China will compete for naphtha cargoes with South Korean petrochemical makers

(Plastemart) -- China turned into a net importer of naphtha last year following an increase in the number of petrochemical plants. In 2009, China was net short of nearly 1.8 mln tons of naphtha, and up to January-September 2010, it was net short of close to 1.2 mln tons (average of 133,000 tons/month) , as per Reuters.

If growth in imports in China continues through early 2011, the Chinese players may have to compete for cargoes with South Korean petrochemical makers, who are in the process of expanding capacities. LG Chem and Samsung Total are expanding cracker capacities by 2011 to capitalise on recent strong margins, while SK Energy will restart a 200,000 tpa cracker this month after a two-year shutdown.


Gurit to supply PET structural core materials

(European Plastics News) -- Gurit has won a contract to supply PET structural core materials for wind energy applications in China. Starting in 2011, the two-year contract was won following similar deals in Europe. The value of the agreement was not revealed.

The company is installing a PET extruder in Tianjin, China, in order to service the contract, according to Rudolf Gerber, general manager of Wind Energy at Gurit. ⌠The installation of the new equipment, scheduled to be finished before the end of the year, will allow Gurit to produce the same quality and grades of PET core materials in and for China as we are currently producing in Europe, he said.

PET is widely regarded as a future key core material for wind energy applications, claimed the company. Produced in a continuous extrusion process, PET is not only cost effective but also offers convincing physical properties for wind energy applications.


Formosa Plastics Group plans to invest over US$2 bln in China

(Plastemart) -- Formosa Plastics Group plans to invest US$2.3 bln to expand its complex in China. The petrochemical project in the coastal city of Ningbo has passed the Chinese government's environmental impact evaluation. Approval from mainland authorities is likely before year end.

The project is expected to start construction in 2011 and it expected to be completed in three years, Bloomberg reported. The project, which still needs approval from the Taiwanese government, is part of FPG's overseas investment plans totaling up to NT$340 bln (US$11.2 bln) in three years, including expansion of its ethylene and propylene operations in the US, and the construction of a steel mill in Vietnam for US$7.8 bln.


Prices and demand for pipe HDPE in Russia are falling

MOSCOW (MRC) -- Purchasing activity in the market of pipe HDPE had considerably fallen as well as the prices by mid-November, according to MRC Price market reports.

October appeared a quite complicated period for the Russian market of pipe HDPE. Because of PE productions shutdowns for scheduled maintenance in Kazan and Nizhnekamsk, the offer of both colored and non-colored pipe materials was almost absent.

Yet from the end of summer big Russian producers of PE pipes started active contracting of materials for works in external markets in October-November. As a result in October pipe HDPE supplies grew almost twice as much compared to September and reached the level of record 14.2 KT.

By mid-October prices for small volumes of the Russian colored 100PE had reached the level of 63.000 - 65.000 Rub./t, including VAT, FCA. But starting from early November with sufficient volumes of both colored and non-colored Russian pipe HDPE along with slumping demand, the prices dropped to the level of 60.000 - 62.000 Rub./t, including VAT, FCA.

For more detailed information, see the Price market reports Polyethylene in Russia


CNOOC commences construction of fine chemical project in Hainan Province

(Plastemart) -- Oil Corp. (CNOOC) has started constructing a CNY 8.3 billion fine chemical project in Dongfang city industrial park, Hainan Province. The project will be constructed in two phases.

The first-phase project, to start operation in December 2012 with CNY 4.341 bln investment, will produce liquefied natural gas, MTBE, naphtha and diesel.

The second-phase project will produce acrylonitrile, styrene, MMA and acetonitrile and is estimated to start operation in April 2013.

The fine chemical project is a key project of Hainan's 11th five-year plan to count on the abundant offshore oil resources in Hainan. It will adopt deep catalytic cracking technology according to the nation's clean production and green chemical development principles.