Celanese Corporation declares quarterly dividend

MOSCOW (MRC) -- Celanese Corporation, a global technology and specialty materials company, has declared a quarterly dividend of USD0.25 per share on its Series A common stock, payable on August 15, 2014, as per the company's press release.

The dividend is payable for the period beginning May 1, 2014 and ending on and including July 31, 2014 to stockholders of record as of August 5, 2014.

As MRC reported earlier, in late July 2014, Celanese Corporation announced that it would raise prices of high-polymeric PE grades in Europe. Thus, the price increase of 20 cents per kilogram will be implemented for all GUR and GHR UHMW-PE grades sold in Europe, effective September 15, 2014, or as contracts allow.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Texas, Celanese employs approximately 7,400 employees worldwide and had 2013 net sales of USD6.5 billion.
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Global PE market to grow at a CAGR of 3.7% to 2018

MOSCOW (MRC) -- Polyethylene demand is forecast to rise by approximately 3.7% pa between 2013 and 2018, at a slightly higher level than its growth during the 2003 – 2013 period, reproted Plastemart as per GlobalData.

The report states that this higher than historic increase will happen in the US and Europe, and primarily Russia. The US is forecast to witness a 2.4% growth rate pa in comparison with its 0.7% levels in the previous 10 years. Demand in Europe, including Russia, is expected to climb at 2.8%pa from 2013 – 2018, almost three times the level witnessed during the last decade. Global data believes that these demand rises in the US and Russia will be somewhat offset by a lower increase of 4.8% in Asia, compared to the 6% rate during the 2003 – 2013 period. This will be primarily due to the region’s slower economic growth.

Carmine Rositano, Managing Analyst, Downstream Oil and Gas, GlobalData, said, "Lower feedstock costs from US shale gas production are providing the country with a competitive advantage, with increasing investments in its petrochemical plants driving polyethylene demand growth in both domestic and international markets. Although below recent historical levels, demand in Asia remains fairly robust and will continue to boost expansion in the global polyethylene market. As a result, polyethylene capacity is now expected to increase to approximately 5.3% pa between 2013 and 2018, which is higher than the 3.6% experienced over the last decade. Capacity additions will be most prevalent in the US, given its advantaged cost competitive position, and also Russia, which is augmenting its petrochemical industry to reduce its reliance on imports. New capacity will also continue to come online in Asia, but at a slower than historic rate."

The report states that despite the lower estimated cost of crude oil in the forward price curve to 2018, prices for polyethylene will increase at approximately 1.3% pa up to the end of the forecast period. This is attributable to petrochemical demand increasing at approximately three times the rate of that for oil.

Rositano concluded, "The key trend emerging in the polyethylene market will be the ongoing surplus position in the US, where excess production will be directed to expanding markets in South America and Asia. Additionally, the lower feedstock and fuel costs for US plants, compared with those in Europe, will likely result in future European plant closures and further adjust global polyethylene trade flows."

We remind that, as MRC informed previously, the ongoing shale revolution will guide the US ethylene industry surge in the near future, growing by more than a third by 2017, according to a 2012-year report from business intelligence group GlobalData. US ethylene capacity dropped from 27.089 million tpy in 2000 to an estimated 26.137 million tpy in 2012. However, increased investments in the industry will see this figure jump to 35.048 million tpy by 2017 - an increase of just under 35%.
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SK Global Chemical to shut its SM plant in South Korea

MOSCOW (MRC) -- SK Global Chemical is in plans to shut its styrene monomer (SM) plant, reported Apic-online.

A Polymerupdate source in South Korea informed that the plant is planned to be shut early next week. It is likely to remain off-stream for the entire duration of August 2014.

The intended shutdown has been attributed to weak economic fundamentals.

Located in Ulsan, South Korea, the plant has a production capacity of 350,000 mt/year.

As MRC wrote before, 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 down its 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.

We also remind that Taiyo Petrochemical is in plans to shut down its SM plant for maintenance in September 2014. The shutdown is expected to remain in force for around 30 days. The plant is currently operating at full production capacity levels. Located at Ube in Japan, the SM plant has a production capacity of 370,000 mt/year.
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CB&I to market Versalis PE technologies in North America

MOSCOW (MRC) -- CB&I has announced a cooperation agreement by which CB&I will market and provide engineering services for Versalis' low density polyethylene (LDPE) and ethyl vinyl acetate copolymer (EVA) technologies in North America, as per Hydrocarbonprocessing.

CB&I says it will be able to offer both tubular and autoclave high pressure processes, which will enhance the range of products at Versalis' LDPE and EVA plants and add a high-quality product mix to meet any market needs.

"The LDPE and EVA technologies complement our olefins processes and our Novolen polypropylene technologies," said Daniel McCarthy, president of CB&I's technology operating group. "Versalis has vast experience in petrochemicals and polymers, and CB&I is already partnered with them for other petrochemicals processes. This expansion of our cooperation is a testament to our successful relationship."

LDPE and EVA are used to produce film applications for agriculture, packaging and stretch hoods, cables, foams, hoses, injection molding and extrusion coating.

"The marketing of our LDPE and EVA through our partnership with CB&I – by means of their significant presence in the petrochemicals market worldwide – has come to be part of the strategy Versalis is pursuing to strengthen its positioning on the international marketplace and gives the opportunity to enhance and expand our technological footprint paired with high-quality standards," said Versalis CEO Daniele Ferrari.

We remind that, as MRC reported earlier, Eni will invest EUR125 million in its Versalis plant in Mantua to under the Group 2014-2017 four-year strategic plan.
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DuPont quarterly sales drop, income rises

MOSCOW (MRC) -- DuPont Co.’s sales and net income experienced slight changes for the second quarter 2014, as operating earnings dropped to USD1.17 per share in the second quarter, down from USD1.28 per share in 2013, said Plasticsnews.

The firm’s net income increased slightly to about USD1.07 billion, up USD40 million from 2013. However for the half year, net income is down to about USD2.52 billion compared to USD4.39 billion in 2013.

DuPont’s sales decreased by 1 percent to about USD9.71 billion in the second quarter compared to USD9.84 billion in 2013. Sales also declined for the six-month period, down to about USD19.8 billion compared to USD20.3 billion in 2013.

The company’s Performance Chemicals segment was its second-largest performer sales wise for the three-month period, reporting sales of about USD1.7 billion. That, however, was down 8 percent compared to 2013. Operating earnings were down USD17 million, or 6 percent, to USD251 million.

Chair and CEO Ellen Kullman said DuPont will move ahead with its planned separation of its Performance Chemicals segment, which is still on track for mid-2015. She said DuPont has launched the initial stage of a broad initiative to reset the firm’s operating model.

DuPont’s Performance Materials business was its third best performer among its seven primary business segments, recording sales of about USD1.58 billion, which was down 2 percent compared to 2013. Operating earnings decreased USD29 million, or 9 percent, to USD303 million.

The firm’s largest segment was Agriculture, recording sales of about USD3.62 billion, which DuPont said was no change from 2013. However, the firm reported an 11 percent decrease in earnings to USD836 million.

Regionally, the U.S. and Canada accounted for about USD4.6 billion of its total second quarter sales, which dropped 3 percent compared to 2013. Its sales in the Europe, Middle East and Africa region increased 2 percent to about USD2.12 billion, while sales in the Asia Pacific held at about USD2.09 billion. Sales in Latin America dropped 4 percent to USD895 million.

DuPont is an American chemical company that was founded in July, 1802. The company manufactures a wide range of chemical products, leading extensive innovative research in this field. The company is the inventor of many unique plastics and other materials, including neoprene, nylon, Teflon, Kevlar, Mylar, Tyvek, etc. DuPont was the developer and main producer of Freon used in the production of refrigeration equipment.
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