Dow Chemical and Milliken launched clear polypropylene resins

(Thomas Net) -- The Dow Chemical Company and Milliken & Company have announced the launch of AGILITY NX clear polypropylene (PP) resins, a next-generation family of PP offering excellent aesthetics, excellent functionality and enhanced operational efficiencies for greater impact on the sustainability profile of PP. The announcement was made at the 2011 International Home & Housewares Show in Chicago.


The new AGILITY NX resins bring together Dow's breakthrough polymer design and production capabilities for random copolymer PP resins with Milliken's innovative Millad NX(TM) 8000 clarifying agent. These new resins are suitable for clear, injection-molded food and consumer storage containers, thin-wall retail food packaging and other demanding consumer goods applications.


AGILITY NX is the first family of products in Dow's new AGILITY portfolio of high-performance polyolefins, engineered to improve functionality, efficiency and aesthetics.


MRC

Complicated supply chains cloud effect on US chems

(ICIS) -- Complicated supply chains and the vagaries of energy policy cloud the effects that the multiple Japanese disasters will have on the US chemicals industry, an economist said on Thursday. A massive 9.0-magnitude earthquake and tsunami hit Japan on Friday. The disasters damaged the cooling systems at several nuclear reactors at the Fukishima-Daiichi complex.


The damage led to explosions and fires at the reactors, and workers are still struggling to avert a major nuclear disaster. However, the crisis in Japan may have little direct effect on chemical trade with the US because the volume is relatively small, said Kevin Swift, chief economist for the American Chemistry Council (ACC).


The US chemical industry is expected to have revenues of more than USD 720bn (EUR 518bn) in 2010, Swift said.


By contrast, US chemical exports to Japan were only USD 10bn in 2010, he said. That accounted for just 3% of Japanese consumption.


In fact, Japan's chemical industry mainly serves its manufacturing customers, Swift said. "The Japanese chemical industry is relatively balanced."


Out of all the US exports to Japan, about 40% are basic industrial chemicals, Swift said. Another 13% are downstream products such as resins, rubber and fibres. Pharmaceuticals make up 32%, he said. Agricultural chemicals, specialties, consumer products and other chemicals make up the rest. The indirect effects of the Japanese earthquake and tsunami are harder to measure, Swift said. For example, Germany is shutting down seven of its 17 nuclear plants for a safety review.


MRC

Asian petrochemicals are feeling the effects of Japanese production losses

(ICIS) -- Asian petrochemicals are feeling the effects of Japanese production losses on Friday, a week after the massive earthquake and tsunami caused widespread devastation. Regional supply of paraxylene (PX) was notably tighter, with three Japanese facilities owned by Tokyo-headquartered JX Nippon Oil & Energy shut since 11 March.


Spot PX prices pulled back slightly on Friday, following sharp gains through the middle of the week, as JX Nippon Oil declared a force majeure on supply. Japan, a major PX exporter in the region, supplied China with 1m tonnes of the material in 2010.


Meanwhile, the main downstream market for Asian PX - purified terephthalic acid (PTA) - has started to suffer from tighter PX supply, with some Chinese producers bringing forward planned turnarounds at plants.


Supply of methyl ethyl ketone (MEK) in Asia is also being affected by the shutdown of Japan-based Maruzen Petrochemical's 170 KTa facility in Chiba, 40km (25 miles) east of Tokyo.


The facility, damaged by fire after the 9.0-magnitude earthquake and ensuing tsunami, seems unlikely to restart soon. Maruzen Petrochemical has cancelled its MEK shipments, originally due to be loaded this month, its customers said.


A few shut-down plants are slowly coming back on stream in the northeast of Japan, including two of the six shut refineries: a 175.000 bbl/day refinery in Chiba owned by Kyokuto Petroleum Industries - a joint venture between US major ExxonMobil and Japan's Mitsui Oil - and TonenGeneral Sekiyu's 335.000 bbl/day unit in Kawasaki.


MRC

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

Earthquakes in Japan to affect PET market

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.


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