European spot butadiene prices are rocketing because of strong demand

(ICIS) -- European spot butadiene (BD) prices are rocketing because of strong demand in an extremely tight global marketplace, market sources said on Friday. Spot export prices were being pegged from EUR 2.000/t (USD 2.857/t) to as much as EUR 2.200/t FOB (free on board) ARA (Amsterdam, Rotterdam, Antwerp), well above the April monthly contract price (MCP) settlement of EUR 1.690/t FD (free delivered) NWE (northwest Europe).


Three European BD producers said that despite traders offering these prices, low inventory levels and strong incremental demand from domestic contract consumers meant that free volumes were virtually non-existent.


Technical problems at two sites in Germany are impacting on a market that is already very snug because of a planned maintenance shutdown at an extraction unit in the Netherlands and constraints on BD feedstock crude C4 output due to cracker turnarounds and light feed cracking.


Domestic European consumers are attempting to maximise their contract volumes from some suppliers to manage the shortfalls resulting from the unplanned issues at other suppliers. However, a consumer said: ⌠So far we are still able to find volumes, it's tough, but we find volumes. We are missing only a small part of our regular tonnes."


Additionally, export demand from the US is very strong. Already a net importer of crude C4 and BD, it has been heaviliy impacted by the loss of supply from Europe and Libya - an important crude C4 exporter.


MRC

LyondellBasell nominated a 10 cent/lb increase for April PP contracts

(ICIS) -- A major US polypropylene (PP) producer nominated a 10 cent/lb increase for April contracts, aiming to keep pace with a potential increase in propylene monomer prices, sources said on Friday. The 10 cent/lb (USD 220/t, EUR 154/t) increase nomination was at odds with another producer's announcement to raise April prices by 2 cents/lb in addition to the monomer price increase.


Most US domestic PP contracts are linked to polymer grade propylene (PGP) benchmarks, and PGP has been nominated up 10-11 cents/lb for April.


In mid March, resin buyers and sellers forecast April PGP and PP to increase by 5-8 cents/lb, but tighter propylene supplies have caused expectations to firm.


A PP producer said the shutdown of an Enterprise splitter was contributing to the propylene shortage. Splitters convert refinery grade propylene (RGP) into PGP.


PP demand will weaken with the higher prices in April, but unlike previous price spikes, the market could stabilise at the higher levels, a trader said.


MRC

Emaar announced construction of PP plant at KAEC

(US-SABC) -- Emaar, the Economic City (Emaar), has announced the commencement of construction of a new polypropylene manufacturing facility in the industrial area of King Abdullah Economic City (KAEC). U.S. industrial packaging manufacturer Greif, Inc., through a joint venture with the National Scientific Company of Saudi Arabia, is building the facility, which will produce polypropylene woven fabric for use in flexible intermediate bulk containers for the packaging industry. The facility will be more than 2.02 mln square feet (188.000 square meters) and is scheduled to begin production in 2012 and be operating at full capacity by 2016. Emaar is managing the planning and development of KAEC, the 65 square-mile (168 square-kilometer) city which is scheduled for completion in 2029.


MRC

Reliance Industries Limited to establish JV with D. E. Shaw group

(Reliance Industries) -- Reliance Industries Limited and the D. E. Shaw group announced
today that they have agreed to establish a joint venture to build a leading financial services
business in India. This joint venture will incorporate the D. E. Shaw group's investment and
technology expertise with Reliance's operational knowledge and extensive presence across
India to offer a comprehensive array of financial services to the Indian marketplace.


Reliance is delighted to partner with the D.E. Shaw group in the financial services domain.
The D.E. Shaw group is a natural partner for Reliance. Together, we look forward to
participating in the growing Indian financial services sector, said Mr. Mukesh Ambani, the
Chairman and Managing Director of Reliance Industries Limited.


⌠This joint venture will draw upon the core competencies of both firms to develop a platform
that can serve the growing needs of Indian companies and individuals, said Anil Chawla, a
Managing Director and head of the D. E. Shaw group's private equity activities in India.


The D. E. Shaw group is a global investment and technology development firm with more than
1.300 employees; approximately USD 20 bln in aggregate investment capital as of March 1,
2011; and offices in North America, Europe, the Middle East, and Asia. Since its organization
in 1988, the firm has earned an international reputation for financial innovation, technological
leadership, and an extraordinarily distinguished staff.


MRC

Chemplast Sanmar to increase the production capcity of its PVC resin plant at Cuddalore

(Indian Chemical News) -- Chemplast Sanmar has sought the Ministry of Environment and Forest's clearance for increasing the production capacity of its PVC resin plant at Cuddalore from 170.000 TPA to 226.000 TPA. The company earlier appointed Business Consulting Group (BCG) to assess the domestic suspension of PVC market. The survey indicated that the future demand for PVC in India is expected to grow at the rate of 11 percent or more.


MRC