PE prices up by EUR 110 in Europe

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

(ICIS) -- East China-based styrene monomer (SM) producers will be competing for cargoes in the spot and contract markets more significantly next year, industry sources said on Wednesday.

Shanghai SECCO Petrochemical, Jiangsu Leasty Chemical, Dohow Chemical and Sinopec East China were planning to procure supply from the market, for varied reasons ranging from fulfilling the requirement of downstream plants, to the quest for better margins, company sources said.

Among the four, Shanghai SECCO was facing SM shortage and would need to tap the market for cargoes to continue supplying to contract clients, a company source said.

Equipment problems at its 650,000 tonne/year SM unit in Shanghai would prevent the plant from optimising running rates for the most of next year. The unit was also due for a 40-day turnaround from September-October 2011, with production loss estimated at around 50,000 tonnes, the source added.

MRC

(ICIS) -- Qatar Petroleum and Shell have signed a memorandum of understanding for the joint development of a world-scale mixed feed cracker and petrochemicals complex at Ras Laffan in Qatar, Shell said on Tuesday.

The project would include a monoethylene glycol (MEG) plant with a capacity of up to 1.5m tonnes/year that would use Shell's proprietary OMEGA technology, Shell added.

Also under consideration were other olefin derivative plants that would yield more than 2m tonnes/year of finished products, Shell said.

Qatar Petroleum and Shell are jointly building the Pearl Gas to Liquids (GTL) and Qatargas 4 LNG facilities at Ras Laffan Industrial City in Qatar.

MRC

(PRW) -- Mould maker Ryetools has invested in two new EDM machines to replace older machines at its facility in Pickering, Yorkshire. The two new units are being used to manufacture injection moulds used in the medical devices, health and hygiene, food and drink, packaging and automotive sectors among others.

Ryetools was winner of the Toolmaker Supplier Partnership Award in the 2010 Plastics Industry Awards for its work with its customer Plasticum Norwich.

MRC