China spot polysilicon may spike on tight supply

(ICIS) -- Spot polysilicon material in China is expected to fetch higher prices, following stronger deals just days before the Lunar New Year, as a burgeoning domestic solar market saps supply, traders said on Monday.

A recent 20-tonne cargo was done at yuan (CNY) 700,000/tonne ($106/tonne), or equivalent to $90.40/kg (┬66.90/tonne) ex-works, up from a previous spot deal that was sealed at CNY630,000/tonne, or equivalent to $81.70/kg ex-works, traders said.

Meanwhile, contract polysilicon deals ranged from $81-82/kg in China, they said. The bulk of polysilicon deals were agreed on a term basis, leaving spot supply scarce at a time of robust demand from solar module makers in China, traders said.

Polysilicon is the raw material used to make cells in solar panels.

The Lunar New Year will start on Thursday, with businesses across China closing for the festive holidays until next week.

MRC

(Arabian Oil and Gas) -- Abu Dhabi based plastics solutions provider Borouge has awarded a contract worth US$169 million to Hyundai Engineering and Construction of South Korea to build a cross-linkable polyethylene (XLPE) unit at its petrochemical plant in Ruwais, Abu Dhabi. With an annual capacity of 80,000 tonnes, the unit is an added-value complement to the low density polyethylene (LDPE) unit, enabling the manufacture of innovative plastics solutions for low to high voltage energy cables.

This is the final major contract to be awarded for the Borouge 3 mega-expansion project already underway in Abu Dhabi in the UAE. Hyundai Engineering and Construction are also providing the utilities and offsite facilities for the project.

When fully operational in mid-2014, Borouge 3 will more than double the plant's annual capacity to 4.5 million tonnes and create the largest integrated polyolefins plant in the world. Together with Borealis, Borouge aims to be the leading reliable long-term supplier of polymers to the global wire and cable infrastructure market.

MRC

(ICIS)-- European polyethylene terephthalate (PET) supply is under threat following the third declaration of force majeure upstream at BP's Geel, Belgium, purified terephthalate (PTA) plant, sources said on Friday.

⌠We are risking going on force majeure on PET because we may not be able to supply our contract customers, a PET producer said.

Another PET producer acknowledged that it too would have to run at ⌠very low capacity, lower even than it had been during BP's first two forces majeures.

A BP spokesman explained that the third force majeure was announced on Thursday on PTA 3 because of an agitator problem. For the time being, the unit was producing at full rates.

Market sources were preparing for further cutbacks, however.

⌠If PTA 3 does have problems we would need to come down to 25% [allocation]. It depends on how it performs this week and into next week, the BP spokesman said.

If BP withdrew such an important percentage of production from the European market in December, January and possibly February, the impact would hit the whole chain, another PTA producer said.

MRC

(PLASTICS NEWS ) -- A pair of Cleveland-based private equity firms and plastics industry veteran Chris Scarazzo have combined to buy a pair of related plastics businesses in Latrobe, Pennsylvania. The firms being acquired are blow molder Premium Molding Inc. and its sister firm, blow molding toolmaker Accu-Mold Inc.

No purchase price was disclosed. Both Premium and Accu-Mold are housed at a 115,000 square foot location in Latrobe. The combined businesses have been renamed Premium Plastic Solutions LLC.

Premium makes parts from high density polyethylene and other resins for numerous markets, including medical waste, automotive, safety equipment, lawn and garden, recreational equipment and large capacity potable water bottles.

MRC

(PRW) -- Global car parts group International Automotive Components Group is reported to be preparing to resume production later this year at a former interior components plant in Plzen Prestice, Czech Republic.

According to a Czech environmental impact assessment, the company intends to install new injection molding machines in the former plant. There, it will turn out polypropylene door panel parts for vehicle builders Skoda and Volkswagen, reports the East European Nov-Ost industry news portal.

IAC wants to add new injection molding capacity at the interior trim plant where it already has 4-6 injection presses. IAC also plans to add equipment for foaming and cutting semi-rigid polyurethane blocks, which will be used to make car ceiling panels.

IAC plans re-launch production in Prestice in March, and it expects to reach full capacity by May 2012. The site will employ 160.

MRC