Spolana restarted SPVC and caprolactam plants after flooding

MOSCOW (MRC) -- Spolana, one of the biggest Czech chemical companies, has announced the successful start of suspension polyvinyl chloride (SPVC) and caprolactam production according to the previuously stated schedule, as per the company's statement.

With regards to previous notice of force majeure, announced due to the heavy floods in the Czech Republic in June 2013, Spolana has informed its business partners of the planned schedule for restarting of the production units:

- SPVC production unit - 13.08.2013;
- Caprolactam production unit - 15.08.2013.

Company has noted that production start-up after extensive force majeure is a complex business undertaking and requires to be conducted in compliance with all the applicable procedures and measures.

Spolana is one of the biggest chemical companies within Czech industrial landscape. It came into existence on May 1, 1992 by transformation of state-owned entity. Company headquarters is based in Neratovice. Since the end of 2001 till September 2006 Spolana was a subsidiary of UNIPETROL holding which in May 2005 became part of Polish PKN ORLEN holding company. In September 2006 UNIPETROL sold its stake in Spolana to Polish company Zaklady Azotowe ANWIL SA, another subsidiary of PKN ORLEN holding company.
MRC

MOSCOW (MRC) -- A major price rise of linear low density polyethylene (LLDPE) in Europe led to a proportional price increase in the Russian market. Offers for butene LLDPE had exceeded Rb70,000/tonne by mid-August, according to ICIS-MRC Price report.

European producers have raised their export prices for August by an average of EUR75/tonne from July on the back of LLDPE shortage in Europe and higher contract prices of ethylene. Strengthening of the euro exhange rate against the ruble only aggrivated the situation in the Russian market. The price dispersion of butene LLDPE is big enough in the market because of the carryovers from last month, however, some offers exceeded Rb70,000/tonne CPT Moscow, including VAT.

Traders' stocks and converters' reluctance to buy expensive feedstock have kept LLDPE prices down in the Russian market. However, this situation is unlikely to last long.

Last week's deals for butene LLDPE with MFI = 1 (melt flow index) were still concluded in the range of Rb64,000-68,000/ton CPT Moscow, including VAT, but already this week offers went up to Rb70,000/tonne.

The similar situation is in the butene LLDPE with MFR = 3 market. A week earlier, deals LLDPE were in the range of Rb65,000-68,000/tonne CPT Moscow, including VAT. Prices has grown to Rb68,000-72,000/tonne by this week.
MRC

MOSCOW (MRC) -- July imports of polystyrene (PS) to Ukraine rose by 25% from June on stronger seasonal demand and expectations of higher purchase prices, according to MRC DataScope.

July PS imports to the country increased by 1,400 tonnes and totalled 7,300 tonnes. Russian grades of expandable polystyrene (EPS) accounted for the bult of imports to the Ukrainian market. The total import of EPS to Ukraine last month amounted to 2,700 tonnes.

General purpose polystyrene (GPPS) accounted for the largest increase in supplies. July GPPS mports rose by 65% to 1,700 tonnes.
Exports of Ukrainian grades increased this year. Over the first seven months of 2013, export shipments of Ukrainian PS increased by 7% year on year. Thus, over 5,000 tonnes of polystyrene were shipped to foreign markets in January-July. Traditionally, Ukrainian GPPS grades accounted for the largest share of shipments. The share of GPPS in the structure of total exports accounted for 66% (3,300 tonnes).

MRC

MOSCOW (MRC) - Following record high in June imports of suspension polyvinyl chloride (SPVC) to Ukraine dropped by 12% in July 2013 compared with previous month on the back of reduction of US PVC supply, according to MRC DataScope.

July imports SPVC to Ukraine declined to 11,750 tonnes, following the peak in June of 13,400 tonnes. Though the supply of European resin grew, it did not offset a serious reduction in the purchases of US SPVC.

Imports of North American PVC in July decreased by 37% compared with June's level to 4,800 tonnes. Such a serious reduction in the supply of US suspension resulted from the stronger prices of US resin in May amid lower prices from European producers.

A lot of Ukrainian companies also limited their purchases of US resin in June - July this year, anticipating the resumption of PVC production at the facilities of Karpatneftehim (LUKOIL group) and the introduction of anti-dumping duty.

Supplies of the European PVC to the Ukrainian market in July grew by 20% compared with June and totalled about 6,900 tonnes.

The limited imports of Hungarian suspension was fully offset by an increase in the supply of Polish resin.

The imports of SPVC to Ukraine exceeded 73,000 tonnes in the first seven months of this year, from 44,000 tonnes year on year.


MRC

MOSCOW (MRC) -- Formosa Plastics Corp (FPC) is in plans to shut a polyvinyl chloride (PVC) plant for maintenance turnaround, according to Apic-Online.

A Polymerupdate source in Taiwan informed that the plant is likely to be shut in September 2013. The plant is expected to remain off-stream for around two weeks.

Located in Mailiao, Taiwan, the plant has a production capacity of around 500,000 mt/year.

As MRC informed previously, Formosa Petrochemical is in plans to shut two crude units for maintenance at its Mailiao refinery. A source in Taiwan informed that an 80,000 bpd vacuum distillation unit (VDU) and 84,000 bpd residual fluid catalytic cracking unit (RFCC) are planned to be taken off-stream. The units are likely to be shut in October 2013. They are expected to remain off-stream for around three weeks.

Formosa Plastics Corporation is a Taiwanese company based in Taiwan that primarily produces polyvinyl chloride (PVC) resins and other intermediate plastic products.
MRC