Oltchim losses down 22% in Q2 2014 on production capacity utilisation gain

MOSCOW (MRC) -- Romanian insolvent chemical producer Oltchim Ramnicu Valcea on Wednesday said its loss narrowed 22% to RON 115.2 millio (EUR25.97 million) in the first half, from RON147.5 million a year earlier. Oltchim is currently at 22% of capacity, compared to 18% last year, said Business-review.

Turnover increased by 30%, from RON 208.7 million in the first half of 2013 to RON 271 million (EUR 60.7 million) in the first six months of 2014, according to a report from the chemical producer. The turnover increase is due to exports going up 51% to RON 185.79 million, while sales stagnated at RON 85 million.

Debts also inched up since the end of last year, by RON 20 million, to RON 3.63 billion.

Oltchim entered insolvency in January 2013. On Thursday, the managers announced they will again put up Oltchim SPV for sale, the company that owns the chemical producer’s assets. The new sale attempt will take place on December 15.

Oltchim's main products include polyvinyl chloride (PVC), polyols, dioctyl phthalate (DOP) and caustic soda.
MRC

MOSCOW (MRC) -- Idemitsu Kosan, one of Japan’s largest refining and petrochemical companies, is likely to shut its No 1 styrene monomer (SM) plant for maintenance turnaround, as per Apic-online.

A Polymerupdate source in Japan informed that the plant will be shut in end-August 2014. It is likely to remain off-stream for around one month.

Located in Tokuyama, Japan, the plant has a production capacity of 120,000 mt/year.

As MRC wrote previously, Idemitsu SM (Malaysia), an affiliate of Idemitsu Kosan, is likely to shut its styrene monomer (SM) plant for maintenance in August 2014. It is likely to remain shut for around one month. Located at Pasir Gudang in Malaysia, the SM plant has a production capacity of 600,000 mt/year.

Idemitsu Kosan is a Japanese petroleum company. It owns and operates oil platforms, refineries and produces and sells petroleum, oils and petrochemical products. The company runs two petrochemical plants in Chiba and Tokuyama. The two naphtha crackers can produce up to 997,000 tonnes of ethylene per year.
MRC

MOSCOW (MRC) - Another wave of devaluation of Ukrainian hryvnya has begun in the late July.
The rapid growth of the dollar led to a proportionally rapid increase in polymer prices, making many companies suspend their purchases, according ICIS-MRC Price Report.

The exchange rate of Ukrainian hryvnya against the dollar on Tuesday hit another record and exceeded the level of 13.4UAH=1USD. Thus, hryvnya devaluation from 24, July 24 (the date of the devaluation beginning) to 12, August was about 15%. Polyethylene (PE) and polypropylene (PP) prices have increased proportionally to the hryvnya rate growth, but most local converters were not ready for such a rise in prices for the feedstock and had to temporarily suspend their purchases.

Supply of PP and PE have been tightened in the Ukrainian market over the past few months because of several factors. However, the weak demand from converters offset the shortage.

Polyolefins prices for August delivery were left at the rollover from the July level. Price offers for low density polyethylene (LDPE) were in the range of USD2,220-2,300/tonne FCA, including VAT (hryvnya price is fixed at the time of at the time of interbank payment). Prices for high density polyethylene (HDPE) were in the range of USD2,200-2,250/tonne FCA, including VAT. Price offers for homopolymer PP were heard in the range of USD2,220-2,300/tonne FCA, including VAT.

Because of the rapid growth of the dollar, many medium and small converters had to suspend their purchases of polyolefins. Major producers because of the possibility of lending dollars did their purchases as usual. Some of the middle converters, so as not to completely stop production, had to buy the minimum required volumes.
MRC

MOSCOW (MRC) -- Imports of polyethylene terephthalate (PET) to Russia increased from January to July 2014 by 35% year on year, according to MRC ScanPlast.

Overall, about 143,000 tonnes imported PET entered the Russian market over the first seven months of the year.

Increased imports in H1 2014 were caused by the competitive price of Chinese suppliers. However, the growth in the exchange rate of the rouble against the dollar led to higher purchase prices of imported material, allowing Russian producers to expect a drop in demand for the competitive imported material in the second half of the year.

July imports fell by 26% from June and totalled about 15,000 tonnes. Russian converters have been reducing imports for the fourth consequtive month after the peak April figures. Buying activity remained low in the spot market, despite the downward trend in import purchasing from May to August, said sellers of Russian PET. Demand was impacted negatively by PET chips carryovers at Russian consumers' warehouses and low sales of PET preforms, said market players.

The share of Chinese PET grew in July structure of shipments at the expense of the Korean producers. Chinese grades accounted for 21% of the total July imports.

MRC

MOSCOW (MRC) - Imports of polypropylene (PP) in Russia decreased to 102,500 tonnes in the first seven months of the year, down 17% year on year, with the main decrease occurred for homopolymer PP imports, as per MRC DataScope report.

July PP imports in Russia increased to 15,100 tonnes, compared with 12,800 tonnes in June. The largest drop in July imports occurred for homopolymer PP because of the growth of domestic production, which this year has exceeded 23%.

In general, the structure of PP imports over the period under looked as follows.

July homopolymer PP imports in Russia were 3,200 tonnes, compared with 2,900 tonnes in June on the back of an increase in demand for European material. Total homopolymer PP imports in the country were 33,100 tonnes in the first seven months of this year, down 32% year on year.

July block copolymers of propylene imports grew to 4,600 tonnes, compared with 3,900 tonnes in June because of increased supply of injection moulding and extrusion grades of copolymer. Total imports of block copolymers of propylene in Russia decreased to 28,000 tonnes in the first seven months of the year, compared with 33,100 tonnes year on year, with the largest reduction in demand occurred for the producers of injection moulding products.

Imports of PP random copolymers in Russia were about 3,600 tonnes in July, compared with 2,600 tonnes in June. Total imports of PP random copolymers in Russia decreased to 19,100 tonnes in January - July of the current year, compared with 22,000 tonnes year on year.

The main drop in demand occurred for injection moulding and extrusion grades, while the demand for the copolymer from the producers of BOPP films increased. Imports of other polymers of propylene over the reported period increased to 22,300 tonnes, compared with 19,300 tonnes year on year.


MRC