Polish Company Obtained Potash from BPC (Belarus)

(zchpolice.pl) -- A Poland-based manufacturer, namely Zaklady Chemiczne Police (ZChP), has obtained potash on a contract basis from BPC (Belarus).

The material was estimated at USD 23.5 (EUR 18.4, PLN 82.86) million.

The product will be forwarded to its new proprietor by early April of this year.

The cargo is to be carried by sea on a ship.


Middle East PP and PE market: prices unlikely to change

(chemmonitor) -- Polyethylene (PE) and polypropylene (PP) markets in the Middle East will witness good margins due to firm values for a raw material this year. Meanwhile, PP and PE costs may be permanent with a tendency to decrease on the back of poor consumption.

In Saudi Arabia prices for ethane gas are stable. They are negotiated at USD 0.76 (EUR 0.61) per MMBtu. Values for Saudi propane gas demonstrate a downward surge.

PE producers will broaden the boarders of their resin market on profitable prices.


China's domestic LDPE film supply reduced, prices firm up

(ICIS) -- China's domestic low density polyethylene (LDPE) film supply decreased this week because of a shutdown at one plant and switching to another product by a second plant resulting in its prices to firm up, industry sources said on Friday.

China Maoming Petrochemical's 250,000tonne/year LDPE unit in Guangdong shut down on 11 January because of equipment failure. The company plans to restart it on 15 January.

On the other hand Yanshan Petrochemical's a 200,000tonne/year LDPE plant in Beijing switched to producing special material for the production of wire and cable insulation sheath on 4 January resulting in reduced supply of LDPE film in the domestic market.

The supply tightening has come at a time when many downstream manufacturers such as the film packaging industry are planning to purchase LDPE to shore up inventory ahead of the Lunar New Year holidays that start from 22 January.

As a result China's domestic LDPE film offering price rose by Chinese yuan CNY50-100/tonne (USD 8-16/tonne) to CNY10,600-11,000/tonne EXWH (ex-warehouse) on 13 January from CNY10,500-10,950/tonne EXWH on 11 January.


Initial Europe January MEG up by EUR 54/tonne

LONDON (ICIS) -- The initial European monoethylene glycol (MEG) contract for January has settled at EUR 1,024/tonne (USD 1,296/tonne), an increase of EUR 54/tonne, a producer said on Thursday.

⌠It is not good but it's not a disaster, a customer said.

The buyer involved in the settlement was not available for comment.

The contract was agreed on a free delivered (FD) northwest Europe (NWE) basis.


Europe styrene off to a sluggish start in 2012 amid weak demand

(ICIS) -- The European styrene market has seen a slow start to the year so far as lacklustre demand from key derivative sectors and some ongoing length is keeping activity muted and prices stagnant, sources said on Thursday.

While benzene prices are gradually creeping up on good demand and upward pressure from crude oil due to supply concerns in light of the tensions in both Iran and Nigeria, slow demand for styrene and polystyrene is keeping the market ⌠uninspiring, according to one source.

January styrene deals were at USD 1,280-1,295/tonne (EUR 1,011-1,024/tonne) FOB (free on board) Rotterdam last week, and bids and offers this week have for the most part stayed within this range.
⌠If benzene keeps pushing, the February styrene contract will have to jump up a fair bit or else [operating] rates will have to be cut, said one player.

The January styrene barge contract was confirmed at EUR 1,214/tonne on an ex-works basis last week, up EUR 120/tonne from the previous month in line with higher raw material costs.

There is also good availability for January styrene in Europe, which is keeping any price rises at bay.
⌠There is some length in the market now that all the plants are running, explained one trader.
Another source said that when the market is long, this has a negative impact on overall liquidity.

However, a robust Asian market is keeping prices from falling significantly. February numbers in the region are currently at USD 1,370-1,390/tonne FOB Korea.

With the arbitrage window to Asia open, any further price drops would lead to material being shipped out of Europe. As a result, January prices have hovered just below the $1,300/tonne mark since last week.

Despite the slow start to 2012, other players remain upbeat.
⌠I think were are going to see a nice contango into March, said one trader.