January production of beer and mineral waters in Russia slightly decreased

MOSCOW (MRC) - January production of mineral water and beer in Russia decreased by 1.5% and 1.1%, compared with January in 2013, according to Rosstat.

Total Russia's production of beer and beer-based drinks was 39.1 million decaliters in January 2014, down 44.8% from the level in December 2013.

Russia's production of mineral waters in January 2014 was 702 million half-liters, down 17.4% from the December level.

January decline in production is traditional for the market. The decrease of January production was insignificant compared with January 2013 level and was close to a statistical discrepancy.

Market players expect buying activity to improve in the coming months, helped by oncoming season. Weak production of beer producers and bottlers resulted in a decrease of PET chips consumption. Converters reported a weak demand in the finished products market.

As previously reported, according to MRC DataScope MRC, Russia's imports of PET in January reached a record high level of 25,500 tonnes. Because of strong imports and weak demand in the preforms market Russian companies reduced their activity in the spot PET market.
MRC

MOSCOW (MRC) - Demand for polystyrene (PS) and styrene plastics in Ukraine grew to 3,400 tonnes in January 2014, up 25% from January 2013, according to MRC Monthly Report.

Buying activity in PS market increased in January because converters aimed to build up their inventories anticipating price rise in the foreign markets and a sharp devaluation of the hryvnia.

Many companies said despite the decline in the activity in the market of finished goods they feared a rise in PS prices, that is why they had increased their purchases.

Because of strong demand in the domestic market in January, Stirol shipped general purpose polystyrene (GPPS) practically to the domestic market only. Sources at the plant also reported a strong demand for Ukrainian expandable polystyrene (EPS) and GPPS this year. However, the producer did not meet the demand because of emty stock inventories and low production rates.

As reported previously, January imports of polystyrene and styrene plastics to Ukraine was 3,100 tonnes, down 2% from January 2013.
However, imports of expandable polystyrene (EPS), on the contrary, increased to 1,100 tonnes in January 2014, down 81% from January 2013.

Demand for polystyrene and styrene plastics will improve in the coming months, helped by the seasonal increase in activity and production rates.



MRC

MOSCOW (MRC) - Russian producers of high density polyethylene (HDPE) continue to keep high level of capacity utilisation, despite the low seasonal demand. Production of Russian HDPE increased by 6% in January 2014, compared with January 2013, according to MRC ScanPlast.

Demand for PE is traditionally weak in January. However, despite the low demand Russian producers kept a high level of capacity utilisation in January 2014. January HDPE production rose to 97,500 tonnes in the Russian market, compared with 92,000 tonnes in January 2013 (in December 2013 it was 93,700 tonnes).

Nizhnekamskneftekhim (Taif) and Gazprom neftekhim Salavat (Gazprom) increased their HDPE output in January 2014. Production of HDPE at these plants exceeded 16,500 tonnes and 9,000 tonnes respectively.

Russia's largest producer of polyethylene - Kazanorgsintez (Taif) kept capacity utilisation in January 2014 at the level of December 2013.
January HDPE production at the producer's capacities exceeded 45,100 tonnes.

Stavrolen (LUKOIL) slightly decreased its capacity utilisation in January, total HDPE production at the plant was about 26,700 tonnes.

MRC

MOSCOW (MRC) -- Strong demand from the domestic market and scheduled outages for maintenance at some polyvinyl chloride (PVC) plants in the United States continue maintaining export prices high. March offer prices for the CIS markets start from USD1,080/tonne, according to ICIS-MRC Price report.

Strong demand from the domestic market and the upcoming long shutdowns for maintenace works at Westlake and Shin-tech's plants led to a serious reduction in export PVC quotas for March shipments in the US. PVC export prices for March shipments exceed USD1,080/tonne for the CIS markets amid limited export quotas and higher ethylene prices.

Negotiations over March PVC shipments from the United States began this week. Offer prices for the CIS markets were heard in the range of USD1,080-1,100/tonne CFR St Petersburg and CFR Odessa, Novorossiysk, whereas February shipments were negotiated at USD1,050-1,070/tonne CFR St Petersburg and CFR Odessa, Novorossiysk.

Many market participants have refrained from purchasing PVC in the United States so far. The main reason for this is the weakening of the national currency against the dollar (in Russia - 6%, in Ukraine - 8.5%). Weak seasonal demand for finished products and consequent serious limitations of current assets also force them to refrain from purchasing North American resin.
MRC

MOSCOW (MRC) -- Grand Pacific Petrochemical Corp has shut a styrene monomer (SM) plant for maintenance turnaround, as per Apic-online.

A Polymerupdate source in Taiwan informed that the plant was shut on February 15, 2014. It is likely to remain off-stream till March 11, 2014.

Located at Tashe in Taiwan, the plant has a production capacity of 130,000 mt/year.

As MRC wrote previously, Idemitsu Kosan, one of Japan’s largest refining and petrochemical companies, is in plans to shut its SM plant for maintenance turnaround in April 2014. It will remain off-stream for around one month. Located in Chiba, Japan, the plant has a production capacity of 210,000 mt/year.

Besides, Taiyo Petrochemical is in plans to shut its SM plant for maintenance in September 2014. The shutdown is expected to remain in force for around 30 days. The plant is currently operating at full production capacity levels. Located at Ube in Japan, the SM plant has a production capacity of 370,000 mt/year.

Also, another major Asian petrochemical producer Samsung Total is likely to shut its No.1 SM plant for maintenance turnaround in March 2014. It is likely to remain off-stream for around one month. Located in Daesan, South Korea, the No.1 SM plant has a production capacity of 650,000 mt/year.
MRC