Bayer opens Korean development center focused on polycarbonate applications

MOSCOW (MRC) -- Bayer MaterialScience has opened its first Polymer Development & Technology Center in South Korea, with a goal of developing new polycarbonate applications for Korean firms, said company in its Statement.

Located in Yongin, near Seoul, the new center adds to Bayer's global network of research and development hubs, and is supported by its network of major production sites in the Asia Pacific region.

"Over the past decade, Korea has emerged as a center for cutting-edge, high-tech products," noted Michael Koenig, executive committee member and head of Bayer's polycarbonate business unit. "Large Korean companies are offering their latest technology worldwide, but their development and research mainly happens in Korea. With our new tech center, we can be closer to them, better engage in long-term R&D partnerships and fulfill their needs with greater effi-ciency and speed."

The center, which Koenig believes will become a driving force in the further development of innovative products in Korea, will provide technical advice for Korean customers regarding high-tech polycarbonate applications.

As MRC wrote earlier, in late December 2012 MRC released the first version of a new report - DataScope "Polycarbonate in Russia."

The new report provides the latest information on Russian imports and exports in the context of the production, customers, polymer grades and consumption sectors. A similar report will be released on Ukraine in the near future.


MRC

MOSCOW (MRC) -- In Egypt, players in the PE market complain about tightness in local supplies especially for HDPE film, HDPE injection and LDPE film, as per Apic-online.

Local producer SIDPEC's HDPE film deliveries are disrupted as they are still running their line for HDPE blow moulding. Meanwhile, for injection grade, the producer had reported at the beginning of December 2012 that they would not have any high MI HDPE injection availability until the end of the year. There have been no updates regarding SIDPEC's HDPE injection production by the time of publishing. The producer started the month of January with EGP850-950/ton (USD130-146) hikes.

As MRC wrote earlier, players voice their complaints about the locally held supplies although overall demand inside the country continues to perform weakly given the ongoing economic woes and political instability. Plus, the increasing dollar parity hampers the purchasing power.

A trader commented, "Players complain about SIDPEC's HDPE film deliveries as they still have not received any cargoes from the producer although SIDPEC should have already switched their production line to HDPE film." In response to these complaints, a source from SIDPEC cited at the end of last week, "We are still running our HDPE blow moulding line. We believe that it might take a couple more days to switch our line to HDPE film. If we cannot switch by the end of the week, the next probable switch date might be Tuesday."

Due to lack of materials, some converters were reported to have shut down their plants while some elected to stop their production since they struggle to afford higher prices caused by the higher dollar parity and supply issues. Apart from these, some distributors were reported to be holding onto their existing stocks as they cannot be sure of the market situation amidst volatile economic conditions.

MRC

MOSCOW (MRC) -- MRC news digest as of 14.01.13.

1. Asian manufacturers EPS increased prices for the markets of Russia and Ukraine.

Since the beginning of 2013 Asian producers of expandable polystyrene (EPS), which are major importers to Russia and Ukraine, again raised the price offer. Asian makers of EPS continue to raise price on rising prices of styrene monomer in Asia, which reached its peak on 4, January to USD1,800/tonne CFR China. Last week, Russian companies have reported that the price of Asian EPS was settled at USD1,950-1,960/tonne, FOB China and to USD1,980-1,990/tonne, FOB Taiwan. Korean EPS was offered at USD2,140-2,150/tonne, FOB Pusan. By the end of the week the price of Chinese EPS again increased by USD10/tonne, reaching a USD2,070-2,080/tonne, CIF in the ports of Novorossiysk and St. Petersburg and USD2,020/tonne, CIF East. Ukrainian companies reported that Asian prices were at USD2,055-2,070/tonne, CIF Odessa. This price level is too high for Ukrainian customers of EPS, so, they had to refuse to buy the material.

2. The first week was calm in the PVC market in Asia.

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. 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. In the domestic Chinese market, prices of acetylene PVC were in the range of Yuan 6,350-6,450/tonne, FD. The price dispersion of ethylene PVC increased to the level of Yuan 6,600-6,900/tonne, FD. 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.

3. Russian production of PET in 2013 to grow to 600,000 tonnes.

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 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.

4. European export prices of PE for CIS markets grew by EUR20-50/tonne.

European makers announced increase in export prices of PE for the CIS markets by EUR20-50/tonne, on high costs of feedstock, low margins and reduced capacity utilization. Though the contract price of ethylene in Europe for January remained at the level of December - EUR1,275/tonne, FD NWE, European makers aim to raise export prices of polyethylene (PE) by EUR20-50/tonne. The smallest price increase was announced on low-density polyethylene (LDPE). The deals for European LDPE for January were agreed at EUR1,320-1,380 per tonne, FCA. The price of high-density polyethylene (HDPE) grew by EUR30-50/tonne, from December. This week the deals were discussed at EUR1,280-1,360/tonne, FCA.

5. European PP for CIS countries grew in value by EUR20-40/tonne.

Despite the reduction of the contract price of propylene, European makers increased January PP prices. The contract price of propylene in Europe for shipment in January was agreed by EUR13/tonne lower from December 2012. Despite this, European producers announced a necessity to raise export PP prices for the markets of CIS countries by EUR20-40/tonne from the previous month, citing low margins and limited export quotas. In December, European producers managed to preserve PP prices at November level despite the reduction of the contract price of propylene and weak demand and due to decrease in capacity utilization. Deals for homopolymer polypropylene for CIS countries were concluded on average in the range of EUR1,200-1,260/tonne, FCA. At the same time some producers reported that they would have to increase PP prices in January amid high feedstock prices and low margins. They voiced a necessity of a price rise by EUR50-75/tonne.

6. Price of Russian polystyrene to increase in January.

On the back of ongoing rising price of polystyrene (PS) in Europe and Asia, some Russian producers aim to increase PS price. From the beginning of 2013 price quotations of polystyrene and styrene monomer continue to increase in Europe and Asia. In Asia, the price of styrene monomer reached USD1,800/tonne, CFR China. In Europe contract price of styrene monomer for January was established at EUR1,488/tonne, FD NWE, up EUR55 from December 2012. If price quotations of styrene in the foreign markets grow further, the Russian producers will increase price offer in January. At the moment, the Russian makers sell PS in the same price range. Sources close to Nizhnekamskneftekhim report that the maker intends to increase the price of high-impact polystyrene and general purpose polystyrene in January 2013. The level of increase has not been agreed yet, but it is expected that the cost will increase by Rb2,000/tonne. The price of Salavat material also remains the same in the first working week of 2013. Gazprom neftkhim Salavat has not announced price increase yet, but traders are sceptical of this idea, citing the traditionally weak consumption of polystyrene in the beginning of the year.
MRC

MOSCOW (ICIS-MRC) - Since the beginning of 2013 Asian producers of expandable polystyrene (EPS), which are major importers to Russia and Ukraine, again raised the price offer, according to ICIS-MRC Price Report.

Asian makers of EPS continue to raise price on rising prices of styrene monomer in Asia, which reached its peak on 4, January to USD1,800/tonne CFR China.

Last week, Russian companies have reported that the price of Asian EPS was settled at USD1,950-1,960/tonne, FOB China and to USD1,980-1,990/tonne, FOB Taiwan. Korean EPS was offered at USD2,140-2,150/tonne, FOB Pusan.

By the end of the week the price of Chinese EPS again increased by USD10/tonne, reaching a USD2,070-2,080/tonne, CIF in the ports of Novorossiysk and St. Petersburg and USD2,020/tonne, CIF East.

Ukrainian companies reported that Asian prices were at USD2,055-2,070/tonne, CIF Odessa. This price level is too high for Ukrainian customers of EPS, so, they had to refuse to buy the material.

At the same time, Russian companies are going to buy Chinese EPS. In early February, China will celebrate the Chinese New Year, which will last until the middle of the month. Traders intend to contract small amounts of Chinese EPS in the second half of January, as an order in the first half of February is not possible.


MRC

MOSCOW (MRC) -- The conflict between dockers of the U.S. East Coast and international carriers has been partially settled. The two-week strike led to a delay in delivery dates of PVC from the USA, report MRC analysts in their Price Report.

On 27 December, 2012, dockers from the East Coast of the U.S. announced an indefinite strike because of disagreement with the terms of payment from international sea carriers. By mid-January, the international sea carriers and dockers managed to reach a partial agreement on new terms of payment. The final settlement of the issues is to be completed by 28 January, 2013.

Dockers strike resulted in a delay of delivery dates of the goods from the East Coast of the United States to all the destinations, including Russia. As reported by some Russian companies, the delay in shipments of PVC to Russia as per January contracts will make, at least, two weeks. The first shipment will begin after 20 January and, according to the most optimistic outlook, they will take place during the first decade of February.
MRC