PP imports in Belarus decreased by 3.5% in January - May 2015

MOSCOW (MRC) - Imports of polypropylene (PP) into Belarus slightly exceeded 32,200 tonne in first five months of this year, down 3.5% year on year, compared to the same period in 2014. Demand for propylene copolymers decreased significantly, as per MRC analysts.

According to the National Statistical Committee of the Republic of Belarus, May PP imports in Belarus decreased to 6,500 tonnes, compared to 7,800 tonnes in April. The reduction resulted from the large carryovers left from April purchases of polypropylene. Total PP imports into the country exceeded 32,200 tonnes in January - May 2015, compared with 33,400 tonnes in the same time a year earlier. Demand for propylene copolymers significantly reduced; the volume of purchases of homopolymer PP grew by only 0.5% over the reported period.

Structure of PP delivery over the reported period looked as follows.

May imports of homopolymer PP in Belarus decreased to 4,500 tonnes, compared with 5,000 tonnes in April on the back of the reduced supply from Russian producers. Imports of homopolymer PP in Belarus totalled 22,700 tonnes in January-May 2015, compared with 22,600 in the same time in 2014.

May imports of propylene copolymers decreased to 2,000 tonnes against 2,800 tonnes a month earlier because of the lower purchase of injection moulding PP block copolymers from Russian producers. Imports of propylene copolymers in Belarus decreased to 9,500 tonnes in the first five months of the year, down 12% year on year.

The main suppliers of copolymers of propylene to the local market in the first five months of the year were Russian producers, with 6,800 tonnes shipped over the reported period. The purchases of propylene copolymer in Europe decreased at times including because of the high level of export prices.

MRC

MOSCOW (MRC) -- Reliance Industries Ltd. (RIL), operator of the world’s biggest oil-refinery complex, said first-quarter profit rose 12% as lower crude costs boosted earnings from fuel sales, as per Hydrocarbonprocessing.

Net income increased to 63.2 billion rupees (USD987 million) in the three months ended June 30 from 56.5 billion rupees a year earlier, the Mumbai-based company said Friday in a stock exchange statement. That beat the
62.5 billion-rupee median of 16 analyst estimates compiled by Bloomberg.

The company's sales fell 32% to 658.2 billion rupees.

As MRC reported before, RIL will invest up to USD700 mln in its shale gas venture in the current fiscal and also ramp up spends under the USD13 bln capex programme in the petrochemical and refining business.

Reliance Industries is one of the world's largest producers of polymers. The company's polymer production in 2010-11 (polypropylene, polyethylene and polyvinyl chloride) made 4,094 kilo tonnes.
MRC

MOSCOW (MRC) -- Uponor is embarking on a streamlining programme to adjust the operations of Building Solutions – Europe to the weak demand prevailing in Europe, said Globenewswire.

The segment’s business is being hampered by a lengthy period of subdued demand in the building industry and, more recently, intensifying competition in the largest market sector, residential new builds in Germany.

The company is targeting annual savings of around EUR3 million within Building Solutions – Europe. For instance, it plans to adjust its sales network as well as to centralise and outsource some support functions to a greater extent than now. It is estimated that these initiatives will incur a total of EUR4–5 million in non-recurring costs, which will be booked during 2015.

The planning has been initiated and more details will be communicated when the plans are ready. In sum, the measures are expected to account for around 100 man years of work in Building Solutions - Europe. As a first step in June, Uponor launched a codetermination process in Sweden aimed at a reduction of 20 permanent and 20 temporary jobs.

As MRC informed earlier, Uponor is to invest in the construction of a plant for the manufacture of plastic pipes for the water supply systems of the Leningrad Region. According to a source from Uponor Rus, plant capacity will amount to 1 million m of pipes per year.

Uponor is an international market leader, striving to provide better plumbing, indoor climate and infrastructure solutions across Europe, North America and in other international markets. In close partnership with building industry professionals we are continuously seeking out innovative ways to ensure our systems offer the most efficient, reliable and high-performing solutions available to residential and commercial structures around the globe.

MRC

MOSCOW (MRC) -- Repsol is considering selling assets in countries including Venezuela as the Spanish oil company seeks to reduce debt after its USD13 billion purchase of Talisman Energy last year, said Hydrocarbonprocessing.

As part of its plan to reduce peripheral assets, Madrid-based Repsol may also look at divestments in Alaska, Bolivia and the Gulf of Mexico, two of the people said, asking not to be identified as the matter is private. No final decision has been made and the company is still deciding which units to sell, or whether to keep the assets, they said.

After acquiring Talisman in the biggest foreign acquisition by a Spanish company since 2006, Repsol CEO Josu Jon Imaz is focusing on integrating the two companies while increasing cash flow and reducing costs.

Repsol aims to sell about USD1 billion in assets over 12 months, Imaz said in December after the company announced its offer to acquire Talisman Energy. Repsol has subsequently said it is looking to sell peripheral assets.

A spokesman for Repsol declined to comment on asset sales.

Production from Talisman’s assets is expected to almost double Repsol’s output to around 700,000 bpd. To avoid growing too big as new projects come on-stream and dilute the contribution of refining, the company has said it plans to divest certain assets over time.

Repsol also needs to maintain its credit rating, which stands at BBB- at Standard & Poor’s, the lowest investment grade. The Talisman deal included almost USD5 billion of debt owed by the Canadian producer. With crude trading near USD50/bbl, the company is reluctant to sell production assets and will start with downstream assets like pipelines, CEO Imaz has said.

As MRC informed earlier, Repsol recently lifted force majeure on delivery of high-density polyethylene (HDPE) at Sines (Sines), Portugal. The company resumed production of HDPE in normal mode on July 17.

Repsol S.A is an integrated Spanish oil and gas company with operations in 28 countries. The bulk of its assets are located in Spain.

MRC

MOSCOW (MRC) -- Brazilian state-controlled oil company Petrobras said it has identified "irregularities" in the 2009 naphtha supply contract with local petrochemicals company Braskem, a sign that a widespread bribery scandal may have tainted the deal, as per Plastemart.

Petrobras said that it is "adopting the necessary administrative measures" and has also shared the results of their internal investigations with authorities. Braskem said in a statement to the local securities regulator that it is conducting its own independent investigation and does not believe that the Petrobras investigation can be considered conclusive because Braskem employees did not participate.

The two companies are currently negotiating a long-term naphtha supply contract, which needs to be signed by 31 August. In February, the two companies reached a last-minute agreement to extend its naphtha supply contract for six months. This was the third contract extension.

Braskem depends on Petrobras for 70% of its naphtha requirements and imports the rest from other suppliers. Because of logistical constraints, Braskem cannot increase its naphtha imports.

As MRC informed previously, Braskem plans to build a new polyethylene (PE) plant at its existing complex in La Porte, Texas. The new plant will manufacture ultra-high molecular weight polyethylene (UHMWPE), making it the first time for Braskem to produce UHMWPE outside of its home base in Brazil. Construction on the plant will begin in the third quarter of 2014, with completion expected in the first half of 2016.

Braskem is Brazilian main producer of polyethylene and polypropylene. In addition with ongoing plants located in both petrochemical complexes, in April 2008 Braskem opened a 300,000 metric ton polypropylene plant in the city of Paulinia (Sao Paulo).
MRC