Orpic sets a new benchmark - launches a new generation of high quality thermoforming Luban grade

MOSCOW (MRC) -- Oman Oil Refineries and Petroleum Industries Company (Orpic) has launched a new thermoforming grade called Luban HP1151K that will increase both productivity and the overall performance of transparent thermoformed cups, trays and containers, as per the company's press release.

The new PolyPropylene thermoforming grade is based on Milliken's nucleating innovation Hyperform HPN-600ei.

Orpic’s Luban HP1151K combines high clarity and aesthetics with a new level of superior dimensional stability for thermoformed products. Luban HP1151K is based on the latest technology available to offer the food packaging and household storage solutions industries a new benchmark in pure, high quality PP.

Apart from being able to increase the number of articles that can be produced, the high quality finished products provide good stacking performance. It also offers a broad processing window that opens up distinct product quality and consistency advantages plus the all-important productivity benefits for converters.

Additionally, the grade delivers optimal environmental and handling-related advantages associated with using lightweight PP compared to other materials.

Gilles Rochas, General Manager - Polymer, Orpic says, "The product has a good resin base and tests conducted so far have been successful. Luban HP1151K reduces haze in the product and increases clarity and gloss. We are confident that upon introduction of Luban HP1151K, this high quality product will offer Oman and the international packaging customers an opportunity to reduce their cycle times and achieve better results through less wastage whilst offering all-round productivity improvements."

Hyperform HPN-600ei also offers good organoleptics with no contamination risk making Luban HP1151K suitable for food applications.

As MRC informed before, Orpic plans to raise capacity of its PP plant to 340,000 tpa of high quality PP from 200,000 tpa.

Orpic (Oman Oil Refineries and Petroleum Industries Company) is one of the leading companies in Oman and has two refineries in that country, in Sohar and Muscat. ORPIC is owned by the Government of the Sultanate of Oman and Oman Oil Company SAOC, the trading company created by the Government of the Sultanate of Oman for managing investments in the energy sector.
MRC

Not all European producers raised PP prices for CIS markets

MOSCOW (MRC) -- The contract price of propylene in Europe was agreed by EUR25/tonne higher than in April, but most European producers announced a roll-over of April export prices of polypropylene (PP) for May shipments to the CIS markets, according to ICIS-MRC Price report.

In some cases, however, prices went up by EUR30/tonne from April.

Negotiations over May prices of European PP have been actively conducted this week, some deals will be agreed only next week. All market participants reported the roll-over of April export prices of propylene polymers for this month, except for two producers, which increased their prices of homopolymers of propylene (homopolymer PP) by EUR30/tonne from April.

Deals for May shipments of homopolymer PP were discussed in the range of EUR1,120-1,155/tonne FCA, whereas April deals were negotiated in the range of EUR1,090-1,155/tonne FCA. Some producers have already had restrictions for export of injection moulding homopolymer PP for two months.

Deals for block copolymers of propylene (PP block copolymers) were discussed in the range of EUR1,210-1,250/tonne FCA, which corresponded to April prices.
MRC

Arkema starts new Kynar fluoropolymer production capacities in the United States

MOSCOW (MRC) -- Arkema has successfully brought on stream new Kynar PVDF capacities in its Calvert-City plant in the United States, as per the company's press release.

With this 20% increase in its US production capacities, Arkema will further support its customers’ strong demand in the region.

Through this investment and following the successful start-up of a similar expansion at its Changshu, China plant in 2017, Arkema, which operates fluoropolymer production facilities on the three major continents - Europe, North America, and Asia, further consolidates its world-leading position in PVDF.

This new capacity, which has been brought online ahead of schedule, will enable the Group to support its customers’ growth in America, particularly in emerging applications such as water filtration and in traditional markets such as the chemical process industry and high performance cables (automobile, fiber optics, oil industry).

This expansion also supports Arkema’s ambition to accelerate the development of its advanced materials, one of the key pillars of its future growth.

As MRC wrote before, in March 2017, Arkema completed the sale to INEOS of its 50% stake in Oxochimie, their oxo alcohols manufacturing joint venture, and of the associated business.

Arkema is a leading European supplier of chlorochemicals and PVC. Kynar and Kynar Flex are registered trademarks of Arkema Inc.
MRC

Lotte Chem Q1 net profit falls by 15.3% on currency effects

MOSCOW (MRC) -- Lotte Chemical Titan Holding Bhd's earnings fell in the first quarter ended March 31, 2018 mainly due to margin squeeze and foreign exchange (forex) loss, as per Thestar.

It announced on Monday that its earnings fell 28.6% to RM244.19mil from RM342.15mil a year ago. Its profit before tax decreased by RM86.5mil to RM300mil mainly due to the margin squeeze and forex loss.

Its revenue by 15.7% to RM2.214bil from RM1.914bil due to an increase in sales volume compared with a year ago which had a statutory routine turnaround.

"Average plant utilisation was 83% compared to 58% in corresponding quarter. For Q12017, this was mainly due to statutory routine plant turnaround for cracker 2 and other downstream plants in Malaysia.

Lotte said feedstock price increased from end 2017, while product price subsequently picked up with lagging effect.

Foreign exchange loss of RM44.6mil arose as a result of the revaluation of the group's US dollar IPO funds against the ringgit held for Indonesia project capital injection as a result of the strengthening of the ringgit against the US$ in Q1 2018.

This forex loss was partially offset by forex gain of RM34.9mil from operations in Q1 2018.

Earnings per share were 10.74 sen per share compared with 19.80 sen.


MRC

Indian refiners in no rush to seek alternatives to Iranian oil

MOSCOW (MRC) -- Indian refiners said they were in no hurry to replace Iranian oil with alternatives, counting on the fact that many Western countries have so far declined to join the United States in pulling out of a nuclear deal with Tehran, reported Reuters.

U.S. President Donald Trump said on Tuesday he would reimpose economic curbs on Iran after withdrawing the United States from the 2015 agreement that lifted sanctions against Tehran in exchange for limits on its nuclear programme.

But the leaders of Britain, Germany and France, which were signatories to the deal along with China and Russia, said in a joint statement that Trump's decision was a cause for "regret and concern" and were seeking to salvage the deal.

"We are largely unaffected," said A.K. Sharma, finance chief at Indian Oil Corp (IOC). "This time the situation is different from the last time. We hope clarity on the real impact of sanctions will emerge in 10-15 days."

IOC, India's biggest refiner, hopes to stick to its plans to buy as much as 180,000 barrels per day (bpd) of oil from Iran in 2018/19, more than double the volume in the last fiscal year that ended in March, Sharma said.

It would be difficult to replace Iranian oil given the "commercial terms" offered by Tehran, he said.

India, which has long-standing ties with Iran but also has close political relations with the United States, is Iran's top oil client after China. Its state refiners had chalked out plans to almost double oil imports from Iran this fiscal year, drawn to the virtual free shipping on oil sales offered by Iran, Reuters reported last month.

The South Asian country remained a big buyer of Iranian oil even during previous Western sanctions, though it had to cut purchases to win some waivers as the trade was mostly done in U.S. dollars. Since the 2015 agreement, however, Indian refiners have been settling oil dues with Iran in euros.

And given that three top European countries are still part of the deal, trade won't be affected much, at least in the short term, said R. Ramachandran, head of refineries at state-run Bharat Petroleum Corp.

In any case, oil sanctions will kick in in about six months, by which time most Indian refiners "may have consumed most of their Iranian volumes", Ramachandran said.

The U.S. Treasury Department has indicated that sanctions won't be reimposed immediately, and will take up to 180 days to allow Iranian oil customers and other companies involved in doing business with Tehran to make plans.

M.K. Surana, chairman of Hindustan Petroleum, said refiners may use that time to step up purchases from Iran.

The Indian oil ministry has not commented on the U.S. pullout, but the foreign ministry on Wednesday called for diplomacy to resolve the dispute over the nuclear deal with Iran.

Separately, South Korea said on Wednesday it would seek U.S. exemptions to buy Iranian oil, a path many big oil consumers are likely to follow in the wake of new U.S. sanctions on Tehran, which will tighten world oil markets and push up prices.
MRC