Ineos ChlorVinyls increases SPVC prices for February

MOSCOW (MRC) -- Ineos ChlorVinyls has announced a price increase for suspension polyvinyl chloride (SPVC) effective from 1 February 2014, reported the Switzerland-based producer on its site.

Prices of pipe grade suspension PVC delivered in bulk in Europe were raised to EUR1,195/tonne, while prices of pipe grade SPVC delivered in bulk in UK/Ireland rose to GBP1,065/tonne.

As MRC informed previously, Ineos already increased its SPVC prices in December, 2013, as follows: prices of pipe grade SPVC delivered in bulk in Europe was at EUR1,145/tonne; for pipe grade SPVC delivered in bulk in UK/Ireland - GBR1,025/tonne.

Last year, Ineos and Solvay agreed to merge their chlorvinyls activities into a EUR 4.3 billion (USD5.6 billion) 50-50 joint venture. The combination would form a polyvinyl chloride (PVC) producer that will rank among the top three worldwide. The combined business would have around 5650 employees across nine countries and would pool each company's assets across the entire chlorvinyls chain. This includes PVC, which is the third most-used plastic in the world, caustic soda and chlorine derivatives.

Ineos ChlorVinyls is one of the major chlor-alkali producers in Europe, a global leader in chlorine derivatives and Europe's largest PVC manufacturer.
MRC

MOSCOW (MRC) -- Ineos Europe and Biesterfeld Plastic GmbH announced an extension to their long term cooperation in Europe. The distribution of Polypropylene and Polyethylene in Russia and Ukraine is to be carried out by OOO Kuttner, located in Moscow, a member of the Biesterfeld Group, said Biesterfeld Plastic in its press release.

"The combination of Ineos' integration and portfolio with Biesterfeld's marketing expertise presents a very strong offer for customers in this region. We are therefore looking forward to a long and successful partnership in this important and growing market" said Mervyn Williams, Polymer Sales Director, at Ineos O&P Europe.

As MRC wrote before, the styrenics business of Ineos (Rolle / Switzerland) has appointed German-based Biesterfeld Plastic (Hamburg) for the global distribution of PS-based microgranulates from its Dutch production site in Breda.

The olefins portfolio of Ineos Olefins & Polymers Europe is built around four key integrated cracker and derivative complexes: Grangemouth, (United Kingdom), Koln (Germany), Lavera (France) and Rafnes (Norway). Its polyolefins capabilities positions the business as a top tier manufacturer and leading industry supplier to the PE and PP market in Europe.

Biesterfeld Plastic GmbH is a leading distributor in the European plastics and rubber industry. The company cooperates with DuPont, ExxonMobil Chemical, INEOS Olefins & Polymers Europe, BASF Polyurethanes, Solvay, Chevron Phillips, Styrolution, Chi Mei and LG Chem.

MRC

MOSCOW (MRC) -- La Seda de Barcelona SA:Says the Commercial Court No. 1 of Barcelona, in which the company’s voluntary insolvency proceedings are being processed, agreed to initiate the liquidation phase of LSB, said Plasteurope.

As a consequence, the court has resolved to suspend the powers of administration and disposition of the assets during the liquidation phase as specified in the Insolvency Act. The court approved dissolution of the company.

The court agreed on the cessation of the Board of the company and the suspension of its powers of administration and disposition of the assets. The court agreed to appoint insolvency administration.Says the insolvency administration is required to present the corresponding liquidation plan.

The court resolved to announce the initiation of the liquidation phase in the Public Register of Insolvency (el Registro Publico Concursal) and the Bulletin of the Judicial Office (Tablon de Anuncios de la Oficina Judicial).

As MRC informed previously, La Seda de Barcelona said in mid-June that it would begin insolvency proceedings after failing to reach a deal with creditors. La Seda had a debt load of just EUR600 million (USD800 million) at the end of 2012, including debt to providers. Catalonia-based had been in talks with its lenders since September last year after its business ran into trouble because of high raw materials costs and excess supply of the PET plastic containers that it makes.

La Seda de Barcelona SA (LSB) is a group of companies, involved in the manufacture and recycling of PET and PTA resins, industrial chemicals, preforms and biodiesel.

MRC

MOSCOW (MRC) -- Dutch paint maker Akzo Nobel N.V. posted fourth-quarter 2013 net income attributable to shareholders, including impairment, of 51 million euros, as against a loss of 27 million euros, a year before. Quarterly earnings per share from total operations amounted to 0.21 euros, versus a 0.11 euros loss last year. However, on an adjusted basis, loss per share for the tri-monthly period was 0.01 euros, said the producer in its press release.

Revenues for the fourth quarter of 2013 dropped to 3.48 billion euros, from the prior-year figure of 3.67 billion euros.

Further, AkzoNobel added that, in 2014, it would continue to significantly restructure to reduce costs further and anticipates related restructuring charges of at least 250 million euros. Going forward, the company said it is on track to deliver its 2015 targets of ROS at 9% and ROI at 14.0 percent with a net debt/EBITDA ratio lower than 2.0.

In addition, the firm woud propose a 2013 final dividend of 1.12 euros per share, which would make a total 2013 dividend of 1.45 euros per share.

As MRC informed before, in October 2013 AkzoNobel finalized the EUR260 million divestment of its Building Adhesives business to Sika AG.

Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.
MRC

MOSCOW (MRC) -- A drop in natural gas prices caused by a shale gas boom in the United States is hurting Brazilian petrochemical company profits by reducing pricing power and making them less competitive, Odebrecht CEO Marcelo Odebrech, according to Reuters.

Braskem SA, Brazil's state-controlled oil producer Petroleo Brasileiro SA are discussing a cut in the domestic natural gas price to bring Braskem's costs more in line with those in the United States, Odebrecht Chief Executive Officer Marcelo Odebrecht said at a Credit Suisse Group event. Braskem is Latin America's No. 1 petrochemical company. Petrobras, as Petroleo is commonly known, is the principal source of domestic and imported natural gas in Brazil.

Petrochemical producers around the globe are contending with increasingly competitive U.S. rivals, who have seen the cost of gas plunge as output of gas from unconventional shale reservoirs grows. Those lower costs have boosted U.S. exports and driven down prices worldwide.

Petrobras charged local distributors USD8.22 per million British Thermal Units (MBTU) of domestic natural gas in the third quarter. The benchmark U.S. Henry Hub price in the quarter was USD3.55 MBTU, 43% less than in Brazil. While prices have risen to about USD4.91 MBTU in the U.S., they are still 40% below Brazilian levels.

Prices helped cause Brazilian exports of styrene, polystyrene and ethylene fall 7.6 percent in 2013 while imports jumped 21%. Cheaper Brazilian natural gas would make it easier for Braskem and other producers to cut their prices, helping maintain export levels and make their products more competitive at home.

As MRC wrote before, Argentina's stock regulator has rejected as inadequate an offer from Brazil's Braskem, Latin America's largest petrochemical company, to buy the roughly 30% of the shares of plastic maker Solvay Indupa that are publicly traded.

Braskem is a Brazilian petrochemical company headquartered in Sao Paulo. The company is the largest petrochemical company in Latin America and one of the largest in the world. Braskem controls the three largest petrochemical complexes in Brazil, located in the cities of Camacari (Bahia), Maua (Sao Paulo) and Triunfo (Rio Grande do Sul). Besides these three petrochemical complexes, Braskem also controls a complex in Duque de Caxias (Rio de Janeiro).
MRC