Shell and BP to announce big trade deals with China

MOSCOW (MRC) -- Shell and BP, the UK’s two biggest oil companies, are expected to announce trade deals with China today, on the second day of Premier Li Keqiang’s visit to Britain, said Independent.

The deals will form part of what is expected to be an GBR18bn package being brokered between firms in the two nations by the Chinese and UK governments.

BP is set to announce one of its largest deals to date with China, to supply the nation with liquefied natural gas (LNG). The contract could be worth as much as GBR5bn.

Shell is thought to have agreed to partner with the state-owned China National Offshore Oil Corporation to provide LNG, as well as cooperate on other global projects.

The Chinese Premier will meet with the Prime Minister for bilateral talks today and hold a press conference later this afternoon, where the trade deals are expected to be announced.

Two Chinese firms, Nord Engine and China Minsheng Investment Corporation, China’s largest private sector investment group, will also both announce large deals today.

Nord will put GBR150m into small and medium sized companies in the UK and EU and CMI is set to open its European headquarters in London and invest around USD1.5bn (GBR900m) across a range of different sectors.

China is seeking to bolster its slowing economy, which has seen GDP fall to 7.4 per cent in the first quarter of this year, an 18 month low, while David Cameron is keen to demonstrate greater links with the nation to improve struggling UK exports. As well as trade deals, Cameron is also thought to want to discuss China’s human rights record.

The main worry for China's leaders is if the economic slowdown leads to high unemployment that could spark social unrest. So far government officials say employment is stable.

So for now economists do not see any major stimulus or policy shift and instead expect the government to tough out the slowdown as they pursue a longer-term vision of reforming the economy towards consumer-led, rather than export- and investment-led growth.
MRC

MOSCOW (MRC) -- New anti-dumping duties on homopolymer suspension grade PVC imports from Taiwan, Korea, China, the US, Indonesia, Thailand and Malaysia have officially taken effect starting June 13, reported Apic-online with reference to the Indian Ministry of Commerce and Industry's statement.

According to an official notice issued by the government, new anti-dumping charges levied will stay effective for a period of five years, from 2014 to 2018, unless otherwise stated by the government.

An Indian trade source said market participants were not affected by the sudden levy as it had only been a "matter of time" before the new duties were imposed, so the local market was noted to be prepared for it.

A Northeast Asia source said buying demand in India remained "good and firm" in the sentiment-driven market after official announcements Friday. The source said he had received increased interest from Indian buyers for PVC cargoes free of additional duties this week.

As MRC wrote before, India's government had decided earlier this year to extend the duration of anti-dumping investigations on PVC imports, according to a notification made from the Ministry of Commerce and Industry on January 24. This followed the expiration of duties as of January 23, 2014. Prior to the declaration there had been conflicting reports and confusion as to whether materials brought into the country would be subject to the additional fees. However, the declaration noted that duties would be in place until the end of the investigation, which was set for March 4, 2014. Previous anti-dumping duties were in force for six years.
MRC

MOSCOW (MRC) -- Russian oil giant Rosneft has set up a crisis centre and a special commission within its headquarters after a refinery suffered a fire on Sunday, reportedly resulting in six deaths, said Upstreamonline.

The state-controlled company said that, around 11:40pm local time on Sunday, a vapour line of the gas fractionation unit at the Achinsk refinery in Krasnoyarsk region depressurised, leading to a fire.

"A crisis center was formed. Within the central headquarters of the company a special commission was (also) formed. Vice-president Igor Pavlov is working on the site."

The Moscow-based giant did not provide any further details but indicated that an update on the situation was due on Monday afternoon.

Local media earlier reported that 12 people were affected by the fire, with six person killed.

As MRC wrote before, Igor Sechin, Rosneft's President and Chairman of the Management Board, and Leonid Mikhelson, Chairman of SIBUR Holding’s Board of Directors, have signed a set of documents for supplies of associated petroleum gas (APG) from Rosneft's fields to Nizhnevartovskiy, Belozerniy and Nyagangazpererabotka gas processing plants (GPPs), and a contract for sales of dry gas from Nizhnevartovskiy and Belozerniy GPPs to Rosneft.

Rosneft swiftly followed this up with confirmation that it has reached an agreement with AAR to take the other half of TNK-BP in an all-cash deal worth USD28 billion.
MRC

MOSCOW (MRC) -- Prices of Chinese polyethylene terephthalate (PET) for buyers in the CIS markets increased by USD25-50/tonne last week, following higher paraxylene (PX) prices and rising prices of the entire feedstock chain, including PTA and MEG, as well as good sales in export markets, according to ICIS-MRC Price report.

The trend has been changing and Asian PET prices have been growing since mid-May. Prices of Asian producers rose by an average of USD70-80/tonne over this period.

Russian buyers reported last week's higher purchase prices of Chinese grades. Import prices were heard at USD1,310-1,340/tonne CIF Vostochny, excluding VAT, in the east of the country. A converter said prices of the bottom range were already difficult to accept at the end of the week.

Ukrainian buyers announced prices of Chinese PET grades at USD1,350-1,370/tonne CIF Odessa, excluding VAT. At the same time, prices of Middle Eastern grades were heard at USD1,335-1,345/tonne CIF Odessa, excluding VAT. The price difference led to an increase in consumer demand for PET.

As reported earlier, Ukrainian buyers preferred South Asian and the Middle Eastern PET. Imports from India grew from January to April 2014 to 10,000 tonnes versus 5,700 tonnes from January to April 2013. Imports from Pakistan tripled and totalled 4,500 tonnes. At the same time, shipments of Lithuanian PET fell twofold to 5,400 tonnes. Imports of Chinese PET slumped by 36% to 28,700 tonnes.
MRC

MOSCOW (MRC) -- DuPont has announced that it has named Stacy L. Fox as senior vice president and general counsel effective Oct. 1, succeeding Thomas L. Sager, who is retiring following 37 years of service to the company, as per the company's press release.

"Tom has served as an outstanding general counsel at DuPont. He has set an exceptional benchmark as a lawyer through his unwavering commitment in promoting and developing diversity not only within DuPont, but throughout the legal community," said DuPont Chair and CEO Ellen Kullman. "He has been an innovator and pioneer in the legal profession and all who worked with him will miss his steady counsel and strong leadership.

"Stacy comes to us as a proven leader with exceptional experience as a lawyer and business executive. She will play an important role in supporting DuPont’s growth, and I am pleased to welcome her to the company."

Prior to joining DuPont, Fox, 60, held the position of senior vice president, Strategy, and general counsel and secretary of Sunoco, Inc. Previously, she served as executive vice president of Corporate Transactions and Legal Affairs for Visteon, an USD18 billion multinational automotive supplier and general counsel of Collins & Aikman, also in the automotive industry.

As MRC wrote before, DuPont Co. had said its first-quarter earnings fell 57% as the chemicals and agricultural-products company reported that growth in most of its businesses was offset by harsh weather and shifts in agriculture. The bottom line also was impacted by the sale of its performance coatings business last year, which had contributed nearly USD2 billion of income for the year-earlier period. In the latest quarter, earnings from the company's remaining operations rose 4.2%.

DuPont, is an American chemical company that was founded in July 1802. DuPont developed many polymers such as Vespel, neoprene, nylon, Corian, Teflon, Mylar, Kevlar, Zemdrain, M5 fiber, Nomex, Tyvek, Sorona and Lycra. DuPont developed Freon (chlorofluorocarbons) for the refrigerant industry, and later more environmentally friendly refrigerants. It developed synthetic pigments and paints including ChromaFlair.
MRC