PS import to Ukraine dropped by 10%

MOSCOW (MRC) -- Imports of polystyrene (high impact polystyrene (HIPS) and general purpose polystyrene (GPPS) to the Ukrainian market dropped over the first three quarters of 2014 by 10% year on year and totalled 19,400 tonnes, according to MRC ScanPlast report.

The devaluation of the national currency and weaker demand in the final products market led to a decline in the Ukrainian PS processing sector. Imports also dropped, despite an outage at Stirol. Traders said buying activity was low in the market.

Weaker demand was registered both in the HIPS and GPPS markets. GPPS imports to Ukraine decreased by 3% over the first nine months of the year to 11,300 tonnes. Traders said the market balance was sustained by packaging and disposable tableware producers. The fall in demand in this segment was not so important.

The situation was more difficult in the HIPS market. Imports fell to more than 17% over the stated period. 8,270 tonnes of HIPS arrived in Ukraine from January to September 2014. The weakest demand was registered from refrigerators and electrical engineering producers.
Only one Ukrainian plant - Stirol (Gorlovka) - produces PS and expandable polystyrene (EPS). The plant has been competely shut down because of the conflict in the east of Ukraine. The producer has not manufactured material since February.

MRC

Toomey to head BASF coatings business in North America

MOSCOW (MRC) -- Christopher Toomey, Senior Vice President of Regional Procurement for BASF in North America , will assume responsibility for the BASF Coatings business in North America, effective November 1, said the company in its press release.

He succeeds Juan Carlos Ordonez, Senior Vice President, who will move to lead the BASF Performance Materials division in Wyandotte, Michigan.

Before joining BASF in 2011, Toomey worked for Cognis, where he was Vice President and General Manager of Functional Products and Vice President of Human Resources and Communications.

As MRC reported earlier, in June 2013, BASF Coatings, BASF Group’s company specialized in paints and coatings industry, opened a new training center for automotive refinishing in Cesano Maderno, Italy. Earlier, the company set up a new Coatings Technical Competence Center ASEAN in Bangkok, Thailand. This new facility supports technical and laboratory activities mainly in motorcycle coatings including technology transfer, product development, performance testing, color design and development.

BASF’s Coatings division develops, produces and markets innovative automotive coatings, automotive refinishes and industrial coatings as well as decorative paints. Company operates sites in Europe, North America and South America as well as Asia Pacific. Within this network, we collaborate closely with our customers all over the world. In 2013, the Coatings division achieved global sales of EUR2.9 billion.

BASF is the largest diversified chemical company in the world and is headquartered in Ludwigshafen, Germany. BASF produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
MRC

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