LLDPE imports to Ukraine dropped by 17% in January and February 2015

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

MOSCOW (MRC) -- The overall imports of polypropylene (PP) into Ukraine decreased by 5% over the first two months 2015 and totalled 13,900 tonnes. Homopolymer of propylene (homopolymer PP) accounted for the greatest fall in demand, according to MRC DataScope report.

Last month's PP imports to Ukraine rose to 8,300 tonnes compared to the January's decline of 5,600 tonnes. The overall imports of homopolymer PP to the local market fell to 13,900 tonnes in January and February 2015 versus 14,600 tonnes a year earlier. Homopolymer PP accounted for the largest drop in shipments because of weaker demand for raffia and injection moulding PP grades.

The supply structure by PP grades looks the following way over the stated period.

Last month's imports of homopolymer PP to the Ukrainian market grew to 6,000 tonnes from 4,000 tonnes in January, with raffia of Middle Eastern producers accounting for the main increase in imports. Imports of homopolymer PP decreased over the first two months of 2015 by 9% year on year and totalled about 10,000 tonnes.

February imports of block copolymers of propylene (PP-block) were less than 900 tonnes versus 770 tonnes in January, a small increase in demand was registered in the injection moulding sector. Imports of PP-block to Ukraine fell to 1,600 tonnes over the said period from 1,800 tonnes a year earlier. Demand for extrusion PP grades fell almost twice: for the production of pipes and sheets. Demand subsided by only 4% in the injection moulding sector.

February imports of statistical copolymer of propylene (PP-random) to Ukraine rose almost two-fold from January (612 tonnes) and reached 1,300 tonnes. Purchasing from local pressure PP pipes producers grew significantly last month. The overall imports of this PP grade were 1,900 tonnes in January and February 2015 versus 1,500 tonnes a year earlier. Demand from pipes producers increased by 46%, whereas demand from local producers of biaxially-oriented polypropylene (BOPP) film grew by 38%.

The overall imports of other propylene copolymers totalled about 400 tonnes over the stated period versus 500 tonnes a year earlier.

MRC

MOSCOW (MRC) -- State oil and gas company PT Pertamina (Persero) and the Medan-based state-owned plantation company, PT Perkebunan Nusantara (PTPN) III,will build a steam- and gas- fueled power plant (PLTGU) with a capacity of 250 Megawatts (MW) in Sei Mangkei, North Sumatra, an official said recently, reported The Jakarta Post.

Pertamina president director Dwi Soetjipto said the development of the combined-cycle power plant was aimed at fulfilling electricity demands for industries in Sei Mangkei, which had been named a special economic zone(KEK).

“This cooperation is a synergistic effort between state-owned enterprises to contribute to the development of the national electricity infrastructure targeted to reach 35,000 MW by 2019,” Dwi said as quoted by Antara in Jakarta on Tuesday.

He said the PLTGU would also help tackle the electricity supply deficit in North Sumatra.

Dwi further explained that PLTGU Sei Mangkei was targeted to start its open cycle in the middle of 2017 and 2018 for its combined cycle.

He said the PLTGU would be built with an independent power producer whose electricity products would be sold to state electricity firm PT Perusahaan Listrik Negara (PLN) Persero.

Based on Government Regulation (PP) No. 29/2012, PTPN III is the management agency of KEK Sei Mangkei.

The Energy and Mineral Resources Ministry has given the state-owned plantation company a business permit on electricity supply for the public and under the permit, it can conduct electricity sales and purchase agreements with PLN.

Pertamina deputy president for communication Wianda Pusponegoro said the gas supply of PLTGU Sei Mangkei was from the liquefied natural gas(LNG) regasification and receiving terminal in Arun, Aceh.

The gas terminal is operated by PT Perta Arun Gas, the subsidiary of PT Pertamina Gas (Pertagas).

As MRC wrote before, in late August 2014, PT Indo Thai Trading (ITT) launched operations as a joint venture of Indonesia's Pertamina and Thailand’s PTT Global Chemical (PTTGC), which will ultimately be responsible for marketing and distributing production from an integrated petrochemical complex planned by the two companies.

Pertamina is an Indonesian state-owned oil and natural gas corporation based in Jakarta. It was created in August 1968 by the merger of Pertamin (established 1961) and Permina (established 1957). Pertamina is the world's largest producer and exporter of liquefied natural gas (LNG).
MRC