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

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

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

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

MOSCOW (MRC) - April contract price of propylene in Europe was agreed up by EUR55/tonne below the level of the March. However, most European producers have gone to a more significant increase of their export polypropylene (PP) prices for the CIS markets; the prices increase of PP at some producers exceeded the prices rise for monomer, according to ICIS-MRC Price Report.

Negotiations on the April price for European PP began on Tuesday, 31 March. Many market participants reported that they were faced with a serious reduction in export quotas at most European producers.

Some companies temporarily suspended their PP sales, and the rise in prices compared with the March level was EUR165-240/tonne. Negotiations on April homopolymer PP for CIS markets were discussed last week in the range of EUR1,180-1,280/tonne FCA, while a month earlier the deals were agreed in the range of EUR1,100-1,060/tonne FCA.

Many market participants reported that European producers were not able to fully satisfy the orders, there were companies which refrained from April purchases. Deals for PP block copolymers were agreed in the range of EUR1,260 - 1,320/tonne FCA. Negotiations on April PP random copolymers were done in the range of EUR1,300-1,350/tonne FCA. Thus, for two months (March - April), the European PP prices rose by EUR270-310/tonne.

Such a record rise in PP prices European producers explained by the shortage, resulted from the increase in the volume of exports (due to the reduction in price of the euro) and a serious decline in imports. Force majeure shutdowns at some productions in March further increased the deficit in the region.

Some market participants also added that the rise in prices of polypropylene was also caused by the wish of European producers to offset domestic prices with the world prices, because in the past few months due of the weak euro PP prices in the region were the lowest in comparison with other regions.
MRC