Europe styrene prices fall in line with crude despite firm demand

(ICIS) -- European styrene prices this week have dropped significantly, in line with falls in crude prices, despite healthy demand in the fourth quarter ahead of an anticipated quiet December and lengthening supply, market sources said on Wednesday.

Following the steep drop in crude values that began late last week and a subsequent dip in styrene prices in Asia, styrene prices in Europe have fallen by up to $40/tonne (┬30/tonne).

After styrene prices closed last week at $1,220-1,240/tonne FOB (free on board) Rotterdam, November spot values were at $1,180-1,200/tonne on Wednesday.

Crude values have fallen by almost $5/bbl since last week as the US dollar gained ground against the euro, which was suffering from concerns about Ireland's debt crisis.

Even before crude prices began to fall, sources said styrene prices were already fundamentally too high. Several buyers said that they had been content to remain on the sidelines, believing there was still room for prices to come down even further.

MRC

(ICIS) -- US November propylene contracts settled down by 1 cent/lb ($22/tonne, ┬16/tonne) after a hold-out supplier, which had previously pushed for a rollover, agreed to the decrease, market sources said on Monday.

The drop puts November polymer-grade propylene (PGP) at 57.50 cents/lb and chemical-grade propylene (CGP) at 56.00 cents/lb, as assessed by ICIS.

Market participants had initially expected November propylene contracts to fall by 2-4 cents/lb, but that outlook changed early in the month as a result of cracker outages and a jump in crude oil prices.

A recent increase in refinery-grade propylene (RGP) spot prices was also cited as having limited the drop on the contract side. November RGP traded last week at 47.25-48.25 cents/lb, up from 46.00 cents/lb a month earlier.

RGP accounts for around 60% of US propylene supply.

Market participants said RGP prices were rising in response to a downtrend in refinery-sourced propylene inventories, which in early November fell to their lowest level in 15 months.

MRC

(Plastemart) -- TAIF, an investment group based in Russia's Tatarstan region, is to decide on plan to sell shares in its refineries and chemical plants to help fund 347 billion rubles (US$11 bln) of investments. The group is considering selling equity in the TAIF-NK oil refinery and petrochemicals units OAO Nizhnekamskneftekhim and OAO Kazanorgsintez to fund the investment plan through 2016. The three plants are estimated to have net income of 15.6 bln rubles on revenues of 248 bln rubles this year.

Talks are underway with banks, and a decision will be reached on the best way to do this - via loans, bonds, or an IPO. TAIF is planning 88 bln rubles of investment in the TAIF-NK oil refinery, which processed 7.75 mln tons of oil (about 155,000 bpd) last year. The investment will be used to improve the plant's refining depth to 98.5% from 72% now and increase capacity to 10.1 mln tpa year in 2016, according to the group's annual report.

MRC

(LUKOIL) -- Today LUKOIL Finance Ltd. (a wholly owned subsidiary of OAO LUKOIL) has made a partial advance payment under the 1.5 billion unsecured club facility (the ⌠Facility) arranged in August 2010, with the maturity of 1 year. The Facility was guaranteed by OAO LUKOIL.

The advance payment of USD 1 billion was made with the proceeds obtained from the eurobonds issue in November, 2010.

The Facility was arranged by The Bank of Tokyo-Mitsubishi UfJ, Ltd., Citibank, N.A., London branch, ING Bank N.V., London branch, NATIXIS, The Royal Bank of Scotland N.V., WESTLB AG, London branch. Citibank International PLC acted as an agent for the transaction.

MRC

(European Plastics News) -- Italian blow molding machinery maker Siapi has worked with Pepsico International on development of a new one-way bulk water container that will be introduced in the Middle-East market early next year.

Developed for Pepsico's Aquafina water brand, the new container has a capacity of 17.5-litres and weighs 340g. The use of one-way containers in the bulk water market is a relatively new but growing trend, according to Siapi.

Siapi said the new container will be produced using an EA2S all-electric stretch blow molding machine.

MRC