Production of products from polymers in Russia rose by 3.7% in January-April 2014

MOSCOW (MRC) -- The output of finished products made from polymers in Russia increased over the first four months of 2014. Polymer films producers accounted for the main growth in production, reported MRC analysts.

Production of key products from polymers in Russia rose by 3.7% from January to April 2014. Polymer films producers accounted for the greatest increase in the output, whereas this figure has been negative in the construction sector since the beginning of the year.

According to the Federal State Statistics Service of the Russian Federation, April production of unreinforced and non-combined films rose to 91,600 tonnes (in March - 90,400 tonnes). Thus, the output of these products in Russia exceeded 305,100 tonnes from January to April 2014, up by 17.7% year on year.

Last month's production of porous sheets and plates totalled about 18,100 tonnes (in March - 16,200 tonnes). The output of these products increased over the first four months of 2014 by 6.6% to 67,400 tonnes.

April production of bottles, large bottles and flasks from polymers rose to 1.4 billion items (in March - 1.03 billion items). About 4.6 billion pieces of bottles, large bottles and flacks were produced in Russia over the first four months of 2014, up by 5.1% year on year.

Last month's output of doors and their boxes from polymers totalled about 77,300 square meters (in March - 69,100 square meters). The overall production of these products virtually remained at the last year's level from January to April of 2014 and totalled 240,200 square meters (an increase of 0.9%).

April production of plastic pipes, hoses and fittings rose to 49,600 tonnes (in March - 41,400 tonnes). The overall output of these products reached 152,300 tonnes over the first four months of the year, down by 13.8% year on year.

Last month's output of plastic windows and their frames and sills grew to 2 million square meters (in March - 1.7 million square meters). The production of plastic windows and window sills totalled about 6.3 million square meters from January to April of 2014, down by 4.1% year on year.
MRC

MOSCOW (MRC) -- Weak demand for finished products and the continuous devaluation have led to a major reduction in polyethylene (PE) imports into Belarus. Thus, PE imports decreased by 23% over the first three months of 2014, reported MRC analysts.

March PE imports to Belarus rose to 5,900 tonnes. However, PE imports to the local market fell to 20,100 tonnes in the first quarter of 2014 from 26,100 tonnes a year earlier. Local companies were forced to reduce PE purchasing in foreign markets amid weak demand for finished products and the prolonged devaluation on the back of limited credit financing.

March imports of high density polyethylene (HDPE) was about 2,600 tonnes. Thus, the overall HDPE imports to Belarus fell over the first three months of the year to 10,500 tonnes from 15,000 tonnes a year earlier. Russian HDPE producers accounted for over 70% of the total imports, although their share will be shrinking in the coming months on the back of an outage at Stavrolen.

March imports of low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) totalled about 3,300 tonnes. The overall imports of these PE grades dropped to 9,700 tonnes over the first three months of 2014 from 11,100 tonnes a year earlier. The key suppliers in the LDPE sector are Russian producers with the share of over 60%, while Sabic, the Middle Eastern producer, with the share of over 70% occupies the leading position in the LLDPE market.
MRC

MOSCOW (MRC) -- China's Ministry of Commerce (Mofcom) will suspend anti-dumping duties on adipic acid (polyamide intermediate) from the European Union, the US and South Korea, if applications for expiry reviews are not received from domestic adipic acid producers, reported Apic-online.

The applications must be submitted in written form, from domestic companies or representatives thereof, to Mofcom and shall include sufficient evidence that termination of the anti-dumping measures may cause the continuance or reoccurrence of dumping and injury.

Applications must be received at least 60 days prior to the 2 Nov. 2014 expiration of the measures. The duties, ranging from 5% to 35.4%, were imposed in 2009.

As MRC wrote earlier, BASF is building a new Ultramid polymerization plant with a capacity of 100,000 metric tons per year in Shanghai, China. The new plant is planned to start up in 2015.

BASF now offers high performance Ultramid (polyamide), which is derived from renewable raw materials. BASF uses an innovative approach that replaces up to 100% of the fossil resources used at the beginning of the integrated production process with certified biomass. The production of polyamide for film, textile and carpet fiber as well as for engineering plastics applications is integrated into BASF’s global Verbund structure with polyamide intermediates (i.e. adipic acid, anolon, caprolactam), chemical raw materials (i.e. ammonia, cyclohexane, sulfuric acid), energy, by-product recovery, logistics and other services.
MRC

MOSCOW (MRC) -- Evonik Industries, the German specialty chemicals company, has commenced operation of an integrated production complex for isophorone and isophorone diamine in Shanghai, China, as per the company's press release.

The company has invested over EUR 100 million in the facilities, which will have an annual output capacity of 50,000 tonnes.

Construction in the Shanghai Chemical Industry Park (SCIP) took less than two years. Evonik Industries primarily plans to use the output of the new plants to serve customers in the coatings and paint, construction, adhesives, and composite industry in Asia.

Evonik has fifty years of experience with isophorone chemistry and continuously improves its process technologies. So far products based on isophorone (crosslinkers) are being manufactured in Marl and Herne, Germany, and in Mobile, AL, USA.

"Evonik is the only company worldwide to cover the entire supply chain of isophorone and its derivatives. We now are in a position to quickly and reliably supply our customers in China and other Asian countries from our regional production, consistently offering products of high quality and purity," explained Dr. Ulrich Kusthardt, Head of the Coatings & Additives Business Unit.

In addition to the new production complex, Evonik has built an application technology service centre with state-of-the-art laboratories at the Xinzhuang site in Shanghai. The custom-tailored isophorone solutions will strengthen the competitiveness of Asian customers, says the company.

The global market for isophorone and its derivatives grows at a stronger annual rate than global gross domestic product, with Asia showing above-average growth. The demand is particularly driven by the megatrend of resource efficiency. Thus, composites, which are used, for instance, in lightweight construction for automobiles as well as in highly durable wind power stations, offer above-average growth potential.

In addition, isophorone chemistry prolongs the life expectancy of heavily used surfaces, which reduces maintenance cost and often makes renovations superfluous. Examples include floor coverings in parking garages, facades exposed to demanding climatic conditions, or ships operating in salty ocean water. Growth projections are also high for environmentally friendly coating technologies, such as UV-curing systems or solvent-free powder coatings.

As MRC informed previously, Evonik Industries is paving the way for a new technology whose applications include automotive finishes that are more scratch-resistant than ever before. The specialty chemicals company has developed an industrial-scale method for producing silane-modified binders for automotive finishes. The advantage of these silane-modified binders: silane groups increase crosslinking density, making it possible to create automotive finishes that are flexible yet harder, leading to improved scratch resistance.

Evonik, the industrial group from Germany, is one of the world leaders in specialty chemicals. Profitable growth and a sustained increase in the value of the company form the heart of Evonik’s corporate strategy. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik is active in over 100 countries around the world. The group is a global market leader in isophorone chemistry with production facilities in Herne, Marl (Germany), Mobile, Alabama (USA) and Antwerp (Belgium). Its products are known worldwide under the brand names of VESTAMIN, VESTANAT, VESTAGON and VESTASOL.
MRC

MOSCOW (MRC) -- SK Gas will begin construction this month on a propane dehydrogenation unit at Ulsan, South Korea, reported GV with reference to the Korea JoongAng Daily.

The unit, based on the Catofin dehydrogenation process from Lummus Technology, will produce 600,000 t/y of propylene. Production is scheduled to begin in 2016.

CB&I last year was awarded the contract for licensing and engineering design of the PDH unit and at that time said the PDH unit will be the largest in Korea.

As MRC informed earlier, in 2013, China's National Development & Reform Commission approved the acquisition by SK Group (Seoul) of a 35% stake in a USD2.7-billion petrochemicals complex at Wuhan, Hubei Province. Sinopec and SK signed a preliminary agreement in 2011 to form a petchems joint venture at Wuhan. Financial details were not disclosed. The complex, completed at the end of last year, is designed to produce 800,000 m.t./year of ethylene, 300,000 m.t./year each of high-density polyethylene and low-density polyethylene.
MRC