Dow to build new EPDM plant on the US Gulf coast

(hydrocarbonprocessing) -- Dow Chemical has unveiled its plans to construct a new world-scale plant for the production of metallocene ethylene propylene diene monomer (EPDM), sold under the trademark of NORDEL IP Hydrocarbon Rubber. NORDEL IP is targeted for automotive weather-stripping, automotive hoses and belts, building profiles, roofing membranes, footwear and general rubber products.

The new facility will set the standard in cost effectiveness and production efficiencies by incorporating the use of Dow’s newest proprietary catalyst technology and leveraging the production advantages of Dow’s large-scale, integrated solution process, the company said. The new plant to be located on the US Gulf Coast is expected to start operations in 2016.

Dow says the production facility will leverage its investment plan to increase ethylene and propylene production in the US Gulf Coast and will connect US operations into feedstock opportunities available from increasing supplies of US shale gas.

The Dow Chemical Company is an American multinational chemical corporation headquartered in Midland, Michigan, United States. Dow is a large producer of plastics, including polystyrene (PS), polyurethane, polyethylene (PE), polypropylene (PP), and synthetic rubber.
MRC

MOSCOW (MRC) - European market participants reduced their purchases of polystyrene in late October amid falling prices of styrene monomer, as per analysts MRC.

Some market players last week confirmed the increase in the cost of polystyrene in Europe on average by EUR30/tonne. However, not all consumers managed to sign contracts for the shipment of the material in October. In anticipation of a possible price cuts in November, the company decided to reduce the volume of purchases.
Prices decrease of styrene monomer again caused the stir in the market on the price of polystyrene in November.

Despite the Styron’s new pricing approach not based on the feedstock of styrene monomer in the formation of the contract price of polystyrene, many of the participants have not followed it.

Another important factor in the formation of prices in the short term, is the demand. Many sources confirm the decrease in demand in recent years. The buyers are under the pressure of high prices, which makes converters look for replacing polystyrene by other polymers where it is possible.

Retailers report that sector of food packaging made of polystyrene was affected the least of all. Those companies which have managed to form inventories in July, were in a much better position than those who had to make the purchases in October.

Market participants agree, that the anticipation of price cuts of styrene monomer, make buyers hold back from purchases in the end of October. Makers reported a normal level of demand for the material over the first two decades of October, after which sales have dropped significantly.
More information you can find in Price report ICIS-MRC .

MRC

MOSCOW (MRC) -- In September, PVC imports to China dropped to 76,800 tonnes, while in August this index made about 98,700 tonnes. In general, over the past nine months, the total PVC import to China made about 730,000 tonnes, according to MRC analysts.

After the August surge, PVC imports to the Chinese market began to decline again. Last months, the total PVC import to China fell by 22% from August and made about 76,800 tonnes. Imports of the resin were reduced to all the markets with the only exception of Japanese producers.

The total year-to-date PVC import to China slashed by 4% year-on-year and made about 730,000 tonnes.

This year, only the U.S. and Taiwanese producers out of the top three exporting countries were able to increase volumes of PVC supply to China. In January-September, these countries’ imports made 271,700 and 241,800, respectively, up 17% and 20% year-on-year. Conversely, Japanese producers reduced their supplies by 42% to the level of 125,700 tonnes.
MRC

MOSCOW (MRC) - Year to date consumption of SPVC in the Russian market declined by 7% and amounted to 729,200 tonnes. The imports volumes were cut significantly, according MRC ScanPlast.

Over the nine months of this year, the total volume of SPVC supplies to Russia both from local producers and external suppliers decreased by 7%, compared to the same period last year and amounted to 729,200 tonnes. Reduction in the supply of resin to the Russian market resulted from the reduction in imports.

Russian producers this year increased the production of SPVC by 8% to 426,500 tonnes, though exports in the last three years have been insignificant. Imports over the nine months decreased by 23% to around 302,800 tonnes.

The decline in imports of SPVC to the Russian market to a greater extent fell on the first half of the year, which was due to the cold February and March, and resulted in a very low demand for finished products made of SPVC, as well as accumulation of resin inventories both at the Russian producers and traders.

According to some market participants, total stocks of SPVC inventories on the 1, January 2012 at the Russian makers and traders made at least 45,000-50,000 tonnes.

MRC

(businessweek) -- North America’s shale boom is prompting the biggest expansion of natural gas-fed petrochemical plants in 15 years, helping Exxon Mobil Corp.beat Mitsubishi Chemical Holdings Corp. with raw materials that are half the price of the oil product used in Asia.

Hydraulic fracturing of shale rock formations, known as fracking, is giving U.S. chemical makers an edge in making ethylene, a building block in everything from plastics to antifreeze. Record gas production has driven down the cost of ethane, a component that’s converted to ethylene, by 60 % this year and prompted Japan to shut units running on oil-based naphtha that’s up 2 %.

Exxon Mobil and Westlake Chemical Corp. are among companies building ethane-fed plants to benefit from shale output that cut gas prices by about 75 percent since 2008. Mitsubishi plans to shut an ethylene unit, partly blaming the “emergence of shale gas” in North America, while Mitsui Chemicals Inc. also anticipates cutbacks. Closures may spread to South Korea and Taiwan, according to Credit Suisse Group AG.

Gas liquids, mostly ethane, supply about 85 %of feedstock for U.S. ethylene makers. Almost all plants in Northeast Asia use naphtha.

MRC