Sidel adjusts equipment prices due to rising raw material costs

MOSCOW (MRC) -- The global pandemic has affected the packaging solution industry by leading to a significant price increase and shortage of raw materials and components used in packaging equipment, said the company.

To compensate for the rising costs and continue to provide the highest quality solutions, Sidel is implementing a commodity-induced price adjustment on its equipment by an average of 5% effective September 6, 2021. Deficiency of raw materials and components may impact equipment delivery time as well.

Since the outbreak of COVID-19, Sidel has been striving to keep the same price level for its equipment despite the fact that the price of raw materials has increased significantly since 2020. Moreover, this increase is not expected to recover in the foreseeable future.

Additionally, the pandemic, combined with other external factors, has resulted in a significant shortage of microchips globally. This shortage is an outcome of supply-related disruptions, including forced closure of factories, together with an unanticipated increase in demand for personal electronics such as cell phones and laptops as people were required to work or study remotely. Both supply shortage of microchips and increase in consumption of personal electronics lead to supplier delays which might impact the overall Sidel delivery channels for the near future.

"We are doing everything that is in our control to ensure the high quality solutions Sidel is known and celebrated for and to acquire the needed commodities whenever and wherever they are available. For this reason, we have increased communication with our suppliers and customers as well as adapted our project execution processes internally, so that the component delays have the minimum impact possible,” says Ko Hoepman, EVP Portfolio, Innovation & Marketing at Sidel, assuring that Sidel is working to mitigate any risks that shortages could cause.

As MRC informed earlier, in a bid to expand its packaging solutions portfolio, blow molding machinery maker Sidel Group has acquired blow molder and packaging designer PET Engineering Srl. The terms of the deal have not been disclosed. Founded in 1999 and based in San Vendemiano, Italy, PET Engineering has 40 employees and a global customer base.

According to MRC's ScanPlast report, Russia's estimated PET consumption totalled 411,200 tonnes in the first six month of 2021, up by 12% year on year. Russian companies processed 62,910 tonnes in June, compared to 85,890 tonnes a month earlier.

Sidel is a leading global provider of packaging solutions for beverage, food, home and personal care products in PET, can, glass and other materials.
MRC

MOSCOW (MRC) -- Portugal’s government has approved legislation banning from 1 November the sale of certain single-use plastic products, such as cotton swabs, cutlery, plates, straws and sticks for balloons, said Macaubusiness.

In a news released, the Ministry of the Environment and Climate Action said that the law, which was approved at Thursday’s weekly cabinet meeting, represents “the partial transposition” of a European Union directive approved on 5 June 2019 on “reducing the impact of single-use plastic products [and] products made of oxodegradable plastic."

According to the notice, as of 1 November “the placing on the market of certain single-use plastic products such as cotton swabs, cutlery, plates, straws, balloon sticks, as well as cups and food containers made of expanded polystyrene is prohibited."

In line with the EU directive, the government legislation sets two targets for the reduction of consumption of cups for drinks and packages for ready-to-eat food: an 80% decrease in consumption from the 2022 level by the end of 2026, and a 90% decrease by 2030.

According to the ministry, in order to ensure these goals measures are planned to be implemented from 2024, such as ensuring the availability of reusable containers for consumption of food and beverages, for which a deposit is to be charged.

It adds that, under a phased schedule, requirements will be established for the design of beverage containers, targets for the incorporation of recycled plastic in bottles for drinks and for the selective collection of bottles with a capacity of less than three litres, and the launch of consumer information and awareness campaigns by the producers of certain single-use plastic products.

As per MRC, the European Parliament voted to ban single-use plastics across the board in an attempt to stop the unending stream of plastic pollution making its way into the oceans. Such plastic products include things like straws, plates, cups and cotton buds, and can take several centuries to degrade in the oceans where they are increasingly observed to be consumed by marine life. According to the European Commission, such plastics make up 70 percent of all marine litter.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.
MRC

MOSCOW (MRC) - Austrian oil and gas group OMV plans to speed up restructuring and announce a new, sustainability-focused strategy early next year, according to Hydrocarbonprocessing with reference to new Chief Executive Alfred Stern's statement to journalists.

"There is no way around optimising towards sustainability," Stern said, adding that the group was committed to the Paris climate goals.

The chief executive, who took the helmet from Rainer Seele on Sept. 1, kept it open whether OMV would withdraw from its profitable business with fossil energies and whether it would invest in renewables.

"We will make our strategy based on where we can differentiate ourselves, where we believe we can beat the competition."

As MRC reported earlier, OMV reported utilization of 83% at its European refineries in H1, 2021, down by 3% on the year yet "relatively resilient in light of the COVID-19 impact." It expects the utilization rates at its European refineries to remain at the 2020 level this year. Last year its refineries reported 86% utilization. The company's refineries in Europe ran at 85% utilization in Q2, up from 81% in the year-ago quarter.

We remind that OMV is investing EUR40 million (USD48 million) to expand and modernize a steam cracker and associated units at its refining and petrochemicals complex at Burghausen, Germany. The upgrade will increase the site’s ethylene and propylene production capacity by 50,000 metric tons/year. Following a planned turnaround of the refinery, the revamped cracker and petchem units are expected to start operations in the third quarter of 2022. Initial groundwork is already underway ahead of the upgrade.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.

OMV produces and markets oil and gas, innovative energy and high-end petrochemical solutions – in a responsible way. With Group sales of EUR 23 bn and a workforce of around 20,000 employees in 2019, OMV Aktiengesellschaft is one of Austria’s largest listed industrial companies.
MRC

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex, and rubber, has announced that effective October, 1, 2021, the company is increasing the prices of all Styrene Butadiene latex products sold into the carpet market in North America, as per the company's press release.

The increase will be USD0.08/dry lb (USD0.18/kg or USD180/tonne) or as contracts allow.

According to the statement, the present increase is necessary to offset rising raw material and transportation costs and to remain a strong and reliable supplier.

As MRC reported earlier, Trinseo and its affiliate companies in Europe have announced a price reduction for all polystyrene (PS) grades in Europe. Effective September 1, 2021, or as existing contract terms allow, the contract and spot prices for the products listed below went down, as follows:

- STYRON general purpose polystyrene grades (GPPS) -- by EUR65 per metric ton;
- STYRON and STYRON A-Tech and STYRON X- Tech and STYRON C- Tech high impact polystyrene grades (HIPS) - by EUR55 per metric ton;

According to ICIS-MRC Price report, in Russia, Nizhnekamskneftekhim raised its September selling HIPS an GPPS prices for most buyers by Rb700-750/tonne amid an increase in delivery costs. However, some market participants reported a price roll-over.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD3.0 billion in net sales in 2020, with 17 manufacturing sites around the world, and approximately 2,600 employees.
MRC

1. Russian producers maintain September PVC prices at record high level

MOSCOW (MRC) -- September did not bring the long-awaited reduction in polyvinyl chloride (PVC) prices to Russian converters. A shortage still remained in the market, no producers reduced their prices for September shipments with one exception, according to ICIS-MRC Price report. The last year"s situation is repeated in the Russian PVC market. Converters expected prices to drop in September under the pressure of the end of shutdowns for maintenance and the approach of the "winter season". But as in the previous year, strong demand and insignificant imports allowed Russian producers to maintain record high prices in the domestic market. This month, two producers further raised their PVC prices, and only one producer reduced its prices. Higher imports in August and stable operations of domestic producers did not lead to a surplus of resin in the market. Moreover, there were still restrictions on PVC supplies from several large producers. And these restrictions played a decisive role in pricing for September.



MRC