Russian converters switched to imported PET

MOSCOW (MRC) - Imports of polyethylene terephthalate (PET) in the Russian domestic market increased to 128,000 tonnes in the first half of the year, up 40% compared with the same time a year earlier, according to ICIS-MRC Price Report.

The lion's share of shipments occurred for Chinese producers. Russia's imports of Chinese PET increased to 98.000 tonnes in January-June 2014, up by 46,500 tonnes year on year.

Russia's imports of Korean PET decreased to 11,900 tonnes in the reported period, down 12,500 tonnes year on year.

June imports of PET in Russia decreased to 20,500 tonnes, down 2,000 tonnes, compared with May level.

Converters said they planned to switch to imported PET purchases back in the beginning of 2014. The main reason of the purchases of Chinese PET chips was lower prices of the material.

However, it was expected that the growth of the capacity utilisation and stable operation of Polief and other Russian plants would help to reduce purchases of PET in foreign markets.

MRC

MOSCOW (MRC) - In the first two quarters of 2014 imports of polycarbonate (PC) in the Ukrainian market grew to about 2,00 tonnes, up 14% compared to the same period last year, as per MRC DataScope report.

Market players said that buying activity in July slightly declined, compared with the previous month on the back of holiday season and the period of the scheduled turnarounds. Many Ukrainian converters plan to shut their capacities for maintenances in late July.

Ukrainian market of finished PC products, mainly injection moulding products for the automotive and electrical engineering, partly focused on exports in Russia and other CIS countries. Market participants said that more than half of Ukrainian companies, which have business with Russia, now experience downtrend. However, about 40% of the rest companies continue to work normally, and ship the material to Russia.
Regarding exports of injection moulding products to the EU countries, their remained the same. Ukrainian converters have not felt the economic impact of the signing of the agreement with the EU countries so far. Exports to the EU are still hampered by the such obstacles as international certification, standardisation and quality control.

In general, Ukrainian PC market remained stable in all its segments, except for the extrusion, which in January-July this year showed an increase of consumption of 126%, compared with the same time a year earlier. According to market players, this resulted from a sharp reduction in imports of PC cell-sheets from Russia in the last two months.
mrcplas.com

MOSCOW (MRC) -- China’s polyester maker Tongkun is in plans to start a new purified terephthalic acid (PTA) plant, said Apic-online.

A source in China informed that the plant is planned to be started in 2017.

To be located at Zhapu in Zhejiang province, China, the plant will have a production capacity of 1.5 million mt/year.

As MR wrote before, Tongkun Group said its net profit for 2013 slumped by 72.1% year on year to yuan (CNY) 72m (USD11.6m), amid the sluggish domestic chemical fibre market. In 2013, the chemical fibre industry developed weakly, as well as oversupply in some regions which made the industry into the predicament, the company said.
MRC

MOSCOW (MRC) -- Asahi Kasei, Japan's largest producer of styrene monomer, plans to further reduce its SM production rates to 70% next week, from 75% currently, due to poor margins and feedstock supply issues, said Plastemart.

The company has a total SM production capacity of 710,000 mt/year across two plants in Mizushima -- the 320,000 mt/year No. 2 unit and the 390,000 mt/year No. 3 unit. The company has been reducing its SM run rates since the middle of June, due to high feedstock prices and crunched margins.

As MRC wrote before, Asahi Kasei’s (Tokyo, Japan) Fibers division will expand production capacity for polypropylene spunbond nonwovens in Thailand at its subsidiary Asahi Kasei Spunbond (Thailand) Co. AKST will add a new production line of 20,000 metric tons per year capacity which, combined with its existing production line, will double its capacity for spunbond nonwovens to 40,000 m.t/yr. The investment for the capacity expansion is approximately USD5 billion, with a scheduled startup of November 2015.
MRC

MOSCOW (MRC) -- DSM Composite Resins is increasing the prices of its complete portfolio of unsaturated polyester and vinyl ester resins sold in Europe, the Middle East and India, said Reinforcedplastics.

The price increase is EUR75-100 per tonne, depending on product and resin chemistry.

The increase took effect for all new deliveries after 1 July 2014.

"The price increase is driven by the continued increase in cost for our key raw materials, leaving us no choice but to raise the prices of our products," explains Fons Harbers, EMEAI Sales Director, DSM Composite Resins.

As MRC wrote before, DSM signs distribution agreements for Engineering Plastics B.V. with Nevicolor and Nexeo Solutions to strengthen its presence in Italy. DSM has entered into new agreements with two distributors for its Engineering Plastics portfolio in Italy to improve its coverage across the entire country. The move means that Italian customers (like DSM customers in other European countries) will now have a choice of distributors for their thermoplastics. The agreements with Nevicolor and Nexeo Solutions apply to the full range of DSM’s engineering Plastics products.

DSM Composite Resins, headquartered in Schaffhausen Switzerland, is a business unit of Dutch life and materials sciences company DSM.
MRC