chemicals company has developed an industrial-scale method for producing silane-modified binders for automotive finishes.

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world. In fiscal 2013 more than 33,500 employees generated sales of around EUR12.9 billion and an operating profit (adjusted EBITDA) of about EUR2.0 billion.
MRC

Sanfangxiang to shut PTA plant in China

MOSCOW (MRC) -- Jiangsu Sanfangxiang is likely to shut a purified terephthalic acid (PTA) plant, reported Apic-online.

A Polymerupdate source in China informed that the plant is likely to be shut in September 2014. It is likely to remain off-stream for around one month.

Located in Jiangyin, Jiangsu, China, the plant has a production capacity of 1.5 million mt/year.

As MRC informed before, Jiangsu Sanfangxiang restarted its PTA plant in mid-April, following maintenance turnaround. It was shut in late March 2014. Located in eastern Jiangsu province of China, the plant has a production capacity of 1.2 million mt/year.

We remind that BP Zhuhai Chemical has deferred the startup of its new PTA plant. The commissioning of the plant has been postponed to 2015. It was earlier scheduled to start in Q4, 2014. The reason for the delayed startup has been attributed to weak margins for PTA. To be located in Zhuhai, southern Guangdong province of China, the plant will have a production capacity of 1.5 million mt/year.
MRC

Petrobras CEO defends Texas refinery purchase after USD530 million loss

MOSCOW (MRC) -- Petroleo Brasileiro SA, or Petrobras, facing a growing scandal over its USD1.2 billion purchase of a refinery in Texas, said it bought the plant to maximize returns on heavy oil that it could not refine in Brazil, said Hydrocarbonprocessing.

The Pasadena plant still had good margins in 2008 when Petrobras began to negotiate increasing its stake, CEO Maria das Gracas Foster told a Brazilian congressional commission on Wednesday. The state-run company recognized a USD530 million loss from the deal, she said.

Opposition lawmakers are pushing for a formal investigation into the 2006 purchase from Astra Oil Trading, which Foster said paid at least USD360 million for the plant.

Opposition members collected enough signatures this month to create a separate commission to investigate the Pasadena deal, prompting government-allied senators to propose a wider commission to also look into projects that affect the two main opposition parties.

The senate could decide to increase the scope and to include representatives from the lower house. The court that oversees government spending and the Public Ministry is already investigating Petrobras for the purchase of the refinery. The state-run company said it’s collaborating with government agencies and created its own committee to investigate.|

As MRC wrote before, Petrobras awarded two ultra-deepwater contracts to the project management, engineering and construction company, Technip ( TKPPY ). The French company would deliver flexible pipes of about 100 kilometers that would support oil production, gas lift and gas injection.

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
MRC