HDPE imports to Russia fell by 27% from January to May 2015

MOSCOW (MRC) -- The overall imports of high density polyethylene (HDPE) totalled 71,500 tonnes over the first five months of 2015, down by 27% year on year. Film grade and pipe grade polyethylene (PE) accounted for the greatest fall in imports, according to MRC DataScope report.

In May, Russian companies virtually maintained the April volume of HDPE imports, it was 14,400 tonnes. The overall HDPE imports were 71,500 tonnes from January to May 2015 versus 98,500 tonnes a year earlier. All consumption sectors, except for injection moulding sector, accounted for lower imports, while pipe grade and film grade PE accoutned for the largest decrease in imports.

The supply structure by consumption sectors looks the following way over the stated period.

Last month's imports of HDPE for pipe extrusion rose to 1,700 tonnes from 900 tonnes in April. Russian companies increased their PE purchasing in foreign markets on the back of the rouble strengthening, but in most cases they faced limited export quotas from European and Asian producers. The overall imports of pipe grade PE into Russia totalled 7,400 tonnes over the first five months of 2015 versus 24,300 tonnes a year earlier. Weak demand for finished products and high HDPE prices in foreign markets compared with Russian producers' prices were the key factors that affected imports negatively.

May imports of HDPE for extrusion coating of large diameter steel pipes rose to 6,400 tonnes from 3,600 tonnes a month earlier. The overall imports of this PE grade decreased to 24,700 tonnes over the stated period from 26,700 tonnes over the same period of 2014. The main reason for that was the increased domestic production of this PE grade by Metakley.

Las month's imports of injection moulding HDPE fell to 3,200 tonnes from 5,800 tonnes in April partially because of lower shipments from Uzbekistan and weaker demand from local producers of caps for PET containers. Imports of injection moulding PE increased to 20,200 tonnes from January to May 2015, up by 1% year on year.

May imports of HDPE for extrusion blow moulding (EBM) totalled 1,200 tonnes versus 2,500 tonnes a month earlier because of lower supplies from Uzbekistan. The overall imports of this PE grade to Russia were about 11,000 tonnes over the said period versus 14,500 tonnes a year earlier.

The overall imports of HDPE to other consumption sectors, including the film extrusion sector, totalled 8,300 tonnes from January to May 2015 versus 13,100 tonnes in 2014.

MRC

MOSCOW (MRC) -- Formosa Chemicals & Fibre Corp (FCFC), a Taiwanese producer of polyvinyl chloride (PVC) resins and other intermediate plastic products, is likely to shut its No. 2 paraxylene (PX) unit for maintenance turnaround, as per Apic-online.

A Polymerupdate source in Taiwan informed that the unit is planned to be taken off-stream in mid-July 2015. It is likely to remain off-stream for around one month.

Located at Mailiao in Taiwan, the unit has a production capacity of 580,000 mt/year.

As MRC wrote before, FCFC started a new phenol-acetone plant in China in early January 2015. Located in Ningbo, China, the plant has a phenol capacity of 300,000 mt/year and acetone capacity of 180,000 mt/year.

Formosa Chemicals & Fibre Corporation (FCFC) is a subsidiary of Formosa Plastics Group, the largest private owned enterprise in Taiwan, with annual revenue of USD13.5 billion.

Formosa Plastics Corporation is a Taiwanese company based in Taiwan that primarily produces polyvinyl chloride (PVC) resins and other intermediate plastic products.
MRC

MOSCOW (MRC) -- Egyptian Petrochemicals (ECHEM) is planning to complete technical and financial studies of its proposed USD2bn complex to produce propylene and its derivatives, said Chemicals-technology.

The propylene complex will be built on its land in Alexandria. Daily News Egypt cited a senior ECHEM official as saying that the complex will utilise the abundant amount of propane in the region."The purpose is to produce value-added products through different phases to cover local demand and export surplus," the official added.

"The purpose is to produce value-added products through different phases to cover local demand and export surplus."

Alexandria-based Egyptian Natural Gas Company (Gasco) will supply propane to the facility, which is expected to produce 250,000t a year of propylene, which will be processed into intermediate as well as final derivatives.
The propylene complex is planned to be completed by 2020.

ECHEM said it will submit the technical and financial studies results to Boubyan Petrochemicals.

In February, ECHEM and Boubyan Petrochemicals signed a memorandum of understanding to set up petrochemical and phosphate fertiliser projects worth around USD6.8bn.

As part of the partnership, a petrochemical and refinery plant, formaldehyde plant and phosphate and compound fertiliser complex will be built.

The formaldehyde facility in Kafr El-Sheikh will produce 70,000t of urea formaldehyde, polyvinyl acetal, phenol-formaldehyde and melamine-formaldehyde. It will utilise 30,000t of methanol a year.

Planned to be built in Abu Tatur in New Valley, the Phosphate Misr and Abu Qir Fertilizers phosphate and compound fertiliser complex will produce 500,000t of phosphoric acid and phosphate fertilisers.

As MRC reported earlier, last year, Egypt proposed three petrochemical projects to the UAE for a total investment of USD540 mln. The projects included establishing a factory to produce bio-ethanol from molasses, the output of which would reach 100,000 tons of molasses annually, with investment in the project totaling USD250 mln. The project would be implemented in the next fiscal year (FY), according to the ministry’s plan.
MRC

MOSCOW (MRC) -- Jakarta-listed PT Chandra Asri Petrochemical (CAP), the country’s largest petrochemical producer, is in plans to restart its naphtha cracker, reported Apic-online.

A Polymerupdate source in Indonesia informed that the cracker is planned to be restarted towards this weekend. It was shut on June 2, 2015 owing to technical issues.

Located in Anyer, Indonesia, the cracker has an ethylene capacity of 600,000 mt/year and propylene capacity of 306,000 mt/year.

As MRC informed previously, in March 2015, Chandra Asri Petrochemical filed a request with the Indonesian government seeking additional tax incentives for a polybutadiene (BR) plant under construction in Cilegon, Indonesia.

CAP's Petrokimia Butadiene Indonesia (PBI) subsidiary and Michelin in 2013 formed Synthetic Rubber Indonesia as a joint venture to build a USD435-million BR facility in Cilegon. The plant will produce BR using a neodymium catalyst and solution styrene butadiene rubber, with feedstock supplied by PBI. Production is scheduled to begin in 2017.

Chandra Asri Petrochemical (CAP) is the largest vertically integrated petrochemical company in Indonesia with facilities located in Ciwandan, Cilegon and Puloampel, Serang in Banten Province. CAP is Indonesia's premier petrochemical plant incorporating world-class, state-of-the-art technology and supporting facilities. At the heart of CAP lies the Lummus Naphtha Cracker producing high quality Ethylene, Propylene, Mixed C4, and Pyrolysis Gasoline (Py-Gas) for the Indonesian as well as regional export markets.
MRC

MOSCOW (MRC) -- Shell Chemical has completed the purchase of land from Horsehead Holding for its planned US$4 bln ethane cracker plant in Monaca, Pennsylvania, as per Chemicals-technology.

Located in the Potter and Center townships in Beaver County, the 1,000ac site was home to Horsehead's zinc smelter facility. Financial terms of the transaction have not been disclosed.

The site boasts access to liquid-rich natural gas resources and water, road and rail transportation infrastructure, power grids, and sufficient land to accommodate facilities and potential future expansions. Shell has consistently noted that receipt of the necessary permits is required before we can reach a final investment decision.

The company has demolished the zinc smelter, and is continuing with the site development. Shell spokesman Michael Marr said that the land purchase forms a key step in the ongoing permitting process.

"Shell has consistently noted that receipt of the necessary permits is required before we can reach a final investment decision," Marr said earlier.

In June 2011, the company unveiled plans to build a petrochemical complex in the Appalachian region. Shell is considering building polyethylene units to meet increasing demands in the region.

"We look forward to working with the communities in Pennsylvania and the gas producers across Appalachia as we continue with our efforts to develop the proposed petrochemical complex," the company said on its website.

As MRC informed earlier, Royal Dutch Shell has completed a revamp and upgrade of its Singapore ethane cracker. The project increased production for the 800,000-tpy ethylene plant on Bukom Island by 20%. The ethylene and olefins unit is also integrated with Shell’s 500,000-bpd refinery.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.

MRC