Egyptian players complain about limited local PVC and PE supplies

(apic-on-line) -- In Egypt, players moan about limited local supply levels for the locally held PVC and PE markets.

Polyethylene (PE) and polypropylene (PP) demand in Egypt is weakening in the uncertain political climate ahead of a referendum on Saturday on a controversial draft constitution.

In the PVC market, a source from the local producer EPC, had commented on their price cut decision and said, “Our prices are reasonable considering the current market conditions in December but we might issue some increases if import prices continue to move up.” The source had also added that they had no supply issues and that they were running their plant at full capacity.

However, players in the market complain about the limited supplies from EPC. A converter noted, “EPC has limited supplies to provide the market and this situation coupled with increasing import American PVC prices cause local distributors to hold onto their offer levels.” A trader also commented, “Overall PVC demand is not bad but availability is limited.”

Meanwhile, similar supply issues are pronounced in the PE market, too. Players cry that there are no HDPE film supplies from the local producer SIDPEC, who had previously informed the market that they are not going to supply HDPE injection until the end of year but reported no issues on HDPE film and blow moulding.

A trader remarked last week, “SIDPEC supplies no HDPE film and we believe that this situation might stem from the fact that they switched their production line to HDPE blow moulding. This situation provides distributors ground to lift up their prices.” Another trader noted, “Overall demand is very weak due to the ongoing political issues inside the country and most converters are running their plants at lower capacities. Yet, limited supplies continue to pull up prices. Some traders, fearing further increases, prefer to hold on to their existing quantities.”

Egypt's local PE production is limited to Sidi Kerir Petrochemicals Co (SIDPEC), while PP production is limited to Oriental Petrochemicals Co (OPC) and Egyptian Propylene and Polypropylene Co (EPPC).
MRC

(presstv) -- A report says South African petrochemicals group Sasol will continue investing in Iran, despite news last month pointing to the company’s potential disinvestment due to a possible risk of sanctions.

Eric Roper, managing director of Aryasasol Polymer Company, a joint venture between Iran's Pars Petrochemicals Company and Sasol Polymers, a subdivision of Sasol’s chemical cluster, told Fars News Agency on Sunday, that the company “is satisfied with investment in Iran, and does not have any intention of leaving.” The products of the joint venture -- ethylene and polyethylene -- are used in the production of plastics.

Roper also rejected news about the company’s potential divestment.

In October, Sasol said in a filing to the United States Securities and Exchange Commission that due to the company’s investments in Iran, there was a possible risk that sanctions may be imposed on it by the United States, the European Union, and the United Nations.

Sasol has a 50 % stake in Arya Sasol Polymer company, a joint venture with Pars Petrochemical Company of Iran. The venture produces ethylene and polyethylene, which are used in the production of plastics.

MRC

(plasteurope) -- The Brazilian government is developing a timetable to reduce the tax burden on petrochemicals companies as part of planned measures to revitalise the sector, according to Luciano Coutinho, president of the national development bank, BNDES.

The sector has been impacted by a long period of appreciation of the Brazilian real and rising international competition, he said at a conference organised by the National Confederation of Industries (CNI, Brasilia) earlier this month.

“It is essential that we preserve the Brazilian petrochemicals and chemicals industry, because we have a huge opportunity regarding the raw materials that will become available in the future,” Coutinho was quoted as saying by local news service Valor Economico. Brazil plans to use gas produced from its offshore pre-salt oil discoveries for petrochemicals production. The government is also preparing a series of incentives and support for the process of innovation, Coutinho said.

Details of the proposed tax cuts and other measures were not discussed, as they depend on the final decision from the Ministry of Finance, he added.

The Brazilian petrochemicals sector is based mainly on naphtha feedstock, and faces strong competition from US production based on low-cost shale gas feedstock.

As MRC wrote earlier, the Foreign Trade Chamber (Camex) has issued a ruling which lowers the import tax on two products used by the Brazilian industry. According to the Brazilian Ministry of Development, Industry and Foreign Trade, to which the Camex is linked, the tax has been lowered from 16% to 2% on imports of biaxially oriented polypropylene film (Bopp).

MRC

(polynews) -- China’s Wanxiang Group Corp. is expected to take over lithium-ion battery company A123 Systems Inc. now that Johnson Controls Inc. has backed out of a competing offer to buy the firm’s assets in a bankruptcy auction.

A123 - with headquarters in Waltham, Mass., and battery production in Romulus, Mich., and Livonia, Mich. - entered Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court in Delaware in October, with a plan in place for JCI to buy the assets in a deal worth USD125 million.

Wanxiang, based in Hangzhou, entered a competing bid of USD257 million and representatives from A123 announced Dec. 9 that they accepted that higher offer. JCI said in a press release that it was withdrawing from the process.

Interest in battery technology is continuing to grow in the U.S., however, despite the bankruptcy by A123, one of the first auto-focused lithium-ion battery makers in North America.

Lithium-ion batteries use a polymer film at the core of every cell, and also use plastics extensively in structural parts, cooling systems and electrical connections.

JCI is part of a USD120 million research project combining business, government and university researchers to improve battery storage and create next-general battery technology.

Other partners in JCESR are Dow Chemical Co. of Midland, Mich., Applied Materials Inc. of Santa Clara, Calif., Clean Energy Trust of Chicago, Ill., Northwestern University, the University of Chicago, and University of Illinois’ Urbana-Champaign and Chicago campuses. Dow also has its own joint venture lithium-ion battery operation, Dow Kokam LLC of Midland.
MRC

(ringier) -- PT Enviro Pallets plans to invest a total of USВ10 million to open a factory that will recycle plastic waste into shipping pallets in Tabanan regency by the end of December.

When opened, PT Enviro Pallets will process around 30 tons of plastic waste every day to produce the shipping pallets, which will be sold locally, as well as being exported to several overseas countries.

J. Roger Harkin, president director of the company, said that the planned factory would process plastic bags, food wrapping, noodle sachets and other plastic waste. It will require at least 30 tons of plastic waste a day to produce shipping pallets.

"I hope we can make a huge difference to the island’s environment as we will process around 30 percent of its total daily plastic waste produced by individuals, households and industry. The beaches, rivers and the ground are expected to be free from the mountains of plastic waste," said Harkin.

Data from the provincial environmental agency shows that there are about 10,000 cubic meters of garbage produced by residents on the island every day, about 15% of this is plastic waste. However, only 5,000 cubic meters of all the garbage is processed by the government because of the limited budget and lack of human resources.

We remind that, as MRC informed earlier, Polymer-Vector (Kemerovo), engaged in the processing of chemically contaminated plastic wastes, is going to double its processing volumes in 2013. 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).
MRC