Clariant in India announces acquisition of Lanxess black pigment preparations portfolio

MOSCOW (MRC) -- Clariant, a world leader in Specialty Chemicals, has announced that it has acquired the black pigment preparations portfolio of Lanxess, located at Nagda, Madhya Pradesh, reported the company on its site.

This product line of Lanxess manufactures black pigment preparations used for processing of viscose fibre, which goes in the manufacture of mainly viscose-based apparels, knitwear, towels, bed-linen, etc. With this acquisition, Clariant in India gains additional pigment preparation capacity to cater to a larger, wider customer base.

Commenting on the acquisition, Dr. Deepak Parikh, Vice-Chairman and Managing Director, Clariant Chemicals (India) Ltd said, "Over the last couple of years we have made significant strides in building a value proposition for our stakeholders by sharpening our business focus and increasing our footprint in India. This was achieved through organic resource optimisation and capitalising on inorganic value opportunities."

Sambit Roy, Regional Director – Marketing and Sales (Pigments), Clariant in India said, "The pigment preparations business has been the mainstay of our India operations and we continuously adapt product offerings to suit evolving customer needs. This acquisition is a strategic decision to expand distribution networks. We will upgrade technical services and provide state-of-the-art technology in order to generate high quality products to support our customers' business growth."

As MRC wrote before, 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.

Clariant in India has local pigment production activities at its Roha (Maharashtra) and Cuddalore (Tamil Nadu) sites. In the year 2014, Clariant invested in the expansion of its Roha pigments facility, thus strengthening its commitment to India.
MRC

Lotte Titan to shut LLDPE plant in Indonesia for maintenance

MOSCOW (MRC) -- Lotte Titan is in plans to shut its linear low density polyethylene (LLDPE) plant for a maintenance turnaround, as per Apic-online.

A Polymerupdate source in Indonesia informed that the plant is likely to be shut towards end-June 2015. The duration of the shutdown could not be ascertained.

Located in Merak, Indonesia, the plant has a production capacity of 450,000 mt/year.

As MRC wrote previously, in December 2014, KBR, Inc. received a licensing and engineering design services contract from Malaysia-based olefins and polyolefins provider, Lotte Chemical Titan Holding Sdn. Bhd. The scope of the contract requires KBR to extend its catalytic olefins technology to enhance the olefins production for Lotte Chemical Titan. The company’s catalytic olefins technology efficiently converts low-value olefinic, paraffinic or mixed streams to propylene and ethylene, which hold higher value in the market.

The Lotte Group currently has a presence in Indonesia via its subsidiary, Honam Petrochemicals, which acquired Malaysia’s polyolefin major Titan Chemicals in July 2010. Included in the acquisition was Titan’s Indonesian subsidiary - PT Titan Petrokimia Nusantara (TPN), which has a polyethylene (PE) production capacity of 450,000 tonnes/year
MRC

PC prices are expected to rise in Ukrainian market in April

MOSCOW (MRC) - Ukrainian importers and consumers are anticipating the increase in European polycarbonate (PC) prices in mid April, according to ICIS-MRC Price Report.

Traders said that one of the major PC suppliers in the Ukrainian market, Sabic Innovative Plastics, announced a seasonal rise in prices for all PC grades of EUR200-300/tonne, depending on the grade and type of product.
The increase is to take effect from 15, April.

One reason for the rise in prices was the desire to improve margins, which were previously weakened. Import duties for PC granules increased by 5% in Ukraine since the late February. This led to the fact that small converters had to change their procurement structure and look for more affordable polymeric material or use recycled materials.

Consumption of PC in Ukraine decreased to 365 tonnes in January-February 2015, down 20% year on year. Thus, the demand for unblended PC granules fell by 14% (up to 327 tonnes) over the reported period. It is unclear how the market will react to the price increase.

The shortage of working capital for the timely repayment of debts also puts pressure on the converters.
In any case, we can expect an increase in the price of the final product. Supply of PC granules for sheet extrusion are expected to be resumed in April because of seasonally stronger demand for finished product.

Some producers of injection moulding products in recent time have difficulties with deliveries to Russia. Given the rising cost of feedstock, energy, taxes, instability of the course in the Ukrainian PC market, there comes a difficult period.

MRC

April prices of European PVC rose by EUR110/tonne for CIS markets

MOSCOW (MRC) -- Negotiations over April prices of European polyvinyl chloride (PVC) for the CIS markets began last week. PVC prices for the CIS countries grew by EUR100-110/tonne, according to ICIS-MRC Price report.

The April contract price of ethylene in Europe was agreed by EUR55/tonne higher than in March, which led to a EUR27,5/tonne increase in PVC production costs. However, most European producers raised their export prices more significantly, citing strong demand from the domestic market and export quota restrictions.

Last week's negotiations over April shipments of suspension polyvinyl chloride (SPVC) to the CIS markets were held in the range of EUR780-840/tonne, FCA, while March deals were done in the range of EUR670-740/tonne FCA. Some companies said they were not able to fully meet their needs in material because of limited export quotas of European producers. Some producers confirmed the closure of only 60% of all their orders.

Some market participants also added the rise in PVC prices was also caused by the desire of European producers to equalize domestic prices with the world prices, as prices have been the lowest in the region recently because of the weak euro.
MRC

European producers raise April PE prices by EUR200/tonne for CIS countries

MOSCOW (MRC) -- The April contract price of ethylene in Europe was agreed by EUR55/tonne higher than in March. However, European producers announced an increase of an average of EUR200/tonne in export prices for the CIS markets on the back of tight supply of polyethylene (PE), according to ICIS-MRC Price report.

Negotiations over April prices of European PE for the CIS countries began on Tuesday. European producers announced a major increase in export PE prices this month on the back of a shortage in the domestic market, which was caused by a number of force majeure shutdowns at some plants and lower imports to the region. Given April prices, PE prices in Europe rose by EUR340-370/tonne over the two spring months.

Deals over April shipments of high density polyethylene (HDPE) were negotiated in the range of EUR1,300-1,360/tonne FCA, up by EUR200-220/tonne from March. At the same time, most market participants said HDPE shipments by many grades did not exceed 50% of the declared for purchasing quantities this month. Some companies were even refused from April supplies.

A similar situation was seen in the low density polyethylene (LDPE) market, deals were negotiated in the range of EUR1,330-1,380/tonne FCA, up by EUR200/tonne from March. Prices of metallocene linear low density polyethylene (LLDPE) rose to EUR1,460-1,510/tonne FCA this month. PE supply was also tight with most producers.

Local producers explained such a significant increase in PE prices in Europe by a shortage, which was caused by higher exports (due to the euro weakening) and a slump in imports. Force majeure outages at some plants in March further increased the deficit in the region.

Some market participants also added the PE price rise was also caused by the desire of European producers to equalize domestic prices with the world prices, as prices of ethylene polymers have been the lowest in the region recently because of the weak euro.
MRC