SIBUR reduces export EPS prices

MOSCOW (MRC) -- SIBUR has informed its customers that its has reduced its export expandable polystyrene (EPS) prices for August shipments, according to ICIS-MRC Price report.

Buyers in foreign markets said offer prices of Russian EPS of SIBUR dropped to USD30/tonne for all contract shipments in August. The price cut was caused by devaluation of the rouble against the dollar in July, as well as weaker demand for EPS in Ukraine amid stronger demand for Chinese EPS.

According to MRC ScanPlast report, SIBUR-Khimprom produced 47,630 tonnes of EPS in the first half of 2014, down by 3% year on year. SIBUR-Khimprom is the largest EPS producer in Russia and the CIS countries.
MRC

MOSCOW (MRC) -- The British government took steps to speed up energy exploration including controversial hydraulic fracturing for shale gas with a new licensing round for companies looking for onshore oil and gas, reported Reuters.

Concerns about the potentially dangerous impact of hydraulic fracturing, or fracking, in the search for shale gas has prompted protests in Britain and outright bans on the practice in France and elsewhere.

The licences are the first step in the exploration process but do not give outright permission to drill. Oil and gas exploration companies must also obtain planning permission, environmental permits and health and safety approvals before they can receive final go-ahead to drill in Britain.

"Ultimately, done right, speeding up shale will mean more jobs and opportunities for people and help ensure long-term economic and energy security for our country," said Business and Energy Minister Matthew Hancock.

Britain is betting on the development of shale gas to help curb its growing dependence on imports and to stem a decline in oil and gas tax receipts as output from the mature North Sea basin dwindles.A third of Britain's gas needs can come from its own shale gas by the early 2030s if government policies and economic growth allow firms to invest in gas exploration, the National Grid said this month.

Britain's technically recoverable shale gas resources are estimated at around 26 trillion cubic feet and the government has offered tax breaks to drive investment in a sector which has transformed the US energy market.

However, Britain is still in the early stages of exploring for shale gas and opposition has grown on grounds that it is potentially harmful to the environment and after one project triggered earth tremors.

As MRC wrote previously, in late December 2012, the UK's Energy Secretary, Edward Davey, lifted a ban on the drilling for shale gas in the country, thus, giving green light to gas "fracking". We remind that the ban was put in place after the UK's first project near Lancashire caused tremors last year.

In early 2014, Total, Europe’s third-largest oil company, acquired a 40% interest in two shale gas exploration licenses in the UK. The acquisition marks the French oil and gas firm’s first entry into shale gas exploration in the UK, while the company is already involved in shale gas projects in the US, Argentina, China, Australia, Poland and Denmark.

Besides, INEOS Group is considering investing in UK shale-gas exploration to secure raw materials for its chemicals operations in the country after a shortage threatened to close a plant employing at least 800 people.
MRC

MOSCOW (MRC) -- Group DF, the industrial business of Ukrainian tycoon Dmitry Firtash, may be forced to sell off Eastern Europe’s biggest producer of titanium oxide, Crimea Titan following the Russian invasion of the Crimea, said Europeanplasticsnews.

Crimea Titan, a supplier of the plastics industry intermediate chemical to customers across Europe, is one of two group companies isolated by the territory’s occupation. The TiOx producer has been unable to obtain vital feedstock supplies of ilmenite concentrate from companies across the new border with Ukraine.

Since the Russian takeover, Group DF has also had major difficulties trying to manage the Titan plant in Armyansk in northern Crimea, as well as soda ash producer Crimea Soda Plant, its other local business incorporated in Crimea.

"We are a Ukrainian group and that’s why we will certainly act according to Ukrainian laws. In any case, if we cannot manage these companies, we will be forced to sell them," commented Group DF’s managing director Borys Krasnyanskiy.

He admitted the group is experiencing problems in paying salaries to its Crimean employees. "As you know, the hryvnia (the Ukraine’s currency) is no longer in circulation. As a Ukrainian company registered as a legal entity in Kiev, Crimea Titan, for instance cannot make payments in Russian currency," he explained.

In April, the local subsidiary, formerly registered in Armyansk, was re registered in the Ukraine capital Kiev because of the Russian occupation. Crimea Soda Plant kept its legal address in the Crimea.

Private Joint Stock Company "Crimean Titan" was found in August, 2004. 100% of the shares belong to Ostchem Germany GmbH, a member of the Group DF. The main activity of PJSC "Crimean Titan" - the production of titanium dioxide pigment grades, which is used in paint, rubber industry, plastics industry and many other industries.
Titanium dioxide accounts for about 90% of the companie's total exports. The company supplies its products to more than 60 countries.
MRC

MOSCOW (MRC) -- LyondellBasell, the world’s biggest maker of polypropylene plastic, has delayed the start-up of expanded production at its ethylene plant in La Porte, Tex., until later this year, as per Plastemart.

A mechanical issue with a compressor at the plant was partially to blame for the extended turnaround at La Porte, as per the company.

The revised timeline for the newly expanded plant project, which was scheduled to begin production this summer resulted from a delay in the completion of extensive scheduled maintenance at the La Porte plant during the second quarter. The company expects to begin production from its 800 million lb/year La Porte ethylene during this year’s third quarter.

While the company said its third-quarter earnings would be negatively impacted by the delayed start-up at La Porte, it did not disclose a firm date for when production at the plant would begin.

The La Porte project is the first of three ethylene expansions LyondellBassel has under way, which include projects at its plants in Channelview and Corpus Christi, Tex., all of which are benefitting from rising North American shale gas production.

As MRC informed previously, LyondellBasell Industries has posted second-quarter earnings that topped analysts’ estimates as margins widened on higher prices. Net income was USD2.23/share, compared with USD1.61 a year earlier, London-based LyondellBasell said in a statement Friday. Income from continuing operations was USD2.22, which exceeded the USD1.92 average estimate of 18 analysts compiled by Bloomberg. Sales were USD12.1 billion, compared with USD11.1 billion a year earlier, beating the USD11.5 billion average estimate.

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) - Polyethylene terephthalate (PET) imports in Kazakhstan were 30,500 tonnes in the first half of 2014, up 15% compared to January-June 2013, according to ICIS-MRC Price Report.

The share of Chinese PET chips occurred for about 58% from the total imports in Kazakhstan over the reported period. Total imports of PET from China in the first half of the year reached 17,900 tonnes. Chinese PET was popular among local converters first of all because of its lower prices compared with other Asian material.

However, demand for South Korean PET has improved this year. Imports of Korean PET reached 12,700 tonnes in the first half of the year, up 40% compared with the same time a year earlier.

Buying activity was seasonally strong in July. Traders have increased prices on price rise in China.

Spot prices for PET in Kazakhstan were heard in the range of tenge (Tenge) 350,000-358,000/tonne CPT Astana, including VAT.
MRC