China's production of PTA to fall in April

(ICIS) -- China's production of purified terephthalic acid (PTA) will fall in April due to heavy turnarounds at plants, with some producers even bringing forward the maintenance schedule, due to limited availability of feedstock paraxylene (PX), industry sources said on Friday. Quake-related disruption to Japan's PX exports for a week now aggravated the tight supply in the market, causing price spikes that tugged at PTA values.

Spot PX prices surged to their highest level on record at USD 1.815/tonne (EUR 1.289/tonne) CFR Taiwan and/or CMP on Wednesday, as demand from PTA producers surged following a force majeure declaration on PX supply by Japan's JX Nippon Oil & Energy, according to ICIS.

Three of the company's PX facilities, with a combined capacity of 950 KT, have been knocked down by a massive quake and tsunami that hit the northern part of the country on 11 March. Meanwhile, spot PTA prices soared to a 16-year high of USD 1,500-1,517/tonne CFR (cost and freight) China Main Port (CMP) on Thursday, according to ICIS.

Prices will likely continue their uptrend in the coming weeks, as supply will become tight amid a slew of turnarounds in China, as well as in South Korea and Taiwan, market sources said. (Please see table below)

PTA output will be cut by about 264 KT, thereby cutting the requirement for feedstock PX by 177 KT, based on industry estimates.

MRC

MOSCOW (MRC) -- Earthquakes in Japan may result in deficit of paraxylene in the region and affect the world balance, according to MRC analysts.

Japan is one of the biggest Asian exporter of paraxylene, main material for terephtalic acid (TPA) and PET. Over 2010 Japan has produced about 3.2 mln of paraxylene, 700 KT out of which were consumed within the country and about 2.5 mln were exported.

Capacity of the Russian market of PET makes about 600 KTa. Capacities of the enterprises (Sibur-PETF, Senegh, Polief) allow to cover about half of total consumption. About 300 KTa fall at imports from South Korea, China, Belorussia and some other countries. Traditional for the Russian market suppliers have already declared the decrease of PET production in connection with paraxylene deficit.

Over a week export quotations for PET in Asia have grown, on average, by USD 100/mt and exceeded the level of USD 1.950/mt, FOB. Next week further growth of granulate prices is expected.

mrcplast.com

(Plastics Today) -- A newly introduced extrusion line for thin-walled polyethylene tubes, such as the squeeze tubes used to package cosmetics, gives processors the flexibility to extrude a wide range of tube sizes, configurations (1-5 layers) and compounds, and even to quickly change from one tube specification to another.

Manufactured and marketed by extrusion systems supplier Boston Matthews (Worcestershire, England and Norwood, NJ), the new range of medium speed "Squeeze Tube" extrusion lines is part of the range of extrusion lines designed by the company specifically for the production of thin walled PE tubes. Machines are available sized to extrude tube sized from 15-60 mm.

Boston Matthews developed the new lines with some of its customers, squeeze tube manufacturers from around the world who already use the company's high-speed Squeeze Tube lines, which it introduced some six year ago. The new lines were developed to help processors of these plastic tubes meet the demands to manufacture a more diverse range of tube sizes, specifications, blends and colors.

MRC

(Celanese) -- Celanese Corporation, a global technology and specialty materials company and a North American leader in Ethylene Vinyl Acetate (EVA) polymers, announced that its subsidiary, Celanese EVA Performance Polymers Inc., will increase the price of all grades of Ateva EVA by USD 0.08/pound and all grades of LDPE by USD 0.06/pound effective April 15, 2011, or as contracts allow.

Celanese Corporation is a global technology leader in the production of specialty materials and chemical products which are used in most major industries and consumer applications. Our products, essential to everyday living, are manufactured in North America, Europe and Asia. Known for operational excellence, sustainability and premier safety performance, Celanese delivers value to customers around the globe with best-in-class technologies.

MRC

(Lanxess) -- Lanxess achieved an outstanding set of results in 2010 due to its strategic set-up and the general recovery in business. Sales in 2010 rose 41 percent year-on-year to EUR 7.1 billion, driven by strong volume growth and price increases. EBITDA pre exceptionals nearly doubled to EUR 918 million. Lanxess had forecast about EUR 900 million EBITDA pre exceptionals for 2010. The EBITDA margin pre exceptionals for the full year was 12.9 percent compared to 9.2 percent in 2009. Net income rose nearly tenfold to EUR 379 million.

⌠Our growth story is set to continue after an outstanding 2010 and an excellent start to 2011, said Chief Executive Officer Axel C. Heitmann at annual press conference in Dusseldorf. Growth will be driven by our focus on emerging markets and premium products serving the global megatrends mobility, urbanization, agriculture and water.

Lanxess' core business comprises the development, manufacture and sale of plastics, rubber, specialty chemicals and intermediates. In addition, it supports its customers in developing and implementing made-to-measure system solutions.

MRC