PP imports in Kazakhstan increased by 27%, PP exports grew by 27% in January-November 2014

MOSCOW (MRC) - Imports of polypropylene (PP) in Kazakhstan increased to 18,100 tonnes in the first eleven months of 2014, up 29% year on year. Due to the growth in production volumes export sales of the Kazakh PP increased by 29% to 19,700 tonnes over the reported period, according to MRC analysts.

November PP exports from Kazakhstan seasonally decreased to 2,000 tonnes, compared with 2,700 tonnes in October. Imports of PP in the country increased to 18,100 tonnes in January - November 2014, compared with 14,000 tonnes in the same time a year earlier. November exports of homopolymer PP in Kazakhstan were 1,600 tonnes, compared with 2,300 tonnes in October on the back of the lower demand from the producers of PP bags.

Imports of homopolymer PP in the country grew to 13,800 tonnes in the first eleven months of this year, compared with 9,200 tonnes year on year. November imports of propylene copolymers in the country decreased to 405 tonnes, compared with 420 tonnes in October. Imports of propylene copolymers in January-November 2014 decreased to 4,300 tonnes, compared with 4,900 tonnes year on year.

This year, a local producer of polypropylene - Neftekhim Ltd increased its production by reducing the time of scheduled shutdown. The producer launched in December a polypropylene granulation unit, whereas up to that time PP was produced in the form of powder. In November, due to the preparation for the launch of PP granulation unit exports of PP from Kazakhstan decreased to 715 tonnes compared to 2,100 tonnes in October. Exports of homopolymer PP from the country totalled 19,700 tonnes in January - November, up 27% year on year.
MRC

MOSCOW (MRC) -- Saudi Arabia’s National Petrochemical Industrial Company (Natpet) is in plans to shut a polypropylene (PP) plant for maintenance turnaround, as per Apic-online.

A Polymerupdate source in Saudi Arabia informed that the plant is likely to be shut on January 25, 2015. It is likely to remain off-stream for around one month.

Located at Yanbu in Saudi Arabia, the plant has a production capacity of 400,000 mt/year.

As MRC informed previously, Natpet restarted its PP plant in Yanbu with the capacity of 400,000 mt/year on 11 January, 2014. It was shut on January 4, 2014 owing to unplanned issues.

We also remind that this plant is producing a wide range of PP product mix of (homopolymers, random & heterophasic copolymers) that is suitable for a wide variety of applications. Natpet has acquired state of the art Spheripol process to produce polypropylene from LyondellBasell, which is the world leader in polypropylene technology.
MRC

MOSCOW (MRC) -- Global chemicals company Huntsman issued a statement today in response to inquiries regarding the business impact of lower priced oil, said Hydrocarbonprocessing.

From CEO Peter R. Huntsman: "In an environment where oil prices are sustainably low, Huntsman will emphatically be a beneficiary over the long term," he said. "Many of our raw materials are derived from the oil refining process.

"We expect our margins to improve as the cost of our raw materials decrease," Huntsman continued. "We also expect a meaningful working capital release which will help strengthen our balance sheet. Lower priced oil should provide more discretionary spending for consumers; approximately one third of our business is consumer oriented.

"We have a number of growth projects underway; I expect our business to improve throughout 2015."

Huntsman is a global manufacturer and marketer of differentiated chemicals with 2013 revenues of approximately USD13 billion, including the acquisition of Rockwood's performance additives and TiO2 businesses.

MRC

MOSCOW (MRC) -- Grupa Azoty has signed a contract with Uhde Inventa-Fischer of Germany under a project to construct a new Polyamide 6 Plant in Tarnow, as per the company's statement.

The contract is for the purchase of licences, process design and project equipment. The capex budget for the project totals PLN 320m. The project is scheduled for completion in December 2016 and will add 80,000 tonnes to Grupa Azoty’s annual polyamide production capacity.

Products from the new plant will meet most exacting global quality standards. The applied engineering and technical solutions will enable precise control of the production process and help achieve strong performance indicators.

"The project is important both in terms of its scale and strategic implications for Grupa Azoty. Its primary effect will be to extend the product chain and increase our output of engineering plastics that deliver better margins," commented Pawel Jarczewski, President of the Grupa Azoty Management Board. "Equally important is the fact that it is being launched within the Krakow Special Economic Zone, which is bound to bring us tangible economic benefits," Mr Jarczewski added.

The new investment in Tarnow means greater job security and improved working conditions for the current personnel of Grupa Azoty involved in the caprolactam manufacture process. Increased production of polyamide 6 in Tarnow will also create an opportunity for the development of new local plants operating as processors of plastics into specialised products.

In the next four years, Grupa Azoty will invest over PLN 904m in Tarnow alone. Apart from the PA plant, Grupa Azoty also plans to place in service a fertilizer granulation unit with a value of PLN 140m by the end of 2016. Other investment plans include upgrade of the unit for production of C-none from phenol, extension of the polyamide processing unit, and marketing a next-generation iron-chromium catalyst.

As MRC reported earlier, in December 2013, Grupa Lotos and Grupa Azoty signed an agreement on the future formation of a special purpose vehicle to conduct a comprehensive feasibility study on the construction of a new petrochemical complex, in the vicinity of both Lotos and Grupa Azoty's existing installations. The project’s value is estimated at approximately PLN 12bn, making it the largest investment in the Polish industrial sector in recent years.
MRC

MOSCOW (MRC) -- Mexican state-run oil giant Petroleos Mexicanos said Thursday it has requested permission from the U.S. Commerce Department to import light crude to Mexico from the U.S., with the aim of improving output at its Mexican refineries, said the Wall Street Journal.

The significant increase of light crude production in the U.S. presents an opportunity to mix that oil with Mexican heavy crude, and thus boost refining efficiency in Mexico, the company known as Pemex said.

Pemex anticipates that it could import up to 100,000 barrels a day of light crude and condensates under the proposal, which it calls a "swap."

America has a long-standing ban on exporting crude-oil pumped in the U.S., but the Commerce Department recently issued new rules clarifying that some ultralight oil can freely flow out of the country to foreign buyers. Dubbed condensate by the energy industry, this light oil no longer needs to be fully processed at a refinery before it is shipped out. Energy experts estimate that up to one million barrels of light oil pumped primarily in Texas is now eligible for export.

The Mexican company exported, on average, 803,000 barrels a day of heavy crude to the U.S. last year to be processed at refineries there that are equipped to handle heavy crude. Pemex said the proposal doesn’t imply a commitment to export additional crude to the U.S.

Pemex’s proposal would reduce transportation costs and improve refining margins, the company said, while maximizing the refining potential of facilities in both countries.

The proposal was presented to U.S. authorities in 2014 and discussions are ongoing, the company added.

After reaching record levels of crude exports in 2004 of around 1.8 million b/d, Pemex’s exports last year were just over 1.1 million b/d.

As MRC wrote before, Pemex and Exxon Mobil Corp signed a non-commercial agreement on Thursday to jointly explore potential upstream and downstream business opportunities. The agreement comes against the backdrop of the landmark constitutional reform, signed into law under Mexican President Enrique Pena Nieto last year, that ended Pemex's 75-year-old oil and gas monopoly.

Pemex, Mexican Petroleum, is a Mexican state-owned petroleum company. Pemex has a total asset worth of USD415.75 billion, and is the world's second largest non-publicly listed company by total market value, and Latin America's second largest enterprise by annual revenue as of 2009. Company produces such polymers, as polyethylene (PE), polypropylene (PP), polystyrene (PS).
MRC