Production of rubber and plastic goods in Belarus increased by 11%

MOSCOW (MRC) - In January - April of this year, production of rubber and plastic goods in Belarus increased by 11.4%. The production of plastic windows and window sills showed the largest increase, according to MRC DataScope.

Belarusian producers of rubber and plastics have demonstrated a positive trend in the production of finished products this year. Over the four months of this year production of all key products increased, the only exception made the production of plastic doors.

The largest increase in the output was unexpectedly recorded in the production of plastic windows and window sills.
According to the National Statistical Committee of the Republic of Belarus, April production of plastic windows and window sills increased to 38,500 square meters, up 16% from April 2012.

During the first four months of this year, the total output of these products in the Republic amounted to 136,500 square meters, up 29% year on year. Production of pipes, hoses and fittings made from polymers in the Republic of Belarus last month totalled 1,340 tonnes.

In January - April of this year, this figure has reached 4,000 tonnes, up 22% compared to the same period in 2012.
April production of boxes, crates, trays of plastic reached 64.1 million units, up 19% compared with the same period a year ago. In January - April of this year the total production of these products from polymers made ??231.1 mln., which is 15% more than in 2012.

Production of pneumatic tires for trucks and buses in April 2013 increased by 14% compared to April 2012 and reached 163,500 pcs. Over the first four months of output of pneumatic tires grew by 6% to about 573,100 pcs.
Release of polymer non-reinforced and combined films rose in April by 7.4% compared to the same period last year and amounted to about 8,000 tonnes.

In January - April of this year the total production of the films made 30,000 tonnes, which is 5% more than in January - April 2012.

Negative growth in the first four months was recorded in the manufacturing of plastic doors. The April production of plastic doors totalled 2,600 square meters, down 11% from April 2012. Over the four months in 2013 the total production of these products amounted to 10,100 square meters, which is 22% less than last year.
MRC

MOSCOW (MRC) -- MRC news digest over the past week.

1. April SPVC imports to Russia decreased by 8%.

Russia's imports of suspension polyvinylchloride (SPVC) in April 2013 decreased by 8% from March to about 53,600 tonnes. The main decrease in the supplies occured on US resin. Despite the low seasonal demand for SPVC in the beginning of the year, its imports in March hit a record of 58,000 tonnes. But in April SPVC imports were reduced by 8% compared with the March to 53,600. The imports from China was still at a high level, while the deliveries of US SPVC declined significantly because of the increase in export prices of SPVC in February - March. Thus, in April 2013, imports of SPVC from US amounted to 19,000 tonnes, down 25% from March. The SPVC deliveries were cut from all North American producers, the only exception made OxyVinyls's resin. Import of Chinese acetylene PVC in April, on the contrary, increased slightly and reached 28,800 tonnes, while in March it was 28,200 tonnes. The supplies of SPVC from Xinjiang Zhongtai in April rose to 20,600 tonnes (from 11,700 tonnes in March), while imports of resin from Xinjiang Tianye fell from 16,500 tonnes in March to 8,200 tonnes in April.

2. Ufaorgsintez shut polypropylene production.

Ufaorgsintez (part of "Bashneft"), one of the largest Russian petrochemical companies, has stopped production of polypropylene (PP) for maintenance. On Sunday, 12 May, the company shut its PP production for a scheduled turnaround. The outage is going to last two weeks. The annual PP capacity of the plant is 100,000 tonnes. As reported, at night, on 26 April, Ufaorgsintez stopped the production of high-density polyethylene (LDPE) and polypropylene. Maintenance work lasted for 2 days. A planned shutdown of the plant's LDPE production is scheduled for September 2013.

3. European producers reduced PVC prices by EUR40-50/tonne for CIS markets.

In May, European makers reduced their export polyvinyl chloride (PVC) prices for the CIS countries by EUR40-50/tonne following a major drop in the contract ethylene price. The contract ethylene price in Europe for May shipments has been agreed by EUR100/tonne lower than April's level. A significant fall in ethylene prices and decline in export prices in the US made European producers reduce proportionally their export PVC prices in May for the CIS markets. Deals for May shipments of suspension PVC from Europe to the CIS countries are being agreed in the range of EUR700-760/tonne, FCA, which is on average by EUR40-50/tonne lower from April. Some market participants report that they were able to achieve lower prices than EUR700/tonne, FCA, for May shipments. European producers are trying to limit their sales at such low prices in May, expecting a price increase in June amid rising oil quotations.

4. Price trend of US PVC changed its direction.

US export prices of polyvinylchloride (PVC) for the Russian market increased to USD1,000/tonne. Low demand in foreign markets and increased supplies of the resin from North America resulted in the rollback of export prices in March and April. But in May, the suppliers of North American PVC have announced price increases by USD30/tonne, from April, despite the expectations of many market participants of further price reductions. Over the last six months, the peak of the export prices of US PVC was in February with the offers for March shipment reaching USD1,100/tonne CFR St Petersburg. Offers for US resin for the second half of April - early May for the Russian market were heard at USD950-970/tonne CFR St Petersburg. Many Russian companies have limited the purchases of the North American PVC, waiting for the prices to be cut by USD30/tonne from April level. This week offers for North American PVC for the Russian market have been heard in the range of USD980-1000/tonne CFR St Petersburg.

5. MEG and PTA prices rose in Asia.

Spot prices of monoethylene glycol (MEG) and terephthalic acid (PTA) have grown in the Asian region on good buying activity from producers of polyethylene terephthalate (PET). Main feedstock for the production of PET granulate have reached USD1,050-1,054/tonne, CFR China. MEG prices also showed an upward trend. Thus, over the past week MEG prices at the Chinese port rose by USD18-20/tonne and amounted to USD997-1,006/tonne, CFR China. PET producers' good sales and, as a consequence, a stable high demand for raw materials from plants have boosted feedstock prices. However, according to ICIS-MRC Price report, prices of Russian MEG fell last week. The price range of the Russian feedstock was heard at Rb47,5-50,0/tonne, FCA, including VAT.

6. April import of LLDPE to Russia decreased by 8%.

Imports of linear polyethylene (LLDPE) to Russia in April decreased by 8% to about 18,000 tonnes. Earlier this year, Russian companies were actively buying linear polyethylene (LLDPE) from foreign companies because of the absence of the domestic production. In March, the imports of LLDPE reached about 20,000 tonnes. But in April, Russian companies reduced their purchases because of low demand for the material. Imports of film LLDPE in April made 15,700 tonnes (from 17,500 tonnes in March). According to MRC analysts, the producers of stretch films cut their purchases most of all. Low demand for stretch film in the domestic market and the residues from the previous purchases made Russian producers in April reduce the imports of linear polyethylene. In other sectors of consumption (rotator forming, extrusion coating, injection moulding, etc.) the imports of LLDPE in April actually stayed at the March level. In General, over the first three months of the year, the total imports of LLDPE to Russia made 68,5000 tonnes, up 45% year-on-year.

7. April imports of PP in Russia remained at the level of March.

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. 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. In general, over four months of this year, the total imports of PP to Russia made 83,000 tonnes, up 11% year-on-year.

8. PET imports to Russia grew by 67.5% in April.

In April, imports of PET to the Russian domestic market rose by 67.5% from March. 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.

9. HDPE import to Russia dropped by 12% in April.

After the March surge, imports of high-density polyethylene (HDPE) to the Russian market began to decline. In April, the total import volumes decreased by 12% from March to 27,000 tonnes. Sufficient supply from Russian producers and low demand for finished products made Russian companies reduce HDPE imports in April. HDPE for extrusion coating for steel pipes of large diameter and for products produced by blow moulding accounted for the largest decrease in supply. The reduction was 25% and 27%, respectively, which equalls 4,700 and 3,500 tonnes. Last month, imports of HDPE for the production of pipes made 7,500 tonnes, down 15% from March. The decline in imports was due to low demand for finished products, sufficient supply of Russian polyethylene and large stocks from the previous months. In April, import of injection moulding HDPE fell by 15% to 4,500 tonnes. Shipments of film HDPE were reduced by only 1% to 5,500 tonnes. Overall, in January-April 2013, HDPE imports to Russia amounted to 107,000 tonnes, down 2% year-on-year. Over the first four months of the year, the reduction of imports were registered for HDPE for the production of films (45%) and cable insulation (12%). In other sectors of consumption, conversely, imports increased.
MRC

MOSCOW (MRC) -- INVISTA, a world leader in nylon intermediates, polymers and fibers, has signed a Land Reservation Agreement with the Shanghai Chemical Industry Park Development Company for a nylon 6,6 polymer site at the Shanghai Chemical Industry Park (SCIP), said Plastemart.

The agreement is for additional land adjacent to INVISTA’s planned hexamethylene diamine (HMD) and adiponitrile (ADN) plants and marks INVISTA’s next step as it continues to make progress on plans for an integrated nylon 6,6 polymer facility in China.

"It is our intent to build a world-scale polymer facility in a timeframe that would align with our HMD project," said Warren Primeaux, president of INVISTA Intermediates. "We believe China's continued strong GDP growth will drive increasing demand for durable goods—products that can be enhanced by the use of nylon 6,6." VISTA's nylon 6,6 products are used in fiber applications such as apparel and industrial textiles, as well as in engineering polymer applications in automotive electrical, industrial and consumer markets. Known for its strength at high temperature as well as impact, chemical and abrasion resistance, nylon 6,6 offers significant advantages in many applications over other materials that have been traditionally used in China.

INVISTA has taken a keen focus on China as one of the most important places for growing its proprietary nylon technology. The company's plan for an integrated asset exceeds USD1 billion, the largest capital investment undertaken by INVISTA to date. Earlier this year, INVISTA announced it had received Environmental Impact Assessment approval from the Shanghai Protection Bureau for a 215,000 tpa HMD plant at SCIP. INVISTA’s Project Approval Request and Wholly Foreign-Owned Enterprise status from the Chinese authorities were also recently approved for the project. These three items are significant milestones toward having the HMD plant operational by mid-2015.

We remind that, as MRC reported previously, Invista Performance Technologies had acquired from La Seda de Barcelona SA intellectual property relating to its leading purified terephthalic acid (PTA), polyethylene terephthalate (PET) and related process technologies, including the full rights to exclusively license the technologies in the region comprising Europe, the Middle East and Africa.
MRC

MOSCOW (MRC) -- UOP LLC, a Honeywell company, has been selected to provide technology for the world's largest on-purpose propylene production facility, located on the U.S. Gulf Coast, said Plastemart.

Ascend Performance Materials Operations LLC will use Honeywell's UOP C(3) Oleflex process technology to convert propane to propylene, a key ingredient in the production of materials such as nylon, films and packaging. Petrochemical makers are installing additional propylene capacity to meet growing demand and to make up for the shortage of propylene production from traditional refining and petrochemical sources.

The Ascend project is the 14(th) Oleflex project Honeywell's UOP has announced since the beginning of 2011, and the company's seventh Oleflex project in North America since the technology was developed. The combined Oleflex projects announced since 2011 will help increase propylene production by nearly 7 million metric tons globally in the next three years.

"Global propylene demand is growing at about 4-5% per year. The U.S. is seeing an increase in on-purpose propylene production because of the abundance of low-cost propane from shale gas," said Pete Piotrowski, senior vice president and general manager of Honeywell's UOP Process Technology and Equipment business unit.

"Compared with competing propane dehydrogenation processes, UOP Oleflex technology provides the lowest cash cost of production, the highest return on investment and the smallest environmental footprint." Ascend will install the Oleflex technology at a facility on the U.S. Gulf Coast to produce more than 1 million metric tons of propylene per year beginning in 2015. In addition to technology licensing, Honeywell's UOP will supply engineering design, catalysts, adsorbents and selected equipment for the project.

Ascend is a global leader in proprietary technologies that are essential to the production of nylon, plastics and synthetic fibers found in commercial and industrial products. Ascend has offices throughout the world and five manufacturing facilities in the U.S. Honeywell's UOP C(3) Oleflex process is a propane dehydrogenation (PDH) process to convert propane to propylene. The majority of the operating and licensed PDH units in the world utilize the Oleflex process.

As MRC wrote earlier, OOO Kirishinefteorgsintez selected Honeywell to supply its experion process knowledge system (PKS) and advanced alarm manager system at the company"s refinery in Kirishi, in the Leningrad region of Russia.
MRC

MOSCOW (MRC) -- Argentina's largest oil and gas producer, state-run YPF SA, and Chevron Corp. have moved closer to finalizing an agreement that would see the U.S. energy company invest USD1.5 billion to develop shale oil deposits in the South American country, according to The Wall Street Journal.

Chevron's pledge to invest in Argentine shale oil with YPF was first announced last December. For YPF, it marked the first tangible sign that a major foreign oil company was willing to put big money in Argentina less than nine months after President Cristina Kirchner expropriated a 51% stake in YPF from Spain's Repsol SA.

But the deal soon ran afoul of Chevron's decades-old legal dispute over pollution in Ecuador. Ecuadorian courts have ordered Chevron to pay USD19 billion, and last year an Argentine judge slapped an embargo for that amount on Chevron's assets and income in Argentina at the behest of Ecuadorian plaintiffs in the case.

After five months of talks, YPF's Chief Executive Miguel Galuccio and Ali Moshiri, Chevron's president of its Latin America and African operations, signed an accord outlining the as yet undisclosed commercial terms and conditions of their partnership, YPF said in a statement.

YPF expects the final agreement to be signed this July.

Chevron is expected to invest USD1.5 billion in a pilot program aimed at developing shale oil deposits in the famed Vaca Muerta formation in Neuquen Province, YPF said.

The complete development of the first cluster of shale oil wells subject to the agreement will require investments of more than USD15 billion, YPF said.

Argentina ranks third in the world, behind China and the US, in potentially recoverable shale-gas reserves, with 774 trillion cubic feet, according to a study by the US Energy Information Administration. Argentina is also thought to be home to vast quantities of shale oil.

We remind that, as MRC wrote previously, since March this year, Chevron has been in talks with potential buyers for Canada's first exports of liquefied natural gas, paving the way for a USD15 billion project that would open up a new route for North American gas to Asia.

Chevron Corporation is an American multinational energy corporation headquartered in San Ramon, California, United States, and active in more than 180 countries. It is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining, marketing and transport; chemicals manufacturing and sales; and power generation. Chevron is one of the world's six "supermajor" oil companies.
MRC