Output of polymer products in Belarus decreased by 14.4% in January and February 2014

MOSCOW (MRC) -- Imports of general purpose polystyrene (GPPS) and high impact polystyrene (HIPS) fell in January- February 2014 by 36% year on year on the back of the national currency devaluation and increased polystyrene (PS) production in Russia, according to MRC DataScope.

The overall HIPS and GPPS imports totalled 7,700 tonnes in January and February 2014. GPPS accounted for 4,500 tonnes of the total imports (down by 40% year on year), while HIPS accounted for 3,200 tonnes of the total imports (down by 28% year on year).

Market players attributed the decline in imports by devaluation trends of the rouble, which had led to a substantial increase in the feedstock cost for local converters. In their turn, in the search for alternatives, Russian companies switched their attention to the domestic material. Russian producers said there was stronger demand for HIPS grades, which were in short supply.

Styrolution remained among the leaders, which supply GPPS and HIPS to Russia. The company accounted for 46.5% of the total imports in January and February.

GPPS imports is expected to fall further in the coming months because of the increased production and a launch of new grades by Nizhnekamskneftekhim.
MRC

MOSCOW (MRC) -- LG Chem shut a styrene monomer (SM) plant for maintenance turnaround, reported Apic-online.

The plant was shut on March 23, 2014. It is likely to remain off-stream for around two weeks, according to a Polymerupdate source in South Korea.

Located at Daesan, South Korea, the plant has a production capacity of 180,000 mt/year.

As MRC informed previously, South Korean petrochemical company LG Chem is planning to build an ethylene production plant in Atyrau, Kazakhstan. The project is going to be constructed in collaboration with two other Kazakh firms. The production is expected to begin in late 2016.

LG Chem also plans to start operations at a new 150,000 mt/year ABS plant in Huizhou, southern China's Guangdong province, in Q1 2014. The plant will be a joint venture with state-owned China National Offshore Oil Corp.

LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. According to ICIS report, it is 15th biggest chemical company in the world in 2011. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.
MRC

MOSCOW (MRC) -- The BASF TOTAL Petrochemicals joint venture (60% BASF, 40% Total) announced the startup of a 10th furnace at its steam cracker facility in Port Arthur, Texas, said Hydrocartbonprocessing.

The additional furnace improves feedstock flexibility, enhances plant reliability, and increases annual production capacity of ethylene to more than 1 million metric tons, according to project officials.

"The safe and successful startup of the 10th furnace, along with other optimization measures taken at the steam cracker facility, enhances the joint venture’s competitive position within the petrochemicals industry," said Heidi Alderman, senior vice president for petrochemicals at BASF.

"This investment is another example of BASF TOTAL Petrochemicals’ strong commitment to its Port Arthur operations."

Other optimization measures include a revamp of the steam cracker to process ethane, which was achieved last year. The new furnace will improve the steam cracker's availiability and efficiency, raising its cracking capacity by nearly 15%. Total noted that it is earmarking its share of ethylene produced in Port Arthur for its Bayport polyethylene plant and its share of propylene for its La Porte polypropylene plant, the world’s biggest. Both facilities are also located in Texas.

"These recent investments in the steam cracker allow the plant to produce more than 85% of its ethylene based on cost advantaged feedstocks," said Philippe Doligez, senior vice president for Total's Americas refining and petrochemicals business. "Along with increased capacity, the new furnace reinforces the availability of the plant."

About 250 construction jobs were created during the 10th furnace project and more than 250 during the ethane feed project.

BASF TOTAL Petrochemicals LLC is a joint venture between BASF Corporation and Total Petrochemicals & Refining USA, Inc. The Port Arthur facility operates one of the largest steam crackers in the world, turning naphtha and light hydrocarbons into ethylene, propylene and other chemical raw materials.

Total S.A. is one of the largest integrated international oil and gas companies with operations in more than 130 countries worldwide. TPRI is a major producer of base chemicals, styrene, polystyrene, polypropylene and polyethylene in the United States.
MRC

Moscow (MRC) - Negotiations on April polyvinyl chloride (PVC) prices began in Russia this week. Russian producers expectedly announced price increase on the back of stronger demand and tight supply, according to ICIS-MRC Price Report.

Discussions for contract suspension polyvinyl chloride (SPVC) traditionally begin in the last week of the month. This week the Russian producers announced increase in April SPVC prices of Rb1,500-3,000/tonne, compared with the March level on the back significant reduced imports, stronger demand and limited stocks inventories.

Deals for Russian K64 and K67 PVC for April delivery were discussed in the range of Rb50,000-52,000/tonne CPT Moscow, including VAT. Price offers for K70 SPVC were on average up by Rb1,000/tonne.

Many local converters said they would try to achieve lower prices for Russian PVC, citing a poor demand for finished products and limited working capital. At the same time, the companies agreed there is no real alternative to Russian resin in the market. Some companies said they would partially switch to the cheaper Chinese acetylene PVC.
MRC