Trinseo raises prices for Latex Binders in EMEA

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex binders and synthetic rubber, and its affiliate companies in Europe announced, effective as of 20 January 2017 or as contract terms permit, the price increase for all Styrene Butadiene latex products sold into the Paper, Board, Carpet and Textile, and Adhesive and Construction Binder markets in the EMEA region, said the producer on its site.

The increase will be EUR50 per wet metric ton for all Styrene Butadiene latex products.

Besides, Trinseo announced that effective February 1, 2017 or as contract terms permit, the company is increasing the prices of all Styrene Butadiene latex and Styrene Acrylic latex products sold into the carpet, paper, and performance latex markets in North America. The increase will be USD0.05/wet lb. This price increase is being driven by increased costs in the manufacturing of these latexes.

As MRC informed earlier, Trinseo and its affiliate companies in Europe also announced price increases for all polystyrene (PS), acrylonitrile-butadiene-styrene (ABS), acrylonitrile styrene copolymer (SAN) grades and polycarbonate (PC) grades in Europe this month. Effective 4 January 2017, or as existing contract terms allow, the January contract and spot prices for the product listed below rose, as follows:

- STYRON general purpose polystyrene grades (GPPS), STYRON and STYRON A-TECH high impact polystyrene grades (HIPS) - by EUR110 per metric ton;
- MAGNUM ABS resins - by EUR105 per metric ton;
- TYRIL SAN resins - by EUR90 per metric ton;
- CALIBRE PC resins - by EUR220 per metric ton.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD4.0 billion in revenue in 2015, with 18 manufacturing sites around the world, and more than 2,200 employees.
MRC

MOSCOW (MRC) -- PPG announced that it has acquired certain assets of automotive refinish coatings company Futian Xinshi (Futian), said the producer on its site.

Financial terms were not disclosed.

With approximate sales of USD15 million in 2016, Futian is a privately owned company based in the Guangdong province of China. Futian distributes its products in China through a network of more than 200 distributors. PPG will acquire Futian’s trademarks, product technology and customer list.

"The acquisition of Futian will further enhance PPG’s position in the growing Chinese automotive refinish coatings market,” said John Outcalt, PPG vice president, global automotive refinish. “Futian has a proven track record of growth and profitability by leveraging well-positioned brands, mature technology, low-cost operations and a solid-performing distribution base."

As MRC informed earlier, in November 2016, PPG reached an agreement with the Emerging Europe Accession Fund (EEAF) to acquire DEUTEK S.A., a leading Romanian paint and architectural coatings manufacturer.

PPG Industries, Inc. (PPG) is a global supplier of protective and decorative coatings. Performance Coatings, Industrial Coatings and Architectural Coatings- EMEA segments supply protective and decorative finishes for customers in a range of end use markets, including industrial equipment, appliances and packaging; factory-finished aluminum extrusions and steel and aluminum. Founded in 1883, PPG has global headquarters in Pittsburgh and operates in nearly 70 countries around the world. Reported net sales in 2014 were USD15.4 billion.
MRC

According to the Statistics Committee of Belarus, local converters further reduced their purchases of PVC in November. Imports of resin fell to 1,600 tonnes from 2,300 tonnes in October. Local producers of profiled-moulded products (PMP) accounted for the main reduction in purchasing.

Overall demand for PVC from local converters decreased to 22,500 tonnes in January-November 2016 from 24,000 tonnes a year earlier. Lower export sales of finished products, particularly, of the profile-moulded products, remained the main reason for such a major fall in processing volumes. Their exports fell almost by 20% year on year in the first eleven months of 2016 to 12,700 tonnes.

Russian producers were the key suppliers of resin to Belarus. They accounted for about 60% of the local market over the stated period.

MRC

MOSCOW (MRC) - Production of high density polyethylene (HDPE) in Russia increased by 11% in 2016 year on year and slightly exceeded 1 mln tonnes. Stavrolen and Gazprom neftekhim Salavat increased their output most significantly, according to MRC's ScanPlast report.

December HDPE production in Russia grew to 94,700 tonnes, whereas this figure was about 76,600 tonnes a month earlier. Weak output in November was a result of linear low density polyethylene (LLDPE) production at Nizhnekamskneftekhim. Russia's overall HDPE production exceeded 1 mln tonnes in January-December 2016, compared to 904,000 tonnes a year earlier. Stavrolen and Gazprom neftekhim Salavat raised their capacity utilisation significantly, whereas Nizhnekamskneftekhim, on the contrary, reduced its HDPE output in favour of LLDPE.

Structure of PE production over the reported period looked as follows.

Kazanorgsintez increased HDPE production in December to 46,300 tonnes compared with 43,400 tonnes in November. Overall, the Kazan manufacturer produced 486,200 tonnes of HDPE in 2016, up by 4% year on year.

Stavrolen's December HDPE production decreased to 22,300 tonnes from 24,200 tonnes a month earlier. The plant's lower HDPE output was caused by a short shutdown last month. Stavrolen produced 271,200 tonnes of HDPE in January-December 2016, whereas this figure was 189,500 tonnes a year earlier (the plant was shut from late February 2014 to April 2015 because of the accident at the producer's ethylene unit).

Nizhnekamskneftekhim switched to HDPE production only in late November, whereas the plant manufactured linear low density polyethylene (LLDPE) since October. The producer's HDPE production reached 17,700 tonnes in December. Thus, the Nizhnekamsk plant produced over 135,600 tonnes of HDPE in January-December 2016, down by 12% year on year. Higher LLDPE's share in the total PE production was the main reason for the lower output.

Gazprom neftekhim Salavat (Gazprom) produced about 8,400 tonnes of HDPE in December, compared with 8,900 tonnes in November. The Salavat manufacturer produced over 108,500 tonnes in 2016, whereas this figure was about 93,900 tonnes a year earlier. The low 2015 output was caused by the plant's long outage for maintenance in July-August, whereas shutdowns were shorter last year.


MRC

MOSCOW (MRC) -- The town council of Potter, Pennsylvania unanimously approved a conditional use permit late Wednesday allowing a unit of Royal Dutch Shell PLC to move forward with construction of a multibillion-dollar petrochemical complex near Pittsburgh, said Reuters.

Last June, Shell's Shell Chemical Appalachia LLC unit made a final investment decision to build the complex, which includes an ethylene cracker.

Ray Fisher, a spokesman at Shell, said on Thursday the company has not disclosed the cost of the project. Local media has reported the project will cost about USD6 billion.

The facility will use low-cost ethane from shale gas producers in the Marcellus and Utica basins in Pennsylvania, Ohio and West Virginia to produce 1.6 MMt of polyethylene per year.

"We greatly appreciate the Supervisors' due diligence and their careful consideration throughout the process ... and ... look forward to fulfilling our goal of constructing a world-class polyethylene manufacturing facility in Potter Township," Shell said in a statement emailed.

Polyethylene is a plastic used in many products, from food packaging and containers to automotive components. Ethane, a natural gas liquid, is the US chemical industry's main feedstock.

Fisher at Shell said the company was still waiting for a permit from the state of Pennsylvania and was continuing its early work to get the site ready for construction. The company expects to be able to start construction sometime near the end of 2017, with a target in-service date early in the next decade.

"Thanks to abundant supplies of natural gas, the US chemical industry is investing in new facilities and expanded production capacity, which tends to attract downstream industries that rely on petrochemical products," Cal Dooley, President and Chief Executive of the American Chemistry Council (ACC), said in a statement on Thursday.

"Shell's pioneering project -- the first of its kind outside the Gulf Coast -- could be the cornerstone for regional economic growth for decades to come," Dooley said. The project will bring lots of jobs to the region, with up to 6,000 construction workers involved in building the facility, and an expected 600 permanent employees when completed.

A cracker plant breaks down large molecules from oil and gas into smaller ones. An ethylene cracker produces base petrochemical "building blocks" which are the first stage in the chemicals manufacturing chain. Polyethylene is a derivative of ethylene.
MRC