Recycled polypropylene gets food contact approval from US FDA for 100%

MOSCOW (MRC) -- Alabama based KW Plastics' recycled PP has been approved by the US Food and Drug Administration for food contact at levels of up to 100%, said Plastemart.

The letter expands FDA’s non-objections to produce a post-consumer resin suitable for use in the fabrication of disposable food service items, under Conditions of Use C-G. In addition to the reusable food contact crates and pallets, appropriate applications for KWR621 FDA now include disposable cutlery, soup containers, and hot and cold drink cups, such as stadium cups.

"We are excited about the FDA’s decision to expand the conditions and the expanded opportunities this will bring our customers," Scott Saunders, General Manager for KW Plastics Recycling Division, said. "The demand for food grade PCR is growing each day. What may have seemed impossible a few years ago is a reality today. Achieving our second FDA NOL within 12 months is a testament to the investment and research KW Plastics commits to growing our industry."

As MRC wrote before, the polyethylene film recycling working group within the American Chemistry Council expects to see growth in thin film recovery and recycling. Chevron Phillips Chemical Co., KW Plastics Recycling, Mil-tek and Verdeco Plastics Inc. have joined the ACC's Flexible Film Recycling Group (FFRG), which already included major chemical and recycling names such as Dow Chemical Co., ExxonMobil Chemical Co., S.C. Johnson and wood-alternative decking company Trex Co. Inc.

Alabama-based KW Plastics is a major recycler and a supplier of plastic one gallon, quart, pint and half-pint containers for the paint and coatings industry.
MRC

Styron announces price increases for polystyrene and copolymers in Europe

MOSCOW (MRC) -- Styron, the global materials company and manufacturer of plastics, latex and rubber, and its affiliate companies in Europe has announced price increases for all polystyrene (PS) and copolymer grades, reported the company on its site.

Effective immediately, or as existing contract terms allow, the October contract and spot prices for the products listed below will increase as follows:

- STYRON general purpose polystyrene grades (GPPS), STYRON and STYRON A-TECH high impact polystyrene grades (HIPS) - by EUR20/tonne;
- MAGNUM ABS resins - by EUR30/tonne;
- TYRIL SAN resins - by EUR30/tonne.

The price increase responds to the rising costs of raw materials associated with the manufacturing of polystyrene and copolymers grades in Europe.

As MRC informed earlier, Styron announced price increases for all polystyrene (PS) and copolymer grades in Europe in July. Thus, the July contract and spot prices for the products listed below increased as follows:

- STYRON general purpose polystyrene grades (GPPS), STYRON and STYRON A-TECH high impact polystyrene grades (HIPS) - by EUR100/tonne;
- MAGNUM ABS resins - by EUR65/tonne;
- TYRIL SAN resins - by EUR75/tonne.

Styron is a leading global materials company and manufacturer of plastics, latex and rubber, dedicated to collaborating with customers to deliver innovative and sustainable solutions. StyronпїЅs technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Styron had approximately USD5.3 billion in revenue in 2013, with 19 manufacturing sites around the world.
MRC

The Russian HDPE market: September results

MOSCOW (MRC) -- Scheduled outages for maintenance at high density polyethylene (HDPE) plants in September did not lead to a further rise in prices in the Russian market. Supply of polyethylene (PE) was sufficient in the market, with the exception of injection moulding HDPE, according to ICIS-MRC Price report.

September is traditionally the most difficult month for Russian HDPE consumers because of shutdowns for maintenance works at a number of plants. This year was no exception, Kazanorgsintez and Nizhnekamskneftekhim shut down their production for a turnaround. However, these factors did not lead to a recurrence of the 2012's situation, when prices exceeded Rb100,000/tonne. The Russian market went through this period quite calmly, with the exception of the injection moulding sector, where there is still a stalemate situation.

Supply of film grade HDPE was excessive in the market last month. And outages for maintenance works at Tatar plants (Kazanorgsintez and Nizhnekamskneftekhim) did not affect the market balance. The Russian market virtually entered October with September prices of film grade PE: Rb82,500-84,000/tonne FCA, including VAT. There were also many offer prices for Middle Eastern film grade HDPE.

September was quite a hard month for the blow moulding HDPE market because Russian producers had suspended their shipments of this PE grade to the domestic market in August. In fact, the market was active in September only due to imports, deals for Middle Eastern blow moulding HDPE were done in the range of Rb84,500-87,000/tonne FCA, including VAT. Kazanorgsintez will resume its production next week after a turnaround, and, at the same time, the producer will also resume its shipments of blow moulding PE to the domestic market.

The injection moulding HDPE market was the most troubled in September. Russian producers had already ceased shipping material to the market in July. Therefore, stocks of Russian PE ran out completely in August. The market virtually lived because of imports, the price range was rather wide: from Rb83,000/tonne FCA Astrakhan, including VAT, for Iranian PE to Rb93,000/tonne FCA, including VAT, for Uzbek PE. Gazprom neftekhim Salavat supplied to the market quite a small lot of injection moulidng HDPE with low MFI in late September, but it did not help much to improve the market situation. October and, probably, November are also likely be difficult enough for the injection moulding HDPE market. According to unofficial information, Russian producers do not intend to produce injection moulding PE during the next two months.

Quite a difficult situation was also in the pipe grade HDPE market in September. On the one hand, PE supply, particularly, of natural PE100, was sufficient in the market last month (Rb80,000-82,500.tonne FCA, including VAT). On the other hand, prices of finished tubes of small and medium diameters virtually equalled the cost of feedstock in many regions. This factor greatly affected demand for pipe grade HDPE last month and was the key constraining factor in keeping this year's prices down in this segment.
MRC

European PP and PE prices rolled over in October for the CIS countries

MOSCOW (MRC) - European producers of polyethylene (PE) and polypropylene (PP) have left October prices at the roll over from the September level for CIS countries. Only in some cases, prices were slightly increased by EUR5-10/tonne, according to ICIS-MRC Price Report.

October contract prices for ethylene and propylene in Europe remained at the level of September, in spite of the serious decline in the oil price. Given the steady prices of monomers European producers announced a roll over of October export prices for PE and PP from the September level for the CIS markets. There were only in a few cases of the price increase of EUR5-10/tonne for low-density polyethylene (LDPE) and linear low density polyethylene (LLDPE).

Deals for LDPE last week were discussed in the range of EUR1,250-1,310/tonne FCA. Negotiations on October high density polyethylene (HDPE) were carried out in the range of EUR1,170-1,240/tonne FCA. Negotiations for the supply of homopolymer PP were carried out in the range of EUR1,190-1,250/tonne FCA.

Some producers continued to limit export quotas.

In general, ongoing weakening of the euro added advantage to the price cuts. Exchange rate of the euro against the dollar in September was on average at 1.29EUR=1USD, then in the beginning of October, this figure dropped to 1.26EUR=1USD. This factor has lowered the cost of the European polymers in dollar terms by 2%.

MRC

SIBUR decreased export EPS prices for October delivery

MOSCOW (MRC) - SIBUR-Khimprom (SIBUR group), the leading producer of expandable polystyrene (EPS) in Russia, decreased export prices for shipments in October, according to ICIS-MRC Price Report.

Producer's price offers for October delivery decreased by USD60-70/tonne, compared with the September level.
The price range from the producer was heard at USD1,950/tonne FCA Perm, excluding VAT.

Despite the already announced prices, buyers in foreign markets did not receive the material in the last few weeks.
Because of the shortage of expandable polystyrene in the Russian domestic market the company will send the main volumes to meet domestic demand.

Foreign buyers will have to wait for shipments from one to two weeks.

Good domestic demand for Russian EPS resulted from a seasonal factor as well as the price advantage, compared with the price offers for Asian EPS.

MRC