US chemical activity barometer continues uptrend

MOSCOW (MRC) -- The Chemical Activity Barometer (CAB), a leading economic indicator created by the American Chemistry Council (ACC), continued its upward growth in June, with a 0.5% gain from May, said Hydrocarbonprocessing.

Measured on a three-month moving average (3MMA), the CAB’s 0.5% gain beat the average first quarter monthly gains of 0.3%, according to new figures released Tuesday by the ACC.

Though the pace of growth has slowed significantly, gains in June have brought the CAB up a solid 4.3% over this time last year.

"Overall, we are seeing signs of continued growth in the USeconomy, and trends in construction-related chemistry show a market which has not yet reached its full potential," said Dr. Kevin Swift, chief economist at the ACC. "However, unrest in Iraq is already affecting chemical equity prices, and the potential for an energy price shock is worrying," he added.

The Chemical Activity Barometer has four primary components, each consisting of a variety of indicators: 1) production; 2) equity prices; 3) product prices; and 4) inventories and other indicators. During June, the components were mixed, with production flat, equity prices down, and product prices and inventories up.

Though the production indicator was flat in June, plastic resins used in consumer and institutional applications were stronger, volumes of performance chemistry used in industry were better, and US exports are growing. Continued strength in electronic chemicals is encouraging, as the semiconductor industry’s early place in the supply chain makes it a bellwether of the industrial cycle.

Gains in oilfield chemicals suggest that the boom in unconventional oil and gas will continue to progress, contributing to the overall growth of the US economy. Additionally, of the 28 specialty chemical sectors monitored, most are expanding, with particular strength shown in nearly half.

The Chemical Activity Barometer is a leading economic indicator derived from a composite index of chemical industry activity. The chemical industry has been found to consistently lead the US economy’s business cycle given its early position in the supply chain, and this barometer can be used to determine turning points and likely trends in the wider economy.

Favorable oil-to-gas price ratios driven by the production of natural gas from shale continue to drive a renewed US competitiveness that is boosting exports and driving greater domestic investment, economic growth and job creation within the business of chemistry.
MRC

MOSCOW (MRC) -- Wacker, the Munich-based chemical company, will adjust the prices for food-grade polyvinyl acetate (PVAc) globally due to sharply rising raw material costs, as per the company's statement.

The price will increase by up to 30%, or as customer contracts allow.

This measure has been necessitated by the ongoing high costs for vinyl acetate monomer (VAM), a crucial raw material for the manufacturing of Wacker’s PVAc solid resins. The increase will be effective immediately and persist until further notice.

"Within the last six months, prices for vinyl acetate monomer have sharply increased and temporarily almost doubled in Europe. Until the situation on the raw material market eases, we will have to add a surcharge to our food-grade PVAc solid resins prices to partially compensate our increased costs. Despite our continued efforts to optimize cost structures and productivity, the current market situation makes a price adjustment inevitable", explains Christian Hauk, Business Director for Gum at WACKER BIOSOLUTIONS.

As MRC wrote previously, Wacker Polymers, a division of Wacker Chemie AG, increased its prices for VINNAPAS vinyl acetate-ethylene (EVA) and VINNOL ethylene-vinyl chloride-based (EVCL) copolymer dispersions in Europe, the Middle East and Africa (EMEA), effective April 1, 2014, Wacker implemented a price increase of up to EUR70 per ton. This measure has been necessitated by the continued increase in raw-material cost.

Wacker Chemie AG is a worldwide operating company in the chemical business, founded 1914. The company is controlled by the Wacker-family holding more than 50 percent of the shares. The corporation is operating more than 25 production sites in Europe, Asia, and the Americas. The product range includes silicone rubbers, polymer products like ethylene vinyl acetate redispersible polymer powder, chemical materials, polysilicon and wafers for semiconductor industry.
MRC

MOSCOW (MRC) -- Arkema, a France-based chemical manufacturer, has expanded its product range of Evasin EVOH (ethylene vinyl alcohol) copolymers with two new grades containing 44% of ethylene, as per the company's press release.

Arkema now offers a wide range of EVOH from 29% to 44% ethylene content that can be used for most barrier films applications.

These two new grades of Evasin EVOH contains 44% of ethylene. The high level of ethylene brings excellent balance of barrier properties and processing stabilities. These grades can be processed by single-bubble or double-bubble blown film extrusion for heat shrink applications. Evasin 4405F and Evasin 4451F differs by their melt flow index.

EVOH is a specialty copolymer with very high barrier properties to gas (oxygen, carbon dioxide), aromatics and hydrocarbons. These characteristics, together with excellent transparency and good processability, have made this the reference product among barrier polymers, in particular for multilayer food packaging, automotive fuel tank and heating pipe markets.

Since 2009, Arkema is the exclusive distributor for Evasin EVOH in Europe and has become the only resin supplier able to offer both Orevac tie layer and Evasin EVOH barrier material. Arkema is now able to offer full solutions to all of its customers producing multilayer barrier films.

As MRC reported earlier, in April 2014, Arkema developed two new grades - Luperox organic peroxides and Kynar Flex PVDF resins - specifically designed for electric and electronic wires and cables applications.

Arkema with annual revenue of EUR6.4 billion is a leading European supplier of chlorochemicals and PVC. Kynar and Kynar Flex are registered trademarks of Arkema Inc. Arkema operates 11 organic peroxide plants on the three continents.
MRC

MOSCOW (MRC) - Exports of polycarbonate (PC) from Russia to foreign markets declined by 46% in January-May 2014, compared with the previous year and were 4,400 tonnes, according to MRC DataScope report.

The only Russian PC producer, Kazanorgsintez (KOS) reduced its exports in the reported period. This was first of all due to the increase in domestic prices for imported goods, as well as a seasonal surge in demand in the sector of extrusion grades, the peak of which occurred for the mid-May.

Converters did not have opportunity to buy imported material because of the working capital shortage. In this connection PC from Kazanorgsintez was in high demand, as the company offered material at a more reasonable price.

The producer sold practically all PC volumes in the domestic market January-May, reducing its export volumes. The company produced 30,700 tonnes of PC in January-May 2014, where only 14% (4,400 tonnes) of which were exported to the foreign markets.

It is important to note that for export markets were supplied mainly injection moulding grades PC (about 80% from the total deliveries). Kazanorgsintez produced mainly extrusion grades PC over the reported period (81%).

MRC

MOSCOW (MRC) -- Foster Wheeler has been awarded a contract by Glencore Oil Projects for the engineering and material supply of a steam reformer heater for hydrogen production for the Orsknefteorgsyntez refinery at Orsk, Russia, said Hydrocarbonprocessing.

The value of Foster Wheeler’s contract was not disclosed and was included in the company’s first-quarter 2014 bookings. The heater will be based on Foster Wheeler's Terrace Wall design. Foster Wheeler’s scope of work is scheduled to be completed in the second quarter of 2015.

This latest award follows Glencore’s award to Foster Wheeler of a Terrace Wall visbreaker heater for this refinery in 2013. "We have a long and very successful track record in designing and supplying heaters for the Russian market, and we are very pleased to have received this award, which constitutes another vote of confidence in the quality and reliability of our heaters," said Roberto Penno, CEO of, Foster Wheeler's global engineering and construction business.

Foster Wheeler's Terrace Wall reformer is characterized by a firing arrangement and sloped-wall radiant section design that, together, enable long catalyst tube life (often in excess of 100,000 hours) and deliver the flexibility to extend a reformer's operating envelope. This often allows production of hydrogen in excess of the design capacity of the hydrogen production unit, which may in turn deliver additional economic benefits.

Foster Wheeler's reformers can operate with ultra-low-NOx burners to meet tightening environmental emission standards worldwide, according to company officials. Foster Wheeler has now supplied over 200 Terrace Wall steam reformers to the refining and petrochemical industries in more than 40 countries.

As MRC wrote before, Foster Wheeler has signed an engineering, procurement and construction management (EPCm) services agreement with BOC, a member of The Linde Group, for the installation of replacement heat exchangers at BOC’s Teesport facility in northeast England.
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