Middle East crisis to destabilize polymer market in Europe and Asia

MOSCOW (MRC) -- Africa and the Middle East political crises destabilized polymers markets in Europe and Asia, the Russian processors are confused as well, said MRC analysts.


Long-term political troubles caused oil and petrochemicals prices hike. Naphtha quotations in Europe raised by record USD 74/Mt on Friday, and it didn't allow main market players to settle March propylene and ethylene contract prices. Undefined contract prices for olefins resulted in indeterminate March prices for polyethylene, polypropylene and polyvinylchloride.


The same situation was marked in Asia. As a result of sharp price growth for oil, ethylene and propylene, some Asian suppliers started to form prices on a weekly basis. Some companies get re-insured and raised prices for March supplies by USD 100/Mt higher than expected.


Russian producers acted in a more predictable way. Polyethylene, polypropylene and polyvinylchloride contract prices for March supply raised by RUB 500/t - 2.000/t (depending on a polymer producer). The Russian converters, who use the European polymers, are forced to wait for new prices from thier European suppliers in terms of dynamic development of oil and naptha market.

MRC

(SABIC) -- Saudi Basic Industries Corporation (SABIC) signed four agreements with King Abdullah University of Science and Technology (KAUST) at the University campus in Thuwal on February 26, 2011. The agreements cover the development and localization of technology in the Kingdom of Saudi Arabia. They advance the technology and innovation strategy pursued by SABIC as well as enhance the comprehensive cooperation program sponsored by KAUST.

KAUST President Choon Fong Shih said: ⌠The four SABIC-KAUST agreements will help both organizations fulfill our missions of harnessing science and technology for the benefit to the people of Saudi Arabia and beyond.

The first agreement is for the construction of a SABIC Research and Innovation Center at KAUST, at a cost of US$150 million, as the first stage. The second and third agreements are for SABIC's direct support of KAUST. The fourth agreement organizes the joint research work between the two sides on all matters related to the management of research projects and associated intellectual property rights.
MRC

(ArabianOilandGas.com) -- China is set to invest US$2.5 billion in South Azadegan oilfield on Iran's border with Iraq the Iranian news agency Mehr reported Friday.

"According to the final agreement, China will invest $2.5 billion in the field," Mehr quoted Naji Saadouni, president of Iran's Petroleum Engineering and Development Company (PEDEC), as saying. The PEDEC president did not however specify which Chinese firm would take up the project.

The Azdegan field currently produces 55,000 bpd and it is expected to increase output to 320,000 bpd after the completion of the first phase of the project which is currently underway, according to the Tehran Times. Completion of the second phase will boost the oilfield's output to 600,000 bpd.
MRC

(BASF) -- BASF increases prices globally of antioxidants and process stabilizers for plastic applications by 5-10%, depending on the product. These increases are in addition to the increases announced in December. The price increase is necessary due to a significant increase in prices of major raw materials such as stearyl and lauryl alcohol, phenols, and methyl acrylate which are driven by feedstock price developments in the benzene, propylene, palm kernel oil markets.

BASF is committed to the plastic additives business. However, the recent and anticipated raw material cost escalations and volatility combined with current profitability levels require an increase in prices to sustain BASF's ability to invest.


mrcplast.com

(ICIS) -- European March ethylene (C2) and propylene (C3) contract discussions are ongoing and several contract players do not expect a settlement before the weekend, market sources said on Friday. The contract negotiations had become drawn out because of the volatility in the upstream crude oil and naphtha markets this week.

Sources said that it was very difficult to fix an appropriate contract price for the whole month given the unpredictability of feedstock and the uncertainties regarding the future stability of the Middle East and North Africa (MENA) region.

A couple of sources said that they wanted to better understand the consequences of the situation in Libya before rushing to settle a price. Others said that it was important that an ethylene and propylene settlement was agreed sooner rather than later.

All sources were in agreement that it was necessary to ensure that the new contract number was established before Tuesday, 1 March.

MRC