GPPS imports to Russia fell by 42% in Q1 2015

MOSCOW (MRC) -- Imports of general purpose polystyrene (GPPS) to the Russian market decreased in the first quarter of 2015 by 42% year on year and totalled 3,500 tonnes, according to MRC DataScope report.


March GPPS imports rose by 17% from February to 1,600 tonnes. Traditionally, imports grow in the first half of the year. This year's lower imports were caused by the displacement of foreign grades by Russian material because of the increased production in the country.

The sector of extrusion grade GPPS for the foam products processing accounted for the greatest fall im shipments. Imports of these grades were only 160 tonnes in Q1 2015 versus 1,130 tonnes in the first quarter of 2014. Thus, the decrease in imports was caused by the increased output of GPPS for the extruded polystyrene (XPS) producers at Gazprom neftekhim Salavat this year. At the same time last year, the plant produced GPPS-115 grade, used in the injection moulding processing.

Imports of polystyrene for sheet extrusion fell by 35% to 1,700 tonnes, whereas imports of injection moulding GPPS grades dropped by 28% to 1,670 tonnes.

MRC

Upper end of pipe HDPE prices grew by Rb6,500/tonne in Russia

MOSCOW (MRC) - April prices for Russian pipe high density polyethylene (HDPE) increased by Rb3,000 - 6,500/tonne, according to ICIS-MRC Price Report.

Despite the expectations of many Russian pipe producers, they did not manage to roll over March PE prices for April delivery. Russian producers managed to increase prices for pipe HDPE significantly, citing strong demand and more expensive imports. April prices for pipe HDPE increased by Rb3,000-6,500/tonne, compared with the March level.

Demand for pipe HDPE was quite strong in the early April. Many market participants have built up stock inventories actively, some companies said that they purchased, taking into account the needs of the May. The supply of polyethylene in the market was tight, in particular natural PE100. There was available only HDPE from Nizhnekamskneftekhim.

But in the second half of April, demand for pipe HDPE has significantly weakened. One of the key factors of the demand weakening was the problem with working capital; converters had problems with crediting. As a result, many pipe producers had to change their plans for the feedstock procurement.

April deals for Russian natural PE 100 were done in the range of Rb89,000-93,500/tonne FCA, including VAT. The price range of black PE100 was less significant, the deals were done in the range of Rb92,500-94,500/tonne CPT Moscow, including VAT.

MRC

Clariant returns to profit in Q1 but suffers franc appreciation

MOSCOW (MRC) -- Clariant has posted a first-quarter net profit of Swiss francs (Swfr) 87m (USD91.6m) from a net loss of Swfr48m in the previous corresponding period because of a substantial decline in restructuring costs, said the company in its press relelase.

Q1 sales decreased 2 pct to 1.465 billion Swiss francs (USD1.53 billion) from 1.492 billion Swiss francs.

Q1 net result from continuing operations at 87 million francs compared to net loss of 39 million francs.

Clariant said that exceptional items including restructuring, impairment, and transaction-related costs declined to Swfr13m compared to Swfr99m in the first quarter of 2014.

Clariant’s largest division, Plastics & Coatings, registered a 1% growth in sales in local currencies during the first quarter of 2015 but a decrease in francs of 4% to Swfr619m, with earnings before interest and taxes (EBIT) decreasing 11% in local currencies and 17% in francs.

Plastics & Coatings’ Masterbatches subdivision also took a hit from the cold winter in North America, where sales declined, although they remained flat in Europe and grew in Latin America and Asia, with both India and China performing well. The subdivision Additives benefited from good sales of halogen-free flame retardants for electrical applications and electronics recovered.

Sees FY 2015 further increase in its EBITDA margin before exceptional items above full-year 2014 and increase cash flow generation.

As MRC informed earlier, Clariant announced that it has acquired the black pigment preparations portfolio of Lanxess, located at Nagda, Madhya Pradesh.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints. Clariant India has local masterbatch production activities at Rania, Kalol and Nandesari (Gujarat) and Vashere (Maharashtra) sites in India.
MRC

PVC imports to Kazakhstan slumped by 47% from January to March 2015

MOSCOW (MRC) -- Imports of unblended polyvinyl chloride (PVC) into Kazakhstan fell over the first three months of 2015 by 47% year on year to slightly more than 6,200 tonnes, reported MRC analysts.


March imports of unblended PVC to Kazakhstan rose to 3,200 tonnes under the pressure of seasonal factors versus 2,100 tonnes in February. The overall imports of resin decreased to 6,200 tonnes from January to March 2015 from 11,600 tonnes over the same period of 2014. Such a major fall in PVC imports to Kazakhstan was caused by both weaker demand for resin from local producers and virtually a complete cessation of further PVC re-imports into Russia.

Chinese producers, with the share of about 98% of the local market over the stated period, are the main PVC suppliers to the Kasakh market because of the geographical factor.
MRC

PetroChina profit falls to lowest on record as oil declines

MOSCOW (MRC) -- PetroChina Co. has posted its lowest quarterly profit on record as weaker oil prices took their toll on earnings. The result missed some analysts’ estimates and its shares dropped, reported Bloomberg.

Net income at China’s biggest oil and gas producer fell 82% to 6.15 billion yuan (USD991 million) from 34.2 billion yuan a year ago, the company said in a statement Monday.

"We expect this to mark the low point for the year," Neil Beveridge, a Hong Kong-based analyst at Sanford C. Bernstein, said in an e-mail. "As oil prices recover in 2015, so should earnings," he said, noting that the result was lower than the consensus forecast.

Beijing-based PetroChina joined Cnooc Ltd., China’s biggest offshore oil and gas explorer, in reporting a decline in earnings after Brent, the benchmark for half of the world’s crude trading, tumbled 42% over the past ten months. PetroChina’s profit was the lowest since 2007, when Bloomberg started compiling quarterly data on the company.

Its shares fell 5.1% to HKD10.10 as of 9:48 a.m. in Hong Kong, compared with a 0.3% decline in the city’s benchmark Hang Seng Index.

Sales fell 22% to 410.3 billion yuan while the average realized crude price dropped 51% to USD48.87 a barrel from a year ago, according to the statement. Oil and gas output rose 4.9% to 381.2 million barrels of oil equivalent in the quarter.

PetroChina’s 2015 profit may drop 47% to 56.6 billion yuan, according to the mean estimate of 27 analysts compiled by Bloomberg.

Sinopec, which saw its no. 2 official resign on Monday as part of the government’s escalating crackdown on corruption in the oil sector, is expected to report a 1.88 billion yuan loss when it reports first-quarter earnings on Wednesday, according to the average estimate of four analysts compiled by Bloomberg.

As MRC informed earlier, on 9 April 2015, PetroChina Co. passed Exxon Mobil Corp. as the biggest energy company by market value for the first time since 2010. Exxon’s capitalization was USD352.6 billion compared with PetroChina’s USD352.8 billion as of 1:36 p.m. on Thursday, 9 April, in Shanghai. The Chinese company’s A shares surged about 61 percent the past year, versus Exxon’s 14 percent drop. PetroChina was larger by value most recently at the close of trading on June 25, 2010.

PetroChina Company Limited, is a Chinese oil and gas company and is the listed arm of state-owned China National Petroleum Corporation, headquartered in Dongcheng District, Beijing. It is China's biggest oil producer.
MRC