PC imports to Russia rose by 3% in January and February 2014

MOSCOW (MRC) -- Imports of polycarbonate (PC) to the Russian market rose over the first two months of 2014 by 3% year on year and totalled 7,700 tonnes, according to MRC DataScope.

Buying activity was stable in the market, despite an increase in domestic prices for imported PC because of the rouble depreciation. Demand has begun to grow seasonally since late February, which traditionally lasts until late May. The current import quantities have met market needs so far, and hence there were no grounds for their reduction.

The extrusion grade sector accounted for the most significant growth in consumer activity. Imports to this sector have risen since the beginning of the year. 5,300 tonnes of extrusion grade PC were shipped to Russia in January andFebruary, up by 11% year on year. Overall, this material accounted for about 70% in the total imports for the stated period.

The main consumption sector of extrusion grade PC is production of PC sheets for their further usage in construction and agriculture. To date, there is a wide range of PC granules for sheets extrusion: pure polycarbonate, PC with light-scattering fillers, PC with UV protection, PC reinforced by fiberglass or PC with nonflammable additives. Prices of the material vary depending on the filler.

Extrusion grades without fillers or with UV filter are the most popular among the domestic converters. Both Russian PC of Kazanorgsintez and European PC (Bayer, Sabic) are in demand.

MRC

MOSCOW (MRC) -- Weak demand and high capacity utilisation at domestic plants led to a slump in imports of high density polyethylene (HDPE) to Russia over the first two months of 2014. Imports fell by 20% in January and February, according to MRC DataScope.

HDPE imports to Russia dropped to 37,700 tonnes (19,500 tonnes and 18,200 tonnes in January and February, respectively) from 47,100 tonnes in January and February 2013. Such a major decrease in HDPE imports was primarily caused by weak demand from the domestic market and high capacity utilisation of local producers. At the same time, imports grew in some consumption sectors.

The structure of HDPE imports in terms of processing over the stated period looks the following way.

HDPE imports for extrusion coating of large diameter steel pipes and imports of injection moulding grades rose in January and February 2014 to 15,300 tonnes and 8,200 tonnes, respectively, up by 23% and 7% year on year.

Imports of pipe grade HDPE decreased in the first two months of the year to 6,900 tonnes (11,900 tonnes in 2013) because of weak demand for finished products and higher prices in foreign markets, which were further boosted by the weakening of the Russian rouble.

Imports of blow moulding and film grade HDPE fell in January and February 2014 to 2,800 tonnes each from 7,600 tonnes and 5,200 tonnes in January and February 2013, respectively.

The outage at Stavrolen's HDPE production because of a force majeure (for not less than one year, according to unofficial information) will force Russian companies to increase imports in the near future, despite higher prices of imported material. The August-October period will traditionally account for the peak imports during scheduled shutdowns at Russian HDPE plants.

MRC

MOSCOW (MRC) -- Japan-based Sumitomo Chemical has announced the start-up of its new 40,000-t/y solution styrene-butadiene rubber (S-SBR) facility on Jurong Island in Singapore, reported Apic-online.

"Given the prospect that the demand for S-SBR is likely to continue developing in the medium to long term, Sumitomo Chemical has located the new S-SBR plant in Singapore because of various advantages the country offers, including its geographical proximity to the vigorously growing Asian market, and availability of a stable supply source for the raw material butadiene, as well as benefits from tie-ups with existing businesses of the Sumitomo Chemical Group in the region," the company explained.

The new plant is based on Sumitomo's proprietary solution polymerization production process and advanced polymer modification technology. Sumitomo said future S-SBR expansions are under consideration, without providing any details.

Meanwhile, as MRC wrote before, Sumitomo Chemical announced in February 2014 that it would permanently wind up the operations of an ethylene plant at its Chiba Works in Ichihara, Chiba, in or before September 2015, following a decline in domestic demand for ethylene derivatives.

Sumitomo Chemical is a Japanese based manufacturer of a diverse range of products, including basic chemicals, petrochemicals and plastics, fine chemicals, agricultural chemicals, IT-related chemicals and pharmaceuticals.
MRC

MOSCOW (MRC) -- BASF, the world's largest petrochemical producer, has established the research initiative "Network for Advanced Materials Open Research" (NAO) together with seven leading universities and research institutes in China, Japan and South Korea, reported the company on its site.

The scientists aim to cooperate in developing new materials for a wide range of applications. The initial focus is on products for the automotive, construction, detergent and cleaners industries as well as the water and wind energy industries.

"The initiative is a further important step in BASF’s strategy to expand global research activities," said Dr. Christian Fischer, President Advanced Materials and Systems Research. BASF plans to conduct 50% of its research activities by 2020 outside of Europe - one quarter in Asia Pacific.

BASF has also launched similar initiatives around the world, the "Joint Research Network on Advanced Materials and Systems" (JONAS) in Europe, as well as the "North America Center for Research on Advanced Materials" (NORA).

Initial research projects have already been launched across the region and others are in preparation. One example at Hanyang University in South Korea is the development of a modelling tool to predict the aging properties of composite systems used in the wind industry. A project currently in progress at Fudan University in Shanghai is the development of novel coating systems based on hybrid materials.

MRC informed previously that, as part of BASF's major innovation investment in China, the company opened in November 2013 the first Innovation Campus Asia Pacific and its new Greater China headquarters at its site in Pudong, Shanghai. The investment amounts to EUR 55 million. With this expansion the company's site will be one of BASF's largest outside of Germany. The further expansion of the facility is also planned.

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.
MRC

MOSCOW (MRC) -- Indonesia is set to see a likely influx of at least USD7 billion in new investment in the petrochemical sector in the next three years as the domestic industry tries to keep pace with rising demand, according to an industry association, as reported by Plastemart with reference to JakartaGlobe.

The director for Indonesian Olefin, Aromatic and Plastic Industry Association, said the investment will be made to expand domestic production capacity, which in turn could curb imports that rose to around USD8 bln last year. This investment would translate to 30-50% growth in the industry.

By 2020, Indonesia is expected to reduce petrochemical imports to zero. Indonesia produced 1.75 million tons of petrochemical products last year, while consumption was 3.5 million tons, with the difference filled by exports, according to data from the association.

Among the major expansion plans are Chandra Asri, which has earmarked USD965 mln to invest by 2015, and state-owned energy company, Pertamina, which has a joint venture agreement with Thailand’s PTT Global Chemical to build a USD5 bln petrochemical facility in Indonesia.

As MRC wrote earlier, in July 201, German petrochemical company Ferrostaal Industrial Projects GmbH and Jakarta-listed PT Chandra Asri Petrochemical, the country’s largest petrochemical producer, agreed to work on studies for the development of a petrochemical plant. Under an agreement, Ferrostaal and Chandra Asri will develop a methanol-based olefin production complex in Teluk Bintuni in West Papua, with a total investment amounting to USD1.89 billion.The complex is expected to produce up to 400,000 tonnes of polypropylene and 175,000 tonnes of ethylene annually.
MRC