PVC-S imports to Russia made about 322 KT

MOSCOW (MRC) -- Import supplies of PVC-S to the Russian market over the eleven months have exceeded pre-crisis 2008 and made about 322 KT, according to MRC analysts.

The Russian PVC market continues to show good growth dynamics. In pre-crisis 2008 total imports of suspension to the Russian market made about 320 KT. Financial crisis resulted in considerable diminution in demand for finished goods from PVC, hereupon resin import in 2009 reduced by the level of 2006.

In 2010 the Russian market of suspension PVC started its dynamical recovery. Demand for PVC in separate consumer's sectors grew by 20-30%. Lack of Russian PVC in terms of dynamical growth of the market was compensated at the expense of imports. Total imports of PVC-S over the eleven months have increased three times compared to 2009 and made about 322 KT.


North American suppliers pressed the position of the Russian market leaders - producers from China. Import supplies of PVC-S from USA increased to 126 KT, supplies of Chinese acetylene resin made 110 KT. Seasonal reduction of demand conditioned serious fall of PVC-S imports in December - over the ten days imports decreased to 6.65 KT.


More detailed analysis of PVC market in Russia see in MRC DataScope.


MRC

Borealis to upgrade its PE2 production in Finland

(Plastics News) -- European polyolefins producer Borealis AG is spending 17 million euros to upgrade its PE2 polyethylene production capacity in Porvoo, Finland.


The upgrade, which was approved by the Borealis board on Dec. 15, includes a new ethylene compressor and an upgrade to the monomer purification line. It is expected to see output from the Porvoo PE2 plant to increase by 15,000 metric tons annually, from the current capacity of 240,000 metric tons per year.


The Porvoo PE2 plant is Borealis's demonstration unit for upscaling of new Borstar PE technologies and for introduction of new PE products.


MRC

Europe C2, C3 Jan CP talks underway, sharp rises expected

(ICIS) -- European ethylene (C2) and propylene (C3) January contracts will rise significantly because of high upstream costs and tight supply and demand fundamentals, market sources said on Friday.


Producers were targeting three-digit increases for both products. The largest adjustments so far in 2010 had been from January to February when the ethylene and propylene contracts increased ┬70/tonne ($92/tonne) and ┬85/tonne respectively.


Cracker margins were under negative pressure from recent and ongoing strength in the crude oil and naphtha markets. A weak euro was exacerbating the impact of higher US-based costs and the result was that the average contract margin for December was the lowest it had been all year.


Cracker margins were ⌠in one word, a disaster, a major producer said. In addition to the cost pressure, supply for both olefins had tightened over recent weeks because of overruns on planned maintenance, slow restarts following the French strikes and reduced operating rates prompted by economics and cold weather.


Some sectors would be able to recover the costs, but for others such as high density polyethylene (HDPE), polyvinyl chloride (PVC) and possibly phenol, a sizeable increase would be of concern and could lead to some cutbacks in monomer consumption, sources said. In general, the view was that propylene derivatives were in a better position to be able to absorb and recover the costs.


MRC

Onex in talks to sell Husky for $2bn

(European Plastics News) -- Major Canadian private equity firm Onex is in talks to sell Husky Injection Molding Systems, according to a report from Bloomberg.com. The story, which cites unnamed "people with direct knowledge of the matter," said Toronto-based Onex is in talks with rival buyout firms, and the price could be as high as $2bn (┬1.5bn), Onex has hired Goldman Sachs Group and JPMorgan Chase & Co. to handle the auction, according to the report.


Onex owns 98% of Ontario-based Husky, which makes injection moulding machines, hot-runner systems and tooling.


Husky was publicly traded for a decade before Onex bought the firm for $1bn in 2007, although Robert and Elizabeth Schad owned or controlled about 44.1% of the shares. Financial analysts have speculated that Onex eventually would cash in on the investment through a sale or an initial public offering.


MRC

Europe MEG producer targets ┬70/tonne increase in January

(ICIS) -- A Europe-based producer of monoethylene glycol (MEG) is targeting an increase of ┬70/tonne ($92/tonne) in the January contract price, up from December's ┬975/tonne, because of rising feedstock costs and tight supply, a source with the producer said on Thursday.


Ethylene needs to jump, and I also see MEG increasing into the mid-┬1,000/tonne, so a further significant increase of ┬70/tonne. Product is tight, the source said.


Upstream ethylene in Europe was finely balanced. Price ideas for January centred on an increase of ┬80-100/tonne, based on firm crude and naphtha values, as well as robust demand. The December ethylene price settled at ┬1,005/tonne FD (free delivered) NWE (northwest Europe).


The MEG market has also been finely balanced. As a net importer, Europe has been reliant on imports during a time of rising prices in other regions.


Customers remained unhappy about the ┬70/tonne hike implemented from November to December, and they were against seeing further increases in January. They cited decreases in the Asian contract price nominations as a reason to curb calls for an increase in Europe.


MRC