Index of chemical production in Russia grew by 6.9% in January - April 2017

MOSCOW (MRC) -- Russia's output of chemical products increased by 6.9% in the first four months of the year, as per Rosstat's data.

The largest increase in output occurred for the benzene and caustic soda, as per the Federal State Statistics Service. According to the Federal Service of State Statistics, last month's production of basic chemicals grew by 5.2% from April 2016. Total production of key chemicals in the country grew by 6.9% in the stated period. Benzene and caustic soda accounted for the greatest increase in the output.

April production of ethylene was 234,000 tonnes compared with 268,000 tonnes in March on the back of scheduled maintenance works at Kazanorgsintez and Stavrolen. Overall, over 1.0 m tonnes of this olefin were manufactured in the first four month of 2017, up by 8.4% year on year.

Last month's production of benzene dropped to 105,000 tonnes from 131,000 tonnes in March on the back of shutdown at two productions. Overall output of this product exceeded 483,000 tonnes over the stated period, up by 12.5%year on year. The increase in production was ensured by Angarsk Polymer Plant.

April production of xylenes was 43,600 tonnes, compared to 45,400 tonnes a month earlier. January-April output of xylenes was 190,200 tonnes, down by 4.6% year on year.

April production of sodium hydroxide (caustic soda) was 98,900 tonnes (100% of the basic substance), down 11.4% year on year. Overall output of caustic soda grew to 406,800 tonnes in January-March 2017, up by 9.6% year on year. In February 2016, due to force majeure for ethylene supply, SayanskKhimplast was forced to shut down its caustic soda production, the outage continued until July.

April production of mineral fertilizers was 1.757 mln tonnes (in terms of 100% nutrients), down 4.9% from the March level. Russian plants produced over 7.125 mln tonnes of fertilizers in the first four months of 2017, up by 7.4% year on year.

Production of all types of fertilizers increased, with potash fertilizers, the output of which grew by 14%, accounted for the greatest increase.
MRC

PVC imports to Ukraine fell by 30% in the first four months of 2017

MOSCOW (MRC) -- Imports of suspension polyvinyl chloride (SPVC) into Ukraine decreased in the first four months of 2017 by 30% year on year, totalling about 28,000 tonnes, according to MRC's DataScope report.


Last month's SPVC imports to Ukraine grew to 7,100 tonnes from 6,700 tonnes in March. Local companies partially offset a shortage of resin from European producers by higher shipments from the US. Overall SPVC imports were about 28,000 tonnes in January-April 2017, compared to 39,900 tonnes a year earlier. High imports at the beginning of last year was due to low export prices in the US, whereas, this year there are export restrictions in all foreign markets, especially in Europe.

The structure of PVC imports into Ukraine by countries looked the following way over the stated period.


Last month's SPVC imports from the United States rose to 3,000 tonnes from 800 tonnes in March, local companies were forced to increase their purchasing of North American resin because of restrictions of European producers. Imports of North American resin totalled 6,800 tonnes in the first four months of 2017 versus 25,500 tonnes a year earlier. At the end of last year, many Ukrainian companies did not form additional stocks of material because of high export prices compared to European prices.

April imports of European PVC into the Ukrainian market dropped to 3,100 tonnes from 3,700 tonnes a month earlier. Shipments of resin from Hungary and Poland slumped. Overall imports of European PVC to Ukraine totalled 15,400 tonnes in the first four months of the year, compared to 11,000 tonnes a year earlier.

Last month's imports of Russian SPVC fell to 761 tonnes from 2,300 tonnes in March. Lower shipments were caused by the ban on imports of material of two producers: RusVinyl and Kaustik (Volgograd). Shipments of Russian resin were 5,800 tonnes in the first four months of 2017, compared to 3,100 tonnes a year earlier.

MRC

PVC imports in Belarus rose by one third in Q1

MOSCOW (MRC) -- Imports of unmixed polyvinyl chloride (PVC) into Belarus increased by 33% in the first three months of 2017 year on year, slightly exceeding 6,000 tonnes, according to MRC's DataScope report.

According to the Statistics Committee of Belarus, local converter seasonally increased their PVC purchasing in March, in particular PVC purchases from Europe increased several times.
March imports of SPVC into the country grew to 2,500 tonnes from 2,100 tonnes a month earlier. Therefore, January-March imports of resin rose to 6,000 tonnes from 4,500 tonnes in January-March 2016.

Russian producers were the key suppliers of resin to Belarus. They accounted for about 68% of the local market over the stated period.

Producers from Germany and Poland with the share of about 24% each were the second and third largest suppliers.
MRC

Clariant to invest in new additive facilities in China

MOSCOW (MRC) -- Clariant, a world leader in specialty chemicals, underscores its commitment to Asia with a multi-million CHF investment by its Additives business to ensure local manufacturing in China of customized, high-end solutions for the Plastics, Coatings & Inks industries, as per the company's press release.

"This investment is another proof point of our commitment to strengthen Clariant’s position in China, where the future of our company is going to be decided. Local production in China puts us in a better position to benefit from the growth perspectives of the Asia region, and especially of China. Being closer to our customers enables us to better cooperate and tailor our solutions to their needs as well as gain valuable market insights,” said Christian Kohlpaintner, Clariant's Executive Committee Member.

With this investment, Business Unit (BU) Additives adds its first two fully-owned production facilities to the company’s long-standing regional network of commercial and technical support. This provides BU Additives increased ability to respond to the strongly growing demand for innovative and sustainable solutions in Asia. For example, the water-based coatings market in Asia Pacific region is estimated to grow from USD15bn in 2015 to USD19bn by 20201.

The expansion of its manufacturing footprint will also enable Clariant to shorten supply lead times and deliver customized high-tech solutions more rapidly in this region. The new facilities at Clariant’s well-established site in Zhenjiang, China, are expected to come on stream in 2018.

The two production units will focus on offering performance additive solutions for packaging, agro-films, automotive and other applications, and micronized waxes for various coatings & inks applications. These innovative and sustainable solutions can improve end product properties, extend energy conservation or have higher recyclability. They will fill unmet needs of new products with stronger sustainable characteristics and improved performance for customers in Asia, especially in China. According to China’s 13th Five Year Plan and the industrial policy ‘Made in China 2025’, the demand for environmentally-compatible and safe products is highly emphasized.

Stephan Lynen, Head of Clariant BU Additives, comments: "Clariant’s BU Additives faces strong demand from its customers in China and across Asia for sustainable value enhancement in the Plastics, Coatings & Inks industries. With our new local manufacturing facilities we improve the proximity to our customer needs, accelerate our response time and enlarge our offering for high-end solutions. Bringing these technologies to the growth markets in Asia is the logical next step."

As MRC informed before, Clariant plans to invest approximately CHF 10 mln - a global initiative to expand its ability to produce color and additive masterbatches and compounds using engineering polymers and high-temperature plastics like PEEK (polyether ether ketone) is progressing on schedule.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints.
MRC

Solvay records Q1 growth in all segments


MOSCOW (MRC) -- Solvay Q1 net sales totaled EUR 2.97 billion (USD3.25 billion), up 9.7 pct, with a 7.5 pct increase in volume & mix supported by positive currency effects, said the company on its website.

Q1 underlying net sales EUR 2.97 billion versus EUR 2.86 billion in Reuters poll.

Q1 underlying EBITDA EUR 616 million versus EUR 578 million in Reuters poll.

Q1 profit attributable to Solvay share on IFRS basis was EUR 235 million. On underlying basis it was EUR 256 million, 33 pct up versus EUR 192 million in 2016.

In 2017 expects to meet or exceed its previously given guidance of mid-single digit underlying EBITDA growth and more than EUR 800 million of free cash flow from continuing operations.

"Our results reflect a strong start to the year, with all operating segments delivering volume growth in the first quarter," Solvay CEO Jean-Pierre Clamadieu said.

"Based on the strong start to 2017 and improving market conditions, Solvay expects to meet or exceed its previously given guidance of mid-single digit underlying EBITDA growth and more than EUR800m of free cash flow from continuing operations," the company said.

Solvay engages in the chemical businesses worldwide. The company offers advanced formulations, such as surfactants, amines, polymers, and phosphorous derivatives; specialty mining reagent solutions, phosphine-based chemistry solutions, and solutions for stabilization of polymers.
MRC