Dow Chemical sees potential for PE growth in packaging

MOSCOW (MRC) -- The packaging market continues to provide growth for the polyethylene business of Dow Chemical Co. — which is a good thing, since the firm will bring on more than 2 billion pounds of new PE and specialty plastics capacity in 2017, as per Plasticsnews.

"We’re seeing more material conversions going from paperboard to [PE] pouches," Dow executive Greg Jozwiak said at NPE 2015 in Orlando. Jozwiak serves as commercial vice president of North American packaging and specialty plastics for Midland, Mich.-based Dow, which ranks as one of the world’s largest PE makers.

Packaging applications in some developing countries are going right into flexible packaging without ever using cans or boxes, packaging and specialty plastics business president Diego Donoso added. In Freeport, Texas, Dow will add more than 2 billion pounds of capacity for Elite-brand enhanced polyethylene and Affinity-brand polyolefin plastomers, with a start date set for 2017. The firm is investing a total of USD4 billion in numerous Gulf Coast projects. The moves are part of a wave of North American PE and ethylene feedstock expansions that are tied to newfound supplies of natural gas in the region.

Jozwiak added that lower gasoline prices might spur consumer activity and consumption of PE-based products. "There’s a segment of the population that hasn’t seen wage appreciation, so having another USD15 or USD20 in their pockets means a lot," he said.

In addition to its Freeport project, Dow later this year will begin production with Sadara, its joint venture project with state-owned Saudi Aramco in Jubail, Saudi Arabia. The site eventually will have almost 7 billion pounds of annual capacities for PE, polyurethanes, elastomers and related products.

Dow at NPE 2015 also was focused on its Retain-brand polymer modifiers, which it launched late last year. The materials make it easier to recycle post-industrial barrier films without compromising performance or aesthetics.
Another NPE 2015 highlight for Dow was the use of its PE and PU technologies in artificial turf for field hockey competitions during the Rio 2016 Olympic Games at the Deodoro Olympic Park.

Dow is working once again with Polytan STI, a global leading manufacturer and supplier for outdoor and indoor sports surfaces, to deliver a higher-performing, more reliable and faster artificial turf. Dow and Polytan worked together on London 2012’s Riverbank Arena field hockey site.

In 2014, Dow posted sales of almost USD58.2 billion, up almost 2 percent vs. 2013. Plastics-related business units generated almost two-thirds of Dow’s sales in 2014. Its performance plastics unit — including PE — saw sales grow more than two percent to USD22.4 billion. Dow’s performance materials & chemicals unit — including PU and epoxy — posted sales growth of 2 percent to USD15.1 billion. Dow employs 53,000 at 201 sites worldwide.

The Dow Chemical Company is an American multinational chemical corporation. As of 2007, it is the second-largest chemical manufacturer in the world by revenue (after BASF) and as of February 2009, the third-largest chemical company in the world by market capitalization (after BASF and DuPont). Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.
MRC

MOSCOW (MRC) - Production of polyvinyl chloride (PVC)( in Russia exceeded to 138,000 tonnes in first two months of this year, up 29% year on year, compared to the same period of 2014. Such a serious increase in production volumes resulted from the launch of new production at RusVinyl, according to MRC ScanPlast.

Many Russian producers decreased capacity utilisation in February, as a result, the total production of unmixed PVC dropped to 63,900 tonnes, compared with 74,100 tonnes in January. Russia's PVC production totalled 138,000 tonnes in the first two months of the year, compared with 107,300 year on year. Such a high growth rate in production resulted form the launch of new 330,000 tonnes/year production at RusVinyl , based in Nizhny Novgorod.

Structure of PVC production over the reported period looked as follows. SayanskKhimPlast reduced its production rates in February, down by 12% from the January level, having produced 19,500 tonnes of suspension PVC (SPVC). Total PVC production by the producer was 44,200 tonnes in the first two months of this year, down 15% year on year.

Bashkir Soda Company (BSC) decreased production rates in February by 4%, compared with the January level, with 19,600 tonnes produced in February. Producer's production of SPVC totalled 42,300 tonnes in January - February of this year, up 15% year on year.

RusVinyl (JV SIBUR and SolVin) increased capacity utilisation by 4% in February, having produced 17,400 tonnes of SPVC. Total SPVC production at RusVinyl was 35,800 tonnes in January - February 2015.

Kaustik (Volgograd) in February reduced capacity utilization by 3% compared to the January level, with 7,400 tonnes produced in February.
Total PVC production by the producer was 15,700 tonnes in the first two months of 2015, up 2% year on year.


MRC

MOSCOW (MRC) -- January imports of polypropylene (PP) to the Belarusian market decreased by 16% and totalled a little over 4,600 tonnes. Propylene copolymers accounted for the most significant fall in demand, reported MRC analysts.

According to the National Statistics Committee of Belarus, January PP imports to Belarus dropped to 4,600 tonnes versus 5,500 tonnes in January 2014 and 8,800 tonnes in December 2014. Lower PP shipments were caused by seasonal factors, and it was European material that accounted for the greatest fall in supplies, whereas propylene copolymers accounted for the weakest demand.

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

January imports of propylene homopolymers (homopolymer PP) decreased to 3,900 tonnes from 4,100 tonnes in January 2014 and 6,500 tonnes in December 2014. Local companies significantly reduced their purchasing in Europe, particularly, in Hungary and Germany. At the same time, purchasing of homopolymer PP in Russia totalled 3,600 tonnes versus 2,100 tonnes in January 2014 and 4,800 tonnes in December 2014.

January imports of propylene copolymers fell below 800 tonnes, whereas they were 1,400 tonnes and 2,300 tonnes, respectively, in January 2014 and December 2014. As in the homopolymer PP market, local companies in the propylene copolymers market significantly reduced their purchasing in Europe in favor of Russian producers, particularly, Nizhnekamskneftekhim.
MRC

MOSCOW (MRC) -- Mario Mehren, currently a member of the Board of Executive Directors of Wintershall responsible for Exploration & Production Russia, North Africa and South America, has been named President of BASF’s Oil & Gas division effective July 1, 2015, and in this function will be head of BASF’s subsidiary Wintershall, as per BASF's press release.

He succeeds Dr. Rainer Seele, who has been named CEO of OMV Aktiengesellschaft, Vienna, Austria, effective July 1, 2015. Seele has been head of Wintershall since 2009.

"Over the past years, Rainer Seele has contributed significantly to expanding and further strengthening the position of Wintershall as the largest internationally operating German oil and gas company. We wish him much success in his new position," said Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF SE.

As MRC wrote before, Wintershall is continuing its growth course in Norway. By acquiring shares in the production fields Gjoa (5%) and Vega (24.5%) in December 2014, Wintershall is increasing its production in Norway from about 40,000 barrels of oil equivalent (boe) to about 60,000 boe per day.

Wintershall Holding GmbH, based in Kassel, Germany, is a wholly-owned subsidiary of BASF in Ludwigshafen. The company has been active in the extraction of natural resources for 120 years, and in the exploration and production of crude oil and natural gas for over 80 years. Wintershall focuses on selected core regions where the company has built up a high level of regional and technological expertise. These are Europe, Russia, North Africa, South America, and increasingly the Middle East region.

BASF is the world’s leading chemical company. Its portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas. BASF had sales of over EUR74 billion in 2014 and around 113,000 employees as of the end of the year.
MRC

MOSCOW (MRC) -- Trinseo (Hong Kong) Limited and its affiliate companies in Asia Pacific has announced price increases for all polystyrene (PS) grades, reported the company on its site.

Effective immediately, or as existing contract terms allow, the prices for the products listed below will increase as follows based on the price released for March 2015:

- STYRON general purpose polystyrene grades (GPPS) - by USD50/tonne;
- STYRON and STYRON A-TECH high-impact polystyrene grades (HIPS) - by USD50/tonne.

"The price increase responds to the rising costs associated with the manufacturing of polystyrene grades in Asia Pacific." said Samer Al Jabi, Global Product Director for Styrenics.

This represents a furthe price increase of PS grades in Asia Pacific, as in early March, Trinseo already increased its PS prices for the products listed below, as follows:

- STYRON general purpose polystyrene grades (GPPS) - by USD120/tonne;
- STYRON and STYRON A-TECH high-impact polystyrene grades (HIPS) - by USD120/tonne.

As MRC reported before, in March, Trinseo also announced price increases for all PS and copolymer, as follows:

- STYRON general purpose polystyrene grades (GPPS), STYRON and STYRON A-TECH high impact polystyrene grades (HIPS) - by EUR195/tonne;
- MAGNUM ABS and TYRIL SAN resins - by EUR155/tonne.

Formerly known as Styron, Trinseo has completed the name change process for most legal entities around the world. Some Styron companies are still completing this process and will continue to do business as Styron until their respective name changes are complete.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo’s technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015.
MRC