Asia ACN may hit $2,500/tonne on tight supply

(ICIS) -- Dwindling supply and rising costs of feedstock propylene (C3) may soon push Asian acrylonitrile (ACN) prices to $2,500/tonne (┬1,825/tonne), the highest level since May 2010, industry sources said on Tuesday.

Spot ACN prices were last assessed at $2,380-2,420/tonne CFR northeast (NE) Asia and at $2,400-2,450/tonne CFR India on 21 January 2011, according to ICIS data.

In May last year, prices were at $2,400-2,450/tonne CFR NE Asia and at $2,450-2,500/tonne CFR India, ICIS data showed.

⌠The customers may have no choice but to pay $2,500/tonne if they need to secure any cargo as supply is very tight, said a trader.

China and India are major importers of ACN, the feedstock used in the production of acrylic fibre (AF), which is used in clothing and home furnishings, such as carpets, upholstery, cushions and blankets.

China imported 42,000 tonnes of ACN in December 2010, more than 40% of which were secured from the US Gulf, according to Chinese traders. India imports around 10,000 tonnes of ACN each month.

MRC

(ICIS) -- US ethylene margins were mostly steady in the week ended 21 January after higher spot prices offset an increase in feedstock costs, the ICIS margin report showed on Monday.

Using ethane as a feedstock, ethylene spot margins were at 17.63 cents/lb ($389/tonne, ┬284/tonne) last week, virtually unchanged from 17.68 cents/lb in the week ended 14 January.

Margins moved sideways as spot ethylene prices rose in tandem with higher ethane values.

Ethylene for January delivery traded at 42.750-43.125 cents/lb last week, up from 41.500-42.250 cents/lb a week earlier.

Meanwhile, ethane ended Friday at around 64 cents/gal, up from 60 cents/gal a week earlier.

US ethylene bid/offers for January were steady on Monday at 42.50-44.00 cents/lb. Ethane prices were also steady at 64.00-64.25 cents/gal.

MRC

MOSCOW (MRC) -- Summarizing 2010, consumption of PVC-E in Russia made 113 KT which was 7% more than that in 2008 and 37% more than consumption in 2009, according to MRC Annual Report.

In 2010 total growth of the Russian market of PVC-E was stipulated by recovered demand for stock materials from converters, particularly in the sector of flooring.

Consumption in the sector of flooring (production of linoleum, wallpapers, imitation leather) made 104 KT in 2010 which was 14 KT more than indices of 2008 and 30 KT more than those of 2009.

Such tendency resulted in increased shares of imported materials in the total consumption of main suppliers such as Vinnolit, Solvin, Ineos ChlorVinyls, Vestolit.

Growth of import supplies of the emulsion to Russia in 2010 made record over the last ten years 93 KT which was by one third more than imports in 2009 and by fifth more than those in 2008.

Domestic production of PVC-E in Russia kept the last year volumes. In 2010 Himprom (Volgograd) produced almost 22 KT, 2 KT from which were exported.

More detailed analysis of the PVC market and its expected development is presented in MRC annual reports.

MRC

(ICIS) -- Styron sold its 200,000 tonne/year polystyrene (PS) plant in Guaruja, Sao Paulo, to Gaxetas e Perfis do Brasil, a company associated with the Unigel group, market sources said on Monday.

A Styron spokesperson confirmed the PS facility was sold on 31 December, but the deal excluded a latex plant at the site. Other details of the sale were not disclosed.

There was much speculation about the future of the PS facility. Styron had idled the plant indefinitely on 23 August 2010, presumably to pare losses while looking for a buyer. PS sales in Brazil and other South American countries continued until stocks ran out.

Unigel supplied styrene monomer (SM) to the plant when it was running, making the company one of the most likely candidates to purchase and restart the facility.

Market observers also said this could help Unigel enter the specialty plastics market with products such as styrene acrylonitrile (SAN).

MRC

(prw) -- Italian plastics processor trade association Unionplast is ramping up its campaign against the new national law banning non-biodegradable shopping bags. At the same time, proponents of oxy-degradable plastics have written to the Italian government complaining against a ruling last week that such materials cannot be considered biodegradable.

The association's director, Enrico Chialchia, told PRW that Italy has until now been largely self-sufficient in plastics bags, with imports accounting for only around ten percent of the total market, estimated at over 220,000 tonnes/yr. He estimates that the sector encompasses some 250 companies, employing around 5000 people, many of them in the south of the country, where unemployment levels are the highest. A large number of these companies have already laid off staff, he says, or have actually shut down.

Unionplast is calling for the government to reconsider its decision, pointing out, among other things, that the new law knocks a big hole in attempts to promote plastics recycling in Italy. It advocates increased use of recyclate in bags. It also points out that many Italian consumers have adopted the habit of using polyethylene bags several times, using them also as containers for household plastics packaging rubbish.

MRC