Another Chinese producer choses UNIPOL PP technology from Dow

(eon) -- Qinghai Damei Coal Industry has signed a license agreement for UNIPOLPolypropylene Process Technology with Union Carbide Chemicals & Plastics Technology LLC, a wholly owned Subsidiary of The Dow Chemical Company.

The coal based polyolefin complex, located in the Xining Economic and Technological Development Zone of Xining City, Qinghai Province in China, is expected to start up in 2015. The 400 KTA polypropylene plant will produce homopolymers, random copolymers and impact copolymers. This is the 12th UNIPOL Polypropylene Technology license signed in China since 2006. The 11th license was signed by Jiutai Energy in September, as MRC informed earlier. With the least complex PP process technologies available and low investment costs, Dow’s UNIPOL PP Process Technology positions polypropylene manufacturers to meet and exceed increasing demand for high quality polypropylene.

The UNIPOL PP process for polypropylene is a comprehensive technology and services package with established worldwide success. It combines product and catalyst know-how with leading gas-phase process technology and technology transfer expertise. Licensed by Union Carbide since 1985, UNIPOL PP technology is now available through Dow. Resins produced by UNIPOL polypropylene technology from Dow account for 17 percent of global polypropylene output. Polypropylene is a versatile plastic used in packaging, durable goods, automotive parts, non-wovens, fibers and consumer applications.
MRC

MOSCOW (MRC) -- The latest technology of hydraulic fracturing, which provides access to recently inaccessible layers of natural gas, is widely used in the U.S. but not in Europe, according to "Neft Rossii".

Due to fracturing, the United States has almost fully met the country's needs with shale gas. Thus, such petrochemical giants, as Dow Chemical, Formosa Plastics and Chevron Phillips Chemical, earlier this year announced their plans to increase production capacities in North America on the development of new shale gas resources in Ohio, Pennsylvania and New York and attractive price of shale gas, as MRC reported earlier. ExxonMobil is also considering the construction of two new lines for the production of polyethylene in Mont Bellevue, Texas, and a new ethane cracker at Baytown, Texas.

In the U.S., an intensive research and exploration of shale gas has been carried out over the past few decades. In Europe, this process has just begun. Poland has the most favorable geological conditions in Europe for the new technology, and the country could become a major producer of shale gas in about 10 years. If this is the case, shale gas will help Poland not only economically, but also politically, reducing the country's dependence on Russian gas.

Some of the European countries are conducting research, but have not started to blow up coalbeds yet. However, it is worth keeping in mind a few important points. Firstly, the geological conditions in Europe are different from those in the USA. Secondly, there are huge differences between the two continents in the size of potential gas deposits, which makes the new technology for the European countries economically disadvantageous. According to the International Energy Agency, it is the U.S., Canada and China that have the largest deposits of shale gas but Europe.
MRC

MOSCOW (MRC) -- European PS producers are going to increase their price offers for November shipments on rising quotations of styrene monomer and a high level of demand for polystyrene in October, report MRC analysts.

Last week, two major European producers voiced their intentions to raise their PS price offers by EUR15-25/tonne. The producers base their intentions on the market balance and are going to get an increase in profit margins in November. At the same time, buyers oppose any price increase referring to the fact that the current cost of PS in Europe is crucial for most converters.

Styrolution has posted on its website an announcement about a price increase for GPPS and HIPS by EUR15/tonne. Styron has issued a press release where it is also reported an increase in the cost of the material by EUR25/tonne. Producers believe that the current level of demand for PS on a significant price hike of spot quotations of styrene monomer will allow them to increase prices.

Customers’s reaction to these statements was negative. Converters report that such a high level of PS cost has a negative impact on the competitiveness of the final production comparing to that produced from alternative polymers. More detailed information can be found in MRC Price report.
MRC

MOSCOW (MRC) -- In January-September, imports of titanium dioxide to the Russian domestic market fell by 24% year-on-year and made 50,500 tonnes, report MRC analysts.

Over the three quarters of 2011, the total import of titanium dioxide made 66,120 tonnes. This year, supply volumes have been dropping monthly with the exception of February when the total import of TiO2 to Russia rose by 12% year-on-year and made 5,860 tonnes.

At present, the major suppliers of titanium dioxide to Russia are still Ukrainian makers - Crimean Titan and Sumykhimprom. In January-September 2012, Ukraine exported to Russia about 19,250 tonnes of titanium dioxide pigment. Note that during the same time period in 2011, Russian companies purchased 25,500 tonnes of dioxide in Ukraine.

Chinese plants are the second-largest suppliers. During three quarters of the year, Chinese makers supplied 6,226 tonnes of the material. Meantime, in 2011, China ranked only fourth among all the suppliers of titanium dioxide to Russia after the USA and Germany.

American producers are losing their positions in the Russian market yielding their ground to Chinese suppliers. The total volume of American ТiO2 to be sold to Russia amounts to 5,000 tonnes. In 2011, this index made about 7,900 tonnes.

MRC

(shell) - Saudi Basic Industries Corporation (SABIC) and Shell announced today that they are progressing plans for the expansion of various projects at the Saudi Petrochemical Company (Sadaf). The joint venture partners are also looking to expand their partnership beyond Saudi Arabia.

Night shot of Sadaf, SABIC and Shell’s long-standing JV of over 30 years, in Al Jubail industrial zone, Saudi Arabia
Both parties are developing a full range of polyols (a polyurethane building block) and styrene monomer propylene oxide (SMPO) plants at the existing Sadaf site, which is located in one of the world’s largest and most competitive petrochemical complexes – the Al Jubail industrial zone on Saudi Arabia’s eastern coast. SABIC and Shell will jointly conduct the necessary studies to implement the project.

The proposed full range of polyols and SMPO plants would be the first of their kind in the Middle East. The assets would employ Shell’s proprietary polyols and SMPO technologies to produce chemical building blocks for the polyurethanes industry and petrochemicals sector in the Middle East and beyond. The partners are committed to the polyurethanes, styrene, propylene oxide and derivatives sectors, and have access to leading technologies as major international suppliers.

Owned jointly by Shell Chemicals Arabia LLC and Saudi Basic Industries Corporation (SABIC), Sadaf is one of the oldest petrochemicals ventures in the Kingdom of Saudi Arabia. The 50:50 JV was established in 1980 and began operating in 1984. It is located in one of the world's largest and most competitive petrochemical complexes in the Al Jubail industrial zone on Saudi Arabia's eastern coast. Sadaf produces some 4.7 million tonnes of building-block petrochemicals a year, primarily sold to customers in the Asia Pacific region. They include ethylene, crude industrial ethanol, styrene monomer, ethylene dichloride, caustic soda, and methyl tertiary butyl ether.
MRC