PVC prices are going down in Asia on sluggish demand

MOSCOW (MRC) -- Low demand for PVC in Asia keeps putting pressure on prices. In the near future, the downward price trend in the region is going to continue, according to MRC Price Report.

In the PVC market of North-East Asia bearish sentiment still prevails. Suppliers are still facing low demand, ample supply and falling prices. Last week, deals for November shipments of the Asian PVC were concluded in the range of USD930-950/tonne, CFR. Deals for PVC shipments from the USA in late October were stricken in the range of USD870-890/tonne, CFR. Meanwhile, there are suggestions that price offers for the North American material for December shipments will drop to the level of USD830-850/tonne, CFR.

In the Chinese domestic market, there was also a price cut last week on declining demand and an increased competition from the imported material. Deals for acetylene and ethylene PVC were made in the range of Yuan 6,300-6,450/tonne, FD, and Yuan 6,650-7,000/tonne, FD. According to many market players’ expectations, the demand for PVC will keep on declining despite good weather conditions and probable transport issues.

PVC prices also keep falling in the South East Asia. Last week, deals were concluded in the range of USD920-950/tonne, CFR. Some makers are trying to increase export sales to minimize their stocks.
MRC

MOSCOW (MRC) – On 30, October Russia’s major petrochemical company Sibur had a meeting with Ukrainian converters in Kiev in order to establish a regional network of sales due to the launch of the polypropylene plant in Tobolsk.

Artem Krupinov, Sibur’s PP Product Manager, said that 500,000 tonne/year of PP, Tobolsk-Polymer plant will be the largest production of polypropylene in Russia and in the world.

"The plant has almost been built with minor finalizations, which will be completed by the end of this year. The launch of the plant is planned for January, 2013. First products are to be released in the beginning of the second quarter of 2013" - said Krupinov.

Tobolsk-Polymer will produce large volume polymers - raffia, injection molding, spunbond and films. Each of the segments will offer 2-3 grades in order to meet the needs of customers.

Polypropylene takes the 3rd place in the world in the consumption of plastic, after PE and PVC, and is widely used in various industries: automotive, construction, consumer goods production (packaging, film, furniture, dishes). According to Sibur’s data, up to 1 million tonnes of polypropylene is imported into Russia in the form of finished products.

MRC

MOSCOW (MRC) -- Equate Petrochemical's 550,000 tpa ethylene glycol (EG) plant has become operational, according to a company's press release.

Equate successfully restarted the unit at an earlier date than the previously announced mid-November target, said the company's official.

Initially it was planned to resume operation at the facility in six weeks' time after its shutdown due to the fire that took place on July 31, 2012, as MRC informed earlier. However, the dates to start up the plant were changed on August 2, 2012, for mid-November.

Euate is an international joint venture between Petrochemical Industries Company (PIC), The Dow Chemical Company (Dow), Boubyan Petrochemical Company (BPC) and Qurain Petrochemical Industries Company (QPIC). Equate is the single operator of a fully integrated world-scale manufacturing facility producing over 5 million tons annually of high-quality petrochemical products, such as polyethylene (PE), polypropylene (PP), styrene monomer, ethylene glycol and palaxylene, which are marketed throughout the Middle East, Asia, Africa and Europe.
MRC

(equities) -- Rosneft and General Electric have signed a contract to service five 6FA packaged gas turbine units.

These units are to be supplied by GE under an agreement signed in June for the thermal power plant at the Eastern Petrochemical Company, which is currently under construction by Rosneft. Igor Sechin, President and Chairman of the Management Board at Rosneft, and Jeff Immelt, Chairman and CEO of GE, signed the service contract.

The agreement will run for 16 years and is GE's largest service contract in Russia. The company will provide technical support and full-cycle routine technical maintenance of the turbines, their components and generators. GE will also be responsible for maintaining the availability factor of the turbines, as well as power output and the heat rate.

Rosneft is a Russian oil industry leader and one of the largest publicly traded oil and gas companies in the world. Rosneft is building the Eastern Petrochemical Company in the Primorsky region city of Nakhodka. The Eastern Petrochemical Company will produce propene, high and low density polyethylene, monoethylene glycol and other petrochemicals. The capacity of individual units at the Eastern Petrochemical Company will be greater than any existing global peers.

GE is a diversified global infrastructure and finance company focused on solving some of the world's toughest problems. GE offers products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging and financial services.

MRC

(plasticsinfomart) -- The "Global PET value chain market analysis report finds that the global PET market has been experiencing turbulence owing to various factors such as crude-oil volatility, economic fluctuations and increasing awareness regarding the development and use of bio-based plastics.

World demand in 2010 was estimated to be 15.912mt and is predicted to reach 20.6026mt in 2016, growing at a compound annual growth rate (CAGR) of 4.4% for the period from 2011 to 2016, the research company notes.

Asia Pacific is the largest consumer as well as fastest growing market for PET. Demand in the region is expected to cross 7mt in 2016, growing at a CAGR of 5.7% from 2011 to 2016. For the same time period, PET demand in North America and Europe is expected to grow at a CAGR of 3.7% and 3.6% respectively.

At present, carbonated soft-drinks (CSDs) are the largest global application for PET. Owing to critical properties such as lightweight, toughness and clarity, PET is the most widely used material for CSD bottles. Bottled water application is the second biggest consumer of PET. CSDs and bottled water together accounted for close to 65.05% of the overall PET demand in 2010. Alcoholic beverages, especially beer and food packaging are other key applications of PET.

However, owing to growing concerns regarding the environmental impact of PET bottles, there has been significant foray into replacing them with biodegradable alternatives such as PLA, PBS and so on, adds Transparency Market Research.
MRC