US demand for post-consumer plastic rising: study

(canplastics) -- Demand for U.S. post-consumer recycled plastic is expected to rise 5.9% annually to nearly 3.4 billion pounds in 2016, according to a new study by market research firm The Freedonia Group.

Gains will be driven by a number of factors, the report said, including a growing emphasis on sustainability among packaging and consumer product manufacturers, advancements in processing and sorting technologies allowing a wider variety of plastic to be recycled, and an improved collection infrastructure that raises the plastic recycling rate. Continued support by federal, state, and local governments for recycling efforts will also provide a significant boost to recycled plastic collection, processing, and demand.

But the overall U.S. plastic recycling rate will remain relatively low through 2016, with less than 7% of total plastic demand. Some of the challenges include minimal recycling in construction products, motor vehicles and packaging film. Packaging will continue to lead the recycled plastic market in 2016, the study said, with strongest gains expected for food and beverage bottles and clamshell containers, fueled by rising production of recycled resins suitable for food contact uses.

A rebound in U.S. construction activity will drive strong demand for recycled plastics in construction product markets, particularly lumber and pipe applications. While advances in the motor vehicle market will be limited by the highly mature battery segment, use of recycled plastic in fabrics and other vehicle interior applications will increase at a robust pace.

Last year, PET and HDPE were the two leading resins used in recycled plastic products, accounting for more than 70 per cent of demand; going forward, PET will see "average gains" in demand, the study said, due to increased recycled content in bottles and thermoformed containers. HDPE will see fewer increases and will limit the availability of recycled resin.

MRC

(hydrocarbonprocessing) -- Dow's CEO noted that many capital investments have already been planned based on the assumption of abundant and affordable natural gas, yet those were not reflected in the report. Dow, for example, is planning to build new ethylene and propylene capacity in the US Gulf region by the end of the decade.

Dow Chemical believes a recently-completed study showing a positive US economic impact from proposed LNG export projects is misleading and fails to give due consideration to the importance of manufacturing, the US-based company said on Friday.

"The report issued by the DOE on liquefied natural gas (LNG) exports is flawed, misleading, and based on outdated, inaccurate and incomplete economic data," said Andrew N. Liveris, Dow’s CEO.

Liveris said the report also fails to consider the "tremendous competitive advantage" that cheap natural gas prices could offer to the US if held for domestic use.

"Instead, the report offers the baffling conclusion that the US would be better off using its domestic natural gas advantage to fuel growth and jobs in other regions versus strengthening the US economy through manufacturing and benefiting consumers with lower energy costs," Liveris said.

The CEO noted that numerous capital investments had already been made that were predicated on abundant and affordable natural gas, yet those were not reflected in the report. Dow Chemical, for example, is planning to build new ethylene and propylene capacity in the US Gulf region by the end of the decade.

"Unfortunately, policy makers have been given a flawed report that overlooks vital dynamics, including a manufacturing renaissance that is already underway and much needed by this country," Liveris said.

The Dow Chemical Company is an American multinational chemical corporation. Dow Chemical is a provider of plastics, chemicals, and agricultural products. It is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.
MRC

(apic-online) -- Showa Denko KK (SDK), citing the rapidly changing business environment, has decided to "drastically reorganize" the roles of its plants, business divisions and research and development organization.

Effective 4 Jan. 2013, plants will serve as the core of SDK's production and development, and contribute to the benefit of customers by creating new technologies and productions, while business divisions will be responsible for devising and implementing strategies for their respective businesses. Research and development will be reorganized to improve efficiency so that next generation businesses can be created and the development in growth areas can be accelerated.

Among numerous changes, the existing Olefins Division will be integrated with the existing Organic Chemicals Division to form the Petrochemicals Division, which will be under the direct control of the chief executive and will include olefins and organic chemicals departments.

SDK also announced several executive changes that will take effect on 4 Jan. These include Takashi Miyazaki, currently executive officer of the petrochemicals sector and general manager of the Olefins Division, being appointed general manager of the new Petrochemicals Division and olefins de-partment.

Showa Denko K.K. is mainly engaged in the petrochemical business. The Petrochemical segment manufactures and sells olefin, organic chemicals and others. The Chemical Product segment supplies chemicals, industrial gases, special gas and functional drug for semiconductors, functional high molecular materials, among others.
MRC

(hydrocarbonprocessing) -- The year of 2013 is going to be a weak year for global economic demand, thus, making it difficult to forecast performance for the world's largest chemicals company - BASF, according to the company's North American chief, Dr. Hans Ulrich-Engel.

"We will have to get used to the fact that volatility is the new normal," said Dr. Engel in an interview with The Wall Street Journal. "The best expression is that we are living in a world of "Vuca:" volatility, uncertainty, complexity, and ambiguity."

Dr. Engel said that BASF customer behavior has changed in the years since the 2008 financial crisis. Where the company once had insight to its order flow on a rolling basis of three to six months, that is less true today. Thus, the company is still in its 2013 budgeting process and did not yet have specific guidance for the year ahead.

We remind that BASF is strenthening its position worldwide. Thus, it intends to construct a new EUR150m emissions catalysts production unit in Sroda Slaska, a Special Economic Zone near Wroclaw, Poland. The construction of the facility is scheduled to start by the end of 2012, while the production is to be launched in Q1 2014. Besides, the company opened the first Innovation Campus Asia Pacific and its new Greater China headquarters at its site in Pudong, Shanghai. The investment amounts to EUR 55 million. With this expansion the company's site will be one of BASF's largest outside of Germany.
MRC

(plastemart) -- Russian oil giant Rosneft held talks with China to discuss details over the construction and operation of Chinese-Russian Eastern Petrochemical Company, as per dowjones.com

Rosneft Chief Executive Officer Igor Sechin and Chinese Vice Premier Wang Qishan discussed the parameters of an inter-governmental agreement on the oil-refining and petrochemical complex.

We remind, as MRC informed previously, that Rosneft has grown in size after agreeing a USD28 billion deal to acquire 50% of TNK-BP from Russian billionaire-led consortium Alfa-Access-Renova (AAR). The state player is splashing out a total of USD45.1 billion in cash as well as a sizeable chunk of its share base for full control of the BP-AAR joint venture.
MRC