Shenhua Baotou brought on-stream LLDPE plant in China

MOSCOW (MRC) -- Shenhua Baotou has completed maintenance at the linear low density polyethylene (LLDPE) plant, as per Apic-online.

A Polymerupdate source in China informed that the company has resumed operations at the plant in end-September, 2017. The plant was shut for maintenance on September 12, 2017.

Located at Baotou City, China, the plant has a production capacity of 300,000 mt/year.

As MRC informed before, another Chinese petrochemical producer - Daqing Petrochemical - shut its high density polyethylene/LLDPE swing plant for a one-week maintenance turnaround on 6 September 2017. Located in Daqing city, China, the plant has a production capacity of 250,000 mt/year.
MRC

MOSCOW (MRC) -- Negotiations over prices of European polyvinyl chloride (PVC) for October shipments to the CIS markets were held last week. Most European producers further raised their PVC export prices, according to ICIS-MRC Price report.

The October contract price of ethylene was agreed up by EUR30/tonne from September, which presupposes the increase in PVC production costs by, at least, EUR15/tonne. At the same time, some producers slightly reduced their export prices and others decreased them more substantially than the rise in ethylene prices. Overall, the increase was EUR5-25/tonne.

Negotiations over October shipments of suspension PVC (SPVC) to the CIS markets were held in the range of EUR795-860/tonne FCA. Most producers' supply of PVC was sufficient, although some buyers reported tight supply of resin with K = 70 from some producers.
MRC

MOSCOW (MRC) - Russia's imports of polypropylene (PP) decreased to about 123,800 tonne in first nine months of this year, down 5% year on year, compared to the same period of 2016. Not all PP grades accounted for the decrease in shipments, according to a MRC's DataScope report.

Russian companies reduced polypropylene imports to 15,100 tonnes in September against 16,200 tonnes in August, local producers reduced purchases of PP block copolymers. In general, PP imports into Russia totalled 123,800 tonnes in January-September 2017, compared with 129,900 tonnes year on year. The reduction in external supplies was seen only for homopolymer PP and PP random copolymers, while imports of PP block copolymers and other propylene copolymers, on the contrary, increased.

Overall, the structure of PP imports by grades looked the following way over the stated period.

September imports of homopolymer PP into the country decreased to 3,600 tonnes, compared with 3,800 tonnes in August. Overall imports of this PP grade reached 40,800 tonnes in the first nine months of 2017, compared to 59,200 a year earlier.

September imports of PP block copolymers in Russia increased to about 3,700 tonnes against 5,300 tonnes in August. Local companies reduced purchasing of PP block copolymers for non-pressure pipes extrusion.

Imports of PP block copolymers into Russia reached 32,600 tonnes in January-September 2017, compared to 24,100 tonnes a year earlier.
Imports of PP random copolymer in September rose to 3,700 tonnes against 3,000 tonnes a month earlier, amid good demand and tight supply from Russian producers; local producers increased purchasing of PP for pressure pipes production. Total imports of PP random copolymers in Russia were 23,000 tonnes in January - September 2017, compared with 25,600 tonnes year on year.

Imports of other propylene polymers for the reported period increased to about 27,400 tonnes compared with 21,000 tonnes in the same time a year earlier.


MRC

September SPVC imports slumped to 432 tonnes from 2,500 tonnes a month earlier. Local companies almost completely ceased to purchase resin in foreign markets because of high export prices and sufficient supply from Russian producers. Thus, overall SPVC imports of resin to Russia were 42,400 tonnes in January-September 2017, compared to 117,600 tonnes a year earlier, with May accounting for the peak shipments, totalling 11,800 tonnes.

A major increase in the domestic production and further reduction of demand in the key processing segments led to a significant decrease in the dependence on PVC imports even in the period of high seasonal demand.

Chinese producers were traditionally the key foreign PVC suppliers for the past several years. Last month's overall imports of Chinese acetylene PVC fell to 58 tonnes from 2,300 tonnes a month earlier. Because of a major increase in export prices, Russian companies fully suspended their purchasing of resin in China back in the second half of July, and August shipments were, in fact, debts under contracts as of the first half of July. Thus, imports of Chinese resin were 39,500 tonnes in the first nine months of 2017, compared to 92,200 tonnes a year earlier. Imports of Chinese acetylene PVC are not expected to increase until the end of the year, even taking into account the October reduction in export prices.

European producers shipped small quantities of suspension, overall imports of European PVC fell to 2,400 tonnes over the stated period from 5,800 tonnes a year earlier.

MRC

MOSCOW (MRC) -- Indorama Ventures Public Company Limited (IVL), a global chemical producer, has announced that it has entered into an agreement to acquire DuPont Teijin Films (DTF), a leading global producer of Biaxially-oriented Polyethylene Terephthalate (BOPET) and Polyethylene Naphthalate (PEN) films with total film/polymer capacity of 277,000 tonnes per annum, as per the company's press release.

The DTF acquisition includes 8 production assets in the US, Europe and China, with a global innovation center in the UK. The transaction is expected to be completed during late 2017 or early 2018, subject to the usual regulatory approvals.

DuPont Teijin Films (DTF), a joint venture between DuPont and Teijin Limited, is the world’s premier producer of BOPET and PEN polyester high value-added film with unique functionalities. The group specializes in film products for the specialty, industrial, packaging, automotive, advanced magnetic media, photo systems, electrical and electronics markets and many more products that are essential in modern life. DTF is recognized for their market leadership and product innovation, and is constantly inventing and developing new uses for their products.

Included in the transaction are manufacturing and R&D operations associated with four joint ventures in the United States, United Kingdom, Luxembourg, and Hong Kong (DTFC), which includes two JVs in China (51%), as well as sales and technical capabilities, intellectual property, licenses and the Melinex and Mylar registered brands.

The global BOPET film industry has expanded rapidly and there are increasing applications and end-uses. The global consumption of BOPET is expected to increase at an average rate of about 7% CAGR per annum making the acquisition attractive. Critical success factors are customer intimacy, product innovation and R&D capabilities, which align well with DTF’s core competencies. Through the acquisition, IVL will further enhance PET integration and value-enhancement through captive NDC, a specialty chemical used in high performance polymers and films. IVL is the world’s only commercial manufacturer of NDC.

Commenting on the acquisition, Mr. Aloke Lohia, Group CEO of Indorama Ventures, said, "This acquisition marks a new chapter for IVL. It is the next step in creating a leading position for customer solutions in films. DTF provides prudent growth in an industry related to our core businesses and is a strong foundation for future growth. DTF has a strong history of R&D with over 700 patents, which makes it a strategic fit with our own innovation capabilities."

"We believe in diversity as a core value of the Company and we look forward to welcoming DTF’s strong management team and talented employees into our family."

Allen & Overy and Lowenstein Sandler LLP are serving as legal advisors to Indorama Ventures. Goldman Sachs & Co. LLC is serving as joint financial advisor to DuPont and Teijin. Eckert Seamans Cherin & Mellott LLC is serving as legal advisor to DuPont. Terralink Advisors Inc. is serving as financial advisor, and Morrison & Foerster LLP is serving as legal advisor to Teijin.

As MRC informed before, in April 2017, IVL announced that it was in initial talks with The Chatterjee Group (TCG) to buy a stake in Haldia Petrochemicals Ltd (HPL). TCG, promoted by non-resident Indian businessman Purnendu Chatterjee, owns close to 48% in Haldia Petrochemicals. Tata has around 2.3% stake, Indian Oil around 7% and lenders around 6% stake in Haldia Petrochemicals.

DowDuPont Specialty Products, a division of DowDuPont, is a global innovation leader with technology-based materials, ingredients and solutions that help transform industries and everyday life. Our employees apply diverse science and expertise to help customers advance their best ideas and deliver essential innovations in key markets including electronics, transportation, building and construction, health and wellness, food and worker safety. DowDuPont intends to separate the Specialty Products division into an independent, publicly traded company.

Teijin is a technology-driven global group offering advanced solutions in the areas of environmental value; safety, security and disaster mitigation; and demographic change and increased health consciousness. Its main fields of operation are high-performance fibers such as aramid, carbon fibers & composites, healthcare, films, resin & plastic processing, polyester fibers, products converting and IT. The group has some 170 companies and around 19,000 employees spread out over 20 countries worldwide. It posted consolidated sales of JPY 741.3 billion (USD 6.5 billion) and total assets of JPY 964.1 billion (USD 8.5 billion) in the fiscal year ending March 31, 2017.

Indorama Ventures Public Company Limited, a DJSI member, listed in Thailand, is one of the world’s leading petrochemicals producers, with a global manufacturing footprint across Africa, Asia, Europe and North America. The company’s portfolio comprises Necessities and High Value-Added (HVA) categories of Polymers, Fibers, and Packaging, selectively integrated with self-manufactured Ethylene Oxide/Glycols and PTA where economical. IVL products serve major FMCG and Automotive sectors, i.e. Beverages, Hygiene, Personal Care, Tire and Safety segments. IVL has approx. 15,000 employees worldwide and consolidated revenue of USD 7.2 billion in 2016. IVL is headquartered in Bangkok, Thailand with global operating sites in EMEA: The Netherlands, Germany, Ireland, France, UK, Italy, Denmark, Lithuania, Poland, Czech Republic, Luxembourg, Spain, Turkey, Nigeria, Ghana, North America: USA, Mexico, Canada: Asia: Thailand, Indonesia, China, India, the Philippines, Myanmar.
MRC