Sibur agrees credit line for EUR1.6 bln with European banks

MOSCOW (MRC) -- Russian petrochemical firm Sibur said on Wednesday it had agreed a credit line for EUR 1.6 bln (USD1.7 bln) with a consortium of European banks, said Reuters.

The agreement was signed in December 2014, it added in its financial report for last year. The long-term financing will be used to cover part of capital expenditures related to Sibur's ZapSib-2 investment project.

As MRC informed before, SIBUR launched construction of ZapSibNeftekhim,a facility for deep hydrocarbon to polyolefin processing, on 17 February 2015.

ZapSibNeftekhim's project is designed to operate a steam cracker (by Linde AG, Germany) with a capacity of 1.5 mtpa of ethylene, around 500 ktpa of propylene and 100 ktpa of butane-butylene fraction (BBF), along with units with a total capacity to produce 1.5 mtpa of various grades of polyethylene (by INEOS, UK) and a polypropylene unit of 500 ktpa (by LyondellBasell, Netherlands).

SIBUR is a vertically integrated gas processing and petrochemicals company. SIBUR owns and operates Russia’s largest gas processing business in terms of associated petroleum gas processing volumes and is a leader in the Russian petrochemicals industry. SIBUR operates 26 production sites in various regions of Russia. The Group employs 26,000 people. The Company sells its products to over 1,400 major customers engaged in the energy, automotive, construction, fast moving consumer goods (FMCG), chemical and other industries in approximately 70 countries worldwide.
MRC

MOSCOW (MRC) -- Russian companies have reduced purchasing of imported acrylonitrile-butadiene-styrene (ABS) over the first two months 2015 by 23% year on year. The overall imports totalled 3,770 tonnes over the stated period, according to ICIS-MRC DataScope report.

Over 2,000 tonnes of imported ABS entered the market this February. LG Chem was traditionally the leader in the supply structure. Imports of Korean ABS of LG Chem totalled 945 tonnes in February. Styrolution was the leader among European suppliers, its imports rose to almost 300 tonnes in February.

In general, lower imports in January and February were caused by both weaker demand from finished products producers and by increased ABS production by Russian producers. According to MRC ScanPlast report, Russian plants producerd 4,410 tonnes of ABS in January, up by half year on year

The estimated ABS consumption in Russia dropped in 2014 by 10% from 2013. The overall capacity of the Russian ABS market totalled 47,600 tonnes in 2014. To date, ABS is produced in Russia by Nizhnekamskneftekhim and Plastik (Uzlovaya).

MRC

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

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

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