Crimean Titan raised prices of titanium dioxide by UAH14,500-16,000/tonne

MOSCOW (MRC) - Crimean Titan, the largest in the CIS countries producer of titanium dioxide, in February increased the price of the pigment of its own production by UAH14,500-16,000/tonne, including VAT, according to ICIS-MRC Price Report.

The reason for the price increase was the devaluation of the hryvnya. The producer adjusted its prices two times in February. Back in January, the company announced its price for large buyers at UAH28,500/tonne FCA Armiansk, including VAT, for the brand CRIMEA TiOx-220. The price offer for titanium dioxide under the brand CRIMEA TiOx-280 was at UAH29,000/tonne FCA Armiansk, including VAT.

Initially, prices were increased to UAH35,000/tonne FCA Armiansk, including VAT, for the brand CRIMEA TiOx-220.
Later in February, the company announced a new benchmark price. Because of the new wave of hryvnya devaluation, prices for Ukrainian customers increased to UAH43,000/tonne FCA Armiansk, including VAT, for the brand CRIMEA TiOx-220 and UAH45,000/tonne FCA Armiansk, including VAT, for the brand CRIMEA TiOx-280.

The new restrictions from NBU are intended to stabilise the hryvnya. Some market players in Ukraine expect that price for Crimean titanium dioxide will drop in the case of appreciation of the hryvnya, but it should not be expected prices to return to the previous level.
MRC

MOSCOW (MRC) - Imports of unmixed polyvinyl chloride (PVC) to Kazakhstan dropped to about 850 tonnes in January 2015, down five times compared with January 2014, according to MRC DataScope.

Peak of external supplies of unmixed PVC in Kazakhstan occurred for September 2014, after which PVC imports gradually began to decline.
In January this year, PVC imports in the country dropped to the level of 850 tonnes, while in January 2014 PVC imports were 4,300 tonnes, and in December 2014 - 1,200 tonnes. Such a serious decline in PVC imports in Kazakhstan is explained by a fall in demand for finished products from local producers and the complete cessation of further re-imports of resin in Russia.
Some local converters reported that in recent months the demand for their finished PVC products declined in times. Due to a serious devaluation of the rouble Russian goods are cheaper than Kazakh ones on average by 40%, with the greatest competition from Russian converters felt in the northern regions of Kazakhstan, bordering Russia.

The main suppliers of PVC in the local market were producers from China, with their share in January 2015 made 100%.
MRC

MOSCOW (MRC) -- Meghna Group of Bangladesh and PM Group of Thailand have joined hands to set up a polypropylene (PP) factory that will support packaging industries at home and abroad, reported GV.

The factory will be the first of its kind in Bangladesh as polypropylene consumers, including garment exporters, now meet their demand by imports.

PM Group will invest around USD 150 million, equivalent to around Tk 1,170 crore, to set up the plant at Meghnaghat in Narayanganj. Both sides signed a deal in Bangkok last week. However, the shareholding issue has not been finalised yet.

"Half of the products will be exported," Mostafa Kamal, chairman of Meghna Group, told The Daily Star.

Apparel exporters will be benefitted, as it will reduce costs of using biaxially-oriented polypropylene (BOPP).

Meghna Group has 32 companies. The local conglomerate has an annual turnover of USD 2 billion and asset worth USD 1 billion, while PM Group is a private firm valued at more than USD 2 billion.

Meghna wanted to sell all the products from the new factory in the local market, but PM Group wants to export half the products to enjoy the facility of generalised system of preferences (GSP) given to Bangladesh by the European Union.

We remind that, as MRC wrote previously, in November 2014, Union Minister of State for Petroleum and Natural Gas, Mr. Dharmendra Pradhan, laid the foundation of USD509.58 million (Rs.3150 Crore) polypropylene plant at IndianOil’s Paradip Refinery project complex. Addressing the gathering, Mr. Pradhan described the project as a dawn of new era for the industrial development.
MRC

MOSCOW (MRC) -- There are steps that plastics business owners can take to keep the mergers and acquisitions parade rolling into 2015, said Plasticsnews.

M&A pros Deborah Douglas and Rick Weil tackled this topic at the 2015 Plastics News Executive Forum, Feb. 4-6 in Lake Las Vegas. Douglas is managing director of the Douglas Group in St. Louis. Weil is managing director with Mesirow Financial in Chicago. "Private business owners do a great deal of good for this country," Douglas said. "They deserve to win, and that’s what we help them do."

She added that although selling a business "can be traumatic" for business owners, it can also create "tremendous opportunities." "There are more buyers than ever before," Douglas said. “But owners face a lot of trauma when they sell. We had one owner recently sell for USD32 million when he had an offer for USD35 million, because he thought the lower deal would be better for his people."

Weil cited a Deloitte survey that said almost half of mid-market firms — with annual sales between USD50 million and USD1 billion — said they were likely to buy another company in the next year. Mega deals of USD5 billion and up also could be returning to the industry, he added.

"There’s so much information out there — companies are asking who do we go after and how much are we willing to spend," he said. Douglas listed several characteristics that could enhance the value of a plastics firm, including strong gross margins, steady growth, patented products or processes and powerful second-tier management.

"Buyers want people with some kind of skill that the competition can’t match," she said. When seeking a buyer, it also helps to have customer contracts up to date and to have non-compete agreements in place with your employees. Possible detractions from making a deal include being dependent on a single customer, lack of a niche focus and a need for major equipment improvements, Douglas added.

Weil cited Novolex as an example of a recently successful plastics M&A deal. Chicago private equity firm Wind Point Capital assembled Novolex from plastics packaging firms Hilex Poly, Duro Bag, Fortune Plastics and Packaging Dynamics. "It’s remarkable to see what [Novolex] has put together and what they’re going to do in the next couple of years," he said.

MRC

MOSCOW (MRC) -- Ufaorgsintez, owned by United Petrochemical Company, has announced an adjustment in its contract polypropylene (PP) prices, whereas the plant's prices of low density polyethylene (LDPE) remained unchanged, according to ICIS-MRC Price report.

Company's customers said that, starting from 1 March, prices of injection moulding homopolymer of propylene (homopolymer PP) were reduced by Rb700/tonne from the level of mid-February, whereas prices of extrusion grade block copolymers of propylene (PP-block) grew by Rb2,000/tonne. At the same time, prices of extrusion grade statistical copolymer of propylene (PP-random) went up by Rb3,000/tonne.

LDPE prices for the production of general purpose films and shrinkable films remained unchanged compared with the level as of 15 February.

Ufaorgsintez OAO was founded in 1956 and is based in Ufa, Russia. Ufaorgsintez OAO manufactures organic synthesis products in Russia and Europe. Its products include ethylene, propylene, ethanol, cumol, ethyl benzol, phenol, acetone, copolymer rubber, polyolefines, polyvinyl chloride and polyethylene items, thinners, and dilutants. "United Petrochemical Company" (UPC) owns 87.76% of Ufaorgsintez's registered capital. Bashneft sold Ufaorgsintez's stake to UPC in May 2013.

According MRC ScanPlast, the overall plant's production of PE and PP totalled 8,700 tonnes and 10,800 tonnes, respectively, in January 2015.
MRC