is a global distribution & trading company in plastic raw materials with offices and operations in Europe, Middle East, Africa and Asia. The network structure enables each individual branch to operate in line with the latest short-term trends within world and regional markets.
NCT's strategy is to generate added value to the chain between producers and end-users of commodity polymers. NCT is an ISO Certified Company who trades in polyolefin’s, polystyrene, pet, pvc and other plastic raw materials.
China PE, PP trade slows; importers resist price hikes
on 01-07-2009 13:34
Source: ICIS News (30/06)
China's demand for imported PE and PP has tapered off in the past two to three weeks as buyers strongly resisted price hikes, industry sources said on Tuesday. The country is the world’s largest importer of PE and PP. “There seems to be a stand-off between buyers and sellers now. Many importers decline to buy large volumes at current prices, but suppliers are not willing to drop their prices,” a Shanghai-based trader said.“Many resin producers in Asia and the Middle East raised their asking prices in recent weeks to match rising crude values,” a South Korean PE producer said. Some HDPE grades were offered up as high as $1,280/tonne (€909/tonne) into China on a CFR basis, while offers for polypropylene injection grades hovered around $1,100/tonne CFR China last week. The relatively tight supply of PE and PP grades due to planned and unplanned shutdowns of regional plants from April to June also supports suppliers’ call for higher prices, a PP producer and a PE maker in southeast Asia said. Despite the tight supply, Chinese importers are hesitant to place new orders because of weak converter demand, a trader in Hong Kong said. “Demand for almost all kind of resins is very weak in south China as most of the end-users here are export-oriented and the overseas markets are still weak,” the trader in Hong Kong said. Many Chinese traders were holding low inventories in anticipation that Sinopec’s joint venture plant in China and Sumitomo Chemical’s joint venture plant in Saudi Arabia would start up in the third quarter, and that the new supplies would push regional prices down, the Shanghai-based trader said. “If these plants don’t start up as expected, prices are likely to fluctuate in a tight range at current levels,” a second Shanghai-based trader said. Despite expectations of fresh supply hitting the market, PE and PP end-users in China resurfaced to buy cargoes three weeks ago when crude prices were bubbling above $70/bbl, the Shanghai-based trader said. Some Chinese traders said they were concerned that regional supplies could build up again if import demand from China does not improve, thus setting the stage for a sharp downward price correction. However, some Asian producers and traders said any downward correction would be moderate as China’s net import requirement was still huge. “China’s local production is not enough to cover its demand. When it has to buy, it will buy (PE and PP) even at higher prices,” a source at a Japanese trading company said. Nevertheless, Chinese importers would likely find themselves in a buyers’ market when the new plants start up, a third Shanghai-based trader said. When there is excess supply and weak demand from the export-oriented end-users in China, imports would have to match local prices in order to be competitive, he added. On the other hand, Asian and Middle East producers were likely to divert their exports from China should prices fall too much, an Asian PP producer speculated. “If the prices in China cut into the feedstock costs, Asian producers would cut production,” a second Asian PP producer said.
Braskem mulls expansion in North America
on 01-07-2009 13:33
Plastemart (01/07)
Latin America's largest petrochemical company Braskem is in the process of considering an expansion. The company is mulling expansion in North America by acquisitions that would position it for long-term growth by opening access to clients, logistics, production and operations. The company’s current cash holdings total to about US$1.55 bln. So far, Braskem was not considering large acquisitions in a bid to preserve cash holdings until the end of the global credit crunch.
ExxonMobil Chemical to up PP compounding capacity at French facility to meet automotive demand
on 01-07-2009 13:32
Source: Plastemart (01/07)
ExxonMobil Chemical is investing in increased polypropylene (PP) compounding capacity and capability at its Lillebonne Polypropylene Plant (LPP), France. Capacity will increase by 45,000 tons to meet growing demand for Exxtral™ performance polyolefins from automotive original equipment manufacturers (OEMs) primarily in Europe. The expansion is due for completion by year end 2009. The French facility currently manufactures neat, filled and compounded PP such as the new generation compound Exxtral BMU141 that was recently specified for the instrument panel of the new Citroën Berlingo and Peugeot Partner. Exxtral polyolefins were also specified for the door panel, and upper and lower trim of these vehicles. Exxtral polyolefins have been used primarily for interior and under the hood automotive applications but are increasingly being specified for exterior applications, such as bumper fasciae which also are driving demand. In January 2008, ExxonMobil Chemical announced the start up of a new US$20 mln specialty compounding facility in Baton Rouge, Louisiana with an annual capacity of 40,000 tons. In September 2008, ExxonMobil Chemical announced an agreement with Resin & Pigment Technologies Pte. Ltd., Singapore to manufacture a broad range of ExxonMobil Chemical's specialty compounds, including Exxtral polyolefins, for use in automotive interior and exterior applications.
Asian naphtha crackers to run at full tilt in July
on 01-07-2009 13:31
Source: ICIS News (01/07)
Asian cracker operators plan to keep ethylene production at close to full rates for the third straight month in July, against earlier expectations, due to prevailing strong derivative polymer prices, industry sources said on Wednesday. An informal survey among cracker operators in northeast and southeast Asia showed that the bulk of the 67 facilities in the region were expected to operate at 90-100% this month. “This is the time to ramp up production and push product out,” said one olefins producer. “After September, who knows what will happen?” the source said referring to new capacities which were expected to come on stream after July-August. Delays in polyethylene (PE) and monoethylene glycol (MEG) exports to Asia from the Middle East and postponements in the start up of new crackers in China had kept polymer prices riding high in June although PE demand had started to taper off following the price spike. High density polyethylene (HDPE) film grade spot prices were assessed at $1,200-1,280/tonne(€852-909/tonne) CFR (cost and freight) China last week. This represented a healthy spread of around $300/tonne compared with ethylene spot prices, which were at a eight-month high of $910-950/tonne CFR NE Asia over the same period, according to data from global chemical market intelligence service ICIS pricing. The fat margins that PE makers currently enjoy have spurred some olefins traders to set ethylene price targets at above $1,000/tonne CFR Asia after recent reported deals at $920-950/tonne FOB (free on board) Taiwan for July delivery. The rebound in feedstock naphtha and crude values to above $71/bbl early this week were also expected to provide some support for the monomer. Several traders said there was a higher chance for ethylene prices in southeast Asia to breach the $1,000/tonne level as recent cracker shutdowns and high derivative polymer operating rates in Iran had severely curtailed the supply of ethylene to southeast Asia from the Middle East. Last year, Iran typically shipped out around 10-15 ethylene cargoes each month but average monthly volumes have been whittled down to about half especially in the second quarter of 2009, traders estimate. “Buyers in southeast Asia will have to pay more because of the lack of supply from Iran. We are seeing interest from PE makers at close to $1,000/tonne,” said an olefins trader.
INEOS in key meetings with lenders over €7.2bn debt
on 29-06-2009 14:07
Source: ICIS News
Ineos is meeting its major lenders in London and New York to discuss revised covenant arrangements on its €7.2bn ($10bn) of senior and high yield debt, the company confirmed on Monday. The chemicals maker is discussing a revised business plan with representatives of 330 banks and bond holders having already agreed a package of amendments to its financing arrangements with a group of seven lead banks. It is working towards a 15 July deadline for an agreement to re-set covenants on the debt. The meetings will be held in London on Monday and New York on Tuesday and followed with one-to-one discussions where necessary. The agreement with the “sounding group” of lenders includes a reset of the leverage, interest cover and debt service cover covenant levels, with effect from September 2009, revised fees, and an increase in interest margin among other concessions. It was based on a revised five-year business plan prepared with the help of petrochemical industry consultants and financial advisers. The total cost of the covenants revision is €340m including a maximum “payment in kind” (PIC) arrangement of €160m and fees of €55m. A further €55m in fees would be payable next July. INEOS is planning for replacement cost earnings before interest, tax, depreciation and amortisation (RCEBITDA) of €1.1bn this year on sales of €15bn. Its EBITDA in 2008 was €1.6bn before inventory holding losses of €845m. It has €5bn of senior debt and €2bn of high yield debt outstanding on which it has to make a prepayment of €250m within 18 months and €450m within 24 months.
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