Delayed deliveries of polymers to Saint-Petersburg port aren't critical for the Russian market

MOSCOW (MRC) -- This winter weather conditions resulted in obstruct line navigation in the port of Saint-Petersburg. This circumstances haven't resulted yet in serious problems for the Russian market of polymers, according to MRC analysts.

In the eastern part of Gulf of Finland long-term low temperatures caused thick ice cover. Ice movement in the Eastern direction increases ice concentration and ridging. In some cases time spent for negotiation on the way to Saint-Petersburg reaches 10 days while, on average, it doesn't exceed 10 hours. Increased time of navigation resulted in serious overloading of port terminals.

Port of Saint-Petersburg is one of the most popular delivery points for volume polymers for some reasons. Last year about 100 KT from 350 KT of import PVC-S were shipped through this port. Over two months this year about 19 KT of resin from North America have been shipped through port of Saint-Petersburg. The second popular polymer for the Russian import is HIPS whose imports through this port in 2010 made about 47% from total number of imports. The share of linear polyethylene coming through this port makes about 15% from overall imports.

As per market players, current delays in deliveries through port of Saint-Petersburg aren't critical for the market. Many companies have insurance stocks of polymers, also not high demand for finished goods, in particular made of PVC, limits consumption.

MRC

(Arabian Oil and Gas) -- Polysilicon Technology Company (PTC) of Saudi Arabia announced recently that it has signed a USD 378 mln Lump Sum Turn Key Engineering, Procurement and Construction (LSTK EPC) contract for Phase 1 of its Polysilicon Plant with Hyundai Engineering Company and KCC Engineering and Construction Corporation.

The plant will be located in Al Jubail Industrial City 2, Saudi Arabia, and will have an initial production capacity of 3.350 metric tonnes of Solar Grade Polysilicon. PTC has selected the most innovative and competitive technology allowing it to produce high purity polysilicon (+ 9ns). Polysilicon is the main raw material used in the solar industry which is then converted into ingot, wafers and then into solar cells that are put into panels in order to generate electricity from the sun.

Polysilicon Technology Company is a 50:50 JV between Mutajadedah Energy Company (MEC) of Saudi Arabia and KCC Corporation of Korea (KCC). KCC is a construction and fine chemicals company and a global producer of polysilicon. MEC is a local Saudi Company owned by Swicorp Joussour Company (SJC) and Chemical Development Company (CDC) incorporated to invest across the solar energy value chain in Saudi Arabia.

MRC

Styrodur HT stays dimensionally stable even with high ambient temperatures and with high solar radiation. BASF offers the new insulation material at nominal compressive strengths of 300 and 600 kPa. Styrodur HT is particularly suitable for inverted flat roofs subject to heavy loads, for insulating hot water tanks (including those in contact with the ground), for various insulation applications in solar technology and for all special insulation applications with hot water which are exposed to pressure and moisture. Thus, the service life of these applications is considerably increased.

MRC

(ICIS) -- Fears surrounding a nuclear meltdown and persistent aftershocks in Japan continued to cause disruption to petrochemicals on Wednesday, following the massive quake and tsunami that struck the country on 11 March.

Many refineries and petrochemical plants in the region have been forced to shut since last Friday, in turn causing a domestic shortfall in fuel, power and feedstocks.

As a result, Japan is seeking prompt supplies of fuel to run its power plants and plug a severe domestic shortfall, after about 22% of its refining capacity was shut down in the aftermath of the earthquake. Energy giant JX Group has terminated exports of oil products to cater to domestic demand, while operations at most oil terminals in northeastern Japan are shut down.

Japan's Shin-Etsu shut its 550,000 tonne/year polyvinyl chloride (PVC) plant at Kashima after the earthquake, and this is expected to strain PVC supply from the country. Japan Polyethylene's polyethylene (PE) plants at Kashima and Kawasaki are also down.

Asahi Glass Co (AGC) shut its caustic soda plants at Chiba and Kashima after they were damaged in the earthquake, while Japan Polypropylene's production site at Kashima was badly affected by the tsunami that followed.

Meanwhile, Japanese producers might have to declare force majeure (FM) on caprolactam (capro) due to possible feedstock and power shortages, which has sparked panic buying of spot capro by downstream nylon makers in Taiwan, sources said.

MRC

(ICIS) -- Olefins shipments from Japan this month have been cancelled as some naphtha crackers in the country remain shut about a week after a massive earthquake and tsunami hit the northern part of the country, market sources said on Thursday. At least 15,000 tonnes of propylene cargoes and around 10,000 tonnes of ethylene shipments were affected, traders estimated.

Mitsubishi Chemical's two crackers in Kashima, along with Maruzen Petrochemicals' 520,000 tonne/year ethylene plant in Chiba, remain off line.

JX Nippon Oil and Energy's 460,000 tonne/year cracker and an olefins conversion unit (OCU), which can produce 140,000 tonnes/year of propylene, in Kawasaki are still shut, market sources said.

On the other hand, Mitsui Chemicals has increased the operating rate at its 617,000 tonne/year cracker in Chiba to close to 100% after earlier reducing output in the wake of the disaster, a company source said.

Japan exported around 480,000 tonnes of ethylene and 700,000 tonnes of propylene in 2010, according to estimates from traders.

MRC