Imports of polyamide in Russia continue to fall

MOSCOW (MRC) - Imports of unfilled polyamide (PA) and polyamide plastics (PA plastics) to the Russian market decreased to 10,900 tonnes in the first ten months of the year, down 14% compared to the same period last year, according to MRC DataScope report.

Almost half of the total imports of PA and PA-plastics in Russia goes for the production of food packaging film (sausage casings and multilayer packaging). Whereas PA copolymers supplies occured for 25% share, and PA6 - 22% from the total imports in Russia. Russia's imports of PA 6 decreased to 2,600 tonnes in January-October 2014, down 26%year on year.

Russia's imports of PA-copolymers decreased to 5,900 tonnes in January-October, down 9% year on year. The only producer of PA 6 in Russia, Kuibyshev Azot, supplies to the domestic market polyamide Volgamid F34, suitable for food package. This polyamide belongs to the group of engineering plastics. These materials are in the higher price range than standard bulk polymers due to the complexity and feedstock costs.

Most of the PA imports to the Russian Federation carried out from Europe. Because of the devaluation of the rouble converters had to reduce their consumption of imported PA and look for polymer analogs to decrease production costs and improve margins.

MRC

LLDPE imports in Russia increased 2% in January - October 2014

MOSCOW (MRC) - Imports of linear low density polyethylene (LLDPE) in Russia grew by 2% in the first ten months of this year.
A significant increase in demand for LLDPE was seen from the producers of the overall rotomoulding products, the key sector - films production grew only by 2%, according to MRC analysts.

October imports of LLDPE in the Russian market decreased to 18,000 tonnes, compared with 20,000 tonnes in September. Total LLDPE imports in the country increased to 177,800 tonnes in January - October 2014, compared to 173,900 tonnes year on year. Demand from key customers - film producers grew by only 2%, while demand for polyethylene from the producers of overall rotomoulding products increased by 12%.

Structure of LLDPE imports over the reported period was as follows. Russia's imports of film LLDPE decreased to 16,800 tonnes in October, compared with 17,200 tonnes in September on the back of an decrease in purchases from producers of stretch film. Total film LLDPE imports in the country were 157,100 tonnes in the first ten months of this year, compared with 153,900 tonnes year on year.

October imports of LLDPE for rotational moulding (production of overall products) fell under the pressure of a seasonal factor to 114 tonnes against 1,500 tonnes a month earlier. Total imports of LLDPE for rotational moulding in the country grew to 10,200 tonnes in the first ten months of the year, up 12% year on year. Key LLDPE importers in the Russiain market over the reported period were Lotte Chemical and SCG Chemicals.

Imports of LLDPE in the other sectors of consumption (lamination, cable extrusion, compounding, extrusion of pipes, etc.) declined to 10,600 tonnes in the first ten months of the year, compared to 11,000 tonnes in the same time a year earlier.
MRC

Braskem posts 8% sequential sales growth in Q3

MOSCOW (MRC) -- Higher sales volume and the Brazilian currency depreciating by 2% against the US dollar, helped Brazilian petrochemical producer Braskem, the largest thermoplastics resins producer in the Americas, clock 8% sequential sales growth in the third quarter of 2014, according to fibre2fashion.

Braskem said it posted net revenue of R12 billion dollars in the third quarter of 2014, or 8% higher from the second quarter of 2014.

Braskem's sales of thermoplastic resins, which include polyethylene, polypropylene and PVC rose 5% from same quarter of 2013, to reach 939 kilo tons in the reporting quarter.

"This reflects third-quarter seasonality and the stronger performance of industries related to durable goods and the performance accompanied the growth in the Brazilian market," Braskem explained.

Braskem's petrochemical complexes operated at capacity utilization rates of 90%, increasing 6% points from the second quarter of 2104.

The resumption of operations on one of the lines at the Triunfo Petrochemical Complex from a shutdown and higher capacity utilization rate at Duque de Caxias Complex offset the shutdown at the ABC Complex.

Braskem recorded EBITDA of R1.5 billion dollars, benefitting from the higher spreads of petrochemical products in the international market and sales volume growth. And its leverage, as measured by the ratio of net debt to EBITDA, declined slightly to 2.71 times.

In October, Fitch revised its rating outlook for Braskem from 'Negative' to 'Stable', reflecting the reduction in its leverage levels and continuous improvement in operating results.

Braskem posted net income of R230 million dollars in the third quarter of 2014, down 42% from the third quarter of 2013.

According to Braskem, despite the stronger demand in the third quarter, the scenario remains challenging due to the weak performance of the Brazilian economy. In this context, Braskem considers it important that the Brazilian government continue to work on measures to stimulate growth in the country's manufacturing industry, focusing on costs and the availability of feedstock and electricity.

"Specifically in the chemical industry, the challenge is even greater, given the competition from US petrochemical producers, which use competitive ethane derived from shale gas as feedstock," said Braskem CEO Carlos Fadigas.

Braskem invested nearly R2 billion dollars in the first nine months of 2014 on maintenance and expansion activities. Of this, around 60% or R1.2 billion dollars was spent on scheduled maintenance shutdowns at the Triunfo and ABC Paulista complexes. The rest was allocated to the expansion strategy in the Americas, which seeks to take advantage of competitive feedstock in Mexico.

As MRC reported previously, in July 2014, Braskem announced its plans for the construction of an Ultra High Molecular Weight Polyethylene (UHMWPE) plant at its site in La Porte, Texas. Construction is expected to last approximately 18 months with a targeted completion date during the first half of 2016.

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

Dow Chemical prefers LPG over US ethane as feed for European crackers

MOSCOW (MRC) -- Dow Chemical is not pursuing US exports of shale-derived ethane for its European ethylene crackers, instead focusing on enhancing liquefied petroleum gas (LPG) infrastructure, as per Hydrocarbonprocessing.

"In our view, ethane to Europe does not make economic sense," said Jim Fitterling, Dow's executive vice president. He spoke to reporters at the company's investor day in Lake Jackson, Texas.

Dow is already moving LPG from the US to Europe for use in its crackers, the company said.

"According to our math, people should be doing LPG cracking in Europe, versus going to ethane and building large ethane carriers," said Dow CEO Andrew Liveris.

Dow has already invested in expanding its LPG cracking capacity at its Tarragona complex in Spain, it said. The company can also crack LPG at its Terneuzen plant in the Netherlands.

Fitterling said more announcements would be made in 2015 in regards to expanding its European LPG infrastructure.

"When we look at it, it doesn't make sense for us to," said Fitterling. "Once you land ethane into Europe, the spread that you’re playing with is very thin compared to LPG."

Fitterling says that European LPG margins have grown by five times over the past four years.

Dow's choice to not pursue US ethane for its European operations is in contrast to companies including Sabic, Borealis and Ineos.

As MRC reported earlier, in May 2014, Ineos Olefins & Polymers Europe confirmed that it had reached an agreement with Evergas to expand its contract for a series of state-of-the-art ethane vessels, that are currently under construction in China, to six vessels. In January 2013 Ineos agreed a 15-year shipping agreement with Evergas for the transportation of ethane into Europe from the US Mariner East project, as the world’s first US ethane export contract.

Besides, in November 2014, Ineos Olefins & Polymers Europe confirmed that it had reached an agreement with Evergas to order an additional two state-of-the-art ethane vessels, known as "Dragon Class" ships, to bring US ethane from shale gas to its manufacturing plants in Scotland and Norway.

The Dow Chemical Company is an American multinational chemical corporation. As of 2007, it is the second-largest chemical manufacturer in the world by revenue (after BASF) and as of February 2009, the third-largest chemical company in the world by market capitalization (after BASF and DuPont). Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.
MRC

US sending team to investigate fatal leak at DuPont Texas plant

MOSCOW (MRC) - Four workers died and a fifth was hospitalized Saturday after a chemical leak at a DuPont facility near Houston, said Reuters.

The workers were performing routine maintenance tasks at the company's manufacturing facility in La Porte, Texas, when the chemical, methyl mercaptan, began to leak at around 4 a.m. Central Time (5 a.m. ET), spokesman Aaron Woods said.

Woods would not say how the company learned of the leak, but said that the Harris County Medical Examiner pronounced four of the workers dead at the scene.

The chemical, used to make insecticides and fungicides, is liquid when it is contained, but becomes a gas when it is released and mixes with oxygen, Woods said.

"This is a tragic loss for the entire Du Pont family," Woods said. "Our thoughts are with the family members as they continue to process the loss of their loved ones."

The company would not release the names, ages or genders of the victims, at the request of their families, Woods said. The company did not yet know how the chemical began to leak, he said.

"Our focus at the moment is solely on the employees and the family members that are impacted and the individual that is in the hospital," Woods said. "But as we move past that we will begin a full investigation to understand what went wrong and what we need to do to prevent this from ever happening again."

As MRC wrote before, DuPont had a phosgene release at its plant in Belle West, Virginia, resulting in one fatality.

DuPont, is an American chemical company that was founded in July 1802. DuPont developed many polymers such as Vespel, neoprene, nylon, Corian, Teflon, Mylar, Kevlar, Zemdrain, M5 fiber, Nomex, Tyvek, Sorona and Lycra. DuPont developed Freon (chlorofluorocarbons) for the refrigerant industry, and later more environmentally friendly refrigerants. It developed synthetic pigments and paints including ChromaFlair.
MRC