PET prices in Asia dropped to the lowest in four years

MOSCOW (MRC) - A sharp drop in oil prices led to the reduction in the prices of aromatic hydrocarbons (paraxylene (PX)) and other derivatives of PET (terephthalic acid and monoethylene glycol). In this regard, the Asian producers have cut the prices of PET, updating at minimum over the past four years, according to ICIS-MRC Price Report.

This week the prices for PET in Asia fell to USD1,100 -1,130/tonne FOB China, down USD80-90/tonne lower from the previous week. Export prices were decreased by Korean and Chinese producers. Such sharp drop in prices was a surprise for the Asian market. Many sellers expected for stabilisation of prices and more active buying activity after the Chinese holidays.

Trader of Hanwha Corporation Dilshod Gulamov said: "We expected that the fall in prices will stop within USD1,180-1,190/tonne FOB China, since it was the minimum in the current year. Traders also expected growth in demand in October after the Chinese holidays. But PET prices on the contrary collapsed on Monday. Demand fell substantially, buyers were interested in prices, but did not purchased. If oil continues to decline, the price of paraxylene will also continue to decrease, resulting in PET price cuts. "

The largest importers of PET and converters in the CIS countries also were in no hurry to buy feedstock. Despite the sharp decline in PET chips prices, converters have taken a wait. There are reasons for the sluggish demand, said the biggest buyer of PET in the CIS countries. The first reason is expectations for further price declines. Oil prices are expected to fall further, resulting in a further PET price cuts. The second reason - the significant carryovers of finished products and PET chips in the domestic market of the CIS.

Warehouses of traders, producers PET and converters can meet the needs of the market for the month ahead, so there is no sence in the procurement now.


MRC

Styron to showcase its plastics products at Strategies in Light Europe 2014

MOSCOW (MRC) -- Styron, the global materials company and manufacturer of plastics, latex and rubber, will showcase its plastics for the LED Lighting industry at Strategies in Light Europe 2014 from 21-23 October, 2014, reported the company on its site.

Styron will also launch its EMERGE 8830 Advanced Resins, an innovative material that balances transparency, flame retardancy and thickness - three key performance properties necessary as the market continues to move toward thinner gauge applications. The material is UL 94 rated V-0 at 1.0mm and 5VA at 2.5mm and is the next generation advancement in Styron’s EMERGE 8000 series.

Styron offers a broad portfolio for LED Lighting Applications under the CALIBRE Polycarbonate Resins and EMERGE Advanced Resins brands. This includes transparent, light diffusion and ignition resistant grades used in lenses, optics, diffusers, reflectors and housings.

"Styron’s global footprint is truly an advantage in the LED Lighting market," said Global Business Director, Philippe Belot. "We have technical and production resources that allow us to coordinate application development, product availability and technical support worldwide and this is especially critical since applications are often specified in one region and manufactured in another."

As MRC wrote before, Styron and its affiliate companies in Europe had increased its October prices for all polystyrene (PS) and copolymer grades. Thus, October contract and spot prices for the products listed below will increase as follows:

- STYRON general purpose polystyrene grades (GPPS), STYRON and STYRON A-TECH high impact polystyrene grades (HIPS) - by EUR20/tonne;
- MAGNUM ABS resins - by EUR30/tonne;
- TYRIL SAN resins - by EUR30/tonne.

Styron is a leading global materials company and manufacturer of plastics, latex and rubber, dedicated to collaborating with customers to deliver innovative and sustainable solutions. StyronпїЅs technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Styron had approximately USD5.3 billion in revenue in 2013, with 19 manufacturing sites around the world.
MRC

Sinopec to shut down PX plant in China for maintenance

MOSCOW (MRC) -- Top Asian refiner China Petroleum & Chemical Corp. (Sinopec) is in plans to shut a paraxylene (PX) plant for maintenance turnaround, reported Apic-online.

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

Located at Zhenhai in China, the plant has a production capacity of 650,000 mt/year.

As MRC informed previously, in August 2014, Sinopec posted a better-than-expected 7.5% increase in first-half profit as refining margin at Asia’s biggest refiner widened and production climbed.

We also remind that in November 2013, Sinopec won initial approval last month from China's top economic planner for a plan to build a USD10-billion refinery and petrochemical complex in Shanghai. China, the world's largest net importer of oil, is likely to add 3 million barrels per day, or a quarter of new refining capacity, between 2013 and 2015 to fuel economic growth, industry officials and Chinese media estimate.

China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group established in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec Group's key business activities include the exploration and production of oil and natural gas, petrochemicals and other chemical products, oil refining.
MRC

Ufaorgsintez reduced contract prices of polypropylene

MOSCOW (MRC) -- Ufaorgsintez, owned by United Petrochemical Company, has announced an adjustment in its contract polypropylene (PP) prices for shipments from 15 October, according to ICIS-MRC Price report.

The company reduced its contract prices of propylene homopolymer (homopolymer PP) of raffia grade by Rb1,300/tonne from 1 October. The plant's contract prices of injection moulding homopolymer PP dropped by Rb3,000/tonne from the beginning of the month. Prices of some grades of block copolymers of propylene (PP-impact) were also reduced by Rb800/tonne.

Ufaorgsintez OAO was founded in 1956 and is based in Ufa, Russia. Ufaorgsintez OAO manufactures organic synthesis products in Russia and Europe. Its products include ethylene, propylene, ethanol, cumol, ethyl benzol, phenol, acetone, copolymer rubber, polyolefines, poly vinyl chloride and polyethylene items, thinners, and dilutants. The company was incorporated in 1984. Ufaorgsintez produced about 89,600 tonnes of PP over the first nine months of 2014.

United Petrochemical Company owns 87.76% of Ufaorgsintez's capital. Bashneft sold Ufaorgsintez to United Petrochemical Company in May 2013.
MRC

Imports of polyamide and polyamide plastics in Russia for three quarters declined by 16%

MOSCOW (MRC) - Imports of polyamide (PA) and engineering plastics based on polyamide (PA-plastics) decreased to 9,500 tonnes in the last nine months of the year, down 16% year on year, according to MRC DataScope Report.

The most significant reduction in supply was seen in the sector of unfilled PA 6, with imports fallen to 2,000 tonnes, down 34% year on year. Imported PA 6 mostly processed by technology of films extrusion for food packaging.

Imports of PA copolymers decreased to 5,300 tonnes in the first nine months of the year, down 8% year on year. Main application of PA copolymers in Russia - injection of various parts for industrial purposes, as well as - production of packaging film.

Imports of unfilled PA 66 were 614 tonnes in the first nine months of the year, down 2%. This material is used for the injection of various automotive components.

Imports of PA-emulsions have increased to 1,400 tonnes in the first nine months of the year, up 2% compared to the same time a year earlier. Emulsions are used to impregnate the leather, paper, textiles, in order to increase their strength and moisture repellent properties.

Prices for PA and PA-plastics market are traditionally higher than the price of basic polymers. This material is a high-tech and has a high cost.
Because of the rouble devaluation, the domestic price of PA and PA-plastics have increased , which constrains converters in purchases.

MRC