Jurong Aromatics to shut down its petrochemical complex in Singapore for maintenance

MOSCOW (MRC) -- Jurong Aromatics Corp (JAC) is likely to shut its petrochemical complex for maintenance turnaround, reported Apic-online.

A Polymerupdate source in Singapore informed that the complex is planned to be shut on December 22, 2014. It is likely to remain off-stream for around 45 days.

Located on Jurong Island, Singapore, the aromatics complex of the company comprises an 800,000 mt/year PX plant, a 400,000 mt/year benzene plant and a 200,000 mt/year OX plant.

As MRC informed before, on 1 October 2014, ONGC Mangalore Petrochemicals Ltd (OMPL)'s Mangalore plant commenced regular commercial production of benzene and paraxylene. OMPL had conducted trial production during July-August period, exported three consignments to destinations such as Indonesia and Thailand.

Besides, this May, Ulsan Aromatics started commercial production at its new PX plant in South Korea informed. The new PX plant at Ulsan in South Korea has a production capacity of 1 million tonnes per year.

Paraxylene is used in the production of polyester fibres and PET bottles. Benzene is used as an intermediate to make products such as styrene, polystyrene, phenol and nylon.
MRC

MOSCOW (MRC) -- Italian Eni said on Thursday it had put on hold an assessment of its options regarding its stake in oil field services company Saipem because of difficult market conditions, said Reuters.

In July Eni laid out plans to sell assets, including its multi-billion dollar stake Saipem to help fund its transformation into a leaner oil and gas outfit.

In a statement on Thursday Eni confirmed it considered its stake in Saipem as non strategic.

Saipem shares have been hit hard by the cancellation of the South Stream gas pipeline project as well as the recent plunge in oil prices.

As MRC wrote before, Eni is open to talks with Gazprom about a possible partnership in Mozambique but is not aware of any interest from the Russian state gas monopoly in buying a stake in its gas assets there. Eni retains 50% of what is its biggest-ever gas discovery. The Mamba field holds an estimated 75 trillion cubic feet of gas.

Eni is an Italian multinational oil and gas company headquartered in Rome. It has operations in in 79 countries, and is currently Italy's largest industrial company with a market capitalization of 68 billion euros (USD 90 billion), as of August 14, 2013. The Italian government owns a 30.3% golden share in the company, 3.93% held through the state Treasury and 26.37% held through the Cassa depositi e prestiti. Another 39.40% of the shares are held by BNP Paribas.
MRC

MOSCOW (MRC) - Prices for Russian and imported polycarbonate (PC) increased in the Russian market, as per ICIS-MRC Price Report.

Imported PC has been steadily growing on the back of rouble devaluation. To a large extent this referred to Asian PC, as the dollar rates got stronger against the other currency. Foreign producers to not lose even more customers in Russia, have not raises their PC export prices. Nevertheless, buying interest to imported material has sharply weakened in all segments of the Russian PC market, except for the extrusion sector.

Domestic price for bottle PC granules was Rb180,000/tonne CPT Moscow, including VAT on average exchange rate of 54Rb=1USD. At the same time, PC prices in the Asian market in November and December softened on the back of price drop of Bisphenol A and a surplus of the polymer itself.

Deals for injection moulding PC granules have been done in the range of USD2,450-2,700/tonne CIF Hong Kong, excluding VAT. Extrusion PC prices were in the range of USD2,400-2,450/tonne CIF Taiwan, excluding VAT.
Domestic prices for imported PC for sheet extrusion were heard in the range of Rb145,000-150,000/tonne CPT Moscow, including VAT.

At the same time, the European market for a long time remained steady with prices kept at EUR2,200-2,300/tonne FD NWE, excluding VAT with the average exchange rate of 67Rb=1EUR.

December prices for Russian PC for sheet extrusion were heard in the range of Rb132,000-135,000/tonne CPT Moscow, including VAT, up Rb10/kg from the level in November.

The only Russian PC producer, Kazanorgsintez, explained the price rise by the higher production costs and weak margins. Some market players said they consider such a rise in prices amid low season as speculative and unreasonable. If this trend will continue, prices for Russian PC can reach and even exceed prices for imported PC in the high season - April - May. However, this can happen only if the rouble stabilises, which is unlikely.

At the moment, the PC market is characterised by the pent-up demand, as consumers expected prices to decrease in line with the strengthening of the national currency, improving macroeconomic situation in general. The next couple of months, the purchasing activity in the PC market is expected to be weak also because of the New Year holidays.
Along with these factors, many market participants reported a lack of available working capital and avoid investing in stocks that can become unprofitable if exchange rate suddenly changes.
MRC

MOSCOW (MRC) - Production of polypropylene (PP) in Russia increased to 938,800 tonne in In first eleven months of this year, up 21% year on year, compared to the same period of 2013. All Russian producers have increased their PP production volumes, the exception made two of them, according to MRC ScanPlast.

November PP production in the country decreased to 105,000 tonnes following the record high 109,600 in October. Total PP production in Russia reached 938,800 tonnes in January - November 2014, compared with 778,000 tonnes year on year. Four from the seven Russian PP producers increased their production volumes, but the main increase in the output showed Poliom and Tobolsk-Polymer on the back of increased capacity utilisation. Structure of PP production over the reported period was as follows.

Tobolsk-Polymer (SIBUR) slightly reduced its production rates in November, having produced 40,800 tonnes of PP. Total PP production at the plant was 235,200 tonnes in January-November of this year.

Poliom (Titan Group, Omsk) shut its PP production in late November because of the technical problems; in less than a month, the company produced 12,800 tonnes of PP, compared with 17,500 tonnes in October. The producer's PP output was 155,600 tonnes in the first eleven months of 2014, up 53% year on year.

PP production at Nizhnekamskneftekhim and Ufaorgsintez increased by 2% and 5% in January-November, reaching 194,900 tonnes and 111,600 tonnes respectively. It is also worth noting that Nizhnekamskneftekhim in the recent months almost three-fold reduced the output of homopolymer PP in favour of propylene copolymers.

Tomskneftekhim because of many factors, including the high level of capacity utilisation, kept its PP production at the last year level - 115,900 tonnes of PP in the first eleven months of this year.

Neftekhimia (Kapotnya), by contrast, reduced PP production in the current year for many reasons, including to long time shutdown for the turnaround in October - November. The producer's PP output in the first eleven months of the year reduced to 92,700 tonnes, down 17% year on year.

Stavrolen resumed PP production on 13, October, following long time emergency shutdown. The company increased its PP production in November to 9,400 tonnes, compared with 5,400 tonnes in October. Total PP production at Stavrolen was 32,900 tonnes in the first eleven months of the year.


MRC

MOSCOW (MRC) -- Asian polyethylene terephthalate (PET) importers reported a reduction in purchase prices of bottle grade PET in Asia this week. Export prices of Chinese plants fell to USD1,010-1,040/tonne FOB China, according to ICIS-MRC Price report.

Market players said they anticipate prices to fall below the psychological point of USD1,000/tonne FOB. Some traders said prices might decrease below USD1,000/tonne FOB in December, following lower feedstocks prices. In their turn, PTA producers in Asia were trying to maintain prices by reducing the capacity utilisation at their plants. At the same time, paraxylene prices continued to go down, following cuts in oil futures.

Buying activity of importers in the CIS market was low. PET prices have fallen by USD316/tonne since early 2014, down by almost 24%.

PET purchased in China at USD1,150-1,180/tonne FOB entered the CIS market in early December. The devaluation of the national currency led to higher prices in the domestic market in Russia and Ukraine, despite lower prices in dollars.

At the same time, PET prices went down in Kazakhstan. The exchange rate of the dollar against the tenge was stable, which led to lower purchase prices, following reductions in export prices.

MRC