Russian plasticizers market recovered in March

MOSCOW (MRC) -- March brought the improvement of the situation in the Russian plasticizers market after the February deficit caused by the conflict between the supplier of material and producers of dioctyl phthalate (DOP). At the same time, DOP prices remained quite high, according to MRC Price Report.

In February, the conflict between the supplier of 2-ethylhexanol (2-EG, which is one of the two basic feedstocks for the DOP production) and plasticizer producers led to a significant reduction in the plasticizer production and, consequently, resulted in a shortage in the Russian market. Th involved parties had managed to come to an agreement by March. DOP production increased significantly, the market has been gradually saturated with the material, however, this factor did not affect prices.

Back in early March, the price dispersion in the Russian DOP plasticizer market was wide enough, and prices were in the range of Rb102,000-125,000/tonne FCA, including VAT. This significant price spread was caused by insufficient supply of plasticizer in the market. But the market situation began to improve gradually by the middle of the month, and the price range began to contract gradually.

Some market participants said needs of large and medium-sized DOP consumers have been met so far, but by the end of the month the turn will come to small companies. At the same time, despite the saturation of the market demand, prices of Russian plasticizer will remain at Rb102,000-110,000/tonne FCA, including VAT until the end of the month.
MRC

Domestic PVC prices continue to increase in Russian market

MOSCOW (MRC) - Stronger demand for suspension polyvinyl chloride (SPVC) from the Russian converters continues to contribute to the price rise. Some Russian producers have reported another increase in prices, according to ICIS-MRC Price Report.

Devaluation of the rouble in December and the growth of domestic production (RusVinyl was launched in September) made PVC imports in Russia expensive. Local converters in the last few months completely shifted to the purchase of feedstock at domestic producers.

At the same time, stronger demand and the shortage of imported material have a significant impact on prices.
Given these facts some producers announced a further increase in the price of polyvinyl chloride (PVC) of Rb2,000/tonne, compared with the level at the beginning of March.

The negotiation on March contracts for Russian PVC began in the last week of February. Local producers managed to price rise to Rb57,500-60,000/tonne CPT Moscow, including VAT, up Rb4,000/tonne compared with the level in February.

However, some producers said that demand in March has increased significantly compared to the winter months, and now converters' orders significantly exceed the production capacity of the producers. Comes to the fact that the deals are done for the resin, which is not produced yet.

Last week Bashkir Soda Company and Kaustik Volgograd announced a further increase in the March contract prices of SPVC. SPVC prices have risen on average by Rb2,000/tonne, compared with the level at the beginning of the month, the deals are done in the range of Rb60,000-61,500/tonne CPT Moscow, including VAT provided full advance payment. The deals for the resin under 30-days deferred payment were on average up by Rb1,000/tonne.

Converters reported that they had to accept further price increase because of the imports shortage. Even with the reduction in export PVC prices in China, the cost for acetylene PVC with the delivery to the central regions exceeds Rb67,000/tonne, including VAT.

At the same time, companies said that because of the low demand and strong competition prices for finished PVC goods increased not proportionally to the price of the feedstock. At the moment, many converters work at a loss.
MRC

Clariant inaugurates packaging facility in southeast China

MOSCOW (MRC) -- Clariant, a world leader in Specialty Chemicals, has announced the inauguration of a new manufacturing facility, acquired through their recent acquisition of healthcare packaging company VitaPac, reported the company on its site.

The Dongguan plant, located in Guangdong province in southeast China, will enhance Clariant's existing portfolio of controlled atmosphere packaging solutions.

Under Clariant Business Unit Masterbatches, the Dongguan plant specializes in the manufacture of a full range of high quality desiccant packets primarily for customers in the pharmaceutical, nutraceutical and food industries but also for a range of complementary active packaging products.

This plant will join Clariant's existing global manufacturing sites for healthcare packaging in Changshu (Jiangsu, China), Belen (New Mexico, USA), Romorantin (France) and Kings Park (Australia).

"By enlarging our global footprint we can be closer to our customers in the Asia Pacific region while simultaneously offering a wider range of products to the global market," said Andy Walti, Head of Clariant Healthcare Packaging. He further confirmed that "by having another large base for packet production, we will successfully support the market's need for business continuity."

Clariant currently has production facilities and sales offices in 19 major Chinese cities with a workforce of around 1,500 employees.

As MRC wrote previously, in April 2014, Clariant Chemicals (India ) Ltd., an affiliate of Clariant AG announced the successful closure of the acquisition of Plastichemix Industries - a Gujarat based masterbatches business in India, with production facilities at Rania, Kalol and Nandesari.

Earlier, in mid-2013, Clariant and Tasnee, one of the largest industrial conglomerates in Saudi Arabia, announced the signing of an agreement to establish a masterbatches joint venture in Saudi Arabia.

Clariant Chemicals (India) Limited and custom color and additive products with production of more than 10,000 color matches which are completed each year. With more than 50 manufacturing plants around the world, Clariant
Masterbatches products, technology and service deliver competitive advantages that foster long-term customer relationships.
MRC

Trinseo Automotive to introduce ENLITE line of polymers

MOSCOW (MRC) -- Trinseo (formerly known as Styron), the global materials company and manufacturer of plastic, latex and rubber, launches ENLITE line of structural polymers targeted at semi-structural applications, and a new commitment to innovative solutions in lightweight technologies for external and internal automotive parts, said the producer on its site.

"Trinseo’s team at its Application Engineering and Design Centre collaborates closely with our customers from the design stage onwards on current and future challenges in the automotive industry by offering a complete range of resins for lightweight technologies," said Anis Tebib, Marketing Manager for Trinseo Automotive. "Our fully integrated team ensures a regular cycle of innovation, bringing a multi-dimensional, dynamic approach to ensure part optimization. ENLITE Structural Polymers are the result of a clear focus in research and development on structural polymers for semi-structural applications in cars."

Specifically, Trinseo Automotive will focus on two lines for semi-structural applications, ENLITE Long Glass Fiber Polypropylene (LGF-PP) and ENLITE Glass Fiber (GF) Alloys. These are the first of many glass fiber products from Trinseo, providing automotive manufacturers with a broad range of solutions for the challenges they face.

ENLITE Structural Polymers use technologies that can replace existing materials such as steel and aluminum with lighter, globally available, cost-efficient solutions. Trinseo Automotive is exploring further solutions to offer automotive manufacturers a broad range of ENLITE products and global semi-structural solutions in the near future and for years to come.

As MRC wrote before, Trinseo had completed the name change process for most legal entities around the world. Some Styron companies are still completing this process and will continue to do business as Styron until their respective name changes are complete.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo’s technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015.
MRC

Grangemouth operator Ineos begins fracking consultation

MOSCOW (MRC) -- Ineos, operator of the Grangemouth petrochemical plant, has started a community consultation process to try to win support for fracking, said BBC.

The development of unconventional gas extraction has been halted by a Scottish government moratorium. Ineos said it was unconcerned about the moratorium and a spokesman promised to drink "a lot of tea in a lot of village halls" to try to win the argument. Shale gas extraction is opposed by environmental campaigners.

Friends of the Earth said Ineos had the budget for "a long and dirty fight", while community and campaign groups could only fight their corner "on a shoestring". The first local consultation meeting has been scheduled for Denny, near Stirling, on 16 April. Other towns in the first phase of meetings include Alloa, Falkirk, Kilsyth, Bishopbriggs and Cumbernauld.

Ineos has bought licences for shale gas exploration across 700 square miles (1,126 sq km) of land in central Scotland but the government moratorium has left a question mark over the future of the industry locally. Ineos said its shale gas information programme would highlight both the issues and benefits of shale gas extraction as well as making the company available to answer questions about its plans for production in Scotland and elsewhere.

Ineos Upstream CEO Gary Haywood said: "The Scottish government wants the public to be fully informed about shale gas production and we are determined to help. "We are launching Scotland's biggest shale gas information programme to make sure that local communities get a chance to hear the facts rather than the myths about shale gas."

The company said as many meetings as possible would be led by its director Tom Pickering. A number of campaign groups oppose fracking.

Mary Church, head of campaigns for Friends of the Earth Scotland, said: "Fracking is a dangerous, dirty industry and all the money in the world can't hide that.

As MRC informed before, Ineos announced a deal to acquire a 50% interest in seven IGas shale gas licences in the North West of England (the Bowland licences). This consists of a 60% interest in three Petroleum Exploration & Development Licences (PEDL’s 145, 193 and EXL273) and a 50% interest in a further four licences (PEDL’s 147, 184, 189 and 190). In Scotland, Ineos will acquire IGas’ entire interest in PEDL 133 (the Grangemouth licence) which will give the company 100% ownership of this asset. In addition, Ineos has the option to acquire 20% in two IGas East Midland shale gas licences (PEDL’s 012 and 200).

Ineos Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.
MRC