PP production in Russia increased by 46% in January - February 2015

MOSCOW (MRC) - Production of polypropylene (PP) in Russia increased to 224,000 tonne in first two months of this year, up 46% year on year, compared to the same period of 2014. Increase in production volumes showed all Russian companies, except Ufaorgsintez and Neftekhimiya, as per MRC ScanPlast.

February PP production in Russia was 111,000 tonnes this year, compared with 112,900 tonnes in January, a slight decrease in capacity utilisation occurred at Stavrolen and Poliom. Total PP production in Russia reached 224,000 tonnes in the first two months of the year, from 153,000 tonnes in the same period of 2014. Almost all plants, expect Ufaorgsintez and Neftekhimiya (Kapotnya), increased their capacity utilisation.

Structure of PP production over the reported period looked as follows. The largest producer of polypropylene in Russia - Tobolsk-Polymer has been increasing its production rates since the beginning of the year; the producer's PP output grew to 40,900 tonnes in February (34,700 tonnes in January). Tobolsk-Polymer's PP production was 75,700 tonnes in the first two months of the year, compared with 17,300 tonnes year on year.

Poliom (Titan) reduced capacity utilisation by 2% in February, with 15,300 tonnes of PP produced in February (17,200 tonnes in January).
Total PP production at the plant over the reported period grew to 32,600 tonnes, compared with 21,800 tonnes year on year.

Nizhnekamskneftekhim and Tomskneftekhim also increased their PP production in February, with 16,400 tonnes and 11,300 tonnes respectively. Total PP production in January - February 2015 at these plants was 35,200 tonnes and 23,100 tonnes respectively, up 5% and 7%, compared with the same time a year earlier.

Stavrolen (LUKOIL) last month had to shut its PP production because of the preparatory work for the resumption of the production of ethylene, so that PP production was reduced to 7,400 tonnes (10,800 tonnes in January). Total PP production at the plant over the reported period was 18,200 tonnes, compared with 18,100 tonnes year on year.

Ufaorgsintez and Neftekhimiya decreased PP production to 21,000 tonnes and 18,100 tonnes over the reported period, up 3% and 5% compared with the same period year on year.


MRC

Total taps Chinese banks to fund Russian project

MOSCOW (MRC) -- Total, Europe’s third-largest oil company, is pushing ahead with a USD27 billion natural-gas project in the Russian Arctic, but it will seek a big chunk of the financing - as much as USD15 billion worth - through Chinese banks in local currency and euros, reported MarketWatch.

The decision comes amid worry that Western sanctions against Russia could complicate the sort of dollar-based fundraising that is more typical for big energy projects.

Total’s Arctic project - years in the planning - doesn’t run afoul of sanctions itself. But one of Total’s partners in the Yamal liquid natural gas venture is Russian energy firm OAO Novatek, in which Total has a minority stake. Another big Novatek shareholder is Gennady Timchenko, who has been specifically targeted by U.S. sanctions.

The U.S. and Europe have slapped a series of economic sanctions on Moscow in recent months amid a standoff over Ukraine and Crimea. Under the sanctions regime, rules limit the transfer to Russian firms of technology related to some unconventional drilling techniques, including shale-oil recovery methods and some Arctic and offshore oil projects. But Yamal, a natural-gas project, isn’t specifically affected.

Total has previously signaled its plans to meet some of the big costs of the project through fundraising from Chinese banks. But the size of the funding goal disclosed by Chief Executive Patrick Pouyanne in an interview could make the Yamal project the largest reported private corporate deal involving Chinese banks. The biggest deal of that nature so far is a $12 billion syndicated loan to Daimler AG DAI, -2.86% DDAIY, +0.01% in 2013, in which two of the 34 banks were Chinese.

As MRC informed before, Total is in plans to permanently shut its high density polyethylene (HDPE) line. A Polymerupdate source in Belgium informed that the line is planned to be shut by this year-end. The plant will be shut permanently owing to weak margins which have arisen on account of cheap imports in the region. Located at Antwerp in Belgium, the line has a production capacity of 70,000 mt/year.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
MRC

HDPE imports to Ukraine fell by 38% in January and February 2015

MOSCOW (MRC) -- The overall imports of high density polyethylene (HDPE) to Ukraine fell over the first two months of 2015 by 38% year on year and totalled 12,100 tonnes, according to DataScope report.

February HDPE imports into Ukraine increased after the January fall and totalled 6,700 tonnes (5,300 tonnes in January). The overall HDPE imports decreased to 12,100 tonnes in January and February 2015 versus 19,300 tonnes a year earlier. Pipe grade polyethylene (PE) accounted for the greatest drop in demand.


The supply structure by HDPE processing technologies looks the following way over the stated period.

February imports of film grade HDPE to the Ukrainian market grew to 4,100 tonnes from 2,700 tonnes a month earlier because of the increased supplies from Russia. The overall imports of film grade PE decreased over the first two months of 2015 to 6,700 tonnes, down by 31% year on year.

February imports of pipe grade HDPE were about 600 tonnes, whereas in January this figure barely exceeded 500 tonnes. Imports of this PE grade to the Ukrainian market slumped by 71% over the said period to 1,100 tonnes.


Last month's imports of blow moulding HDPE to Ukraine rose up to 1,300 tonnes from 908 tonnes in January 2014 because of the resumption of shipments from Russia. Demand for this PE grade from local converters declined by a quarter in January and February 2015 and totalled 2,200 tonnes.

February imports of injection moulding HDPE fell to 510 tonnes versus 1,300 tonnes a month earlier, due to the suspension of purchasing from local producers of caps for PET packaging. Imports of injection moulding HDPE to Ukraine totalled around 1,800 tonnes over the stated period, down by 33% year on year.

MRC

Kraiburg TPE developed high-flow compounds for the automotive industry

MOSCOW (MRC) -- For automotive exterior applications with wide flow paths and exceptionally challenging weathering requirements, thermoplastics elastomer manufacturer Kraiburg TPE (Waldkraiburg/Germany) has developed a new class of compounds within the Thermolast K family: High-flow compounds, as per GV.

Kraiburg TPE carried out flow length tests using a spiral flow test and obtained a flow path up to 30 % longer in comparison to standard materials. For window overmoulding in particular, the internal mould pressure is almost halved.

This allows, together with the lower melt temperature, a 20 % shorter cycle time. The level of force applied in the filling process has been reduced, which allows even thinner panes of glass or laminated panes to be overmoulded. This also significantly reduces the risk of the glass breaking. Even applications with extremely long flow paths such as the encapsulation of a rear window or a roof module can now be realised with a TPS.

As other Thermolast K materials the high flow grades withstand Florida and Kalahari tests, which simulate two- to three-year cycles, without any problems.

As MRC reported earlier, in 2012, Kraiburg TPE launched two new TPE product ranges in Europe. The "Copec" and "For-Tec E" ranges had already been successfully launched in the USA, and the company hoped to replicate that success in Europe. The products, which were designed for use in consumer sectors, have superior haptic and adhesion properties and are resistant to influences such as sweat, alcohol and weather.
MRC

SKC Corp to shut PG plant in South Korea

MOSCOW (MRC) -- SKC Corp is in plans to shut a propylene glycol (PG) plant for maintenance turnaround, according to Apic-online.

A Polymerupdate source in South Korea informed that the plant is planned to be shut on April 1, 2015. It is likely to remain off-stream till the last week of April.

Located in Ulsan, South Korea, the plant has a production capacity of 110,000 mt/year.

As MRC informed earlier, Honeywell's UOP announced in late December 2014 that China had commissioned the first of 14 planned propylene production units, using technology from UOP to help close the global propylene supply and demand gap.

China’s Zhejiang Satellite Petrochemical Co. became the first Chinese producer to start production of propylene using UOP C3 Oleflex process technology, which efficiently produces propylene from propane.

Zhejiang Satellite Petrochemical is currently producing high-quality, on-spec product for acrylic acid and derivative production, according to UOP officials.

Traditionally, propylene is a byproduct of making ethylene. However, a shift in how ethylene is produced globally has meant less propylene byproduct is being produced, sparking investment in technology to create propylene from propane.

Since 2011, UOP has licensed the C3 Oleflex process to more than a dozen producers to meet rising demand, with a majority of licensed capacity in China.
MRC