Wacker and DKSH to cooperate in the Asian region

(chemistry news) -- Wacker and DKSH Business Unit Performance Materials has entered into a strategic partnership.

Wacker will distribute fermenter cysteine and bioengineered cyclodextrins through DKSH under the exclusive distribution agreement to South East Asia, Greater China and parts of the India subcontinent, specifically India, Bangladesh and Sri Lanka.

Cori Diaz, Vice President Key Client Management, DKSH Performance Materials comments: "In line with our focus on strategic business and relationship development with current and potential key clients, this cooperation with WACKER represents another milestone since establishing the new key client function in 2011. We are proud to be chosen by WACKER as a key distribution partner and look forward to a fruitful collaboration."

Wacker Chemie AG is a worldwide operating company in the chemical business. The corporation is operating more than 25 production sites in Europe, Asia, and the Americas. The product range includes silicone rubbers, polymer products like ethylene vinyl acetate redispersible polymer powder, chemical materials, polysilicon and wafers for semiconductor industry. Starting from ethylene, Wacker Polymers serves mainly the construction industry with redispersible powders and several other industries with dispersions. Wacker Biosolutions focuses on using bio-technological processes to serve its customers.
MRC

MOSCOW (MRC) – Asian PET prices keep growing steadily on higher costs of the local producers caused by a rise in PTA and MEG prices. By the end of the week export quotations of the Korean and Chinese PET had increased by USD20-40/tonne, report MRC analysts.

Despite the decline in consumer activity from makers of soft drinks and water, Asian producers of bottle PET granulate keep raising prices for their production. Local makers claim that production costs have increased significantly while the margin of the plants has slashed. The continuous growth of prices do not allow decrease PET price-offers below the current price-level. Only last month, the spot price of PTA at Chinese ports rose by USD68-70/tonne.

Last week price-offers of Korean PET makers grew by USD30-40/tonne. Many Korean plants voiced their prices at the level of USD1,480-1,500/tonne, FOB Korea. At this stage, the consumers of the material do not want to accept such prices. Due to this the bulk of the deals were concluded in the range of USD1,420-1,450/tonne, FOB Korea.

Chinese PET has grown in price by USD20-30/tonne. Plants’ price-offers were voices at the level of USD1,420/tonne, FOB China. According to a source, shipments to CIS countries and those of Latin America were made at the level of USD1,390/tonne, FOB China.

According to Asian PET producers, price-offers for the material in the spot market in September will keep rising since local facilities will try to recover their margins. In connection with the softening of the monetary policy of the Fed, the activity in commodity markets has grown. Oil quotations are also rising. Due to this, speculative operations are leading to a rise in paraxylene prices which affects the chain of upstream products - up to the prices of bottle PET, said a trader.
MRC

(plastemart) -- Total Petrochemicals & Refining USA reported pollution in excess of permitted levels from a coking unit at the company's 225,500-barrels-per-day Port Arthur, Texas refinery on Friday, as per a notice the plant filed with regulators, as reported by Reuters.

The excess emissions resulted from a malfunction on wet gas compressors. The refinery said instrumentation technicians were working on the compressor controls.

Total, one of the world’s leading petrochemicals companies, does business in Europe, the United States, the Middle East and Asia. Total has two main product groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
MRC

MOSCOW (MRC) -- MRC news digest as of 18.09.12.

1. Asian PE prices up by USD10-40/tonne.

The price of polyethylene (PE) last week increased by USD10-40/tonne amid high feedstock ethylene prices. Local producers aim to increase prices for October further, as per MRC analysts. Local market participants are doubtful about hike of PE price in October. Export markets of finished goods in the U.S. and EU do not still show any signs of recovery in demand. Besides, the launch of new polyethylene capacities in China will add downward pressure on the market.

2. The boom in the Russian market of HDPE declined.

The consumer activity in the Russian market of HDPE over the second week of September declined slightly. The prices in the electronic trades began decreasing, as per MRC analysts. The first week of September in the Russian market of HDPE was quite nervous. Shortage of many HDPE grades, ongoing stoppage of Stavrolen and Gazprom neftekhim Salavat and stoppage for scheduled maintenance of facilities in Kazan and Nizhnekamsk in September affected seriously the market. The bids of low density polyethylene (LDPE) at the electronic trades reached Rb100,000/tonne, including VAT, FCA, and more. By the end of last week, the buying activity in the Russian market of HDPE declined significantly. On Sept, 10, at the electronic trades the bids for HDPE by Kazanorgsintez production did not exceed Rb98,300/tonne, including VAT, FCA. Many market participants think, that the situation in the market depends on how quickly and to what extent Stavrolen and Gazprom neftekhim Salavat will resume the production of HDPE for the domestic market.

3. PET prices in Asia have risen by USD20/tonne.

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. 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.

4. August imports of SPVC to Russia made 36,800 tonnes.

In August, imports of suspension PVC to Russia amounted to 36,800 tonnes. Imports volumes of resin from Ukraine and China shrank nearly twofold, while imports from the U.S. exceeded 22,400 tonnes, as per MRC analysts.
Due to the serious decline in export prices in late May and June, Russian companies actively contracted PVC from the U.S.. Cheap North American PVC started to arive to the market in the second half of July and was fully delivered in August. Supplies of acetylene PVC from China in August actually stayed at the level of July and reached 3,900 tonnes. In late August and early September on the shortage in the market, Russian companies started actively to import acetylene resin. It is expected that in September, imports of PVC from China will exceed the level of 10,000 tonnes. Import of suspension from Ukraine in August dropped almost twofold to 4,500 tonnes. Over the eight months of this year, the total volume of import PVC in Russia amounted to 255,100 tonnes, down 28% year on year.

5. PP import to Russia in August rose by 4%.

In August, import PP shipments to the Russian market made about 27,000 tonnes. The year-to-date total import volume of PP reached the level of 187,000 tonnes, up 50% year-on-year, report MRC analysts. Russian traders started actively contracting PP in the foreign markets on the back of a major price cut in July. In Europe, export prices of homopolymer PP in July were in the range of EUR980-1,040/tonne, FCA. The Middle-Eastern and Asian PP was contracted on average at USD1,420-1,520/tonne, CFR St Petersburg and Novorossiysk.
In general, over the past eight months the total import volume of PP to Russian Federation made 187,000 tonnes, up 50% year-on-year.

6. Karpatneftekhim cut PVC production in August on turnaround.

The largest Ukrainian producer of polymers Karpatneftekhim in August reduced the production of PVC. The company had stopped its capacity for routine maintenance by November,1, as per MRC analysts. Karpatneftekhim (Lukoil Group) in August reduced the production of polyvinyl chloride to 11,600 tonnes. The reduction of the loading capacities of PVC was carried out in the framework of the planned shutdown for scheduled maintenance in early September. At the same time amid the deficit in the market in Russia and Ukraine the production of high density polyethylene (HDPE) worked with 100% loading. In August, the output of HDPE exceeded 9,300 tonnes. Over the eight months, Karpatneftekhim produced about 73,500 tonnes of high density polyethylene (HDPE) and 117,500 tonnes of polyvinyl chloride (PVC).

7. Fire at Tomskneftekhim plant does not affect its production.

Russian Tomskneftekhim is carrying out an inspection of its capacities after an explosion followed by fire on Wednesday. The fire, broken during the scheduled maintenance, had no serious consequences for production and will not affect the work of the plant, as per MRC analysts. On Sunday, September, 9 Tomskneftekhim started the scheduled turnaround of its production of polyethylene of low density (LDPE). The turnaround is scheduled to be carried out for two reactors of LDPE in two stages. The first line will be closed for repair from the 9th to 19th of September, the second line - from the 13th to 22th of September. The production of polypropylene is also scheduled to be closed for 4-days maintenance within the framework of planned maintenance.
MRC

(silobreaker) -- Arburg will present new process integration and product design technology that include Particle-foam Composite Injection Molding (PCIM), long-fiber direct injection molding and inline printing at the forthcoming Fakuma 2012.

PCIM is a joint project with Krallmann and Ruch Novaplast in which a foamed part is combined with plastic for the first time. The two components are bonded, so that there is no need for subsequent assembly steps and a finished part is produced in a single step.

Arburg says this production of composite components made from particle foam and injection molded plastic could open up a whole field of new options for the electric mobility, lightweight construction and insulation sectors. With regard to increased efficiency, the new long-fiber direct injection molding process developed together with German Plastics Center SKZ, allows inline feeding and enables longer fibers than ever before to be processed, so that lightweight injection molded parts with thin walls and high strength can be produced.

Arburg is one of the world’s leading manufacturers of high-end injection moulding machines for plastics processing.
According to MRC data, Arburg has supplied to Russia more than 250 injection moulidng machines since 2000. Last year the company delivered more than 2% out of the total amount of all injection moulding machines. 32% of the company's injection moulding equipment accounts for shipement to China.
MRC