U.S. demand for composites will show strong growth to 2016

(canplastics) -- Demand in the U.S. for high performance composites is forecast to rise almost 15 per cent per year to USD10.2 billion in 2016, according to a new study by market research firm The Freedonia Group.

Defined in the study as polymer resins reinforced with advanced fibre materials, the "High Performance Composites" report examines the U.S. market for high performance composites by fibre (carbon, aramid, S-glass), market (aerospace, industrial and automotive, defense and safety, energy, consumer, construction), and resin (epoxy, thermoplastics, polyester, phenolics).

"High performance composite demand will be fueled by tremendous growth in the commercial airliner market as well as emerging opportunities in applications such as wind turbines and pressure vessels," the report stated. "However, the high cost and labor-intensive production of advanced composites compared to competitive materials will prevent these materials from penetrating high volume and price-sensitive markets."

MRC

(yarnsandfibers) -- Propylene prices declined marginally across markets by 3-6%. Propylene prices traded at USD1214.20 per metric ton FOB Korea, down 3% as compared to previous year. As compared to the corresponding period last year prices were down by 12.8%.

Acrylonitrile prices tumbled in Asian market amid falling demand. Demand was hard to improve in downstream sectors as acrylic fibre market was operating at 70% while the ABS market was range bound amid ongoing turnarounds and poor demand. In US, acrylonitrile export prices dropped to a seven month low on lower propylene contract prices. Acrylonitrile was traded at USD1,573 per metric ton CFR China, down 12% as compared last month.

Acrylic staple fibre prices were down as sentiments softened tracking low settlements of major suppliers in China. Downstream yarn makers were running below 50% capacity and remained cautious about feedstock purchase in view of lower settlements at the month end. In China, acrylic staple fiber prices dropped by 8.57% and traded at US$2.56 per kg CIF China.

MRC

(yarnsandfibers) -- Ethylene prices continued to edge down across markets amid poor demand from downstream users and falling energy complex. In US spot ethylene dropped as demand remained lackluster and feedstock prices mostly depressed. European spot also dropped pressured by fall in naphtha and overall demand.

Paraxylene markets in Asia tumbled further under pressure of excess supply and delays in starting up new downstream purified terephthalic acid plants in China. European paraxylene slumped as weak confidence continued to weigh on demand. Ethylene prices dropped by 17% in Southeast and Northeast Asia, whereas in Korea prices had declined sharply by 23% to USD899.75 per metric ton FOB. Paraxylene prices dropped 13.4% to 1243.30 per metric ton FOB Korea.

Mono ethylene glycol prices plummeted in Asia weighed down by the decline in crude, paraxylene and ethylene markets. European mono ethylene glycol market turned bearish. US spot market remained quiet on the back of muted demand and falling prices. Purified terephthalic acid markets continued its bearish sentiment as weak downstream polyester sales pressured the PTA prices to go down to a 21-month low. During the month, PTA prices averaged at USD948.60 per metric ton FOB Korea, down 13.5% as compared to previous month. Meanwhile, MEG prices plunged 11% averaging at USD869 per metric ton FOB Korea.

MRC

(Reuters) -- Indian Reliance Industries has renewed a quarterly contract with Qatar to buy 50,000 tonnes of gas-to-liquid (GTL) naphtha for August-October loading, traders said on Wednesday.

The premium was fixed at about USD25.00 a tonne to Middle East quotes on a free-on-board (FOB) basis. Reliance, which also exports naphtha made from crude, will be buying the two cargoes over the three-month period from Oryx.

Qatar has another GTL plant at Pearl. The country's government gave Tasweeq the right to sell around 1 million tonnes per year of GTL naphtha from Oryx and Pearl, raising Tasweeq's total naphtha sales volumes to 7.5 million tpy.

Traders said Reliance, which has been holding the quarterly contract with Qatar this year, will likely feed the GTL naphtha into its crackers which produce petrochemical products such as ethylene and propylene, used to make plastics.
MRC

(news.szenergy) -- China and India are set to add over 3 mln tons of new PE capacity over the next 18 months. Most of the new capacities in China are set to come on-line before the end of this year, while India’s new capacity additions are set to come on-line in 2013.

Daqing Petrochemical, a subsidiary of CNPC, is expected to start up two new PE production lines, an LLDPE line with a capacity of 250,000 tpa and an HDPE line with a capacity of 300,000 tpa, by late August or early September. Fushun Petrochemical is reportedly planning to start up a new PE plant at the end of 2012. The plant had originally been expected to start up in June but the start up has been delayed until the end of the year. Fushun’s new plant will have annual production capacities of 350,000 tpa of HDPE and 450,000 tpa of LLDPE. Qilu Petrochemical is planning to start up a new 250,000 tpa HDPE line at the beginning of 2013. No definite start up date has been announced yet, but sources reported that the plant will most likely start up in the first quarter.

In India, OPaL and Gail are planning to add more than 1.5 mln tpa of new PE capacities in 2013 while Brahmaputra Cracker and Polymer Ltd (BCPL) will add another 220,000 tpa of PE capacity next year. BCPL’s new 220,000 tpa PE plant is scheduled to start up in July 2013 as part of the Assam Gas Cracker Project. OPaL is planning to start up its new 1.1 mln tpa PE plant by October of 2013 while Gail’s new 450,000 tpa LLDPE/HDPE swing plant is due to come on-line by the end of 2013.
MRC