PP imports to Kazakhstan rose by 32%, export - by 42% from January to October 2014

MOSCOW (MRC) -- Imports of polypropylene (PP) into Kazakhstan surged by 32% to 16,100 tonnes. Export sales of Kazakh PP increased to 19,000 tonnes because of the increased production, reported MRC analysts.

October PP exports to Kazakhstan rose to 2,700 tonnes versus 1,900 tonnes a month earlier because of higher shipments from Russia. The overall exports of propylene polymers to the local market rose to 16,100 tonnes from January to October 2014 versus 12,200 tonnes over the same period of 2013.

October exports of propylene homopolymers (homopolymer PP) were 2,300 tonnes versus 1,700 tonnes in September because of higher shipments of Russian producers. The overall imports of homopolymer PP to Kazakhstan increased to 12,200 tonnes over the first ten months of the year versus 7,500 tonnes over the same period of 2013. The overall imports of propylene copolymers totalled 4,000 tonnes over the stated period compared to 4,700 tonnes a year earlier.

This year, Neftekhim LTD, a local PP producer, increased its production by reducing the dates of the plant's shutdown. As a consequence, export sales of Kazakh PP also increased. October exports were 2,100 tonnes of homopolymer PP (2,300 tonnes in September). About 19,000 tonnes of homopolymer PP were shipped to foreign markets from January to October 2014, up by 42% year on year.

As reported earlier, Neftekhim LTD plans to launch the unit of PP granulation by the end of 2014, whereas before PP was produced as a powder. The company also intends to expand its range of PP grades, as well as the geography of exports.
MRC

MOSCOW (MRC) - Total imports of polyethylene terephthalate (PET) in Kazakhstan increased to 47,400 tonnes in the first ten months of the year, up 2% year on year, according to MRC.

The main PET importer in the country remained China. The share of Chinese brands in the local market reaches 60% (28,100 tonnes).
However, this year the Kazakh consumers increased purchases of Korean PET, decreasing purchases of the material from China. Imports of Korean PET occurred for 40% from the total PET imports in the country. A year ago, imports of Korean brands did not exceed 25% from the total consumption of PET chips. Total imports of Korean PET in Kazakhstan increased to 19,200 tonnes in January-October 2014.

According ICIS-MRC Price Report, last week, spot prices of PET in Kazakhstan were heard in the range of Tenge316,000-320,000/tonne CPT, including VAT.
MRC

MOSCOW (MRC) - Imports of polyethylene in Kazakhstan decreased by 8% in the first ten months of the year. The demand has weakened only for high density polyethylene (HDPE) over the reported period, while demand for other PE grades increased significantly, according to MRC analysts.

October PE imports to Kazakhstan totalled 10,900 tonnes, compared with 13,700 tonnes a month earlier. Total PE imports in the country decreased to 91,100 tonnes in January - October 2014, compared with 98,800 tonnes year on year. Demand for HDPE from the local pipe producers has decreased by 16%, while demand for low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) increased.

Structure of PE supply in the country in the reporting period was as follows.

October imports of HDPE in the country seasonally decreased to 8,700 tonnes, compared with 10,600 tonnes in September. Local producers of PE pipes significantly reduced their purchases of material. Total HDPE imports in Kazakhstan decreased to 69,700 tonnes in the first ten months of this year, compared with 83,500 tonnes year on year.

LDPE imports to Kazakhstan in October remained practically steady from the September's levels, totalling 1,800 tonnes. Peak of imports supplies occurred for July - August. Total imports of LDPE in the country were about 17,000 tonnes in January - October 2014, compared with 12,100 tonnes year on year. Key suppliers of LDPE in the country remained Russian producers with a share in total supplies about 93%.

October imports of linear polyethylene was just over 300 tonnes, compared to 1,400 tonnes in September. Some market participants said that in order to reduce the final cost, under the guise of LLDPE was delivered Iranian pipe HDPE (import duties of LDPE - 6.5%, on LLDPE - 0%).
Total LLDPE imports in the country were 4,500 tonnes in the first ten months of the year, up 36% year on year. Key suppliers of LLDPE in the country were producers from Asia and Uzbekistan.


MRC

MOSCOW (MRC) -- Celanese Corporation, a global technology and specialty materials company, will increase prices for a number of products effective January 1, 2015, or as contracts allow, reported the company on its site.

The price increase will be valid for the following products in Americas and Europe:

Product North America Central and South America Europe
USA, Canada Mexico

Acetic Anhydride no inrease no increase no increase EUR75 per metric ton

Paraformaldehyde USD0.04/lb USD0.04/lb USD90 per metric ton no increase

This price increase affects all applications including, but not limited to, adhesives, paints and coatings, building products, nonwovens, glass fiber, carpet, paper and textiles.

As MRC wrote previously, Celanese Corporation increased its November prices of vinyl acetate-based emulsions sold in the Americas. Thus, PVAc homopolymer, vinyl acetate ethylene (VAE) and vinyl acrylic emulsions rose by up to USD0.05/wet pound effective November 1, 2014, or as contracts allowed. This increase is attributed to the continued pressures on raw materials, notably vinyl acetate monomer (VAM), and freight.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Texas, Celanese employs approximately 7,400 employees worldwide and had 2013 net sales of USD6.5 billion.
MRC

MOSCOW (MRC) - SIBUR Holding announced a price increase of polypropylene (PP) and low density polyethylene (LDPE) by Rb1,000-1,500/tonne, effective from 1, December, as per ICIS-MRC Price Report.

The reason for the price rise was weakening of the rouble against the dollar and higher prices in foreign markets.

All PP prices from SIBUR's subsidiaries - Tobolsk-Polymer, Tomskneftekhim, Neftekhimiya and Poliom were increased by RB1,500/tonne, compared with the level of the late November.

Prices for LDPE from Tomskneftekhim increased by Rb1,000/tonne.

As it was written earlier, Ufaorgsintez has also adjusted its PP and LDPE prices from 1, December.

SIBUR owns three pyrolysis units, two plants for the production of base polymers, producing low density polyethylene (LDPE) and polypropylene (PP), three factories for the production of synthetic rubber, producing basic and special rubbers and thermoplastic elastomers, and 13 enterprises producing a wide range of semi-finished products of plastics and organic synthesis, including polyethylene glycols, alcohols, BOPP films, expandable polystyrene, acrylates, and flexible PVC.

SIBUR's production capacities for base polymers made 995,000 tonnes/year, synthetic rubber - 678,000 tonnes/year, plastics and organic synthesis products - more than 1 mln tonnes/year on 31, December 2013.
SIBUR's revenues in 2013 were Rb269.8 bn, rate of EBITDA - Rb78.9 bn, profitability on EBITDA - 29.2%.
MRC