MOSCOW (MRC) - November contract price of propylene in Europe was agreed down EUR90/tonne below the level of the October. Nevertheless, despite such a significant decrease in the feedstock price, European producers intended to cap the decline in export prices of polypropylene (PP) for CIS markets by the level of EUR30-60/tonne , according to ICIS-MRC Price Report.
Serious drop in oil prices led to a similar decrease in the prices of petroleum products, in particular, November propylene contract price in Europe was agreed down EUR90/tonne below the October level. European producers, in their turn, said that they had a strong demand in the domestic market and the export quotas restrictions. In this regard, they did not intend to go on a proportional price reduction of polypropylene.
Last week deals for November homopolymer PP for CIS markets were discussed in the range of EUR1,130-1,190/tonne, FCA, down on average of EUR30-60/tonne below the level of the October. Negotiations on the propylene copolymers supply started from the level of EUR1,200/tonne FCA.
Many market participants said the European PP was the cheapest at the moment. Speaking about Middle Eastern producers, their price offers for November PP shipments were not less than USD1,500/tonne CFR.
MRC
MOSCOW (MRC) -- Brazilian petrochemical firm Braskem announces its results for 3Q 2014, said the company in its press release.
In 3Q14, average cracker utilization rate stood at 90%, increasing 6 p.p. from 2Q14. Resumption of operations at the Triunfo site and the higher capacity utilization rate at the Rio de Janeiro complex offset the scheduled maintenance shutdown at the Sao Paulo cracker.
Braskem sales followed the resins market trend and reached 939 kton. Sales of PP (USA and Europe) totaled 470 kton, 2% lower than in 2Q14. Compared to 3Q13, sales grew 9%, supported by the better economic scenario.
EBITDA of RD1,502 million, benefitting from higher spreads in international markets and the growth in sales volume. Compared to 3Q13, EBITDA decreased 10%. In dollar, EBITDA was USD660 million.
Braskem's leverage stood at 2.71x. Fitch revised its rating outlook for Braskem to "stable," reflecting the reduction in its leverage levels, the continued improvement of its results and progresses in its growth and feedstock diversification project.
Mexico project's construction reached 82% completion with the beginning of the hiring and training Team Members to run the future industrial operation. Pre-marketing activities advanced, with the number of active clients reaching 276.
On August 11, the subsidiary BRASKEM-Idesa withdrew the fourth installment of the project finance in the amount of USD383 million. Regarding the Ascent project, Ineos, LyondellBasell and Technip were chosen to supply the technologies to be used in the project.
In a partnership with Think Plastic and Aduaneiras, the "Exporter Qualification Project" was created to increase exports of manufactured goods made from plastic.
As MRC wrote before, Braskem plans to build a new polyethylene (PE) plant at its existing complex in La Porte, Texas. The new plant will manufacture ultra-high molecular weight polyethylene (UHMWPE), making it the first time for Braskem to produce UHMWPE outside of its home base in Brazil. Construction on the plant will begin in the third quarter of 2014, with completion expected in the first half of 2016.
Braskem is Brazilian main producer of polyethylene and polypropylene. In addition with ongoing plants located in both petrochemical complexes, in April 2008 Braskem opened a 300,000 metric ton polypropylene plant in the city of Paulinia (Sao Paulo).
MRC
MOSCOW (MRC) -- Solvay's Rhodia chemical producer in Brazil is halting some of its units amid a water shortage, widening the list of companies being impacted by Sao Paulo’s worst drought in more than eight decades, according to Hydrocarbonprocessing.
Rhodia shut four of its 22 output units at its Paulinia plant in Sao Paulo state because the river where it collects water is drying up, spokesman Roberto Custodio said by phone. The company is carrying out unscheduled maintenance on the units until water supplies return to normal.
Businesses across Sao Paulo, from restaurants to factories, are facing cuts to supplies, threatening economic growth in the state that’s responsible for a third of Brazil’s gross domestic product. Pulp producer Fibria Celulose is working on a contingency plan should its water be cut, and sugar association Unica is warning mills to come up with a backup plan. Textile group Abit said its members are already experiencing water shortages.
"Given its importance, anything that happens in Sao Paulo affects Brazil’s economic growth," said Leonardo Dutra, sustainability consultant director of Ernst & Young. "This lack of water can slow the country’s economic recovery."
Brazil’s economy slipped into a recession from January to June for the first time since 2009. With 40 million people residing across 96,000 square miles (250,000 square kilometers), Sao Paulo state is geographically bigger than the UK Seventy of the 645 cities in the state are already facing water shortages and 38 have started rationing, newspaper O Estado de S. Paulo reported this month.
As MRC wrote before, in 2011, Rhodia and SIBUR signed a letter of intent to create a joint venture in specialty surfactants. This strategic alliance would be focused on creating a leader in the CIS market where specialty surfactants are used particularly in home & personal care, and oil & gas industries, with the surfactants sector growing at more than 6% per year.
Solvay is an international chemicals and plastics company. In 2011, Solvay acquired Rhodia for approximately EUR 3.4 billion. Rhodia is one of the three sectors of activities of Solvay. Rhodia is a world leader in the development and production of specialty chemicals, and partner of major players in the automotive, electronics, flavors and fragrances, health, personal and home care markets, consumer goods and industrial markets.
MRC