European PE export prices for FSU markets to rise

MOSCOW (MRC) -- This week some European producers have declared growth of polyethylene (PE) export prices for FSU markets, due to rising prices of PE in the Asian market, high oil prices and the coming maintenance shutdowns, according to ICIS-MRC Price report.

Cheap imports from Asia and the Middle East has forced European producers to decrease significantly PE prices for the domestic market in June - July. Two months later after May peak, contract PE prices fell by EUR 120-140/t. A similar price decline also affected the export prices in FSU markets, which were reduced in the first half of July by some producers to EUR 1.050 - 1.120 / t, FCA for LDPE, and EUR 1.020 - 1.100 / t, FCA for HDPE.

In July, Asian markets showed increasing PE demand which along with growing oil prices led to increasing prices of polyethylene. Over the three weeks of July, PE prices in Asia rose by USD 50-80 / t. Growing polyethylene prices in the Asian market made some European producers change their pricing policies. Increasing price trend is also strengthened by the coming maintenance shutdowns of plants in the Eastern Europe, weakening rate of euro against dollar and high oil prices.

As a result, this week some producers from Eastern Europe have raised their export prices of polyethylene. Rising prices of LDPE and HDPE in the second half of July are within the range of EUR 20-80/t.


Oil prices were mixed in Asian trade

(ABS-CBNNews) -- Oil prices were mixed in Asian trade Monday as news of European banks passing closely-watched stress tests counteracted concerns over the US government's debt problems, analysts said. New York's main contract, light sweet crude for delivery in August, fell nine cents to USD 97.15 per barrel. Brent North Sea crude for September delivery was up 22 cents to USD 117.48.

"Oil is sort of holding steady, it's really pulled in all different directions," said Victor Shum, senior principal of Purvin and Gertz energy consultants in Singapore.

"On the one hand, the news late last week that most European banks have passed the stress tests... has supported crude futures," he told AFP.

The European Union's banking regulator the European Banking Authority on Friday announced that only eight of 91 banks had failed stress tests, a better than expected result amid the region's escalating debt woes.

Crude traders had been awaiting the results of the tests to gauge the impact of the eurozone's broadening debt crisis, which could potentially cut into European energy demand.

However, persistent worries of a political impasse in the United States over its debt crisis continued to hang over crude prices, Shum said.


White Martin signed a gas supply contract with Braskem

(Plastemart) -- Praxair Inc.'s Brazilian arm-White Martin, recently signed a gas supply contract with Braskem, the largest petrochemical company in the Americas and the world's largest biopolymers producer. The 15-year agreement requires White Martin to supply nitrogen and oxygen to Braskem's expanded polyvinyl chloride (PVC) unit in the state of Alagoas, in Brazil's northeast region. The company will construct a new cryogenic on-site air separation plant with a daily capacity of 200 tons.

The project, with an estimated value of USВ 635 mln, is Braskem's single largest investment in Brazil. Operations at the new industrial unit are likely to start by the H1-2012.


Foster Wheeler subsidiary inks MOU to form jointly-owned company with SOCAR

(Plastemart) -- Foster Wheeler AG subsidiary of its Global Engineering and Construction Group has signed a Memorandum of Understanding (MoU) to cooperate to form a jointly-owned company with The State Oil Company of Azerbaijan Republic (SOCAR) in the Republic of Azerbaijan. The new jointly-owned company will focus on providing process, engineering, procurement, construction supervision and project management services associated with the development of the new oil, gas processing and petrochemical complex. The new entity will provide the same services for upstream, midstream and downstream oil and gas projects developed by SOCAR both in the Republic of Azerbaijan and in other countries.

In line with the principles outlined in the MoU, Foster Wheeler and SOCAR will prepare a joint action plan for the establishment and incorporation of the new company, with its headquarters in Baku.


Sibur increased spending on personnel, safety and environmental protection in 2010

(SIBUR) -- Sibur published its social report for 2010 on the official company website.
The holding company's consolidated social spending amounted to more than RUB 1.95 billion, an increase of 14% on 2009. This included programme budgeting for voluntary medical insurance, covering more than 90% of the companies of the holding, and amounted to more than RUB 176 million. Payments made by Sibur to charitable causes exceeded RUB 513 million in 2010, of which RUB 293 million was directed through a regional partnership. Growth of average wages for the company as a whole amounted to 14%, with labour productivity rising by 16%.

Sibur's social report for 2010 is dedicated to a system of selecting, developing and motivating company personnel. Among the priorities of this personnel policy was to further increase labour productivity, build up competencies to a global level and to effectively motivate employees to achieve this result. Company spending on continuing training and staff-development programmes more than doubled, and exceeded RUB 230 million.

Sibur considers the most important part of its environmental mission to be the processing of associated petroleum gas (APG), which is formed during oil extraction. According to figures for 2010, Sibur allocated RUB 2.6 billion for the implementation of measures aimed at protecting the environment. That represents a 97% increase on 2009 figures. At the same time, the amount of spending required as a result of a negative environmental impact decreased by 14% in 2010, compared with the previous year. Emissions of pollutants into the air decreased in 2010 by 11%.