Asian polycarbonate prices look set to weaken

(ICIS) -- Asian polycarbonate (PC) prices look set to weaken, suppressed by tepid derivative demand and the persistently low domestic prices in the key China market, despite attempts by producers to raise prices and boost margins, market sources said on Thursday. Spot prices were stagnant at USD 3.250-3.350/tonne (EUR 2.275-2.345/tonne) CIF (cost, insurance and freight) Hong Kong for GP-moulding grade and at USD 3,050-3,150/tonne CIF Hong Kong for optical grade, according to ICIS data.

Downstream demand in China was capped by tightening credit and reduced export orders for finished goods. Traders showed limited buying interest for imported cargoes as they were saddled with ample inventories.

Spot PC prices had gained USD150-200/tonne since mid-February, buoyed by rising feedstock bisphenol A (BPA) values and the expectations of tighter supply and firm raw material costs following the massive earthquake that hit Japan on 11 March.

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(Lanxess) -- Despite major benefits, foaming processes in the past have been unsuccessful in gaining widespread acceptance for use in injection molding. One of the reasons for this was the poor surface quality of the resultant components. To counteract this problem, Lanxess has developed a new polyamide 6 and polyamide 66 Durethan designed specifically for physical and chemical foaming.

⌠Both materials produce excellent molded part surfaces that in most cases are smooth and flawless with virtually no opalescent streaks or areas that appear porous. They are therefore suitable for applications that also place high demands on the visual quality of the part - such as visible components under the hood, states Maik Schulte, a development engineer at Lanxess.

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(Reuters) -- Japanese ethylene production rose 0.1% in March from the same month a year earlier, although some plants were shut after the March 11 earthquake, government data showed on Thursday. Ethylene output totalled 514.8 KT last month compared with 514.1 KT a year earlier, the Ministry of Economy, Trade and Industry said. March output was down 15.0 percent from 605.3 KT in February, when no plants were shut for maintenance.

There was one maintenance-related plant shutdown in Japan in March, while three plants were shut in the same month last year, METI said.

Maruzen Petrochemical Co Ltd and JX Nippon Oil & Energy Corp, an oil refining unit of JX Holdings , have restarted their quake-shut naphtha crackers, leaving two crackers still shut at the Kashima plant operated by Mitsubishi Chemical Corp, with a total ethylene making capacity of 828 KTa.

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(Arabian Oil and Gas) -- Rabigh Refining and Petrochemical Company (Petro Rabigh) is set to start a two-month scheduled maintenance for its integrated complex located in Rabigh, on the western coast of Saudi Arabia, the company said in a statement. ⌠The maintenance work will start from the 21st April, and will last 60 days, the company statement said. ⌠We will start the operation gradually after 45 days."

The company also revealed that it has inventories to last it for 30 days. ⌠We expect a reduction of our sales during the second half due to this maintenance period, as our inventories covers only 30 days, it added in the statement published on the Saudi Stock Exchange (Tadawul).

The company has also announced the stopping of production from its two polyethylene units on April 5 due to a technical issue. ⌠We decide to start the maintenance at the units due to this technical issue, and we don't expect this to affect the company's financial revenues, the company statement read.

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(Braskem) -- Braskem held a ceremony to launch the cornerstone of its new PVC plant located in Marechal Deodoro in the state of Alagoas. Construction of the new plant has already begun and should create around 2.500 direct jobs until completed. With investment estimated at R$ 1 bln, which is the highest ever made by Braskem in a single project, the new industrial unit is scheduled to start operations in the first half of 2012.

The new plant will have annual production capacity of 200 KTa. Braskem already has a PVC unit in Alagoas, and this project will bring its annual PVC production capacity in the state to 460 KT. The new plant will make Alagoas the largest producer of PVC in Latin America, which should help strengthen the PVC manufacturing complex that already exists in the state. In addition to Alagoas, Braskem also has annual PVC production capacity of 250 KTat its plant in Camacari in the state of Bahia.

The installation of the new unit reflects the robust growth in the construction industry in Brazil, with growing demand for PVC, which is used in pipes and fittings and in profiles and frames. In 2010, the construction and sanitation sector drove growth of 18% in domestic PVC demand.

MRC