US Celanese plans to enter China's fuel ethanol market

(ICIS) -- US chemical company Celanese plans to enter China's fuel ethanol market to capitalise on the country's goals in renewable fuels consumption, chief financial officer Steven Sterin said on Wednesday.


Celanese announced in November its plans to build one or two coal-based ethanol plants in China - each with capacity of 400,000 short tons/year. Each plant's capacity could be expanded to 1m tons/year at a fraction of the original capital investment, said Sterin in an interview with ICIS.


The cost to build a 400,000 ton/year plant was expected to be around $300m (┬225m), he added.


Once approved, the Chinese plants - whose locations were still to be decided - would take 30 months to build and would initially serve the domestic industrial ethanol market, which was growing 8-10%/year, as estimated by Celanese.


Current chemical applications demand for ethanol in China - for products including solvents, inks, lacquers, paints and coatings - was estimated at 3m tons/year, according to the company.


MRC

Sales up for compounding extruder makers

(Plastics News) -- Executives of many compounding extruder makers report a broad pickup in U.S. machinery sales ≈ to customers making filled materials, engineering resins, color masterbatch and biomaterials. One big reason: a rebounding automotive sector, which ripples through the entire plastics supply chain. Now auto sales are growing again, after the miserable 2009 ≈ when U.S. sales sank to around 10 million and General Motors Co. and Chrysler Group LLC plunged into government-funded bankruptcy.


Sales for this year are expected to grow to 11.5 million, about 15 percent. And estimates call for 2011 sales between 12 million and 13 million cars and trucks. Now automotive suppliers are feeling healthy and ready to upgrade their compounding lines, according to several machinery executives.


KraussMaffei Corp. President Paul Caprio said the Florence, Ky.-based company has seen a ⌠tremendous increase in quotes and orders for Berstorff compounding machines.


Century Extrusion President Bob Urtel also saw extruder sales pick up in the middle of the year. Urtel said business is well-rounded at the company in Traverse City, Mich., including recycled plastics, masterbatch and general compounding.


MRC

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

OPEC targets unchanged: oil prices rise

(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

Yule Catto buys PolymerLatex from TowerBrook Capital

(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