Jokey Plastik to invest EUR20m in Russian plant

(europeanplasticsnews) -- Jokey Plastik, a well-known German producer of plastic packaging, plans to invest up to EUR20m in building a plant in the Russian Ulyanovsk region, according to the official statement from the Ulyanovsk government.

The new plant is expected to be built in the Cherdaklinsky area of the Ulyanovsk region and will create up to 100 new jobs. The commissioning date of the plant was not disclosed.

In additton to the Ulyanovsk factory, this year the company plans to finish building another factory in Turkey.

Founded in 1968, Jokey Plastik currently remains one of the world’s leading manufacturers of plastic packaging. The company currently operates 13 plants in Germany, France, Poland, Czech Republic, Serbia, Belarus, Turkey, Algeria, Egypt and Canada.

In addition to its core activities, Jokey also specialises in making structural components for automotive and computer equipment, and furniture for bathrooms.
MRC

(plasteurope) -- Anglo-Dutch energy and petrochemicals group Shell (The Hague / Netherlands) has awarded the basic engineering contract for its joint venture MEG project in Ras Laffan / Qatar to Foster Wheeler (Zug / Switzerland).

The two-train MEG plant will be based on Shell’s Omega technology and is expected to have a 1.5m t/y capacity. It will be part of a new petrochemicals complex in Ras Laffan which is being developed by a joint venture between Shell and Qatar Petroleum (QP, Doha /Qatar). The complex is also expected to include a 300,000 t/y linear alpha olefins unit and a 250,000 t/y oxo alcohols unit, and commercial production is expected to begin in 2017. Shell will have a 20% stake in the project and Qatar Petroleum will hold the remaining 80%.

Foster Wheeler said it will benefit from the experience it gained from working on Shell’s Omega-based MEG plant on Jurong Island / Singapore. The company was the front-end engineering design (FEED) and engineering, procurement and construction (EPC) management contractor for the Jurong Island project, which started operations in December 2009 .
MRC

(plasteurope) -- US polyolefin compounder Washington Penn Plastic (WPP, Washington, Pennsylvania) has opened its first European plant in Voderady / Slovakia.

Located near Trnava, Audia Plastics not only will turn out mineral-filled and glass-reinforced PP as well as TPO compounds, but also houses a development line and a testing and certification laboratory. The key business foci are the automotive, appliance, construction, consumer products and packaging segments.

WPP first announced plans for the Slovakian facility in late 2010. Built at a cost of EUR 8m together with affiliate Uniform Color Company (UCC, Holland, Michigan / USA), the groups had announced two years ago that the Voderady site would turn out 66,000 t/y of PP compounds as well as 2,270 t/y of masterbatch.

Washington Penn Plastic Company, Inc. is the leading provider of polypropylene compounds and polyethylene products. Aside from the Voderady plant, WPP also operates four facilities in the US as well as one in nearby Mexico.
MRC

MOSCOW (MRC) – Last week export prices of bottle PET in Asia rose by USD20/tonne from previous week’s level. The cost of PTA and MEG keeps affecting the growth of PET prices, report MRC analysts.

The growth of PET prices is due to the fact that Asian makers are trying to restore the previous margin level. However, buyers are reluctant to accept the increased producer prices.

Korean makers’ prices voiced at the level of USD1,450/tonne, FOB Korea, in the middle of the week were not accepted by the consumers of the material.

Market players reported that there were no deals concluded at that level. Thereby, the price-level in South Korea for spot shipments made USD1,380-1,420/tonne, FOB Korea, by the end of the week, still up USD20/tonne from the price range of the last week of August.

In China, PET prices increased to the level of USD1,370-1,390/tonne, FOB, which also made a USD20/tonne price rise from the previous week. Market sources reported that the bulk of shipments were made at the level of USD1,370/tonne, FOB.

Import price of the Asian material in the Central region of Russia made about USD1,470-1,520/tonne, DAF Moscow, due to the price increase in the foreign markets.

MRC

MOSCOW (MRC) -- MRC news digest as of 11.09.12.

1. MRC analysts have undergone training at ICIS.

MRC analysts have undergone training at ICIS London office, the world's largest petrochemical market information provider. A week’s training was arranged under the joint ICIS-MRC pricing business in Russia, Ukraine, Belarus, Kazakhstan and Uzbekistan. During the meeting the analysts discussed the methodology of price-formation for polymer industry in Western Europe, Asia and the USA. According to the Director of MRC Sergey Yaremenko, regular training of analysts is necessary to get ready for the expansion of the line of ICIS-MRC price reports: "We will have launched new price reports on polycarbonate, titanium dioxide, caustic, polyamide and polyurethane by the end of the current year. In 2013, ICIS-MRC plans to reach fundamentally new chemical CIS market with their products."

2. European makers intend to significantly increase PE prices in September.

September contract prices of ethylene grew by EUR125/tonne, but European makers are going to get a more significant price rise of PE, report MRC analysts. On Friday, September contract prices of ethylene were agreed in Europe. Monomer for September shipments rose in value by EUR125/tonne from August. However, European makers intend to get a more serious increase in PE prices this month on the back of low margin and tightened supply.

3. European makers intend to increase PP prices by EUR150-200/tonne.

September contract prices of propylene grew by EUR105/tonne, but European makers are going to get a price rise of PP by EUR150-200/tonne, report MRC analysts. On Friday, September contract prices of propylene were agreed in Europe. Monomer for September shipments rose in value by EUR105/tonne from August. However, this month European makers intend to get an increase in PP prices by EUR150-200/tonne on low margin and tightened supply.

4. European makers will increase PVC prices by EUR80-140/tonne.

European makers intend to get an increase in PVC prices by EUR80-140/tonne in September despite the growth of ethylene prices by EUR125/tonne, report MRC analysts. The contract price of ethylene in Europe has grown for September shipments by EUR125/tonne from August level. The current price rise of ethylene means that production costs of PVC in Europe have increased by about EUR65/tonne. But European makers are going to get a more significant rise in PVC prices for September shipments to foreign markets, including CIS countries, on the back of low production margin.

5. In August the price of Chinese PTA increased by USD39/tonne.

In August price quotation of PTA in Asian markets continued to grow steadily. By the end of the month the price of imported material in the Chinese port increased by USD39/tonne, as per MRC analysts. Market players reported the tightened supply of the key feedstock, which is the main driver of the prices. Two powerful typhoons resulted in the closure of Ningbo - the major port in the east of China. The port resumed the work on 28 August, but not at full capacity. Several local makers of PTA also suffered from the typhoons, which led to problems with the domestic supply. The shortage of imports supply was another important factor in the price. Due to the reduction of the output of terephthalic acid in South Korea, Taiwan and Thailand, some Chinese consumers are not able to buy material in the foreign markets.

6. The deficit in the Russian HDPE market resulted in record prices in September.

In early September the deficit in the Russian HDPE market increased on upcoming outages for maintenance of the major makers and a record price-level, report MRC analysts. The lack of supply began to be already felt in early August in the Russian HDPE market. HDPE prices kept rising every week on the back of tightened supply. The record increase in prices was registered in early September on the back of the growing deficit and upcoming outages for maintenance at Kazanorgsintez (for 30 days from September 10) and at Nizhnekamskneftekhim (for 10 days from September 26). At the beginning of the week bids at electronic trades for Kazanorgsintez and Niznekamskneftekhim HDPE came close to the level of Rb100,000/tonne, including VAT, FCA, and for some grades they even exceeded this level. Most acutely the deficit is felt in the market of film, blow moulding and pipe HDPE. In the first half of the year the absence of Stavrolen PE was practically not felt in the market, however, by July the lack of the material from Budenovsk had already started having an impact on the market balance. Scheduled outages at Gazpromneftekhim Salavat and Karpatneftekhim (Ukraine) aggravated the situation in the market. Gazprom neftekhim Salavat stopped its HDPE production for a monthly turnaround in late July. However, so far the plant has not resumed its production. Since September 1 Karpatneftekhim has shut its HDPE plant for a scheduled two-months’ turnaround. Some market participants hope that an early launch of HDPE production at Gazprom neftekhim Salavat and Stavrolen will halt the rise in prices.
MRC