Uptrend of HDPE prices in Russia slowed down in September

MOSCOW (MRC) - September shutdown of the two largest producers of high density polyethylene (HDPE) did not lead to another wave of price rise in the Russian market. On the contrary, prices of some HDPE grades remained without significant changes in comparison with August, according to the ICIS-MRC Price Report.

HDPE prices have begun to rise in Russia since August on the seasonal strong demand and turnaround at Gazprom neftekhim Salavat and Nizhnekamskneftekhim. PE prices continued to rise in September on the back of the shutdowns of the two largest producers. Stavrolen and Kazanorgsintez, but the price increase mostly affected film and pipe polyethylene, while changes in other segments were insignificant.

Gazprom neftekhim Salavat was shut much more longer than it was initially planned. The shutdown started from 1 July and aimed to be finished before the beginning of August, but, due to problems in the production of ethylene, the restart of HDPE production was only on 27 August.

The long shutdown of Gazprom neftekhim Salavat resulted in a shortage of natural pipe PE100 in the market, as the company is a key supplier of this PE grade. Despite the stable operation of Gazprom Neftekhim Salavat in September, the lack of supply of natural PE100 in the first month of autumn continued to be felt in the Russian market.

The deferred demand in August and the absence of a similar polyethylene offer by Nizhnekamskneftekhim have kept a small deficit on the market. Prices fro natural PE 100 in the late September increased to Rb98,000-100,000/tonne FCA, including VAT.

Prices for film HDPE have grown dynamically since August, with prices for some items exceeded the level of Rb100,000/tonne FCA, including VAT. The growth dynamics of film HDPE prices slowed in September, and by the end of the month the maximum price reached the level of Rb108,000/tonne FCA, including VAT.

Part of the situation in the film polyethylene market was saved by a serious increase in the volume of imports from Uzbekistan and Ukraine, and shutdown of Stavrolen and Kazanorgsintez did not affect prices significantly.

The markets of injection moulding and blow moulding HDPE reacted relatively calmly to the September shutdowns of the two plants. Sufficient stocks of both producers and traders helped to keep prices from sharp growth.
MRC

MOSCOW (MRC) -- Covestro (part of Bayer) has recently celebrated the ten-year anniversary of the establishment of its thermoplastic polyurethane production site in Changhua, Taiwan, according to GV.

According to Covestro, Changhua is the largest site within its TPU production network and also houses the Asia Pacific TPU R+D center.

Over the past decade, the Changhua site has benefited its stakeholders in Taiwan and other countries in Asia Pacific by providing full-service solutions based on combining sustainable production and innovative solutions development, said Covestro.

Over the years, the site has expanded its product portfolio in line with the needs of the markets and industries served, including, e.g., footwear, textiles, wearable devices, soccer balls, mobile phones, and automobiles.

As MRC reported previously, in September 2017, German drugs and pesticides group Bayer further reduced its holding in Covestro to 31.5% from 40.9% by selling 19 million shares in the plastics business for a total of EUR1.2 billion (USD1.4 billion).

Earlier, on 1 September 2015, Bayer MaterialScience became known as Covestro. The plans for the carve-out of Bayer MaterialScience were announced in September 2014.

Covestro (formerly Bayer MaterialScience) is an independent subgroup within Bayer. It was created as part of the restructuring of Bayer AG from the former business group Bayer Polymers, with certain of its activities being spun off to Lanxess AG. Covestro manufactures and develops materials such as coatings, adhesives and sealants, polycarbonates (CDs, DVDs), polyurethanes (automotive seating, insulation for refrigerating appliances) etc.
MRC

MOSCOW (MRC) -- Honeywell announced that Vitens, the largest water utility in the Netherlands, has selected Honeywell to supply up to 600,000 V200P water meters over the next five years, said the company on its website.

The V200P is a polymer-bodied volumetric meter that delivers high accuracy over an extended lifetime and flow range. The V200P meter incorporates the patented eSens high-integrity smart meter interface, which seamlessly connects to a comprehensive range of data communication options. These innovations add significant value for utility customers by improving revenue generation, enhancing customer service, empowering consumers and supporting effective water resource management.

Vitens is the largest water supplier in the Netherlands, serving approximately 5.6 million people and companies in the provinces of Flevoland, Friesland, Gelderland, Utrecht and Overijssel. Vitens delivers 350 million cubic metres of water annually.

Honeywell Home and Building Technologies (HBT) is a global business with more than 44,000 employees worldwide. HBT creates products, software and technologies found in more than 150 million homes and 10 million buildings worldwide. We help homeowners stay connected and in control of their comfort, security and energy use. Commercial building owners and occupants use our technologies to ensure their facilities are safe, energy efficient, sustainable and productive. Our advanced metering hardware and software solutions help electricity, gas and water providers supply customers and communities more efficiently.

Honeywell is a Fortune 100 software-industrial company that delivers industry specific solutions that include aerospace and automotive products and services; control technologies for buildings, homes, and industry; and performance materials globally. Our technologies help everything from aircraft, cars, homes and buildings, manufacturing plants, supply chains, and workers become more connected to make our world smarter, safer, and more sustainable.
MRC

MOSCOW (MRC) — Noble Group Ltd (NGL) expects to sell its oil liquids business by the end of December as part of a plan to slim down drastically and focus on its core Asian coal trading business after a crisis-wracked 2 yr, said Reuters.

"NGL continues to progress the sale of its Global Oil Liquids business. NGL currently expects the sale of the Global Oil Liquids business to complete by Dec. 31," the Singapore-listed company said in a statement on Monday.

In September, Chairman Paul Brough told shareholders that the company had received second round bids for the business and expected to announce a deal before the end of the month.

The company did not give any reason for the delay in the sale.

Once Asia's biggest commodities trading house, Hong Kong-based NGL is slashing jobs and selling assets to shrink debt.

NGL flagged the sale of the capital intensive oil liquids business in July after agreeing to sell its North American gas and power business to rival Mercuria Group. On Monday, it said it had completed the sale of the gas and power business.

Reuters had reported that Mercuria Group, Vitol Group, US-based Castleton Commodities International and Freepoint Commodities were among the interested parties for Noble's oil business.

NGL previously said North American lenders to the company had extended the deadline for a $2 B credit facility by three months to Jan. 15.
MRC

MOSCOW (MRC) -- Olin Corporation has announced that it is lifting the Force Majeure declared on Aug. 31 for all product shipments, except phenol, acetone, methyl chloride, methylene chloride and chloroform, from its Freeport, Texas facility, as per Hydrocarbonprocessing.

Olin was forced to reduce production at the facility due to supply and logistic constraints from truck, railroad and marine transportation caused by severe flooding resulting from Hurricane Harvey. Olin's third quarter 2017 adjusted EBITDA will be reduced by approximately USD40 MM representing incremental costs to continue operations, unabsorbed fixed manufacturing costs and reduced profit from lost sales.

Isolated transportation, raw material and customers' issues will continue to be experienced in both the Chlor Alkali Products and Vinyls and Epoxy segments into Q4 2017. The impact on Q4 2017 adjusted EBITDA is expected to be significantly less than Q3 2017 impact.

As MRC informed before, Dow Chemical and Olin Corporation completed their chlor-alkali, chlorinated organics and epoxy asset merger at the beginning of the third quarter 2015 and appointed new executives to the combined company that began operations under the Olin umbrella.

Olin Corporation manufactures chemicals and ammunition products. The Company manufactures and sells chlorine, caustic soda, sodium hydrosulfite, hydrochloric acid, hydrogen, sodium chlorate, bleach products, and potassium hydroxide. Olin also manufactures products that include sporting ammunition, reloading components, small caliber military ammunition and industrial cartridges.
MRC