BASF to increase prices for butanediol and derivatives

MOSCOW (MRC) -- BASF will increase its selling prices for butanediol and derivatives in Europe, according to the company's press release.

Prices for the following products will be increased with immediate effect, or as existing contracts permit: 1,4 butanediol (BDO) - by EUR50/tonne, tetrahydrofuran (THF) - by EUR70/tonne, polytetramethylene ether glycol (PolyTHF) - by EUR70/tonne.

The price adjustments reflect mainly the increase of raw material cost.

BDO and its derivatives are used for producing engineering plastics, polyurethanes, solvents and elastic spandex fibers.

THF is a high-quality intermediate that serves, for example, as a specialty solvent in the production of pharmaceuticals.

PolyTHF is used to make elastic spandex fibers for a large variety of textiles, including underwear, outerwear, sportswear and swimsuits. It also serves as a chemical building block for thermoplastic polyurethanes (TPU), which are used to make hoses, films and cable sheathing. Other applications include thermoplastic polyetheresters, polyetheramides and cast elastomers for the production of wheels for skateboards and inline skates.

As MRC wrote previously, in late November, 2013, BASF produced its first commercial volumes of 1,4-butanediol (BDO) from renewable raw material, and is offering this product to customers for testing and commercial use.

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. As for BDO and BDO-equivalents, BASF currently manufactures these products at its sites in Ludwigshafen, Germany; Geismar, Louisiana; Chiba, Japan; Kuantan, Malaysia; and Caojing, China, and has an annual capacity of 535,000 tonnes.
MRC

MOSCOW (MRC) -- Nizhnekamskneftehim, Russia's largest polystyrene (PS) producers, has maintained its November contract prices for December shipments, according to ICIS-MRC Price report.

The company's representatives said prices of general purpose polystyrene (GPPS) and high impact polystyrene (HIPS) for the Russian domestic market were left at November's level. At the same time, demand fell significantly in the GPPS market in November, while buying activity in the HIPS market remained high.

According to MRC analysts' estimates, Gazprom neftekhim Salavat's prices will also remain unchanged in December. The plant will follow the policy of the main market monopolist - Nizhnekamskneftekhim and will not reduce prices, despite weaker demand.

New contract prices for styrene monomer were also announced this week (2 December). December contract prices for styrene monomer in Europe rose by EUR10/tonne from November and were announced at EUR1,375/tonne FOB ARA (Rotterdam - Amsterdam - Antwerp).
MRC

MOSCOW (MRC) -- Growth in consumer activity amid tight supplies from Russian producers led to a shortage of film high density polyethylene (HDPE) in earlly December, according to ICIS-MRC Price report.

Buying activity in the local film HDPE market significantly increased in early December. Converters started actively forming additional inventories in anticipation of long New Year holidays. At the same time, some companies reported tight supply of polyethylene (PE) in the market.

The lack of film HDPE in the Russian market was caused by temporary reductions in supplies from Russian producers, namely, from Kazanorgsintez (its production was reduced in favor of blow moulding HDPE) and Nizhnekamskneftekhim (it had produced linear low density polyethylene (LLDPE) until mid-November and has begun producing a new extrusion grade since then).

The price spread in the Russian film HDPE market was wide enough on Monday, 2 December. Offer prices for Gazprom neftekhim Salavat's PE started from Rb61,500/tonne CPT Moscow, including VAT (low prices are explained by the novelty of this PE in the market). Offers for Stavrolen's PE started from an average level of Rb63,500/tonne FCA, including VAT. Offers for Kazanorgsintez's film HDPE were heard at an average of Rb65,000/tonne FCA Kazan, including VAT.

Some traders have temporarily suspended PE sales because of its obligations to the regular customers.

Tight supply of film PE in the Russian market will continue until next week. Kazanorgsintez will have raised its capacity utilisation and Nizhnekamskneftekhim will have resumed production (first shipments are expected on 12 December) by this time. In the meantime, prices might grow slightly.
MRC

MOSCOW (MRC) -- Grace has completed the acquisition of the assets of the Polypropylene Licensing and Catalysts business of The Dow Chemical Company for a cash purchase price of USD500 mln, said Plastemart.

The acquisition includes UNIPOL Polypropylene Process Technology and makes Grace the second largest polypropylene licensor in the world based on installed capacity, advancing Grace's leadership in the broader polyolefin sector.

Grace is a leading global supplier of catalysts; engineered and packaging materials; and, specialty construction chemicals and building materials. Grace will continue to support the UNIPOL Polypropylene Process Technology, which includes the UNIPOL UNIPPAC Process Control System, a recognized leader in the industry. The UNIPOL tailored SHAC Catalysts Systems, 6(th) Generation non-phthalate CONSISTA Catalysts Systems, and advanced donor systems, ADT and CONSISTA, enhance Grace's polyolefin catalysts portfolio. These products complement Grace's polypropylene catalysts families of POLYTRAK, and HYAMPP and its polyethylene catalyst systems such as Cr-based catalysts (MAGNAPORE), Ziegler-Natta Catalysts, and Single Site Catalysts.

"The UNIPOL brand and the capabilities it represents are highly respected in the marketplace, and we are committed to strengthening that position," said Grace Chairman and Chief Executive Officer Fred Festa. "We look forward to communicating our expanded capabilities and full portfolio of products and services to our customers and the broader global marketplace. We're pleased to welcome a very talented team to Grace."

In mid October 2013 Dow Chemical Company announced that it has signed a definitive agreement under which Dow’s global Polypropylene Licensing & Catalysts business will be divested to W. R. Grace & Co. for a sale price of USD500 million.

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) -- Shell could sign an exploration deal with Bosnia-Herzegovina’s autonomous Muslim-Croat Federation before the end of next year, said Upstreamonline.

The Anglo-Dutch supermajor is to begin talks on a potential concession with government officials in late February, the federation’s energy minister Erdal Trhulj told Reuters.

"Bearing in mind the extent of the possible deal, we would be able to sign a contract awarding the concession to Shell at the end of 2014," Trhulj said. "This is an enormous endeavour that has never before been conducted in Bosnia."

The investment is set to range between USD300 million and USD700 million depending on the number of drilling sites, he said.

Experts say that southern deposits, located at a depth of between 4000 metres and 8,000 metres, could contain up to around 3.5 billion barrels of oil reserves, while northern beds are estimated at around 490 million barrels.

The Serb Republic in 2011 awarded a concession for exploring potential oilfields to Jadran Naftagas, a joint venture between Russia's Neftegazinkor, a unit of state-owned Zarubezhneft, and Serbian oil firm NIS, majority-owned by Russia's Gazprom Neft.

The company started drilling last June as part of a USD41 million investment in the first exploration phase, but has so far reported no significant findings.

MRC