Consumption of PA 6 in Russia decreased by 12% in the first three quarters of 2014

MOSCOW (MRC) - Russia's consumption of polyamide 6 (PA 6) in Russia declined to 32,600 tonnes in January-September, down 12% year on year, according to MRC ScanPlast.

At the same time, the share of the Russian PA 6 was 94% from the total consumption of the material over the reported period; in the same time in 2013 it was 92%. Demand for Russian PA 6 has decreased to 30,500 tonnes in January-September 2014, down 10% year on year. Average monthly demand for PA 6 in Russia is about 3,500 tonnes.

Russia is a net exporter of PA 6. Exports of PA 6 from Russia were 76,700 tonnes in January-August 2014, up 17% year on year.

Russia's production of PA 6 increased to 107,000 tonnes over the reported period, up 8% year on year. One of the main reasons for the reduction of PA 6 consumption in Russia was its high price amid weaker economic situation in the country.

In this regard, converters had to buy material at more affordable price or reduce the volume of PA 6 consumption.
Russia's main producer of primary PA 6 is KuibyshevAzot. The company's share in the Russian production of PA 6 in 2013 was 99%.

PA 6 is used for the production of a wide range of products: nylon industrial yarn, composite materials with different properties (impact-resistant, cold-resistant, water-resistant, fire-retardant), textile fibers, polymer film.

MRC

MOSCOW (MRC) - Devaluation of the rouble in Russia resulted in a price rise for imported polystyrene (PS), according to ICIS-MRC Price Report.

Imported polystyrene, which entered the market in October, grew in price almost every week. Importers had to pay more, despite the fact that prices in foreign currencies remained steady.

According to ICIS-MRC Price Report, prices for high impact polystyrene (HIPS) by LG production was in the range of Rb106,000-108,000/tonne CPT Moscow, including VAT. The same price range was typical for HIPS from Polimeri Europa production.

Extrusion grades for Korean general purpose polystyrene (GPPS) from Styrolution (Polystyrol 168 N) at the current dollar exchange rate were in the range of Rb94,700-96,000/tonne CPT Moscow, including VAT.

Demand for expandable polystyrene (EPS) was strong. Prices for EPS from Asian producers Loyal and Wuxi were heard in the range of Rb92,000-95,500/tonne CPT Moscow, including VAT.

Some traders had to increase the low end of the price to Rb95,000/tonne CPT Moscow for November delivery on rising costs for the feedstock in the connection increase of the currency exchange rate.

Market players did not exclude further rise in prices in roubles. On Monday, the exchange rate from Centrobank rose to Rb41.81=USD1. Centrobank increased the euro exchange rate to the level of Rb52.9=EUR1.

MRC

MOSCOW (MRC) -- Badlands NGL has announced the development of a North Dakota manufacturing plant that will convert ethane, a by-product of natural gas processing, into polyethylene (PE), reported Hydrocarbonprocessing with reference to the announcement of the state governor's office.

Badlands NGL, LLC, and its partners expect to invest USD4 billion to build the PE manufacturing facility in North Dakota. The project will be the largest private investment in state history.

The value-added manufacturing plant will tap into North Dakota’s abundant supplies of liquid natural gas to source ethane. The facility will convert ethane gas to low-density and high-density plastics (LDPE and HDPE), which are used to make a wide range of end products for consumers and industry.

The facility will be able to produce 1.5 million tpy of polyethylene, or 3.3 billion lb/year, and will employ 500 highly trained people in manufacturing, marketing, administrative, safety, financial and executive positions.

The project will take at least three years for full development.

Badlands intends to market the majority of the polyethylene products domestically, but product will also find its way to markets in Asia, South America and Europe. Project developers say that the plant’s location in North Dakota will enable them to efficiently ship to world markets from the Pacific Northwest and from Atlantic ports.

"Badlands is proud to bring this manufacturing facility to North Dakota," said William Jeffrey Gilliam, CEO of Badlands NGL. "We are committed to maximizing the value of Bakken ethane for producers, their midstream partners and all gas processors. This facility is the solution needed to add value to North Dakota’s ethane supply and make it a commercially marketable product".

In developing the world-class manufacturing plant, Badlands is working with two strategic partners, Tecnicas Reunidas (TR), which is based in Madrid, Spain, as well as Vinmar Projects of Houston, Texas.

TR, one of the largest petrochemicals and polymers contractors in the world, is completing a preliminary engineering analysis for Badlands. This work is scheduled for completion in 2014 and will include technology evaluations, engineering and planning, and final site selection.

As MRC reported previously, in August 2014, Malaysia's Petronas awarded Tecnicas Reunidas (TR) a contract for the engineering, procurement, construction and commissioning (EPCC) for a refinery package in Petronas’ refinery and petrochemicals integrated development (RAPID) project in Pengerang, Johor. The EPCC scope includes all the hydrotreating units, catalytic reforming unit, hydrogen production units, saturated gas plant, interconnection and flare for the refi
MRC

MOSCOW (MRC) -- Mexican oil company Pemex on Friday announced a third-quarter loss of more than USD4.3 billion, as well as a continued drop in production, said the company in its press release.

The USD4.32-billion loss was 52.5% greater than that registered in the same period a year earlier, according to a Pemex statement.

Pemex has seen huge losses since last year as its oil production has steadily dwindled.

In the third quarter, crude production averaged about 2.4 million barrels a day, which is 4.3% less than in the third quarter of 2013, a company executive, Luis Ramos, said in a phone call with investors.

A decade ago, production was at 3.4 million barrels a day. To boost energy production, the Mexican government has launched a sweeping overhaul of the energy sector, ending the 76-year-old state monopoly on oil drilling and reopening the sector to foreign companies.

Pemex, the world`s seventh-largest oil producer, announced losses of USD4 billion in the second quarter.

In 2013, total losses were USD12.8 billion.

We remind that, as MRC informed earlier, in Semtember 2013, Mexico's state-owned oil Pemex Petroquimica and Mexichem entered into a joint venture, which will enable greater competitiveness of the domestic petrochemical industry in the global market through the integration of a new company, which will create value to the chlorine-vinyl chain. The joint venture includes a cash investment and assets contribution up to the amount of USD518 million, in order to modernize the Pajaritos complex.

Pemex, Mexican Petroleum, is a Mexican state-owned petroleum company. Pemex has a total asset worth of USD415.75 billion, and is the world's second largest non-publicly listed company by total market value, and Latin America's second largest enterprise by annual revenue as of 2009. Company produces such polymers, as polyethylene (PE), polypropylene (PP), polystyrene (PS).
MRC

MOSCOW (MRC) -- Sadara Chemical Company (Sadara), now building the largest chemical complex in the world ever constructed in a single phase, recently headlined the Gulf region’s first forum focused on ethylene: the Ethylene Middle East Technology 2014 (EMET) Forum, as per Saudigazette.

The forum, held in Manama recently under the patronage of Sheikh Ahmed bin Mohammed Al Khalifa, Finance Minister and Minister in Charge of Oil and Gas Affairs in Bahrain, brought together more than 450 ethylene players from around the region and the world, providing an ideal platform for sharing knowledge, best practices and experience in one of the most growth-oriented industries in the region.

Commenting on the event, Ziad said "the Middle East today accounts for almost 20 percent of global ethylene capacity compared to 12 percent a mere five years ago and is the world’s 3rd largest region for ethylene production. And it continues to grow. By capitalizing on the abundance of natural resources, cost effective feedstock pricing, strong regulatory and industrial infrastructure and close proximity to markets with growing demand for our products, we see plenty of opportunity to not only further develop the chemicals industry, but to specifically diversify Saudi Arabia’s role in it."

Ziad engaged four panelists in discussing the future of the industry in topics ranging from specific technical aspects of equipment being used, to operational reliability and future market trends.

He said "the Middle East, and specifically the GCC region, has many unique attributes that combine to make it the perfect hub of the global petrochemical industry. This conference has provided the petrochemical industry players including producers, service providers and customers with the perfect opportunity to meet, learn and collaborate to create future value in the ethylene industry."

As MRC wrote before, Sadara is building a world-scale, fully integrated chemicals complex in Jubail Industrial City 2, Kingdom of Saudi Arabia. The complex will be comprised of 26 manufacturing units, will possess flexible cracking capabilities and is expected to produce more than 3 million metric tons of high-value performance plastics and specialty chemical products. The first production units are expected to come on-line in the second half of 2015, with full production starting in mid-2016.

Sadara is a joint venture between the Saudi Arabian Oil Company (Saudi Aramco) and The Dow Chemical Company with a total investment of about USD20 billion.
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