EPS imports in Russia fell by 26% in January-February 2015

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

MOSCOW (MRC) -- Evonik Industries is presenting PLEXIGLAS Resist AG 100 - a new specialty molding compound for manufacturing vehicle glazing, as per the company's press release.

Plastics such as polymethyl methacrylate (PMMA) have long been established in a variety of vehicle applications, where they are used, for example, as durable taillight covers and non-transparent add-on body parts. In others, they are conquering growing shares of the market. These include applications in vehicle interiors, such as decorative trim, ambient lighting and door entry strips. Glazing with plastics is one of the fields that offer the highest growth potential.

Weight savings, freedom of design and the integration of many different functions: these are the major benefits of plastic glazing as compared with conventional glass.

PLEXIGLAS Resist AG 100 is the world’s first PMMA specialty molding compound for this application. It offers the high resistance to UV light and weathering for which PLEXIGLAS is known, is impact-modified and has up to 30 times the breaking strength of mineral glass. The company's developers have also succeeded in significantly reducing the reversible haze that occurs in conventional impact-modified products at very high and low temperatures.

As MRC reported earlier, Evonik Industries is making an investment in the double-digit-million euro range in a new research center at the Rheinfelden site. Starting at the beginning of 2016, research into silanes will be carried out in modern laboratories in the four-story building.

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world. In fiscal 2014 more than 33,000 employees generated sales of around EUR12.9 billion and an operating profit (adjusted EBITDA) of about EUR1.9 billion.
MRC