Vung Ru refinery project breaks ground in Vietnam

MOSCOW (MRC) -- Work has started on the Vung Ro refinery complex- a USD3.2 bln petrochemical refinery complex in the central province of Phu Yen, as per Plastemart with reference to the Vietnam News Agency.

It is designed to produce 8 mln tpa of products, including polypropylene, benzene, toluene, petrol RON 92 and RON 95.

The refinery complex is expected to commence operation in 2017.

As MRC informed previously, INEOS Technologies had licensed its Innovene PP process for the manufacture of homopolymers, random copolymers and impact copolymers to Vung Ro Petroleum Ltd. at its refinery complex located in Hoa Tam Commune, Dong Hoa District of Phu Yen Province, Vietnam.

The 900,000 Innovene PP plant will produce a wide range of polypropylene grades to serve the growing demand in the Asian market.
MRC

Russian tycoon Timchenko reduces stake in petrochemical company Sibur

MOSCOW (MRC) -- Russian tycoon Gennady Timchenko has cut his stake in petrochemical company Sibur, the firm said in a statement on Friday.

Timchenko, who is on the U.S. sanctions list, sold his 17 percent stake to a company controlled by Kirill Shamalov, deputy CEO at Sibur. Shamalov will own 21.3 percent of the company following the deal.

Sibur did not disclose the price.

Timchenko will keep a 15.3 percent stake, with Novatek co-owner Leonid Mikhelson owning another 50.2 percent, while current and former Sibur managers, excluding Shamalov, have 13.2 percent.

Earlier this year, Timchenko, an ally of Russian President Vladimir Putin, sold his stake in commodities trader Gunvor.

As MRC wrote before, Sibur, 57.5% controlled by Russian billionaire Leonid Mikhelson, has reached an agreement with state owned Russian oil company Rosneft to acquire its’ 49% interest in their Yugragazpererabotka gas processing joint venture. The interest has been held by Rosneft-owned RN-Holding, formerly TNK-BP.

Sibur is a vertically integrated gas processing and petrochemicals company, which operate Russia's largest gas processing business in terms of associated petroleum gas processing volumes and are the leader in the Russian petrochemicals industry.
MRC

Chinese producers increased export PVC prices

MOSCOW (MRC) - Last week Chinese producers announced an increase in export prices of acetylene polyvinyl chloride (PVC) for September deliveries to Russia of USD10-20/tonne, according to ICIS-MRC Price Report.

Chinese producers of acetylene PVC quite a long time held their export prices for the Russian market at USD810-860/tonne DAP Dostyk. Talks on the possible price rise have been held since July, but the real increase in export prices PVC producers in the north of China announced only late last week.

Deals for September PVC prices for Russia were discussed in the range USD830-870/tonne DAP Dostyk, up USD10-20/tonne above the August price level.

Some market participants said that increase in export prices from Chinese producers resulted from the reduction in import duty to 6.5% in the countries of the Customs Union (Russia, Belarus and Kazakhstan).

At the same time, the price rise is not big and dictated to a greater extent the desire to maintain their position in the Russian market in the conditions of the next wave of the weakening of the Russian rouble.
MRC

China ends anti-dumping duties on styrene-butadiene-rubber imports from Russia, Japan, South Korea

MOSCOW (MRC) -- China has ended its anti-dumping duties on styrene-butadiene-rubber (SBR) imports from Russia, Japan, and South Korea, effective Monday, September 8, the Ministry of Commerce said over the weekend, reported Apic-online.

In 2009, China extended its 4-38% anti-dumping duties on SBR imported from the countries by five years.

The tax expired Monday, and the ministry has been reviewing whether to extend it.

The ministry said the domestic industry urged it not to continue imposing the anti-dumping duty and, therefore, it decided not to continue it.

As MRC informed previously, China's Ministry of Commerce (Mofcom) will suspend anti-dumping duties on adipic acid (polyamide intermediate) from the European Union, the US and South Korea, if applications for expiry reviews are not received from domestic adipic acid producers.

Applications must be received at least 60 days prior to the 2 Nov. 2014 expiration of the measures. The duties, ranging from 5% to 35.4%, were imposed in 2009.
MRC

Prices of titanium dioxide in Russia decreased

MOSCOW (MRC) - Prices of titanium dioxide (TiO2) in the Russian domestic market decreased on the back of the weak demand and large carryovers, according to ICIS-MRC Price Report.

Traders in Russia reported a poorer sales in September. The situation in the titanium dioxide market was quite difficult in August, but in the beginning of September the market demand has fallen even more, according to sources in the market.

Market participants fear of further price reduction of titanium dioxide in the Russian domestic market. Some companies have sold material at a loss, wanting to get rid of the stock balance. Price range from Chinese producers in the Russian market were heard in a wide range.

Because of the desire to get rid of the carryovers prices have been reduced to Rb95,000/tonne CPT Moscow, including VAT. The upper end of spot prices of Chinese titanium dioxide in Russia were heard at the level of Rb110,000/tonne CPT Moscow, including VAT.

Price offers from Crimean Titan were heard in the range of Rb104,000 -108,000/tonne CPT Moscow, including VAT.
Prices of Ukrainian titanium dioxide by Sumykhimprom production were in the range of Rb100,000-105,000/tonne CPT Moscow, including VAT.

Spot prices of TiO2 by Dupont production for major buyers started from Rb130,000/tonne CPT Moscow, including and Rb150,000/tonne CPT Moscow, including VAT for the retail market.
MRC