475,000 tpa new production capacity of bisphenol-A to come online in 2011

(Plastemart) -- The bisphenol-A (BPA) industry is expected to be more competitive in 2011 with addition of 475,000 tpa new capacity. Over half of this (57%) will come from Saudi Kayan Petrochemical Company's new phenolics complex at Jubail Industrial City, with capacity to produce 270,000 tpa BPA, expected to begin operations in the final week of December. Most of Saudi Kayan's BPA output will feed its 260,000 tpa polycarbonate plant within the same complex.

The balance 43% of new BPA capacity will come onstream in Asia:
Thailand's PTT Phenol expects to begin commercial operations at its new 150,000 tpa BPA plant at Map Ta Phut, Rayong province in Q1-2011.
Bayer Thai plans to increase BPA production capacity by 24% and polycarbonate by 10% by the end of 2010 at Map Ta Phut, increasing BPA production to 280,000 tpa and polycarbonate production to 275,000 tpa.

MRC

(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