November prices of European PP dropped for CIS markets

MOSCOW (MRC) -- The November contract price of propylene was settled at the level of October in Europe. However, many European producers announced a reduction in export prices of polypropylene (PP) for the CIS countries, despite the stability of monomer prices, according to ICIS-MRC Price Report.

Negotiations over November prices of European PP began at the end of last week, many market participants said many European producers reduced their export PP prices, despite the situation in the propylene market. Negotiators said local producers had no restrictions on November shipments.

Deals for November shipments of homopolymer propylene (homopolymer PP) were done in the range of EUR990-1,100/tonne FCA, whereas last month's deals were done in the range of EUR1,040-1,130/tonne FCA.

Deals for block copolymers of propylene (PP block copolymers) were done in the range of EUR1,140-1,210/tonne FCA, down by an average of EUR30/tonne from October. Negotiations over November shipments of statistical propylene copolymers (PP random copolymers) were held in the range of EUR1,190-1,250/tonne FCA.
MRC

MOSCOW (MRC) -- Cosmo Films, a global leader in films for packaging, labeling and lamination applications has been recently announced as one of the winners for SIES SOP and IFCA Star Awards for excellence in its packaging innovation and product development in the flexibles space, as per the company's press release.

The winning entries for SIES SOP Star Awards include a recyclable soap wrap film and an Ultra High Barrier Film that can serve as a replacement of aluminium foil. The recyclable soap wrap film is a major innovation as it helps both brands and converters fair better on laminate structure rationalization & GSM reduction thus reducing the overall costs; better aesthetics because of pearl effect and of course recyclability quotient. The winning entry for IFCA star award includes a Black Velvet Lamination film which offers intense black colour along with velvet touch to the laminated paper/paperboard or package, thereby enhancing its overall aesthetics.

IFCA Star Awards are conferred by the Indian Flexible Packaging & Folding Cartons Association, SIES SCHOOL OF PACKAGING STAR AWARDS as the name suggests are presented by the renowned institution SIES that is credited with producing some of the finest professionals of the packaging industry. The awards presentation ceremonies for both the awards are yet to take place (scheduled for November); however, the winners have already been announced.

Expressing delight over the latest award announcements, Mr Tapas Mandal, Head-Research & Development at Cosmo Films said, "We are humbled to receive these awards. Any form of recognition encourages us to only raise our product standards to the next level. These awards go on to further assure our customers that we have been developing some of the finest products with improved functionalities & aesthetics with cost effectiveness in mind."

As MRC wrote previously, in April 2017, Cosmo Films Limited announced plans to install a new production line at Waluj for Speciality Polyester (Biaxially-Oriented Polyethylene Terephthalate) films by Q3 of 2018-19. The new unit is expected to be ready by the third quarter of 2018-19. The new line will be commissioned at Waluj plant site in Aurangabad, Maharashtra with a capacity of 36,000 mtpa. The project for the new line will entail an investment of Rs. 250 crores and shall be funded through a mix of internal accruals and debt.

Established in 1981, Cosmo Films Limited today is a global leader in speciality films for packaging, lamination and labeling applications. Its films offerings include biaxially oriented polypropylene (BOPP) films, cast polypropylene (CPP) films and soon to be offered biaxially oriented polyethylene terephthalate (BOPET) films. Today, the company is the largest exporter of BOPP films from India and is also the largest producer of thermal laminating films in the world with plant cum distribution centres in the U.S, Korea & Japan and global channel partners in more than seventy countries.
MRC

MOSCOW (MRC) -- Spanish oil major Repsol posted close to a 90% jump in third-quarter adjusted net profit after higher oil prices boosted its production division while its refining arm remained highly profitable, reported Reuters.

Repsol's performance echoed that of European competitors Shell, Total and BP, which all reported stronger quarterly profit on the back of the recovery in crude prices.

Average recurring net profit adjusted for one-off gains and inventory effects (CCS net profit) came in at 576 MM euros (USD671 MM) in the July-September period, compared with a 553 MM euro consensus in a Reuters poll of analysts.

Third-quarter production reached 695,000 bpd, versus 671,000 bpd in the same period of 2016 while the refining margin was USD7/bbl, up from USD5.10 a year ago.

Net debt fell to 6.97 B euros at Sept. 30, from 7.48 B euros 3 mos earlier, and is on track for the year-end target of less than 7 B euros.

At the market open, Repsol shares edged up by 0.4% to 16.21 euros.

As MRC informed before, in Q1 2016, Repsol completed the construction work of its new metallocene polyethelene (MLLDPE) plant at its Tarragona site. Repsol started up the plant and began production and marketing of this new product during Q2 2016.

Repsol S.A is an integrated Spanish oil and gas company with operations in 28 countries. The bulk of its assets are located in Spain.
MRC

MOSCOW (MRC) -- Praxair has started up three of four new vacuum pressure swing adsorption (VPSA) units at the Daesan petrochemical complex in South Korea, which were built to supply oxygen to Hyundai Oilbank, as per Apic-online.

The companies entered into a long-term contract last year, under which Praxair agreed to build, own and operate the VPSA plants to supply a combined 750 t/d of oxygen to Hyundai. The fourth unit is scheduled to start up early next year.

Hyundai has a 520,000-b/d refinery in South Korea, where it produces gasoline and propylene. The oxygen is being used in Hyundai's residue fluid catalytic cracking process.

Praxair was the first to develop VPSA technology and has more than 250 VPSA plants worldwide.

As MRC reported earlier, in September 2016, Praxair, Inc. announced it had signed a long-term contract to supply industrial gases to Hyundai Oilbank (Hyundai), a leading oil refining company in South Korea.

Praxair, Inc., a Fortune 300 company with 2016 sales of USD11 billion, is a leading industrial gas company in North and South America and one of the largest worldwide. The company produces, sells and distributes atmospheric, process and specialty gases, and high-performance surface coatings. Praxair products, services and technologies are making our planet more productive by bringing efficiency and environmental benefits to a wide variety of industries, including aerospace, chemicals, food and beverage, electronics, energy, healthcare, manufacturing, primary metals and many others.
MRC

MOSCOW (MRC) — Oil prices steadied on Tuesday after a week of gains as the prospect of increasing US exports dampened bullish sentiment that has driven Brent to more than 2-yr highs above USD60/bbl, said Reuters.

Iraq's move to increase oil exports from its southern ports by 220,000 bpd to 3.45 MMbpd to make up for supply disruptions from its northern Kirkuk fields also weighed on prices, traders said. Benchmark Brent was down 10 cents at $60.80/bbl by 1050 GMT, not far off July 2015-highs reached earlier this week, and up around 37% since their 2017 lows last June.

US light crude was 10 cents lower at USD54.05, still near its highest since February and also not far off its highest for more than two years. Traders and brokers said investors were adjusting positions after price rises of around 5% in October. Despite generally upbeat sentiment, some analysts also warned the market was overbought, having risen too far, too fast.

"US shale output could keep a lid on prices over the medium to long-term," said Shane Chanel, equities and derivatives adviser at ASR Wealth Advisers. US light crude has been trading at a discount of around USD6.70 to Brent making it attractive to refiners.

US crude production has risen almost 13% since mid-2016 to 9.5 MMbpd. "The large differential has opened the door on regional arbitrage, driving a spike in US crude exports over recent weeks," BMI Research said in a note.

Despite Tuesday's price dip, sentiment remained positive, fueled by a pledge by the Organization of the Petroleum Exporting Countries, Russia and other exporters to hold back about 1.8 MMbpd in oil production to tighten markets.

While the actual cuts aren't quite as high as the target, analysts say overall compliance has been strong. "The OPEC deal compliance has been very firm, with rates averaging 86% since January," according to Bank of America Merrill Lynch.

The pact runs to March 2018, but Saudi Arabia and Russia have voiced support to extend the agreement. OPEC is scheduled to meet officially at its headquarters in Vienna, Austria, on Nov. 30.

"The fear of oversupply could easily turn to a fear of undersupply if inventories keep declining like they have been and demand continues to grow," said William O'Loughlin, investment analyst at Rivkin Securities.
MRC