HDPE production in Russia decreased by 17% in January - August 2014

MOSCOW (MRC) - Production of high density polyethylene (HDPE) in Russia decreased by 18% in the first eight months of this year.
Emergency shutdown of the second-largest HDPE producer in Russia - Stavrolen was the main reason of the reduction in production volumes, according to MRC ScanPlast.

August HDPE production in Russia practically remained at the level of July at the level of 68,800 tonnes. Total HDPE production in Russia decreased to 579,100 tonnes in January - August of this year, compared to 697,600 tonnes year on year. The increase in HDPE production at the facilities of Kazanorgsintez and Gazprom neftekhim Salavat could not offset the shutdown of Stavrolen.

Structure of HDPE production by plants during the period was as follows.

The leader in the production remained Gazprom neftekhim Salavat (Gazprom), with HDPE production in August reached 4,700 tonnes; in July - August producer's capacities were shut for scheduled maintenance. Total HDPE production at Gazprom neftekhim Salavat grew to 59,700 tonnes in the first eight months of this year, up 38% year on year.

Kazanorgsintez (Taif) also kept a high level of capacity utilisation for the past few months, the August production of HDPE were 45,200 tonnes. Total HDPE production by the producer increased to 353,800 tonnes in the first eight months of 20014, up 8% year on year.

The third largest producer of HDPE in Russia, Nizhnekamskneftekhim (Taif) produced 117,700 tonnes in January - August of this year, compared with 121,000 tonnes year on year. The reduction in production resulted from the switching to the production of linear low density polyethylene (LLDPE) in March - April 20014.

As we previously wrote, Stavrolen (LUKOIL) in late February of this year, had to shut HDPE production because of an accident. According to unofficial information, the producer resumes HDPE production in January - February 2015.


MRC

MOSCOW (MRC) -- Amyris, Braskem and Michelin announced Tuesday that Braskem is joining the ongoing collaboration between Michelin and Amyris, said Hydrocarbonprocessing.

This collaboration was initiated to develop and commercialize renewable isoprene, sourced from various biomass as an additional sustainable pathway to produce isoprene. Under the terms of the agreement, Braskem, Michelin and Amyris will work together to develop a technology to utilize plant sugars, such as those found in Brazilian sugarcane or cellulosic feedstocks, to produce renewable isoprene.

Adding the expertise of Braskem, the largest petrochemical company in the Americas and global leader in the production of biopolymers, Amyris and Michelin aim to accelerate the industrialization of renewable isoprene.

Amyris will share its rights to commercialize the renewable isoprene technology developed under this collaboration with Braskem. Michelin will maintain certain preferential, but not exclusive, access to the renewable isoprene to be produced by this technology.

The companies said they will not disclose details of the agreement, including the financial contributions of each party. This joint project, with Amyris and Braskem, will give Michelin an additional sustainable sourcing channel for poly-isoprene for the production of quality tires, providing a high-performance, environmentally responsible material.

"With this new partnership, we join forces with Amyris and Michelin in the development of an innovative technology that strengthens our commitment to improve people's lives, creating solutions through sustainable chemistry," said Luciano Guidolin, vice president for polyolefins and renewables of Braskem.

With a proven track record in research in sustainable chemistry, Braskem notes that it has already an experience in the development of 100% renewable polyethylene.

As MRC wrote before, Braskem plans to build a new polyethylene (PE) plant at its existing complex in La Porte, Texas. The new plant will manufacture ultra-high molecular weight polyethylene (UHMWPE), making it the first time for Braskem to produce UHMWPE outside of its home base in Brazil.

Braskem is Brazilian main producer of polyethylene and polypropylene. In addition with ongoing plants located in both petrochemical complexes, in April 2008 Braskem opened a 300,000 metric ton polypropylene plant in the city of Paulinia (Sao Paulo).
MRC

MOSCOW (MRC) -- Bashkir Soda Company, Russia's second largest polyvinyl chloride (PVC) producer, has postponed the shutdown for scheduled maintenance works, according to MRC.

Bashkir Soda Company is the second largest PVC producer in Russia with the annual capacity of 210,000 tonnes (excluding a start-up of RusVinyl). The company planned to shut down its production for a three-week turnaround 10 September. Market participants said the company had decided to postpone maintenance works for October, but the exact dates of the outage have not been disclosed yet.

As reported earlier, Kaustik (Volgograd) intends to shut down its PVC production from 3 to 20 October. The plant's annual capacity is 90,000 tonnes.
MRC

MOSCOW (MRC) -- North America is the world's largest market of biopolymers, which consumed more than one-third of the total demand, as per Plastemart with reference to MarketsandMarkets.

US is the key consumer of biopolymers in North America. Packaging, bottling, fibers, and automotive are the application segments driving the demand for PLA, bio-PE, and bio-PET which in turn is pushing the demand for biopolymers within the region.

The growing concern for human health and safety in the region has also led to increased consumption of biopolymers. The biopolymers market is also up surging due to high penetration of material in industries like packaging and automotive which have further helped the biopolymers market to emerge in the region. Various innovations, developments, and expansions in different industries have in turn made the region a potential growth market for biopolymers and its products.

There are few global players in biopolymers market of which top players dominate the market. North America is the biggest biopolymers market; whereas, Asia-Pacific is one of the fastest growing biopolymer markets. NatureWorks (US), Braskem (Brazil), Metabolix (US), Meredian (US), Novamont (Italy) are the most active players between 2009 and 2013.

As MRC wrote before, last year, BASF also unveiled its plans to expand its business in the biopolymers market, since it presents another growth market. "We are currently stepping up research into a biodegradable, primarily biobased foam with properties similar to those of polystyrene foam for use as packaging for food and electric and electronic goods,"said Brudermuller.
MRC

MOSCOW (MRC) -- BASF, the world's petrochemical major, is in plans to shut its No 1 naphtha cracker for maintenance turnaround, reported Apic-online.

A Polymerupdate source in Germany informed that the plant is likely to be shut on September 11, 2014. It is planned to remain off-stream for around one month.

Located at Ludwigshafen in Germany, the cracker has a capacity of 220,000 mt/year.

As MRC informed previously, on 1 September 2014, BASF reported flaring at the largest of its two ethylene crackers
at Ludwigshafen site, Germany. The production at the cracker was not stopped. The flaring was caused by technical issues during the preparation for a two-week turnaround scheduled for September.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF had sales of about EUR74 billion in 2013 and over 112,000 employees as of the end of the year. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA) and Zurich (AN).
MRC