Demand for LLDPE dropped in Russia by 2% in H1 2014

MOSCOW (MRC) -- Demand for linear low density polyethylene (LLDPE) from Russian converters, particularly, from films producers, decreased by 2% over the first six months of 2014, according to MRC ScanPlast.

Demand for LLDPE dropped to 110,200 tonnes in the Russian market in the first half of 2014 from 112,400 tonnes over the same period of 2013. Weaker demand for LLDPE did not affect all sectors of consumption, but the key sector - films production - still demonstrated a 3% decline in consumption.

The beginning of 2014 (the first two months) was quite hard for Russian LLDPE consumers. Local producers of stretch films experienced particularly hard times. Devaluation of the rouble in February led to a price rise of material for more than 10%, while prices of finished products remained unchanged. This fact slowed demand for LLDPE from stretch films producer. A similar situation was with film producers that add linear polyethylene to improve the quality of finished products. Soaring LLDPE prices also led to weaker demand in this segment.

The structure of LLDPE consumption by sectors over the stated period looks the following way.

Demand for LLDPE in the films production sector dropped by 3% in the first half of 2014 to 98,800 tonnes. Demand for LLDPE from the key consumers - producers of irrigated stretch films - decreased by 9%, whereas producers of blown stretch films, on the contrary, showed a 30%-increase.

Demand for LLDPE from producers of large blow molding products surged by 58% over the said period and totalled 6,200 tonnes. Demand from cable products producers also increased: by 63% to 1,100 tonnes.

At the same time, demand in the injection molding and compounding sectors fell by 19% and 48%, respectively, to 900 and 1,200 tonnes.

As reported earlier, the local LLDPE market is completely dependent on imports, the share of domestic polyethylene (PE) does not exceed 10% in the market. Nizhnekamskneftekhim, Russia's only LLDPE producer, was forced to focus on the production of high density polyethylene (HDPE) because of the outage at Stavrolen. The share of Russian PE is expected to grow in the LLDPE market (because of increased production at Nizhnekamskneftekhim) not earlier than in 2015. However, the market will still be dependent on imports, even given the scheduled increase in the output.

MRC

MOSCOW (MRC) -- Along with Chevron Phillips Chemical Co., Equistar has declared force majeure production limits on polyethylene, reported BIC Magazine.

Equistar - a unit of Houston-based LyondellBasell Industries - has experienced "significant feedstock supply disruptions" at its PE plants in Matagorda and Victoria, according to a July 9 letter to customers.

Those two plants are massive PE production sites, with combined annual capacities of about 5.4 billion pounds of high, low and linear low density PE.

LyondellBasell already had declared force majeure on ethylene feedstock made at its plant in La Porte, Texas. Market sources said the situations at Chevron Phillips and Equistar could tighten supply in a North American PE market where demand has been lackluster so far in 2014.

As MRC informed previously, two workers were injured after a flash fire Monday night, 7 July, at Chevron Phillips Chemical's plant in Port Arthur, Texas. The company has not yet identified the cause of the fire. Chevron Phillips said the fire, which began around 8 p.m. local time Monday night and was extinguished by 7 a.m. on Tuesday, did not pose a danger to any area residents. The Port Arthur plant produces chemicals including ethylene (800,000 tpy), propylene (500,000 tpy), toluene and cyclohexane, according to news reports.
MRC

MOSCOW (MRC) -- Kavian Petrochemical Plant can quadruple its production up to two million tons a year after receiving enough feedstock from South Pars, reported FARS News Agency with reference to the plant’s manager.

Ramezan Owladi said the plant is expected to receive the necessary feedstock from phases 15 and 16 of the massive offshore South Pars gas field, the oil ministry's website reported.

He said the first train of Kavian Petrochemical Plant is working at 50% capacity, adding that the second train is in the pre-commissioning stage.

Owladi said the plant is ready to receive more ethane from South Pars to boost its production.

He said Kavian has the potential to produce one million tons a year of ethylene.

Phases 15 and 16 of South Pars are expected to produce 100 million cubic meters per day (mcm/d) of gas this year.

Kavian Petrochemical Plant is one of the largest ethylene producers in Iran. Its products are destined to Western provinces.

As MRC informed before, in late 2012, Kavian Petrochemical Complex, part of the world's biggest petrochemical complex in Asalouyeh, commenced production. The new complex houses a capacity to process 2.58 million tons of feedstock to produce 2 million tons of ethylene per annum. The first phase of the complex with an annual production capacity of one million tons of ethylene had already been made provisionally operational.
MRC

MOSCOW (MRC) -- The global emulsion polymer market is expected to reach USD44.22 billion by 2020, according to a new study by Grand View Research Inc, reported Plastemart.

Growth of major end use industries such as paints & coatings and adhesives coupled with regulatory support across various nation is expected to remain key driving factors for the market. Environmental benefits associated with the use of emulsion polymers have been significantly instrumental in enhancing market penetration. However, volatile price of key raw materials including styrene and acrylics, is expected to be a challenge for industry participants over the next six years. Owing to these factors, the industry has shifted its focus towards developing bio-based alternatives to synthetic emulsion polymer.

Further key findings from the study suggest:
- Global market for emulsion polymer was 12,108.8 kilo tons in 2013 and is expected to reach 17,398.3 kilo tons by 2020, growing at a CAGR of 5.4% from 2014 to 2020.
- Acrylics emerged as the leading product segment and accounted for 38.4% of total market volume in 2013. In addition to being the largest product segment, acrylics are also expected to be the fastest growing product segment, at an estimated CAGR of 5.7% from 2014 to 2020
- Paints and coatings emerged the leading application segment for emulsion polymer and accounted for 32.4% of total market volume in 2013. Global demand for emulsion polymer in paints and coatings is expected to be primarily driven by growth of paints and coatings industry mainly in emerging economies of BRIC nations. Global demand for emulsion polymer from paper & paperboard coatings is expected to grow at an estimated CAGR of 3.4% from 2014 to 2020.

Asia Pacific dominated the global market and accounted for 38.8% of total market volume in 2013. Asia Pacific along with being the largest market is also expected to be the fastest growing regional market for emulsion polymer at an estimated CAGR of 6.9% from 2014 to 2020 owing to increasing concentration of paint and coating companies.

European market for emulsion polymer is expected to exceed a market worth USD 10 billion by 2020, growing at an estimated CAGR of 4.2% from 2014 to 2020.

The global emulsion polymer is fragmented with top four participants accounting for just below 30% of the global market in 2013. Some of the major industry participants include BASF SE, Celanese, Dow Chemical Company and Styron. Some other companies operating in the global market includes Synthomer, Wacker Chemie AG, DIC Corporation, Nuplex Industry and Omnova Solution.

As MRC informed earlier, emulsion polymer market was worth USD28.24 bln and is expected to reach USD 41.63 bln by 2019, growing at a CAGR of 5.7% from 2012 to 2018, according to Transparency Market Research.
MRC

MOSCOW (MRC) -- NS Styrene Monomer is likely to restart its No.3 styrene monomer (SM) plant following an unplanned outage, as per Apic-online.

A Polymerupdate source in Japan informed that the plant is expected to restart operations on July 16, 2014. Feedstock issues forced the plant to close unexpectedly on July 8, 2014.

Located in Oita, Japan, the plant has a production capacity of 230,000 mt/year.

We remind that, as MRC wrote previously, Styrindo Mono Indonesia (SMI) is in plans to shut its No.1 styrene monomer (SM) plant for maintenance turnaround in H2 November 2014. The plant is slated to be shut for around one month. Located in Merak, Indonesia, the plant has a production capacity of 100,000 mt/year.

Besides, Idemitsu SM (Malaysia), an affiliate of Idemitsu Kosan, one of Japan’s largest refining and petrochemical companies, is likely to shut its styrene monomer (SM) plant for maintenance in August 2014. It is likely to remain shut for around one month. Located at Pasir Gudang in Malaysia, the SM plant has a production capacity of 600,000 mt/year.
MRC