AkzoNobel to expand silica capacity in Sweden

MOSCOW (MRC) -- AkzoNobel’s Specialty Chemicals business is investing more than EUR4 million to increase production capacity in Sweden for its Levasil CC-branded product line of patented surface modified colloidal silica, said the producer on its site.

The expansion will help meet growing customer demand and will strengthen the company’s market leadership position.

A product of two natural ingredients - sand and water - colloidal silica is a versatile product which enhances and improves key functionalities of other products and manufacturing processes. With production facilities in Asia (Taiwan and China), Europe (Germany and Sweden) and the Americas (Brazil and US), AkzoNobel is a leading global producer of colloidal silica products. The business’ main markets include electronics, coatings, construction and catalysts, as well as batteries.

"Within our Levasil Colloidal Silica brand, we have a very diverse product portfolio and are experiencing growing demand in various markets, such as coatings, where Levasil CC supports the industry in its switch from solventborne coatings to waterborne alternatives," said Ann Lindgarde, Director of Levasil Colloidal Silica at AkzoNobel. "We also anticipate future growth as we continue to research and develop new applications for a range of industries."

The expansion, at the Bohus facility close to Gothenburg, is expected to be completed by late 2018. It is the latest initiative aimed to fuel further growth of AkzoNobel’s colloidal silica business. Last year the business commissioned a new lab and implemented an innovative process step that boosted production capacity of Levasil products.

"This is a significant investment which not only strengthens our leadership position, but also underlines our commitment to growing with our customers and meeting their changing needs," explained Niek Stapel, Managing Director of AkzoNobel’s Pulp and Performance Chemicals business.

Stapel added: "More than 50% of colloidal silica revenue comes from Eco-Premium products, which offer our customers more sustainability benefits than competitive products. The increasing demand for Levasil CC, as well as other products in the Levasil portfolio, mirrors a growing demand for products with clear sustainability benefits."

Building on strong competitive positions, and in response to customer demand, AkzoNobel’s Specialty Chemicals business is selectively increasing production capacities across its portfolio. This quarter the company made progress with expansion projects at its Kvarntorp plant in Sweden, Frankfurt facility in Germany and Ningbo multi-site in China, while projects were completed in the US, China, Brazil and Denmark.

As MRC informed before, in December 2016, AkzoNobel finalized the acquisition of BASF’s global Industrial Coatings business, which supplies a range of products for industries including construction, domestic appliances, wind energy and commercial transport, strengthening its position as the global number one supplier in coil coatings.

Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.
MRC

MOSCOW (MRC) — Oil edged further above USD62/bbl on Tuesday, supported by strong demand, expectations of a drop in US crude inventories and an OPEC-led deal to extend oil output cuts, said Reuters.

Concerns that the OPEC-led producer group's Nov. 30 decision to prolong their supply-cutting deal through 2018 could bolster US shale drilling limited gains, however. US production climbed to nearly 9.5 MMbpd in September. Brent crude, the global benchmark, was up 25 cents at USD62.70/bbl by 1443 GMT. US crude, known as West Texas Intermediate, rose 3 cents at USD57.50.

"Demand remains firm which is the main reason for us to still see oil at above $60/bbl," said Georgi Slavov, head of research at Marex Spectron. The Organization of the Petroleum Exporting Countries, Russia and other non-OPEC producers last week extended the deal to cut output by 1.8 MMbpd until the end of 2018 to get rid of excess oil in storage.

Faster-than-expected growth in demand this year has given tailwind to OPEC's efforts to clear the glut and the latest US inventory reports are likely to show a third straight weekly drop in crude stocks. Analysts expect the reports from industry group American Petroleum Institute (API) and the government's Energy Information Administration (EIA) to show crude stocks fell by 3.5 MMbbl.

The API report is out at 2130 GMT on Tuesday, followed by the government supply report on Wednesday. OPEC has shown strong compliance with the supply cut pledge and in November output fell by 300,000 bpd to its lowest since May, according to a Reuters survey.

However, rising US oil production presents a headwind for OPEC's efforts and data last week showed US crude output rose to nearly 9.5 MMbpd in September, approaching the high of 9.63 MMbpd seen in 2015. "US output will play the most significant role on the supply front in 2018," said Tamas Varga of oil broker PVM.

"A jump above USD60 in WTI could easily push US production over the 10 MMbpd mark, increasing the non-OPEC forecast and capping further attempts to push prices higher."
MRC

MOSOCW (MRC) -- Negotiations over prices of European polyvinyl chloride (PVC) for December shipments to the CIS countries began this week. Weak demand made European producers further reduce their export PVC prices, according to ICIS-MRC Price report.

The December contract price of ethylene was agreed up by EUR32/tonne from November, which presupposes a EUR16/tonne increase in PVC production costs. However, weaker demand from export markets forced European producers to reduce their export prices, despite the trends in the feedstocks markets. Some European producers announced a price decrease of EUR15-20/tonne from the second half of November.

In the second half of November, some manufacturers were already forced to reduce export prices, offer prices had fallen to EUR740-800/tonne FCA by the end of the month, whereas deals were done in the range of EUR765-820/tonne FCA at the beginning of the month.

Negotiations over December shipments of suspension PVC (SPVC) to the CIS markets were held in the range of EUR720-785/tonne FCA. Some market participants were slow to conclude deals, expecting further price cuts, as it was in November.
MRC

Moscow (MRC) - Prices for polypropylene (PP) increased in the Russian market in November, contrary to the experience of the past. The average price increase was about roubles (Rb) 3,000/tonne, depending on the supplier, according to the ICIS-MRC Price Report.

In previous years Russia's PP prices decreased in November under the pressure of the seasonal factor. The demand for polymer had weakened, while the supply of material in the market increased after the end of the period of scheduled maintenance works of key producers.

The situation in the market has changed this year, lower prices in the first half of the month changed to growth in the second half of November. Demand for polypropylene in the first half of November declined, and this factor began to put pressure on prices.

Price offers for the supply of the Central Asian homopolymer PP raffia reached a level of Rb84,000/tonne FCA, including VAT; the Russian parity was on average by Rb1,000/tonne more expensive. The largest supplier of polypropylene in Russia - SIBUR announced an increase in prices for homopolymer PP by Rb3,000/tonne. Other suppliers reacted moderately to such a tangible price increase, raising prices on average by Rb1,000/tonne before the end of the month.

The market for propylene copolymers was more complicated. Supply of extrusion PP block copolymers and injection moulding PP random copolymers was tight in November. Prices for injection moulding PP random copolymers in some cases reached 120,000/tonne FCA, including VAT.

Prices for injection moulding PP block copolymers and extrusion PP random copolymers were steady in November, as weaker demand and sufficient supply did not allow prices to rise.
MRC

MOSCOW (MRC) -- PTT Global Chemical (PTTGC) is expected to shut its high density polyethylene (HDPE) plant, according to Apic-online.

A Polymerupdate source in Thailand informed that the company is likely to shut the plant in February/March 2018, for a maintenance turnaround. The plant is expected to remain offline for around 2 weeks.

Located at Map Ta Phut in Thailand, the HDPE plant has a production capacity of 250,000 mt/year.

As MRC informed before, PTT is on track to start commercial operations at its new 400,000 mt/year metallocene C6 linear low density polyethylene (MLLDPE) plant at Map Ta Phut, Thailand, in the first quarter of 2018. PTT will start up the plant by the end of this year.

PTT currently has a total capacity of 800,000 mt/year of HDPE, 300,000 mt/year of low density polyethylene (LDPE) and 400,000 mt/year of LLDPE at the same site.

PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.
MRC