European PVC prices remained steady for CIS markets in October

MOSOCW (MRC) - Negotiations on European polyvinyl chloride (PVC) prices for October delivery to the CIS markets have begun this week. European producers in most cases rolled over the September export prices, according to the ICIS-MRC Price Report.

The October contract price of ethylene was agreed up by EUR10/tonne from September, which led to an increase of, at least, EUR5/tonne, in PVC production costs. However, European producers announced the rollover of the September export PVC prices for supplies to the markets of the CIS countries in October, while in some cases it was reported about price cut of EUR10/tonne on the back of a weak demand.

The need for PVC from the main consumers from the CIS countries is low due to the seasonal factor and the stable work of local producers. Also, the need for procurement in foreign markets is minimal and often reduced to specific brands, in particular with K 70 and K 58.

Despite the ongoing scheduled shutdowns of some plants in Europe, most producers have no significant restrictions on exports. Negotiations on October shipments of suspension polyvinyl chloride (SPVC) to the CIS markets were held in the range of EUR720-790/tonne FCA, whereas deals were done in the range of EUR730-790/tonne FCA a month earlier. Thus, most deals were rolled over from September, only in a few cases prices were cut by EUR10/tonne.
MRC

MOSCOW (MRC) -- INEOS Enterprises has confirmed that it has entered into a binding agreement to acquire the chemical intermediates business of Flint Hills Resources. The deal is expected to complete before the end of 2018, subject to regulatory approval, said the company.

The business comprises production facilities making purified Isophthalic acid (PIA), trimellitic anhydride (TMA) and maleic anhydride (MAN) located near Chicago, Illinois. It also has offices and distribution operations at various locations in the USA, Europe and Asia. The total workforce of approximately 260 people will transfer into INEOS Enterprises following the successful completion of the deal.

Ashley Reed, CEO INEOS Enterprises said: "INEOS has a track record of acquiring businesses that are no longer core to their previous owners, improving their profitability and long-term prospects. The chemicals intermediates business of Flint Hills fits well with our portfolio and I am very pleased that we have the opportunity to integrate it into INEOS Enterprises."

This acquisition expands the business portfolio of INEOS Enterprises; the products made at the site are distributed globally and used in a diverse range of end use applications such as coatings, clothing, paints and gasoline additives.

INEOS Enterprises comprises a portfolio of businesses manufacturing chemical products in Northern Europe USA and Canada, with sales of EUR2bn around the world. The business is focused on the developing needs of its customers and rapid growth through investment in new products and manufacturing facilities or by acquisition. It employs c. 2,000 people across sites in the UK, Germany, Sweden, Switzerland, Canada and the USA.

MRC

MOSCOW (MRC) - The limited supply of low density polyethylene (LDPE) in the Russian market continues to put pressure on prices despite low demand. Prices continued their upward trend in early October, according to ICIS-MRC Price Report.

The lack of supply of LDPE in the Russian market, as well as the rise in prices, started in July on the back of scheduled shutdowns of three producers at once: Ufaorgsintez shut its capacities for scheduled turnaround in September; Kazanorgsintez also reduced LDPE production in September-October due to a lack of ethylene.

Demand for LDPE is weak on a seasonal factor, but the shutdowns of some producers continue to push prices up.
Ufaorgsintez resumed LDPE (108) output on 1 October after 30 days of outage but this factor has not affected the market. The other part of Ufaorgsintez’s capacity (158th and 153rd) will began operating from 15 October, after almost a month of inactivity. And, possibly with the launch of the second train, the market situation will stabilise.

In the meantime, market participants reported Kazanorgsintez has continued significant restrictions on the supply of LDPE to the domestic market even in the face of a serious decline in exports since September. According to the company's customers, Angarsk Polymer Plant will cut capacity utilisation at LDPE production in October, the amount of production cuts are not announced.

There have been rumours in the market since the end of August,about the near full halt of LDPE production at the Gazprom Neftekhim Salavat facilities due to economic inefficiency. But for the time being, the company has confirmed full capacity utilisation in October.

Consumer activity in the market is low in the first days of October, some converters were in no hurry to replenish stocks. At the same time, LDPE supply is still limited, and prices continue to rise.

Deals for LDPE 108 were concluded in the range of Rb95,000-96,000/tonne, FCA Ufa, including VAT. The first deals for the October shipments of the Angarsk LDPE started from the level of Rb90,000/tonne FCA Angarsk , including VAT; some companies reported that they had to do deals at Rb93,000/tonne FCA Angarsk, including VAT.

The similar grade of LDPE from Kazanorgsintez has been absent in the market since September. Price offers for the supply of 158 LDPE started from Rb97,000/tonne FCA, including VAT and to a greater extent it can be shipped in the next few weeks.
MRC

MOSCOW (MRC) -- Clariant, a world leader in specialty chemicals, announced the inauguration of a new state-of-the-art laboratory at its facility in Midland, Texas, as per Hydrocarbonengineering.

This capital investment upgraded several key infrastructure elements of the operations centre. Most prominent is the state-of-the-art laboratory, which is Clariant Oil Services fourth Regional Technical Laboratory in North America. The laboratory has almost doubled in size and is now equipped with industry-leading research and automation equipment. As such, it will increase sample activity undertaken for regional Permian Basin oil and gas producers by up to 45% over the pre-existing test centre.

"The significant investment made at Midland follows on from our major upgrade in Clinton, Oklahoma announced earlier this year,” said John Dunne, Global Head of Oil & Mining Services, Clariant. “It is further testament to Clariant’s strengthened commitment to grow with our customers located in the Permian and Mid-Con regions, which are both strategically important in the US market."

The new laboratory is unique within North America in having on-site access to two inductively coupled plasma optical emission spectrometry (ICP-OES) units, state of the art solids identification equipment, including X-Ray Diffraction (XRD) and X-Ray Fluorescence (XRF), and many other industry leading instruments. All of these are designed to allow Clariant’s chemical specialists to process around 7000 lab samples per month out of this local Permian based lab and meet its customer expectations for turnaround times. Due to the complexity of unconventional shale production in the Permian basin, this equipment gives Clariant the ability to quickly assess risk factors associated with flow assurance, asset integrity, and oil/water quality, in order to rapidly develop solutions that lower overall cost of operations for its customers. Close proximity to the Clariant technical experts on-site and the local operators ensures real time customer interaction, while providing simultaneous trouble-shooting to ensure chemical efficacy, such as scale prevention and paraffin inhibition.

In addition to its showcase laboratory, Clariant will be able to provide increased support to its customers through a newly operational blending plant, ensuring security of supply and the flexibility to produce bespoke products. An upgraded tank farm, 10-bay fleet maintenance facility and enhanced customer sales offices will also augment Clariant’s service offerings to customers in the fastest growing oil basin in the US.
MRC

MOSCOW (MRC) -- Celanese Corporation, a global specialty materials company, has increase October list and off-list selling prices for Vinyl Acetate Monomer (VAM) sold in Europe, Middle East, Africa and the Americas, as per the company"s press release.

The price increases below were effective for orders shipped on or after October 1, 2018, or as contracts otherwise allow, and are incremental to any previously announced increases.

Thus, VAM prices rose, as follows:

- by EUR50/mt - for Europe, Middle East & Africa;
- by USD0.03/lb - for the USA and Canada:
- by USD65/mt - for Mexico & South America.

As MRC reported earlier, Celanese last raised its VAM prices for the stated above regions on 1 July, 2018, as follows:

- by EUR100/mt - for Europe, Middle East & Africa;
- by USD0.05/lb - for the USA and Canada:
- by USD110/mt - for Mexico & South America.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 7,600 employees worldwide and had 2017 net sales of USD6.1 billion.
MRC