PP production in Russia increased by 39% in January 2015

MOSCOW (MRC) - Total production of polypropylene (PP) in Russia increased to 113,400 tonnes in January 2015, up 39% year on year.
Tobolsk-Polymer (SIBUR) and Poliom (Titan Group) significantly increased their capacity utilisation in January 2015, according to MRC ScanPlast.

January PP production in Russia was about 113,400 tonnes, compared with 81,600 tonnes in January 2014, and 96,600 tonnes in December 2014. The main increase in production showed new production sites: Tobolsk-Polymer (Tobolsk) and Poliom (Omsk). Structure of PP production over the reported period looked as follows.

The largest producer of polypropylene in Russia - Tobolsk-Polymer last month significantly increased capacity utilisation. The producer's January PP production rose to 34,700 tonnes, compared with 8,500 tonnes in January 2014, and 28,000 tonnes in December 2014. Since the launch in May, 2013 the highest level of capacity utilisation was seen in October 2014 with 43,600 tonnes of PP.

Poliom (Titan Group) launched PP production in February 2013 and in mid-2014 increased capacity to 210,000 tonnes/year. The producer's January PP production rose to 17,200 tonnes, compared with 13,400 tonnes in January 2014, and 12,400 tonnes in December 2014.

Nizhnekamskneftekhim (Taif) and Ufaorgsintez (Bashneft) also increased their production rates. The producers over the reporting period produced 18,500 tonnes and 10,800 tonnes of PP, respectively, while in January 2014, these figures were to 17,100 tonnes (18,300 tonnes in December 2014) and 9,900 tonnes (9,800 tonnes in December 2014), respectively.

Tomskneftekhim (SIBUR) last month increased PP production to 11,800 tonnes, compared to 11,400 tonnes in the same period of 2014 and 10,900 tonnes in December 2014.

Neftekhimiya (SIBUR) and Stavrolen (LUKOIL) during the period reduced capacity utilisation, total PP production was 10,800 tonnes and 9,400 tonnes respectively. While in January 2014 production volumes were at the level of 11,700 tonnes and 9,600 tonnes of PP respectively.


MRC

MOSCOW (MRC) - Spot prices of polyethylene terephthalate (PET) in the Russian market declined slightly in the late last week. Prices for imported PET have decreased on the back of the strengthening of the rouble. Russian producers of PET chips made concessions, according to ICIS-MRC Price Report.

Prices for Russian PET were heard in the range of rouble (Rb) 76,500-78,000/tonne FCA, including VAT.
Last week, spot prices from producers have changed differently. Alco-Naphtha and Senege slightly raised spot prices for the domestic market, while the subsidiaries of SIBUR Group, on the contrary, have reduced them. With the logistics costs, the price of Russian PET in the Central region was at rouble Rb76,500-80,800/tonne CPT Moscow, including VAT.

Buying activity in the spot PET market of Russia remained weak. Converters also reported a weak demand in the market of PET preforms. The strengthening of the rouble contributed to the reduction of the upper end of prices.
Stabilisation of the exchange rate also contributed to a decrease in the cost of imported PET entering the Russian domestic market.

Given the current rate of the rouble, the quotations of Chinese PET purchased in December and with the customs clearance this week totalled Rb81,500-84,000/tonne CPT Moscow, including VAT. Prices for Lithuanian PET from Neo Group have also significantly reduced. Given the difference in exchange rate the price of Lithuanian PET in the Russian domestic market decreased to Rb82,000-84,000/tonne CPT Moscow, including VAT.

Prices of Belarusian PET in the domestic market in Russia were at Rb75,500-76,000/tonne CPT Moscow, including VAT.
MRC

MOSCOW (MRC) - On Friday, 20, February Stavrolen (LUKOIL) temporarily suspended production of polypropylene (PP), said the company's customers for the MRC.

The company suspended production of PP last Friday. As reported by the company's customers, the shutdown resulted from the parallel processes of preparation for the launch of ethylene (propylene) production.

The shutdown of the facilities for PP production will not be long and by the end of this week, the company will resume its production.

The annual production capacity at Stavrolen is 120,000 tonnes/year. The producer's PP production was 10,800 tonnes in January 2015. As in was written earlier, Stavrolen on 26, February 2014 had to shut polyethylene (PE) and polypropylene (PP) production. The company resumed PP production in October 2014, the resumption of PE production is expected in April.
MRC

MOSCOW (MRC) -- Arkema, a France-based chemical manufacturer and Jurong Chemical have announced they have concluded an agreement regarding the next steps of their cooperation in Acrylics in China, reported Arkema on its site.

This agreement extends, until January 2016, the period for Arkema to exercise its call option to access a total of 320,000 t/year acrylic acid production capacity.

In 2014, Arkema and Jurong Chemical set up Sunke, a manufacturing joint-venture which owns and operates Acrylic Acid and Butyl Acrylate productions lines in Taixing, Jiangsu Province, PRC.

Under the new agreement, Arkema’s call option to increase its share in Sunke and access a total production capacity of 320,000 t/year of Acrylic Acid has been extended until January 2016. According to the terms of the agreement signed in January 2014, the exercise of this option was initially expected during the 1st quarter 2015.

In the meantime, the joint-venture will be jointly operated by the partners and production will be adjusted to market conditions providing partners with all the flexibility needed to optimize performance.

The financial terms of the initial agreement signed in January 2014 have been adjusted to reflect the extension of the option. All other conditions remain unchanged.

Finally, Arkema’s option to acquire the remaining third of the acrylic acid production capacities and fully hold Sunke’s share capital remains unchanged and can be exercised until early 2020.

As MRC wrote before, in early 2014, Arkema, the world’s second leading producer of organic peroxides, announced the construction of a new organic peroxide plant on its Changshu site in China. This investment will help double the site’s production capacity.

Arkema with annual revenue of EUR7.6 billion is a leading European supplier of chlorochemicals and PVC. Kynar and Kynar Flex are registered trademarks of Arkema Inc. Arkema operates 11 organic peroxide plants on the three continents.
MRC

MOSCOW (MRC) -- The Lubrizol Corporation and Cleveland Clinic has announced that as part of a new joint collaboration, Lubrizol LifeSciences and Cleveland Clinic Innovations are aiming to identify - and ultimately speed the development of - new, groundbreaking products for the medical device and pharmaceutical industries, as per the company's press release.

The combination of Lubrizol’s manufacturing capabilities and Cleveland Clinic’s clinical expertise sets the groundwork to discover and develop new, meaningful medical innovations that meet the needs of patients and providers. The joint collaboration will connect the chemists and engineers who create the materials with the clinicians who identify unmet clinical needs and seek solutions.

This collaboration will speed up product development and provide both parties with the opportunity to connect complementary perspectives. In addition, Lubrizol will have more opportunities to interact with medical professionals to understand how their products impact the lives of patients, ultimately creating better overall outcomes. Cleveland Clinic will have increased access to polymer scientists, material testing and new component designs.

"As we continually look for new ways to innovate for our OEM customers, collaborations with a leading clinical provider, such as Cleveland Clinic, will help us take the next step in delivering solutions that better address the needs of the healthcare industry," states Deb Langer, vice president and general manager, Lubrizol LifeSciences. "This provides us with a fresh hands-on perspective that will help us focus on the medical problems that really matter to patients and providers."

Lubrizol LifeSciences will provide Cleveland Clinic an in-depth understanding of functional polymer solutions, including components, novel device systems and drug-delivery combination products for the healthcare industry. Lubrizol’s recent acquisition of Vesta, a leading contract manufacturer for the global medical device industry, enhances the collaboration with expertise in precision thermoplastic extrusion and comprehensive capabilities in silicone fabrication. This combination of material chemists, manufacturing engineers and clinical professionals provides an opportunity that can foster rapid new product development.

As MRC informed previously, in 2013, Lubrizol, an innovative specialty chemical company, announced its four-year plan - a USD400 million global expansion of its chlorinated polyvinyl chloride (CPVC) resin and compounding manufacturing sites. With continued strong global demand for the company"s CPVC compounds, Lubrizol"s expansion efforts will be divided into two phase.

The Lubrizol Corporation, a Berkshire Hathaway company, is an innovative specialty chemical company that apart from its production develops and supplies technologies to customers in the global transportation, industrial and consumer markets. Lubrizol"s advanced polymer technology delivers exceptional performance for the plumbing, fire sprinkler, industrial and other building and construction related applications. Lubrizol is providing innovative solutions for its customers" high-performance application needs and remains committed to ongoing investment in its CPVC capabilities that support future growth.
MRC