Lubrizol broke ground on CPVC compounding plant in India

MOSCOW (MRC) -- The Lubrizol Corporation announces the groundbreaking for a new TempRite chlorinated polyvinyl chloride (CPVC) compounding plant in Dahej, India, said the producer in its press-release.

Construction of this plant is an integral component of the company's previously announced USD400 million global expansion of its resin and compounding manufacturing capacity. Further solidifying Lubrizol's commitment to the Indian market, investment in this new plant marks Lubrizol as the first major global producer of CPVC to establish operations in India. The estimated investment in the new plant is more than USD50 million U.S., and it will have the capacity to produce approximately 55,000 metric tons of compounds annually.

The plant will be strategically located in the Gujarat Industrial Development Corporation (GIDC), which is one of the largest chemical parks in the country. Many of the raw materials required for Lubrizol's specialty chemical product portfolio are produced in GIDC. The plant is located near excellent infrastructure and is well-positioned geographically to serve the growing Indian market as well as support the emerging growth of the TempRite CPVC business in South Asia, the Middle East and East Africa.

We remind that, as MRC wrote previously, Sekisui Chemical and Lubrizol will initialise a joint venture (JV) company in Thailand, in order to produce chlorinated polyvinyl chloride (CPVC), which is used as a raw material in pipes for supplying hot water, industry and sprinklers.

The Lubrizol Corporation, a Berkshire Hathaway company, is an innovative specialty chemical company that apart from its production develops and supplies technologies to customers in the global transportation, industrial and consumer markets. Lubrizol"s advanced polymer technology delivers exceptional performance for the plumbing, fire sprinkler, industrial and other building and construction related applications. Lubrizol is providing innovative solutions for its customers high-performance application needs and remains committed to ongoing investment in its CPVC capabilities that support future growth.
MRC

MOSCOW (MRC) -- Prices of high-density polyethylene (LDPE) in Russia continued to grow on the back of tight supply amid seasonally higher prices. LDPE prices broke all historical records in mid-April. The situation was worsened by road closures because of spring floods, according to ICIS-MRC Price report.

LDPE prices continued to rise in the Russian market this week on the back of seasonally stronger demand and an upcoming one-month shutdown for maintenance at Kazanorgsintez, the second largest LDPE producer in Russia. Prices of 158 and 153 grade polyethylene (PE) rose to record levels over the past few years. At the same time, transportation issues because of traffic ristrictions on many federal roads added to problems of record high prices.

Kazanorgsintez plans to shut down its 158 and 153 grade LDPE for a one-month turnaround from 18 April. Ufaorgsintez dramatically reduced its capacity utilisation last week (Wednesday-Thursday) because of technical issues. These factors have a psychological impact on the market.

Tomskneftekhim announced a price increase of Rb1,000/tonne from early April in the contract market this week. New contract PE prices are expected to be announced by Ufaorgsintez from 11 April.

Spot prices of 158 grade LDPE rose to Rb65,500-72,000/tonne CPT Moscow, including VAT. Offer prices for shrinkable films PE ranged between Rb70,000-75,000/tonne CPT Moscow, including VAT.

Traditional restrictions on transportation movement during the spring floods on most federal roads aggravated the situation for converters. The introduction of restrictions began last week of March and it will be in force in most regions of the Russian Federation by mid-April, which resulted in higher freight charges (the growth from 25% to 43%) and difficulties with transportation chartering.
MRC

MOSCOW (MRC) - Polish chemicals maker Synthos aims to invest about USD170 million in its planned synthetic rubber plant in Brazil, said Reuters, citing the group's chief executive.

The facility, based on French tyre maker Michelin's licence for the production of synthetic rubber, would use raw materials supplied by Latin America's top petrochemical company - Brazil's Braskem.

The plant will be launched in 2016 or 2017, Synthos CEO Tomasz Kalwat told Reuters. "We plan to spend around USD170 million until 2017 or 2018, as the last payments usually take place some time after the construction," he said.

Synthos - controlled by one of Poland's wealthiest businessmen, Michal Solowow - signed a conditional 15-year deal with Braskem worth around 4.5 billion zlotys (USD1.5 billion) for the supply of butadiene to the plant.

Michelin and its Italian rival Pirelli have signed multi-year deals with Synthos for the delivery of synthetic rubber from the plant worth 1.15 billion zlotys and 1.55 billion zlotys, respectively.

Synthos S.A. is one of the largest manufacturers of chemical raw materials in Poland, as well as being Europe’s No. 1 manufacturer of emulsion rubbers and leading manufacturer of polystyrene for foaming applications. We remind that Synthos Dwory announced an increase for April price following price rise for styrene monomer contracts. The range of April PS prices from Polish producers will be in the range of EUR1,500-1,550/tonne FCA Auschwitz, excluding VAT.
MRC

MOSCOW (MRC) -- North American suppliers of polyvinyl chloride (PVC) have further reduced their prices for the CIS markerts. Offer prices for shipments in the second half of April dropped to USD1,000/tonne, according to ICIS-MRC Price report.

Lower PVC prices in Asia and a major drop in purchasing of many companies from the CIS markets were the main reasons for reductions in export prices in the United States. North American PVC suppliers announced their offer prices for shipments in the second half of April in the range of USD1,000-1,020/tonne CFR.

Last week's deals for shipments in the second half of the month were negotiated in the range of USD1,000-1,020/tonne CFR St Petersburg and Novorossiysk for Russian companies and USD1,010-1,030/tonne CIF Odessa Ukrainian companies, up by an average of USD40-50/tonne from March.

Many companies, particularly from Russia, said they were forced to refrain from purchasing resin in the United States, citing both lower prices in the domestic market and in China. Some market participants said companies would resume purchasing, if May export PVC prices in the US were reduced further by USD20-30/tonne.
MRC