Azelis announces the sale of its Composites business

(azelis) -- On October 1st, Azelis announced the sale of its international Composites business to VELOX GmbH who has acquired this business in its entirety. As a result, VELOX will take over and manage the Composites business and its employees, effective October 1st, 2012.

As part of the company’s natural progression and clear focus on value added growth within specialities, a strategic review was undertaken by the Azelis board and the Composites market was judged to be sub-critical to the company’s plans for future development.

Within the markets it serves, industrial chemicals, coatings, rubber and plastic and Life Sciences have been identified as primary value added growth areas within Europe. Further expansion within Asia Pacific is also another key pillar using a speciality chemicals business model.

As MRC wrote before, in June 2012 Azelis announced the sale of the Thermoplastic Polymers Business Area within the Azelis Group to Gazechim Plastics who acquired this business. This transfer means Gazechim Plastics is now managing in its entirety the Thermoplastic Polymers business and its employees.
MRC

Fire at Nippon Shokubai polymer plant to increase global demand for diapers

(worldnews) -- The fire, occurred after explosion at Nippon Shokubai's polymer facility in Hyogo Prefecture, central Japan, on 29 September, might affect the global production of diapers.

Nippon Shokubai produces one fifth of the global volume of superabsorbent polymers and it is one of the world's biggest makers of acrylic acid, the main ingredient of a resin called SAP, which is used in diapers.

A fire broke out about 2 p.m. after an abnormal chemical reaction at the plant, the Japan Times said. The explosion occurred near the tank with acrylic acid. A 28-year-old firefighter was killed and at least 30 people were reported injured. Other details are not disclosed. The cause of the explosion is being determined. Information on possible contamination of the environment by combustion products have not been reported yet.

Operations at the plant are likely to be halted for a long time and other makers of SAP resins are operating on a full-production footing.
MRC

Itochu to join South Stream gas pipeline project

(guidechem) -- Japan's Itochu is interested in financing construction of the South Stream gas pipeline via the Black Sea, as well as supplying pipes to the project, Itochu's COO for the Commonwealth of Independent States said in an interview published Friday.

Itochu is now in active discussions on joining the project. The role of the company would be to supply pipes and financing, Kiyoshi Fujitska told the in-house magazine of Russia's Gazprom.

Should the agreement on cooperation be reached, the pipes would be provided by Marubeni-Itochu Steel Inc. (MISI), Itochu's 50:50 joint venture with Japan's Marubeni, he said.

The South Stream pipeline, with a capacity of up to 63 billion cubic meters/year, is designed to bring Russian gas to Bulgaria and on to other European countries via the Black Sea. From Bulgaria, the line is to be split into two pipelines to be built by Gazprom jointly with local partners. Construction is expected to start in late 2012, with the first commercial deliveries scheduled for late 2015.

Gazprom owns a 50% stake in the South Stream subsea section. Other stakeholders are Italy's Eni (20%), France's EDF (15%) and Germany's Wintershall (15%).
MRC

Asian PET prices slashed by USD10-20/tonne

MOSCOW (MRC) -- Last week of September, price offers of Asian PET decreased by USD10-20/tonne following the drop in cost of feedstocks and converters’ low buying activity in the domestic market, report MRC analysts.

Prices of Chinese PET fell by USD10/tonne. The range of Chinese makers’ spot prices for export shipments were voiced at the level of USD1,380-1,410/tonne, FOB China. This week, market players’ activity will remain weak due to the national holidays started on 30 September. Korean producers sold their PET production at the price which is by USD20/tonne lower from the levels stated the previous week. The price dispersion of the material made USD1,400-1,440/tonne, FOB Korea.

It is worth mentioning that in September PET price offers grew by USD40/tonne in South Korea. Last month, September prices of Chinese PET rose by USD30/tonne.
MRC

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