Sabic closing Pennsylvania compounding plant

MOSCOW (MRC) -- Pittsfield, Mass.-based Sabic IP tentatively announced the closing on Sept. 18. Officials now are meeting with United Steelworkers Amalgamated 1165-07 — the union that represents most of the plant’s workers — and expect to make a final decision within 60 days, the company said in a statement.

The 50-year-old Thorndale site makes LNP-brand compounds based on polycarbonate, nylon and other engineering resins for use in consumer electronics and similar applications. Sabic IP officials said in the statement that more of the customer base for those products is now located in the Pacific region, and that this trend “is expected to accelerate.

"These customers continue to request local production in the Pacific and shorter lead times to rapidly meet the constant demand for the latest consumer electronic devices," they added. "Customer preferences, combined with flat growth for Americas product demand, has been preventing Sabic’s specialty compounding facilities in the Americas from operating at rates approaching full capacity."

Sabic plans to increase its production of these materials in the Pacific, spokeswoman Shelia Naab said by phone. Regional production of the products also can be increased at plants in Columbus, Ind., and San Luis Potosi, Mexico, if needed, she added.

Union officials could not be reached for comment. The Thorndale site originally was part of LNP Engineering Plastics, which in 2002 was bought by the GE Plastics unit of General Electric Co.

Saudi Basic Industries Corp. — the Riyadh, Saudi Arabia-based parent of Sabic IP — then bought GE Plastics in 2007.
MRC

MOSCOW (MRC) -- Bank of America Corp. is starting to see faint signs of an economic recovery in Russia, said Bloomberg.

The magnitude of a slowdown in capital investment is easing, while corporate profits have been increasing, a combination that Vladimir Osakovskiy, the bank’s chief economist in Moscow, said could mark a turning point. The country’s recession may have bottomed when gross domestic product shrank 4.6 percent in the second quarter, and considering that company spending will probably drive the recovery, that stabilization is likely to be more important for the broader economy than persistent weakness in consumer demand, he wrote in a report last week.

"Corporate profits in Russia are quite good year-to-date, and we look at robust growth in corporate profits as the main potential driver of stabilization and recovery in the near future," Osakovskiy said by phone from Moscow last week. "We might see that the main macroeconomic indicators will start to improve on a year-over-year basis later this year, but we obviously have to wait until the increase in corporate profits spills over to the pickup in investment."


MRC

MOSCOW (MRC) - In September prices for pipe polyethylene (PE) expectedly increased, which led to the deficit in the market. Price offers for pipe high-density polyethylene (HDPE) exceeded roubles (Rb) 120,000/tonne in the late September, according to ICIS-MRC Price Report.

September is traditionally one of the most difficult months of the year for the Russian producers of polyethylene pipes. The main reason was a scheduled maintenance works at the largest PE producer - Kazanorgsintez.

Current year except for a serious deficit characterised by record price levels. Spot market prices for natural PE100 exceeded the level of Rb120,000/tonne.

A shortage of pipe polyethylene began in August, while in September, the deficit increased significantly. Many market participants said black pipe HDPE by Nizhnekamskneftekhim and Kazanorgsintez production was contracted, and the material was not delivered in the spot market. Contract prices rose by Rb4,000-7,000/tonne from the August's level.

Nizhnekamskneftekhim offered natural pipe HDPE in the spot market only in the mid-September. In the most cases deals for PE from Nizhnekamskneftekhim were done in the range of Rb120,000-125,500/tonne FCA Nizhnekamsk, including VAT. In some cases, deals reached Rb130,000/tonne FCA, including VAT.

Gazprom neftekhim Salavat last week began offering natural pipe HDPE in the market. The low end of the producer's price was at Rb120,000/tonne FCA, including VAT.

Nevertheless, despite the beginning of the delivery of pipe HDPE from Nizhnekamskneftekhim and Gazprom neftekhim Salavat in the second half of September, many pipe producers have not been able to replenish their inventories and had to temporarily suspend their work. There is no substitute for the Russian pipe HDPE for local converters.

European producers reduced export quotas, the price for European feedstock given the current exchange rate was close to the level of Rb140/tonne, including VAT and delivery.

Export PE prices in Asia are significantly lower, but because of the long-term logistics the delivery time was not less than 35 days, which is not suitable for Russian converter given the approaching winter.
MRC

MOSCOW (MRC) - Tomskneftekhim (subsidiary of SIBUR Holding) resumed production of low density polyethylene (LDPE) following scheduled maintenance works, according to MRC analysts.

The company's customers said Tomskneftekhim on 28, September completely resumed operation at polyolefin complex following scheduled maintenance works.

The turnaround at LDPE production was launched on 28, August, and at PP production on 5, September.

As MRC informed earlier, Tomskneftekhim in the first eight months of this year produced 171,900 tonnes of LDPE and 93,900 tonnes of PP, up 2% and 15% respectively than in the same tine in 2014.

Tomskneftekhim LLC is a subsidiary of SIBUR and one of the largest Russian producers of polymers - polypropylene and low density polyethylene. The enterprise includes the production of monomers - ethylene and propylene (installed capacity: 300,000 tonnes/year and 139,000 tonnes/year, respectively), and fully provides with raw materials production of polymers: polypropylene (capacity - 140,000 tonnes/year) and high-density polyethylene (capacity - 245,000 tonnes/year).
MRC

MOSCOW (MRC) -- Celanese Corporation, a global technology and specialty materials company, will increase list and off-list selling prices for acetic acid in China in view of recent market conditions, as per the company's press release.

The price increase of RMB 100 per meic ton is effective immediately, or as contracts allow.

Celanese last raised list and off-list selling prices for acetic acid in May 2015 in view of the recent rapid increase and continued volatility in China methanol prices. The price increase was then RMB150/tonne for China.

As MRC wrote before, Celanese Corporation raised its April prices of vinyl acetate-based emulsions sold in Asia. Vinyl acetate ethylene (EVA) emulsions increased by Yuan 400/tonne for China and USD55/tonne for the rest of Asia effective April 24, 2015, or as contracts allowed. That increase was attributed to the continued pressures on raw materials, notably ethylene and VAM and affected all applications including, but not limited to, adhesives, paints and coatings, waterproofing, building and construction, glass fiber, carpet and paper.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Texas, Celanese employs approximately 7,500 employees worldwide and had 2014 net sales of USD6.8 billion.
MRC