PS prices to rise in April for Russian buyers

MOSCOW (MRC) - Prices for polystyrene (PS) and styrene plastics are expected to rise in the Russian market following the increase in Russian contract PS prices and imported material, as per ICIS-MRC Price Report.

Nizhnekamskneftekhim and Gazprom neftekhim Salavat announced April PS prices this week. Prices for high impact polystyrene (HIPS) and general purpose polystyrene (GPPS) were risen by roubles (Rb) 2,000/tonne, including VAT.

A sharp increase in contracts for styrene in Europe was unexpected for the Russian market. The contract price of styrene monomer in April rose by EUR300/tonne, compared with the March level. Prices for PS and styrene plastics are expected to rise following the increase in prices monomer in Europe and Asia.

Styrolution on Wednesday announced its intention to raise the April contract prices for HIPS and GPPS by EUR315/tonne. Russian ABS prices were increased last week.

Plastik, Uzlovaya confirmed its plans to increase April prices. Traders of South Korean material also aimed to increase April prices on the price rise in foreign markets.

An exception may be the market of expandable polystyrene (EPS). Russian producers rolled over EPS prices for April delivery from March.
At the same time prices for imported material will grow.

Prices for popular among importers Finnish EPS by Styrochem production also will increase. In addition, the Chinese plant Loyal increased import spot prices for Russian buyers this week.

MRC

MOSCOW (MRC) -- German cabinet has decided to allow shale gas fracking in Germany, but only under strict regulation and for testing purposes, reported Deutsche Welle.

Even so, lawmakers criticized the proposed bill for not being strict enough.

According to the government proposal, fracking should be prohibited in so-called sensitive regions such as nature parks or water bore areas, and in depths above 3,000 meters. However, the bill allows for exceptions such as scientific tests, and it does not eliminate the possibility of commercial drilling past 2018.

The public remains hostile to the plan, with environmentalists, unions and even churches criticizing the proposal. There is even strong resistance within the ruling coalition itself, which holds 504 out of 631 seats in the German parliament.

Fracking involves blasting a mix of water, sand and chemicals deep into layers of rock to release trapped oil and gas. Critics claim the process is damaging to the environment and could pollute the drinking water.

Federal environment minister Barbara Hendricks claims that the government does not intend to lift any bans.

"Just the opposite: plenty of things that were possible before, are now forbidden", she said at a press conference Wednesday.

At the same time, Hendricks positioned herself against a complete ban of fracking in shale, clay and coal, saying a total ban on a technology goes against principles of the German constitution.

"Whether or not this technology will someday be environmentally friendly, remains to be seen. It is possible to doubt whether Germany even needs it," she wrote in a letter to SPD and CDU lawmakers. "However, it's not our goal to permanently ban a new technology. Instead, our task is to eliminate the possibility of it endangering the health, lives, and the environment."

In addition, Hendricks pointed out that in future court disputes, citizens will no more need to prove that their property was damaged by mining. Instead, the drilling companies would have to prove that events like earthquakes are not related to fracking.

As MRC wrote previously, in July 2014, the German government wanted to ban hydraulic fracturing in shale rocks and coal beds at depths less than 3 kilometers (1.8 miles) and prohibit all types of fracking in water protection areas, according to Economy Minister Sigmar Gabriel and Environment Minister Barbara Hendricks. She said reporters then that the government would start drafting legislation and seek to adopt it in the second half. The rules will be re-evaluated in 2021.

Besides, we remind that BASF may undertake its single biggest plant investment to date, spending more than 1 billion euros (USD1.4 billion) to target cheaper US shale gas with a facility to convert methane to propylene used in coatings.
MRC

MOSCOW (MRC) - At least four people died after a fire broke out on a Pemex oil processing platform in the Gulf of Mexico early on Wednesday, leading to the evacuation of 302 workers, said Reuters.

The fire, which burned throughout the day, erupted overnight on the Abkatun Permanente platform in the oil-rich Bay of Campeche. Forty-five people were treated for injuries and 16 of them were hospitalized, two with serious injuries, Pemex said.

Eight firefighting boats had been brought in to battle the flames, Pemex said, noting that one of the fatalities was from the state-run giant and another was a contractor for Mexican oil services firm Cotemar. Two others have yet to be identified. The fire broke out in the dehydration and pumping area of the platform, and it was not yet clear what caused it, Pemex said. There was no oil spill, it said.

Pemex Chief Executive Emilio Lozoya estimated the impact on production would be small because other processing sites nearby would pick up the slack, a company spokesman said.

Part of the Abkatun Pol Chuc offshore complex, the damaged platform separates crude oil and gas from various wells to process around 40,000 barrels per day (bpd), work which has now been suspended, the Pemex spokesman said. Earlier in the day, the spokesman had said the platform produced oil. In total, the Abkatun Pol Chuc complex produces around 300,000 bpd. Output at the rest of the site was not affected.

Mexico is the world's No. 10 crude producer at just under 2.3 million bpd, down about a third from a peak of 3.4 million bpd in 2004. Pemex has had a number of accidents in recent years and the latest one comes as Mexico seeks to lure private investors to revive its flagging oil industry.

In 2013, at least 37 people were killed by a blast at Pemex's Mexico City headquarters, and another 26 people died in a fire at a Pemex natural gas facility in northern Mexico in September 2012.

Last year, Mexico finalized a reform to end Pemex's 75-year-old oil and gas monopoly, but expectations of a boom in private investment have been tempered by the plunge in global crude prices.

Pemex, Mexican Petroleum, is a Mexican state-owned petroleum company. Pemex has a total asset worth of USD415.75 billion, and is the world's second largest non-publicly listed company by total market value, and Latin America's second largest enterprise by annual revenue as of 2009. Company produces such polymers, as polyethylene, polypropylene, polystyrene.
MRC

MOSCOW (MRC) -- Siluria Technologies has announced the successful start-up of its demonstration plant located in La Porte, Texas, said Hydrocarbonprocessing.

The plant is wholly owned by Siluria, and co-located at a plant operated by Braskem America, Inc. This milestone marks the world’s first large-scale production of ethylene directly from natural gas through Oxidative Coupling of Methane (OCM).

The demonstration plant is the final scale-up of the OCM process technology and paves the way for Siluria to deploy commercial-scale plants in the 2017/2018 timeframe.

Siluria’s OCM technology is the first commercially viable process to directly convert natural gas to ethylene, a key building block for the global petrochemicals industry and a new basis from which to produce transportation fuels. The company’s breakthrough innovations enable natural gas to supplement petroleum as the world-wide basis for commodity fuels, chemicals and plastics.

"Today marks the culmination of years of effort by our remarkable scientific and engineering teams. This revolutionary breakthrough has the potential to shift the foundation of the hydrocarbon economy by using abundant natural gas, to produce high-value chemicals and fuels," said Ed Dineen, Siluria’s CEO.

The conversion of methane to ethylene using OCM has been a sought-after goal of the chemical industry for more than 30 years because of its promise to add value to natural gas resources and reduce the costs of chemical, plastics and fuels production. Siluria’s highly efficient catalytic process is more scalable, more environmentally friendly and more cost-effective in many settings than current methods of production.

"This demo plant was brought in on time, under budget, and safely and successfully started up last December," said Dineen. "The initial campaigns have already replicated our pilot scale performance."

Siluria has developed a second process package for converting ethylene to liquids (ETL) to produce tailored products such as gasoline and other high-value hydrocarbon liquids. Siluria has been using the ETL technology to produce gasoline at its pilot facility in Hayward, Calif., since November 2013. The combination of Siluria’s OCM and ETL technologies provide an entirely new platform for energy companies to add significant value uplift to their lowest value products (methane and ethane).

MRC

MOSCOW (MRC) -- Builders and homeowners know that faded colors on fencing, decks and windows can spoil curb appeal and decrease property values. Therefore, PolyOne has developed new Geon Bold vinyl materials with dark, rich colors that stand up to the elements, especially heat build up, without losing their intensity or performance, reported the company on its site.

"Consumers, designers and architects are increasingly designing stylish outdoor living spaces and home exteriors that demand durability and require low maintenance," said James Stephenson, director, global marketing, Geon Performance Materials. "In response, manufacturers want to expand their color palettes while maintaining high weathering performance. We’ve developed Geon Bold vinyl solutions to address a recognized industry issue and help these manufacturers grow their market share and enhance brand image by delivering preferred color choices and the enduring performance their consumers want."

Geon Bold formulations feature improved color retention in darker colors and a wider palette of low heat build-up colors compared to standard exterior vinyl grades. These new materials are available in a range of gloss levels and use temperatures, and can be used to produce capstock for vinyl, cellular vinyl, or wood-plastic composite profiles, or solid profiles and sheet if needed. Capstock made from Geon Bold material is a cost effective alternative to painting, capping or laminating with materials such as fluoropolymers.

Applications that are commercial or in development include capstock and cladding for window and door lineals, decking, railings, fencing, roofing and siding.

As MRC reported earlier, in June 2014, PolyOne Corporation presented its specialty portfolio for automotive interiors to designers and engineers at the 2014 WardsAuto Interiors conference. These advanced technologies, including soft-touch materials as well as colorants and special effects, enable customers to design new features that boost consumer appeal and reduce manufacturing complexity.

PolyOne Corporation, with 2014 revenues of USD3.8 billion, is a premier provider of specialized polymer materials, services and solutions with operations in specialty polymer formulations, color and additive systems, polymer distribution and specialty vinyl resins..
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