Ukrainian converters reduced PET purchases by almost a quarter in January-April 2014

MOSCOW (MRC) - Imports of polyethylene terephthalate (PET) to Ukraine decreased by 24% in January-April 2014, compared with the same period a year earlier, according to MRC DataScope report.

Total imports of PET chips to Ukraine were 51,400 tonnes in January-April 2014. Imports volumes reduced in line with a general decline in the consumption of finished products from the producers of water, beer and drinks.

Structure of supplies has also changed. Ukrainian converters gave more preference to Middle Eastern suppliers. Imports volumes from South Asia and the Middle East have increased.

At the same time, Ukrainian companies have reduced purchases of Chinese and Lithuanian PET. PET imports from India increased to 10,000 tonnes over the reported period, compared to 5,700 tonnes in January-April 2013. PET imports from Pakistan has tripled to 4,500 tonnes.

At the same time supplies of the Lithuanian PET fell twofold to 5,400 tonnes. Imports of Chinese PET reduced by 36% to 28,700 tonnes.
Converters' opinions about the situation in the market were mixed.

Traders of finished products in Central and Western Ukraine reported a steady demand for PET because of hot weather and seasonal activity of water and beverage producers. At the same time a substantial part of the companies noted a drop in sales in the current year.

The sales have strengthened because of a seasonal factor, but in general, in the reporting period there was a decline in preforms consumption. The loss of the Crimean market and instability in the eastern regions (Donetsk and Luhansk regions) contributed to this situation.
MRC

European pipe HDPE prices increased by EUR20-30/tonne

MOSCOW (MRC) - The rising cost of ethylene and limited export quotas have led to a price increase of European pipe high density polyethylene (HDPE) for the CIS markets. European polyethylene price increased by EUR20-30/tonne for June delivery, according to ICIS-MRC Price Report.

Discussions for European HDPE for June delivery for CIS markets have finished this week. Given EUR10/tonne ethylene price increase and production cutbacks European producers announced a further increase in pipe HDPE prices for the CIS markets.

Deals for June delivery of pipe HDPE (PE 80) were done at EUR1,210/tonne FCA, and more. Contracts for European PE100 started at the level EUR1,230/tonne FCA and above.

Some market participants reported that they could not fully bought the required PE volumes from European producers. Market participants also reported that limited export quotas will remain in July too.

In general, many companies said that the prices of European PE were the same as at Asian producers. Price offers for Asian pipe HDPE for June shipment rose by USD20-30/tonne compared with the May level and ranged at USD1,670-1,700/tonne FOB.
MRC

UOP to license TPC Group process technology for on-purpose butadiene

MOSCOW (MRC) -- PC Group and Honeywell's UOP have entered into an agreement for UOP to be the exclusive licensor of the proprietary TPC Group OXO-D technology used to produce on-purpose butadiene, a key ingredient for making synthetic rubber, said Hydrocarbonprocessing.

The two companies will immediately begin working together to license TPC Group's proprietary OXO-D technology, which has been successfully operated for more than 40 years, commercially converting butene to butadiene for the production of synthetic rubber. The current OXO-D technology is the basis for TPC's current on-purpose butadiene project in commercial development now.

The two companies will jointly develop further enhancements to OXO-D, the most efficient and low-cost method to make on-purpose butadiene, leveraging UOP's expertise in licensing and technology.

"We believe our OXO-D technology is the most efficient, competitive and commercially proven technology in the world for the on-purpose production of butadiene," said Mike White, senior vice president of operations and technology. "We look forward to working jointly with UOP to continue to advance our leading on-purpose butadiene technology through UOP's depth of knowledge and experience as a licensor within our industry."

The technology effort is focused on the direct conversion of butene, a byproduct of refining processes, into butadiene, a key ingredient in the production of synthetic rubber used in tire and other applications.

"Changes in refining and petrochemical production in recent years have caused butadiene production to not keep pace with rising demand. This 'butadiene gap' can be closed with new technologies to produce on-purpose butadiene," said Pete Piotrowski, senior vice president and general manager of UOP's process technology and equipment business. "TPC helped found the modern on-purpose butadiene industry with its patented technology, and we look forward to commercializing new technology with them."

As MRC wrote before, UOP LLC, a Honeywell company, announced the launch of a new membrane element that more efficiently removes contaminants from natural gas and reduces the amount of valuable methane and natural gas liquids (NGLs) lost during the contaminant removal process.

Butadiene has been traditionally produced as a byproduct of the naphtha cracking processes. But in recent years, refiners have moved to using lighter feedstocks to make ethylene and propylene, key building blocks for plastics, causing less byproduct butadiene to be produced. At the same time, supply of butene, also a byproduct of refining processes, remains comparatively plentiful.
MRC

Solvay introduces high-performance polyamides for healthcare electronic devices

MOSCOW (MRC) -- Solvay Specialty Polymers has introduced a new family of Kalix high-performance polyamides (HPPAs) for structural components used in mobile healthcare (mHealth) electronic devices, said the producer in its press release.

The new products, which include the Kalix HPPA 5000 halogen-free series and bio-based Kalix® HPPAs, deliver exceptional strength, stiffness, and significantly improved chemical resistance versus traditional polycarbonate (PC) or PC/acrylonitrile-butadiene-styrene (ABS) materials typically used for covers and housings for mHealth electronic devices. Solvay made the announcement at the 2014 Medical Design & Manufacturing (MD&M) Eastexhibition June 10-12 in New York City.

The new Kalix HPPAs – first launched for smart mobile electronicsat K 2013 in Germany last October – are a unique offering targeted for frames and covers for healthcare displays, terminals, and modules along with chassis, housings, and bezels for mHealth devices.

Solvay has also introduced a new portfolio of bio-based HPPAs for healthcare OEMs wanting to incorporate renewable, bio-based polymers for mHealth devices. This includes the Kalix HPPA 3000 series, the first bio-based amorphous PPA, and the Kalix 2000 series, a family of bio-sourced PPA grades that provide outstanding impact resistance. According to Gallahue-Worl, the company’s expanded portfolio of bio-based PAs is driven by environmentally-conscious medical manufacturers who are continually striving for more sustainable alternatives.

As MRC wrote before, Solvay has completed the divestment of its polyvinyl chloride (PVC) compound business Benvic Europe to U.S. investment company OpenGate Capital, enhancing the resilience of the Group’s portfolio.

Solvay S.A. is a Belgian chemical company founded in 1863, with its head office in Neder-Over-Heembeek, Brussels, Belgium. The company has diversified into two major sectors of activity: chemicals and plastics. Solvay supplies over 1500 products across 35 brands of high-performance polymers – fluoropolymers, fluoroelastomers, fluorinated fluids, semi-aromatic polyamides, sulfone polymers, aromatic ultra polymers, high-barrier polymers and cross-linked high-performance compounds.
MRC

Solvay opened laboratory and production facility in North Dakota

MOSCOW (MRC) -- Solvay has opened its laboratory and production facility in North Dakota, putting it in pole position to serve oil and gas customers in the Bakken Shale Formation and expand its extensive tailored formulations that facilitate extraction, said the producer in its press release.

With this new facility in Killdeer, Solvay’s Global Business Unit Novecare is among the first specialty chemical players to serve oilfield services companies in North America’s second largest reserve of tight oil and shale gas. Novecare’s eighth laboratory and production unit is at the heart of the Bakken area, giving it key access to customers.

Solvay Novecare develops tailor-made, bio-based specialty formulations that help oilfield services operators manage and reduce water consumption, optimize stimulation operations and improve well yields. The business unit, which last year acquired Chemlogics, develops and produces these formulations at plant and laboratory facilities near its customers in the field. Each formulation is designed to fulfill their distinct needs, depending on the unique geological conditions of the shale formations.

As MRC wrote before, Solvay has completed the divestment of its polyvinyl chloride (PVC) compound business Benvic Europe to U.S. investment company OpenGate Capital, enhancing the resilience of the Group’s portfolio.

Solvay S.A. is a Belgian chemical company founded in 1863, with its head office in Neder-Over-Heembeek, Brussels, Belgium. The company has diversified into two major sectors of activity: chemicals and plastics. Solvay supplies over 1500 products across 35 brands of high-performance polymers – fluoropolymers, fluoroelastomers, fluorinated fluids, semi-aromatic polyamides, sulfone polymers, aromatic ultra polymers, high-barrier polymers and cross-linked high-performance compounds.
MRC