New industry initiative of chemical majors aims to enhance transparency and drive improvements

MOSCOW (MRC) -- In order to enhance sustainability within the supply chain the chemical companies BASF, Bayer, Evonik Industries, Henkel, LANXESS and Solvay joined forces in the Together for Sustainability (TfS) initiative, reported Solvay in its press-release.

The TfS initiative has successfully concluded its first year of piloting sustainability assessments and audits in global supply chains.

TfS aims at developing and implementing a global supplier engagement program that assesses and improves sustainability sourcing practices, including ecological and social aspects. Participating suppliers will now only have to complete one form instead of multiple questionnaires with the relevant sustainability information provided to all participating buyers who would otherwise need separate sustainability assessment or audits from these suppliers.

During the initiative’s pilot phase, TfS members have initiated about 2,000 assessments and audits. In the next phase of implementation, which draws on the learnings from the successful pilot phase, TfS will increase its activities to further procurement markets and will look to continue growing by onboarding new members.

We remind that, as MRC wrote previously, Brazilian petrochemical company Braskem is participating in the bidding to acquire the polyvinyl chloride (PVC) assets of Belgium's Solvay in South America. Braskem said the negotiations had not yet concluded and it could not say when they would be completed. Solvay Indupa operates two industrial sites, one in Bahia Blanca, Argentina, and the other in Santo Andre, in Brazil's Sao Paulo state, that produce PVC plastic and caustic soda. Mexico's Mexichem and Braskem have been seen as the most likely suitors of the assets since Solvay announced its decision to sell them in February this year.

Solvay, with a market share 27%, is the second largest PVC manufacturer in Europe, after Kerling with 29% of the market.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.

Evonik Industries is an industrial corporation in Germany and one of the world's leading specialty chemicals companies. Company's specialty chemicals activities focus on high-growth megatrends, especially, health, nutrition, resource efficiency, and globalization, and on entering attractive future-oriented markets.

Lanxess is a leading specialty chemicals company with sales of EUR9.1 billion in 2012 and roughly 17,400 employees in 31 countries. The company is currently represented at 50 production sites worldwide. The core business of Lanxess is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals.

Henkel AG & Co. is a manufacturing company making various chemical products including detergents and adhesives, with brands and technologies for consumer and industrial businesses, headquartered in Dusseldorf.

Bayer AG is a German chemical and pharmaceutical company founded in Barmen, Germany in 1863. It is headquartered in Leverkusen, North Rhine-Westphalia, Germany and well known for its original brand of aspirin.
MRC

MOSCOW (MRC) -- Imports of polyethylene terephthalate (PET) to Ukraine grew by 13.5% in January-September 2013. Supplies increased from China and Lithuania and dropped from South Korea, Pakistan, Belarus and the UAE, according to MRC DataScope.

The overall imports of PET chips to the Ukrainian domestic market totalled about 142,000 tonnes in January-September. Chinese grades accounted for 68% of the total imports (the share of Chinese grades was 48% in 2012). Overall, supplies from China grew by 60% in the first nine months of 2013 year on year and totalled 96,800 tonnes.

Imports of Lithuanian PET produced by Neo Group and Orion Global increased by 14% over the stated period to around 18,000 tonnes.

Producers from Pakistan, South Korea, the United Arab Emirates and Belarus have been losing their market shares rapidly. PET imports from these countries to Ukraine dropped by 93%, 60% , 78% and 61%, respectively, in January-September, 2013.

New grades of Indian PET (Arya AP0080 produced by "JBF RAK" and Aspet 20C produced by "South Asian Petrochem") also have entered the market this year. Their total imports exceeded 11,000 tonnes in the nine months of 2013.

In general, September turned out to be very difficult for the Ukrainian bottle PET converters. Cold rainy weather contributed to a fall in major producers and water bottlers' consumption of PET preforms. Purchases of chips in foreign markets have been cut amid rising stocks, so a slump in imports might be expected in October.

MRC

MOSCOW (MRC) -- October prices for Chinese expandable polystyrene (EPS) grew by Tenge 4,000-5,000/tonne in the domestic Kazakh market following rising purchase prices in September and increased rail fares, according to ICIS-MRC Price report.

Prices for Chinese EPS were heard in the range of Tenge 412,000-418,000/tonne CPT Astana, including VAT, this week. Traders were forced to raise their prices because of increased procurement costs. At the same time, demand fell slightly in the first half of October, nevertheless, it remained rather strong, a source said.

Russian EPS grades were also available in the market. Prices for Russian EPS of Alphapor grade were heard in the range of Tenge 392,000-397,000/tonne CPT Astana, including VAT.

Summing up last month's results, traders noted that September EPS sales were high. All sales plans were fulfilled. Sellers also said that sales would be entirely dependent on the activity in the construction market in the coming months. According to traders' estimates, strong demand for EPS will last till December.
MRC

MOSCOW (MRC) - Imports of suspension polyvinyl chloride (SPVC) to Ukraine increased by 71% in January - September 2013 on the back of long time outage of Karpatneftekhim (LUKOIL group ), according to MRC DataScope.

SPVC imports to Ukraine reached its record 180,200 tonnes in September. Overall, Ukraine's imports of SPVC totalled about 108,000 tonnes in the first nine months of this year.

Unscheduled shutdown of Ukrainian producer - Karpatneftehim made Ukrainian companies buy actively resin in foreign markets, particularly in US. Imports of US SPVC to Ukraine for the first nine months of this year rose to 56,600 tonnes (in September, imports from US amounted to 12,500 tonnes) against 19,400 tonnes in the same period of 2012.

External supply of PVC from Europe in January - September to Ukraine totalled about 49,700 tonnes from 42,100 tonnes in the same period of 2012. PVC imports are expected to be reduced in November - December under the pressure of the seasonal factor (in winter demand for finished products made of PVC is weak), and due to the resumption of the Karpatneftehim.


Karpatneftekhim (LUKOIL group ) announced plans to restart its PVC production on 1 November. Its monthly capacity utilisation will not exceed 10,000 tonnes. Karpatneftehim is going to deliver all the produced PVC only to the domestic market, part of which will be used for the production of the window profile (used for the production of plastic windows).


MRC

MOSCOW (MRC) -- Eastman Chemical is expanding capacity of its Eastman 168 non-phthalate plasticizers at its manufacturing facility in Texas City, Texas, USA, according to the company's press release.

The expansion at the site will increase the overall capacity of Eastman 168 by approximately 15% and is expected to be operational by mid-2014.

"We are pleased to announce this capacity addition at our Texas City manufacturing facility," said Jon Woods, unit director for Eastman's plasticizers business. "Since this expansion leverages an existing asset, it will be completed with minimal capital investment and also positions us to execute another similar expansion on the same line in the near future.

"These planned capacity additions are consistent with our expectations of market growth envisioned when we acquired the Texas City facility in 2011," he added. "Demand for non-phthalate plasticizers continues to strengthen across a variety of end-markets and end-uses and this investment will allow Eastman to sustain its leadership position of serving the needs of current and new customers, particularly in North America and Europe."

Non-phthalate plasticizers are broadly used in products such as toys, childcare items, food contact materials and medical devices, and are also used to provide flexibility to PVC in a wide variety of applications.

End markets for non-phthalate plasticizers include building and construction, health and wellness, and a broad range of consumer products.

As MRC informed previously, Eastman Chemical Company has increased prices on Eastman 168 non-phtalate grade, DOP and other products in North America starting from 1 September.

Eastman (headquartered in Kingsport, Tennessee, USA) is a global specialty chemical company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. Its market-driven approaches take advantage of world-class technology platforms and leading positions in attractive end-markets such as transportation, building and construction, and consumables.
MRC