Turkey raised the customs duties on PS imports from developing nations to 3%

MOSCOW (ICIS-MRC) -- The first week of the new year was quite calm in the Asian polyvinylchloride (PVC) market. Prices in the North-Eastern part of the country remained intact, while in the South-Eastern part there was an upsurge in prices on the back of the deficit, according to MRC Price report.

The first week of 2013 was rather quiet in the PVC market in North-East Asia since Japanese and Chinese markets were still closed due to the New Year holidays. Most price offers for PVC in the region remain in the range of USD970-980/tonne, CFR. Despite slow renewal of demand for PVC in North-East Asia, there is a high probability that prices will soon be subject to an upward pressure on increasing ethylene costs, expectations of a large number of speculations, more stable demand in India and unsteady balance in South-East Asia.

In the domestic Chinese market, prices of acetylene PVC were in the range of Yuan 6,350-6,450/tonne, FD. Prices of ethylene PVC rose on the growth of ethylene prices and improving balance. The price dispersion of ethylene PVC increased to the level of Yuan 6,600-6,900/tonne, FD. Cold weather is restricting demand in the domestic market, while some market players expect a gradual improvement starting from the middle of the first quarter. Meantime, the demand is quite low since most converters still refuse to replenish their stocks even in anticipation of New Year as per the lunar calendar.

PVC market in South-East Asia experiences shortage due to lack of PVC exports from Thailand and Indonesia, which was caused by deficit of vinyl chloride monomer (VCM) shipments and Petronas’ exit from the vinyl business early this year. PVC prices grew to the level of USD970-1,000/tonne, CFR.

US PVC producers have announced the further increase of export prices. Prices for February shipments are voiced in the range of USD940-950/tonne, FAS Houston. Deals for shipment in February for Russian companies are concluded in the range of USD1,040-1,070/tonne, CFR St Petersburg. European makers still keep their export PVC prices for January shipments at the December level, namely, EUR720-780/tonne, FCA.
MRC

MOSCOW (MRC) -- Radio-news as of 09.01.13.

1. Russian production of PET in 2013 to grow to 600 thousand tonnes

In 2013, Russian plant Polief, Bashkiriya, plans to increase production of PET granulate to 70,000 tonnes. After the successful launch of the project its total annual production will have made about 600 thousand tonnes by the end of the year. The company in December received the permission from Glavgosekspertiza to expand the production of bottle PET. The project will increase the capacity of PET production from 140 thousand to 210 thousand tonnes per year. The increase in production capacity could result in oversupply of the material in the domestic market. To keep the market balance Russian producers are going to continue displacing Asian imports and increasing exports.

2. Dow restarted St. Charles olefins plant.

The Dow Chemical Company announced that the Company's St. Charles Olefins 2 Plant near Hahnville, La. began producing on-spec ethylene on December 25, 2012, meeting previously announced targets to re-start the plant by year-end 2012. The start-up of Dow's St. Charles ethylene plant represents the first major milestone within the company's U.S. Gulf Coast investment strategy.This milestone is part of Dow's comprehensive investment plan to further connect its U.S. operations with cost-advantaged feedstocks from increasing supplies of U.S. shale gas and deliver long-term competitive advantage for Dow's downstream businesses.

3. Styron announces price increases for PS in Europe.

Styron Europe and its affiliate companies in Europe announced today price increases for all polystyrene grades. Effective immediately, or as existing contract terms allow, the January contract and spot prices for the products listed below will increase prices of general purpose polystyrene grades and high impact polystyrene grades by 110 Euros per metric tonnes, said Styron in its press release. The price increase responds to the rising costs associated with the manufacturing of polystyrene grades in Europe.

4. Mexichem regards consequences of VCM force majeure at PPG facility.

Mexichem, the Latin American leader in the production of polyvinyl chloride, continued with internal discussions in an effort to respond to a force majeure announced last week by its feedstock VCM supplier PPG in the USA. PPG declared force majeure for liquid caustic soda on a system-wide basis and on vinyl chloride monomer produced at its Lake Charles, Louisiana facility on December 27 following a chemical fire that began three days prior.
MRC

MOSCOW (MRC) -- D&L Polymer and Colours Inc (DLPC), a unit of D&L Industries Inc, has united with a Japan’s leading chemical engineering company Showa Denko for the local and worldwide supply of Bionolle Starcla, a recyclable compound that can produce biodegradable plastic bags, according to D&L's press release.

DLPC and Showa Denko K.K., have inked an original equipment manufacturing (OEM) agreement covering the compounding, manufacturing, and distribution both in the Philippines and worldwide, of Bionolle Starcla - a starch-based material that is fully biodegradable and compostable and designed to run on conventional plastic blown film lines. It can easily be decomposed.

According to the agreement, DLPC will provide a full scope of services, including export supply and local sales. The contract is valid until 19 November 2013 with automatic yearly renewal. Exports have already started in December 2012 with DLPC’s first shipment to Japan.

"Bionolle Starcla will breathe new life into the plastics industry, which has lost almost 40 percent of its business to the bans (by local government units)," said Lester Lao, managing director of DLPC. As MRC informed earlier, cities in a number of Asian countries, including China, Hong Kong, India, Indonesia, Nepal, Pakistan, the Philippines, Singapore and Taiwan, as well as in Europe are currently on the warpath against plastic shopping bags since they cause different echological problems. In mid-January, 2012, environmental organisations called on the European Commission (EC) to finally move toward regulating plastic bags.

D&L Industries, Inc.'s main business is the manufacturing of customized specialty food ingredients. It also makes specialty raw materials for the plastics industry, and is the first and only company in the Philippines that creates and develops customized aerosol products.

D&L Polymer and Colours Inc. (DLPC) was established for the development and production of specialty plastic compounds, precolored compounds and color & additive masterbatches aimed primarily for the export market and local multinational plastic processors. DLPC is the only company in the Philippines engaged in the production of biodegradable compounds and Bionolle Starcla is the latest addition to its products.

Showa Denko K.K. is a major manufacturer and marketer of chemical products serving a wide range of fields ranging from heavy industries, to the electronic and computer industries. The company has overseas operations and a joint venture with Netherlands-based Montell and Nippon Petrochemicals to manufacture and market polypropylenes (PP).
MRC

MOSCOW (MRC) -- Russian plant Polief, Bashkiriya plans in 2013 to increase production of PET granulate by 70,000 tonnes. After successful launch of the project its total annual production by the end of the year will have made about 600,000 tonnes, according MRC ScanPlast.

According to the Polief' press service, the company in December received the permission from Glavgosekspertiza to expand the production of bottle PET. A new SSP reactor was delivered to the site in the autumn of 2012. The company scheduled to complete the project "PET-210" by the end of this year. The project will increase the capacity of PET production from 140,000 to 210,000 tonnes per year.

MRC analysts note that the increase in production capacity could result in oversupply of the material in the domestic market. To keep the balance of the market Russian producers plan to continue the displacement of Asian imports and increase the export shipments.

To the date, the total capacity of the Russian makers of bottle PET is about 530,000 tonnes per year. The annual capacity of Alco-Naphtha, Kaliningrad makes 220,000 tonnes. Production capacity of Senezh, Solnechnogorsk makes 100,000 tonnes per year. Sibur’s production of PET in Tver and Blagoveshchensk makes 70,000 and 140,000 tonnes per year, respectively.


MRC