PET prices rose by 3,5-5% in Kazakhstan

MOSCOW (MRC) -- Last week, PET spot prices grew by Tenge11.5-15.5m/tonne in Kazakhstan, which is by 3,5-5% higher than the price level announced in the first half of January, according to MRC Price report.

Last week, the price offer for bottle PET in the domestic Kazakh market increased by Tenge11.5-15.5m/tonne from the previous week. The reason of the price increase was a rise in the cost of feedstock in China and good consumer activity from Kazakh converters of granulate. The price dispersion voiced by traders made Tenge330.5-331.5m/tonne, CPT Almaty, including VAT.

According to sellers, the PET market in Kazakhstan had perked up noticeably by mid-January. Market players did not expect a noticeable improvement in sales at the beginning of the year. However, this year, sales of the material in January improved significantly when compared with the indices of the past years, a source said. Market participants also noted that producers of sunflower oil are showing the high consumption of preforms.

According to a trader, the market demand was due to a price hike of PET for the past two months. Many buyers anticipate that PET bottle prices will have been even higher by the beginning of the season. It is worth noting that last week, purchasing prices of Asian PET granulate rose by USD30-40/tonne, following the growth of prices in foreign markets.
MRC

MOSCOW (MRC) - In December the imports of polyethylene (PE) to Ukraine increased to 33,800 tonnes. Total imports of PE in 2012 into the Ukrainian market exceeded 331,000 tonnes, up 10% year on year, according to MRC DataScope.

In December, imports of polyethylene to Ukraine increased by 18% from November and exceeded 33,800 tonnes. Market participants hurried to replenish inventories on the back of anticipation of price increases. In general, in 2012 imports of polyethylene to Ukraine grew by 10% and exceeded the level of 331,000 tonnes.

Imports of high-density polyethylene (HDPE) to Ukraine in December in fact were at the November level and exceeded 14,200 tonnes. Ukrainian companies did not managed to form additional inventories due to the limited supply of HDPE from major suppliers in Europe and Russia.

The imports of HDPE did not grow so notably in the first eight months of 2012 due to the production of domestic maker Karpatneftehim (Lukoil Group), but in September, after the stoppage of the Ukrainian producer, imports began grow seriously. In 2012, the total imports of HDPE increased by 5% and amounted to 132,300 tonnes.
External supply of low-density polyethylene (LDPE) to Ukraine in December increased to 11,000 tonnes, from 9,000 tonnes in November. This significant increase in imports resulted from the desire of some market participants to replenish inventories in anticipation of the January price increases on international markets. Total imports of LDPE last year amounted to 114,300 tonnes.

The high dynamics of growth of demand remains in the market of linear polyethylene (LLDPE). In December, imports of LLDPE increased by 63% in anticipation of price increases and 7,600 tonnes. Last year, the demand for LLDPE in the Ukrainian market increased by 39% compared with the 2011 and amounted to about 74,000 tonnes.



MRC

MOSCOW (MRC) -- Czech petrochemical company Unipetrol AS said it expects to post a significant pretax loss in the fourth quarter because of a deteriorating external refining environment and charges taken as part of the company's plan to sell refining segment subsidiaries, as per Reuters.

Unipetrol, in which PKN has a 63 % share,said on Friday its 4.5-billion-crown (USD236 million) impairment
charge reflected a drop in asset values due to a tough refining environment as well as its intention to sell some assets.

As MRC wrote earlier, Poland's top oil refiner PKN Orlen posted an unexpected fourth-quarter operating loss of 700 million zlotys (USD227 million) due to a writedown in the refining part of Czech unit Unipetrol.

Unipetrol added its earnings before interest and tax were flat excluding the writedown. Refiners across Europe are seeing their margins squeezed as a slowdown in demand due to a faltering economy has left the
industry with excess capacity.

The company will release its full 2012 financial earnings on Jan. 23.

Accordinig to MRC data, in 2012, Czech Unipetrol increased supplies of PP and PE to Ukraine by 34% and 23% respectively. In total Ukrainian converter delivered more than 21 tons of polyolefins by Unipetrol production.


MRC

MOSCOW (MRC) -- Sahara Petrochemicals’ net profit surged 1,187 % to SR64.49 million in the fourth quarter of 2012 compared to SR5.01 million for the same quarter last year, and an increase of 48% from SR43.71 million from the preceding quarter, said Saudigazette.

The increase of the net profit during the fourth quarter compared with the same quarter of the previous year is attributed to the increase of the sales volumes after completing the scheduled periodic maintenance activities and the improvement of the product prices.

Gross profit during the fourth quarter amounted to SR69.28 million compared with SR32.09 million for the same quarter last year with an increase of 116%.

Operating profit during fourth quarter amounted to SR44.74 million compared with SR8.88 million for the same quarter last year with an increase of 404%.

Net profit during 12 months amounted to SR204.45 million compared to SR411.58 million for the same period last year with a decrease of 50%.

Earnings per share during twelve months amounted to SR0.47, based on that the number of shares is 438.8 million, compared to SR1.15 for the same period last year, based on the average number of shares which was 305.8 million, as the existing number of shares has increased compared with the last year after the company’s capital increase in the fourth quarter of the last year. Gross profit during 12 months amounted to SR53.31 million compared with SR240.37 million for the same period last year, with a decrease of 78%.

Operating loss during 12 months amounted to SR27.80 million compared to a profit of SR167.66 million for the same period last year.

As MRC wrote earlier, in December 2012, Sahara Petrochemicals Company announced that its affiliate, Sahara & Maaden Petrochemicals Company (SAMAPCO) had signed financing agreements for a total amount of SAR 1980.75 million (USD 528.2 million) for the development of SAMAPCOs Ethylene Dichloride and Caustic Soda petrochemical project located in Jubail Industrial City.

"Sahara Petrochemicals" is a Saudi joint stock company estblished in 7th April 2004 with a paid up capital of SR 1.5 billion and later raised to be SR 4,387,950,000.

"Sahara Petrochemicals" participates in the formation of some limited liability companies in Jubail Industrial City, as joint ventures with foreign partners who enjoy distinguished experiences and latest advanced technologies to produce and market primary materials like propylene, polypropylene and polyethylene.


MRC

MOSCOW (MRC) -- Total Petrochemicals and Refining USA reported a malfunction in the sulfur recovery unit of its Port Arthur, Texas, refinery Saturday, Foxbusiness.

The malfunction resulted in increased emissions at the 225,500-barrel-a-day refinery, according to a filing with Texas pollution regulators. The company, a segment of Total SA, reported that "acid gas shedding procedures" were implemented.

A spokesman didn't immediately respond to a request for comment.

In September 2012, MRC wrote, Total Petrochemicals and Refining USA also reported pollution in excess of permitted levels from a coking unit at the same site in Port Arthur, Texas . The excess emissions resulted from a malfunction on wet gas compressors.

Total, one of the world's leading petrochemicals companies with business in Europe, the United States, the Middle East and Asia. Total has two main product groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.


MRC