Tosoh to rise VCM output in Nanyo

(plasteurope) -- Almost one year after a fire seriously damaged its complex in Nanyo / Japan, Tosoh Corporation (Tokyo / Japan) has touted plans to raise output at the site’s number 3 vinyl chloride monomer plant.

The building phase of the 200,000 t/y capacity expansion will kick off in November this year, with completion scheduled for October 2014. All in all, the project will cost Tosoh about JPY 5 bn (EUR 50m).

The Japanese group said it had been mulling options to rebuild its VCM capacity after a deadly explosion and fire rocked the site in November last year. Since then the site’s number 2 plant has been offline and it remains unclear whether the facility will resume operations in the future.

Tosoh said the expansion would result in higher production and sales of VCM and caustic soda, which in turn would lift the profitability of its vinyl isocyanate chain. The expansion will also help the company stabilise its VCM supplies to its domestic and overseas PVC production and sales operations.

The group’s number 1 VCM plant in Nanyo currently turns out 250,000 t/y. In addition, Tosoh also produces VCM at its complex in Yokkaichi to the tune of 250,000 t/y. Once the expansion at Nanyo’s number 3 plant is completed, this facility alone will turn out 600,000 t/y of VCM.

MRC

MOSCOW (MRC) --Last week, the price of polyethylene (PE) in Asia increased by USD10-25/tonne on the back of the Iran’s ban of exports, as per MRC analysts.

Last week price quotations of HDPE and LDPE increased in Asia due to the Iran’s prohibition of the export of polyethylene. PE prices rose by USD10-25/tonne, compared to the previous week, despite the decline in ethylene prices in the region.

Iran's government has banned the export of manufactured goods from the country, including polyethylene. All shipments are temporarily suspended, polyethylene began to accumulate in the ports. At the same time, Iranian suppliers guarantee that all requirements by previous contracts will be concluded.

Iran is a major exporter of LDPE and HDPE in China. For the nine months of the year in the Chinese market has been exported around 854.600 tons of polyethylene, which is 44% more compared to the same period last year, according to Chinese customs.

The ban of PE exports from Iran is potentially beneficial factor for other makers, particularly in LDPE and HDPE market segments. Iranian polyethylene is often sold at lower prices in the market. At the same time, some traders believe that the price of polyethylene in the region is unlikely to rise dramatically, even if PE export from Iran would not be renewed, as demand in the region is still low.

The prices of LDPE last week rose to USD10-20/tonne, the deals were made at USD1,250-1,330/tonne, CFR. LLDPE C4 rose on average by USD20/tonne to USD1,330-1,370/tonne, CFR. In the sector of HDPE increased only film material by USD15-25/tonne to USD1,300-1,375/tonne, CFR.

MRC

(specialchem) -- TenCate Advanced Composites (North America) has expanded its cooperation with 3M, a recognized leader in research and development. This cooperation has considerably strengthened the position of the partners, particularly in composite materials for the aerospace market.

The cooperation between two companies started in 2010. Its expansion will allow TenCate Advanced Composites and 3M to speed the development and adoption of new applications for composite materials. The cooperation has already resulted in the creation of new composite materials with improved performance in the area of durability and material properties. As a supplier of materials, TenCate will focus on the production of composite materials for tooling applications that are used in various production processes, such as the aerospace and automotive industries.

We remind that, as MRC informed earlier, BASF has recently inked agreement with TenCate Advanced Composites to cooperate on the development, production and commercialization of thermoplastic composite materials suitable for high-volume vehicle production.

Royal Ten Cate (TenCate) is a multinational company which combines textile technology with related chemical processes and material technology in the development and production of functional materials with distinctive characteristics. Systems and materials from TenCate come under four areas of application: safety & protection, space & aerospace, infrastructure & the environment, and sport & recreation. The company is amongst the leading developers and producers of thermoset and thermoplastic prepreg composites for space and aerospace and industrial applications.
MRC

MOSCOW (MRC) -- Demand for purified terephthalic acid (PTA) plants in China increased following the launch of two new PTA facilities, which resulted in an increase of PX imports in September, as per fibre2fashion.

As MRC informed earlier, Jiaxing Petrochemical started up a new plant with capacity of 1.5 mln tpa of PTA in Zhejiang province by in August-end. Also, production of PTA was launched at another new unit with the capacity of 2.2 mln tpa of PTA in Dalian by Hengli Petrochemical in mid-September.

The start-ups of these plants have led to a rising demand for key feedstock - paraxylene (PX). As a result, China’s PX imports increased by 13.25% year-on-year to 591,202 tonnes in September, as per the customs data. On a month-on-month basis, September PX imports rose by 26.57%.

China’s PX imports will rise further with a launch of another new PTA plant with the capacity of 1.8 mln tpa by Zhejiang Yisheng Petrochemical in Hainan by November-end this year, according to experts.
MRC

MOSCOW (MRC) -- MRC news digest as of 05.11.12.

1. Buyers of European PS expect price cuts in November.

European market participants reduced their purchases of polystyrene in late October amid falling prices of styrene monomer, as per MRC analysts. Some market players last week confirmed the increase in the cost of polystyrene in Europe on average by EUR30/tonne. However, not all consumers managed to sign contracts for the shipment of the material in October. In anticipation of a possible price cuts in November, the company decided to reduce the volume of purchases. Prices decrease of styrene monomer again caused the stir in the market on the price of polystyrene in November. Another important factor in the formation of prices in the short term, is the demand. Many sources confirm the decrease in demand in recent years. The buyers are under the pressure of high prices, which makes converters look for replacing polystyrene by other polymers where it is possible. More information you can find in Price report ICIS-MRC.

2. PVC import to China in January-September slashed by 4%.

In September, PVC imports to China dropped to 76,800 tonnes, while in August this index made about 98,700 tonnes. In general, over the past nine months, the total PVC import to China made about 730,000 tonnes, according to MRC analysts. After the August surge, PVC imports to the Chinese market began to decline again. Last months, the total PVC import to China fell by 22% from August. Imports of the resin were reduced to all the markets with the only exception of Japanese producers.

3. Year-to-date Russian consumption of SPVC decreased by 7%.

Year to date consumption of SPVC in the Russian market declined by 7% and amounted to 729,200 tonnes. The imports volumes were cut significantly, according MRC ScanPlast. Reduction in the supply of resin to the Russian market resulted from the reduction in imports. Russian producers this year increased the production of SPVC by 8% to 426,500 tonnes, though exports in the last three years have been insignificant. Imports over the nine months decreased by 23% to around 302,800 tonnes.

4. SPVC supplies to the Russian market dropped by 7% over the past nine monthsю

Over the past nine months SPVC supplies to the Russian market slashed by 7% and made about 729,200 tonnes. The decline in shipments mainly accounted for import, according to MRC DataScope. The decline of the resin supplies to the Russian market was due to the reduction of import volumes. This year, Russian makers increased suspension PVC output by 8% to 426,500 tonnes, while export over the past three years was sporadic and insignificant. Over the past nine months, imports fell by 23% and made about 302,800 tonnes. According to some market participants, by 1 January, 2012, total PVC stock inventories of Russian makers and traders made not less than 45,000-50,000 tonnes.

5. September imports of PVC to China down by 22%.

In September, imports of PVC to China reduced to 76,800 tonnes, from August - 98,700 tonnes. Year-to-date total imports of PVC to China amounted to 730,000 tonnes, according to the MRC DataScope. Imports of all resin grades were reduced, with an exception of Japanese makers. Over the nine months of this year, the total imports of PVC to China fell by 4% year on year and made about 730,000 tonnes. This year, out of the top three exporting countries Taiwan and the US makers were able to increase the supplies of PVC. Imports from these countries in January - September of the current year amounted to 271,700 and 241,800 tonnes respectively, up by 17% and 20% compared to the same period a year ago. Japanese makers, on the contrary, have cut their supply by 42% to 125,700 tonnes.

6. LDPE prices in the Russian market went down in early November.

Russian producers have announced a reduction of LDPE prices for the domestic market in November on a significant seasonal decline in demand and ample supply, according to MRC Price report. The prices dropped by Rb1,200-2,400/tonne from October depending of the maker and PE grade. The reduction of LDPE prices for the domestic market was both due to a seasonal decline in demand and ample supply of polyethylene in the domestic market. In the spot market, buying activity is also very low. Converters are not in a rush to replenish their stocks. Prices for LDPE 158 in the spot market had set in the range of Rb59,500-61,500/tonne, CPT Moscow, including VAT, by mid-week.
MRC