PE imports to Russia dropped by 15% in 2016

MOSCOW (MRC) -- Last year's overall imports of polyethylene (PE) into the Russian market decreased by 15% year on year to 485,5000 tonnes. All consumption segments accounted for lower imports, with copolymers of ethylene-vinyl-acetate (EVA) being the exception, according to MRC's DataScope report.

December PE imports into the Russian market rose to 40,300 tonnes from 35,900 tonnes a month earlier, with high density polyethylene (HDPE) accounting for the main increase in imports. Overall 2016 PE imports fell to 485,500 tonnes from 572,000 tonnes a year earlier. The linear low density polyethylene (LLDPE) and HDPE segments accounted for the greatest reduction in imports.

The structure of PE imports by grades looked the following way over the stated period.

December LLDPE imports grew to 13,600 tonnes from 11,600 tonnes a month earlier, with Middle Eastern PE accounting for the main rise in shipments by stretch films producers. Last year's LLDPE imports totalled 172,800 tonnes, compared to 217,300 tonnes a year earlier. Lower imports were partially caused by the increase in the domestic production.

Last month's HDPE imports grew to 16,300 tonnes from 11,600 tonnes a year earlier, local companies increased purchasing of HDPE in Uzbekistan on the back of low export prices of local producers and a major strengthening of the rouble against the dollar. Overall HDPE imports decreased to 153,600 tonnes over the stated period versus 192,600 tonnes a year earlier.

December imports of low density polyethylene (LDPE), excluding shipments from Belarus, were 4,300 tonnes, compared to 6,400 tonnes a month earlier. Overall 2016 LDPE imports fell to 87,900 tonnes from 102,900 tonnes a year earlier.

Last month's EVA imports virtually remained at the level of November and were 2,800 tonnes. Imports of this ethylene copolymer grade grew by 46% over the stated period to 27,000 tonnes. Demand for this material increased from producers of footwear and cable and wire products.

Imports of other polymers of ethylene totalled 44,200 tonnes last year.

MRC

MOSCOW (MRC) -- The ethylene-propylene elastomer market is highly dependent on both the building construction sector and the automotive sector. Ethylene-propylene elastomers (EP elastomers) are one of the most widely used and fastest growing synthetic rubbers, after polybutadiene rubber and styrene-butadiene rubber (SBR), as per Plastemart.

Ethylene-propylene elastomers have outstanding resistance to ozone, aging, weather and high temperature; good low-temperature flexibility and excellent electrical properties. Ethylene-propylene elastomers are also resistant to polar solvents like acids, water, phosphate esters, alkalies and many ketones and alcohols. Ethylene-propylene elastomers have lower densities than all other elastomers and plastics and can accept high loadings of reinforcing agents, fillers and plasticizers, making them an economical choice for a wide range of applications. Ethylene propylene elastomers have use in wide range of industries including: building and construction, automotive, plastic modification, lubricant additive, wire and cables and tyres and tubes among others. Ethylene-propylene elastomers are sold under the brand names Norde, Keltan and Royalene among others.

As per Persistence Market Research, ethylene-propylene elastomers have a large number of uses due to the numerous ways in which the polymers can be designed, for example; it is used in automotive weather-stripping and seals, radiators, glass run channels, garden and appliance hoses, belts, tubing, rubber mechanical goods, roofing membranes, plastic impact modification, thermoplastic vulcanisates and motor oil additive applications. Ethylene-propylene elastomers are used as an insulator for high-voltage cables since they have superior insulative characteristics over more traditional cables, such as cross-linked polyethylene, enabling a smaller cross sectional area for the same load carrying capacity. The cable is well suited to applications where regular cable movement is required such as in the mining industry. Polymerization and catalyst technologies in use today provide the ability to design ethylene-propylene elastomers to meet specific and demanding application and processing needs.

Ethylene-propylene elastomers market is being driven by growth in end-user industries. The ethylene-propylene elastomer market is highly dependent on both the building construction sector and the automotive sector. Consumption of ethylene-propylene elastomers in automotive applications is the major use for ethylene-propylene elastomers, accounting for majority of global demand. Ethylene-propylene elastomers are used for body and chassis parts, door and window weather-stripping, radiator and heater hoses. Hence, growth in the consumption of ethylene-propylene elastomers depends heavily on the growth of the automotive industry as a whole. In addition, growth in plastic modification market will be a major driving factor for the growth of ethylene-propylene elastomers market.

Furthermore, the exceptional characteristics and superior performance of ethylene-propylene elastomers will boost the demand for ethylene-propylene elastomers. Emerging markets also have great influence on the rise in demand and production of ethylene-propylene elastomers available on the market. However, increase in the production cost of ethylene-propylene elastomers and rising awareness of health hazards associated with ethylene-propylene elastomers could hamper the growth of this market.

Along with the developed economies like North America and Europe, emerging markets are recording rapid growth in terms of demand and applications for ethylene-propylene elastomers. Asia Pacific is one of the fastest growing markets for ethylene-propylene elastomers due to high growth in end-user industries such as automotive, lubricant additive, wire and cables.

As MRC reported earlier, the 2015 Analysis of the Global Elastomers Market from Frost & Sullivan finds that the total market was worth USD 21.52 billion in 2014 and is expected to grow to USD 34.73 billion in 2021. Compared to synthetic elastomers (SE), the thermoplastic elastomers (TPE) segment is expected to grow faster.
MRC

MOSCOW (MRC) -- Braskem, the largest thermoplastics resins producer in the Americas, has announced the startup of its new UTEC Ultra High Molecular Weight Polyethylene (UHMWPE) production plant at its La Porte, Texas site, reported Hydrocarbonprocessing.

Braskem sells high-performance UHMWPE under the trade name UTEC, developed and produced through Braskem's proprietary technologies.

"This is an exciting day for Braskem America and our colleagues worldwide," said Christopher Gee, Braskem Global Business Director for UTEC. "Our team has worked diligently over the last two years on the construction, commissioning and startup of this state-of-the-art US based UHMWPE UTEC production plant. Braskem has now significantly strengthened its global position as one of the largest producers of UHMWPE, developing and producing advanced UTEC engineered polymer applications that meet the needs of our clients and their end -market customers. We are looking forward to continuing to grow and advance Braskem's UHMWPE business worldwide."

UTEC is an engineered polymer with mechanical properties, such as high abrasion resistance, impact strength and low coefficient of friction. It is a self-lubricating, high-strength, lightweight machinable product used for semi-finished goods. UTEC is eight times lighter than steel and lasts ten times longer than High-Density Polyethylene (HDPE). The product is utilized in an array of applications in the following industries: automotive and transportation, electronics, fibers and textiles, industrial and heavy equipment, material handling, oil and gas, pipe and mining, porous plastics, and recreation and consumer.

As MRC wrote before, Braskem SA will soon decide whether to build a plant in Texas or Pennsylvania to convert low-cost natural gas into polypropylene. The factory would produce at least 1 billion pounds (450,000 metric tons) of resin a year and would be the U.S. polypropylene industry’s first world-scale project in about 12 years, said Mark Nikolich, a vice president at Braskem in 2015. Preliminary engineering is under way for construction at existing Braskem sites in either La Porte, Texas, or Marcus Hook, Pennsylvania.

Braskem S.A. produces petrochemicals and generates electricity. The Company produces ethylene, propylene, benzene, toluene, xylenes, butadiene, butene, isoprene, dicyclopentediene, MTBE, caprolactam, ammonium sulfate, cyclohexene, polyethylene theraphtalat, polyethylene, and polyvinyl chloride (PVC).
MRC

MOSCOW (MRC) -- PT Polytama Propindo is in plans to take a polypropylene (PP) unit off-stream for a maintenance turnaround, reported Apic-online.

A Polymerupdate source in Indonesia informed that the unit is expected to be taken off-line in end-January 2017. The planned maintenance is expected to remain in force until mid-February 2017.

Located in Balongan, Indonesia, the unit has a production capacity of 180,000 mt/year.

We remind that, as MRC informed earlier, in 2010, Chandra Asri, Dow Chemicals, Pertamina, Polytama and Try Polyta invested a total of USD1.12 bln in Indonesia as per an association of olefin and plastic industries. The projects planned by the five Indonesian petrochemical companies were expected to reduce a deficit in the supplies of petrochemical products.

PT Polytama Propindo was established in 1993 as a signifcant manufacturer of polypropylene resin (PP resin) in Indonesia. Polytama is taking a leading role in Indonesia's fast growing economy by utilizing the country wealth i.e. the secondary processing yield of oil and natural gas , through industrial manufacturing. The factory located in Balongan, Juntinyuat district, Indramayu-West Java, using one of the best technology in the world, the Spheripol technology of Montell (now LyondellBasell), with an installed capacity of 100,000 metric tons per year.

Two years later the construction of the factory was completed on July 27, 1995 and PT Polytama Propindo started the production (the product trade name: Masplene), the supply of raw material propylene with high purity from PERTAMINA refinery UP-VI (now RU-VI ) Balongan. In 1996, and the plant capacity grown to 180,000 tons per year. Response to the addition of propylene production capacity of PERTAMINA RU-VI in 2004, PT Polytama Propindo increased its capacity to 200,000 tons per year.
MRC

MOSCOW (MRC) -- NOVA Chemicals Corporation, a leading supplier of polyethylene in the Americas, has announced the start up of its new world-scale linear low density polyethylene (LLDPE) gas phase reactor at its Joffre, Alberta site, as per the company's press release.

The new reactor started up in December 2016, and the company is now shipping butene LLDPE produced on the asset to its customers. This is the first new LLDPE reactor in the Americas in over a decade. The new capacity allows NOVA Chemicals to meet the growing demand for flexible films used in food packaging, heavy-duty sack and can liners.

"The new supply of LLDPE from our PE1 Expansion Project will enhance NOVA Chemicals’ position as a leading polyethylene supplier in the Americas, helping our customers grow and succeed in their businesses," said Senior Vice President, Polyethylene Business Chris Bezaire.

The addition of this reactor increases NOVA Chemicals’ LLDPE production capacity by close to one billion pounds, giving the company total polyethylene production capacity of approximately 5 billion pounds. NOVA Chemicals’ butene LLDPE is already known in the industry for a range of benefits including excellent balance of physical properties, product uniformity and consistency, and best-in-class gel performance.

As MRC informed previously, in early 2013 NOVA Chemicals decided build two polyethylene (PE) plants and expand its ethylene capacity. NOVA has taken several actions to secure additional ethane feedstock supply for its crackers in Corunna, Ontario, and Joffre, Alberta.

Nova Chemical is one of the largest world's petrochemical companies, a manufacturer of polyethylene, styrene polymers, monomers, and many other related products.
MRC