Sinopec Maoming ethylene plant sees an improvement in output

March 24 (plastemart) -- Production at Sinopec Maoming Petrochemical Corp's ethylene facility was at a standstill for a period of two months. The ethylene facility was shut for regular maintenance and equipment repairs in January and February, resulting in large revenue loss. The company lost production of 19,000 tons of ethylene and suffered a loss in profits of 150 mln yuan. The facility has restarted after the shutdown. After revamp, Sinopec Maoming aims to reach a record-high monthly production of 100,000 tons of ethylene in March. This rebound is fueled by the recovery of the manufacturing industry in the Pearl River Delta.

Fifteen new storage tanks with capacity of 125,000 cu m of oil will hold a combined 2 million tons of crude oil by H2-2011, doubling storage in Maoming to 4 mln tons. The expanded storage capacity will help China ride out crude oil price fluctuations and aid in securing petroleum supply in Guangdong province, a key manufacturing hubs.

The comprehensive facility includes a modern dock, crude oil loading and unloading at sea and a railway transport system.

MRC

Since the beginning of February, HDPE prices in Russia have not changed seriously and vary within the range of RUB50.000-51.500/mt, including VAT, FCA. The most serious oversupply is observed in the markets of injection moulding and blown HDPE; demand for pipe-grade polyethylene is still low.

Last year, Russian producers were exporting excess polyethylene volumes. However, weak demand in foreign markets led to the decrease in exports in February down to 14.7 kt.

HDPE demand is also very weak in Europe. In March, European producers failed to raise contract prices. Producers might cut down output in April to balance the market.

The Asian HDPE market is undergoing a depression period. Demand for imported polyethylene is at a nearly zero level in many regional markets; needs are fully met by domestic production. At the beginning of the month, prices fell by USD50-80/mt.

MRC

For more detailed information on the polyethylene market see Price Report.

March 23 (plasteurope) -- The new olefine and polyolefine complex operated by Borouge is set to begin operations in mid-2010, as planned. The joint venture between Borealis and the Abu Dhabi National Oil Company will triple the capacity of Borouge's Ruwais (UAE) complex to 2m t/y of PE and PP.

With capacities of 1.4m t/y of ethylene, 540,000 t/y of PE and 800,000 t/y of PP, ⌠Borouge 2 will complement the group's existing capacity of 600,000 t/y of PE.

MRC

MRC Reference

Borealis. The share in the Russian market in 2008:

polyethylene - 4.1% (including HDPE - 4.7%, LLDPE - 8.7%);
polypropylene - 3.2% (PP-impact - 7.5%).

Annual sales growth in Russia over the last 5 years:
polyethylene - 11%;
polypropylene - 6%.

Leader in polymers processing technologies:
extrusion coating;
cable extrusion;
injection molding.

March 23 (plasteurope) -- Dow Europe has announced that it will raise the prices of all its plastomers and elastomers products in Europe, the Middle East, Africa and India.

The hike of EUR 100/t will go into effect on 1 April 2010 and concerns the group's ⌠Affinity, ⌠Versify, ⌠Primacor, ⌠Amplify, ⌠Infuse, ⌠Nordel, ⌠Engage and ⌠Tyrin grades.

MRC

MRC Reference

Share in the Russian market, 2008:

polyethylene - 2.5% (including LLDPE - 33.1%);

polypropylene - 0.8% (including PP-impact - 1.1%);

polystyrene - 2.6%.

Annual sales growth in Russia, recent 5 years:

polyethylene - 55%;

polypropylene - 28%;

polystyrene - 2%.

Imports by processing technologies:

pipe extrusion;

film extrusion;

sheet extrusion;

foaming.

March 23 (Bloomberg) -- Formosa Plastics Corp., the world's second-biggest maker of polyvinyl chloride (PVC) was told by the Taiwanese government to curb pollution at a plant or it may be fined.

Tests showed the soil and groundwater underneath Jenwu plant have been contaminated, the Environmental Protection Administration in Taipei said in a statement on its web site yesterday. The PVC maker must contain the pollution or pay a fine of as much as NT$750,000 ($23,600), the EPA said.
Formosa Plastics started making PVC in Jenwu in the southern county of Kaohsiung in 1972, according to its 2008 annual report. The company should ⌠actively prevent pollution from spreading and improve the conditions, the EPA said.

A lack of adequate facilities ⌠in the early days and other factors including earthquakes had caused waste water from the plant to seep into the ground, the company said in a statement to the Taiwan Stock Exchange today. Formosa Plastics has since built a waste-water treatment plant that prevents the pollution of groundwater, according to the statement.

The shares fell 1.6 percent to NT$69.90 in Taipei trading at 11:33 a.m. today. The benchmark Taiex stock index declined 0.8 percent.
Formosa Plastics has plants in other locations, including western Taiwan's Mailiao.

MRC

MRC Reference

Formosa. The share in the Russian market in 2008:

PVC-S - 3.0%;

PP - 0.4%.

Annual growth sales in Russia :
PVC - 79 % (over the last year) ;

PP - 272 % (over the last 3 years).

Supply by processing technologies:
profile extrusion

film extrusion