Chaunghua County site found unsuitable for a petrochemical complex

(Plastemart) -- The Control Yuan has found the selected Chaunghua County site unsuitable for a petrochemical complex in view of land subsidence problems in the area. The report states that the available surface water resources in Chaunghua and Yunlin counties of 380 KT/day are not sufficient. Water-intensive industries such as the Kuokuang Petrochemical Technology Co project, which needs 400 KT/day of water, should not be introduced to the region. One problem that could arise from the Kuokuang project is that more groundwater would have to be pumped to maintain a stable water supply during shortages, which would compromise the effectiveness of measures to improve land subsidence problems. The report said the highest rate of subsidence in Chaunghua County had been observed in Dacheng Township, where the nation's second-largest wetland was proposed as the location for the Kuokuang project. The subsidence rate there was 6.9 cm per year in 2006 and 1.6 cm per year in 2009.

The USD 20.34 bln project was initiated by Kuokuang Petrochemical Technology Co., an affiliate of the state-run oil refiner CPC Corp., Taiwan, to expand oil refining capacity and the production of ethylene. Critics said the plan to build the complex in the Dacheng Wetlands in central Taiwan would create losses that outweigh the benefits. The disadvantages include damage to local oyster and eel- farming industries, and health hazards to local residents.

MRC

MOSCOW (MRC) -- Over first two months of 2011 growth of profiles production in Russia made 11.3 KTa. The volume of investment made in equipment is estimated at USD 6.1 mln, according to MRC EquiPlast.

Over January-February Russian converters purchased 18 complete lines for production of PVC profiles. About one third fell at equipment for production of window profiles. Overall growth of conversion capacities in 2011 is twice lower than that in the same period in 2010.

A significant event for the market of window profiles became an appearance of a new player - Hisung Chemical Rus. Production site of the company is built on the extrusion equipment of Kumsan Precision and is situated in Moscow region in the territory of EDSK plant. Among the participants of the profiles market in 2011 such big companies as Profine Rus and Exprof enlarged their production capacities.

We forecast a gradual recovery of investment activity of PVC converters that is stipulated by revived consumption of finished goods. Imports supplies of PVC (in terms of PVC resin) in QI of the current year made almost 127 KT that is twice as more than resin supplies over the same period in 2010.

Detailed analysis of the growth of polymers conversion capacities in Russia is available in a monthly MRC report EquiPlast. Full analysis of PVC market in Russia is available in MRC Annual reports.

MRC

(ICIS) -- Malaysia's oleochemicals prices may continue to fall as March stockpiles of feedstock crude palm oil may have reached 1.60m-1.65m tonnes - the highest monthly volume recorded so far this year, industry sources said on Friday.

Prices of most oleochemicals in Malaysia, such as fatty acids, fatty alcohols, glycerine and soap noodles, could decrease by USD 10-20/tonne (EUR 7-14/tonne) from current levels if Malaysia's March crude palm oil (CPO) production data shows a further increase in supply, they said. The Malaysian Palm Oil Board (MPOB) is due to announce last month's palm production data next week.

Industry players estimate that end-March CPO stockpiles would total 1.60-1.65 million tonnes, which would be the highest for this year. According to the MPOB, February's crude palm oil output reached 1.09 million tonnes, with end-February stockpiles reaching 1.48 million stocks. January's production was 1.05 million tonnes, with end-January stockpiles totalling 1.41 million.

MRC

MOSCOW (MRC) -- Import supplies of suspension PVC to the Russian market keeps on surpassing demand. In March imports exceeded 40 KT, according to MRC DataScope.

In February Russian companies actively contracted PVC for March deliveries. Overall imports of suspension exceeded 43 KT last month which was 10 KT more than in February. Still main volumes of imports fall at trade companies whose share in the overall volume exceeded 63%. As expected, in March import deliveries of PVC-S from North America lowered to 17.3 KT. While the imports of acetylene resin from China doubled to 19.6 KT. The main reason for that is limited offer from North American producers.

Soon a further growth of the share of Chinese PVC in the Russian market is expected and the imports of North American resin will gradually decrease. The reduction of exports quotes and a considerable growth of prices (more than USD 100/mt) from the North American producers of PVC will limit purchases from Russian companies.

On the other hand, Chinese producers may also limit export supplies for the Russian market. Despite a considerable growth of production capacities of acetylene PVC producers from the North of China who are traditional for Russian companies, demand for PVC in the domestic market has also considerably grown, as a result, export possibilities have been limited. Also a railway transit in the border of China and Kazakhstan is narrow and its capacity soon will play an important role in imports of acetylene suspension.

MRC

(BASF) -- BASF opened its new Polyurethane (PU) Solutions System House in Dubai with an official ceremony. About 150 guests from business, government, customers and neighbors alike joined the event at the just recently completed BASF site in Dubai Industrial City (DIC). Wayne T. Smith, President BASF Polyurethanes, stated: ⌠This investment further emphasizes the significance of this region for BASF and demonstrates that we are prepared to accompany our customers' growth in all regions of the world and desire to be their preferred partner of choice. In Dubai, we will strengthen existing customer relationships and implement our proven worldwide strategy of locally operated, customer-oriented System Houses. This step once again shows that we are continuously expanding our leading position in the polyurethane market.

BASF's global network of 38 System Houses, together with its production sites for the main precursors and basic products, makes BASF the only polyurethane manufacturer who can reliably provide its customers around the globe with locally manufactured products.

MRC