Global LLDPE supply to exceed 31.4 mln tonnes in 2017

MOSCOW (MRC) -- The worldwide linear low density polyethylene (LLDPE) production is likely to see stable growth in the upcoming years to exceed 31.4 mln tons in 2017, reported Plastemart with reference to Merchant Research & Consulting.

The major market growth stimulators include the rising demand for LLDPE worldwide alongside scheduled capacity additions.

During 2009-2012, the global LLDPE market witnessed sustained growth, as per Merchant Research & Consulting, in 2012, the world LLDPE supply registered a 6.6% YoY increase and touched the 25.9 mln ton mark.

Asia-Pacific and North America held the largest shares of the overall supply volume. The US, China, Saudi Arabia, Canada and Brazil were the top five LLDPE manufacturing countries; in 2012, their combined share of the overall production stood at over 54% in 2012.

The world LLDPE consumption dropped considerably during the global crisis in 2008. Nevertheless, it showed positive development in 2010. Between 2010 and 2012, the overall consumption volume increased from above 21.34 mln tons to more than 25.8 mln tons.

The highest demand growth rates were registered in 2010 and 2011 – 10.7% and 13.6%, respectively. In 2012, Asia was ranked as the leading LLDPE consumer in the world, calling for approximately 44% of the overall consumption.

As MRC wrote before, LLDPE prices significantly rose in January on the back of weakening rouble in the Russian market. Price offer for LLDPE grew to Rb76,000/tonne in the late January. Russian market of linear polyethylene is totally dependent on imports, as a consequence, the price situation in foreign markets directly affects the prices in the local market. Price offer for LLDPE in the foregn markets had begun rising since December 2013, but January depreciation of the Russian rouble contributed several times to it.
MRC

MOSCOW (MRC) -- India's government had decided earlier this year to extend the duration of anti-dumping investigations on PVC imports, according to a notification made from the Ministry of Commerce and Industry on January 24, as per Apic-online.

This followed the expiration of duties as of January 23, 2014.

Prior to the declaration there had been conflicting reports and confusion as to whether materials brought into the country would be subject to the additional fees. However, the declaration noted that duties would be in place until the end of the investigation, which was set for March 4, 2014.

A trader in India reported that the anti-dumping duties were deemed to be illegal past their expiration date of January 23, 2014. Reportedly, as per the law, anti-dumping duties can only be levied for five years with an extension of one year. Since the anti-dumping duties had been levied starting in 2008, their legal duration ended in January of 2014 although the customs authority was insisting that cargoes from the USA, Malaysia, Thailand, Indonesia, Japan, China and Taiwan had to be cleared with payments of the additional duties.

According to a decision filed February 19th, anti-dumping duties on imports from these countries are now removed. The trader said that until the sunset investigation is completed and new duties are applied, buyers can import from these origins without paying the additional fees.

In 2013, the Ministry of Finance (Department of Revenue) Government of India vide its Notification No. 25/2013 -Customs dated 8th May 2013 increased the Customs Duty on Plastic Polymers (except Polycarbonate) from 5% to 7.5%.

As MRC informed earlier, Indian economy is passing through very difficult times. During the last few years, the plastics sector was growing at an average rate of 12% per annum and was contributing substantially to the growth of GDP and employment generation, but the last one year growth has taken a ‘U’ turn and at present there is a negative growth in the plastics sector.
MRC

MOSCOW (MRC) -- Effective March 1, 2014, Kuraray America, Inc. will increase the price of the following products by USD.06/pound or as contracts allow: all commercial and XEP grades of EVAL ethylene vinyl alcohol (EVOH), reported the company on its site.

Increasing fixed costs have significantly impacted the company's operations and, as a result, it is necessary to partially offset these cost increases to ensure ability to provide reliable apply.

As MRC wrote previously, in December 2013, Kuraray and DuPont, the biggest US chemical maker by market value, signed a definitive agreement for DuPont to sell Glass Laminating Solutions/Vinyls (GLS/Vinyls), a part of DuPont Packaging & Industrial Polymers, to Kuraray for USD543 million, plus the value of the inventories. The sale is expected to close during the first half of 2014 pending customary regulatory approvals.

Kuraray America is a global leader in specialty chemical, fiber and resin production. With top-of-the-line research and production facilities located in Houston, Texas, and a vast network of supply from around the world, Kuraray leads the industry in specialty dental, fiber, resin, and elastomer products.
MRC

MOSCOW (MRC) -- With the boom in shale gas production in the US, the country is anticipated to challenge Russia's LNG monopoly in Europe by the end of the decade, said Hydrocarbonprocessing.

Europe is becoming increasingly reliant on imports as its domestic gas fields mature, and it will require additional sources of LNG supply. New LNG projects in the US, Australia, Russia, East Africa and Canada could double global LNG production to 600 million tons per year from 2018.

Two major projects slated to come onstream this year are ExxonMobil's Papau New Guinea LNG project and BG Group's Queensland Curtis LNG project in Australia. The majority of new Australian and East African LNG projects are geared to meet Asian demand, while much of the new US LNG output is slated for export to Europe after 2015.

Presently, there are more than a dozen proposed LNG export projects at various stages of approval in the US. Russia, the dominant LNG supplier to Europe, charges high prices for its LNG, offering US exporters an opportunity to seize market share through cut-rate agreements.

According to ConocoPhillips' global LNG marketing manager, Birger Balteskard, "There is a potential large gap between demand and supply into Europe. We think, by 2025, that will be as much as 25 billion cubic feet per day, which is significant."

However, changing Asian energy needs could have a significant impact on this scenario. If China's LNG demand rises faster than anticipated, and/or if Japan continues to uphold its nuclear energy restrictions, then the availability of gas exports to Europe could be limited.

As MRC reported previously, Dow Chemical, Formosa Plastics, Chevron Phillips Chemical, ExxonMobil and Nova Chemicals unveiled their expansion plans in North America on shale gas deposits in the Marcellus Shale Formation in New York, Pennsylvania, Ohio as well as a favourable gas price.

MRC

MOSOW (MRC) -- BASF will increase the prices for all Polyamide 6 base polymer grades and the Polyamide Intermediates Caprolactam and Adipic Acid in Europe by EUR110 per metric ton for each product, reported the company on its site.

The price increase is necessary due to the steep raw material price increases in the last months.

Besides, BASF is increasing its European sales prices for ethanolamines (EOA) as follows:

- monoethanolamine (MEOA) + EUR20/tonne;
- diethanolamine (DEOA) + EUR50/tonne;
- triethanolamine (TEOA) + EUR20/tonne or by the equivalent amounts in local currency.

The company's price increases will come in effect immediately or as soon as existing contracts allow.

Ethanolamines are high-class intermediates used in the manufacture of agrochemicals and wood protectants, surfactants for detergents and cleaning products, process chemicals for gas treatment, lubricants and cement additives as well as active pharmaceutical ingredients.

As MRC informed previously, in December 2013, BASF increased its selling prices for butanediol and derivatives in Europe, as follows: 1,4 butanediol (BDO) - by EUR50/tonne, tetrahydrofuran (THF) - by EUR70/tonne, polytetramethylene ether glycol (PolyTHF) - by EUR70/tonne. The price adjustments reflect mainly the increase of raw material cost.

BASF is the world’s leading chemical company. Its portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas.
MRC