In 2012, consumption of PET increased in all sectors except beer production

MOSCOW (MRC) - In 2012, the main sectors consumption of PET, such as the production of mineral water, carbonated soft drinks and other industries increased. The only sector that showed a negative trend for the third year in a row is brewing, according to MRC analysts.

Beer production in Russia has been falling down for the third year in a row, which made 974 mln. dkl beer last year. Compared with 2011, this indicator decreased by 2.1%. Market sources noted that a legislative policy of the state has a negative impact on the industry. However, the beer industry in 2012 benefited from the permission to pack beer in PET bottles. In Russia about 50% of beer is packed in PET containers.

Despite the decline in the production of beer, a positive change demonstrated such sectors of consumption of PET preforms, as the production of mineral waters and non-alcoholic carbonated beverages. At the end of the reporting period, production of non-alcoholic carbonated beverages grew by 12.8%. In total in 2012 Russian bottlers produced 378 mln. dkl of carbonated soft drinks. Production of mineral water increased by 9.6% for the year amounted to 3.690 million half-liters.

From other sectors of bottle PET consumption is also worth noting the production of juices, milk and unrefined sunflower oil. At the end of the last volume of the production increased by 7.6%, 7.2% and 42.7%, respectively.

In 2012, retail sales in Russia amounted to 21,319.9 billion, which is 5.9% higher than in 2011.

MRC

MOSCOW (MRC) -- Following rapid rise in prices in December and early January, last week Ukrainian converters reported about reduced price of bottle PET in the port by USD40-50/tonne, according to a MRC Price Report.

In December and early January, PET prices in foreign markets demonstrated an upward trend, and therefore prices for Ukrainian customers also increased. The situation changed in mid-January. According to Ukrainian converters, last week price quotation of Asian PET in Odessa's port decreased by USD40-50/tonne.

According to one of the converters, despite the fact that the main volumes for February deliveries were contracted in December, when the price of PET was just beginning to grow, the current downward movement of prices gives them opportunity to purchase PET for future supplies.

The price range of Chinese and Korean bottle PET was at USD1,590-1,620/tonne, CIF Odessa, excluding VAT.
Price quotation of the Middle Eastern bottle PET with freight made USD1,575-1,590/tonne, CIF Odessa, excluding VAT.

Price of Belarusian PET for Ukrainian consumers remained unchanged and was at USD1,685-1,695/tonne, DAP Kiev, excluding VAT.

MRC

MOSCOW (MRC) -- Valero Energy Corp. Tuesday reported a surge in profit, helped mainly by lower costs and expenses. Both earnings and revenues came in above analysts' expectations, said Rttnews.

Net income attributable to Valero stockholders jumped to USD1.0 billion or USD1.82 per share from USD45 million or USD0.08 per share in the same period last year.

On average, 19 analysts polled by Thomson Reuters expected the company to earn USD1.18 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the period totaled USD34.70 billion, up from USD34.67 billion last year. Analysts expected revenues of USD31.01 billion.

Cost of sales decreased to USD31.30 billion from USD32.74 billion last year. Operating expenses totaled USD33.1 billion, down from USD34.51 billion last year.

A significant decline in ethanol margins partially offset the increase in operating income, Valero said.
Fourth-quarter 2012 refining throughput volume averaged 2.64m bbls/day, down 73,000 bbls/day from the fourth quarter of 2011 mainly due to the lack of throughput volume at the group's Aruba refinery, which was shut down in the first quarter of 2012.

"This was Valero's best fourth-quarter earnings per share since 2005, and we made important progress on our strategic goals," said Valero chairman and CEO Bill Klesse.

"In the fourth quarter, we had a smooth start-up of our new hydrocracker at the Port Arthur refinery, which was the largest project in Valero's history. We also continued construction on our St Charles hydrocracker, which is scheduled for start-up in the second quarter of 2013. We believe these projects are perfectly suited for the current environment of strong distillate margins and inexpensive natural gas," he added.

Valero Energy Corporation is a Fortune 500 company based in San Antonio, and through its subsidiaries is the world’s largest independent petroleum refiner and marketer. Valero supplies fuel and products that improve people’s lives with 16 refineries and 10 ethanol plants stretching from the U.S. West and Gulf coasts to Canada, United Kingdom and the Caribbean.

Valero’s refineries produce gasoline, diesel, jet fuel, asphalt, petrochemicals, lubricants and other refined products.

MRC

MOSCOW (MRC) -- Vietnam on Sunday signed a deal with firms from Japan and Kuwait to build an oil refinery complex worth nearly USD9 billion as part of efforts to meet its growing energy needs, reported Hydrocarbonprocessing.

The Nghi Son refinery, which is due to start operating by 2017 in Thanh Hoa province, about 125 miles south of Hanoi, will turn Kuwaiti oil into gasoline and other petroleum products. It will be able to process 10 million tpy of crude oil, the government said. As MRC infomred earlier, the petrochemical complex in Vietnam’s Nghi Son Economic Zone will include a 200,000-b/d refinery, as well as the production of polypropylene (PP) and aromatics.

The Nghi Son Refinery and petrochemical project is a joint venture between four sides, with close to equal shares. Idemitsu Kosan and Kuwait Petroleum International each hold a 35.1% stake in the planned refinery, while PetroVietnam and Mitsui Chemicals own 25.1% and 4.7%, respectively.

A ground-breaking ceremony for the Nghi Son refinery was held in May 2008 but the project has suffered a number of delays. It is still unclear when construction will start, an official from PetroVietnam said.

The country's first refinery Dung Quat with the capacity of 6.5 million tpy of crude opened in central Vietnam in 2009 after lengthy delays.

PetroVietnam has said that it hopes the two refineries would satisfy 65% of the nation's oil and gas needs. It is also preparing for a third refinery project in southern Ba Ria-Vung Tau province.
MRC

MOSCOW (MRC) -- PPG Industries yesterday announced the successful closing of the previously announced separation of its commodity chemicals business and merger of its wholly-owned subsidiary, Eagle Spinco Inc., with a subsidiary of Georgia Gulf Corporation, according to PPG's press release.

As MRC wrote earlier, Georgia Gulf and PPG Industries announced the merger between commodity chemicals business in July, 2012.

Pursuant to the merger, Eagle Spinco, the entity holding PPG’s former commodity chemicals business, is now a wholly-owned subsidiary of Georgia Gulf. The closing of the merger followed the expiration of the related exchange offer and the satisfaction of certain other conditions. The combined company formed by uniting Georgia Gulf with PPG’s former commodity chemicals business will be named Axiall Corporation and will be traded on the New York Stock Exchange under the ticker symbol AXLL.

In connection with the separation of PPG’s commodity chemicals business and its merger with Georgia Gulf, PPG also received approximately USD900 million in cash.

PPG will report the results of its commodity chemicals business for January 2013 and a net gain resulting from the separation as results from discontinued operations when it reports its results for the quarter ending March 31, 2013.

The Georgia Gulf Corporation has historically been a major manufacturer and marketer of chlorovinyls (caustic soda, chlorine, VCM, EDC, PVC resins, PVC rigid and flexible compounds) and aromatics (acetone, cumene, phenol). With the acquisition of Royal Group Technologies the company is now also a major producer of building materials ranging from piping and siding to window profiles, decking, and fencing.

PPG Industries Inc. is an Americain international company that produces paints, chemicals, optical components, specialty materials, glass and fiber glass. The company consists of more than 150 production units and offices in more than 60 countries. PPG industries is in the list of the top 500 U.S. corporations in terms of sales of. As MRC reported previously, PPG Industries plans to open its first factory in Russia near Tver. As of today, PPG Industries has no production facilities in Russia.
MRC