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MOSCOW (MRC) -- Imports of titanium dioxide (TiO2) to Russia in January-May 2013 grew by 38% (an increase of 10,800 tonnes) year on year and totalled about 39,000 tonnes, according to MRC DataScope.
In May, imports of titanium dioxide to Russia increased by 43% year on year to 8,875 tonnes. Market players believe the main reason for this rapid growth in supplies is the depletion of traders' stocks and, especially, the increased production of coatings and PVC windows.
In the structure of May imports, Ukrainian TiO2 accounted for about 22% of the total supplies. The share of American, Chinese and Belgian titanium dioxide made 15%, 12% and 11%, respectively.
Coatings sector is the largest consumer of titanium dioxide. 6,400 tonnes of TiO2 were supplied for the needs of this sector in May, whereas 2,370 tonnes of material were imported for the production of PVC window profiles.
MRC
Imports of titanium dioxide to Russia rose by 38% in January-May 2013
Hubei Chemical Fertilizer to launch production at new MEG plant in China
MOSCOW (MRC) -- Hubei Chemical Fertilizer is likely to start a new monoethylene glycol (MEG) plant, according to Apic-online.
A Polymerupdate source in China informed that the plant is likely to start commercial production in late 2013.
Located in Hubei, China, the plant has a production capacity of 200,000 tonnes per year.
We remind that, as MRC reported earlier, in May spot prices of MEG and terephthalic acid (PTA) showed an upward trend in the Asian region on good buying activity from producers of polyethylene terephthalate (PET). Thus, MEG prices rose by USD18-20/tonne at the Chinese port to USD997-1,006/tonne, CFR China.
MRC
Final Decision was made on investment for Nghi Son refinery and petrochemical complex in Vietnam
MOSCOW (MRC) -- Mitsui Chemicals, Idemitsu Kosan, Kuwait Petroleum International, and Petro Vietnam have announced the final decision to invest a total USD9 billion in their refinery and petrochemical complex construction project at Nghi Son economic zone, Thanh Hoa Province, Vietnam, according to Mitsui Chemicals' press release.
Following this decision, Nghi Son Refinery & Petrochemical Limited Liability Company, the project's joint venture company, concluded a financing agreement with a public financial institution and private banks in a total of USD5 billion.
The financing agreement consists of approximately USD2.3 billion from the Japan Bank for International Cooperation (JBIC) and the Export-Import Bank of Korea and approximately USD2.7 billion in loans from domestic and overseas private banks which are insured or guaranteed by Nippon Export and Investment Insurance (NEXI) and foreign export credit agencies.
It is noted that the project has received a USD1.65 billion loan from JBIC and a USD1.3 billion overseas investment insurance coverage by NEXI.
This final decision on project investment and financing agreements will allow construction to start in July. Construction is scheduled for completion in 2016 and commercial operation is targeted for 2017.
This project, which has at its base the stable supply of crude oil from Kuwait, will capture rapidly growing demand for petroleum products in Vietnam while also responding to forecasted expanding aromatic (paraxylene and benezene) markets and export sales of polypropylene products. The large-scaled project is expected to yield high returns.
In addition to securing a stable source for aromatics, which are raw materials of phenols and PTA, under competitive conditions thereby strengthening Mitsui Chemicals' business operations, the company will also provide licenses for polypropylene production.
As reported previously, Vietnam is likely to become the world's third biggest rubber producer in the future, thus, surpassing Malaysia, according to a recent report by the Association of Natural Rubber Producing Countries. The association estimated that Vietnam would produce 955,000 tonnes of natural rubber this year, up 17% year-on-year.
MRC
May PET imports to Russia fell by half
MOSCOW (MRC) -- In May, PET imports to the Russian domestic market dropped by more than half from April 2013 to about 11,000 tonnes, according to MRC DataScope.
Imports of Chinese PET decreased by 63% from April and reached 4,800 tonnes. Korean material accounted for a significant decrease in total PET imports. South Korea's imports to Russia fell by 34% to 4,400 tonnes.
Major converters raise purchases of domestic grades during the season, which leads to an increased demand for Russian PET, a source said. Meanwhile, direct contracts with major Asian producers make market players buy certain volumes of material, he added. He said purchases of granulate in Asia were not reduced, however the decrease in May imports will be offset by the June deliveries.
Overall, in January-May 2013, imports of PET to Russia fell by almost 7% year on year and totalled 75,700 tonnes. This year, Russian producers have continued the policy of import substitution. The capacity expansion at Polief plant (Bashkiria), scheduled for the second half of 2013, will accelerate the replacement of imported material.
MRC
Prices of DOP plasticizer in Russia have dropped further by late June
As previously reported, in the second half of June, Russian DOP prices began to decline gradually after having reached Rb78,000-79,500/tonne, CPT Moscow, including VAT, on the back of seasonal demand and scheduled maintenance (from 20 April for 30 days) at Gazprom neftekhim Salavat, the key DOP supplier to the Russian market.
After the resumption of operations at the plant, the output of alcohols and DOP was stopped again due to a failure at the production. However, the market responded sluggishly to the accident in Salavat, spot DPO prices in early June rose to Rb78,000-80,000/tonne, CPT Moscow, including VAT.
But already by mid-June, spot DOP prices in Russia had begun to gradually decline. And the resumption of plasticizer production at Gazprom neftekhim Salavat only led to a further slight drop in prices. DOP prices went down to Rb78,000-79,000/tonne, CPT Moscow, including VAT.
Some market participants do not rule out that there may be further reductions of Russian DOP prices in July under pressure of the increased supply from Bashkir plant.
MRC