Prices of European PE for CIS markets remained steady in August

MOSCOW (MRC) -- The August contract price of ethylene was settled at the level of July in Europe. Because of this European producers of polyethylene (PE) have rolled over the July export prices for supplies in August in the CIS market, ICIS-MRC Price Report reported.

Negotiations over export prices of European PE to be shipped to the CIS markets began back last week. Many negotiators said that in the majority of the producers from Europe had rolled over export prices of polyethylene at the level of July due to the unchanged price of ethylene. Only in some cases there were attempts to achieve an increase in the price of EUR20/tonne.

Deals for the August shipment of high density polyethylene (HDPE) were discussed in the range of EUR930-1,020/tonne FCA, which actually corresponds to the level of the July deals, despite the serious strengthening of the euro against the dollar.

Deals for European black PE 100 were done in the range of EUR1,170-1,200/tonne FCA. Deals for August shipments of low density polyethylene (LDPE) were negotiated in the range of EUR1,080 - 1,150/tonne FCA, which practically corresponds to last month's prices.
MRC

MOSCOW (MRC) -- Saudi Kayan Petrochemical Co. signed an agreement to reschedule a USD1.2 billion (SAR 4.5 billion) loan with the National Commercial Bank (NCB), said Argaam.

The original agreement was signed in August 2010 and had a seven-year duration, meaning that it was scheduled to be paid on August 16, 2017. The amount was used to finance projects costs, Saudi Kayan said in a statement to Tadawul.

The company also obtained a USD150 million (SAR 562.5 million) facility from NCB to finance project expansions that will allow it to increase production of Ethylene and Pure Ethylene Oxide by at least 93,000 tons and 61,000 per year, respectively, as agreed upon with the Saudi Ministry of Energy.

The facility agreement has a five-year duration, after which it should be repaid in full on August 16, 2022.

Both agreements are Islamic Murabaha facilities and guaranteed by Saudi Basic Industries Corporation (SABIC).

Saudi Kayan has a capital of SAR 15 billion and is an affiliate of SABIC. Kayan’s petrochemical complex, which is located in Jubail Industrial City, is one of the largest in the world.
MRC

MOSCOW (MRC) -- Saudi Arabia will cut crude oil allocations to its customers worldwide in September by at least 520,000 bpd, an industry source said on Tuesday, as the top oil exporter makes good on its pledge to help rein in a global supply glut, as per Reuters.

State oil giant Saudi Aramco will cut supplies to most buyers in Asia—the world's biggest oil consuming region—by up to 10% in September to comply with a producers' deal to cut output, multiple sources with knowledge of the matter told Reuters.

The wider Saudi cuts come as some doubts have emerged about the effectiveness of the OPEC-led agreement. OPEC output hit a 2017 high in July, according to a Reuters OPEC survey, led by a rise in supplies from Nigeria and Libya, which are both exempted from the cuts.

The deal to curb output propelled crude prices above USD58/bbl in January but they have since slipped back to a USD45 to USD52 range as the effort to drain global inventories has taken longer than expected. Rising output from US shale producers has offset the impact of the output curbs, as has climbing production from Libya and Nigeria.

Saudi Arabia's crude allocations to oil majors and some customers in Europe will be cut by 220,000 bpd in September, the first source said, while supplies to the United States will be reduced by around 1.1 MMbbl in total for next month.

In August, a Saudi industry source told Reuters that Saudi exports to the United States will be below 800,000 bpd in August, as the kingdom is capping its exports worldwide this month at 6.6 MMbpd.

Under the OPEC-led supply reduction pact Saudi Arabia is required to cut output by 486,000 bpd. Of the nine Asian refineries surveyed by Reuters, supplies to six have been cut for the first time since the Organization of the Petroleum Exporting Countries, Russia and other producers agreed last year to cut production by about 1.8 MMbpd from Jan. 1 until March 2018.

Saudi Arabia and other producers last month recommended examining whether monitoring compliance with the pact should focus on exports as well as production.

High compliance by Gulf producers Saudi Arabia and Kuwait helped keep OPEC's adherence with its supply curbs at historically high figures of more than 90%.
MRC

MOSCOW (MRC) -- Sadara Chemical Co.’s net loss widened in first half of 2017 to SAR 2.99 billion, from a loss of SAR 2.83 billion in the same period last year, due to startup costs and ramping up of the integrated facilities, said Argaam.

The company reported a net loss of SAR 1.59 billion in the second quarter versus a loss of SAR 1.49 billion in the same quarter last year, and a loss of SAR 1.4 billion in Q1 2017.

Loss per share for the six-month periods ended 30 June 2017and 2016 have been computed by dividing net loss for each period by the weighted average number of shares outstanding during such periods. The weighted average number of shares for the six-month periods ended 30 June 2017and 2016 is 2,872,686,464 and 1,785,562,170 respectively.

Gross sales revenue of the current quarter is SR. 1.31 billion compared to SR. 196million for the similar quarter last year with an increase of 570.3%. Gross sales for the current period amounted to SR. 2.17 billion compared to SR. 294 million for the similar period last year with an increase of 637%.

The shareholders equity (excluding minority interests) at the end of the period is SR. 15.84 billion compared to SR. 13.38 billion for the similar period last year with an increase of 18.4%.
MRC

MOSCOW (MRC) -- Netherlands-based distributor of speciality chemicals and ingredients IMCD is set to purchase Canadian and US speciality chemicals and ingredients distributor LV Lomas, said Chemicals-technology.

With offices in Toronto, Montreal, and Vancouver, LV Lomas will enable IMCD to increase its presence in Canada and improve its position in the US.

IMCD CEO Piet van der Slikke said: "This is an important step in the further development of IMCD’s North America region as it not only expands our geographical presence into Canada in all core markets but also further strengthens our US organisation and coverage."

LV Lomas chairman Rand A. Lomas said: "IMCD will enhance our ability to provide our customers with a more extensive speciality product portfolio and will further develop our depth of technical expertise and innovation. My family built LV Lomas over several decades into an organisation driven by teamwork, innovation, and a dedication to excellence in all that we do.

"This is a vision closely shared by IMCD and together we will become a market leader in North America for the sales, marketing and distribution of speciality chemicals and food and pharmaceutical ingredients."

The deal is expected to close at the end of this month. It is subject to customary regulatory review.
MRC