LLDPE imports to Russia rose by 2% from January to August 2014

MOSCOW (MRC) -- Imports of linear low density polyethylene (LLDPE) to the Russian market increased by 2% over the first eight months of 2014. Producers of large items and cable insulation accounted for a major increase in demand for LLDPE, according to MRC DataScope report.

August LLDPE imports to the Russian market dropped to 15,600 tonnes from 19,300 tonnes in July. The main reason for last month's lower imports is limited export quotas of the Middle Eastern producers.

The overall imports of this PE grade to Russia rose from January to August 2014 to 134,400 tonnes from 132,000 tonnes a year earlier. Local producers of large items by rotational moulding and producers of cables and wires significantly increased their imports this year, whereas demand from films producers grew minimally.

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

Last month's imports of film grade LLDPE dropped to 13,800 tonnes (16,500 tonnes in July) because of Middle Eastern producers' limited export quotas for PE for the production of irrigated stretch films. The overall film grade LDPE imports to Russia totalled 118,400 tonnes over the first eight months of 2014, up by only 1% year on year.

August imports of LLDPE for rotational moulding were about 1,000 tonnes (1,300 tonnes in July). PE shipments to this processing sector increased by 26% over the said period and totalled about 8,400 tonnes. Two Asian producers - Lotte Chemical and SCG Chemicals - remained the key suppliers to this market.

LLDPE imports to other sectors of consumption (lamination, cable extrusion, compounding, pipe extrusion, etc.) fell from January to August 2014 to 7,600 tonnes versus 8,400 tonnes a year earlier.

LLDPE imports to Russia are expected to go down further in September, which will still be caused by limited export quotas of Middle East producers, particularly, for PE for the production of irrigated stretch films, as well as by seasonally weaker demand in other sectors of consumption.

MRC

MOSCOW (MRC) - Production of polycarbonate (PC) in Russia was 43,800 in the first eight months of the year, remaining at the level of the previous year, according to MRC ScanPlast.

The only Russian PC producer, Kazanorgsintez (KOZ), has worked steady at the full capacity utilisation. The company can produce more than 6,000 tonnes PC with a wide melt flow index (MFI) range per month. The exception were July and August, when production was shut for scheduled maintenance works. Producer's capacity utilisation over these months was 70% and 50%, respectively.

Traditionally, in the structure of KOZ production prevails extrusion PC with MFI 5-7. Thus, the production of them in January-August 2013 occurred for 76% from the total producer's PC production. The remaining share occurred for injection moulding PC.
But the structure of production has changed over the same time this year.
Production of PC for sheet extrusion increased by 11% in the first eight months of the year, compared to the same time year on year, having taken 87% from the total producer's PC production over the reported period. At the same time, the production of injection moulding grades PC decreased by 32% in the first eight months of the year, taking 16% from the total PC production at Kazanorgsintez over the reported period.

Production of injection moulding grades shrank to the needs of the domestic market, which are about 900 tonnes per month, with two thirds of the it occurred for the imported material.

The former structure of production was oriented for the supply of injection moulding PC to foreign markets. Now the company aims to switch to the domestic market, which mainly uses extrusion PC.

MRC

MOSCOW (MRC) - Russia's largest producer of polyethylene - Kazanorgsintez (Taif) shuts the production of low density polyethylene (LDPE) for scheduled maintenance works, according to MRC analysts.

Company's customers said that Kazanorgsintez plans to shut down part of its LDPE capacities for turnaround from 19,September. The producer shuts production of 15313-003 grade LDPE (for the production of shrinkable film) from 19, September to 6, October; production of 15813-020 grade LDPE (for the production of general purpose films) will be shut from 19, September to 13, October. The capacities for the production of 10803-020 grade LDPE will not be shut.

Kazanorgsintez was founded in 1958 and is based in Kazan, the Russian Federation. Kazanorgsintez produces more than 38% of all Russian polyethylene and is its largest exporter. The company produces and sells high and medium density, linear low density, and bimodal high density polyethylene; polyethylene pipes and fittings for gas and water supply; butene-1. The company also offers phenol for producing caprolactam, diphenylpropane, medicines, synthetic resins, plasticizers, and herbicides. Further, the company offers ethylene, propylene, ethylene oxide, glycols, ethanolamines, cooling liquids, textile agents, proxanols-proxamines, and demulsifiers, as well as products for the primary preparation of oil–corrosion and paraffin deposits inhibitors.

Total LDPE production by Kazanorgsintez reached about 121,000 tonnes in the first eight months of 2014, down 19% year on year
MRC

MOSCOW (MRC) -- Eastman Chemical has completed a previously-announced capacity expansion of its Eastman 168 non-phthalate plasticizers at its manufacturing facility in Texas City, Texas, the company said on Thursday.

The expansion at the site increased the overall capacity of Eastman 168 by approximately 15%.

"We are pleased with the completion of this important expansion," said Jon Woods, director of Eastman's plasticizers business. "Since this expansion leveraged an existing asset, it was completed with minimal capital investment."

"With our view of global demand for DEHT at 500,000 tons in 2014, we see continued demand for non-phthalate plasticizers and expect the market to need our next phase of capacity expansion by mid-2016," he added.

"This additional capacity would also leverage the existing plants in Kingsport and Texas City and be a relatively low cost investment that would take our full capacity for Eastman 168 above 200,000 tons.

"The combination of our Kingsport and Texas City manufacturing allows Eastman to sustain its leadership position to serve both the North American and export markets, with Europe being a particular area of focus."

Non-phthalate plasticizers are broadly used in products such as toys, childcare items, food contact materials and medical devices, and are also used to provide flexibility to PVC in a wide variety of applications. End markets for non-phthalate plasticizers include building and construction, health and wellness, and a broad range of consumer products.

As MRC informed before, in August 2014, Eastman Chemical Company entered into a definitive agreement to acquire Knowlton Technologies, LLC. The company, which is located in Watertown, NY, is a leader in the design, accelerated prototyping and manufacture of wet-laid nonwovens in filtration, friction and custom designed composite webs.

Eastman is a global specialty chemical company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. Its market-driven approaches take advantage of world-class technology platforms and leading positions in attractive end-markets such as transportation, building and construction and consumables. Eastman focuses on creating consistent, superior value for all stakeholders. As a globally diverse company, Eastman serves customers in approximately 100 countries and had 2013 revenues of approximately USD9.4 billion. The company is headquartered in Kingsport, Tennessee, USA and employs approximately 14,000 people around the world.
MRC

MOSCOW (MRC) -- Petronas Chemical Group Berhad (PCG), Grupa Azoty Zaklady Azotowe "Pulawy" SA (Pulawy) and Sipitang Oil & Gas Development Corp. (SOGDC) has inked a memorandum of understanding (MoU) to conduct a joint feasibility study for producing urea and ammonia derivatives in Sipitang Oil & Gas Industrial Park (SOGIP) in Sabah, Malaysia, as per Hydrocarbonprocessing.

This non-binding MoU marks the beginning of a collaboration between PCG, Pulawy and SOGDC for the development of urea and ammonia derivatives for the Asian agriculture industry.

The parties will undertake a preliminary technical, economic, raw material supply, logistic, infrastructure and utilities study for the development of the petrochemical products.

"Grupa Azoty Pulawy has unique competence in the production and processing of urea," said Marian Rybak, president of Pulawy's board of directors.

"Our business strategy involves the production of high-value products based on urea as melamine and urea solution used to reduce exhaust emissions in cars and power plants," he added.

As MRC informed previously, in September 2014, SINOPEC Engineering said it formally entered into a package contract of engineering, procurement, construction and commissioning (EPCC) of an oil refining and petrochemical integrated engineering project with PRPC Refinery and Cracker Sdn. Bhd., a subsidiary of Petroliam Nasional Bhd, at a contract sum of about USВ1.329 billion. Project RAPID is located in the region of Pengerang, Johor, Malaysia.

RAPID is part of the bigger PETRONAS Pengerang Integrated Complex (PIC) development worth an estimated 27 Billion US Dollars, which comprises of RAPID and its associated facilities including the Pengerang Co-generation Plant (PCP), Re-gasification Terminal 2 (RGT2), Air Separation Unit (ASU), Raw Water Supply Project (PAMER), Crude and Product Tanks (SPV2) as well as central and shared Utilities and Facilities (UF). RAPID will consist of a 300,000 barrels per stream day refinery and petrochemical complex with a combined capacity of producing 7.7 mln tpa of various grades of products, including differentiated and specialty chemicals products such as synthetic rubbers and high-grade polymers.

Petronas, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company wholly owned by the Government of Malaysia. The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment.
MRC