PC imports in Russia dropped by 77% in the first half of 2015

MOSCOW (MRC) - Imports of polycarbonate (PC) granules to the Russian market decreased to 2,100 tonnes in January-March 2015, down 77% compared to the same period last year, according to a MRC DataScope report.

Such a drop in interest for imported feedstock resulted, first of all, from the rouble devaluation and a reduction in the purchasing capacity of the population. Because of the high volatility of exchange rates, buyers try to avoid foreign exchange risks connected with the introduction of pre-payment for deliveries from abroad.

Demand for domestic PC and recycled feedstock has improved. Prices for imported feedstock, arrived into the domestic market, sometimes can be lower than the Russia PC granules. This was possible if the purchase had been made at peak times of the rouble growth. Sometimes price offers for PC on a prepaid basis, which is going to arrive in the market, are lower than the current market price. However, by the time of arrival of the shipment (the delay is about a month), the market situation can change dramatically. Therefore, most converters do not want to take risks and make purchases on a prepaid basis.
At the same time, converters said, today is extremely difficult to get free volumes of imported feedstock, as in the beginning of the month they are usually divided between the main customers. The main reason is a general reduction of supply and the seasonal increase in demand.
Following the global uptrend on the PC granules in Europe (up by EUR200-250/tonne), in the near future we should expect a similar situation in the Russian market.

According to unconfirmed information, a major supplier to the Russian domestic market, Sabic Innovative Plastics, will increase the level of export prices in May. Sabic has already increased PC prices for Ukrainian market in mid April. This increase in import prices, most likely, will not lead to a significant drop in demand, and will lead to a general increase in prices in the market on high seasonal activity.

Converters said that buying activity has improved in spring. Consumer activity has already revived since the beginning of this year. Consumers are expecting a possible sharp rise in the price for PC and finished products, and try to build up stocks ahead of it.


MRC

MOSCOW (MRC) -- BASF, the world's petrochemical major, has introduced a new solution: the "Skin Care Polymers Toolbox" to better help customers find the ideal polymer for their individual skin care product, as per the company's press release.

The company analyzed its complete polymer portfolio based on four criteria: viscosity versus pH range, electrolyte tolerance, emulsifying capability and sensory profile. One of the procedures employed for the evaluation was the Pillow Talk - a BASF sensory assessment method where trained individuals compare how their skin feels on the surfaces of different pillows after applying a cream or emollient. "With the results of our analysis we can give our customers clear guidance regarding which polymer is performing how in which formulation," said Francesco Romagnoli, Marketing Manager for Skin Care Polymer Europe. "The Skin Care Polymers Toolbox allows cosmetics manufacturers to choose the most suitable polymer for their specific skin care application."

Among the polymers identified, especially two can help cosmetics manufacturers to optimize the sensory characteristics of their products: Cosmedia SP - efficient thickener and emulsifier for an elegant afterfeel and sensory modifier with a lubricious effect/

Cosmedia SP, off-white, free-flowing powder, stands out for its exceptional sensorial profile and elegant afterfeel. It delivers silky and velvety sensory properties without stickiness, which is appealing for all skin care applications. Cosmedia SP offers emulsifying and suspending capabilities without needing an additional emulsifier, and also demonstrates good thickening capabilities. It demonstrates flexibility as it is suitable for cold processing and can be added to an oil or water phase.

Rheocare HSP 1180, clear, viscous liquid solution, is a sensory modifier imparting a soft and plush afterfeel. Rheocare HSP 1180 can be used at a broad pH range and delivers high lubricity even at low concentrations. When introduced to formulations, it reduces the friction during application: Being rubbed in, it delivers an immediate sense of lightness and quickness comparable to that of oils, but without leaving an oily feeling on the skin. Thus, Rheocare HSP 1180 is particularly suited for skin care products that require a sophisticated sensory profile.

As MRC reported before, earlier this month, BASF unveiled its largest construction chemicals plant in India at Nellore (Andhra Pradesh, South-East India). This is BASF’s fifth construction chemicals plant in the country. With its state-of-the-art technology and strategically located close to regional growth centers, the plant will enable BASF to respond in a timely fashion to customers’ needs in the Southern part of India and to support them with high-performance solutions in the highly competitive market.

The BASF Group’s Intermediates division develops, produces and markets a comprehensive portfolio of more than 700 intermediates around the world. Its most important product groups include amines, diols, polyalcohols, acids and specialties. Among other applications, intermediates are used as starting materials for coatings, plastics, pharmaceuticals, textiles, detergents and crop protectants. BASF had sales of about EUR74 billion in 2014 and over 113,000 employees as of the end of the year.
MRC

MOSCOW (MRC) -- Italian Maire Technimont and Azerbaijan’s SOCAR-Polymer signed an EUR350 mln-agreement on construction of Sumgayit polypropylene (PP) plant at the Azerbaijan-Italy business meeting on 15 April, 2015, reported APA-Economics.

According to APA-Economics, the agreement was signed by SOCAR-Polymer Director-General Farid Jafarov and Chief Executive Officer Maire Tecnimont Pierroberto Folgiero.

Maire Technimont and SOCAR-Polymer have carried preliminary engineering works and agreed on construction of polypropylene plant and general economic block on EPC agreement. This agreement costs €350 mln. The project envisages engineering, procurement and construction.

The Polypropylene plant with the yearly capacity of 180,000 tonnes will allow to use propylene as a raw material. This plant is planned to be constructed in Sumgayit Chemical Industrial Park.

Currently, Azerbaijan import polypropylene and High-density polyethylene (HDPE).

SOCAR-Polymer Deputy Director General Emil Eminov todl APA-Economics that according to conditions of the agreement, the polypropylene plant will be completed by end of 2017, polyethylene plant by end of 2018.

“The construction works are planned to start in August, 2015. The project of the construction has already been developed and sent to Italian company. The project envisages construction of polypropylene and polyethylene plants. Total worth of the project with both two plants makes EUR700 mln”, Eminov said.

He added that SOCA-Polymer will invest USD420 mln in these projects, which it borrowed from Russia’s Gazprombank in December, 2014.

Main shareholder of the project is SOCAR.

"Moreover, PASHA Holding, Gilan Holding and Azersun Holding will also be involved in the project. 40% of the project will be paid by these companies", Eminov said.

According to him, no problem will occur in the financing of the project and it will be implemented in time: "30% of projects to be produced in the project will be put up to sale to the domestic market. 70% will be exported".

As MRC wrote before, SOCAR announced last summer that it plans to commission PP plant in Azerbaijan in 2016.

SOCAR, which is keen on expanding operations in the retail oil products market abroad, is involved in exploring oil and gas fields, producing, processing, and transporting oil, gas, and gas condensate, marketing petroleum and petrochemical products in the domestic and international markets, and supplying natural gas to industry and the public in Azerbaijan
MRC

MOSCOW (MRC) -- Shipments of purified terephthalic acid (PTA) from China to India have resumed following India's cancellation of an anti-dumping investigation against China and the European Union last week, market sources said this week, reported Apic-online.

At least 25,000-30,000 mt of PTA had been booked from China for April headed towards India, an Indian trade source said.

Chinese PTA producers Zhejiang Yisheng Petrochemical and Hengli Petrochemical have shipped some 15,000-20,000 mt to India for April, and export volumes are anticipated to be increased for May, according to trading sources.

We remind that, as MRC informed earlier, Reliance Industries Ltd. (RIL) has recently successfully put into operation two plants in Dahej, Gujarat, India.The first is a polyethylene terephthalate (PET) resin plant, which consists of two lines with a combined manufacturing capacity of 650 KTA. The plant has been built with Invista technology for continuous polymerization and Buhler AG technology for solid state polymerization.

This is one of the largest bottle-grade PET resin capacity at a single location globally, and consolidates Reliance’s position as a leading PET resin producer with a global capacity of 1.15 MMTPA, the company said. PET resin from the new capacity would find application in packaging for water, carbonated soft drinks, pharmaceuticals and other food and beverages.
MRC

MOSCOW (MRC) -- TPSC Asia, formerly known as Total Petrochemicals SE Asia, has taken off-stream its polystyrene (PS) plant for maintenance turnaround, according to Apic-online.

A Polymerupdate source in Singapore informed that the plant was shut on April 12, 2015. It is planned to remain off-stream for around one month.

Located in Singapore, the plant has a production capacity of 100,000 mt/year.

We remind that, as MRC wrote before, Hong Kong Petrochemical shut its PS plant for maintenance turnaround in Q1, 2015. Located in Yuen Long industrial estate, Hong Kong, the plant has a production capacity of 140,000 mt/year.

Besides, French Total, Europe’s third-largest oil company, is in plans to start a new PS plant in China in September 2015. To be located at Ningbo, China, the plant is expected to have a production capacity of 200,000 mt/year.
MRC