Judge orders Dow Chemical to pay USD1.2 billion in price-fixing case

MOSCOW (MRC) -- A federal judge in Kansas City, Kansas, ordered Dow Chemical Co on Wednesday to pay USD1.2 billion in a price-fixing case involving chemicals used to make foam products in cars, furniture and packaging, according to court documents, said Reuters.

Dow was one of several chemical company defendants named in a 2005 class action lawsuit alleging a conspiracy to fix urethane chemical prices, but it was the only defendant not to settle.

In January, Dow went to trial in Kansas City and in February a federal jury rendered a USD400 million verdict against the chemical company after finding that it conspired to fix prices of urethane.

On Wednesday, U.S. District Judge John W. Lungstrum denied Dow's request to overturn that verdict and the USD400 million in damages were tripled under U.S. antitrust law, bringing Dow's overall payment to USD1.2 billion.

David Bernick, an attorney for Dow, said he would appeal the judgment, saying the statistical formula used by an expert to calculate the price-fixing was not reliable.

"Dow looks forward to pursuing these and other grounds for reversal in its appeal," a Dow spokesman said in a news release. "Dow has always denied plaintiffs' allegations of price fixing." Joe Goldberg, an attorney for the plaintiffs, said he was pleased with the judgment.

"The jury found the conspiracy caused approximately USD400 million in damages to thousands of businesses around the United States," said Goldberg.

Other defendants in the case have settled. In 2006 Bayer AG agreed to pay USD55 million. In 2011 Huntsman International LLC agreed to pay USD33 million and BASF Corp agreed to pay USD51 million. In settling, none of the companies admitted any wrongdoing.

The Dow Chemical Company is an American multinational chemical corporation. As of 2007, it is the second-largest chemical manufacturer in the world by revenue (after BASF) and as of February 2009, the third-largest chemical company in the world by market capitalization (after BASF and DuPont). Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.MRC

MOSCOW (MRC) -- Abu Dhabi's state-owned International Petroleum Investment, Ipic, said its 2012 net profit surged on the back of better operating performance at its key units and a recovery in the market value of listed equities, said Reuters.

Ipic, which has interests in companies including Spain's Cepsa and Austrian oil group OMV, said net profit for 2012 rose to Dh6.4 billion (USD1.74billion) from Dh164.1 million in 2011.

"The profit increase...was attributable to the robust operational performance of CEPSA, NOVA Chemicals, and Borealis along with the recovery of certain listed equities held by Aabar," IPIC said in a statement on Tuesday. Through its Aabar Investments unit, it also owns a stake in Italian lender Unicredit.

As MRC wrote earlier, Uzbek government terminates the agreement with International Petroleum Investment Co (IPIC) of the United Arab Emirates to build a chemical complex in Navoi region, reports KazTAG. The reasons for termination of the agreement, reportedly was that the parties were unable to reach the figures that have been determined by the conditions of the document, so it was decided to proceed with the divorce.
In 2010 the company Uzkimesanoat and International Petroleum Investment Company agreed to build a complex for the production of ammonia and urea in the Navoi region worth USD1.34 billion.

International Petroleum Investment Company (IPIC) was created in 1984 to focus on oil-related purchases overseas. The company operates as a 50-50 venture between Abu Dhabi Investment Authority (ADIA) and the Abu Dhabi National Oil Co. (ADNOC).
MRC

MOSCOW (MRC) -- Kronos Worldwide, Inc. (KRO) reported a net loss for the first quarter of 2013 of USD41.1 million, compared to net income of USD136.9 million, in the first quarter of 2012, said Kronos.

Comparability of the company`s results was impacted by lower income from operations in the first quarter of 2013 principally due to lower average TiO2 selling prices and higher raw materials costs in 2013, as discussed further below.
Net sales of USD463.6 million in the first quarter of 2013 were USD97.7 million, or 17% lower than in the first quarter of 2012 primarily due to lower average TiO2 selling prices partially offset by slightly higher sales volumes. The company`s average TiO2 selling prices were 21% lower in the first quarter of 2013 as compared to the first quarter of 2012, and average selling prices at the end of the first quarter of 2013 were 7% lower than at the end of 2012.

TiO2 sales volumes for the first quarter of 2013 increased 1% as compared to the first quarter of 2012 due to increased customer demand in export markets offset in part by slightly lower demand in North American and European markets.

The company`s TiO2 segment loss (see description of non-GAAP information below) for the first quarter of 2013 was USD43.6 million as compared with segment profit of USD212.9 million in the first quarter of 2012. Segment profit in the first quarter of 2013 decreased primarily due to the negative effects of lower TiO2 selling prices, lower production volumes and higher raw materials costs. Our cost of sales per metric ton of TiO2 sold in the first quarter of 2013 was significantly higher than TiO2 sold in the first quarter of 2012, as a substantial portion of the TiO2 products we sold in the first quarter of 2012 was produced with lower-cost feedstock ore purchased in 2011, while a substantial portion of the TiO2 products we sold in 2013 was produced with higher-cost feedstock ore purchased in 2012. The Company`s TiO2 production volumes were 13% lower in the first quarter of 2013 as compared to the first quarter of 2012. During the first quarter of 2013, Kronos operated its production facilities at approximately 92% of practical capacity to align production and inventory levels to current and anticipated near-term customer demand levels. Fluctuations in currency exchange rates also affected segment profit comparisons, which decreased segment profit by approximately USD6 million.

Kronos Worldwide, Inc. is a major international producer of titanium dioxide products. As MRC wrote earlier, Kronos is also one of the largest suppliers of TiO2 to the Russian market. In 2012, Kronos took the fourth place in exports of titanium dioxide to Russia, with 8,760 tonnes. The most popular grade of Kronos TiO2 in Russia is Kronos 2220, which is used in the production of rigid compounds. In general, consumption of titanium dioxide in Russia the share Kronos production makes 13,25%.

The company produces more than 40 grades of TiO2. The company deliveres TiO2 to more than 100 countries in the world, but most of them are supplied to Europe and North America.
MRC

MOSCOW (MRC) -- Import of polypropylene (PP) to Russia remains still at a high level, despite the launch of new PP facilities.
April imports of PP to the Russian market made 22,500 tonnes, which is comparable with March indexes - 22,300 tonnes, according to MRC DataScope.

A new 180,000 tonne/year production of PP was launched in mid-February in Omsk by Polyom (Titan). In less than three months the new factory produced about 20,000 tonnes of homopolymer PP. April imports of homopolymer PP decreased by 28% compared with March to 8,000 tonnes.

The main decrease in import of homopolymer PP fell on raffia from Turkmenistan (44% compared with March) because of high export prices and temporary problems with the quality of the production. At the same time the supplies of Asian and Middle Eastern homopolymer PP increased this year significantly.

Imports of copolymers of propylene last month rose by 30% to 14,400 tonnes, the largest increase showed imports of stat-copolymers of propylene (PP-random).

Deliveries of stat-copolymers of propylene (PP-random) increased in April by 39% due to the growth in demand from producers of BOPP films and pressure pipes made of polypropylene. Demand for injection mouilding copolymers of propylene in April rose by 14%.

In general, over four months of this year, the total imports of PP to Russia made 83,000 tonnes, up 11% year-on-year.
Imports of homopolymer PP decreased by 11% to 37,700 tonnes, imports of copolymers of propylene increased by 41% to 45,200 tonnes.


MRC

MOSCOW (MRC) -- In April, imports of PET to the Russian domestic market rose by 67.5% from March, according to MRC DataScope.

Thus, last month import volumes of PET to Russia grew by 9,900 tonnes to 24,600 tonnes, which is the highest index in the current year. In comparison with the same period last year, import volumes increased by 12.5%.

Granulate in the total PET imports accounts for 23,800 tonnes. Imports of recycled PET-flex was more than 800 tonnes.

Shipments of Chinese PET granulate increased more than two-fold. Overall in April, Russia imported about 13,000 tonnes of Chinese PET, whereas in March this index made about 6,300 tonnes.

Supply of Lithuanian PET accounts for the record volumes over the past two years. Overall last month, about 2,000 tonnes of bottle PET (Neopet brand) arrived from Lithuania.

In January-April, the total import volumes of PET to Russia amounted to 64,500 tonnes. Over the first four months last year this index made 63,500 tonnes.

MRC