PET imports in Russia grew by 52% in Q1 2015

MOSCOW (MRC) -- Imports of polyethylene terephthalate (PET) into the Russian market increased in the first quarter 2016 by 52% year on year, totalling 22,780 tonnes. All PET grades accounted for the increase in shipments, according to ICIS-MRC Price report.


PET chips, which are used for the production of bottles and partially films, traditionally account for the main share in the structure of imports. PET imports rose in January-March 2016 by 38% year on year, totalling 18,600 tonnes. Such a major increase was caused by the March figure. In March, imports of PET chips by Russian companies were almost 13,000 tonnes. Higher import purchasing was caused by a shortage of material in the domestic market, as well as by the companies' desire to build up inventories in anticipation of a rise in PET prices in Asia.

In particular, converters had difficulties with spot quantities in February. The Belarusian plant Mogilevkhimvolokno did not make shipments to the Russian domestic market. Russian producers of PET chips reported a shortage in the spot market. Covering the contractual obligations, companies refused some customers in the procurement.

The price factor also affected the purchasing volumes. The strengthening of the rouble at the beginning of the year led to a reduction in prices of imported PET, about which importers said in late February. At the same time, in early February, PET prices in Asia began to show an upward trend (due to rising prices of paraxylene at Asian refineries and higher prices of PTA), which was a good time for purchasing before the start of the season.

Such a sudden inflow of imports in March and the launch of PET production in Belarus might lead to excessive supply in the second half of April and weaker demand for Russian PET, some market players said.

The central part of Russia and companies in the West Siberian region accounted for the main shipments of bottle grade PET.

Deliveries of recycled PET surged by 53% in the first quarter. Total imports of PET flakes were 2,160 tonnes.

Importers were actively importing amorphous PET in the first quarter. Overall imports of amorphous PET totalled 1,900 tonnes in January-March 2016.

MRC

Thermoplastic composites market worth USD9.9 bln by 2020

MOSCOW (MRC) -- Global thermoplastic composites end product market is expected to reach at USD9.9 bln in 2020 at a CAGR of 6.5% over the period of 2015 to 2020, as per Plastemart with reference to Markets and Markets.

Thermoplastic composites market can be classified as continuous and discontinuous composite. The widely used thermoplastic composites are LFT, SFT, and GMT. Enhancement in product performance by innovation and lower overall cost for consumers is expected to further drive the market. The biggest challenge in the industry is relatively higher cost of materials compared to competing materials. Further market development is expected to depend upon material availability at reasonable prices.

Thermoplastic composites have gained rapid acceptance as a viable alternative to die castings, metal assemblies, and traditional plastic materials in the markets, including industrial equipment, automotive, consumer goods, and so on. High impact strength, better surface quality, less product rejection, high rigidity at elevated and sub-zero temperature, creep resistance under severe environments and constant load have made thermoplastic market more lucrative than the thermoset and metals. A price-to-performance advantage has made thermoplastic composite more attractive in aerospace & defense, transportation, electrical & electronics industries.

Due to rapid industrialization and economic upturn in countries like India, Brazil, China, the demand for thermoplastic composites is increasing due to high demand from transportation, consumer goods, and electrical & electronics industry. The application of thermoplastic composites are growing at a significant rate in transportation, electrical & electronics, consumer goods and aerospace & defense industries in emerging nations due to rapid urbanization and growth in middle and upper middle class population.

Asia-Pacific is expected to register the highest growth rate in the next five years due to the growing economies of China, India, and other countries which would result in increased demand for thermoplastic composites. Increase in demand from automobiles, aerospace and electric & electronics are the major drivers responsible for the growth of composites market throughout the globe. China is expected to drive Asia-Pacific’s thermoplastic composites market in the coming five years. China’s thermoplastic composites market has witnessed growth due to robustly growing manufacturing sector in the country. India offers huge scope and opportunities for the growth of thermoplastic composites due to rapid growth in middle class population and industrialization in the country. In 2014, the transportation applications dominated the overall thermoplastic composites market size.

The demand for thermoplastic composites from transportation and aerospace & defense industry is expected to increase in next five years, due to the increasing penetration of thermoplastic composites into commercial aircraft, such as the Gulfstream Aerospace G650, Airbus A320 commercial jet, and the Airbus A350 XWB. As fuel costs increase, the demand for lightweight composites is being driven primarily by an increasing emphasis upon fuel efficiency but cost performance, will be demanded by the aerospace industry to achieve sustainable development. The primary benefits that thermoplastic composites offer are reduced weight and greater assembly simplification as compared to the traditional materials for aircraft construction such as steel, aluminum, and titanium. As automakers in the U.S. work to meet Corporate Average Fuel Efficiency (CAFE) standards of 36.6 mpg by 2017 and 54.5 mpg by 2025, vehicle weight reduction has become a major strategy.

The use of thermoplastic composites in automobiles can help the manufacturers to achieve the target with improved mileage. An increase in the use of thermoplastic composite materials in racing and high-performance vehicle components, such as chassis, hoods, wheels and roofs, is one of the driving factors for the increase in thermoplastic composites penetration in the transportation industry. Very fast part forming cycle time and high impact strength are boosting the penetration of thermoplastic in these applications.

We remind that, as MRC wrote before, in May 2015, Hanwha Azdel, Inc. announced that growing demand for lightweight composites in North America and Europe has prompted the company to increase capacity for its Azdel SuperLite lightweight reinforced thermoplastic (LWRT) composite product at its Lynchburg, Va. production facility.
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Global synthetic TPU films market likely to register CAGR of over 5% up to 2023

MOSCOW (MRC) -- The Global synthetic (thermoplastic polyurethane) TPU films market size was estimated at over 47 kilo tons in 2015 and is likely to grow with a CAGR of more than 5% up to 2023. TPU film market revenue is likely to be valued at more than USD750 mln by 2023, as per Plastemart with reference to Global Market Insights.

Automotive applications dominated and accounted for more than 24% of the total demand in 2013. Aerospace applications are likely to witness high gains, at an estimated CAGR of over 6.5% up to 2023.

Asia Pacific was the dominant region and accounted for over 34% of the total demand in 2013. China & India TPU films market were the leading consumers in Asia Pacific together accounting for over 60% of the total demand in 2015. Europe and North America are likely to witness moderate gains and they accounted for over 19% and 27% respectively in 2015. Japanese TPU films market was estimated at more than 3.5 kilo tons in 2015.

Increasing awareness of light weight material demand in automobile applications in order to increase fuel efficiency and reduce carbon emissions is likely to drive TPU films market growth. They are used in automobile component manufacturing which helps in reducing the weight of the vehicle (by almost 40%). Also, they are used for substituting rubber components in vehicles. They are used for automobile applications such as door & acoustic panels, Instrument & anti-vibration panels, seats and airbags. Replacement or after sales market are expected to become an important focal point for TPU films demand in automobile industry. Pricing plays an important role in the market with consumers being price sensitive. TPU films market price trend is relatively higher by 25% to 35% in Europe and North America in comparison to prices in Asia Pacific.

Growing construction spending in emerging economies of Asia Pacific is likely to drive demand. Asia Pacific dominated the construction spending and accounted for 40% of the global revenue spending in 2012. Increasing application scope in solar & wind power installation systems is likely to drive Thermoplastic polyurethane films market. These films offer surface protection for windmill blades and solar panels. Growth in aviation sector coupled with continuous technological advancements is likely to drive demand. They are involved in aerospace applications such as seat cushions, armrest surfaces, wire & cable jacketing, masks and interior panels.

Volatile polyols and MDI price, due to fluctuation in propylene & aniline prices are likely to affect industry profitability. Also, stringent environmental regulations against use of hazardous raw materials are likely to pose challenge to industry participants. Companies are investing to develop the bio-based TPU films market which are likely to offset volatile pricing derived from crude oil and would also help in reducing carbon footprints. Companies such as Arkema, DuPont, PolyOne and Merquinsa have set sights bio TPU film market development.

Covestro (formerly Bayer MaterialScience) and Reverdia (joint venture of DSM and Roquette Freres) recently announced to enter into an agreement to jointly develop & promote thermoplastic polyurethane based on renewable feedstock. Covestro will use s Biosuccinium succinic acid from Reverdia to manufacture its Desmopan brand thermoplastic polyurethane used for applications such as consumer electronics and footwear. This strategy is expected to help Covestro venturing into biopolymers market and the company plans to expand its industrial setup in Taiwan for increasing its regional presence.

Growth in per-capita middle class consumer income coupled with government initiatives to bring in FDI particularly in countries such as India and China is likely to drive regional demand. Growth of automobile industry in countries such as Thailand and Indonesia is also anticipated to drive regional growth. North America is likely to witness moderate growth owing to post recession recovery in construction & automobile industries coupled with increase in consumer spending capacity.

Global TPU films market share is fragmented with top four companies catering to over 40% of the total demand in 2013. Presence of large number of domestic manufactures & suppliers mainly in China is responsible for high fragmented market.

As MRC informed previously, the global TPU films market size is likely to be valued at USD724.6 mln by 2020; as per a report of Radiant Insights, Inc. Global TPU films market size was estimated 46.7 kilo tons in 2013 and may register 68.03 kilo tons by 2020 growing with an estimated CAGR of 5.5% from 2014 to 2020.
MRC

Ineos Europe and Rex Energy in new shale gas sale and purchase agreement

MOSCOW (MRC) -- Ineos Europe and Rex Energy Corp. said that they have concluded a new natural gas liquids (NGLs) sale and purchase agreement covering ethane, propane and butane, said the company on its site.

The NGLs will be transported through the Mariner East infrastructure and exported by sea to Ineos's European cracker complexes. Transportation of ethane supplies commenced in April 2016 while propane and butane supplies will start with the completion of Mariner East 2 pipeline in 2017.

"This contract adds to our supply portfolio providing for long-term sourcing of advantageously priced US natural gas liquids for our European crackers. We are excited about our new business relationship with Rex Energy and look forward to future opportunities between our companies," said David Thompson, CEO of INEOS Trading and Shipping.

"We are excited to begin this new relationship with INEOS," added Tom Stabley, CEO of Rex Energy. "With the new sales agreement, we will now have three different outlets to deliver our natural gas liquids volumes, both domestic and international. The new outlets will enhance the economics of our wells in the Butler Operated Area and our overall resource potential."

On March 23, Ineos confirmed that its vessel, the Ineos Intrepid, had arrived at its petrochemicals plant at Rafnes in Norway, carrying 27.500-m3 of US shale gas ethane. This was the very first time that ethane from US shale gas had ever been exported from the US, and the first time it has been imported into Europe.

Ineos says this plan gives the European continent the chance to benefit from US shale gas economics, which has helped to revitalize manufacturing in the US.

The project has been complex. It involves the design and long-term charter of all eight Dragon class ships (which collectively create a virtual pipeline across the Atlantic), connection of the new 300-mile Mariner East pipeline from the Marcellus shale in Western Pennsylvania to the Marcus Hook deepwater terminal near Philadelphia, and the creation of new export facilities and storage tanks. In total, Ineos has invested about USD2 billion in its plans to bring US shale gas to Europe.

Ineos says it is the first company to establish seaborne intercontinental ethane transportation, having earlier announced the completion of agreements with Sunoco Logistics for capacity in the Mariner East pipeline and terminal system, with Range Resources for the purchase of ethane, with Evergas for the construction of new customized vessels and with TGE Engineering for the construction of a new tank at its Rafnes cracker.

Ineos is currently constructing an ethane terminal in Grangemouth, Scotland.

INEOS Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.
MRC

Japanese Toppan opening Georgia film plant

MOSCOW (MRC) -- The subsidiary of Tokyo-based Toppan Printing Co. Ltd. said the new site will produce transparent barrier films and is the first such location for the company outside of its home country, said Plasticsnews.

The 103,771-square-foot plant, the company said, is a significant enhancement in capacity to supply transparent barrier films to North, Central and South America and Europe."

Toppan USA said it will predominately make its GL Film brand in Georgia. Markets include food, drinks, medical care, pharmaceuticals and industrial materials.

As MRC informed earlier, Toppan Printing Co., Ltd. has developed Japan's first film for use in packaging materials that uses biomass polyethylene.
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