Europe February ethylene, propylene prices to rise further

(ICIS) -- February contract prices in Europe for ethylene (C2) and propylene (C3) are expected to increase from this month's prices because of a bullish outlook on feedstocks and robust demand, market sources said on Friday.

While upward price adjustments were widely expected for both C2 and C3, owing to the tight supply-demand balance, some consumers were unhappy with the magnitude of the increases already being discussed by some players, notably polyethylene (PE) producers.

This week, a number of PE and PP producers were already signalling extensive price increases next month for their downstream markets because of their expectations of how the monomer contracts will settle.

Margin-analysis data compiled by ICIS show this to be true, with the average December 2010 contract cracker margin at ┬153/tonne ($204/tonne), while the January-to-date margin was at ┬309/tonne.

Overall, price hikes of between ┬15-40/tonne and ┬20-50/tonne were being mooted for ethylene and propylene contracts, respectively. The settlements were expected next week.

The January ethylene contract price settled at ┬1,110/tonne FD (free delivered) NWE (northwest Europe), up by ┬105/tonne from December.

The January propylene contract price settled at a record high of ┬1,070/tonne, up by ┬110/tonne from December. Spot prices were being talked at around contract value on a CIF basis, although the much stronger US market was leading to price discussions in Europe of around the contract price plus ┬70/tonne.

MRC

(Plastics News) -- Los Angeles injection molder and blow molder GEO Plastics is establishing a presence on the East Coast through its purchase of a vacant industrial plant in Charlotte, N.C.

GEO paid $3 million for the building, which covers almost 58,000 square feet and previously was occupied by Jackson Tube Inc. The site had been vacant since early 2010.

The new plant is expected to begin production next month, making GEO's full line of products including wheels for roll-out carts, as well as recycling containers and recycling funnels. The plant will employ 15 at first, with the potential for that number to increase to 30 in three years.

MRC

Only 25% of consumed materials fall at single domestic producer of ABS resins - Plastik, Uzlovaya (Group of companies SIBUR). The deficit of materials in the market - 37.5 KT - was compensated by import supplies.

More than 50% of imported ABS resins in Russia fall at South Korean materials (Samsung and LG Chem). In 2010 consumption of materials from these producers doubled to 20 KT. Main volumes of supplies referred to the sector of electrical goods and car components.

According to Federal State Statistics Service data over January-November 2010, production of electrical goods, electrical and optical equipment compared to the same period in 2009 increased by 33.5%, while production of vehicles and equipment - up in 2.8 times.

More detailed analysis of production capacities and PS consumption by types, technologies and sectors for each producer is shown in the MRC Annual report PS and Styrene resins in Russia - 2010.

mrcplast.com

(ICIS) -- US polyethylene terephthalate (PET) prices rose by 3 cents/lb in January over December, on higher prices for feedstocks paraxylene (PX) and purified terephthalic acid (PTA), sources said on Thursday.

January US PET prices were assessed at 86.71-88.71 cents/lb ($1,912-1,956/tonne, ┬1,415-1,447/tonne) after the increases, according to ICIS.

One PET producer announced a second 3 cent/lb hike, effective in mid-January. However, sources said that the additional January increase was not industry-wide and would probably be seen only for sales above regular volumes.

Nominations for February PET were up by as much as 9 cents/lb, as sellers attempted to keep pace with surging feedstock values and protect threatened margins.

MRC

(Plastics News) -- Silgan Plastics Corp will close one of its two plants in Woodstock, Ill., by the end of 2011. The company notified employees Jan. 3 of the closure of the food container facility, Chief Financial Officer Robert Lewis said during a Jan. 20 telephone interview.

Silgan in 2010 licensed Kortec Inc.'s multilayer injection molding technology for packaging wet pet foods, fruit cups and microwaveable soup containers; Lewis said the Woodstock facility did not receive any of that equipment.

The 190,000-square-foot plant manufactured containers for clients including Nestle SA and Campbell's Soup Co.

Silgan also operates a 130,000-square-foot tube extrusion plant in Woodstock.

MRC