Film HDPE supplies to Ukraine increased in November

MOSCOW (MRC) -- In November Ukrainian companies increased HDPE supplies to the domestic market. Supplies of film HDPE grew twice as much that allowed to phase out deficit, according to MRC analysts.

In September while expecting restart of HDPE production at Karpatneftekhim (Lukoil Group) and output of cheaper domestic film polyethylene, Ukrainian companies considerably reduced material purchases in Europe and Russia. By October capacities in Kalush had reached full loading but polyethylene supplies to the domestic market occurred only mid-November.

In September-October film HDPE supplies to the Ukrainian market grew to the level of 3.8 - 4 KT, as a result there was insignificant deficit in the market. In November Ukrainian companies widened the geography of PE purchases and increased total imports to 6 KT. Also the first PE from Kalush appeared.

In December many European producers considerably limited their export quotas for film PE. Deficit in the market of film HDPE in Russia also affected export prices and quotas this month for the Ukrainian market. And the euro's decline against the dollar made the Russian material more expensive compared to the European one. Still there are problems with Kalush supplies to the domestic market.

Nevertheless the Ukrainian market of film HDPE doesn't demonstrate serious problems. Seasonal reduction of demand balanced the market. The growth of export prices for European HDPE by EUR 20-30/mt levelled euro rate. The prices for European film polyethylene remained without considerable changes compared to November and they are within the range of 14.400 - 14.800 UAH./t, including VAT, FCA.

MRC

(Plastemart) -- Organization of the Petroleum Exporting Countries (OPEC) has decided to maintain its production policy despite acute winters in the Northern Hemisphere. Demand for heating oil has surged, and oil prices have spiked past US$90 this month as colder than normal temperatures have swept across Europe, USA and parts of East Asia. Demand is expected to rise as Europe is expected to remain very cold.

The International Energy Agency has raised its 2011 oil demand growth forecast, and have indicated that fundamentals are strong, with oil stocks beginning to fall from historically high levels. However, concerns abound about the strength in commodities from China, as the government tightens money supply and could raise interest rates.

MRC

(PRW) -- UK-based Yule Catto has agreed to acquire Germany's PolymerLatex from TowerBrook Capital Partners. The transaction, which is subject to the necessary regulatory and shareholder approvals, is expected to be completed during the second quarter of 2011. Yule Catto is already the owner of the Synthomer polymers business.

Synthomer and PolymerLatex are important suppliers of emulsion polymers, which are used to manufacture a wide range of products including paints and coatings, adhesives, construction products, synthetic latex gloves, paper and textiles, floor coverings and PVC.

MRC

(PRW) -- Netherlands-based Plasticon Europe has reached an agreement to buy AC Plastiques, Canada, a manufacturer of composite tanks, apparatus and piping systems with plants in Montreal, Baton Rouge and Shanghai. Terms were not disclosed.

Plasticon bills itself as Europe's largest manufacturer of specialty engineered glass-fibre-reinforced plastic and dual laminate products.

The company that has plants in the Netherlands, the UK, Germany, Poland, France, Finland, Thailand and Malaysia said that the acquisition of Montreal-based AC Plastiques will strengthen Plasticon's core business and help it to explore markets where it currently has limited presence.

AC Plastiques will remain an independent entity, retaining its name and serving the North American market.

MRC

(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