RusVinyl launches PVC production

MOSCOW (MRC) -- The Russian-Belgian plant RusVinyl (Nizhny Novgorod region) has started commercial production of suspension PVC (SPVC), reported MRC analysts.

Market participants said RusVinyl had started commercial production of SPVC at its site in the Nizhny Novgorod region. The official opening ceremony of the plant is scheduled for 12 September. Trial runs at the plant's polyvinyl chloride (PVC) production began in early August.

Meanwhile, the first shipments of on-spec PVC to end-users have already started. At the same time, the plant's capacity utilisation will be low so far, particularly, in September, because of a number of factors.

LLC "RusVinyl" is a joint Russian-Belgian venture founded by SIBUR, Russia's largest petrochemical company, and the Belgian company SolVin, a leading PVC producers in Europe. The project started in 2007 and was targeted for a construction of a plant with the annual capacity of 300,000 tonnes of PVC, 30,000 tonnes of emulsion PVC and 225,000 tonnes of caustic soda.
MRC

MOSCOW (MRC) -- With immediate effect, BASF, the world's petrochemical major, is increasing its European sales prices for methylamines and methylamine derivatives, reported the company on its site.

Thus, the price increase looks, as follows:

- methylamine (Mono-, Di-, Tri-) - by EUR50/tonne;
- dimethylaminopropylamine (DMAPA) - by EUR40/tonne;
- dimethylethanolamine (DMEOA) - by EUR30/tonne;
- dimethylacetamide (DMAc) - by EUR40/tonne or in the corresponding value in local currency if existing contracts allow.

Methylamine and methylamine derivatives are versatile chemical intermediates with a wide range of applications, such as crop protection and water treatment agents as well as personal care products. They also prove valuable in the production of feed additives and organic solvents. BASF produces methylamines and their derivatives at its sites in Ludwigshafen, Germany; Geismar, Louisiana, USA and Nanjing, China.

As MRC informed previously, BASF raised its European sales prices for Ethyleneamines (EEA) in June 2014. The price increase was, as follows: ethylenediamine (EDA) - by EUR50/tonne, diethylenetriamine (DETA) - EUR50/tonne or by the equivalent amounts in local currency.

Ethyleneamines are high-class intermediates used in the manufacture of crop protection agents and paper chemicals, surfactants for detergents and cleaning products, process chemicals for gas treatment, lubricants and cement additives as well as active pharmaceutical ingredients. BASF produces ethyleneamines at its Verbund sites in Antwerp, Belgium and Nanjing, China.

BASF is the world’s leading chemical company. Its portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas. BASF had sales of about EUR74 billion in 2013 and over 112,000 employees as of the end of the year.
MRC

MOSCOW (MRC) -- Shell Chemicals has applied for a permit to build two docks and 24 smaller moorings for barges on the Ohio River near the site of its proposed petrochemical complex in Center and Potter townships, as per Washingtontimes.

The application is being reviewed by the Army Corps of Engineers, which estimates a decision could be made in 120 days, as per spokesman Josh Shaffer. It includes excavation, grading and installing culverts in 2.5 miles of streams and on 4.3 acres of wetlands, and building a compensating stream and wetlands site in Avella, Washington County. Shell also must obtain a permit from the Environmental Protection Agency for the project.

The oil giant proposed building the plant on the site of a closed zinc plant owned by Crafton-based Horse­head Corp. Shell spokeswoman Kimberly Windon said the application is one part of the process the company is following to obtain permits and gather information before it can make a decision on building the plant. It would convert ethane pulled from the Marcellus shale into chemicals to make plastics and other products.

Shell spokesman Michael Marr says getting the necessary permits is a "prerequisite" for Shell to make a "final investment decision."

Shell has said it may take years to decide whether to build the plant.

As MRC wrote before, Vitol Group, the world’s largest independent oil trader, is considering a bid for some of Royal Dutch Shell's Australian downstream operations. Shell, Europe’s biggest oil company, is stepping up asset sales after spending a record USD45 billion on projects and acquisitions last year. Its earnings from refining and marketing dropped by almost half to USD892 million in the three months to September.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC

MOSCOW (MRC) -- Imports of suspension polyvinyl chloride (SPVC) into Russia fell over the first eight months of 2014 by 33% year on year. Imports of polyvinyl chloride (PVC) from the USA and Europe accounted for the greatest decrease in shipments, according to MRC DataScope.

August SPVC improts to the Russian market dropped to 34,850 tonnes versus 36,300 tonnes a month earlier. The overall SPVC imports to the Russian Federation decreased to 196,700 tonnes from January to August 2014, down by a third year on year. Imports from the United States and Europe fell significantly, whereas Chinese producers managed to increase their sales of resin to the Russian Federation on the back of lower export prices.

The geography of shipments looks the following way over the first eight months of 2014.

Shipments of acetylene PVC from China dropped to 22,800 tonnes in August from 25,400 tonnes in July because of railway transportation problems of some producers. Imports of Chinese acetylene resin to the Russian market rose by 5% from January to August 2014 to 117,600 tonnes. Stable export pricing of Chinese producers and limited abilities of Russian producers allowed Chinese producers to increase their sales in Russia.

PVC imports from the USA increased significantly over the past two months, last month's imports of North American PVC to Russia reached 8,200 tonnes versus 6,800 tonnes in July. However, the overall PVC shipments from the United States to the local market slumped over the stated period to 41,400 tonnes, down by 71% year on year. Relatively high export PVC prices and the devaluation of the Russian rouble made imports from the United States unprofitable for Russian companies. Even given the September reduction of the import duty (to 6.5% from 10%), purchasing of North American PVC was unprofitable for most Russian companies.

PVC imports from Europe remained quite low because of higher prices and were about 3,200 tonnes in August. The overall imports of European SPVC to the Russian market reached 26,300 tonnes over the said period versus 27,300 tonnes over the same period of 2013.

MRC

MOSCOW (MRC) -- Houston-based Appalachian Resins Inc has agreed to lease about 50 acres of land in the Salem Township of Ohio to build its planned USD1 billion ethylene and polyethylene production facility, the company confirmed in an emailed statement to trade publication DownstreamToday.

Appalachian Resins plans to start operating the facility in early 2019, aiming to process around 18,000 barrels per day of ethane into ethylene and polyethylene to produce about 600 pounds per year.

The company earlier this year announced that it would build the plant in West Virginia, making use of natural gas from the nearby Marcellus and Utica shale formations.

"There is no difference in our development activities, we have essentially only moved across the Ohio River," chief executive James Cutler said.

"We will not be integrating with an existing operating (brownfield) facility but will be more of a greenfield location. However, we will have improved rail facilities," he added.

According to Cutler, the company decided to move the location of the planned facility to Ohio because of business and commercial reasons and to accommodate a larger production facility, but the West Virginia site only has space for a 500 million pound plant, he said.

Appalachian Resins is a start up company that is developing an integrated ethylene and polyethylene production facility. The company primarily operates in the Plastics Materials and Basic Forms and Shapes Merchant Wholesalers industry.
MRC