EPS imports to Russia decreased by 16.5% in Jan-July 2014

MOSCOW (MRC) - Imports of expandable polystyrene (EPS) in Russia decreased to 29,000 tonnes in the first half of the year, down 16.5% compared to January-June 2013, according to MRC ScanPlast.

Local companies continued the policy of import substitution, increasing purchases of Russian EPS. Largest importer of EPS in the Russian market continued to be China. However, despite the general decline in imports, shipments of Chinese EPS to Russia rose to 17,500 tonnes in January-June 2014, compared with 13,800 tonnes in the same time in 2013.
The main supplier of Chinese EPS remained Loyal, most popular Loyal's brands in the Russian market were F-MS and F-SA. At the same time, Russian producers reported a good demand for the reporting period.

Given strong demand in the domestic market, SIBUR even had to refrain from the sale of EPS in foreign markets. Because of the shortage of Russian EPS local converters and traders had to increase purchases in foreign markets in the second quarter of this year.

Russia's imports have risen for the fourth month in a row. Russia's EPS imports grew to 8,200 tonnes in June, up 19% year on year.
MRC

MOSCOW (MRC) - Imports of suspension polyvinyl chloride (PVC) in Russia decreased by 47% in the first half of this year, compared with the same tine in 2013. The biggest decrease in imports occurred for US PVC, according to MRC DataScope report.

June imports of suspension PVC (SPVC) in Russia grew to 28,200 tonnes, compared with 27,300 tonnes in May. Total SPVC imports in Russia decreased to 125,600 tonnes in January - June this year, compared with 238,300 tonnes year on year. The biggest decrease in imports occurred for US resin, which can be explained by high export prices and the devaluation of the Russian rouble.

Structure of SPVC imports over the reported period was as follows. June imports of Chinese acetylene PVC in Russia rose to 21,000 tonnes, compared with 17,400 tonnes in May. Russia's imports of Chinese acetylene resin decreased to 69,400 tonnes in January - June 2014, down 28% year on year. Stable pricing policy allowed Chinese producers to minimize their losses in the Russian market.

Russia's imports of US PVC imports from the United States last month fell to 3.1 million tons versus 3.6 million tons in May. Imports of US resin to the country decreased to 26,400 tonnes in the first six months of this year, compared with 113,800 tonnes year on year.

Russian companies reduced their purchases of US SPVC to the minimum because of high prices, and this situation will unlikely change this year.
Russia's imports of European PVC have also remained weak because of the high price; Russia's imports of European resin were about 3,000 tonnes in June, compared with 4,300 tonnes in May.
Total imports of European PVC to Russia were 20,300 tonnes in the first six months of the year, compared with 21,000 tonnes year on year.
Russia's SPVC imports are expected to increase in the coming months on the back of the upcoming scheduled maintenance works at the Russian plants.

The schedule of the shutdowns is as follows: SayanskKhimPlast will shut its capacities for a turnaround from 2 to 28, August; Bashkir Soda Company - from 10t to 30, September, Kaustik (Volgograd) - from 3 to 20, October. A series of scheduled shutdowns will make local converters increase the volume of purchases in foreign markets.


MRC

MOSCOW (MRC) -- Foster Wheeler AG subsidiary of its Global Engineering and Construction Group has been awarded an engineering, procurement and construction management contract by Owens Corning for a new composite materials manufacturing facility in Gastonia, North Carolina, said Plastemart.

The Gastonia operation will support growing customer demand for glass non-woven products serving the global building materials market. Non-woven products feature enhanced aesthetics, mold and fire prevention, and corrosion resistance.

Foster Wheeler's contract value was not disclosed. The engineering, procurement and early construction work was included in the company’s first-quarter 2014 bookings and the balance of the construction management scope is expected to be released later in 2014.

Foster Wheeler’s scope of work is expected to be completed by the end of 2015.

As MRC wrote before, Foster Wheeler AG has announced that Eni S.p.A. has renewed for a further two years its existing framework agreement with a subsidiary of Foster Wheeler’s Global Engineering and Construction Group. Under this agreement, Foster Wheeler provides basic design and front-end engineering design for downstream, upstream, power and petrochemical projects world-wide undertaken by five Eni business units: Eni Refining & Marketing, Eni Exploration & Production, Enipower, Versalis and Syndial.
MRC

MOSCOW (MRC) -- A. Schulman, Inc. has announced that it has completed its acquisition of a selected majority of the assets of the Specialty Plastics business segment from Ferro Corporation for USD91 million in cash, as per the company's press release.

The agreement to acquire the assets was first announced on June 4, 2014. The acquisition includes four facilities located in the United States as well as operations in Spain.

"This acquisition is an excellent strategic complement to our existing capabilities and reflects our ongoing effort to expand our product offerings and geographic reach in target markets," said Joseph M. Gingo, Chairman, President and Chief Executive Officer of A. Schulman. "We welcome the highly talented Specialty Plastics team to A. Schulman, and we are confident that they will fit in well with our performance-oriented growth culture."

The Specialty Plastics segment is a global supplier of custom engineered plastic compounds, colorants, and liquid coatings. The business offers a broad portfolio of proprietary products and recognized brand names serving a wide range of end markets including packaging, transportation, construction, appliances and agriculture.

The acquisition is expected to be accretive to adjusted earnings per share. A. Schulman anticipates achieving approximately USD5.5 million in synergies within 12 to 18 months following the close of the transaction, driven primarily by sourcing activities and plant efficiency actions.

As MRC informed previously, in mid-2012 A. Schulman Inc. inked a definitive agreement to acquire ECM Plastics, a privately owned plastics compounder located in Worcester, Mass., for USD36.5 million. Besides, Jeddah-based National Petrochemical Industrial Company (Natpet), a subsidiary of Alujain Corporation, entered into a joint venture agreement with A. Schulman to produce polypropylene compounds.

A. Schulman is a global plastics supplier, headquartered in Akron, Ohio, and a leading international supplier of high-performance plastic compounds and resins, which are used as raw materials in a variety of markets. A. Schulman has 33 manufacturing facilities globally. A. Schulman's fiscal third-quarter earnings fell 69% amid continued sluggishness in European markets and higher-than-expected costs in Latin America, where the company has been consolidating its Brazilian operations. A. Schulman reported net sales of USD2.1 billion for the fiscal year ended August 31, 2013.
MRC

MOSCOW (MRC) -- Styron, the global materials company and manufacturer of plastics, latex and rubber, and its affiliate companies in Europe have announced price increases for all polystyrene (PS) and copolymer grades, reported the company on its site.

Effective immediately, or as existing contract terms allow, the July contract and spot prices for the products listed below will increase as follows:

- STYRON general purpose polystyrene grades (GPPS), STYRON and STYRON A-TECH high impact polystyrene grades (HIPS) - by EUR100/tonne;
- MAGNUM ABS resins - by EUR65/tonne;
- TYRIL SAN resins - by EUR75/tonne.

The price increase responds to the rising costs of raw materials associated with the manufacturing of polystyrene and copolymers grades in Europe.

As MRC informed before, Styron and its affiliate companies in Europe raised May prices of all PS and copolymer grades as follows:

- STYRON general purpose polystyrene grades (GPPS), STYRON and STYRON A-TECH high impact polystyrene grades (HIPS) - by EUR35/tonne;
- MAGNUM ABS resins - by EUR35/tonne;
- TYRIL SAN resins - by EUR35/tonne.

PS is a key strategic business for Styron and an industry it will continue to focus innovation efforts on to help their diversified customer-base remain competitive in the different markets they serve such as packaging, appliances, building and construction.

Styron is a leading global materials company and manufacturer of plastics, latex and rubber, dedicated to collaborating with customers to deliver innovative and sustainable solutions. StyronпїЅs technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Styron had approximately USD5.3 billion in revenue in 2013, with 19 manufacturing sites around the world.
MRC