PVC imports to Kazakhstan rose by 13% in January-November 2013

MOSCOW (MRC) -- Imports of suspension polyvinyl chloride (SPVC) into Kazakhstan increased by 13% over the first eleven months of 2013, reported MRC analysts.

November SPVC imports to Kazakhstan dropped to 2,900 tonnes under the pressure of seasonal factors from 3,800 tonnes in October. The overall PVC mports exceeded 28,000 tonnes from January to November 2013, while this figure was about 24,800 tonnes over the same period a year earlier.

Local producers of pipes and window profiles have ensured stronger demand for SPVC in Kazakhstan. Chinese producers are the key PVC suppliers with the overall share in the total imports of over 95%.
MRC

MOSCOW (MRC) - Russia's export duty on a number of goods, including PP, PE and PET, for delivery to Europe will be risen from 1 January 2014 from current 0%-3% to 6.5%, said the Russian Chemists Union (RCU) in its press release.

According to EU Regulation number 978/2012 (from 25 October 2012 on the application of the scheme of generalized tariff preferences and the abolition of the EU Council of the EU Regulation 732/2008) export tariffs for Russian exporters will be changed from 1 January, 2014.

Among the goods subject to the new rate will be polypropylene, polyethylene, PET, acetone, anhydrous ammonia, a number of phenols, etc.

Such a change in tariff rates will inevitably affect the competitiveness of our products in Europe, and possibly on the volume of deliveries, "- said the president of the Union of Chemists Viktor Ivanov.

EU regulation, which suggest new rates was adopted a few months after Russia's WTO accession, giving to Russian producers only a year to adapt to new duties. RCU hopes that the Ministry of Economic Development together with the chemical companies will work out procedures to protect the interests of the economic entities in the World Trade Organization.
MRC

MOSCOW (MRC) -- There was an incident at SIBUR-Kstovo (Nizhny Novgorod region), which produces ethylene and propylene, said sources to MRC.

SIBUR-Kstovo is tightly integrated into SIBUR's production chains and supplies its products to SIBUR-Neftekhim.

SIBUR's representatives said there was a blast at boiler furnace No. 2 at SIBUR-Kstovo's power unit, but it did not lead to fire. As a result, the boiler furnace broke down. There were no injuries.

At present, operations at all SIBUR-Kstovo's processing units were temporarily halted, pending clarification of causes of the accident. Due to the suspension of production, the discharge of pyrolysis furnaces with recycling of residual hydrocarbons, located in the machinery at the flare unit, was carried out as stipulated by current regulations. A commission was established to investigate the causes of the accident.

MRC analysts anticipate that a possible long-term outage at the ethylene complex with the capacity of 240,000 tonnes per year might affect the balance of the Russian propylene market, as well as, the production of polypropylene.

A few days earlier inhabitants of Kstovo (Nizhny Novgorod region) had complained of black smoke that came from SIBUR-Kstovo's flare and the smell of burning. The plant's representatives said the burning was of a temporary nature and was caused by a necessity to safely operate the plant's facilities. There were no threats to sanitary and epidemiological welfare of the population.

As reported earlier, RusVinyl, a joint venture of SIBUR and SolVin, which will produce polyvinyl chloride (PVC) with the capacity of 330,000 tonnes per year, should be launched in Kstovo in 2014.
MRC

MOSCOW (MRC) -- The global petrochemicals market was valued at USD472.06 bln in 2011 and is expected to reach USD791.05 billion by 2018, growing at a CAGR of 6.7% from 2012 to 2018, as per Plastemart with reference to Transparency Market Research.

In terms of volume, the global petrochemicals consumption was 436.86 mln tons in 2011 and is expected to reach 627.51 mln tons by 2018, growing at a CAGR of 5.4% from 2012 to 2018.

Growing consumption from major end use industries including construction, packaging, transportation, textile, plastics, healthcare and so on coupled with favorable operating conditions mainly in the Middle East and Asia Pacific is expected to drive the global market for petrochemicals over the next five years.

Ethylene dominated the petrochemical market and accounted for over 28% of the total consumption in 2011. Growing demand for polyethylene, a major derivative of ethylene, mainly from packaging industry is expected to boost the global market for ethylene over the forecast period. However, widening supply-demand gap due to capacity addition in the Middle East and Asia Pacific is expected to put pressure on ethylene prices, globally.

China was the leading consumer of petrochemicals and accounted for over 25% of the global consumption in 2011. Along with being the largest market, China is also expected to be fastest growing market, at a CAGR of 6.7% from 2012 to 2018, owing its significant downstream processing capacity. Asia Pacific including China accounted for over 45% of the total demand in 2011. North American market for petrochemicals is expected to be driven by rapid development of shale gas in the US.

The global market for petrochemicals is highly fragmented in nature. Top ten companies accounted for just over 49% of the total petrochemicals market in 2011. BASF, Sinopec and Exxon Mobil were the largest petrochemical manufacturers and together accounted for nearly 20% of the total market share in 2011. Some of the other players operating in the global petrochemical market include Chevron Phillips, Dow Chemical, Company, Ineos, LyondellBasell, National Petrochemical Co., PetroChina, SABIC, Shell Chemicals and Total.
MRC

MOSCOW (MRC) -- Egypt intends to pay out USD1.5 billion of the USD6.3 billion it owes to oil firms, furthering a government plan to boost the nation's economy after three years of political chaos, according to Hydrocarbonprocessing.

The government approved the USD1.5 billion payment on 4 December. It intends to repay another USD3 billion in monthly payouts through the end of 2017, in an effort to encourage energy-sector investment, especially by foreign companies.

Of the USD1.5 billion initial payment, USD1.2 billion will be paid in US dollars, and the remaining USD300 million will be paid in Egyptian pounds.

According to financial statements by BP, BG Group, Edison SpA, TransGlobe Energy, Eni and Dana Gas, Egypt owed the companies more than USD5.2 billion at the end of 2012.

The government has delayed payments to oil firms since at least 2011, due to political upheaval caused by the overthrow of President Hosni Mubarak in that year. The government turmoil has crippled the economy, frightened investors and hurt tax revenues.

As MRC reported earlier, SK Engineering and Construction Co., one of South Korea top builders, has recently signed a multi-billion dollar deal to set up a large-scale petrochemical plant in Egypt. The builder secured the USD3.6 billion contract for the Tahrir Petrochemical Project as part of a consortium with its German partner Linde. The plant aims to produce 1.35 million tons of ethylene and polyethylene per year.
MRC