PP production in Russia increased by 19% in January - October 2014

MOSCOW (MRC) - Production of polypropylene (PP) in Russia increased to 833,800 tonne in In first ten months of this year, up 19% year on year, compared to the same period of 2013. The largest increase in production volumes showed new production sites in Omsk and Tobolsk, according to MRC ScanPlast.

October PP production in Russia rose to a record level in history, and reached 109,600 tonnes on the back of the resumption of production at Stavrolen (100,500 tonnes in September). Total PP production in Russia reached 833,800 tonnes in January - October 2014, compared with 698,400 tonnes year on year. Such a significant rise in production resulted from the increase in the production rates at Poliom and Tobolsk-Polimer, launched in 2013.

Structure of PP production over the reported period was as follows. Tobolsk-Polymer (SIBUR) came close to the 100% production rates in October, having produced 43,600 tonnes of PP. Total PP production at Tobolsk-Polymer was 194,400 tonnes in January - October 2014.

Poliom (GK Titan, Omsk) increased PP production in October to 17,500 tonnes, compared with 15,800 tonnes in September. The producer's PP output was 142,800 tonnes in the first ten months of 2014, up 62% year on year.

PP production at Nizhnekamskneftekhim and Ufaorgsintez increased by 3% in the first ten months of the year, reaching 177,600 tonnes and 100,700 tonnes respectively.

Tomskneftekhim because of many factors, including the high level of capacity utilisation, kept its PP production at the last year level - 104,500 tonnes of PP in the first ten months of this year.

Neftekhimia (Kapotnya), on the contrary, reduced PP production in January-October by 11% to 90,500 tonnes.

Stavrolen resumed PP production on 13, October, following long time emergency shutdown. The producer's PP production was 5,400 tonnes in less than a month of work. The producer's PP production was 23,400 tonnes in January-October 2014.


MRC

MOSCOW (MRC) -- Imports of general purpose polystyrene (GPPS) and high impact polystyrene (HIPS) to the Ukrainian market decreased by 16% over the first ten months of 2014 and totalled 21,500 tonnes, according to ICIS-MRC ScanPlast report.

Market players said buying activity remained very low in the GPPS and HIPS markets in October. The overall October imports of GPPS and HIPS to Ukraine totalled 2,100 tonnes versus 2,500 tonnes in September.

Nizhnekamskneftekhim remained the main supplier of material for Ukrainian polystyrene (PS) converters. Imports of Russian GPPS and HIPS of Nizhnekamskneftekhim were 17,000 tonnes from January to October 2014, down by 300 tonnes year on year. Styrolution is the second largest PS supplier, its imports totalled 1,200 tonnes, down by 2 times year on year.

The military actions in the east of Ukraine and the general deterioration of macroeconomic figures in the economy have negatively affected the consumption of material. Stirol (Gorlovka), the only Ukrainian PS producer, continued to be idle. GPPS and HIPS were not produced in Ukraine. The plant will not resume its production this year. The plant is located in the disputed territory between the conflicting parties. The infrastructure in the region was significantly damaged, therefore, the launch of the plant in 2015 remains in question.
MRC

MOSCOW (MRC) -- ExxonMobil Chemical Canada is allocating sales of rotational and injection molding high density polyethylene products produced at its Sarnia plant, following operational difficulties at the site, said Plastemart, citing a letter to customers dated 24 November.

ExxonMobil said it is "currently assessing the full impact of our polyethylene supply capability" and will determine allocation levels at a later date.

The plant experienced a small "flash fire" on 13 November, which was contained to the polyethylene unit. All production at the unit has stopped as it undergoes a period of unplanned maintenance, a spokesperson said, adding there is no estimate as to when production will resume. In the meantime, ExxonMobil will fill orders with resin from other production facilities.

As MRC wrote before, Foster Wheeler has announced that a subsidiary of its global engineering and construction business has been awarded an engineering, procurement, and construction (EPC) contract by ExxonMobil Petroleum & Chemical (Esso) to upgrade its Antwerp refinery in Belgium.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.

MRC

MOSCOW (MRC) -- BASF is one of the first European manufacturers to have switched its entire portfolio of polystyrene-based insulation products for the European market to a new flame retardant, nine months ahead of the deadline laid down in the EU REACH Regulation on chemicals, as per the company's press release.

Both EPS (expandable polystyrene) products (Styropor and Neopor) and XPS (extruded polystyrene) products (Styrodur) will be manufactured in Europe using a polymeric flame retardant (PolyFR), which has a much better environmental profile than the HBCD (hexabromocyclo­dodecane) used in the past.

According to Giorgio Greening, Global Business Unit Styrenic Foams: "By switching to PolyFR, we can guarantee the supply of eco-efficient thermal insulation products for sustainable building projects in the future. Energy efficiency in the commercial and residential construction sector is now a bigger challenge than ever for the entire value chain. As far as Styropor and Neopor are concerned, it is our job, as a raw material manufacturer, to supply our customers, i.e. insulation material manufacturers, with a high-quality material with optimal properties."

BASF completed the switchover to the new flame retardant in close liaison with its customers. BASF had already switched most of its EPS range by March of this year and has already supplied customers throughout Europe.

Another PolyFR manufacturer has recently announced that it has started up a new production line. This means that the global demand for PolyFR can be satisfied.

With PolyFR, it is possible as before to manufacture insulation materials that meet the strict fire regulations applicable to construction products. It will be possible in future to manufacture insulation materials with this flame retardant that meet class B1 specifications under German standards ("schwerentflammbar": difficult to ignite) and Class E under European standards.

As it is classed as a POP (persistent organic pollutant) under the UN Environment Program and as a svhc (substance of very high concern) under the REACH regulation the use of HBCD as a flame retardant in the EU will be prohibited as of August 21, 2015 and PolyFR, which is harmless, will be used instead . This is the outcome of several years of testing and development supported by BASF.

Although handling of the flame retardant HBCD as such is prohibited, insulation containing HBCD is harmless to humans and the environment, both during use and during removal and energy recovery. That is because the flame retardant is embedded in the polymer matrix.

As MRC wrote before, in May 2014, BASF's first Styrodur plant in Tudela, Spain, in Tudela, Spain, completely switched its production to new flame retardant.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF had sales of about EUR74 billion in 2013 and over 112,000 employees as of the end of the year. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA) and Zurich (AN).
MRC

MOSCOW (MRC) -- The overall imports of polyethylene (PE) into the Republic of Belarus decreased by 2% over the first nine months of 2014. The high density polyethylene (HDPE) market showed negative results, while demand for other PE grades increased this year, reported MRC analysts.

September PE imports to Belarus totalled 11,700 tonnes versus 9,400 tonnes a month earlier. The overall PE imports decreased from January to September 2014 to 79,300 tonnes from 81,000 tonnes over the same period a year earlier.

The structure of PE imports to Belarus by grades looks the following way over the said period.

September imports of low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) rose to 5,000 tonnes under the pressure of seasonal factors from 4,400 tonnes in August. The overall imports of these PE grades reached 38,100 tonnes from January to September 2014 versus 33,300 tonnes a year earlier. Producers from Saudi Arabia (22,500 tonnes) and Russia (about 5,400 tonnes) are the main PE suppliers to the local market.

HDPE imports rose to 6,600 tonnes in September versus 5,000 tonnes a month earlier. This significant increase in imports was caused by scheduled outages for maintenance at Russian plants, which share exceeds 40% in the local market. The overall HDPE imports to Belarus fell to 41,200 tonnes over the stated period, down by 13.5% year on year.
MRC