Chinese tire firms urge government to fight US action

MOSCOW (MRC) -- The tire industry has urged the government to take decisive measures against the anti-dumping and countervailing duties imposed on tires imported from China after the United States Department of Commerce claimed on 24 Nov. 2014 that Chinese manufacturers benefited from government subsidies, according to GV.

The US government said tires for passenger cars and light trucks produced in China were unfairly subsidized and should be subject to punitive tariffs ranging from 17.7% to 81.3%, depending on the manufacturer.

Fan Rende, honorary chairman of the Beijing-based China Rubber Industry Association, said US tire makers are aware that high labor and material costs are the biggest obstacles to generate profit. The move shows that the US is adopting a tough stance on China’s tire industry.

The association is discussing solutions and appealing to the government to take measures to protect the interest of Chinese tire makers in the US market.

As MRC reported earlier, on 8 September 2014, China ended its anti-dumping duties on styrene-butadiene-rubber (SBR) imports from Russia, Japan, and South Korea, effective Monday. In 2009, China extended its 4-38% anti-dumping duties on SBR imported from the countries by five years. The tax expired in September, and the ministry has been reviewing whether to extend it. The ministry said the domestic industry urged it not to continue imposing the anti-dumping duty and, therefore, it decided not to continue it.
MRC

Ufaorgsintez adjusted contract PE and PP prices

MOSCOW (MRC) -- Ufaorgsintez, owned by United Petrochemical Company, has announced an adjustment in the contract prices of polypropylene (PP) and low density polyethylene (LDPE) for shipments from 1 December, according to ICIS-MRC Price report.

The company's customers said prices of 108 grade and 158 grade LDPE fell by Rb1,700/tonne, whereas prices of shrinkable film PE dropped by Rb1,300/tonne from the level as of 17 November 2014.

At the same time, prices of all PP grades, including homopolymer of propylene (homopolymer PP) and block copolymers of propylene (PP-impact), grew by Rb1,000/tonne.

Ufaorgsintez OAO was founded in 1956 and is based in Ufa, Russia. In 1984 the company was incorporated. Ufaorgsintez manufactures organic synthesis products in Russia and Europe. Its products include ethylene, propylene, ethanol, cumol, ethyl benzol, phenol, acetone, copolymer rubber, polyolefines (polyethylene and polypropylene), polyvinyl chloride and polyethylene items, thinners, and dilutants. As of January 22, 2010, Ufaorgsintez operates as a subsidiary of Bashneft Joint Stock Oil Company. "United Petrochemical Company" (UPC) owns 87.76% of Ufaorgsintez's registered capital. Bashneft sold Ufaorgsintez's stake to UPC in May 2013.

According MRC ScanPlast, Ufaorgsintez's overall output of PE and PP totalled 67,800 tonnes and 100,700 tonnes, respectively, over the first ten months of 2014.
MRC

Arkema increases prices of a range of organic peroxides

MOSCOW (MRC) -- Arkema, a France-based chemical manufacturer and the world’s second leading producer of organic peroxides, will implement from 1 December 2014, or as contracts allow, a price increase on its Luperox organic peroxides used in the unsaturated polyester resins segment and commercialized in Europe, Middle East and Africa, as per the company's press release.

This is necessary to offset the raw material cost increases.

The price increase will vary from 5 to 10%, depending on the grade, and will concern exclusively the range of the methyl-ethyl-keton peroxides and their blends.

The methyl-ethyl-keton peroxides are used as curing agents in unsaturated polyester resins - or thermoset resins - very commonly used in the composite industry, mainly in the sectors of transport, sailing boats and in wind turbine blades.

As MRC reported previously, in early 2014, Arkema announced the construction of a new organic peroxide plant on its Changshu site in China. This investment helped to double the site’s production capacity. By doubling its production capacity in China, Arkema will continue to support the strong growth in the organic peroxide market in Asia, a region in which the Group is also a producer in India, South Korea and Japan. The new Changshu plant is due to come on stream in early 2016.

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

Evonik increases prices for VESTAMIN

MOSCOW (MRC) -- Evonik Industries has announced a global price increase for the product group VESTAMIN up to 9%, effective 1 January, 2015, as per the company's statement.

This increase will apply to all orders shipped on or after this date and as contracts allow.

This price adjustment is necessary to ensure that Evonik remains a reliable, quality provider to our customers in a very challenging environment.

Evonik's Crosslinkers Business Line remains committed to continue the high level of innovation and service that customers have come to expect.

As MRC informed earlier, Evonik Industries is paving the way for a new technology whose applications include automotive finishes that are more scratch-resistant than ever before. The specialty chemicals company has developed an industrial-scale method for producing silane-modified binders for automotive finishes. The advantage of these silane-modified binders: silane groups increase crosslinking density, making it possible to create automotive finishes that are flexible yet harder, leading to improved scratch resistance.

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world. In fiscal 2013 more than 33,500 employees generated sales of around EUR12.9 billion and an operating profit (adjusted EBITDA) of about EUR2.0 billion.
MRC

Dow Corning considers exit from 71-year silicone JV with Dow Chemical

MOSCOW (MRC) -- Dow Chemical said its partner in a 71-year-old silicone venture that's on pace for USD6 billion of annual sales wants to sell its half of the business, and Dow could be the buyer, as per Hydrocarbonprocessing.

Corning Inc. has "more priorities" than the Dow Corning partnership since it bought Samsung Electronics Co.'s stake in a separate venture, Dow Chemical CEO Andrew Liveris said yesterday in a presentation to investors.

"We are both very anxious to find the best owner mindset there, without hurting Dow Corning," Liveris said. "And who the best owner is, I'll let you reach your own conjecture. I don’t want to create a headline out of this answer, but I do want to say it is part of the conversation."

Daniel F. Collins, a Corning spokesman, said the company is "happy with our ownership stake" in the venture. Rachelle Schikorra, a spokeswoman for Dow Chemical, said Liveris "didn't say anything definitive" about buying the partner’s stake.

John Roberts, an analyst at UBS Securities who attended the investor meeting, said in a note that he believes Dow is trying to buy Dow Corning.

As MRC wrote before, Hanwha Chemical, one of South Korea's leading polyethylene and polyvinyl chloride producers, has picked Credit Suisse to advise on possible purchases from Dow Chemical's chloro-alkali business but its interest is still in the early stages. The spokesman for Hanwha said no details had been decided.

The Dow Chemical Company is an American multinational chemical corporation. As of 2007, it is the second-largest chemical manufacturer in the world by revenue (after BASF) and as of February 2009, the third-largest chemical company in the world by market capitalization (after BASF and DuPont). Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.
MRC