European PP increased by EUR180-220/tonne for CIS markets in April

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

MOSCOW (MRC) -- Evonik Industries, a leading specialty chemicals manufacturer, is in plans to facilitate bulk production of composites, reported the company on its site.

Composites are made of extremely strong fibers embedded in a polymer (plastic). The polymer primarily determines the composite processing. Hybrid polymer systems are the heart of Evonik’s innovation - they combine good processability of thermoplastic polymers and good mechanical properties of thermosetting plastics.

But, the production of composites is still complex and costly. Since late 2014, Evonik demonstrates in pilot plants at its Marl site that the material concept of hybrid polymer systems can save time and costs in manufacturing composites. First potential customers have already received samples for testing. First hybrid polymer systems are expected to be ready for the market in 2018.

"Our technology will help to significantly reduce manufacturing costs for composites," says Chief Innovation Officer Ulrich Kusthardt with conviction, adding that "We want to contribute to leading the way to bulk production of composites." Evonik that already offers numerous innovative products for composites wants to continue strengthening its position in this growth market.

The company is aiming for sales in the lower triple-digit million euro range in the composites market in the medium term. For the market of carbon fiber-reinforced plastics alone, CCeV, a network of companies and research institutes in the fiber composites field, is expecting stabile annual growth of an average of 9 percent by 2020.

Composites are a key technology for lightweight design because of their ability to combine very good mechanical properties and low weight. Their processing properties are mainly determined by the polymer. Thermosetting plastics have very good mechanical properties but do require longer processing times compared to thermoplastic materials. But then again, thermoplastic polymers are easy to process, quick to reshape and to recycle, however, they rarely demonstrate the excellent mechanical properties of thermosetting plastics.

There is a reason for the very different properties: polymer chains in thermosetting plastics are crosslinked whereas in thermoplastics they are not. Switching between crosslink and no link is usually not possible because a chemical crosslinking process is irreversible.

However, this is exactly what Evonik achieved in cooperation with the Karlsruhe Institute of Technology in producing hybrid polymer systems. They are able to crosslink without using catalysts in a completely reversible process. Heating causes de-crosslinking and allows the system to be reshaped. During the cooling phase, the crosslink is created again and its shape becomes stabile.

A special Diels-Alder reaction causes this phenomenon where the crosslink is almost chemically switched on and off. Material properties are maintained even with repeated heating and cooling.

As MRC reported earlier, Essen-based Evonik Industries is making an investment in the double-digit-million euro range in a new research center at the Rheinfelden site.

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world. In fiscal 2014 more than 33,000 employees generated sales of around EUR12.9 billion and an operating profit (adjusted EBITDA) of about EUR1.9 billion.
MRC

MOSCOW (MRC) -- Royal DSM, the global Life Sciences and Materials Sciences company, today announces it has finalized the sale of DSM Synres to Standard Investment, said the company in its press release.

The divestment was announced on 17 December 2014.

DSM Synres produces solvent-borne alkyd and acrylic coating resins at its site in Hoek van Holland (Netherlands) for the global coatings, adhesives and graphic arts markets since 1947. DSM Synres realizes sales of approximately EUR50 million with around 80 employees.

Standard Investment, based in Amsterdam, is a hands-on private equity firm focused on small and medium-sized enterprises in the Netherlands and Belgium. Since its establishment in 2004, the firm has acquired a portfolio of 18 companies.

As MRC informed earlier, Royal DSM announced it has issued a EUR500 million 1.0% bond due 2025. The terms are laid down in the EUR4 billion Debt Issuance Program of Royal DSM, the final terms and the supplements thereto, which are available in the Investor Relations section.

Royal DSM is a global science-based company active in health, nutrition and materials. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials.
MRC

MOSCOW (MRC) -- Two Qatari companies agreed to pay about USD5 billion for a 49% stake in Shandong Dongming Petrochemical Group to help the Chinese business build an LNG receiving terminal and expand into retail gasoline sales, as per Hydrocarbonprocessing.

The investment by Hamad bin Suhaim Enterprises and Qatra for Investment and Development will pay for the construction of a receiving terminal for liquefied natural gas (LNG), with a capacity of 3 million tpy, and an LNG storage facility, Ibrahim El-Tinay, Qatra’s CEO, told reporters this week in the Qatari capital Doha.

Shandong Dongming will also use the money to built 1,000 gasoline filling stations in six provinces south of Beijing, he said.

"We hired a financial adviser and expect to close the deal before the end of the year," El-Tinay said, declining to identify the adviser. Shandong Dongming plans to select operators for the gas stations in the fourth quarter, he said.

Qatar, an OPEC member and the world’s biggest exporter of liquefied gas, has been expanding investments in China and Asia, where it already sells most of its oil and LNG.

The emirate and its sovereign wealth fund, the Qatar Investment Authority, plan to invest as much as USD20 billion in Asia by 2020. China is the world’s largest energy consumer.

As MRC informed before, in February 2015, Petronas LNG , a wholly-owned subsidiary of Petronas, awarded an engineering, procurement, construction and commissioning (EPCC) contract to JGC Corp. for the expansion of Petronas' LNG complex in Bintulu, Sarawak, Malaysia.
MRC

MOSCOW (MRC) -- BASF-YPC, a JV of BASF, the world's leading chemical company, has shut a naphtha cracker for maintenance turnaround, according to Apic-online.

A Polymerupdate source in China informed that the cracker was shut on April 1, 2015. It is likely to remain off-stream till May 18, 2015.

Located in Nanjing, China, the cracker has a production capacity of 740,000 mt/year.

As MRC wrote previously, BASF-YPC also took off-stream its low density polyethylene/ethylene vinyl acetate (LDPE/EVA) plant for maintenance turnaround. The plant was shut on April 1, 2015. The duration of the turnaround could not be ascertained. Located at Nanjing in Jiangsu province of China, it has a production capacity of 200,000 mt/year.

BASF is the largest diversified chemical company in the world and is headquartered in Ludwigshafen, Germany. BASF produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF had sales of about EUR74 billion in 2013 and over 112,000 employees as of the end of the year.
MRC