HDPE prices increased in Russia in mid December

MOSCOW (MRC) - The first half of December was quite calm in the Russian market of high density polyethylene (HDPE). HDPE prices slightly increased in the second half of the month, and this trend is likely to continue next year, according to ICIS-MRC Price Report.

Buying activity in the Russian HDPE market has traditionally recovered in the early December, as many converters replenished their inventories. Some companies increased their HDPE purchases on the eve of the long New Year holidays.

Despite the increase in demand, the Russian HDPE producers rolled over their November prices for December. But in the second half of December PE prices began growing under the pressure of the next wave of rouble devaluation.

Earlier this week, the foreign exchange rate significantly fluctuated. Central Bank of the Russia tried to stabilise the dollar, including raising the key rate by almost 7%. Some commercial banks have temporarily suspended lending.

All of these factors put pressure on the Russian PE prices. Given the new rate of the dollar exports of HDPE became more profitable, and the producers expressed the need for price increases, citing the rising production costs (some producers use dollar in the price forming).

Negotiations on January contract prices began this week. Some market participants reported an increase in contract HDPE prices of Rb4,000/tonne.

The spot market also reacted to what was happening, but more moderate. Prices for film HDPE this week grew to Rb83,000 - 84,500/tonne FCA, including VAT, while a week ago the deals were done on average down Rb500/tonne.

Converters, in their turn, said in the current situation it is problematic to accept any price increase. Banks refused to credit, while the rate on loans already reached 27% per annum.
MRC

PE production in Belarus decreased by 1.6% in January - November 2014

MOSCOW (MRC) - Total production of low density polyethylene (LDPE) in Belarus decreased to 124,000 tonnes in the first eleven months of the year up 1.6% year on year, according to MRC DataScope report.

According to the National Statistics Committee of Belarus, a local polyethylene producer - Polymir increased production of polyethylene to 12,000 tonnes in November, compared with 7,600 tonnes in October. Such a low production volumes in October resulted from the shutdown for the turnaround.

Total LDPE production in Belarus were about 124,000 tonnes in January - November 2014 compared with 126,000 tonnes in the same time a year earlier.

Polymir was founded in 1968 in Novopolotsk. The company used technologies of the largest foreign companies from Great Britain, Japan, Germany, Italy (Courtaulds, Asahi Chemical Co. Ltd, Kanematsu Gosho, SNIA BPD et al.), as well as the development of scientific research institutes and design institutes of the CIS countries. The producer's annual LDPE production capacity is 130,000 tonnes.
MRC

Eastman Chemical to expand ester alcohol output by 20% at Texas plant

MOSCOW (MRC) -- Eastman Chemical has announced a planned increase in its Eastman Texanol ester alcohol manufacturing capacity in Longview, Texas, reported Hydrocarbonprocessing.

The plant expansion is expected to be complete in the second half of 2016 and will increase capacity by more than 20%.

In addition to its largest Texanol site in Longview, Eastman also manufactures the product at its Jurong Island, Singapore site and at its joint venture in Zibo, China.

"This expansion at our largest and fully integrated site positions Eastman to meet the needs of coalescent customers around the world," said Lucian Boldea, vice president and general manager of Eastman’s additives and functional products segment. "This investment further solidifies Eastman’s leading position in the architectural coatings market."

Texanol ester alcohol is a coalescent used in latex paints found in the building and construction market. Eastman coalescents enable maximum film formation by softening latex particles and allowing them to fuse into a tough, continuous film, improving overall paint performance.

Common coalescents include ester alcohols, esters, and glycol ethers.

As MRC wrote before, in early December, Eastman Chemical Company announced the completion of its acquisition of Taminco Corporation, a global specialty chemical company, for a total of USD2.8 billion in cash and assumed debt. The acquired Taminco businesses are expected to be accretive to 2015 earnings per share by greater than USD0.35, excluding acquisition-related costs and charges, and to 2016 earnings per share by greater than USD0.60.

Eastman is a global specialty chemical company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. Its market-driven approaches take advantage of world-class technology platforms and leading positions in attractive end-markets such as transportation, building and construction and consumables. Eastman focuses on creating consistent, superior value for all stakeholders. As a globally diverse company, Eastman serves customers in approximately 100 countries and had 2013 revenues of approximately USD9.4 billion. The company is headquartered in Kingsport, Tennessee, USA and employs approximately 14,000 people around the world.
MRC

Celanese announces intermediate chemistry price increases from 1 January 2015

MOSCOW (MRC) -- Celanese Corporation, a global technology and specialty materials company and a global leader in EVA emulsions, will increase list and off-list selling prices of the products stated below effective January 1, 2015, or as contracts allow, reported the company on its site.

Thus, prices of acetic anhydride will increase by USD50/mt in Americas.

As MRC informed previously, Celanese Corporation raised November prices of vinyl acetate-based emulsions sold in the Americas. Thus, PVAc homopolymer, EVA and vinyl acrylic emulsions increased by up to USD0.05/wet pound effective November 1, 2014, or as contracts allowed. This increase was attributed to the continued pressures on raw materials, notably vinyl acetate monomer (VAM), and freight and affected all applications including, but not limited to, adhesives, paints and coatings, building products, nonwovens, glass fiber, carpet, paper and textiles.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Texas, Celanese employs approximately 7,400 employees worldwide and had 2013 net sales of USD6.5 billion.
MRC

Dow named new President of Dow USA

MOSCOW (MRC) -- In line with The Dow Chemical Company’s objective to strengthen its geographic focus, Deborah Borg, vice president of the Human Resource Partner Organization, has been named president of Dow USA, reported the company on its site.

In this role, she will continue to be based in Midland, Michigan, and will report to Joe Harlan, chief commercial officer and vice chairman, Market Businesses, and will be fully accountable to the Office of the Chief Executive.

"As we have said many times, our efforts are concentrated in select markets where we can be narrowly, but more deeply focused, and this requires a local approach to running our global businesses," says Harlan. "Deborah has been a key partner with our businesses throughout her career with Dow. In addition, she has played an invaluable role in the development and implementation of the Company’s corporate strategy. Her experiences will help set a clear path forward for our growth objectives in the United States."

In this role, Borg will be responsible for coordinating Dow’s activities across the United States. She will develop and oversee a strategy for Dow USA, coordinating closely with the businesses, functions and operations to drive results. Borg will play an instrumental role in representing Dow's interests to key stakeholders, including customers, suppliers, joint venture partners, key government organizations, and our communities. She will serve as a company spokesperson and manage issues that affect US government policy, public policy and Dow’s businesses.

Andrew N. Liveris, Dow chairman and chief executive officer stated, "Many large global corporations, like Dow, are increasingly focusing on their home location - the United States - as a market with incredible opportunities. The need for a strong leader to represent our interest and to develop and oversee a strategy in the US has been in discussion for some years, and with Deborah’s appointment, we are now ready to fully address the opportunities for Dow."

As MRC wrote before, in November 2014, Dow Chemical announced an increased divestiture target aligned to further enhance the value of its portfolio and support the company’s market-driven, integrated strategy. On track to complete its goal of realizing USD4.5 billion to USD6 billion in proceeds by year-end 2015, and with additional portfolio management actions underway, Dow is now increasing its divestiture target to USD7 billion to USD8.5 billion to be complete by mid-2016. Since 2013, the company has generated USD2.5 billion in proceeds, reallocating this capital to remunerate shareholders, fund growth and reduce debt.

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.