Russian market of extrusion PC continues to grow

MOSCOW (MRC) - Russia's consumption of polycarbonate (PC) was 66,500 tonnes in the first ten months of 2014, up 5% in the same period a year earlier, according to MRC ScanPlast.

Despite a weaker economy in the country and rouble devaluation, the consumption of PC granules for sheet extrusion showed steady growth.
In line with the reduction of imports (down 5% year on year) Russian converters increased the consumption of PC from the national producer Kazanorgsintez (KOS).

The share of the producer PC sheet extrusion sector increased from 63% to 67% in January-October 2014. Kazanorgsintez adopted a strategy of import substitution, and refrained from the deliveries to foreign markets and changed the production structure.

Kazanorgsintez increased the production of extrusion PC grades to 45,300 tonnes in the first ten months of the year, up 7% year on year.
The producer delivered 97% of the extrusion PC grades, made over the reported period.

At the same time, the company decreased the output of injection moulding PC almost two times in the first ten months of the year. Russian PC became more competitive compared to imported products because of the rouble devaluation.

Despite the increase in the delivery costs by Rb4/kg in November the Russian PC prices are significantly lower than the European or Asian material. The producer also gives convenient ways of payment for converters.

Kazanorgsintez recently signed an agreement with German BASF for delivery of stabilizing additives for PC production. With this connection, we can expect an expansion of the range of products and higher quality, which improves the sales.


MRC

MOSCOW (MRC) -- Production of high density polyethylene (HDPE) in Russia decreased by 20% over the first ten months of 2014. The forced outage at Stavrolen was the main reason for the lower output, as per MRC ScanPlast report.

October HDPE production in Russia totalled 47,900 tonnes versus 44,300 tonnes in September. Such low production figures in September and October were caused by a scheduled shutdowns for maintenance at Kazanorgsintez and Nizhnekamskneftekhim. Overall, Russian producers reduced their polyethylene (PE) output to 671,400 tonnes from January to October 2014 from 836,200 tonnes a year earlier. The increased production of all plants could not offset the forced February outage at Stavrolen.

The HDPE production structure by plants looks the following way over the stated period.

Kazanorgsintez, Russia's largest PE manufacturer, produced about 20,700 tonnes of HDPE. The plant's overall HDPE production rose over the the first ten months of the year by 6% to about 399,000 tonnes.

Nizhnekamskneftekhim significantly increased its capacity utilisation last month, raising the plant's PE output to 19,400 tonnes. The plant's overall production exceeded 149,000 tonnes over the said period, up by 2% year on year.

Gazprom neftekhim Salavat produced 7,800 tonnes of HDPE in October, the plant's overall output of this PE grade increased by 27% from January to October 2014 and totalled 75,500 tonnes.

As reported earlier, Stavrolen was forced to shut down its PE production because of an accident at the plant's ethylene unit on 26 February 2014. According to recent statements of the company's officials, the resumption of HDPE production is expected in March or April 2015. The plant's annual production capacity is 300,000 tonnes.

MRC

MOSCOW (MRC) - Imports of polypropylene (PP) in Ukraine decreased by 16% in the first ten months of this year, the decline in deliveries occurred for all PP grades, with the biggest drop for PP block copolymer, according to MRC DataScope.

Ukraine's PP imports have been decreasing since the surge in September. The decrease in PP purchases in foreign markets resulted from a seasonal factor and the problems with the purchase of currency in the country.

October PP imports in the country decreased to 10,000 tonnes, compared with 12,300 tonnes in September. Total PP imports in Ukraine decreased to 94,000 tonnes in January - October of this year, compared with 112,100 tonnes year on year. The largest drop in demand occurred for PP block copolymers because of the shutdown of some plants.

Structure of PP supplies over the reported period looked as follows. October imports of homopolymer PP in Ukraine decreased to 7,600 tonnes, compared with 10,400 tonnes in September. Total imports of homopolymer PP in the country decreased to 73,000 tonnes in the first ten months of this year, down 14% year on year.

The largest drop in demand occurred for the injection moulding sector (down 44% over the reported period), while demand for raffia remained at the last year's level. Key suppliers of homopolymer PP in the local market were producers from Saudi Arabia and Russia.

October imports of figure external supplies of block copolymers of PP did not exceed the level of 1,000 tonnes. Total imports of PP block copolymers in the country fell to 9,700 tonnes in the first ten months of the year, compared with 13,700 tonnes year on year.

Demand for extrusion copolymers for pipe and sheets production reduced more than two times. Demand for PP in the sector of injection moulding declined by more than 25%. The main suppliers were producers from Europe.

October imports of PP random copolymers in the country grew to 1,200 tonnes. Total imports of PP random copolymers in Ukraine were 8,500 tonnes in January - October 2014, compared with 10,100 tonnes year on year.

Demand from producers of PP pipes reduced by 29%; demand in the injection moulding sector fell by 11% over the reported period.

Total imports of other propylene copolymers over the reporting period were 2,700 tonnes, compared with 3,900 tonnes in the same time a year earlier.

MRC

MOSCOW (MRC) -- Azerbaijan is planning to commission rigs for the production of polypropylene (PP) and high density polyethylene (HDPE) on the territory of Sumgayit Chemical Industrial Park in 2016-2017, reported Azernews.

It was announced by Mukhtar Babayev, the Head of Azerbaijan’s state energy company SOCAR’s Azerkimya Production Association, the main manufacturer of chemical products in Azerbaijan last week.

He told Trend Agency that according to the plan, construction and commissioning of the new plants will take between two and two and one-half years.

Preparation is carried out and parts of the equipment have been already purchased. Contract works on production of high density polyethylene are underway as well.

"Under the plan, the rigs will be operational in 2016-2017," Babayev said. "Although a review of the plan is possible, but we do not know in which direction this review will be made."

Babayev had previously said that rigs for production of polypropylene will be commissioned first.

It is scheduled to accommodate 35-40 enterprises, which will create 10,000 new jobs on the industrial area of Sumgayit Chemical Industrial Park. The territory of Sumgayit Chemical Industrial Park will be divided into two parts - the administrative and social and industrial zones.

In order to increase the investment attractiveness of the park, its residents are exempt from income, land and property taxes for seven years. Also equipment and technology used in the park are exempt from value added tax. Two residents have already been registered there - SOCAR-Polimer and Azertekhnolayn limited liability companies.

As MRC wrote before, in early 2014, Foster Wheeler AG announced that a subsidiary of its Global Engineering and Construction (E&C) Group had been awarded a contract by STAR Rafineri A.S., a subsidiary of SOCAR Turkey, for project management consultancy (PMC) services for its grassroots Aegean Refinery to be built within the Petkim Petrokimya A.S. (PETKIM) facilities at Aliaga, Turkey. The refinery began its operations in the third week of November 2014, after a gradual start-up process.

The authorized capital of the SOCAR Polimer Company, which was established as part of the development of polymer production in Azerbaijan, was increased from 51 to 100 million manats. SOCAR, a 100% plant founder, sold 49% of the share capital to private companies.

SOCAR is keen on expanding operations in the retail oil products market abroad, and is involved in exploring oil and gas fields, producing, processing, and transporting oil, gas, and gas condensate, marketing petroleum and petrochemical products in the domestic and international markets, and supplying natural gas to industry and the public in Azerbaijan.
MRC

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex and rubber, has announced that it has named Angelo N. Chaclas as Senior Vice President and Chief Legal Officer effective January 1, 2015, reported the company on its site.

He will be a member of the company’s Executive Leadership Team. Chaclas succeeds Curt Shaw who is retiring at year end.

"We are extremely pleased to name a Chief Legal Officer with Angelo’s strategic understanding of Trinseo’s businesses and the chemical industry," said Chris Pappas, President and CEO of Trinseo. "His vast experience working across geographies and functional areas will be an asset to support our ongoing activity in capital markets, transactions, compliance, governance, intellectual property and other operational activities of the company worldwide."

Mr. Chaclas currently serves as Associate General Counsel and Chief Intellectual Property Counsel for Trinseo. During his tenure, Chaclas has had global responsibility for all intellectual property matters, working closely with the Research and Development organization on patents, trade secrets, trademarks, technology licensing agreements, and joint development agreements. He also managed commercial legal activities for several Trinseo businesses, and established internal best practices and optimized law firm relationships during the company’s start-up phase.

Prior to joining Trinseo in 2010, Chaclas was Deputy General Counsel and Chief Counsel for the software division of Pitney Bowes while leading its Intellectual Property, Technology Law and Procurement legal functions.

As MRC informed previously, Trinseo has reported its third quarter of 2014 financial results with revenue of USD1,3 million and adjusted EBITDA of USD62 million. Revenue in the third quarter was roughly flat to prior year as higher SSBR volume and a favorable foreign exchange impact were offset by lower price which was primarily driven by the pass through of lower raw material cost. Sequentially, revenue decreased by 3% due to lower sales volume, with seasonality and weaker economic conditions in Europe, as well as an unfavorable currency impact as the US dollar strengthened compared to the euro.

Formerly known as Styron, Trinseo previously announced plans to change the name of all Styron affiliated companies to Trinseo. Some, but not all, of the Styron companies have completed the name change process and are currently known as Trinseo; Styron companies that have not completed this process will continue to do business as Styron until their respective name changes are complete. Styron's operating companies also continue to do business as Styron at this time.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo’s 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.
MRC