In 2011 Ukrainian market of PET decreased by 9.6%

MOSCOW (MRC) -- In 2011, the imports of PET granulate to the Ukrainian market declined by 9.6%. The local market still can not reach pre-crisis figures, due to reduced production of beer, soft drinks and mineral water, according to MRC analysts.


In 2011, the Ukrainian market of PET did not meet the expectations of growth. Last year the market capacity of PET made about 150,000 tonnes. This was by 40% less than record figures in 2007, when the Ukrainian producers of PET preforms processed about 250,000 tonnes of granulate. The consumption of the polymer has remained the third year at the level not higher than in 2005.


The last year reduction of PET-containers consumption resulted from the drop in sales in the sectors of finished products. In Ukraine production of beer decreased significantly. The total production of beer in 2011 made nearly 305 mln. dal., which was by 1.6% less year on year. The production of mineral water decreased by 8% to 124 mln. dal. Consumption of carbonated soft drinks declined by 3% and made 142 mln. dal.


The producers of juice were affected most of all. The production in this segment dropped by almost 20%. As per MRC analysts, last year there was an increase in milk and sunflower oil production, but due to a small share in the total consumption of PET preforms this hike was not felt.


Overall consumption of granulate was also affected by the reduction of the average weight of PET preforms. According to Retal company, in 2011 the average weight of the preform became lighter by 2% and made about 34.1 grams.
According to some trading companies, the capacity of the spot market also declined. To sell PET at previous years levels became more difficult. In this regard, many trading companies channelled free cash to other markets of polymers and petrochemicals.


The largest supplier of granulate to the Ukrainian market is China. Last year the Chinese producers supplied about 90,000 tonnes of bottle PET, which was equivalent to 60% in total consumption. At the same time the supply of the Korean PET decreased by 16% to about 16,000 tonnes. Some converters said, that next year they would shift to the purchases of the Middle Eastern and African PET. The shorter logistic distribution and acceptable prices in comparison with Asia benefit to this.


Up to date, Ukraine has been a net importer of PET granulate. There is no PET production in Ukraine. In the nearest future, building of new production lines in Ukraine is not expected. The largest consumer of PET in Ukraine is Retal Group.


MRC

Perstorp is unable to fully meet contractual obligations

(chemmonitor) -- The Sweden-headquartered firm Perstorp was forced to provisionally suspend activity at one of its manufacturing units.

The facility produces chlor-alkali. The closure resulted from a strike at the plant. Shutdown of the unit affected manufacturing rates at the downstream toluene di-isocyanate (TDI) facility.

On 4 February, Perstorp was forced to stop production at its chlor-alkali unit because of the strike and this impacted on its downstream TDI facility.

As a result, availability for its chlor-alkali and TDI products will be limited. TDI supplies are under strict allocation with immediate effect, with a minimum 50% reduction on contractual commitments.


A company source added that there are also allocations of up to 90% for its chlor-alkali products.
The specialty chemical company is trying to minimise any impact on its customers through alternative sourcing, optimisation of stocks and order management.

Perstorp's nameplate capacity at the site is 126,000 tonnes/year for TDI and 170,000 tonnes/year for chlorine.

MRC

Implementation of new propylene project to commence in Zhangjiagang, China

(chemmonitor) -- A new manufacturing unit is to appear in Zhangjiagang (China). The plant will generate propylene from propane.

Its nameplate capacity will be 1.2 million tonnes per year. Oriental Energy, a local maker, will operate the manufacturing facility.

The project has recently obtained permission from environmental authorities.

UOP (USA) was selected to provide production technology to the plant. The technology is based on dehydrogenation.

The parties inked a contract. Financial details were not revealed.

MRC

PP production facility to be opened in India's Mangalore by 2013

(chemmonitor) -- A new polypropylene (PP) production unit is expected to initiate activity in November-December of this year. The unit is situated in Mangalore (India).

Mangalore Refinery, a local, maker owns the plant. The maker initially intended to open the manufacturing unit by July 2012, but decided to postpone the startup.

However, the company did not explain its decision. The facility will generate up to 0.44 million tonnes per year.

Mangalore Refinery is an oil refinery at Mangalore and is a subsidiary of ONGC, set up in 1998. The refinery is located at Katipalla, north from centre of Mangalore city.

MRPL has a design capacity to process 11.82 million metric tonnes per annum and is the only Refinery in India to have 2 Hydrocrackers producing Premium Diesel (High Cetane). It is also the only Refinery in India to have 2 CCRs producing Unleaded Petrol of High Octane.


MRC

Kemira Oyj's published financial statements bullet in 2011

(kemira) -- Kemira Oyj publishes its financial statement bulletin enclosed to stock exchange release.

Kemira reported on Wednesday a 50.6% year-on-year increase in its net profit to EUR37.8m (USD50.4m) in the fourth quarter of last year, despite a surge in raw materials prices.
The firm's revenues slipped by 0.6% year on year to EUR543.3m, while earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by 2.81% to EUR65.9m, the company said in a statement.

⌠Raw material prices increased rapidly in the beginning of the year, it said.
⌠The prices for some of our key raw materials have continued to increase during the second half of the year and are still at a very high level, the company added.
The firm's net profit fell to EUR140.3m in the full year of 2011, compared with EUR646.9m in the same period a year earlier, the firm said.


MRC