PVC price in external markets to decrease for the Russian companies

(ICIS-MRC) -- Chinese and American producers keep on reducing PVC export prices. Along with this, weakening of the Russian ruble against dollar is evened, as per ICIS-MRC Price report.

Chinese and North American producers declared a further decrease of export prices for suspension PVC in October. On average, declared reduction of prices makes 3-4% compared to September. At the same time flowing devaluation of the Russian ruble against dollar completely evens reduction of exports prices for PVC.

Gradual weakening of the Russian rouble rate against dollar started from the first decade of August. Over 1,5 month, dollar/ruble rate grew by 13%. On 15 September mass media informed about devaluation of the Russian ruble which is possible, as per pessimistic forecasts of the Ministry of economy, at the rate of 40 against dollar.

Serious oversupply of PVC to the Russian market in July-August made Russian producers and trade companies considerably reduce prices. In early September the resin prices went on cheapening in the Russian market. But starting from the mid-week on the back of good demand for PVC in separate sectors of consumption and reduced oversupply as well as weakened rate of ruble against dollar, spot prices went up. An average price of the Chinese and American PVC this week has grown to RUB 44.000 - 45.000/t, including VAT, СРТ Moscow.

Devaluation of the ruble also contributed to the strengthened demand in the Russian market. Some companies increased purchases, thus securing further growth of spot prices as a result of growing dollar rate. Some marker players don't exclude a further correction of PVC spot prices in the Russian market at the expense of dollar rate: it is obvious that October reduction of export prices from main suppliers is completely evened by the Russian ruble devaluation.

MRC data: the Russian market of PVC completely depends on imports. Overall imports of suspension PVC to the Russian market in August hit a record and made 57 KT. Over the eight months, overall imports of suspension to Russia reached 360 KT which is compared to PVC-S production in Russia - 356 KT.


Indorama Ventures to buy Wellman International's recycling business in Europe

(Reuters) - Thailand's Indorama Ventures Pcl said on Wednesday it had agreed to buy Wellman International's recycling business in Europe from Aurelius AG as part of an expansion drive to meet demand for the recycling of consumer products.

Indorama, the coutry's biggest producer of chemicals for plastic bottles and polyester, is the latest big Thai firm to announce an overseas acquisition, helped by a rise in the baht in recent years.

The acquisition, which includes Wellman's MJR Recycling BV, is expected to be completed this year and will provide both access to recycling technology and potential technology transfer to its Asian assets, it said in a statement. It gave no details about the value of the deal.

Wellman is Europe's largest recycler of PET (polyethylene terephthalate) bottles and a maker of polyester staple fibre and recycled PET products. It has three production facilities in Europe with output of over 153 KTa.


Hanwha Chem says abandons Sulfindo Adiusaha bid

(Reuters) - South Korea's Hanwha Chemical said it abandoned a plan to buy Indonesian chemical producer Sulfindo Adiusaha, confirming Reuters' earlier report.

Hanwha said in a regulatory filing on Tuesday that it had considered buying the Indonesian petrochemical firm but the potential deal was suspended due to differences of opinion, it said, without elaborating.


Asian acetone spot prices hit record highs

(ICIS) -- Asian acetone spot prices hit record highs and are likely to continue rising on the back of tight supply and steady demand from the downstream solvents sector, market sources said on Wednesday.

Acetone prices have gained over 10% from mid-July levels to the latest assessment of USD 1,180-1,220/tonne (EUR 861-891/tonne) CFR (cost and freight) China on 16 September, according to ICIS data. An expected demand pick-up from the downstream solvents sector in October may fuel further price gains in the weeks ahead.

Acetone imports in China in May and June were down 41.6% and 16% year on year, respectively, according to data from the China Customs. A dearth of deep-sea cargoes was the major reason behind the sharp declines in import volumes, sources said.

Meanwhile, a buying spree of deep-sea material has been going on since the start of September, with over 10,000 tonnes heard to have changed hands every week.


TDI sellers from South Korea and Europe locked in price war in Nigeria

(ICIS) -- South Korean and European sellers of toluene di-isocyanates (TDI) are currently locked in a tough price competition in Nigeria, given sluggish demand at their traditional main markets, industry sources said on Wednesday. Nigerian TDI importers have retreated to the sidelines, expecting further declines in prices, they said.

Prices were discussed at USD 2,280-2,450/tonne (EUR 1,664-1,789/tonne) CFR (cost and freight) Lagos this week, down USD 100-170/tonne from two weeks ago, market sources said.

Nigeria is the largest TDI market in Africa, where Europe sells material at competitive prices because of geographical proximity.

TDI is used in the production of flexible polyurethane foam, which has applications in upholstered furniture and car seats, among others.

Downstream foamers in Nigeria are currently not in a hurry to restock TDI supply given recent heavy rains in the country, said a key local trader.