PVC price for the Russian converters up to 50.000 RUB/t in March

MOSCOW (MRC) -- In February PVC prices expectedly grew for separate market players. In March, taking into account the present situation, Russian converters may face the resin price as 49.000 - 50.000 RUB/t, according to MRC analysts.

In early January international trade companies lowered export prices for remaining volumes of December quotes of the North American PVC. This brought hope for even lower prices for suspension from USA to be shipped in February. But the prices for February release, on the contrary, returned to December level, at that all exports quotes were sold out actually within two weeks. The prices for March releases will be called only late February. Only some Russian companies could contract PVC for February dispatch.

Russian companies tried to compensate impossibility to contract suspension in North America by bulk PVC purchases in China. January level of prices for the Chinese acetylene PVC remained on the level of USD 1.020 - 1.040/t, DAF Dostyk. But taking into account growing cost of cargo railway transportation in Russian and Kazakhstan from January 1, 2011, the price for acetylene PVC from Russian consumer will make about 48.000 - 48.500 RUB/t, VAT included, СРТ Moscow. Now China celebrates Lunar NewYear but it is highly expected that after holidays Chinese producers will rise export prices for resin against continuing growth of oil prices.

Low demand in January didn't allow European producers to rise PVC prices. And only in February suspension producers from Europe could reach the growth of export prices by EUR 40-50/t to the level of EUR 820 - 850/t, FCA. At the same time contract price for ethylene in Europe over last two months grew by EUR 130/t, which involved growth of resin to the level of EUR 65/t. It stands to mention that many producers limited sales volumes in February expecting further price hike in March. Strengthening of euro rate against dollar and ruble as well as growth of exports quotes made European suspension pretty expensive for Russian companies: about 48.500 - 50.000 RUB/t, VAT included, СРТ Moscow.

Sayanskhimplast expectedly raised the contract price for PVC February release by 2.000 RUB/t, having levelled contract prices for the Russian suspension from three biggest producers to 47.000 - 48.000 RUB/t, VAT included, СРТ Moscow. Purchasing activity in the spot market is not that high, American PVC is offered on average for 46.000 - 46.500 RUB/t, VAT included, СРТ Moscow. It is not excluded that taking into account the price for the Chinese resin and logistics, soon we can expect correction of North American PVC prices.

Continuous oil price rises as well as current level of prices for PVC in the external markets make it possible to suppose that in March suspension prices in the Russian market may reach the level of 49.000 - 50.000 RUB/t, VAT included, СРТ Moscow.

More detailed information on PVC price forecast is presented in "Price forecast for PVC in Russia".

MRC

(DSM) -- DSM Engineering Plastics has reached an agreement for the sale of its Yparex adhesives business to RESIN (Products & Technology) B.V., a Netherlands-based compounding company. The sale is expected to close in Q1 2011, subject to regulatory and other customary approvals and notifications.

The Yparex business produces adhesive tie-layer resins that are extrudable maleic anhydride-(MaH)-modified and functionalized polyolefin compounds. These are used in numerous industrial applications such as sanitary and heating pipes, floor and wall heating (or cooling), copper and steel pipe coating, film applications, cables and cladding panels.

The Yparex business will be positioned as an independent company, headquartered on Chemelot Campus in Geleen, NL and its current four employees will transfer to the new owner.

MRC

(Plastemart) -- Chevron Phillips Chemical Co. plans to flare gas at its Port Arthur site in Texas because its customer Valero Energy Corp., (which uses the fuel) will shut units for maintenance, according to a filing with state regulators. ⌠Valero is planning to shut down all but 3 or 4 of its operating units starting today, according to the filing with the Texas Commission on Environmental Quality. The filing didn't say which plants would be idled.

MRC

(Plastemart) -- Bayer MaterialScience has now inaugurated its Colour Competence and Design Center in Greater Noida, near New Delhi. This new center provides products and solutions for polycarbonate compounds, ranging from color matching and small-scale production, to the broad range of technical services to support injection-molding and compounding processes. This enables customers to adapt quickly to fast-evolving trends, and explore new options for color, surfaces, geometries and design, while leveraging Bayer MaterialScience's global expertise and extensive know-how of the local markets.

MRC

(Plastics News) -- Texas environmental officials searched Shintech Inc.'s PVC plant in Freeport, Texas, on Jan. 26 after receiving a complaint that the plant allegedly was emptying unsafe wastewater into the nearby Brazos River.

Officials seized numerous items from the plant during the search, including log books, wastewater reports and personnel files. The plant ranks as North America's largest PVC production facility, with annual capacity of more than 3 billion pounds.

In a Jan. 28 news release, officials with Houston-based Shintech said that the firm ⌠continues to cooperate with authorities in their investigation of certain aspects of our Freeport manufacturing operations.

The search warrant was issued after an investigator with the Texas Commission on Environmental Quality met with four individuals ≈ a former employee and three others ⌠closely associated with Shintech ≈ who claimed that plant management had bypassed pH and turbidity meters, allowing untreated wastewater to discharge into a channel that led to the Brazos River.

MRC