Pipe-grade HDPE shortage reaches its peak in Russia

MOSCOW (MRC) -- In the second half of September, pipe-grade polyethylene shortage got tighter in the Russian market - according to MRC analysts.

Traditionally, Russian pipe producers become more dependent on the domestic production and availability of free black pipe-grade polyethylene in international markets in summer and autumn. In July, black pipe-grade polyethylene production was under capacity at Stavrolen due to technical issues, which led to first small wave of pipe-grade material shortage in the market.

In August, Russian producers expanded black pipe-grade HDPE production to 17,5 kt. Production increase partly stabilized the market situation; however, polyethylene supply was still tight. Only market majors could afford to import the material from Europe and Asia due to serious difference in price with Russian polyethylene.

Kazanorgsyntez, the biggest Russian HDPE producer, was shut down for scheduled maintenance in mid-September. The manufacturer produces more than half of total black pipe-grade HDPE volumes in Russia. Russian pipe producers increased raw material purchase in international markets in September; over the 20 days they imported over 6 kt of polyethylene. However, in international markets supply is also tight: export pipe-grade polyethylene quotes of many suppliers, particularly, of producers from Northeastern Asia, are contracted up to November.

Prices for small volumes of Russian black pipe-grade HDPE last week were fixed in the range of RUB 60.000 - 65.000/mt, including VAT, FCA. More Russian pipe producers are forced to temporary switch to natural HDPE due to tight black material supply. Natural material is offered at an average of RUB 56.500 - 58.500/mt, including VAT, FCA.

Russian polymers market prospects will be discussed at Russian Polymers Summit on October 14, 2010 organized by ICIS and MRC. For more information please refer to http://www.icisconference.com/russianpolymers/ Summit official web page.


More information about polyethylene market in Russia is available in MRC Price reports.

Teknor Apex announces top management changes

(TeknorApex) -- Singapore Polymer Corporation (SPC), a unit of Teknor Apex Company, has appointed three new managers in its vinyl and thermoplastic elastomer (TPE) compound businesses, it was announced today by Stanly Tan, SPC managing director.

"One of Asiafs largest custom compounders, SPC serves customers in the Asia-Pacific, Oceania, the Indian subcontinent, the Middle East, and Africa, noted Mr. Tan, who became head of SPC on August 1. Our new managers are charged with helping SPC to intensify its outreach to customers across a vast and diversified part of the world", - he said. Many plastics processors, medical manufacturers, and wire and cable producers in the region will discover the sheer breadth of SPCproduct offerings, including literally thousands of compounds developed in the USA by Teknor Apex.


Idemitsu Kosan to restart to restart Tokuyama naphtha cracker within 2 weeks

(Reuters) -- Japanese refiner Idemitsu Kosan Co expects to restart a naphtha cracker at its Tokuyama plant in early October. The 256,000 tpa naphtha cracker has been shut on Sept. 6 for scheduled maintenance for about a month. Idemitsu shut a 120,000 barrels per day crude distillation unit at its Tokuyama refinery on Tuesday as part of efforts to curb refining amid sluggish domestic demand.


Keyuan Petrochemicals starts construction of the first SBS facility in Ningbo

(plastemart) -- Keyuan Petrochemicals, Inc. has commenced construction of its first Styrene-Butadiene-Styrene ("SBS") production facility in Ningbo, Zhejiang Province, which will be adjacent to its current production facility. SBS is commonly used in soles of shoes, tire treads and other products that require a hard rubber to remain sturdy for a long time due to its durability. The new SBS facility is expected to add 70,000 tons to Keyuan's production capacity by end-2011, with an estimated cost of US$17.5 mln in capital expenditures.


Tri Polyta to acquire the domestic petrochemical major

(plastemart) -- Indonesia's largest PP maker- PT Tri Polyta Indonesia will acquire petrochemical firm PT Chandra Asri in a share-swap deal worth about US$1.2 bln. Tri Polyta will issue 2.93 bln new shares to Chandra Asri's shareholders in exchange of it's US$1.2 bln assets. Deutsche Bank and Singapore's DBS Group are advisors for the deal.

Both the companies are controlled by Indonesian tycoon Prajogo Pangestu through holding company PT Barito Pacific. Barito Pacific owns 77.9 of Tri Polyta and 70% of Chandra Asri. The new combined entity will be Indonesia's biggest listed petrochemical firm, when the deal is completed by January 1 2011. Barito will own 71.6% stake in the new entity.