JX Nippon Oil and Energy shut indefinitely olefins conversion unit in Japan

MOSCOW (MRC) -- Japan's JX Nippon Oil and Energy has shut its olefins conversion unit (OCU) in Kawasaki indefinitely, reported Apic-online.

A Polymerupdate source in Japan informed that the OCU was shut on January 6, 2015.

The shutdown has been attributed to compressed margins in the wake of low propylene prices as compared to prices of ethylene.

As MRC informed before, JX Nippon Oil and Energy plans to run its paraxylene (PX) plants at an average 80% of capacity over January-March 2015. JX Nippon cut the PX run rates over May-June 2014 to 50-60% of capacity due to thin PX/naphtha margins. It raised rates to 60% in the third quarter and to 75% in Q4 as margins improved amid falling crude oil.

JX has a total PX production capacity of 3.1 million mt/year - the biggest in Asia - across its plants in Kashima, Kawasaki, Mizushima and Oita in Japan as well as in South Korea's Ulsan under a joint venture with SK Global Chemical.
MRC

MOSCOW (MRC) - Imported prices of Asian bottle grade PET chips expectedly decreased in the CIS countries under the pressure of weak prices of feedstock. The price offers from Asian suppliers have decreased by USD50-70/tonne since the beginning of the year, according to ICIS-MRC Price Report.

Prices of Chinese PET with the freight to Novorossiysk will be USD965-1,000/tonne CIF, excluding VAT. Chinese PET in the port of Vostochny ranged at USD930-960/tonne CIF, excluding VAT.

Ukrainian companies reported prices for Chinese PET USD960-1,000/tonne CIF Odessa, excluding VAT on Monday.
Prices for Arab PET were heard earlier in the year at USD1,080/tonne CIF Odessa, excluding VAT. Consumers have not yet reported the prices for Middle Eastern PET.

Kazakh companies have reported prices for Asian PET in the range of USD1,110-1,150/tonne DAP, Kazakhstan border, excluding VAT. The downtrend of Asian prices will affect the decline in prices for Belarusian consumers.
This week imported prices are expected to decrease further.
MRC

MOSCOW (MRC) -- Imports of polyethylene (PE) into Kazakhstan decreased by 9% over the first eleven months of 2014. High density olyethylene (HDPE) showed a negative growth trend, whereas demand for other PE grades increased significantly, reported MRC analysts.

November PE imports to Kazakhstan dropped to 10,200 tonnes under the pressure of the seasonal factors to 10,900 tonnes a month earlier. The overall imports of ethylene polymers to the local market fell to 101,300 tonnes from January to November 2014 versus 110,000 tonnes over the same period of 2013. Demand for HDPE dropped by 17%, particularly, from local pipes producers, while demand for low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) increased.

The PE supply structure by grades looks the following way over the said period.

November HDPE imports decreased to 7,900 tonnes on the back of seasonal factors versus 8,700 tonnes in October. September accounted for the peak HDPE imports - 10,600 tonnes. Local PE pipes producers significantly reduced imports of material from Asia in November, whereas shipments from Russia remained at the level of October. The overall HDPE imports to Kazakhstan fell over the first eleven months of 2014 to 77,600 tonnes from 94,000 tonnes over the same period a year earlier.

November LDPE imports virtually remained at the level of October and totalled 1,700 tonnes. July and August accounted for the peak imports. The overall LDPE imports to Kazakhstan totalled 18,700 tonnes from January to November of 2014 versus 13,400 tonnes over the same period of 2013. Russian producers with a share of 93% in the total imports remained the key LDPE suppliers.

November LLDPE imports were just over 500 tonnes compared to 326,000 tonnes in October. The overall LLDPE imports to Kazakhstan exceeded 5,000 tonnes over the stated period, up by 31% year on year. Producers from South Korea and UzbekistanKey remained the key PE suppliers to the republic.

MRC

MOSCOW (MRC) -- A unit of Chinese car maker Guangzhou Automobile Group Co. is considering building its first foreign car plant in Russia despite political and currency troubles in that country, said the Wall Street Journal, citing a senior executive.

"When the situation is as such, there are opportunities," said Wu Song, director and general manager of GAC Motor Co., a division of Guangzhou Auto that produces the group’s own brand. "When there is stability, opportunity is gone." He said that a decision whether to build the plant will be made this year. The plant would begin with annual assembly of fewer than 50,000 cars to be assembled from kits.

Mr. Wu said the company also hopes to begin selling cars in the U.S. before the end of 2017. "Any later than that would be too late since the opportunity would be gone," he said. "My main goal is to make GAC Motor the very first, world-class Chinese auto brand," Mr. Wu said.

The company was already working to identify possible dealers and exploring safety and emission-related regulations needed to sell cars in the U.S. market, he said. Mr. Wu said he was confident GAC cars could meet such requirements since they were designed and developed with meeting international standards in mind.

He was speaking ahead of the North American International Auto Show in Detroit, which opens to media Monday. GAC Motor, which is the only Chinese auto maker exhibiting at the show, will hold the global launch of its GS4 sports-utility vehicle Monday.

State-owned Guangzhou Auto is China’s sixth largest car maker in terms of sales. According to Guangzhou Auto’s statement to the Shanghai Stock Exchange, the group sold 1.17 million vehicles last year, up 17% from a year earlier.

Guangzhou Auto’s car sales come primarily from those made with its foreign joint-venture partners, which include Toyota Motor Corp., Honda Motor Co., Mitsubishi Motors Corp. and Fiat Chrysler Automobiles. GAC Motor and its Trumpchi brand of sedans and sport-utility vehicles accounted for around 116,000 of the group’s total sales in 2014, Mr. Wu said.

GAC Motor is targeting sales of its own-brand cars of between 160,000 and 180,000 cars in 2015 and one million by 2020, according to Mr. Wu. He said the company introduced three new models last year and expects to launch two to three new models this year. The aim is to have a portfolio of 20 models by 2020, up from the current half dozen.
MRC

MOSCOW (MRC) -- Indorama Netherlands B.V., a 100%-owned subsidiary of Indorama Ventures Public Company Limited (IVL), has signed a share purchase agreement to acquire 100% equity stake of Polyplex Turkey from Polyplex Europa Polyester Film San. ve Tic. A.S, Turkey, a 100% owned subsidiary of Polyplex (Thailand) Pcl., and Polyplex (Asia) Pte Limited, Singapore, according to IVL's press release.

Polyplex Turkey owns a newly set-up greenfield PET plant with a planned capacity of 252,000 tons per annum located at Corlu, close to Istanbul, Turkey.

Following the acquisition of the 130,000 tons per annum Artenius Turkpet PET plant (now renamed Indorama Ventures Adana PET) in the second quarter of 2014, IVL will have a combined PET capacity in Turkey of 382,000 Mts. The plants will serve the growing markets of Turkey and South East Europe.

Under our European strategy, the acquisition will help to strengthen IVL's leadership in Greater Europe while broadening access not only to traditional North European markets but the emerging markets of South East Europe.

The value of the acquisition is not subject to disclose as per the regulation concerning the acquisition and disposal of assets of listed companies as prescribed by the regulation of the Stock Exchange of Thailand. The transaction is expected to be completed in the first quarter of 2015.

Indorama Ventures is a leading producer in the polyester value chain in Thailand with strong global network and manufacturing across Asia, Europe and North America. Its products serve major players in diversified end use markets, including food, beverages, personal and home care, health care, automotives, textile, and industrial. The company’s main products are PTA, PET and polyester fibre, which are distributed across the world.
MRC