Mogilevkhimvolokno reduces its export PET prices

MOSCOW (MRC) -- Mogilevkhimvolokno, the only Belarusian producer of polyethylene terephthalate (PET) chips, has announced to its customers a reduction in export prices for December shipments, according to ICIS-MRC Price report.

Export prices were reduced by EUR51-53/tonne FCA Mogilev, excluding VAT.

The producer is making concessions to buyers on the back of the overall downward price trend in Europe and Asia. The purchasing power of Belarusian PET consumers fell in the CIS countries. Consumers said they expect prices in foreign currencies to go down in December, following the November devaluation of the national currencies in Ukraine and Russia.

Open Joint Stock Company "Mogilevkhimvolokno" is the only Belarusian major producer of dimethyl terephthalate, PET polyester chips, food grade PET, polyester fibers and yarns and the main feedstock supplier for consumer industry of Belarus. The state's share in the company is 90.53%.
MRC

MOSCOW (MRC) -- Negotiations on Russian contract polyvinyl chloride (PVC) prices for December continued this week. Weaker demand and limited working capital at the converters made Russian producers cut PVC prices further, according to ICIS-MRC Price Report.

Negotiations on December contract prices for Russian PVC began last week. The discussions continued this week, many converters reported that the producers decreased contract PVC prices on average by Rb1,000/tonne, compared with the November level.

At the same time, a lot of companies said they were in no hurry to negotiate prices for December PVC delivery.
Contract prices of Russian PVC for December delivery were heard in the range of Rb48,000-50,000/tonne CPT Moscow, including VAT.

Some companies said that they managed to achieve prices below Rb48,000/tonne on 100% prepayment. Some producers said they had to reduce the contract price, despite a significant difference with imported material.
But it is quite likely that December will the last month for such a low prices of Russian PVC.

Demand for resin was quite strong for the current season and the current rouble devaluation offers great export prospects for producers. Two producers said that they concluded a few export contracts for December. Local converters reported that they understood that the low level of prices of Russian PVC will not last long.

Nevertheless, many of them planned to reduce PVC purchases in December, citing the decline in demand for finished PVC products and intended to shut their capacities for turnaround from 20s December to February.
MRC

MOSCOW (MRC) -- Polystyrene (PS) buyers in the CIS markets said they expect import prices of PS and styrene plastics in Europe to go down in December, according to ICIS-MRC Price report.

December contract prices of European PS will be reduced for consumers in the CIS countries. The reason for the price reduction are new prices of styrene monomer (SM), down by EUR150/tonne from November. A slump in prices in Asia is also putting preassure on PS producers in Europe. Producers will have to make concessions to their customers in the last month of 2014. Producers are expected to reduce their prices by EUR100-150/tonne.

November export prices of high impact polystyrene (HIPS) in Asia fell by USD110-140/tonne for consumers in the CIS countries. Prices of general purpose polystyrene (GPPS) in Asia slumped by USD120-140/tonne. Prices of expandable polystyrene (EPS) have fallen by USD120-140/tonne for importers from the CIS market since early November.
MRC

MOSCOW (MRC) -- Imports of polypropylene (PP) into Kazakhstan surged by 32% to 16,100 tonnes. Export sales of Kazakh PP increased to 19,000 tonnes because of the increased production, reported MRC analysts.

October PP exports to Kazakhstan rose to 2,700 tonnes versus 1,900 tonnes a month earlier because of higher shipments from Russia. The overall exports of propylene polymers to the local market rose to 16,100 tonnes from January to October 2014 versus 12,200 tonnes over the same period of 2013.

October exports of propylene homopolymers (homopolymer PP) were 2,300 tonnes versus 1,700 tonnes in September because of higher shipments of Russian producers. The overall imports of homopolymer PP to Kazakhstan increased to 12,200 tonnes over the first ten months of the year versus 7,500 tonnes over the same period of 2013. The overall imports of propylene copolymers totalled 4,000 tonnes over the stated period compared to 4,700 tonnes a year earlier.

This year, Neftekhim LTD, a local PP producer, increased its production by reducing the dates of the plant's shutdown. As a consequence, export sales of Kazakh PP also increased. October exports were 2,100 tonnes of homopolymer PP (2,300 tonnes in September). About 19,000 tonnes of homopolymer PP were shipped to foreign markets from January to October 2014, up by 42% year on year.

As reported earlier, Neftekhim LTD plans to launch the unit of PP granulation by the end of 2014, whereas before PP was produced as a powder. The company also intends to expand its range of PP grades, as well as the geography of exports.
MRC

MOSCOW (MRC) - Total imports of polyethylene terephthalate (PET) in Kazakhstan increased to 47,400 tonnes in the first ten months of the year, up 2% year on year, according to MRC.

The main PET importer in the country remained China. The share of Chinese brands in the local market reaches 60% (28,100 tonnes).
However, this year the Kazakh consumers increased purchases of Korean PET, decreasing purchases of the material from China. Imports of Korean PET occurred for 40% from the total PET imports in the country. A year ago, imports of Korean brands did not exceed 25% from the total consumption of PET chips. Total imports of Korean PET in Kazakhstan increased to 19,200 tonnes in January-October 2014.

According ICIS-MRC Price Report, last week, spot prices of PET in Kazakhstan were heard in the range of Tenge316,000-320,000/tonne CPT, including VAT.
MRC