Taiwanese producer keeps PE prices stable in China

February 25 (alibaba.com) -- A major Taiwanese producer reported offering LLDPE c4 and HDPE film prices at the same levels compared to the pre-holiday period. Currently, they are offering LLDPE c4 film at $1500/ton and HDPE film at $1430/ton on CFR China main port, subject to 6.5% customs duty, cash basis for early March delivery. The producer had announced the same levels for February shipment at the beginning of the month.

The producer admits that they are facing difficulties when concluding deals at the abovementioned levels. "Therefore, we are willing to offer small discounts in return of firm bids in order to stimulate some buying interest," they comment. Meanwhile, sources in the country report that many converters are yet to return to the market as most of them elected to have a longer holiday, extending their away time up to two weeks.

Looking at the ethylene market in Asia, prices have recorded $100-105/ton decreases since the beginning of February due to the ample supply levels, caused by the heavy import activities from the Middle East as well as the regional producers. Now, spot ethylene prices are pegged at $1250-1260/ton on CFR NEA and at $1300/ton on CFR SEA basis.

MRC

Lack of Ukrainian PP-homo in January was covered by supplies from Russia, which increased more than three times compared to December 2009. Major imports belonged to Stavrolen's PP-homo - 1.36 kt.

In January, imports of European PP-homo fell by nearly 45%, compared to December 2009. The main reasons were high prices for European material and weak demand for high-viscosity injection moulding grades.

PP-homo demand in the injection moudlign sector is still weak. At the same time, buying activity in the sector of fibres and filaments became much stronger. The share of feedstock imported to that sector in January amounted to 41% of overall imports.

MRC

For more detailed information, see DataScope Report.

February 25 (plasteurope) -- PolyMirae, a joint venture between LyondellBasell and Daelim, has launched a new PP random copolymer for use in hot and cold water pipe applications.

The product, ⌠Hostalen PP H5416K, is a natural nucleated grade which will help meet growing Asian demand for PP random copolymer resins, PolyMirae said.

MRC

February 24 (polimerica.eu) -- The chemical group has taken the decision to adjust UK PVC output in line with market demand, which has declined steadily over recent years.

Ineos ChlorVinyls intends to cease production at its PVC plant at Barry (Wales) and continue to supply customers from its other PVC plants at Runcorn (Cheshire) and Newton Aycliffe (County Durham). Completion of the consolidation is expected to take place by the end of Q2 2010 latest.

A period of consultation will now commence with Trades Unions and employee representatives. The Company aims to deliver the plant closure with minimum loss of any permanent employees by offering staff alternative employment at other Ineos sites.

⌠The consolidation of our PVC operations will underpin security of supply to our UK customers whilst at the same time delivering an improved cost base - said Geir Tuft, Business Manager -.Streamlining our asset structure in the UK will allow us to concentrate on sites that will deliver long term growth and value to the business.

MRCMRC Reference

Ineos is a petrochemical group.
In Russia Ineos's interests are represented by Ineos Polyolefins and IneosChlorVinyls.

The share in the Russian market in 2008:
PVC - 4.5%;

polyethylene - 1.9%
(HDPE - 2.8%, LDPE - 1.2%);
polypropylene - 1.4%
(PP-random - 22.1%, PP-impact - 2.0%);
polystyrene - 0.9%.

Imports by polymers processing technologies:
profile extrusion;
pipe extrusion;
film extrusion;
injection molding.

February 24 (plasticsnews.com) -- Chemtura Corp. has a deal to sell its PVC additives business, but the buyer is not the stalking horse bidder that first emerged in December.

The buyer is Artek Aterian Holding Co. LLC, a company backed by Indian chemical company Artek Surfin Chemicals Ltd. and New York investment firm Aterian Investment Partners Distressed Opportunities LP.

Artek Aterian is paying $16.2 million in cash, plus assuming liabilities from Middlebury-based Chemtura, according to documents filed Feb. 23 in U.S. Bankruptcy Court in New York.

The purchase price trumps a stalking horse bid that Chemtura had signed on Dec. 23.

SK Capital Partners LP, a New York-based private equity firm, had signed the stalking horse bid of about $45 million. But the vast majority of that bid consisted of assumed liabilities. Artek Aterian's bid was worth about $18.2 million more to Chemtura's creditors.

Artek Surfin Chemicals is a Mumbai-based company that specializes in metal-finishing chemicals.

Aterian Investment Partners is a private equity firm that invests in small- to middle-market companies that are financially or operationally constrained. The company seeks partners with annual sales of $25 million to $500 million with strong market positions, in need of up to $50 million of capital.

Chemtura had filed for Chapter 11 protection from creditors on March 18. Chemtura's PVC additives business had sales of $374 million in 2008, and $177 million for the first nine months of 2009.

Chemtura's PVC additives business makes tin stabilizers, liquid and solid mixed metals, liquid phosphite esters, epoxidized soybean oil, thiochemicals, organic-based stabilizers, and impact modifiers.

MRC