DSM announces Stanyl price increase

(DSM) -- Due to unprecedented and continued escalations in key raw materials costs (such as adipic, glass fiber, flame retardants and others), DSM Engineering Plastics is forced to increase prices for its Stanyl product range on top of 2010 price increases.

DSM will increase its prices for Flame retardant grades by 300 ┬/t or 450 $/tonne and non Flame retardant grades by a minimum 200 ┬/tonne or 270 $/tonne latest by 1 March 2011. These increases are on top of those already implemented during 2010.

DSM remains committed to continued implementation of cost-saving initiatives, however escalating costs necessitate this additional increase to sustain DSM Engineering Plastics' position as an innovative and reliable supplier.

MRC

(ICIS) -- Asian expandable polystyrene (EPS) makers have raised their offers to around $1,600/tonne (┬1,184/tonne) this week, as a continued spike in feedstock costs are squeezing their margins, industry sources said on Thursday.

The offers were about $20-30/tonne higher than last week's prices of $1,570-1,580/tonne CFR (cost and freight) China, but weak demand would not allow the price increase to be implemented, they said.

The spread between EPS and feedstock styrene monomer (SM) prices had narrowed to less than $150/tonne, against a generally acceptable gap of $180/tonne that will allow EPS producers to generate decent margins.

SM prices were quoted at above $1,450/tonne CFR China this week, market sources said.

EPS prices, meanwhile, had been stagnant and demand lacklustre even after the key Chinese market re-opened for business following a week-long Lunar New Year holidays on 2-8 February.

MRC

(ICIS) -- US propylene contracts for February settled flat, market sources said on Wednesday, confirming that a hold-out producer had agreed to the rollover. The settlement kept polymer grade propylene (PGP) at 77.50 cents/lb ($1,709/tonne, ┬1,265/tonne).

Two US producers had originally nominated increases of 3.00 cents/lb for PGP, but a drop in spot prices in the second half of January undermined the initiatives.

Spot PGP for February delivery traded at 75.00 cents/lb in the last week of January, down from 75.50 cents/lb two weeks earlier. February PGP was offered on Wednesday at 73.00 cents/lb with no bids.

Chemical grade propylene (CGP) also settled flat at 74.00 cents/lb, despite two proposed increases of 5.00 cents/lb, but the market remained split because a third producer held its contracts at 70.00 cents/lb as part of a two-month settlement agreed upon in January.

The rollover for US propylene in February followed a significant increase in January, when PGP contracts rose by 17.00 cents/lb and CGP by 11.00 and 15.00 cents/lb.

MRC

(ICIS) -- AkzoNobel swung to a net income of ┬162m ($219m) in the fourth quarter of 2010, compared with a loss of ┬60m in the same period a year earlier, on the back of higher demand, the Dutch paints and coatings company said on Thursday.

Revenue in the fourth quarter jumped 17% year on year to ┬3.62bn, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose 3% to ┬377m, AkzoNobel said.

Revenue growth was driven by a 6% increase in sales volume across the firm's business areas as demand recovered, particularly in high-growth markets, the company said.

AkzoNobel's decorative paints segment reported an 11% year-on-year increase in fourth quarter revenue to ┬1.14bn, primarily driven by a robust recovery in Asia and Latin America and a positive foreign currency translation effect.

Meanwhile, AkzoNobel said that a broad recovery in demand, combined with the success of its strategic growth platforms, had led to a volume increase across nearly all business lines in its specialty chemicals portfolio, with revenue during the fourth quarter of 2010 growing 19% year on year to ┬1.26bn.

MRC

MOSCOW (MRC) -- Import supplies of PP to the Russian market in January reduced more than twice and made 13.3 KT, according to MRC DataScope.

Expectedly serious reduction of supplies fell at raffia from Turkmenistan and Ukraine. In the first case the import supplies last month fell down to 3.9 KT while in December this parameter made more than 9 KT. In the second case in terms of limited production of injected PP-homo by the Russian producers, companies counted on purchasing of injection-molded grades in Ukraine.
Now the Russian market of raffia is surplus. The supplies to the domestic market from the Russian producers are more than efficient despite non-considerable production problems at some enterprises. Market demand for raffia is still not high which is traditional for February. The prices from the beginning of the year grew up to the level of 58.600 - 59.500 RUB./t, including VAT, FCA.

Expectedly in January the supplies of pipe propylene co-polymers from South Korea as well as from Europe reduced more than twice. Also the imports of injection-molded copolymers of propylene reduced after December peak. In February a considerable swing in imports is not expected, according to preliminary data, PP supplies form the external suppliers will grow not more than by 20%.

MRC