PVC plant planned to be shut by Formosa Plastics

MOSCOW (MRC) -- Formosa Plastics is in plans to shut a polyvinyl chloride (PVC) plant for maintenance turnaround, reported Apic-online.

A Polymerupdate source in Taiwan informed that the plant is likely to be shut in H2 April, 2015. It is likely to remain off-stream till May 1, 2015.

Located at Kaohsiung in Taiwan, the plant has a production capacity of 450,000 mt/year.

As MRC informed earlier, in August 2014, The US Environmental Protection Agency (EPA) issued three final GHG Prevention of Significant Deterioration construction permits for the Formosa Plastics facility in Point Comfort, Texas.
Formosa is expanding its chemical complex, located near Victoria, and taking three actions with its turbines unit, olefins unit and low-density polyethylene (LDPE) unit.

According to the olefins GHG permit, a new ethane cracker and propane dehydrogenation (PDH) unit will have a combined capacity of 1.75 million tpy of "high-purity ethylene product". Meanwhile, the LDPE unit will have a a capacity of 625,500 tpy and be able to produce resin at different grades.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company's plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
MRC

US PPG Q1 net income falls

MOSCOW (MRC) -- PPG Industries (PPG) reported that its net income from continuing operations attributable to the company for the first quarter 2015 increased to USD321 million or USD2.33 per share, from USD277 million or USD1.97 per share in the first quarter 2014, as per company's press release.

Quarterly adjusted net income from continuing operations was USD327 million or USD2.37 per share, up from USD279 million or USD1.98 per share in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of USD2.34 per share for the quarter. Analysts' estimates typically exclude special items.

Both quarters included portfolio transformation transaction-related costs, which were $6 million, or 4 cents per share, in 2015, and USD2 million, or 1 cent per share, in 2014. During the quarter, the adjusted effective tax rate from continuing operations increased to 24.4 percent versus 24 percent in the first quarter 2014, resulting principally from the inclusion of Comex acquisition earnings.

But, net income attributable to the company fell to USD322 million or USD2.34 per share from USD1.262 billion or USD8.97 per share in the previous year.

Quarterly net sales from continuing operations were USD3.7 billion, up 1 percent versus the prior year. Net sales in local currencies grew 8 percent year-over-year, including a 7 percent contribution from acquisition-related sales and a 1 percent improvement in sales volume. Unfavorable currency translation reduced year-over-year net sales by 7 percent, or about USD260 million. Wall Street analysts had a consensus revenue estimate of USD3.79 billion for the quarter.

PPG announced a business-restructuring program that includes actions necessary to achieve cost synergies related to recent acquisitions. In addition, the program aims to further right-size employee headcount and production capacity in certain businesses and regions based on current product demand and in various global administrative functions. A pretax restructuring charge of USD135 million to USD140 million will be recorded in PPG's second quarter 2015 financial results, of which about 85 percent represents cash charges.

PPG said it expects these restructuring actions will result in full-year pretax savings of USD100 million to USD105 million by 2017, including 2015 partial-year savings of USD15 million to USD20 million.

As MRC informed before, U.S. chemicals maker PPG Industries Inc had formally finalized its acquisition of Mexican paints maker Consorcio Comex for USD2.3 billion. The Pittsburgh-based PPG Industries said it had received a favorable ruling from Mexico's competition watchdog to complete the purchase, which came after the Mexican company's deal to sell to U.S. rival Sherwin-Williams Co fell through.

PPG Industries, Inc. (PPG) is a global supplier of protective and decorative coatings. Performance Coatings, Industrial Coatings and Architectural Coatings- EMEA segments supply protective and decorative finishes for customers in a range of end use markets, including industrial equipment, appliances and packaging; factory-finished aluminum extrusions and steel and aluminum.
MRC

LLDPE imports to Russia decreased by 6% in Q1 2015

MOSCOW (MRC) - Imports of linear low density polyethylene (LLDPE) in Russia decreased to 42,500 tonnes in the first three months of this year, down 6% year on year. The decrease in LLDPE imports resulted from the rouble devaluation and export quota restrictions at the majority of suppliers, according to MRC DataScope report.

March LLDPE imports into Russia decreased to 15,400 tonnes, compared with 16,800 tonnes in February. The main reason for the decline in the supply were reduced export opportunities of European and Middle Eastern producers. Total LLDPE imports in Russia were 42,500 tonnes in January - March 2015, compared with 45,300 tonnes year on year. Weak rouble affected LLDPE imports in the first three months of the year; some companies had to decrease imports because of high prices in line with limited crediting.

Structure of LLDPE supply over the reported period looked as follows. March imports of film LLDPE in the country grew to 13,700 tonnes, compared with 15,600 tonnes in February. The main reduction in supply occurred for Middle Eastern LLDPE for the production of stretch films.
Total imports of film LLDPE in Russia in the first three months of the year were 38,800 tonnes, compared with 41,000 tonnes year on year.

March imports of LLDPE for overall products by rotational moulding increased to about 600 tonnes, compared with 479 tonnes in February.
Total imports of LLDPE for overall products by rotational moulding in January-March decreased to 1,100 tonnes, compared with 1,900 tonnes year on year.

Russia's LLDPE imports in other sectors of consumption in March also increased on a seasonal factor to about 1,200 tonnes. Total LLDPE imports in January-March grew to 2,700 tonnes, compared with 2,500 tonnes year on year because of the stronger demand from the producers of laminated paper.
MRC

HDPE imports to Russia decreased by 19% in Q1 2015

MOSCOW (MRC) -- Russia's high density polyethylene (HDPE) imports totalled 43,100 tonnes in the first three months of the year, down by 19% year on year. Decline in imports resulted from a weaker demand at some sectors of consumption and growth in domestic production, according to MRC DataScope.

March HDPE imports into Russia fell to 14,300 tonnes, compared with 15,500 tonnes in February, the main decrease in March purchases occurred for local pipes producers. Total HDPE imports in Russia dropped to 43,100 tonnes in January - March 2015, compared with 53,300 tonnes year on year. The dependence on imports resulted from a weaker demand for this type of polyethylene, in particular, from the producers of pipes, cables and wires, as well as due to growth in domestic production.

Structure of HDPE imports over the reported period was as follows. March imports of HDPE for pipe extrusion reduced to 1,300 tonnes, compared to 3,300 tonnes in February, including because of the limited export quotas from European producers. Total HDPE imports in Russia were 5,500 tonnes in January - March 2015, compared with 10,200 tonnes year on year.
The key factors that contributed to lower imports, was the low demand for finished products and high prices for HDPE in foreign markets.
March imports of HDPE for extrusion coating of large-diameter pipes remained practically at the level of February at 5,100 tonnes. Total imports of HDPE for extrusion coating of large-diameter pipes in the country were 14,800 tonnes in January-March 2015, compared with 18,200 tonnes year on year. The main reason was the growth of domestic production of this type of polyethylene, in particular, Metakley last year began production of this type of polyethylene at the capacities of Gazprom neftekhim Salavat.

Import of injection moulding HDPE rose to 4,300 tonnes in March, compared with 2,600 tonnes in February because of the serious decline in production at Russian plants. Russia's imports of injection moulding HDPE exceeded 11,100 tonnes in Q1 2015, up 4% year on year.

March imports of HDPE for extrusion blowmoulding into Russia decreased to 2,100 tonnes, compared with 2,600 tonnes in February. The main reason for the decline in import volumes was the increase in the domestic production. Total imports of HDPE for extrusion blowmoulding into Russia were 7,300 tonnes in the first three months of the year, compared with 6,500 tonnes in the same period a year earlier.

The total imports of HDPE in other sectors of consumption in January-March 2015 slightly exceeded 4,500 tonnes, compared with 7,700 tonnes in the same timea year earlier.

MRC

Ufaorgsintez raised LDPE prices from 15 April

MOSCOW (MRC) -- Ufaorgsintez, owned by United Petrochemical Company, has announced an increase of Rb6,600-8,000/tonne in prices of high density polyethylene (LDPE), according to ICIS-MRC Price report.

The plant's customers said prices of all the produced polyethylene (PE) grades had risen since 15 April. Prices of LDPE for the production of general purpose films grew by Rb8,000/tonne from the level as of 1 April, whereas prices of shrinkable film PE rose by Rb6,600/tonne from early April.

Prices of polypropylene (PP) remained unchanged compared with the level as of 1 April.

Many market participants attributed such a major rise in LDPE prices to an unprecedented deficit in the Russian market over the past few years. LDPE prices had reached their historical high by the middle of the month,and they already exceeded Rb100,000/tonne FCA, including VAT, for some grades.

Ufaorgsintez OAO was founded in 1956 and is based in Ufa, Russia. Ufaorgsintez OAO manufactures organic synthesis products in Russia and Europe. Its products include ethylene, propylene, ethanol, cumol, ethyl benzol, phenol, acetone, copolymer rubber, polyolefines (polyethylene and polypropylene), polyvinyl chloride, thinners, and dilutants. The company was incorporated in 1984. United Petrochemical Company owns 87.76% of Ufaorgsintez"s capital. Bashneft sold Ufaorgsintez to United Petrochemical Company in May 2013.

According MRC ScanPlast report, the overall plant's PE and PP totalled 16,200 tonnes and 21,000 tonnes, respectively, in January and February 2015.
MRC