Qatar Petrochemical to launch production at its new LDPE plant on 20 November

(GV) -- Qatar’s petrochemical output will get a further boost with the formal inauguration of Qapco’s QR2.3 billion low-density polyethylene (LDPE) plant at Mesaieed on 20 November 2012.

Qapco’s LDPE production will thus exceed 700,000 tpy with the company’s two existing production lines - LDPE 1 and 2 - already accounting for more than 400,000 tpy. Products from LPDE 3 will be sold under the brand name 'Lotrene' through Qapco’s global marketing network.

According to Qapco, the new facility will produce "prime high pressure grade LDPE". With all these units up and running, Qapco will become one of the major low-density polyethylene producers in the world.

Currently, Qapco’s manufacturing facilities consist of an 800,000 tpy ethylene plant, 70,000 tpy sulphur processing facility, in addition to the two existing LDPE plants.

Besides, we remind, as MRC informed earlier, that Qatar is expected to invest about USD25 billion in its petrochemical sector until 2020 as part of economic diversification. The investment includes a planned USD6.4 bln petrochemical plant in partnership with Royal Dutch Shell Plc (RDSA) and a USD5.5 bln plant in partnership with Qatar Petrochemical Co (QP), a unit of Industries Qatar, which is the largest petrochemicals producer in the country. QP has major stakes in all petrochemical production in Qatar. To diversify and expand its downstream industrial base, Qapco has set up a number of joint ventures.
MRC

(plastemart) -- Rotational moulders account for 3% drop in the number of listing in Applied Market Information Ltd.’s guide to the Rotational moulding industry in Europe, which highlights the effects of the global economic crisis on the European plastics industry.

The remaining 336 listed production sites across Europe are estimated to have been responsible for the consumption of 211,000 tonnes of polymer in 2011, down from the pre-recession highs of 250,000 tonnes in 2006. Although the industry has a long way to go to regain those lost volumes, the market is expected to show some growth for 2012 after three years of declining volumes.

The weakness in the rotomoulding sector was largely a consequence of the continued economic uncertainty in Europe, of which MRC reported earlier, which resulted in the reduction of infrastructure projects and impacted on the demand for rotationally moulded water and fuel tanks, which make up the largest end use application for this process.

Other sectors however performed better and the economic downturn resulted in some applications which may have traditionally used blow moulding switching to rotational moulding because of the smaller volumes of articles required and the economic advantages of using rotational moulding for small runs. The materials handling market has been relatively unaffected by the recession and the market for IBC is still growing. This market is maintained by the requirement for most containers to be replaced a minimum of every 3 years.
MRC

(the nation) -- Indorama Ventures' net profit in the third quarter, 2012, made Bt1,566m, down 62% year-on-year, but up 28% quarter-on-quarter. Stripping out an FX gain of Bt44m, a gain on the bargain purchase of PT Indorama Polypet Indonesia of Bt121m, an inventory gain of Bt377m and a Bt539m insurance payout for the 4Q11 flooding of its Lopburi complex, 3Q12 core earnings would be Bt485m, down by 87% year-on-year and 63% quarter-on-quarter. The result was somewhat below the company's forecast and the consensus, due to weaker-than-expected product spreads and lower inventory gains than assumed.

The key factor behind the core earnings contraction was weaker product spreads (sales volume expanded). Core EBITDA/tonne dived by 31% year-on-year and 30% quarter-on-quarter to USD78, led by lower Asian PET and polyester fiber spreads. Sales volume posted a rise of 17% year-on-year and 5% quarter-on-quarter to 1.4mt, driven by capacity expansion.

IVL's 4Q12 core profit is expected to improve both year-on-year and quarter-on-quarter, driven by greater sales volume enabled by capacity expansion and an absence of unplanned shutdowns - there was a two-month unplanned shutdown at Line 2 of the AlphaPet plant and a 10-day unplanned outage at an MEG plant during 3Q12. Moreover, the 187kta PET expansion in the Netherlands will start operating commercially in 4Q12, as MRC informed earlier. But polyester chain spreads are likely to remain flat quarter-on-quarter, as broad demand has yet to recover.

We also remind that Indorama Ventures is going to expand the PET polymers production capacity in the USA by setting up a new plant with a capacity of 540,000 tonnes per year. This expansion, which is expected to be completed in Q4 2015 will take IVL's total capacity in North America of PET polymers up to 2,100,000 tonnes per annum.
MRC

MOSCOW (MRC) -- In October, Ukrainian companies significantly increased purchasing volumes of PET in the foreign markets on reduction of stock residues last month. About 12,500 tonnes of PET granulate arrived in the Ukrainian domestic market, up 22% from September, according to MRC DataScope.

Russian companies explained an increase in purchasing volumes by the necessity to replenish stock residues. The increase in consumer activity of converters in the foreign markets in September resulted in a growth of PET imports almost three-fold in October year-on-year and made 12,500 tonnes last month. Over the past ten month, about 136,600 tonnes of the material arrived in the market.

There were also significant changes in the structure of supply. According to the customs statistics, there were no shipments of Korean and Pakistani PET in October. Ukrainian companies preferred Chinese analogues. Converters explained the reason of the switch to Chinese grades by a substantial discount in price. The difference in purchasing prices of Chinese and Korean PET on CIF basis could have reached USD50/tonne.

In October, the total amount of the Chinese material to arrive in the domestic market made about 8,300 tonnes, which is equal 70,5% of the total monthly volume. Among the Chinese producers, Ukrainian converters preferred such brands, as: Skypet, CR - 8816, Jade.

The Belarusian maker, Mogilevkhimvolokno, managed to increase its supply considerably. The producer’s sales to Ukraine rose to 2,300 tonnes, which had been the maximum monthly index of shipments in the region since 2005. Such a sharp rise in sales of Belarusian material was achieved by loyalty to their product from Ukrainian breweries.

MRC

MOSCOW (MRC) -- Despite the rise of Japan's ethylene output by 1% in October to 500,000 tonnes from September, it dropped 10% year-on-year, according to Japan Petrochemical Industry Association. The month-on-month upsurge in output was due to the end of outages at various ethylene crackers.

As MRC informed earlier, Mitsubishi Chemical restarted its No. 2 ethylene cracker located at Kashima in Japan, with the production capacity of 476,000 tpa and a propylene production capacity of 260,000 tpa. The cracker was taken off-stream on October 8, 2012, and restarted operations on October 27-28, 2012.

Another Japanese ethylene producer, JX Nippon Oil & Energy, resumed operations at its sole cracker at Kawasaki (with the production capacity of 460 000 tpa) on October 11, after an extended maintenance that began on August 13.

Besides, Idemitsu Kosan restarted its 623,000 tpa ethylene cracker at Tokuyama, Yamaguchi Prefecture, at the end of October after scheduled turnaround that had been going on since September 4.

However, some Janapese makers mulls shutdown of their ethylene units in Japan. Thus, Mitsubishi plans to shut an ethylene unit, partly blaming the 'emergence of shale gas' in North America, while Mitsui Chemicals is going restructure its ethylene and polyolefins operations in Chiba in response to weak domestic demand and increased competition from the Middle East and China. The restructuring, which is expected to take place next year, includes reducing ethylene output from the two crackers at the site and closing of an HDPE plant.
MRC