PP imports to Kazakhstan up 8% in the first eight months of 2016

MOSCOW (MRC) -- Imports of polypropylene (PP) into Kazakhstan rose in the first eight months of 2016 by 8% year on year and exceeded 15,000 tonnes. At the same time, exports from the Republic of Kazakhstan decreased, reported MRC analysts.

In August 2016, PP imports to Kazakhstan grew to 1,900 tonnes from 1,200 tonnes a month earlier, wiht PP pipes producers accounting for the increase in imports. Overall PP imports exceeded 15,000 tonnes in January-August 2016, compared to 13,900 tonnes a year earlier. Export sales of Kazakh PP, on the contrary, fell by 27%.

The structure of PP imports by grades looked the following way over the stated period: imports of propylene homopolymer (homopolymer PP) rose to 9,000 tonnes in the first eight months of the year from 6,600 tonnes a year earlier. Shipments of propylene copolymers increased by more than one and a half times this year, namely, to 6,000 tonnes, compared to 3,600 tonnes in the same period of 2015.

Stronger demand for PP from the local market allowed "Neftekhim LTD" to reduce exports this year. 13,600 tonnes were shipped to foreign markets, whereas this figure was 18,700 tonnes a year earlier.
MRC

MOSCOW (MRC) -- At least three firms including Saudi Arabian state oil giant Saudi Aramco have bid over USD1 B for LyondellBasell's refinery in Houston, according to four people familiar with the process, reported Reuters.

The Saudi firm was initially seen as the front-runner among bidders that also included Valero Energy Corp. and Suncor Inc., sources said, but added it is unclear if that is still the case.

Aramco has bid USD1.5 B for the plant, after an initial bid of USD1.2 B, three sources said.

Aramco may be looking to boost its US refining capability to compensate for capacity that it is losing as it breaks up a JV with Royal Dutch Shell.

Canadian crude producer Suncor also bid around USD1.2 B, and San Antonio-based refiner Valero bid USD900 MM, three of the people said.

Lyondell has not stated publicly what it considers the plant to be worth, but a source familiar with negotiations said that the refinery could fetch USD2 B.

"As we stated on August 25, we are continuing to explore all options," said Michael Waldron, vice president of corporate communications for LyondellBasell. He said the company would not "comment further on market rumors or speculation."

Recent US refinery sales have fetched about USD5,000/bbl of capacity, which would value the plant at about USD1.3 B. Variables such as a plant's operating income and its ability to process heavy grades of crude help determine its value.

The cost of renewable fuel credits may affect the price of the plant, because Lyondell will need to spend about USD200 MM this year on the credits, known as RINs, said Matthew Blair, an equity analyst with Tudor, Pickering and Holt. That could cap the price bidders are willing to pay, he added.

In August, Reuters reported that Lyondell retained Bank of America Merrill Lynch to advise on the potential sale of the 264 Mbpd refinery.

The plant imports South American and Mexican grades of crude oil, so it could offer Saudi Arabia a new outlet for its crude.

The US currently imports about 1 MMbbl of Saudi crude a day. Motiva processed 162 Mbpd of Saudi crude in July, the most recent month for which data is available.

The Motiva joint venture is currently being dissolved. After the split, Aramco may seek additional outlets for its crude besides the one Motiva plant it will retain in Port Arthur, Texas.

Valero operates refineries close to the Lyondell plant in Houston and Texas City. Suncor, which produces crude in Alberta's oil sands, could also be seeking additional outlets for its crude.

We remind that, as MRC wrote before, LyondellBasell completed the previously announced acquisition of the polypropylene (PP) compounding assets of Zylog Plastalloys Pvt. Ltd. (Zylog) in India. The company entered into a definitive agreement to acquire Zylog's PP compounding assets in November 2015.

LyondellBasell is one of the world's largest plastics, chemical and refining companies and a member of the S&P 500. LyondellBasell manufactures products at 57 sites in 18 countries. LyondellBasell products and technologies are used to make items that improve the quality of life for people around the world including packaging, electronics, automotive parts, home furnishings, construction materials and biofuels. Hostacom and Hifax are trademarks owned by LyondellBasell. The manufacturing facilities in India are owned and operated by Basell Polyolefins India Pvt. Ltd., a wholly-owned subsidiary of LyondellBasell.
MRC

MOSCOW (MRC) -- Clariant, a world leader in specialty chemicals, focused on the global Megatrends influencing the plastics industry at its K 2016 press conference, demonstrating how the company is bringing true value to the industry based on the real needs of people arising from these trends, said The company on its site.

Clariant’s commitment to delivering Value for People – its motto for K 2016 – was summarized by Executive Committee Member Christian Kohlpaintner in the context of the trends driving the challenges of its plastics industry customers. "Our customers in the plastics industry require a mixture of tailor-made innovation and volume driven support in order to address the needs being accelerated by global Megatrends. At K 2016, we show our particular focus on innovations underlined by sustainability because these are priorities connecting both. By supporting our customers developing innovative and sustainable solutions, this is how we can create most Value for People."

Christian Kohlpaintner drew attention to four global Megatrends impacting the plastics industry: Health & Nutrition, Lifestyle, Mobility, and Urbanization.

To provide optimum support to its customers and end-users, Clariant’s services and solutions for plastics applications address aspects such as safety and comfort, more efficient and environmentally-compatible production, and reliable cleaner energy.

We remind that, as MRC reported previously, in February 2016, Clariant Masterbatches Saudi Arabia, a joint venture (JV) between Clariant and Rowad National Plastic Company, started construction of a new masterbatch production unit in Yanbu, Saudi Arabia.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints.
MRC

MOSCOW (MRC) -- Clariant, a world leader in specialty chemicals, has developed a calibration database with its well known PV Fast and Graphtol pigments, said the company on its site.

The database can easily be integrated into matchmycolor’s Colibri software and used together with the premium grade portable and bench-top spectrophotometers from Konica Minolta to color match polyolefin articles. Unveiled at K 2016, the collaboration will benefit masterbatch producers and compounders, as well as designers and brand owners looking to ensure finished products carry exactly the same color all over the world.

The color matching service brings direct sustainability advantages to the plastics industry by reducing the traditional time- and cost-consuming sequence of creating a color calibration data set.

Clariant has provided matchmycolor and Konica Minolta with the data set of 60 organic pigments from its PV Fast and Graphtol ranges in different concentrations in high density polyethylene (HDPE), to allow fast and precise color matching using Konica Minolta spectrophotometers. The consistently high quality pigments offer various technical properties for a wide variety of applications. The matchmycolor Colibri cloud-based software calculates color collections centrally in seconds and the recipes are available instantly for quick access globally to consistent data. The combined expertise of Clariant, matchmycolor and Konica Minolta makes it possible to accurately match a wide range of colors, from opaque to translucent and highly-transparent shades.

With this set of data, masterbatch producers and their customers can significantly reduce the number of laboratory and testing steps normally required to replicate a color, resulting in time savings, cost- and energy-savings, and high matching rates that improve the quality of the end result.

Michael Grosskopf, Head of BU Pigments Clariant, comments: "Color plays a decisive role in brand identity and consumer product acceptance. The collaboration between Clariant, Konica Minolta and matchmycolor provides a turnkey solution for fast, precise and efficient color matching; helping support a more streamlined production across the value chain. Masterbatch producers and compounders can look forward to time and energy savings as a result of fewer color development steps in the laboratory and in production. Plus the high matching rates ensure a consistent color match globally, supporting industry standards and the demands of global brand owners."

We remind that, as MRC reported previously, in February 2016, Clariant Masterbatches Saudi Arabia, a joint venture (JV) between Clariant and Rowad National Plastic Company, started construction of a new masterbatch production unit in Yanbu, Saudi Arabia.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints.
MRC

MOSCOW (MRC) -- Saudi Basic Industries Corp. (SABIC) said Sunday that it started commercial operations the previous day at the polybutadiene industrial rubber part of its KEMYA complex, a JV with ExxonMobil Chemical, said Hydrocarbonprocessing.

The Saudi firm, one of the world's largest petrochemicals groups, added in a bourse filing that it had also begun trial operations at the ethylene propylene diene monomer unit of the KEMYA complex on Friday.

The financial impact of the start of commercial operations at the polybutadiene unit would be reflected in its fourth-quarter earnings, while the ethylene propylene diene monomer business would likely reach full capacity in 1Q of 2017.

Al-Jubail Petrochemical Company (KEMYA) rubber plant cost USD3.4 B and is a JV between SABIC and Exxon Chemical Arabia, a subsidiary of Exxon Mobil.

The project will supply over 400 Mtpy of rubber, thermoplastic polymers and carbon black for domestic markets and for export to Asia, according to the statement.

As MRC informed earlier, a decision on whether Saudi Basic Industries Corp (SABIC) will go ahead with a JV with ExxonMobil will likely be made by Q2 2017.

Saudi Basic Industries Corporation (Sabic) ranks among the worldпїЅs top petrochemical companies. The company is among the worldпїЅs market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.

MRC