PET imports to Belarus dropped by 14% in 2014

MOSCOW (MRC) -- Belarusian companies reduced imports of polyethylene terephthalate (PET) from foreign markets by 14% from January to December 2014 compared to the same period a year earlier, according to ICIS-MRC Price report.

Overall, 16,300 tonnes of PET were shipped to the market in 2014 versus 19,000 tonnes a year earlier. Converters reduced their import purchasing because of the general fall in demand in the market of finished products last year. The depreciation of the Belarusian rubel in December 2014 also had a negative impact on the purchasing power of local importers, which might result in lower imports in the first half of 2015.

At the same time, significant quantities of PET have been entering the Belarusian market from Russia. Russian plants announced their export prices for Belarusian companies in roubles. The devaluation of the Russian rouble partially offsets the depreciation of the Belarusian currency. Therefore, purchasing of Russian material is not expected to decline.
MRC

Royal DSM Q4 net loss widens

MOSCOW (MRC) -- Royal DSM, the Life Sciences and Materials Sciences company, reported its unaudited results for 2014, said the company in its press release.

DSM reported sales of EUR9,181 million, a 4% increase versus 2013. In line with market expectations, DSM reported EBITDA of EUR1,168 million compared to EUR1,261 million in 2013. The fourth quarter 2014 EBITDA was EUR288 million compared to EUR297 million in Q4 2013.

DSM’s fourth-quarter net loss widened to EUR107m last year from EUR77m in the corresponding period in 2013 amid negative exchange rate effects and poor market conditions for caprolactam. The company’s net sales rose by 1.71% year on year to EUR2.37bn in the fourth quarter while earnings before interest, tax, depreciation and amortisation (EBITDA) were up by 1.73% at EUR294m.

As MRC reported previously, Royal DSM reported a sharp decline in third-quarter net profit, despite strong performance in all segments. Looking ahead, the company said its full-year 2014 outlook is in line with current market expectations. For the third quarter, net profit decreased 21% to EUR93 million from EUR117 million last year. Net earnings per share was EUR0.51, down from EUR0.65 in the previous year.

Royal DSM is a global science-based company active in health, nutrition and materials. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials.
MRC

PP imports in Belarus increased by 1.4% in 2014

MOSCOW (MRC) -- Imports of polypropylene (PP) in Belarus exceeded 84,000 tonnes in 2014, up 1.4% year on year. Demand for propylene copolymers improved, whereas the need for a homopolymer PP decreased, according to MRC analysts.

According to the National Statistical Committee of the Republic of Belarus December PP imports in the country increased to 8,800, compared to 7,100 tonnes in November on the back of a higher PP supplies from Russia. Total PP imports in the country were 84,300 tonnes in 2014, compared with 83,100 tonnes year on year. A significant increase in demand (12.7%) occurred for propylene copolymers from the local converters, while the demand for a more mass product - homopolymer PP, on the contrary, decreased by 3%.

Structure of PP delivery over the reported period looked as follows. December imports of homopolymer PP in Belarus increased to 6,500 tonnes, compared with 5,100 tonnes in November because of improved supply from Russian producers. Imports of homopolymer PP in Belarus totalled 58,300 tonnes in 2014, compared with 60,000 in 2013.
Key suppliers of homopolymer PP in Belarus were Russian producers, their share for the period occurred for about 69%, second and third places shared producers from Poland and Germany.

December imports of propylene copolymers in the country increased to 2,300 tonnes, compared with 2,000 tonnes in November. Imports of propylene copolymers in Belarus exceeded 26,000 tonnes in 2014, up 12.7% year on year.
The main suppliers of propylene copolymers in the local market were producers from Germany with a share of about 50%, the share of Russian producers in this segment increased to 19%.
MRC

LG Chemical to shut EVA plant for maintenance turnaround

MOSCOW (MRC) -- South Korean petrochemical company LG Chemical is likely to shut its ethylene vinyl acetate (EVA) plant for maintenance turnaround, reported Apic-online.

A Polymerupdate source in South Korea informed that the plant is likely to be shut in end March 2015. It is likely to remain off-stream for around three weeks.

Located at Daesan in South Korea, the plant has a production capacity of 140,000 mt/year.

As MRC wrote before, LG Chem is in plans to shut its phenol-acetone plant in South Korea for maintenance turnaround in May 2015. It is likely to remain off-stream for around one month. Located at Daesan in South Korea, the plant has a phenol capacity of 300,000 mt/year and acetone capacity of 180,000 mt/year.

Besides, LG Chem restarted its bisphenol-A (BPA) plant in South Korea in late November 2014 after a maintenance turnaround. The plant was shut on October 26, 2014. Located in Yeosu, South Korea, the plant has a production capacity of 150,000 mt/year.

LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. According to ICIS report, it is 15th biggest chemical company in the world in 2011. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.
MRC

Zhejiang Satellite to shut PDH plant in China for maintenance

MOSCOW (MRC) -- Zhejiang Satellite Petrochemical is likely to shut its propane dehydrogenation (PDH) plant for maintenance turnaround, according to Apic-online.

A Polymerupdate source in China informed that the plant is likely to be shut this week. It is likely to remain off-stream for around one month.

Located in Zhejiang province, China, the plant has a propylene production capacity of 450,000 mt/year.

As MRC reported earlier, in December 2014, Honeywell's UOP announced that China had commissioned the first of 14 planned propylene production units, using technology from UOP to help close the global propylene supply and demand gap.

China’s Zhejiang Satellite Petrochemical Co. became the first Chinese producer to start production of propylene using UOP C3 Oleflex process technology, which efficiently produces propylene from propane.

Zhejiang Satellite Petrochemical is currently producing high-quality, on-spec product for acrylic acid and derivative production, according to UOP officials.

Traditionally, propylene is a byproduct of making ethylene. However, a shift in how ethylene is produced globally has meant less propylene byproduct is being produced, sparking investment in technology to create propylene from propane.
MRC