HDPE prices in Asia dropped in price by USD10-40/tonne

MOSCOW (MRC) -- Low buying activity, due to the state holidays in China and decline in oil quotations, has resulted in a slight reduction of polyethylene prices in Asia, report MRC analysts.

Last week, there was a minor price fall in the Asian PE market. Low buying activity in the region was the main reason of the decline in prices. Chinese companies practically refused from purchasing polyethylene in anticipation of the weekly state holidays which will begin from 1 October. South-Eastern companies also decided to take a break expecting the situation with the price trend to become clear after the holidays in China.

Also, declining oil quotations have cooled the interest of buyers from China and South-Eastern Asia in purchasing PE. But a major decline in PE prices was avoided due to stable ethylene prices in the region.

Oil prices are still the determining factor in the price formation on sluggish demand. Also, the launches of new plants in China in the second half of the year cause serious concerns regarding the rise in prices in the future.

Last week, LDPE prices remained intact and were in the range of USD1,310-1,380/tonne, CFR. HDPE prices dropped by USD10-40/tonne depending on the grade. Deals were concluded in the range of USD1,300-1,370/tonne, CFR.
MRC

MOSCOW (MRC) -- European market of polystyrene (PS) remains tight, according to suppliers.

Current high prices put pressure on the purchases of polystyrene. Buyers and converters consider such level of prices groundless, which soon will make converters either reduce the purchases volumes, or to look for an alternative feedstock. The latter especially refers to the market of high-impact polystyrene (HIPS), which competes in some sectors of processing with ABS and PET.

Some market participants have noted that in September, the price of polystyrene for traders increased more significantly than for the direct buyers of the material.

The September price of polystyrene for direct buyers increased by EUR70-80/tonne, while prices for traders increased by EUR100/tonne.

Producers deny the price disbalance between the different types of customers.

Preliminary increase was announced at EUR100/tonne, but then the price of material grew not so significantly. Last week the discount for medium and small volume purchases did not exceed 2% from the announced price of the material.

MRC

(english.capital) -- Royal Dutch Shell, Royal Vopak NV and Greenergy Ltd. said Monday that they completed the acquisition of the Coryton refinery in England, which was previously owned bankrupt oil refiner Petroplus Holdings AG.

The transaction follows the earlier announcement by the consortium on 26 June 2012. The three companies plan to develop and invest in this facility - to be named Thames Oil Port - to create a state-of-the-art import and distribution terminal for oil products to be managed by Vopak.

The initial storage capacity will be around 500,000 cubic meters (cbm), with potential to expand to up to 1 million cbm in later stages. The transaction was completed on Friday Sept. 28 with PwC, the administrator of Petroplus Refining & Marketing Limited.

MRC

(hydrocarbonprocessing) -- BP on Friday agreed to sell all its interests in purified terephthalic acid (PTA) production in Malaysia to India’s Reliance Industries, including its 610,000 tpy plant in Kuantan on the east coast of Malaysia.

Reliance has agreed to purchase BP’s interest in the plant for USD230 million in cash. Both parties anticipate completing the transaction in 2012.

"This is an efficient plant with a good market position in the region," said James Yim, head of BP's aromatics business in Asia.

Nick Elmslie, CEO of BP Petrochemicals, said: "BP has a major, global PTA business, with around one fifth of global PTA production capacity and a track record of leading technology."

"We are also building new revenue streams by licensing our PTA and paraxylene technologies."

All current plant staff members are expected to transfer to the new owners under equivalent terms and conditions, according to officials involved with the sale.

BP’s acetic acid manufacturing and marketing business in Malaysia is unaffected by this sale.
MRC

(Platts) -- Shell Chemicals informed customers Thursday that it will extend a force majeure for supply of ethylene oxide and glycol products after a malfunction during a turnaround restart at its Geismar, Louisiana, facility forced a prolonged shutdown.

Shell was uncertain how long the shutdown would last, according to the letter, which noted that products impacted include EO and all grades of monoethlyne glycol and diethylene glycol. The plant has a MEG capacity of 400,000 mt/year. It was unclear what type of problems occurred during the restart.

MEG prices spiked after Hurricane Isaac hit the US Gulf Coast in late August, causing production issues for producers that are still contributing to a tight supply.

Shell's force majeure at the Geismar facility was initially announced shortly after Hurricane Isaac hit, and was seen as the most significant factor to the decrease in MEG supply though supply was tight globally with production constraints heard in the Middle East and in Europe.

MRC