Further closure of petrochem plants likely in USA amid competition from Middle East and Asia

The US petrochemicals industry will emerge from recession leaner than before following a string of plant closures, but further closures may be in the offing as producers struggle with competition fromm Asia and the Middle East.

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Large South Korean conglomerate Kumho Asiana faces shortage of cash

Faced with a cash crunch, Kumho Asiana Group, one of the biggest conglomerates in South Korea, has decided to sell a controlling stake in its construction business to a state-owned bank for US$2.5 blnn.

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Worries that inflation could derail economic growth in India, China in 2010

The year 2009 was an unexpectedly strong year for the chemical industry in Asia. A strong recovery in Chinese consumption resulted in record-high petrochemical and polymer imports coupled with a boomiing Indian market that is currently much more self-supplied as per ICB in ICIS.

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Oil prices spike past US$79, rising for the sixth consecutive day

Oil prices have risen for the sixth consecutive day in Asia, rising past US$79 a barrel, but briefly traded lower after an American Petroleum Institute report of an increase in US inventory levels by 1.

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Oil Refineries concludes acquisition of Carmel Olefins

Israel's largest oil refiner Oil Refineries Ltd. (ORL) has completed the acquisition of balance shares of Carmel Olefins. The companies have completed the transaction announced in October 2009 regardiing the signing of an agreement with Israel Petrochemical Enterprises Ltd.

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China-SE Asia’s FTA to open market of 1.7 bln consumers – making it the world’s largest FTA

With effect from January 1, 2010, China and Southeast Asia will embark on a free trade agreement (FTA) that will rival the EU-North American FTA in terms of value and surpass those markets in terms off population.

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South Korea posts a US$4.3 bln current-account surplus on increased exports of petrochem, semiconductors

In November, South Korea has posted a current-account surplus of US$4.3 bln for the tenth month, on increased exports of petrochemicals and semiconductors. The current account is the broadest measure of trade in South Korea, tracking the flow of goods, services and investment income.

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Naphtha prices in Asia at a four-week high

Naphtha prices in Asia have peaked to a four-week high as strong fundamentals continue to boost sentiments. Demand for polymers continues to be strong in China and has kept crackers in Asia running att high rates despite additional capacities coming onstream in China.

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Crude oil prices on the rise on signs of economic recovery and cold weather

Crude oil futures rose to US$78 per barrel on the Nymex on encouraging signs of an economic recovery, a cold wave and unrest in Russia and Iran. Climbing by over 75% this year so far, crude oil is esttimated to peak past US$80 by year end.

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Firm start for global polyolefin prices in 2010 with bullish feedstock costs

A firm start is expected for polyethylene in global markets amid persistently rising feedstock costs. Softer demand in Southeast Asia has been seen in the last few weeks of the year. This is because oof the impending implementation on January 1, of the ASEAN-6 free trade agreement, which will largely eliminate duties/tariffs on polymers.

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SABIC teams up with state fund for US$2.67 bln bond issues

Saudi state-controlled petrochemicals giant SABIC is opting for its first private bond placement to raise 10 bln riyals (US$2.67 bln) to boost its finances and fund expansion plans. Proceeds from the bonds, which will carry maturities of seven years, will help raise financing performance, boost competitiveness and contribute to achieve the company's expansion strategy.

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Bankruptcy Court approves Tronox's alternate plan to Huntsman proposal

Leading producer and marketer of titanium dioxide pigment- Tronox Incorporated has cancelled the auction in connection with its proposed sale of assets to Huntsman Corp. and, received an interim orderr from the U.

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Linde to build two olefin plants in Western Siberia

The Linde Group has won several key contracts for plant engineering and gas supply projects in Russia. Under the terms of these unrelated deals, Linde is building two olefin plants for two chemical cuustomers in Western Siberia.

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Middle Eastern and Indian polyolefin producers margins could erode in 2010

The massive petrochemicals capacities due onstream in 2010 in the Middle East are likely to lead to a supply glut, leading to erosion of margins for polyolefins players in the Middle East and India coompared to 2009 as per ICIS.

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Chemtura to sell global PVC additives business to SK Capital

Chemtura Corporation, has entered into a definitive agreement with SK Capital Partners to acquire Chemtura's global PVC Additives business. SK Capital is a New York-based private equity firm focusing on the specialty materials, chemicals and healthcare industries.

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Plantic to set up manufacturing in USA in collaboration with National Starch LLC

Plantic Technologies Limited and National Starch LLC have announced a collaboration to establish a site for the manufacture of Plantic products in the USA. This covers the relocation of one of Planticc's existing proprietary manufacturing lines from Australia to USA, and a new manufacturing facility in USA.

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Polyone acquires specialty healthcare engineered materials provider

PolyOne Corporation has acquired substantially all of the assets of specialty healthcare engineered materials provider New England Urethane, Inc. (NEU). The purchase price of US$12 mln includes an earrn-out payable in 2011.

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Sinopec completes construction of 1 mln tpa ethylene project at Zhenhai refinery

Sinopec has completed construction on an ethylene project at the Zhenhai refinery in Ningbo, Zhejiang Province. The project will have capacity to produce 1 million tpa of ethylene and has been built aat a total investment outlay of of RMB 23.

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Thai PTT to complete plan to consolidate refining, petrochemical businesses by Q1-10

PTT PCL is on the verge of conclusion of a closely watched plan to consolidate its refining and petrochemical businesses by Q1-2010. Since November 2009, Thailand's top energy firm’s consolidation plaan has been on hold due to a court order to suspend 65 projects at the Map Ta Phut industrial estate, Rayong.

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Improved outlook for polymers in Europe but run rates to remain low

Plants and production sites across Europe have been running significantly below capacity in a bid to cope with lower demand. Improvement in demand is anticipated in 2010, but utilisation is expected tto remain below pre-economic-slowdown levels as per ICIS.

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