Plastics machinery: German producers╜ sales drop 30%

February 24 (plasteurope) -- Sales of plastics machinery made in Germany fell by 30% in 2009 to a production value of EUR 5.6 bn, according to an estimate by the plastics and rubber committee KuG in the machinery manufacturers association VDMA. Nevertheless, the setback against 2008 was less severe than feared last summer. On the basis of business development up to April 2009, the association last July predicted a sales slump of 40%.

Sales of plastics machinery to German customers were down 35%, foreign sales down by 28%, with sales to companies in the euro zone showing a somewhat steeper fall.

MRC

February 24 (plastemart) -- An already tight supply and demand balance in Europe ahs been aggravated by the refinery strikes at Frances' Total that have impacted around 36% of France's total propylene capacity, according to ICIS. The strike encompasses propylene producing fluid catalytic crackers (FCCs) at all five operational French refineries run by Total - Grandpuits, Donges, La Mede, Gonfreville and Feyzin. The sixth refinery at Dunkirk has been idled since September and has mainly contributed to the union action. Around 7,000 direct employees, suppliers and subcontractors at the refineries went on strike to demand restart of the Dunkirk site, likely to be shut down. Later the employees voted for open-ended strike, which was now threatening to engulf majority of France's propylene capacity since unions had called for solidarity from ExxonMobil and INEOS refinery employees. However, as of now, INEOS, ExxonMobil, LyondellBasell and oil refiner Petroplus are running their refineries as normal.

Market sources assume that the steam cracker linked to the Feyzin refinery has also been closed. Total is reported to have declared propylene force majeure at some of the sites, but this was not yet confirmed directly. This will further tighten the propylene supply in Europe at a time when imports also seem to be difficult because of a dearth of propylene globally. Some sources said that prices would be most definitely higher but largely theoretical since there would be no free volume. The refinery strikes are having a double effect on propylene by affecting upstream crude and naphtha prices as well as propylene availability itself.

An increase from the February's settlement at ┬875/ton was widely anticipated even before the latest constraints on supply, although the rise expected was more modest than last month's ┬85/ton. Now, some contract players were revising their ideas. Problems in France amid production problems at crackers in Germany and in the Netherlands, are expected to make contract discussions difficult.

MRC

February 24 (plastemart) -- France's Total Petrochemicals hopes to acquire a polystyrene facility in Feluy, Belgium, after current owner Polimeri announced plans to close the plant, as per European Plastics News. Total's decision to acquire the plant has been guided by concern about the ⌠social impact of Polimeri's decision. According to the proposed deal, Total would acquire the Polimeri facilities and the right to operate the production lines, with the exception of the EPS unit reactors. Total would continue to produce PS on behalf of Polimeri until the end of 2011 but would stop producing EPS by the end of September 2010.

MRC

High-density polyethylene (HDPE) imports were up 21% (to 8.24 kt). Half of HDPE imports were intended for the film extrusion sector. There was seasonal decrease in buying activity in the pipe-grade HDPE market. In January, pipe-grade feedstock imports dropped by 45% compared to December 2009.

Low-density polyethylene (LDPE) imports fell by 12% (to 7.40 kt) compared to the same period last year. At the same time, imports dropped by 21% compared to December 2009. There was a sharp decline in supply of polyethylene produced by Polymir of Belarus (by 50%).

At the beginning of the year supplies of Russian oil to Belarusian refineries were suspended, which was the reason of a serious decrease in LDPE output at Novopolotsk. The first signs of feedstock shortage emerged in mid-February in the Ukrainian market.

In January, linear low-density polyethylene (LLDPE) imports hiked by 40% (to 2.90 kt) compared to the same period last year. At the same time, imports fell by 39% compared to December 2009.

MRC

For more detailed information on the Ukrainian polyethylene market, see DataScope Report.

February 23 (yourindustrynews) -- Arkema announces a ┬ 150/ton increase for its Orevac functional polyolefins effective March 1st 2010 . This measure has been made necessary by the deterioration of margins in recent months, resulting from consecutive rises in raw material costs.

With their outstanding adhesive properties, Orevac polymers are used in the production of multilayer structures (polyethylene, polypropylene, polystyrene, polyamide, polyester, aluminium, steel, paper, etc.) primarily for packaging as well as industrial applications (pipe, pipeline, fuel tank, fuel line, etc.).

MRCMRC Reference

Arkema.

The share in the Russian market in 2008:

PVC - 0.2%;

EVA - 1.1%.

Annual sales growth in Russia, during the recent 5 years:

PVC - 69%;

PE - 121%.

Imports by polymers processing technologies:

coating;

cable extrusion