Dow applies for US permit for the largest ethylene plant

(bloomberg) -- Dow Chemical, the largest U.S. chemical maker by sales, applied for a federal permit to build the company’s biggest ethylene plant as cheap natural gas gives manufacturers a cost advantage.

As MRC informed earlier, Dow Chemical would construct a new world-scale ethylene production plant at Dow Texas Operations in Freeport, Texas, as part of Dow's previously announced comprehensive plan to further connect its U.S. operations with cost-advantaged feedstocks available from increasing supplies of U.S. shale gas.

The plant in Freeport will have capacity to make 1.5 million tonnes of ethylene a year, according to Nancy Lamb, a Dow spokeswoman.

That’s the same size as Texas ethylene plants proposed by Chevron Phillips Chemical Co. and Exxon Mobil Corp. (XOM) and it would be Dow’s largest in the world, according to data compiled by Bloomberg.

Construction of the USD1.7 billion plant would begin in January 2014 with operations to begin in January 2017.

Hydraulic fracturing, known as fracking, has increased supplies of natural gas liquids such as ethane and propane, which are converted to ethylene for use in plastics, antifreeze and hundreds of other products.

Dow is investing a total of USD4 billion in Texas and Louisiana through 2017 to increase output of ethylene and propylene. The Gulf Coast investments will boost earnings by at least USD2 billion a year after the new cracker starts, according to Andrew Liveris, Dow chairman and chief executive officertation.
MRC

MOSCOW (MRC) - Despite the rollover of the contract price of ethylene, some European makers managed to increase export prices of polyethylene (PE). European producers are going to continue the upward trend in January, according to ICIS-MRC Price report.

Many market participants expected European prices of PE to be cut in December, on low demand and the need to "clean up" their stock inventories of European makers in anticipation of the New Year. The contract price of ethylene in Europe for delivery in December remained at the level of November, but PE prices, on the contrary, increased.

The increased demand for polyethylene from CIS markets, as well as a limited supply of polyethylene due to lower capacity utilization allow European producers to keep export prices for December at November level, while prices of some grades increased by EUR10-40/tonne.

Most European makers increased export prices of HDPE for December in the markets of CIS countries by EUR10-20/tonne, from November, to EUR1,250-1,320/tonne, FCA. Only a few European makers have left their prices at November level. The prices of low-density polyethylene were left unchanged.

LLDPE for CIS markets increased more significantly. Amid large number of orders European makers have raised their export prices by EUR15-40/tonne, from November. Deals for December LLDPE C6 were at EUR1,400-1,520/tonne, FCA.

In January 2013, many European makers are going to continue the upward trend of prices of polyethylene, citing the high prices of feedstock (oil and naphtha), and low margins of production.

MRC

MOSCOW (MRC) - Polymer-Vector (Kemerovo), engaged in the processing of chemically contaminated plastic wastes, is going to double its processing volumes in 2013, reports Interfax-Siberia with the refrence to the General Director, Vladimir Rogov.

Thus, the company will be able to process up to 1.2 thousand tonnes of plastic wastes and to increase the production of special granules up to 80 tonnes per month to be used in the production of plastic containers, paving tiles and curbs, the polypropylene (PP) tape (the analogue of metal packaging tape).

LLC "Polymer-Vector", founded on October 2, 2007, is a resident of the Kuzbass Technopark. The company's activity includes the processing of chemically contaminated plastic wastes by using innovative waste technology. The company manufactures products from the recycled plastic granules, obtained from the processing of plastic wastes into such products as, for example, LDPE sleeve, polypropylene (PP), plastic plugs (stemming) for wells, the polymer-sand tightening, polymer-sand tiles and curbs to them, and many more.

According to the company's data, the polymer wastes makes about 12% of all the household wastes in Russia. During one year, the country produces nearly 800,000 tonnes of plastic wastes, the bulk of which is stored in landfills and only 10% is recycled.
MRC

(hydrocarbonprocessing) -- Pertamina said earlier this week that domestic petrochemical production isn't keeping up with over USD5 billion worth of annual demand, making related industries heavily dependent on imports.

Indonesian state energy company PT Pertamina said Friday it has signed a memorandum of understanding with Mitsubishi Corp. to construct a petrochemical facility in Indonesia.

"We have huge potential to integrate the refinery and petrochemical industries... to become the main player in Indonesia and in the region," Pertamina CEO Karen Agustiawan said in a statement.

Pertamina didn't specify a financial value or a timeframe for the project. Product details were also not disclosed.

Pertamina also signed similar agreements with Thailand's PTT Global Chemical and South Korea's SK Global Chemical.

Pertamina said in a statement earlier this week that domestic petrochemical production isn't keeping up with over USD5 billion worth of annual demand, making related industries heavily dependent on imports.


MRC

(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