US, China rivalry poses risk to plastics industry

MOSCOW (MRC) -- China's list of U.S. products that could be taxed upon export, threatens the United States plastics and chemicals industry, according to the American Chemistry Council, reported Hydrocarbonprocessing.

The US announced imposed tariffs on imports of Chinese steel and aluminum and China responded with a list including, low-density polyethylene, polyolefin elastomers and plastomers, polyvinyl chloride resin, polyamide 66 resin, aromatic and semi-aromatic PAs and their copolymers, and epoxy resin.

American Chemistry Council (ACC) President and CEO Cal Dooley issued the following statement in response to the announcement by China that it plans to impose tariffs on billions of dollars in US exports following U.S.-imposed tariffs on imports of Chinese steel and aluminum:

"U.S. chemical manufacturers believe the principles of free and fair trade should apply to all members of the WTO, and that includes China. However, engaging in a trade war with one of our country's most significant trading partners is not the answer. We strongly urge both the US and Chinese governments to work together to come to a satisfactory and mutually beneficial decision before this situation escalates further.

"China is one of the U.S. chemical industry's most important trading partners, importing 11 percent, or USD3.2 billion, of all U.S. plastic resins in 2017. We are particularly concerned that 40 percent of the products to which China has assigned new tariffs are chemicals, including polyethylene, PVC, polycarbonates, acrylates, and others.

"Nearly USD185 billion in new chemical factories, expansions and restarts of facilities around the country are predicated on current tariff schedules, and market shifts caused by tariff increases may convince investors to do business elsewhere. We strongly urge the U.S. and China to reach a productive and meaningful agreement before any of the proposed tariff schedules go into effect."
MRC

MOSCOW (MRC) -- According to the figures presented today, revenue for the KraussMaffei Group increased 8 percent to EUR1.37 billion, in 2017, while growth in new orders, at 6 percent, was also solid, as per Plasticsnewseurope.

Both results were higher than the record achieved in 2016, said Frank Stieler, CEO of the KraussMaffei Group, who pointed to China as the driver for the Group’s performance.

KraussMaffei was acquired by ChemChina in 2016, gaining improved acess to the Chinese market. "Our products in the injection molding and reaction process technology segments in particular benefited greatly from growing Chinese demand", said Stieler.

Over the longer term, KraussMaffei will continue to focus on digitalization, automation, and regional markets, a focus which will necessarily be accompanied by substantial investment the Group’s machine fleet, IT infrastructure, and software during the current fiscal year. Capital investment of about €67 million is planned for 2018, representing an increase of 81 percent compared to the previous year.

The Group also reported that its previously announced planned stock market listing is currently subject to approval by various authorities and committees in China.
MRC

MOSCOW (MRC) -- Borealis Supervisory Board announces the appointment of Alfred Stern as new CEO following on from their highly regarded CEO, Mark Garrett, who has decided to step down, as per the company's press release.

After more than 11 years as CEO of Borealis, Mark Garrett has decided to leave the company to pursue a new career path. The Supervisory Board of Borealis regrets but accepts this decision, recognising Garrett’s outstanding contribution to Borealis’ success.

Executive Vice President Alfred Stern, currently responsible for the Polyolefin Business and Innovation, has been appointed as CEO effective July 2, 2018. With this appointment, the Supervisory Board recognises Alfred Stern’s strong contribution to the success of Borealis, which provides the foundation for Alfred, together with his executive management team to drive Borealis through the next growth wave.

Mark Garrett joined Borealis in 2007, taking over a company in the final stages of a successful scrap and build programme in Europe. The 11 years of Mark Garrett’s tenure represented a significant phase of growth and geographic expansion for the company with both volumes and net profits tripling, with net profits reaching EUR 1.1 billion, in 2017. Over the time there were many significant projects including the very successful Joint Venture mega projects Borouge 2 and Borouge 3 that resulted in Borouge’s capacity growing from 0.6 million tons to 4.5 million tons. However, Garrett regards Borealis’ performance at the depths of the global financial crisis as a true highlight where the whole Western petrochemical industry incurred multi-billion dollar losses whilst Borealis managed to record a small net profit of EUR 38 million.

In 2016/2017 Garrett initiated the next growth phase for Borealis by filling the pipeline with major investment projects like the joint venture with Total and Nova Chemicals in Texas (USA), the PDH plant in Kallo, Belgium and the further extension of Borouge.
MRC

March SPVC imports grew to 1,900 tonnes from 1,200 tonnes a month earlier. Thus, overall imports of resin to Russia totalled 5,700 tonnes in January-March 2018, compared to 4,800 tonnes a year earlier. At the same time, Russian producers were forced to ship resin for export more actively this year, export sales increased by 1.5 times.

Chinese producers have been traditionally the key foreign PVC suppliers for the past several years. March imports of Chinese acetylene resin grew to 1,900 tonnes from 800 tonnes a month earlier. Overall imports of resin from China were 5,100 tonnes in the first three months of 2018, compared to 3,900 tonnes a year earlier.

Imports of acetylene PVC is expected to increase further in April. Chinese producers reduced significantly their export prices in the second half of March, and Russian companies began actively purchasing resin for April shipments. This month's overall imports might exceed 5,000 tonnes.

At the same time, Russian producers had to increase their exports this year, although export sales decreased in March. About 5,000 tonnes were shipped to foreign markets last month (excluding deliveries to the countries of the Customs Union) versus 17,000 tonnes in Feburary. 43,500 tonnes of SPVC were shipped for export in January-March 2018, compared to 28,900 tonnes a year earlier.

MRC

MOSCOW (MRC) - April contract price of propylene in Europe was agreed up by EUR10/tonne from the level of March. Most European producers announced the increase in April export PP prices for CIS markets proportionally to the increase in prices of propylene, according to ICIS-MRC Price Report.

In some cases prices were increased by EUR15-30/tonne and roled over from March. Negotiations on the April price for European PP began on Tuesday, 3 April.

All market participants reported an increase in export prices for propylene polymers in the current month, at least in proportion to the growth in the price of the monomer in the region, with some exceptions. Some producers announced an increase in homopolymer PP prices by EUR30/tonne from the March level.

Deals for April shipments of homopolymer PP were discussed in the range of EUR1,090-1,155/tonne FCA, whereas March deals were negotiated in the range of EUR1,060-1,145/tonne FCA. Some producers still had limited quotas for exports of injection moulding homopolymer PP.

Deals for copolymers of propylene (PP block copolymers) were discussed in the range of EUR1,210-1,250/tonne FCA, while in March deals were done in the range of EUR1,195-1,250/tonne FCA.
MRC