Russian producers raise July PP prices

MOSCOW (MRC) -- SIBUR and Ufaorgsintez have announced price increases of polypropylene (PP) from 1 July 2014, according ICIS-MRC Price report.

Russian producers have begun to announce this week their PP prices for July shipments. SIBUR announced its new higher prices on 1 July (the company manages Tobolsk-Polymer, Tomskneftekhim, Polyom and Neftekhimia), as well as Ufaorgsintez. PP prices rose by Rb400-2,000/tonne from mid-June, depending on the grade.

SIBUR announced a price increase of homopolymer of propylene (homopolymer PP). Prices of raffia grade of homopolymer PP increased by Rb2,000/tonne, prices of injection moulding homopolymer PP grew by Rb1,000/tonne. Ufaorgsinteh raised its prices of raffia grade of homopolymer PP and injection moulding homopolymer PP by Rb1,300/tonne and Rb1,700/tonne, respectively. Prices of Ufaorgsintez's statistical copolymer of propylene (PP-random) rose by Rb400/tonne.

Nizhnekamskneftekhim did not announced officially as of Tuesday morning (1 July 2014) its decision regarding its July PP prices.

Russian producers said higher PP prices were caused by rising feedstocks prices, strong seasonal demand and upcoming scheduled outages for maintenance works.
MRC

MOSCOW (MRC) - Total imports of polypropylene (PP) in Ukraine decreased by 27% in the first five months of this year on the back of economic recession and currency devaluation, according to MRC DataScope.

Ukraine's PP imports in May were about 8,700 tonnes, almost at the April level. In general, total PP imports in the Ukrainian market declined to 40,800 tonnes in January - May 2014, compared with 56,000 tonnes year on year. Economic recession, shutdowns of some major buyers and hryvnya devaluation continue to limit demand for PP in the local market.

Structure of PP imports over the reported period was as follows. May imports of homopolymer PP in the country were about 6,900 tonnes, compared with 6,400 tonnes in April. Ukraine's imports of homopolymer PP decreased to 31,400 tonnes in the first five months of this year, down 27% year on year. The biggest drop in the demand occurred for the sector of injection moulding - about 60% over the period. Key suppliers of homopolymer PP in the local market were producers from Saudi Arabia and Russia.

May imports of PP block copolymers in Ukraine dropped below 1000 tonnes, when in April it was 1,200 tonnes. Imports of PP block copolymers in Ukraine in the first five months of the year dropped to 4,700 tonnes, compared with 6,200 tonnes year on year. The main drop in demand occurred for extrusion grade copolymers for the production of pipes and sheets. The main suppliers remained producers from Europe.

May imports of PP random copolymers in Ukraine declined to 600 tonnes, compared to 774 tonnes in April. Total imports of PP random copolymers in Ukraine were about 3,500 tonnes in January - May 2014, compared with 4,600 tonnes year on year. The main reduction in supply occurred for the producers of pressure PP pipes.

Total imports of other propylene copolymers in the reporting period were about 1,200 tonnes, compared with 2,000 tonnes year on year.


MRC

MOSCOW (MRC) -- LyondellBasell has announced that CNOOC Oil and Petrochemicals Co., has selected the LyondellBasell Spherizone technology for a 400,000 tons per year polypropylene (PP) plant planned to be built at Huizhou, China, reported the company on its site.

"LyondellBasell Spherizone technology can deliver a wide range of high-quality PP products with low resource and energy consumption and we are pleased that CNOOC has again selected our technology for their new facility," said Bob Patel, LyondellBasell Senior Vice President, Olefins and Polyolefins for Europe, Asia, International, and Technology. "This is the fourth polyolefins process technology we have licensed to CNOOC and its joint venture, building on a relationship that spans more than 10 years."

Spherizone offers a multi-zone circulating reactor process providing an economical and efficient method of manufacturing a wide range of high-quality polypropylene and novel polyolefins resins all on a single-line with capacities of up to 500 KT per year. Low manufacturing and investment cost make Spherizone very attractive in the marketplace. Since the launch of the Spherizone process in 2004, more than 3.5 million tons of capacities have been licensed.

As MRC informed previously, in May 2014, LyondellBasell received a key permit required in the company's multi-plant ethylene expansion program which, when fully operational, is expected to increase annual ethylene capacity by an estimated USD3.12 billion, for a total estimated capacity of USD19.9 billion in North America. The ethylene expansion program began in 2013 and represents a total investment of approximately USD1.3 billion in the company's Channelview, La Porte and Corpus Christi, Texas plants which benefit from shale gas production.

LyondellBasell Industries NV is a manufacturing company. The company produces chemicals, fuels, and polymers used for packaging, clean fuels, durable textiles, medical applications, construction materials, and automotive parts. LyondellBasell Industries operates globally and is headquartered in the Netherlands. LyondellBasell is also a leading licensor of polypropylene and polyethylene technologies. The more than 250 polyolefin process licenses granted by LyondellBasell are twice that of any other polyolefin technology licensor.
MRC

MOSCOW (MRC) -- The Executive Board of Evonik Industries AG, a leading specialty chemicals manufacturer, has presented its plans to reorganize the group structure to the Supervisory Board, as per the company's statement.

The Executive Board wants to concentrate more on Evonik's strategic development within a management holding structure. The plan is for the three operating segments, Consumer, Health & Nutrition, Resource Efficiency, and Specialty Materials, to become three fully functional legal entities operating as limited liability companies (German legal status: GmbH). This would give them far greater entrepreneurial independence, allowing more targeted management of their respective businesses, position them even closer to their markets and customers, and bring a further improvement in efficiency. In the future, Evonik also intends to operate the present Site Services as a limited liability company (GmbH) with the involvement of the three operating segments. Further details of the planned new corporate structure will be worked out in the course of this year.

Klaus Engel, Chairman of Evonik's Executive Board, explained: "Through the planned reorganization of the management and portfolio structure we want to create a better basis for more differentiated management of our various businesses close to the markets and for more focused development. That will increase our strategic flexibility and strengthen our leading competitive positions in the different markets."

The demands made on managing and running the three segments already differ considerably in line with their respective market requirements.

As MRC reported 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 recently developed an industrial-scale method for producing silane-modified binders for automotive finishes. The advantage of these silane-modified binders: silane groups increase crosslinking density, making it possible to create automotive finishes that are flexible yet harder, leading to improved scratch resistance.

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

MOSCOW (MRC) -- Clariant, a world leader in specialty chemicals, unites product improvements with sustainability in the latest masterbatch solutions in its innovation pipeline, as per the company's press release.

New CESA-absorb for active oxygen barriers in PET packaging and advanced Hydrocerol nucleating agents for new-generation construction insulation, demonstrate Clariant’s commitment to sustainable innovation addressing market trends and customers’ needs.

Christian Kohlpaintner, Member of Clariant’s Executive Committee, comments: "Masterbatches’ latest product advances embody Clariant’s global commitment to sustainable innovation focused on customer needs and attractive markets. Food protection through clever packaging solutions and energy saving are important issues within society’s global megatrends, and areas where Clariant is actively supporting customers in making a difference."

CESA-absorb responds to the global need of securing food supplies for the world’s growing population by providing effective oxygen barrier solutions for plastic packaging, particularly lightweight, thin and mono-layer packaging – chosen for their environmental benefits – where food needs greater protection from permeating oxygen.

CESA-absorb is a novel masterbatch with an integrated active oxygen barrier that optimally protects sensitive packaged goods from oxygen-induced degradation. It provides superior and long-term oxygen barrier performance to PET packaging such as bottles and films without impacting on transparency or the recyclability of PET. Based on proprietary and patent protected Clariant chemistries, the oxygen scavenging units consist of a catalyst and an oxidizable substrate, which are uniformly dispersed in the polymeric matrix of the packaging wall.

Clariant has developed Hydrocerol nucleating solutions for insulation materials that will address the gap in the construction market for effective, energy-reduction insulation materials within thinner, space-saving boards. Existing buildings are responsible for almost 40% of global CO2 emissions, while valuable space is lost through thick insulation panels used in today’s constructions.

Clariant’s Hydrocerol-based masterbatches enable foaming of lightweight polystyrene at significantly smaller size than the currently known foams.

CESA-absorb and the advanced Hydrocerol nucleating solutions are scheduled for commercial launch at the end of 2014/beginning 2015, respectively.

As MRC reported earlier, last summer, Clariant and Tasnee, one of the largest industrial conglomerates in Saudi Arabia, signed an agreement to establish a masterbatches joint venture in Saudi Arabia. Clariant's Masterbatches business unit is a recognized global leader in color and additive concentrates and performance solutions for plastics.

Besides, this April, Clariant Chemicals (India ) Ltd., an affiliate of Clariant AG, a world leader in specialty chemicals, announced the successful closure of the acquisition of Plastichemix Industries, a Gujarat based masterbatches business in India, with production facilities at Rania, Kalol and Nandesari. Clariant in India will now be one of the leading masterbatches producer, that will offer a wide range of products like black, white, additive, filler & colour masterbatches, flushed pigments & mono-concentrates and engineering plastics
compounds.

Clariant Chemicals (India) Limited and custom color and additive products with production of more than 10,000 color matches which are completed each year. With more than 50 manufacturing plants around the world, Clariant
Masterbatches products, technology and service deliver competitive advantages that foster long-term customer relationships.
MRC