Technical problems at Kazanorgsintez led to HDPE price rise in Russia

Moscow (MRC) - Temporary problems in the production of high density polyethylene (HDPE) have led to a price rise in the Russian spot market last week, as per ICIS-MRC Price Report.

The Russian market HDPE have been waiting for the resumption of the production at Stavrolen all March. Many market participants thought that the growth in production volumes and increased competition between local producers would lead to price cuts.

However, Stavrolen has not resumed its work yet , and the technical problems at Kazanorgsintez, which that led to a decrease in capacity utilisation and temporarily suspension of HDPE shipments into the domestic market last week, caused a stir in the market. By the end of the week PE prices increased in the spot market.

Kazanorgsintez is the largest producer of HDPE in Russia and given the shutdown of Stavrolen problems at the Kazan company have a major impact on the spot market. Amid low stocks of HDPE at the traders' warehouses and the oncoming restrictions on trucks movement of federal roads, the spot market was quite nervous reacted at the suspension of HDPE shipments from Kazanorgsintez.

The most critical situation was in the market blow moulding HDPE, where Kazanorgsintez is single supplier in the Russian market so far. Spot prices for blow moulding HDPE last week started from Rb86,000/tonne FCA Kazan, including VAT, but by Friday, some companies have raised prices up to Rb92,000/tonne FCA Kazan, including VAT.

Market of film HDPW was more quite because of the availability of the offers from other producers, in particular, from Nizhnekamskneftekhim. Prices fro film HDPE in the late week grew to Rb87,500/tonne FCA, including VAT.

Prices for injection moulding HDPE was not affected by the situation with Kazanorgsintez. Traders have sufficient stocks, besides Gazprom neftekhim Salavat is expected to resume injection moulding HDPE supply in the second decade of April.
MRC

Taiyo Petrochemical to shut SM plant in Japan for maintenance

MOSCOW (MRC) -- Taiyo Petrochemical is likely to shut its styrene monomer (SM) plant for maintenance turnaround, reported Apic-online.

A Polymerupdate source in Japan informed that the plant was is likely to be taken off-stream in October 2015. It is expected to remain shut for around one month.

Located at Ube in Japan, the plant has a production capacity of 370,000 mt/year.

As MRC wrote previously, Idemitsu Kosan, one of Japan’s largest refining and petrochemical companies, is in plans to shut its SM plant for maintenance turnaround in April 2014. It will remain off-stream for around one month. Located in Chiba, Japan, the plant has a production capacity of 210,000 mt/year.

Another major Asian petrochemical producer Samsung Total shut down its No.1 SM plant for maintenance turnaround in March 2014. It is likely to remain off-stream for around one month. Located in Daesan, South Korea, the No.1 SM plant has a production capacity of 650,000 mt/year.
MRC

Plastic GBP5 notes are going into circulation in Britain for the first time

MOSCOW (MRC) -- Two million GBP5 notes made of polymer plastic are being released by The Clydesdale Bank this month as a safer and more durable alternative to paper banknotes, reported The Independent.

The limited edition notes are going into the system a year before the Bank of England issues its first set of plastic banknotes for general circulation.

Its design celebrates the 125th anniversary of the Forth Bridge, and its nomination for inclusion in Unesco’s World Heritage List 2014, with a portrait of the engineer Sir William Arrol.

The polymer bank note is smaller than its paper equivalent. Clydesdale’s version uses a ‘Spark Orbital’ security feature: a special ink in the shape of Scotland over a transparent window, which changes colour as the note is moved and tilted.

Plastic bank notes fit in cash machines like paper ones, but they are considerably more durable and should last 2.5 times longer.

As MRC informed previously, The Bank of England announced on 18 December, 2013 that the next GBP5 and GBP10 banknotes will be made of plastic rather than the current cotton paper. The polymer notes will retain "the familiar look of Bank of England banknotes", including the portrait the Queen and a historical character.

The bank’s decision follows a three-year research program, which concluded that plastic notes are cleaner, more durable and more secure than their paper counterparts. There has also been an "overwhelmingly supportive" response from the public.
MRC

LG Chem took its PP plant in South Korea off-stream

MOSCOW (MRC) -- South Korean petrochemical major LG Chemical has shut a polypropylene (PP) plant for maintenance turnaround, reported Apic-online.

A Polymerupdate source in South Korea informed that the plant shut over last weekend. It is likely to remain off-stream for around one month.

Located at Daesan in South Korea, the plant has a production capacity of 600,000 mt/year.

As MRC wrote before, LG Chem is in plans to shut a styrene monomer (SM) plant in South Korea for maintenance turnaround in April 2015. It is likely to remain off-stream for around one month. Located at Daesan in South Korea, the plant has a production capacity of 500,000 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

Swiss Sika acquires Construction Technologies Australia

MOSCOW (MRC) -- Sika has agreed to acquire Construction Technologies Australia Pty Ltd (CTA), one of the leading suppliers of tile adhesives and associated mortar products in Australia, said the producer in its press release.

CTA generated sales of CHF 22 million in 2014 and has 51 employees. The CTA plants bring Sika’s mortar footprint to 79 factories worldwide. Over the past couple of years CTA has experienced dynamic growth and has established itself as a key supplier to pro dealers with a wide product range comprising tile adhesives and associated mortar solutions.

By acquiring CTA, Sika will extend its manufacturing footprint and considerably leverage its core technology powders/mortars to become a leading supplier in Australia of surface preparation, adhesive and waterproofing products for tiling applications. Furthermore, the CTA range of products will give Sika the opportunity to increase its business in new and existing distribution channels and will provide excellent cross selling opportunities.

Distribution of CTA's products in New Zealand will transfer to Sika (NZ) Ltd. Managing Director Troy Hogan, and other key members of the CTA team, will stay on with Sika to drive the continued success of the business. The acquisition represents a further step in the expansion of Sika's mortar business. With 31% growth in 2014, mortar is Sika's strongest growing product area as well as one of the key elements of the Strategy 2018.

Heinz Gisel, Head of region Asia/Pacific: "With the acquisition of CTA we will expand and complement our mortar range in Australia as well as gain access to new market channels. We welcome the new employees on board and look forward to developing the business together."

As MRC informed earlier, A Swiss court has ruled that Sika AG isn't required to hold an extraordinary general meeting requested by its founding family, giving the chemical company a small victory in its struggle to avoid a hostile takeover by French construction giant Saint-Gobain SA.

Sika is a specialty chemicals company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing and protecting in the building sector and the motor vehicle industry. Sika has subsidiaries in 90 countries around the world and manufactures in over 160 factories. Its more than 16,000 employees generated annual sales of CHF 5.6 billion in 2014.
MRC