EPCL seeks permission for nil rates to import ethylene

(Plastemart) -- Pakistan's Engro Polymer and Chemicals Limited (EPCL) is seeking permission to import ethylene at zero rate for production of Vinyl Chloride Monomer (VCM), Ethylene Dichloride (EDC). EPCL has recently undergone expansion/back integration at an investment outlay of US$260 mln, as per Business Recorder.

EPCL manufactures Polyvinyl Chloride (PVC), VCM, EDC, Caustic Soda and Sodium Hypochlorite. The company's major stakeholders are Engro Corporation Ltd, Mitsubishi Corp. and International Finance Corporation.

MRC

(Platts) -- Iran's Mehr Petrochemical may start producing grades other than film-grade high density polyethylene at its plant due to a shortage of butane-1 feedstock, a source close to the company said Wednesday.

Mehr Petrochemical has a 300,000 mt/year HDPE plant at Assaluyeh. There are three major grades in HDPE -- HDPE film, HDPE injection and HDPE blow molding. The source explained Mehr was considering switching to HDPE injection or blow molding production as they consume less butane-1.

Mehr Petrochemical is a joint venture by National Petrochemical Co. (39%), Singapore Petrochemical Investment Ettehad Co. (58%) and other companies (3%).

MRC

(Platts) -- US propylene contracts were expected to fall in November, tracing lower spot values, sources told Platts this week. Participants anticipated that November contract prices could fall by as much as 3-4 cents/lb, given the delta between spot and contract.

October spot PGP was last heard offered this week at 55.25 cents/lb MtB pipe. Buyers were absent though. Sources pegged spot at 55 cents/lb or lower. With October contracts settling 1.5 cents lower at 58.50 cents/lb, the gulf between the CP and spot was 3.50 cents/lb.

Lower spot was attributed to pending supply improvements as supplier Petrologistics was expected to start up its new 500 kt/year propane dehydrogentation unit at Houston, Texas. The start up has been delayed several times, and the company was heard to be aiming for a start up by the end of this week. The plants output is expected to be 70% CGP and 30% PGP, a company source said.

MRC

LDPE imports slightly reduced to 9,8KT (-5%) compared to August. In September, Kazanorgsintez halted LDPE production for scheduled maintenance, but these measures did not have any serious impact on overall imports. Ukrainian companies switched to PE supplies from Tomsk, and imports of that material exceeded 2,8 KT in September.

LLDPE imports to Ukraine went down by 38%, and moved at 3,4 KT. The main decrease in supplies referred to Hyundai Petrochemicals' material, whose volumes reduced from 2,1 KT in August to 0,56 KT in September.


For more detailed information on the Ukrainian polyethlyne market, see DataScope Report.

MRC

(Platts) -- China's Zhejiang Shaoxing Sanyuan Petrochemical plans to start up its new polypropylene line at its plant at Shaoxing, in Zhejiang province, at the end of this year, a company source said Thursday.

Sanyuan currently owns a 240,000 mt/year PP plant at Shaoxing and the new line, which has a production capacity of 300,000 mt/year, would boost its total capacity to 540,000 mt/year.

The new line will produce mainly film grade PP, under the serial codes F280 and 730S, the source added. Sanyuan has yet to fix a date for the startup in December, as it is also dependent on market conditions, the source added.

The company imports all of its propylene feedstock requirements from the spot market, the source said. The company purchases a 1,500 mt propylene spot parcel once every two days, but after the new line is brought on stream, Sanyuan would need to buy a spot cargo every day.

MRC