PP imports in Ukraine decreased by 31% in January - April 2014

MOSCOW (MRC) - Imports of polypropylene (PP) in Ukraine decreased by 31% in the first four months of this year on the back of economic recession and the hryvnya devaluation, according to MRC DataScope.

April PP imports to Ukraine were 8,700 tonnes, which were almost equal the the March level of 8,800 tonnes. Total Ukraine's PP imports fell to 32,100 tonnes in January - April 2014, compared with 46,400 tonnes in the same period of 2013. The economic downturn and the subsequent weakening of the hryvnya played a decisive role in the weakening demand for polypropylene at the local converters.

Structure of PP imports over the reported period was as follows. April imports of homopolymer PP to Ukraine decreased to 6,400 tonnes, compared with 7,000 tonnes in March because of the reduction of supplies from the Middle Eastern producers. Total imports of homopolymer PP to Ukraine decreased by one third to 24,400 tonnes in the first four months of this year.

April imports of PP block copolymer increased to 1,200 tonnes. Ukraine's imports of PP block copolymers were 3,800 tonnes in the first four months of 2014, compared with 4,500 tonnes in the same period a year earlier.

Imports of PP random copolymers to Ukraine were about 774 tonnes in April. Total imports of PP random copolymer to Ukraine reduced to 2,900 tonnes in January - April of this year, compared with 3,900 tonnes in the same period a year earlier because of weakening demand in the sector of injection moulding and pressure pipes. At the same time, demand for BOPP films increased in the local market.

Imports for other polymers of propylene over the reported period decreased to 1,000 tonnes, from 1,600 tonnes in the same period a year earlier.


MRC

SIBUR reported Q1 2014 results

MOSCOW (MRC) -- OAO SIBUR Holding, an integrated gas processing and petrochemicals company, published its operational and financial results for the three months ended 31 March 2014 in accordance with International Financial Reporting Standards (IFRS), said the conpany in its press release.

Producer's revenue increased by 20.9% to RR 80,002 million in Q1 2014, compared to RR 66,184 million in the first quarter of 2013. The energy product group delivered strong performance on higher sales volumes. Producer's revenue from sales of energy products increased by 42.4% year-on-year to RR 49,622 million from RR 34,846 million in 2013. SIBUR substantially expanded its trading activities for LPG and naphtha with the launch of Ust-Luga transshipment facility.

In the first quarter of 2014, the companie's revenue from sales of basic polymers increased by 47.8% year-on-year to RR 7,396 million from RR 5,004 million in the first quarter of 2013. The increase was primarily attributable to higher PP sales volumes following the launch of Tobolsk-Polymer plant the second half of 2013.

This was partially offset by declining revenue from sales of synthetic rubbers, intermediates & other chemicals and processing services. The producer's synthetic rubber business remained under significant pressure on the back of persistent market price correction for our synthetic rubber grades. An unscheduled shutdown at our steam cracker in Kstovo resulted in a decrease in production of certain intermediates and the respective decline in revenue from sales of intermediates & other chemicals. Following the deconsolidation of OOO Yugragazpererabotka as of 12 March 2013, the company did not consolidate its revenue until March 2014, when we gained full control over OOO Yugragazpererabotka, which resulted in a decrease in sales of processing services in the first quarter of 2014.

The producer's EBITDA for the period amounted to RR 22,569 million, a year-on-year growth by 10.1% from RR 20,505 million in the first quarter of 2013. Our EBITDA margin totaled 28.2% compared to 31.0% reported a year earlier. The year-on-year increase in EBITDA was primarily attributable to the completion of large-scale investment projects, such as Tobolsk-Polymer plant, the biggest polypropylene production facility in Russia. The EBITDA was positively affected by the foreign exchange rate fluctuations.

The companie's profit for the first quarter of 2014 increased four times to RR 56,774 million from RR 15,634 million a year earlier. The increase was primarily attributable to non-cash gain on consolidation of Yugragazpererabotka and the revaluation of SIBUR’s share in the JV accounted for at historical cost before the transaction.

In the first quarter of 2014, our capital expenditures decreased by 36.4% to RR 13,682 million in the first quarter of 2014 from RR 21,507 million a year earlier, resulting from completion of several large-scale projects in feedstock & energy and petrochemicals segments.

In the first quarter of 2014, SIBUR made a payment of the first tranche for the acquisition of RN-Holding’s 49% stake in OOO Yugragazpererabotka in the amount of RR 20,547 million.

SIBUR is a vertically integrated gas processing and petrochemicals company, which operate RussiaпїЅs largest gas processing business in terms of associated petroleum gas processing volumes and are the leader in the Russian petrochemicals industry.
MRC

SPVC imports in Ukraine decreased by 34% in January - April 2014

MOSCOW (MRC) - Imports of suspension polyvinyl chloride (SPVC) in Ukraine decreased by 34% in January-April 2014 on political instability and significant hryvnya devaluation, according to a MRC DataScope report.

April SPVC imports in Ukraine seasonally increased to 8,400 tonnes. Total SPVC imports in Ukraine decreased to 25,500 tonnes in the first four months of the year, compared with 38,600 tonnes in the same time a year earlier.

Such a serious reduction in demand for PVC resulted from the change of the political regime, economic downturn, and as a consequence, devaluation of the national currency by more than 40%.

Structure of PVC imports in Ukraine over the reported period was as follows. April imports of European PVC in the Ukrainian market rose to 3,500 tonnes, compared with 1,900 tonnes in March. European PVC imports to Ukraine were 9,200 tonnes in January - April 2014, from 17,900 tonnes in the same period of 2013.

Key suppliers of SPVC to the Ukrainian market because of the geographical factors remained producers from Hungary and Poland. This year of PVC supplies from the USA were quite stable and on average were about 4,000 tonnes per month.

April imports of US resin to Ukraine increased to 4,700 tonnes, from 4,000 tonnes in March. Total imports of US resin to Ukraine over the reported period reduced to 15,900 tonnes, compared with 19,300 tonnes year on year.

MRC

BASF to сut jobs in Care Chemicals

MOSCOW (MRC) -- As part of a previously the ongoing restructuring of its Care Chemicals segment, BASF plans to cut around 120 jobs worldwide up to 2015, said Chemanager.

The efficiency scheme, which will hit some of the businesses acquired with Cognis in 2010, will be implemented in the Home Care, Industrial & Institutional and Formulation Technologies businesses and follows a similar scheme in the Personal Care division.

BASF said the moves reflect the need to realign its business models and processes to better address differentiated customer needs in the fields of standard products as well as innovative solutions, It added, however, that alongside streamlining it is also investing in its assets.

"We combine optimized business processes with targeted investments continuing to rely on offering innovative solutions as one main source for growth. In this way, we will further strengthen our leading position in the Home Care and Industrial & Institutional Cleaning as well as Formulation Technologies businesses," said Gabriel Tanbourgi, head of the Care Chemicals division.

BASF Care Chemicals division offers a broad range of ingredients for hygiene, personal care, home care, industrial & institutional cleaning, and technical applications.

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

PPG to acquire specialty coatings supplier Homax

MOSCOW (MRC) -- PPG has reached a definitive agreement to acquire The Homax Group, a supplier of decorative wall and ceiling texture repair products, said Hydrocarbonprocessing.

Homax is a portfolio company of Olympus Partners. The transaction is expected to close in the third quarter, subject to customary closing conditions. Financial terms were not disclosed.

Homax is the industry’s leading supplier of decorative aerosol drywall and ceiling texturing applications utilized primarily for home repair. In addition, it supplies various epoxy finishes, patching, caulking and mesh tape repair products, and other painting tools and accessories.

The company’s products are sold through major home improvement centers, hardware stores and paint suppliers.

"Homax products represent a new and unique offering for our customers," said Scott Sinetar, PPG's vice president of architectural coatings in North America. “The acquisition supports our continuing commitment to providing professional and do-it-yourself customers with leading coatings and related home remodeling and repair products."

As MRC wrote before, PPG, which also makes coatings for the auto, aircraft and other markets, in recent years has been shifting its emphasis to paint and other coatings from glass and chemicals. In December 2013, PPG agreed to buy the North American architectural coatings business of Amsterdam's Akzo Nobel NV for USD875 million in a bid to increase its exposure in the region ahead of a recovering U.S. construction market.

PPG Industries Inc. is an Americain international company that produces paints, chemicals, optical components, specialty materials, glass and fiber glass. The company consists of more than 150 production units and offices in more than 60 countries. PPG industries is in the list of the top 500 U.S. corporations in terms of sales of.
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