Global specialty polymers market to see good growth till 2020

MOSCOW (MRC) -- Specialty polymers market is expected to witness significant growth owing to increasing applications in electronics and construction industry mainly in Asia Pacific, as per Plastemart with reference to GrandViewResearch.

In addition, growing usage of specialty polymers in wide range of industries including pharmaceutical, automotives and cosmetics is expected to drive demand over the next six years. Increasing consumption in automotive applications primarily in engineering thermoplastics and specialty films is expected to augment market growth.

Asia Pacific is expected to show lucrative growth on account of economic development along with increasing disposable income, thereby contributing to the growth of numerous industries including automotive, construction and infrastructure in China and India.

Moreover, increasing high government spending on infrastructure and robust industrialization in the region is expected to stimulate market growth. However, volatility in raw material prices fluctuation in prices of raw materials is expected to restrain market growth over the next six years.

Rising demand for high performance polymers as a result of its superior properties including corrosion resistance, resistance to wear, endurance limit, electrical insulation and thermal stability is expected to propel market growth over the forecast period.

Key market players include Evonik Industries, Ashland, BASF, Croda, Specialty Polymers Inc., PolyOne, The Dow Chemical Company, Solvay Group, 3M, Alpek, AmeriLux International, A.Schulman, DSM and Arkema. Solvay Group offers a wide range of innovative specialty polymers for sustainable and green coatings.

We remind that, as MRC informed earlier, in April 2015, Solvay Specialty Polymers USA LLC launched an expansion project at its Augusta manufacturing site to install the first world-scale polyether-etherketone (PEEK) resin production unit in the United States and meet growing demand for Solvay’s KetaSpire and AvaSpire ultra-polymers.
MRC

MOSCOW (MRC) -- Dow has reduced run rates to 90% at its Argentinian cracker amid government-imposed natural gas curtailments, as per Plastemart with reference to a company source in Platts.

Every winter since 2006, the Argentinian government has curtailed ethane and LPG supplies to industrial users by up to 30%, and the start of this winter's cuts kicked in over the weekend. Dow "began following processing restrictions (imposed) by the authorities that manage the country's energy," the source said. The reduced run rate was not due to any ethane shortages from Mega, Dow's main feedstock supplier, or any issues at the joint venture's plants. The restrictions began to diminish considerably thanks to imports of gas and new gas supplies, both conventional and unconventional. "We hope that similar to 2014, fewer restrictions will happen this year," the source said. Dow

Argentina has been looking to North America for ethylene prior to the reduction in run rates, market sources say.
Dow Argentina operates two ethane-fed steam crackers and polyethylene production at its Bahia Blanca petrochemical complex. Ethane is a natural gas liquid used in the production of ethylene, which can then be transformed into polyethylene.

Dow's Bahia Blanca site has an ethylene production capacity estimated at 765,000 mt/year, according to Platts Analytics data. Petrochemical producers in Argentina see feedstock supply curtailments during the winter months, when heating and other residential use tends to be at its highest, the source said.

As MRC reported earlier, in November 2014, The Dow Chemical Company announced an increased divestiture target aligned to further enhance the value of its portfolio and support the company’s market-driven, integrated strategy. On track to complete its goal of realizing USD4.5 billion to USD6 billion in proceeds by year-end 2015, and with additional portfolio management actions underway, Dow is now increasing its divestiture target to USD7 billion to USD8.5 billion to be complete by mid-2016. Since 2013, the company has generated USD2.5 billion in proceeds, reallocating this capital to remunerate shareholders, fund growth and reduce debt.

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) -- German chemicals group BASF SE is considering a potential offer for Syngenta AG, its Swiss rival which has received a USD45 billion takeover offer from Monsanto Co, said Reuters, citing people familiar with the matter.

BASF is speaking to investment bankers about the possibility of an offer for Syngenta, though it has made no decision and no bid may materialize, the people said, asking not to be identified because the deliberations are confidential.

Syngenta has so far spurned Monsanto's overtures citing antitrust hurdles, though lawyers representing the two companies met last week in New York to discuss whether the regulatory obstacles can be overcome, a separate source said. A BASF bid for Syngenta would also likely face significant antitrust issues.

BASF, Syngenta and Monsanto declined to comment.

BASF, the world’s largest chemicals group by sales, is also developing improved plant characteristics such as drought tolerability but relies on partners, the biggest being Monsanto, to bring finished seed products to market. Other partners of BASF’s plant biotechnology business, which does not disclose sales, include Bayer AG (BAYGn.DE) and Cargill Inc.

BASF’s crop chemicals division with 5.4 billion Euros in 2014 sales, commands about 11 percent of the global crop chemicals market, in third place after Syngenta and Bayer. Any tie-up with the Swiss group would be expected to trigger considerable antitrust related asset sales.

BASF is also a potential buyer of Syngenta's seed business should Monsanto agree to a deal with Syngenta and then sell its seed business to allay antitrust concerns, sources have previously told Reuters.

The German group, which has oil and gas operations and makes products including coatings, catalytic converters and super absorbers for diapers, trades at about 8.4 times core earnings compared with Syngenta’s multiple of 15.9, according to StarMine data.
MRC

MOSCOW (MRC) -- Malasian petrochemical producer Petlin (part of Petronas) has restarted its low density polyethylene (LDPE) plant, according to Apic-online.

A Polymerupdate source in Malaysia informed that the plant restarted this week. It was under a two-week maintenance turnaround.

Located at Kerteh, Malaysia, the plant has a production capacity of 255,000 mt/year.

Petlin (Malaysia) Sdn Bhd produces low density polyethylene. It supplies its products to customers in southeast Asia and China. Petlin was incorporated in 1999 and is based in Kertih, Malaysia. The company operates as a subsidiary of Petronas Chemicals Group Berhad.

As MRC reported earlier, Petronas has reportedly postponed the start-up of its USD16bn Refinery and Petrochemical Integrated Development (RAPID) project in Johor to mid-2019, citing a drop in oil prices over the past year. Thus, the company intends to commission the refining and petrochemical complex during mid-2019. The RAPID project involves construction of a 300,000 barrels per day (bpd) refinery and petrochemical complex, which will produce various speciality chemical products.
MRC