Chevron Phillips to expand Texas alpha olefins unit

MOSCOW (MRC) -- Chevron Phillips Chemical (CPChem) received approval from its board of directors and obtained an environmental permit from the Texas Commission on Environmental Quality (TCEQ) to expand normal alpha olefins (NAO) production capacity at its Cedar Bayou plant in Baytown, Texas, said Hydrocarbonprocessing.

This investment will provide an additional 100,000 tpy of capacity. Construction completion is anticipated in July, 2015. Houston-based S&B Engineers and Constructors will execute the engineering, procurement and construction, and expects to support up to 600 jobs during the construction phase.

The project will utilize Chevron Phillips Chemical’s proprietary NAO technology. NAOs and its derivatives are used extensively as polyethylene co-monomers, synthetic motor oils, lubricants, automotive additives and in a wide range of specialty applications.

Chevron Phillips Chemical has recently announced the construction of a world-scale ethylene cracker in Baytown, Texas, two world-scale polyethylene reactors in Old Ocean, Texas and the start-up of the world’s largest 1-hexene facility in Baytown. The 1-hexene plant, capable of producing up to 250,000 tpy, is co-located with this expansion project at the Cedar Bayou plant. Chevron says the two plants will enjoy synergies as they both share the same infrastructure and workforce talent.

Chevron Phillips Chemica, headquartered in The Woodlands, Texas (north of Houston), US,l is one of the world’s top producers of olefins and polyolefins and a leading supplier of aromatics, alpha olefins, styrenics, specialty chemicals, piping, and proprietary plastics. Chevron and Phillips 66 each own 50% of Chevron Phillips Chemical.
MRC

MOSCOW (MRC) - Gazprom neftekhim Salavat has shut its production of high impact polystyrene (HIPS) and general purpose polystyrene (GPPS) on 1, July, according to ICIS-MRC Price Report.

The producer shut its PS capacities on scheduled maintenance works. The company is expected to resume its PS production on 1, August.

Traders reported small carryovers of PS by Gazprom neftekhim Salavat's production at their stocks. They expect a shortage of the producer's PS in July because of the small volumes of the material available.

Price offers for HIPS from Gazprom neftekhim Salavat were heard in the range of Rb78,500-81,000/tonne CPT Moscow, including VAT. Spot prices for GPPS by Gazprom neftekhim Salavat production were heard in the range of Rb72,500-75,000/tonne CPT Moscow, including VAT.
MRC

MOSCOW (MRC) -- Lanxess A.G. will increase prices for its Durethan base resin, film and extrusion grades in Europe, Middle East and Africa by 16 cents per kilogram effective July 1, said the producer in tis press release.

The firm said ongoing continuous high level of raw material costs was the primary reason for the increase, but existing agreements will be honored.

The affected products in the Durethan portfolio are polymide six and CoPA based engineering plastics used for the production of films for food packaging, industrial films, semi-finished products, other extrusion applications and as a raw material for compounds.

We remind that Lanxess successfully concluded the pilot phase for a highly efficient production process for butyl rubber in Zwijndrecht/Belgium in April 2014.

Lanxess employs 17,000 in 31 countries and operates 52 production sites worldwide. It reported sales of about USD11.3 billion in 2013. The company is currently represented at 52 production sites worldwide. The core business of Lanxess is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals.
MRC

MOSCOW (MRC) -- Imports of suspension polyvinyl chloride (SPVC) into Ukraine decreased by 25% over the first five months of 2014, according to MRC DataScope.

The change of the political regime, economic slowdown and a major currency devaluation have led to a noticeable slump in demand for SPVC in Ukraine this year. SPVC imports rose in April and May to 8,400 tonnes and 10,900 tonnes, respectively, under the pressure of a seasonal factor. The overall SPVC imports to the Ukrainian market fell from January to May 2014 to 36,400 tonnes from 48,400 tonnes a year earlier.

The structure of SPVC imports into Ukraine over the stated period looks the following way.

May imports of European PVC to the Ukrainian market rose to 5,400 tonnes from 3,500 tonnes in April. The overall imports of resin from Europe totalled about 14,600 tonnes over the five months of 2014 versus 23,300 tonnes in the same period of 2013. Producers from Hungary and Poland remained the key suppliers of suspension PVC to the Ukrainian market because of geographical factors.

This year's PVC imports from the US fell less dramatically than from Europe. May imports of North American PVC to the Ukrainian market virtually remained at the April's level and totalled about 4,800 tonnes. US PVC imports dropped to 20,700 tonnes over the said period from 23,400 tonnes a year earlier.

Imports of acetylene PVC from China were resumed last month, May imports were about 737 tonnes. The resumption of supplies from China was caused by lower prices compared to European and North American producers.

MRC

MOSCOW (MRC) - Though Russia's imports of high density polyethylene (HDPE) increased significantly in the past two months, driven by the outage at Stavrolen, total HDPE imports to the country dropped by 23% in the first five months of the year compared to the same period in 2013, according to MRC DataScope report.

Following a significant decrease in the first quarter of this year, Russia's HDPE imports in April and May increased to 23,200 and 22,000 tonnes, respectively. Total HDPE imports in Russia were 98,100 tonnes in January - May 2014 compared with 128,200 tonnes in the same time a year earlier.

Seasonal increase in demand and an outage of second largest HDPE producer - Stavrolen led to a slight surge in imports, but total imports this year is below last year's figures. Structure of HDPE imports to the country was as follows.

May imports of HDPE for extrusion coating large-diameter pipes decreased to 3,200 tonnes compared with 5,300 tonnes in April. Total Russia's imports of HDPE for extrusion coating large-diameter pipes decreased to 26,500 tonnes in January - May of this year, down 14% year on year. We remind that Russian government has temporary cancelled the import duties on this polyethylene, from 9.1% effective before. May imports of pipe HDPE grew to 8,100 tonnes compared with 5,800 tonnes in April, driven by Stavrolen's outrage.

Total imports of pipe HDPE to the country were 24,100 tonnes in the first five months of the year, down 27% year on year.
May imports of injection moulding HDPE decreased to 4,000 tonnes compared with 5,100 tonnes in April.

Total Russia's imports of injection moulding HDPE grew to 19,900 tonnes in the first five months of the year compared with 19,500 tonnes year on year.

May imports of blowmoulding HDPE in Russia were about 3,400 tonnes compared with 4,600 tonnes in April. Russia's imports of blowmoulding HDPE decreased to 14,500 tonnes in January-May 2014 compared with 16,200 tonnes year on year.

May imports of film HDPE to Russia increased to 2,400 tonnes compared with 1,300 tonnes in April. Russia's imports of film HDPE totalled 8,500 tonnes in January - May 2014, down 65% year on year.

Russia's imports of HDPE in other consumption sectors decreased to 4,600 tonnes in the first five months of the year compared with 4,900 tonnes year on year.

As MRC previously reported because of the accident at its ethylene production in late February, Stavrolen would resume HDPE production not earlier than in January 2015. Russia's imports of HDPE are expected to significantly increase in the next few months on the back of scheduled maintenances at Gazprom neftekhim Salavat and Kazanorgsintez and seasonally stronger demand. Current appreciation of the rouble against the dollar and the reduction of import duty to 6.5%, effective from 1, September 2014 will ease PE imports for Russian converters.

MRC