Oil trades near two-year high

(Bloomberg) -- Crude traded little changed within 1 percent of a two-year high as economic growth in the U.S. and colder temperatures in the northern hemisphere whittle down excess fuel stockpiles.


Futures climbed as much as 0.3 percent after government reports yesterday showed U.S. crude supplies fell last week to the lowest in 10 months and gross domestic product expanded 2.6 percent in the third quarter. Oil rose as high as $90.80 yesterday, the strongest since Oct. 8, 2008.


⌠Weather in the U.S. and Europe is supportive, and we had another big inventory drop, said Tobias Merath, head of commodities at Credit Suisse Group in Zurich. ⌠But these are mostly temporary factors, and when these fade I see a risk we'll move to the mid-$80s at the beginning of next year.


Crude for February delivery rose as much as 31 cents to $90.79 a barrel in electronic trading on the New York Mercantile Exchange. It was at $90.46 at 1:29 p.m. London time. Brent crude for February settlement was down 1 cent at $93.64 a barrel, after climbing as much as 0.3 percent to $93.91 on the London-based ICE Futures Europe exchange.


MRC

Tax breaks on oil product, petrochemical imports extended to 2011 by South Korea

(Plastemart) -- In a bid to curb inflation that threatens the country's economic recovery, South Korea's finance ministry plans to extend tax breaks on oil product imports to 2011. This extension of tax breaks is expected to reduce burden on local consumers and control inflation.


Tariff on gasoline, diesel, kerosene and heavy fuel oil imports that were reduced from 5% to 3% in 2010, will remain at 3% next year, while tariffs on LNG and LPG will also stay cut from 3% to 2% for 2011.


Tax on imported polyethylene, which was cut from 8% to 2% in 2010, will remain at 2% in 2011.


MRC

Rhodia acquires polymer business of PI Industries

(Plastemart) -- French Rhodia SA, a ┬4billion (US$5.26 billion) specialty chemicals major, will acquire PI Polymer, the engineering plastics business of PI Industries.


In a statement to BSE, P I Industries said that the transfer includes the transfer of all the assets used and people employed by PI Polymer, research & development capabilities, customer base and logistics network in India.


The transaction is expected to complete by the end of March 2011. The divestment is a part of the P I Industries' strategy to concentrate on its agri-inputs and custom synthesis businesses, the company said.


This strategic sale is part of the corporate restructuring exercise of Standard Chartered Private Equity-backed PI Industries towards consolidating its position in its core activities of agrochem and fine chemical businesses.


Rhodia, which caters to automotive, electronics, flavors & fragrances, health, personal & home care, consumer goods & industrial segments, will get to strengthen its presence in India, with this deal.


PI Industries diversified into polymer compounding business in 1994 and since then has been closely working with OEMs in various industry segments to develop customised engineering plastics compounds for niche and complex applications for automotive, electricals and home appliances industry segments offering an unrivalled product mix of bespoke polymer compounds.


MRC

DuPont to pay US$3.3 mln penalty to resolve Toxic Substances Control Act violations

(Plastemart) -- The US Environmental Protection Agency (EPA) has announced that DuPont has agreed to pay a penalty of $3.3 mln to resolve 57 Toxic Substances Control Act (TSCA) violations. DuPont failed to immediately notify EPA of research indicating substantial risk found during testing chemicals for possible use as surface protection, masonry protection, water repellants, sealants and paints.


The Toxic Substances Control Act requires companies to inform EPA when they have research demonstrating that a chemical could pose a substantial risk to human health and the environment.


Full compliance with TSCA reporting requirements allows EPA to understand and limit, when necessary, potential hazards associated with manufacturing, use, and disposal of chemical substances.


MRC

PTT Aromatics and Refining expects higher earnings in 2011

(Plastemart) -- Thailand's largest integrated aromatics refinery - PTT Aromatics and Refining Pcl expects higher oil prices and rising paraxylene spreads to push up earnings in 2011, as per Reuters. Paraxylene spreads should be more than US$400/ton in 2011 on increased demand. Q4-10 net profits are expected to be good on likely gains from the company's oil inventory as oil prices continue to rise.


Thanks to higher margins and foreign exchange gains, PTTAR returned to a net profit of 695 million baht in Q3 after a net loss in the quarter ended June- its first loss in five quarters on account of lower petrochemical product margins and crude inventory losses.


The company, 48.6% owned by top Thai energy firm PTT Pcl has refining capacity of 280,000 bpd and annual capacity to produce 2.26 mln tons of aromatics products.


MRC