Europe probes dumping allegations

(ICIS) -- Allegations that US producers of vinyl acetate monomer (VAM) are dumping below-cost material in Europe drew denials on Wednesday from market sourcess.

Celanese, one of the world's largest VAM producers, issued a statement denying any knowledge of dumping in Europe. Other US VAM producers - LyondellBasell, Dow Chemical and DuPont - did not return calls immediately for comment.

US VAM exports declined 8% through October this year, according to trade data compiled by the US International Trade Commission (ITC). But shipments to Belgium - the single largest destination for US VAM exports - increased almost 31% in the same period.

The European Commission did not name any US producers in inquiry notes filed earlier this month stating that it would investigate whether US producers were selling material in the 27-nation bloc below cost.

The complaint was filed by INEOS Oxide, a large European VAM producer, in late October. INEOS is one of the largest VAM producers in Europe, with more than 25% of the market, according to the EU.

MRC

(ICIS) -- South Korea exported strong volumes of naphtha and ethylene (C2) in November, with the bulk shipped to the Chinese market, based on industry data released on Thursday.

Naphtha exports totalled 429,699 tonnes last month, up 39.4% year on year growth, while ethylene shipments grew 12.7% to 52,474 tonnes, according to Korea International Trade Association (KITA) statistics.

China took in 42% of South Korea's naphtha exports and 75% of the ethylene shipments. For aromatics, exports of benzene surged 31.8% year on year to 101,454 tonnes, based on the data.

Volumes of styrene and paraxylene shipments in November were also stronger compared with year-ago levels at 122,749 tonnes and 108,418 tonnes, respectively, according to KITA.

Exports of linear low density polyethylene (LLDPE) defied the declines in shipments of most polymer products during the month, registering a 24.4% growth to 47,217 tonnes, according to KITA.

MRC

(ICIS) -- Firm feedstock costs and a strong US dollar has pushed the European propylene (C3) January monthly contract price (MCP) up 11.5% to a record high, while the ethylene (C2) contract price is the highest seen since the fourth quarter of 2008, market sources said on Friday.

Propylene settled at ┬1,070/tonne ($1,408/tonne), up by ┬110/tonne from December. The previous high was when the contract settled for the third quarter 2008 at ┬1,015/tonne, although in May and June of this year contract prices hit ┬1,000/tonne.

Ethylene was up by ┬105/tonne to ┬1,110/tonne for January, still some way below the record high of ┬1,228/tonne confirmed for the third quarter 2008.

The contracts, which settle on a free delivered (FD) northwest (NWE) basis, were first agreed late on 22 December by a major producer and a major integrated consumer. Remaining contract buyers and sellers were quick to follow.

Olefins producers were able to secure three-digit increases on both C2 and C3 because of negative pressure on cracker margins and a tighter-than-expected supply and demand balance.

MRC

MOSCOW (MRC) -- European producers warn about considerable growth of PE prices for January. Depending on PE grades the prices will grow by EUR 50 - 110/t, according to MRC analysts.

The growth of ethylene and PE prices in Europe is stipulated by growing prices for oil. If during 2010 contract prices for ethylene grew by EUR 135/t, then in 2011 a more considerable growth of prices is forecasted. Only in January contract prices for ethylene may grow by EUR 70-100/t.

Main driver of LDPE price rise in Europe this year has been the deficit of the product, as a result the prices have grown by EUR 320-360/t during the year. In 2011 the deficit is expected to strengthen. Along with scheduled growth of contract prices for ethylene, some European producers announced the growth of LDPE prices for January by EUR 50-80/t.

Oversupply of HDPE in the European market during the year limited the prices rise. In fact by the end of the year spread between contract price for ethylene and price for HDPE didn't cover the expenses for the production. To compensate the growing price for ethylene and expenses for HDPE production, the European producers announced considerable growth of prices for January - EUR 70-110/t.

For more detailed PE prices analytics see MRC Price Reports.

MRC

(Plastics Today) -- Plastics, additives and chemicals suppliers BASF plans to increase its prices for its additives and pigments sold into the plastics industry. The cost hikes are global in effect and will be "a minimum of 7-25%,", reports the company.

Actual price hikes will vary by product and take effect today (Dec. 22) or as contracts allow. BASF (Ludwigshafen, Germany) says the increases will help it to secure future product availability, supply reliability, continuity in quality, service and innovation. In a release the company wrote, "BASF is committed to the plastic additives business, but current profitability levels are not sufficient to ensure BASF's ability to invest and further support our customers' growth, also due to increasing raw material prices."

MRC