LG Chem to shut SM plant in South Korea for maintenance

MOSCOW (MRC) -- South Korean petrochemical company LG Chem is in plans to shut a styrene monomer (SM) plant for maintenance turnaround, according to Apic-online.

A Polymerupdate source in South Korea informed that the plant is planned to be shut in April 2015. It is likely to remain off-stream for around one month.

Located at Daesan in South Korea, the plant has a production capacity of 500,000 mt/year.

As MRC wrote earlier, LG Chemical shut down its polypropylene (PP) plant in South Korea for maintenance turnaround in late March 2015. It is expected to remain off-stream for around one month. Located at Daesan in South Korea, the plant has a production capacity of 600,000 mt/year.

LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. According to ICIS report, it is 15th biggest chemical company in the world in 2011. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.
MRC

MOSCOW (MRC) -- Samsung Total Petrochemical is likely to shut its polypropylene (PP) plant for maintenance turnaround, as per Apic-online.

A Polymerupdate source in South Korea informed that the plant is planned to be shut in mid-April 2015 for maintenance turnaround. It is likely to remain off-stream for around one month.

Located in Daesan, South Korea, the plant comprises of three line with a combined production capacity of 250,000 mt/year.

We remind that, as MRC wrote previously, in November 2014, South Korea's Samsung Group said it is selling stakes in four chemical and defence firms for 1.9 trillion won (USD1.72 billion) to Hanwha Group, the latest move in the massive task of restructuring the country's largest conglomerate.

Later, in the first decade of March 2015, South Korea's Fair Trade Commission (KFTC) gave conditional approval to Hanwha's proposed acquisition of Samsung General Chemicals.
MRC

MOSCOW (MRC) -- The overall imports of linear low density polyethylene (LLDPE) to Ukraine decreased over the first two months of 2015 by 17% year on year and totalled 6,700 tonnes. Demand from local films producers fell significantly, according to MRC DataScope report.

February LLDPE imports to Ukraine rose to 4,000 tonnes after the January fall of 2,700 tonns. However, the overall imports of this polyethylene (PE) grade to the local market dropped to 6,700 tonnes in January and February 2015 versus 8,100 tonnes a year earlier. The need for linear PE decreased in all consumption sectors, but the film processing sector accounted for the largest decrease in demand.

The structure of LLDPE imports looks the following way over the stated period.

Last month's imports of film grade LLDPE rose to 3,700 tonnes under the pressure of seasonal factors compared to 2,500 tons in January, local producers of irrigation stretch films increased their purchasing. Demand for LLDPE in this consumption sector dropped by 18% over the first two months of the year to 6,200 tonnes.

February LLDPE imports to the sector of rotational moulding of large items rose to 110 tonnes versus 66 tonnes a month earlier. Demand for this PE grade subsided to 176 tonnes over the said period from 186 tonnes a year earlier.

The overall LLDPE imports from customer in other consumption sectors were slightly more than 250 tonnes.

MRC

MOSCOW (MRC) - Imports of expandable polystyrene (EPS) in the Russian domestic market decreased to 4,000 tonnes in January-February 2015, down 26% year on year, as per MRC DataScope.

In the structure of supply there was seen a sharp drop in EPS imports from China and an increase in purchases of Finnish material. Imports of Chinese EPS decreased more than two times in the first two months of the year to 1,440 tonnes in January-February 2015. Depreciation of the euro against the dollar resulted in a stronger demand for European brands of polystyrene (PS).

Russian companies imported about 1,000 tonnes of Finnish EPS by Styrochem production in January - February 2015, up 42% compared with the same period a year earlier.
Shortage of imported expandable polystyrene remained in March, said consumers of feedstock, traders and Russian producers. Sibur-Khimprom and Plastic (Uzlovaya) reported an increased buying interest in the domestic market on the back of the shortage of EPS.

Buying activity was high, while production volumes of EPS in Russia do not completely satisfy the domestic demand. High buying activity in the market also resulted from the shutdown at Sibur-Khimprom for maintenance works in January, which significantly reduced the stocks of the polymer in the domestic market.

MRC

MOSCOW (MRC) -- Russia's output of polycarbonate (PC) totalled 11,600 tonnes over the first two months of 2015, which equalled the last year's production, according to MRC ScanPlast report.

At the same time, extrusion PC grades accounted for 76% of the total output. The produced PC for sheet extrusion will be directed to the needs of the domestic market.

Converters said there might be a shortage of Russian polymer in the market with the approach of a seasonally peak demand (May). This is caused by the fact that more and more producers are cutting purchasing of imported material and switch to domestic PC on the back of the rouble devaluation.

Sheets producers said they also expect demand for their products to be rather strong this spring, as buyers will tend to make prompt purchasing in anticipation of a further price rise. The seasonally peak demand is likely to shift to the middle of April or to its second half.
Kazanorgsintez, the only PC producer in the CIS countries, still considers the domestic market a priority. The plant reduced its production of PC grades to be shipped to foreign markets. Kazanorgsintez is focused on imports substitution in the extrusion segment.

MRC