Russia faces LDPE shortage in the spot market

MOSCOW (MRC) - The shortage of low density polyethylene (LDPE) is felt in the Russian market in the late March.
Spot market practically froze because of the tight supply polyethylene (PE), according to ICIS-MRC Price Report.

Back in February, the low demand from local converters made Russian producers significantly increase in the volume LDPE exports to balance the domestic market. The demand for LDPE has strengthened in tune with the seasonal factor in March. The demand has also increased because of the desire of some market participants to build up additional stock inventories for April. At the same time, Russian producers have kept exports at a high level.

All these factors have led to a shortage of LDPE in the spot market, the deals in the last week of the month were not actually done. Most Russian producers have completed all their March LDPE deals last week. This week the producers have been completing debts on their contractual obligations, and they will begin discussions for April contract prices from next Monday, with a high probability of serious price rise.

Many traders suspended their sales of LDPE in the spot market at the end of last week; there was only available 108 PE in the spot market. In most cases, this resulted from the lack of stock inventories of PE. This week the market froze almost completely on the back of the lack of any material offer.

The situation in the domestic LDPE market was aggravated by two factors: traditional restictions of truck movement in most regions in April (from 1, April restrictions were introduced in Bashkortostan, from 15, April in Tatarstan), which can lead to higher prices for logistics and scheduled maintenance works at Kazanorgsintez (the company plans the shutdown of its capacities for almost four weeks from 15, April). There was no alternative offer for LDPE in the local market. The Russian LDPE market is a pure net exporter (exports exceeds imports).

Partly the demand is met by supplies from Belarus, but exports quotas were seriously cut. There were only 700 tonnes of 158 LDPE offered for export trades on 24, March for the delivery eliveries in the first half of April, deals were done at the level of Rb70,300/tonne FCA Novopolotsk.
MRC

MOSCOW (MRC) -- Russia is feeling more than a pinch from economic sanctions and the weak rouble, according to the latest data out of Germany, said Financial Times.

Exports of German goods to Russia fell by a staggering 35 per cent in January, according to a breakdown of statistics released by the Federal Statistical Office on Monday.

The data analysed by Reuters showed the value of exports fell to EUR1.44bn from EUR2.2bn a year earlier, the biggest fall since October 2009.

In 2014, Russia was Germany's 13th largest export market worth EUR29.3bn, down from EUR35.8bn the previous year.

In value terms, Germany is Russia's second biggest source of imports after China, according to the Observatory of Economic Complexity.

The latest German data suggests sanctions over Ukraine and Russia's weak currency are having a bigger-than-expected impact.

Germany's Chambers of Commerce had forecast exports to Russia to fall by as much as 15 percent this year, after dropping almost 20 percent in 2014.

MRC

MOSCOW (MRC) -- The American Fuel & Petrochemical Manufacturers (AFPM) trade group presented the platinum version of its Distinguished Safety Award on Monday to ExxonMobil Chemical’s polyolefins plant at its complex in Baton Rouge, Louisiana, said Hydrocarbonprocessing.

David L. Lamp, chairman of the AFPM board, handed off the award to Bruce March, senior vice president of global operations at ExxonMobil Chemical. "A facility must be exceptional just to be eligible, and once it is selected, it is among the industry elite," said Lamp, who made the presentation during Monday morning’s general session at the AFPM Annual Meeting in San Antonio.

It’s now the ninth time in 12 years that the Baton Rouge facility has won the award, Lamp said. "This is an unprecedented achievement," Lamp said in giving out the plaque to March. "This award is an honor backed by years of quality service and commitment to countless employees to ensure their plant is a beacon of safety performance," he added.

AFPM also honored LyondellBasell for winning the gold version of the Distinguished Safety Award for its plants in Clinton, Iowa, and Matagorda, Texas.

Meanwhile, 10 plants were selected for the silver Distinguished Safety Award, with company winners including BP, Calumet Specialty Lubricants, Chevron, ExxonMobil Chemical, LyondellBasell and Shell.

As MRC informed before, ExxonMobil has asked the Russian government to reimburse taxes worth "several billion roubles" it says it overpaid on a project in the far east of Russia.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.MRC

MOSCOW (MRC) -- Moody's Investors Service has downgraded Ukraine's long-term issuer and government debt ratings to Ca from Caa3. The outlook remains negative, as per the agency's statement.

The key driver of the downgrade is the likelihood of external private creditors incurring substantial losses as a result of the government's plan to restructure the majority of its outstanding Eurobonds. Also included in the restructuring is the external debt of state-guaranteed entities and selected other state-owned enterprises, and the Eurobonds issued by the capital city of Kiev.

The negative outlook reflects Moody's expectation that Ukraine's government and external debt levels will remain very high, in spite of the debt restructuring and plans to introduce reforms.

In a related rating action, Moody's also downgraded the issuer and debt ratings of the "Financing of Infrastructural Projects" (Fininpro) to Ca/(P)Ca from Caa3/(P)Caa3 and maintained the negative outlook. Fininpro's debt is fully and unconditionally guaranteed by the government of Ukraine.

Moody's also lowered Ukraine's country ceiling for long-term foreign currency debt to Caa3 from Caa2, and its country ceiling for long-term domestic currency debt and deposits to Caa2 from Caa1. Ukraine's country ceiling for foreign-currency bank deposits remains unchanged at Ca. All short-term country ceilings also remain unchanged at Not Prime (NP).

The key driver of Moody's decision to downgrade Ukraine's long-term government debt and issuer ratings to Ca is the government's plan to restructure the majority of its outstanding Eurobonds as well as other public sector external debt and the rating agency's expectation that private creditors will incur substantial economic losses as a result of the restructuring.
MRC

MOSCOW (MRC) -- International material sciences leader SABIC has announced its commitment to developing innovation in additive manufacturing at NPE2015, said EPPM.

The world's first 3D printed car, developed with SABIC material technology, manufactured by Local Motors. Leveraging its global technology centers in the Americas, Europe, Asia and Saudi Arabia, SABIC is expanding its application development focus in additive manufacturing technology.

The move further underscores SABIC's commitment to this evolving technology that is pushing the industry to rapidly develop new materials and processes that can help to achieve improved performance, complex designs, enhanced aesthetics and more economical part builds. SABIC’s capabilities and experience in additive manufacturing across a number of industries will enable it to work closely with technology innovators including universities, research laboratories, printer manufacturers, OEMs and emerging technology companies to help accelerate the advancements necessary for additive manufacturing to reach its full potential.

SABIC’s success with additive manufacturing has been driven in large part by the company’s holistic approach to this technology. From a broad portfolio of high performance materials, to design and processing expertise, to state-of-the-art equipment, SABIC provides a highly supportive research environment for material optimization, testing and designing for additive manufacturing processes.

As MRC informed earlier, Sabic reported a 29% drop in fourth-quarter profit as lower oil prices reduced returns from its own products. Net income dropped to 4.36 billion riyals (USD1.16 billion) from 6.16 billion riyals a year earlier, the Riyadh-based company said in a statement today. Sales slipped 10% to 43.4 billion riyals.

Saudi Basic Industries Corporation (Sabic) ranks among the worldпїЅs top petrochemical companies. The company is among the worldпїЅs market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
MRC