PVC imports to Belarus dropped by 9.4% from January to October 2014

MOSCOW (MRC) -- Imports of unmixed polyvinyl chloride (PVC) into Belarus decreased by 9.4% over the first ten months of 2014 and totalled 34,500 tonnes, according to MRC DataScope report.

PVC imports to Belarus grew steadily since July on the back of seasonal factors and reached 4,800 tonnes in October (4,300 tonnes in September). The overall demand for PVC from local converters fell from January to October 2014 to 34,500 tonnes from 38,100 tonnes a year earlier.

Many local converters said weaker demand for PVC was caused by lower sales of finished products from PVC, primarily, in the domestic market (by about 20-25% year on year) and in foreign markets (including, the Russian market). The fall in sales of finished products to foreign markets was about 13.7% over the stated period to 21,400 tonnes.

German producers are the key PVC suppliers to the Belarusian market, their share in total imports rose to 53% over the said period. Polish Anwil with imports of about 8,400 tonnes is the second-largest supplier.

At the same time, Russian producers significantly increased their presence in the local PVC market in October. They shipped about 1,000 tonnes, and imports of resin from Russia rose over the stated period to 2,300 tonne.
MRC

JX Nippon to run paraxylene plants at 80% in Q1 2015

MOSCOW (MRC) -- Japan's JX Nippon Oil and Energy plans to run its paraxylene (PX) plants at an average 80% of capacity over January-March, reported Apic-online with reference to a market source's statement.

JX Nippon cut the PX run rates over May-June to 50-60% of capacity due to thin PX/naphtha margins. It raised rates to 60% in the third quarter and to 75% in Q4 as margins improved amid falling crude oil.

JX has a total PX production capacity of 3.1 million mt/year - the biggest in Asia - across its plants in Kashima, Kawasaki, Mizushima and Oita in Japan as well as in South Korea's Ulsan under a joint venture with SK Global Chemical.

As MRC reported earlier, Top Asian refiner China Petroleum & Chemical Corp. (Sinopec) shut down its PX plant in China for a one-month maintenance turnaround in late October 2014. Located at Zhenhai in China, the plant has a production capacity of 650,000 mt/year.
MRC

Moodys reviews for downgrade ratings of 45 Russian non-financial corporates

MOSCOW (MRC) -- Moody's Investors Service has placed the ratings of 45 Russian non-financial corporates on review for downgrade, reported the agency on its site.

The decision to place 45 Russian non-financial corporates and their supported subsidiaries on review for downgrade reflects the ongoing severe and rapid deterioration in the operating environment in Russia and the heightened risk of a more prolonged and more acute economic downturn than originally anticipated.

These actions follows Moody's decision on Monday, 22 December, to lower Russia's foreign currency bond ceiling to Baa2 from A3, foreign currency deposit ceiling to Ba1 from Baa2 and local currency bond and deposit ceilings to Baa1 from A3.

Among the companies, which ratings were placed on review for downgrade are Bashneft, Gazprom Neft, Lukoil, Sibur Holding, Novatek, Rosneft International Holdings Limited and Severstal.

As MRC wrote previously, Moody's Investors Service said in March 2014 that it views as credit positive for OJSC Oil Company Rosneft (Baa1 stable) the announcement that it had agreed to sell its 49% stake in the joint venture OOO Yugragazpererabotka (YGPP) to OJSC SIBUR Holding (SIBUR, Ba1 stable).

SIBUR is a vertically integrated gas processing and petrochemicals company. SIBUR owns and operates Russia’s largest gas processing business in terms of associated petroleum gas processing volumes, and is a leader in the Russian petrochemicals industry.

Lukoil is one of the world's biggest vertically integrated companies for production of crude oil & gas, and their refining into petroleum products and petrochemicals. The company is a leader on Russian and international markets in its core business, which accounts for over 20% of Russian oil production and 18% of the total Russian oil refining. Lukoil also controls two of the largest petrochemical plants in Russia and Ukraine: Stavrolen and Karpatneftekhim.

Rosneft became Russia's largest publicly traded oil company in March 2013 after the USD55 billion takeover of TNK-BP, which was Russia’s third-largest oil producer at the time.
MRC

DSM to sell Euroresins to Cathay Investments

MOSCOW (MRC) -- Royal DSM, the global Life Sciences and Materials Sciences company, today announces it has reached agreement with Cathay Investments for the sale of Euroresins, said the company in its press-release.

Subject to customary approvals and notifications, the transaction is expected to close in Q1 2015. Financial details will not be disclosed at this time.

Euroresins is a distributor of products to the composite resins industry with activities in nine countries in Europe, including the United Kingdom, Italy and France. Euroresins realizes sales of approximately EUR90 million with around 70 employees. All employees will on the closing date transfer to the new owner.

The sale of Euroresins is in line with the strategic actions DSM is pursuing for Composite Resins, as announced in November 2014.

Cathay Investments is the UK holding company for a group of companies engaged in chemical distribution and trading. Cathay’s principal trading business is Cathay Composites, which distributes glass fiber, resins and other composite materials throughout the UK and Scandinavia. Since its establishment Cathay has grown its portfolio to six companies.

As MRC wrote before, Royal DSM signed a partnership agreement with long fibre thermoplastic (LFT) specialist Plasticomp (Winona, Minnesota / USA) to develop bio-based LFT composite materials based on DSM’s "EcoPaXX" polyamide 4.10. The lightweight materials, which include compounds reinforced with glass fiber as well as carbon fiber, will be targeted at automotive and other performance-driven markets.

Royal DSM is a global science-based company active in health, nutrition and materials. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials.
MRC

With BASF Master X-Seed concrete construction can be continued perfectly under winter conditions

MOSCOW (MRC) -- With concrete admixtures from BASF's Master Builders Solutions concrete producers can be flexible and adjust to the needs of winter concreting; the jobsites can keep production going, reported BASF on its site.

Ice, snow and cold temperatures - any of these makes construction in the winter time challenging, especially for ready mix concrete producers and users. Often, projects have to be delayed due to the adverse weather conditions. Therefore, Master X-Seed can help concrete producers and contractors on key projects.

Hardening of concrete is a chemical reaction of cement with water. As any chemical reaction, hardening slows down with lower temperatures and nearly stops when the temperature is 5C and below. As a consequence, construction activity is greatly reduced during winter months. Generally, to produce and place concrete in these temperatures the concrete must first be heated at the concrete plant, then precautions need to take place at the job site such as the addition of accelerators, heating blankets and freeze protection. However, those measures are expensive and inconvenient. Accelerators and freeze protection agents bring about diminished workability control of fresh concrete and are limited in their usage in some markets and applications.

The accelerating admixture Master X-Seed enhances early age strength development of concrete by increasing the intrinsic reactivity of the cement. Master X-Seed is able to do this through its unique chemistry, which consists of very small crystal seeds. During the hydration of concrete these seeds provide the crystallization surface for the hardening cement past. This accelerates the hardening process, the heat development of the cement hydration kicks in earlier and ensures that the concrete core temperature and its hardening processes proceeds normally even at freezing temperatures outside.

Finally, the hardened concrete reaches the same mechanical properties as non-accelerated concrete under normal temperature conditions. This acceleration process takes place at all temperatures and provides ideal reactivity for cement, even at temperatures below freezing.

"A decisive advantage of using Master X-Seed is that - different to conventional accelerators - the rheology properties of the fresh concrete is not altered", says Jan Kluegge, Head of European Marketing Ready Mix for BASF. "All required workability classes including SCC can safely be achieved, even under high dosages the concrete does not get harsh or heavy to trowel as with conventional accelerators." Furthermore extended workability retention can be achieved leading to consistently high quality concrete installations.

Overall concrete works can be performed faster and with fewer efforts. The process of the construction project becomes largely independent of weather conditions and can safely and predictably be carried also under winter conditions.

As MRC wrote before, in March 2013, BASF started to roll out its Master Builders Solutions brand in Asia Pacific as part of a phased launch process. The global brand is a sign for BASF's commitment to the construction industry and represents a wide range of construction chemical solutions previously sold under a variety of specialty brands.

Under the Master Builders Solutions brand, BASF bundles its advanced chemical solutions for new construction, maintenance, repair and renovation of structures. The comprehensive portfolio under the brand encompasses concrete admixtures, cement additives, chemical solutions for underground construction, waterproofing solutions, sealants, repair and protection solutions, performance grouts, and performance flooring solutions.

BASF is the largest diversified chemical company in the world and is headquartered in Ludwigshafen, Germany. BASF 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.
MRC