Turkmenbashi GPP sold 33,500 tonnes of PP at Commodity Exchange of Turkmenistan in April

MOSCOW (MRC) -- In the export trades of Turkmenistan's State Commodity and Raw Materials Exchange, large quantities of polypropylene (PP) were sold for the second time in a month. This time, 25,000 tonnes of PP were sold, according to ICIS-MRC Price report.

On 28 April, Turkmenbashi Gas Processing Plant's second large lot of PP was sold in the export trades of the State Commodity and Raw Materials Exchange of Turkmenistan. 25,000 tonnes of polymer to be shipped within 11 months were put up for auction in the trades at the starting price of USD960/tonne FCA/FOB port of Turkmenbashi.

Demand for PP in the stock exchange was weak because of long delivery time. Only 13,500 tones of polymer out of 25,000 tonnes put up for auction were bought out in the trades. Russian companies purchased about 9,000 tonnes.

As reported earlier, on 14 April, Turkmenbashi Gas Processing Plant's 20,000 tonnes of PP were also put up for auction in the export trades of the State Commodity and Raw Materials Exchange of Turkmenistan. The put up for action PP was aimed for shipment within 9 months at the starting price of USD960/tonne FCA/FOB port of Turkmenbashi. All PP quantities were bought out in the trades.

Thus, about 33,500 tonnes of PP were sold in the export trades of Turkmenistan's State Commodity and Raw Materials Exchange at USD960/tonne FCA/FOB port of Turkmenbashi for the whole April.
MRC

PVC imports into Kazakhstan increased by 75% in Q1

MOSCOW (MRC) - Imports of unmixed polyvinyl chloride (PVC) into Kazakhstan slightly exceeded 9,600 tonnes in January-March 2017, up 75% compared with the same time a year earlier, according to MRC analysts.

Local companies significantly increased imports of unmixed PVC in March partially because of the seasonal factor, with imports exceeded 5,000 tonnes compared with 3,200 tonnes a month earlier. All 100% from them accounted for PVC from China. Total PVC imports into Kazakhstan exceeded 9,600 tonnes in Q1, compared with 5,500 tonnes year on year. In part, this increase in purchases was a result of the the resale of PVC in Russia.

The main suppliers of PVC in the local market were producers from China, with their share more than 98% from the total PVC imports into the country. The share of Russian PE did not exceed 2% in the local market.

MRC

PP unit construction completed by 70% in Azerbaijan

MOSCOW (MRC) -- A polypropylene unit of Azerbaijan’s SOCAR Polymer plant for the production of polypropylene (PP) and polyethylene (PE) has been constructed by 70%, SOCAR Polymer financial director Fuad Ahmadov said, reported Trend.

Ahmadov made the remarks during the conference titled "The 2nd SOCAR International Caspian and Central Asia Downstream Forum - Trading, Logistics, Refining, Petrochemicals" in Baku Apr. 27.

He added that a PE unit of the plant has been constructed by 26%.

Ahmadov said that the plant's PP unit will be put into operation in January-March 2018, while the PE unit - in July-September 2018.

He added that 25% of the plant's products will be supplied to the domestic market, while 70% - for export to Turkey, Europe and the CIS countries.

The total cost of the SOCAR Polymer project is USD750 million. The project is being implemented in the Sumgait Chemical Industrial Park.

At the first stage, the production capacity will reach 120,000 tons of PE and 180,000 tons of PP. By 2021, the total capacity can reach 570,000 tons of products.

As MRC wrote previously,SOCAR signed licensing agreements with Technip, Univation Technologies, Axens and Sinopec Tech as part of a project to establish the Gas Processing and Petrochemical Complex (GPC) in Azerbaijan, SOCAR said in a message posted on its website Dec. 20, 2016.

SOCAR, which is keen on expanding operations in the retail oil products market abroad, is involved in exploring oil and gas fields, producing, processing, and transporting oil, gas, and gas condensate, marketing petroleum and petrochemical products in the domestic and international markets, and supplying natural gas to industry and the public in Azerbaijan.

SOCAR Polymer is a subsidiary of the State Oil Company of the Azerbaijan Republic (SOCAR). The entity was formed at the end of 2013 to run investments at the Sumgait Chemical Industrial Park, a production park which intends to become a chemical hub in central Asia.
MRC

Huntsman acquires IFS Chemicals Limited

MOSCOW (MRC) -- Huntsman Corporation has announced that it has completed the acquisition of IFS Chemicals Limited (IFS), one of the UK's leading independent formulators of methylene diphenyl diisocyanate (MDI) based systems, as per SteetInsider.

The purchase price was not disclosed.

Located in Kings Lynn, England, IFS was established more than 35 years ago and its customized MDI systems are used in a diverse range of end markets, including insulation, appliances, automotive and elastomeric applications.

Commenting on the acquisition, Tony Hankins, President of Huntsman's Polyurethanes division, said: "With their highly experienced team and loyal customer base, IFS provides us with excellent access to the UK's growing downstream MDI systems market. It will serve as a strategic platform to expand our business and consolidate our position as a market leader. The acquisition represents the latest step in our plan to strengthen our differentiated downstream capabilities and we now have more than 25 facilities worldwide, reflecting our confidence in the long-term growth prospects for MDI-based urethanes."

Barrie Colvin IFS founder and Managing Director added, "I am delighted that we have reached agreement with Huntsman and look forward – together with the rest of the IFS team - to an exciting future which brings together the best of IFS and Huntsman Polyurethanes, strengthening our ability to meet the growing needs of existing and future customers."

As MRC informed earlier, in late July 2016, Huntsman Corporation (The Woodlands, Texas) announced that the company would include textile effects and the balance of its pigments and additives segment in the spinoff of its titanium dioxide (TiO2) business.

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2013 revenues of over USD11 billion. Huntsman is a global manufacturer and marketer of differentiated chemicals. The company's operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging.
MRC

BP agrees to sale of interest in SECCO to Sinopec

MOSCOW (MRC) -- BP announced that it has agreed to sell its 50% stake in the Shanghai SECCO Petrochemical Company Limited (SECCO) to Gaoqiao Petrochemical Co Ltd, a 100% subsidiary of China Petroleum & Chemical Corporation (Sinopec), BP’s joint venture partner, for a total consideration of USD1.68 bln, as per the company's press release.

"This decision aligns our petrochemicals business in China with our global focus on areas where BP has leading proprietary technologies and competitive advantage. China is a key region for our chemicals business and BP will continue to look for opportunities to build on our position in the country," said Rita Griffin, chief operating officer, BP Global Petrochemicals. SECCO is currently owned by BP (50%), Sinopec (30%) and Sinopec Shanghai Petrochemical Company Limited (20%), in which Sinopec holds a majority interest. Based in Shanghai, SECCO is a major producer of olefins - ethylene and propylene - together with polymers and other derivatives including polyethylene, polypropylene, acrylonitrile styrene, polystyrene, butadiene and other products.

"China is a country of great significance to BP given its market potential," said Dr. Xiaoping Yang, BP China president, "BP has been committed to doing business in China for more than four decades. Looking into the future, we plan to continue to invest in China in areas that provide the best growth opportunities for BP, our Chinese partners and the country." The transaction is subject to a number of regulatory approvals and other conditions, subject to which, it is currently anticipated to complete before the end of the year with the consideration payable in instalments.

As MRC informed before, in 2016, BP PLC sold its petrochemical complex in Decatur, Alabama, to Indorama Ventures Public Co. Ltd. (IVL.TH), for an undisclosed sum, as part BP's plan to restructure its global petrochemicals business. The divestment is in line with BP’s global petrochemicals strategy of pursuing a competitively advantaged portfolio through world-scale, low-cost facilities that utilize BP proprietary technology, including the production of purified terephthalic acid, or PTA, a key raw material in the production of polyester.

BP is a leading producer of oil and gas and produces enough energy annually to light nearly the entire country for a year. Employing about 17,000 people across the country, BP supports more than 170,000 additional jobs through all of its business activities.
MRC