PetroRabigh to conduct scheduled maintenance work in April

(Plastemart) -- PetroRabigh plans to conduct scheduled maintenance work at its refining and petrochemicals complex in April. The 400,000 bpd refinery in Rabigh is planned to be shut for maintenance from late April to end of May. Duration of the shutdown has not been specified. The company is building up its stocks of refined products and petrochemicals to meet customers' needs during the maintenance period. PetroRabigh is a joint-venture between Japan's Sumitomo Chemical and State oil giant Saudi Aramco.

MRC

(Plastemart) -- Supporters and opponents of the plan to build Kuokuang Petrochemical Technology complex clashed in central Taiwan at a public hearing regarding the project held by the government.

According to the latest blueprint submitted by the company to the government for environmental impact evaluation, the proposed complex will occupy 2,836 hectares of coastal land. The first phase is scheduled to be completed in 2016 will boost economic growth significantly, according to its backers. But environmental activists insist that Taiwan, long plagued by industrial pollution, can no longer afford such large energy-guzzling projects.

MRC

(iAfrica) -- The Competition Commission has reached a settlement with Sasol Polymers, a division of Sasol Chemical Industries, in which Sasol (SOL) admits that the supply agreement between it and Safripol resulted in indirect price fixing.

Sasol Polymers has agreed to pay a penalty of R111.69-million, which represents three percent of its 2009 total annual turnover derived from polypropylene products.

In its investigation the Commission found that Sasol and Safripol engaged in collusive conduct as a result of the implementation of the supply agreement including the operation of the pricing formula and the exchange of information relating to the pricing of polypropylene.

At the conclusion of its investigation, the Commission found that Sasol had charged excessive prices for polypropylene and propylene to its local customers in line with import parity pricing. The Commission's findings and allegations of excessive pricing are being contested by Sasol and are still to be heard by the Tribunal.

This case was initiated in 2007 following concerns raised by the Department of Trade and Industry (dti) about polymer pricing and its negative effect on diversified growth and employment in manufacturing.

Sasol is the dominant supplier of polypropylene for its own use and that of Safripol. It is also the major supplier of polypropylene to the South African market.

MRC

(ICIS) -- Asian ethylene prices are likely to ebb for January-delivered cargoes, as the robust Chinese import demand is seen fizzling out on a weakening downstream domestic market, traders said on Wednesday.

For January, top energy user China is expected to reduce spot ethylene imports to possibly 4,000-5,000 tonnes, following a hefty purchase of 10,000 tonnes or more for December delivery to plug a domestic shortfall, they added.

Prices of ethylene - the basic petrochemical building block - were assessed at $1,150-1,170/tonne (┬863-878/tonne) CFR (cost and freight) Northeast (NE) Asia on Wednesday, down $20-30/tonne from levels earlier in the week, ICIS data showed.

Reflecting a weakening market, Asian polyvinyl chloride (PVC) prices were expected to drift lower due to the softening domestic prices in China, traders said. Plus, with the upcoming long Chinese Lunar New Year holidays in early February, buyers could defer their purchases until after the holiday. As a result, demand for January PVC cargoes were expected to be weak, they said.

Furthermore, news that China had met its energy saving and emissions reduction targets, led to market players' beliefs that the power rationing policy would be relaxed or even stopped by the end of the year.

This would lead to increased chlor-alkali operating rates, which would result in an excess supply of PVC from China, further exerting downward pressure on PVC prices, traders said.

MRC

(ICIS) -- Polyethylene (PE) buyers in Europe who are trying to obtain extra volumes in an effort to avoid higher prices in January face increased spot prices from traders and closed order books from producers, market sources said on Wednesday.

December monthly business was progressing normally. Many large retroactive accounts had not yet settled, and there were expectations of price increases of ┬30/tonne ($40/tonne) from November, which would cover producers' increased ethylene costs.

Extra sales, on top of contractual volumes, were reported at much higher levels, particularly for low density PE (LDPE) and high density PE (HDPE) injection grades.

LDPE gross contractual prices were now reported above ┬1,400/tonne FD (free delivered) NWE (northwest Europe), netting back to around ┬1,300/tonne in some cases as discounts were applied.

Many sellers had taken the decision to hold on to inventories and sell at higher prices in January. As a result, when there was material available, spot LDPE prices were now being offered at ┬1,340-1,350/tonne FD NWE on a net basis. In comparison, November spot LDPE levels had been trading at ┬1,230-1,240/tonne FD NWE.

Price increases were most pronounced in the HDPE sector. After trading around the ┬1,000/tonne FD NWE level for many months, HDPE injection prices now traded as high as ┬1,160/tonne FD NWE on a net basis. Several buyers said that they were unable to get all the extra volumes they needed.

MRC