PC imports in Ukraine increased by 13% in January-May

MOSCOW (MRC) - Imports of polycarbonate (PC) in Ukraine increased to 1,600 tonnes in January-May, up 13% year on year, according to MRC DataScope.

Demand in extrusion sector traditionally increased in May. Only Ukrainian producer of cellular and solid PC sheets company Tagol, based in Dnipropetrovsk, processed more than 200 tonnes of PC in the first five months of the year.

Ukraine's market of extrusion PC grew by 41% in the first five months of the year. Main industries, where used finished products from extrusion PC, are construction and agriculture. Construction sector widely uses cellular PC sheets of 6, 8, 10 mm, as well as monolithic and painted sheets. Agriculture sector uses cell PC sheets of 4 mm.

Imports of blowmoulding PC increased to 280 tonnes in January-May, up by 17% year on year. The sectors of blowmoulding and extrusion PC are influenced by seasonality.

Buying activity increase in April and May ahead of the summer season and the stronger demand for PC bottles for water transportation.
The lowest increase in imports in the reporting period was seen in injection moulding segment -800 tonnes over the reported period, up 9%. This sector is the most stable and least affected by seasonality.

In general, we can say that the PC market in Ukraine was practically not affected by tense economic and political situation in the country, business activity remained at the same level, some sectors of the market even improved.
MRC

MOSCOW (MRC) -- Imports of polypropylene (PP) into Belarus decreased over the first four months of 2014 by 2% year on year. Demand for copolymers of propylene continued to grow, while demand for homopolymer of propylene (homopolymer PP) subsided, reported MRC analysts.

April PP imports declined to 6,600 tonnes from 7,200 tonnes in March. The overall PP imports to the local market totalled 24,600 tonnes from January to April 2014 versus 25,000 tonnes a year earlier. Homopolymer PP accounted for the reduction in supplies.

April imports of homopolymer PP into Belarus fell to 4,000 tonnes from 4,900 tonnes in March. The overall imports of homopolymer PP were 16,500 tonnes over the first four months of the year versus 18,800 tonnes a year earlier. Russian producers with the share of over 60% are the key suppliers of homopolymer PP to the local market.

Imports of copolymers of propylene to Belarus rose to 2,600 tonnes in April from 2,300 tonnes in March. The overall imports of copolymers of propylene to the local market reached 8,000 tonnes from January to April 2014, up by 30% year on year. Producers from Germany and Poland are the key suppliers of copolymers of propylene.
MRC

MOSCOW (MRC) -- Technip, leader of a joint venture with Fluor, has been awarded a program management consultancy contract by Petronas for the Refinery and Petrochemical Integrated Development (Rapid) project in Johor, Malaysia, as per GV.

The contract includes overall project and site management for the project and provision of project management services for specific engineering, procurement, construction and commissioning packages within Rapid.

Rapid, part of Petronas’ larger Pengerang Integrated Complex project, will include a 300,000-b/d refinery, which is due to start up by early 2019 and will supply naphtha and liquid petroleum gas feedstock for the petrochemical portion of the complex. The complex will have the capacity to produce 7.7-million t/y of various petrochemicals.

As MRC wrote previously, Malaysian state oil and gas company Petronas has pushed back the completion date for its Johor refinery-petrochemical project to 2017 as a final investment decision has been delayed. The company was expected to give the project the green light this year but had to push it back due to political uncertainty during the national elections early this year, industry sources said.

Petronas, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company wholly owned by the Government of Malaysia. The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment.
MRC

MOSCOW (MRC) -- Clariant, a world leader in specialty chemicals, has closed the sale of its water treatment business in Africa to AECI, domiciled in South Africa, reported Hydrocarbonprocessing with reference to officials' confirmation.

The total value of the divestment amounts to CHF 34 million in cash at closing. The transaction was subject to certain precedent conditions, as well as regulatory approvals.

AECI is an explosives and specialty chemicals group domiciled in South Africa and its businesses are characterized by application know-how and service delivery in many African countries.

It already has a footprint in the industrial water and municipal and wastewater markets in South Africa, supplying a total water solution to its customers.

The former Clariant water treatment business provides chemicals, services and engineering solutions to a wide range of industries such as mining, automotive, food and beverage, metals and many others. It also serves municipalities to supply of drinking water in many African communities.

"The divestment of the Water Treatment business is the result of our continuous active portfolio management. We are pleased to have found in AECI an owner who is able to focus on this service driven activity", said Hariolf Kottmann, CEO of Clariant.

As MRC informed previously, in April 2014, Clariant Chemicals (India ) Ltd., an affiliate of Clariant AG announced the successful closure of the acquisition of Plastichemix Industries - a Gujarat based masterbatches business in India, with production facilities at Rania, Kalol and Nandesari. Clariant in India will now be one of the leading masterbatches producer, that will offer a wide range of products like black, white, additive, filler & colour masterbatches, flushed pigments & mono-concentrates and engineering plastics compounds.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints.
MRC

MOSCOW (MRC) -- BASF, Huntsman, Shanghai Hua Yi (Group) Co., Shanghai Chlor-Alkali Chemical Co. and Sinopec held a ceremony Tuesday kicking off the construction of a new 240,000 tpy plant for crude MDI (diphenylmethane diisocyanate) at the Shanghai Chemical Industry Park (SCIP) in Caojing, China, said Hydrocarbonprocessing.

With the new plant, the MDI capacity at this site will be doubled to 480,000 tpy. In addition, the partners plan to build a HCl (hydrogen chloride) recycling plant for the production of chlorine, a precursor for MDI.

The facility is expected to start up 2017. The project is subject to further approval of the Chinese Ministry of Commerce.

MDI is an important precursor in the manufacture of polyurethanes – versatile polymers that are used in industries like construction, automotive, appliance, and footwear. "Asia Pacific remains an important growth and investment region for BASF, with the fast growing Chinese market being a major focus," said Martin Brudermuller vice chairman of BASF's executive board.

"Polyurethanes are among the most versatile materials existing to address sustainability issues across numerous applications such as the automotive or construction industries,' he added. "With the new plant, BASF can participate in this dynamic market."

The new MDI plant is planned to be adjacent to the existing integrated isocyanates complex at the Shanghai park. This will enable the utilization and full access to raw materials and energy.

Shanghai Lianheng Isocyanate Co. has a production capacity of 240,000 tpy of crude MDI and includes manufacturing facilities for the precursors aniline and nitrobenzene built by BASF, Huntsman, Shanghai Hua Yi (Group) Co., Shanghai Chlor-Alkali Chemical Co. and Sinopec. Commercial production started in 2006.

As MRC wrote previously, in early June 2014, BASF successfully closed the previously announced transaction to divest its PolyAd Services business unit to Edgewater Capital Partners, L.P., a private equity firm based in Cleveland, Ohio. PolyAd Services is a stand-alone global business that offers innovative specialty blends and services to solve additive incorporation problems for the plastics compounding and converting industry globally. The business serves a wide spectrum of plastic applications in industries, such as automotive, building and construction, packaging and electronics.
MRC