US polyethylene terephthalate producers are seeking price increases for April

(ICIS) -- US polyethylene terephthalate (PET) producers are seeking price increases for April, but whether these initiatives are achievable remains doubtful, market participants said on Friday. Two producers so far have announced that they will target PET price increases of 5 cents/lb (USD 110/tonne, EUR 77/tonne) for April. Domestic prices for bottle grade PET are currently assessed by ICIS at 99.50-101.50 cents/lb DEL (delivered).

However, one said its April initiative really will be determined by feedstock price increases, and that it wants to see margin improvement of 2 cents/lb on top of any raw-material hikes.

The producer said that while Mexican buyers could well end up paying an additional 5 cents/lb in April, ⌠we probably won't get the whole 5 [cent/lb increase] in the US.

The key factor is likely to be the April paraxylene (PX) contract price, a portion of which is passed on to the monthly contract price for purified terephthalic acid (PTA), the immediate precursor to PET.

MRC

(ICIS) -- Shell is likely to delay the restart of its 800 KTa mixed-feed cracker in Bukom, Singapore, to May because of ongoing technical issues, market sources said on Monday. ⌠We are hearing that April is not possible, said one source who declined to provide further details. Company officials were not available for comment.

Other sources said the cracker had failed to restart as scheduled on 10 April. The cracker was shut on 18 March, which prompted Shell to declare a force majeure on ethylene and monoethylene glycol (MEG) shipments.

Meanwhile, Shell has been buying ethylene to feed into its 750 KTa MEG plant in Singapore, said another market source.

The MEG plant has been running at below capacity, said the source, but did not elaborate.

MRC

(ICIS) -- Southeast Asian olefins spot prices could hit fresh highs this week if major supplier Shell keeps buying spot ethylene cargoes due to an ongoing outage at its 800 KTa cracker in Singapore, market sources said on Monday. Shell failed to restart the mixed-feed cracker in Bukom Island over the weekend and the facility is not likely to resume operations until May due to ongoing technical issues, they said.

Ethylene touched a 14-month high of USD 1.320-1.400/tonne (EUR 911-966/tonne) CFR (cost and freight) SE (southeast) Asia last week, while propylene rose to USD 1.500-1.560/tonne CFR (cost and freight) southeast (SE) Asia - the highest since 5 September 2008 - amid tightened supply in the region, according to ICIS data.

Shell's cracker in Singapore has been down since 18 March and was initially expected to restart on 10 April, but operational problems at the unit persisted, market sources said.

MRC

(ICIS) -- BASF no longer plans to sell its leather and textile chemicals business and will instead focus on expanding it in the Asia-Pacific region, the company said on Thursday. ⌠BASF is not shutting down or downsizing [the leather and textile chemicals business]. The leather and textile market has been very difficult over the past 10 years, BASF spokeswoman Birgit Wesche said. BASF had considered selling the business after restructuring and efficiency programmes failed.

⌠There is a need to move with the market and optimise the business, which, for example, will mean that we will have a focus on Asia-Pacific now even more than in the past, Wesche added.

⌠This is a signal that we will continue to do business in Asia-Pacific, operating the business from Singapore.

BASF said the leather and textiles chemicals business will be oriented more toward the Asia-Pacific region, as many of the company's customers have moved there and opened facilities.

MRC

(Plastemart) -- US-based Merletti Partners International has formed an alliance with Hong Kong firm Rose Rock Infrastructure. The latter, through its joint venture with Hongfa Investment, will build and manage a new petrochemical import terminal in Tianjin, China - the fifth busiest port in the world at an investment of USD 256 mln. Merletti will be in charge of all project-related security and will manage ongoing security needs upon commencement of operations. This is the first time a western company has purchased a stake in a Chinese petrochemical port. Development on the site is scheduled to take two years to complete, in which time two 10 KTn chemical berths will be built.

MRC