Elastochem Newsletter February 2012
Friday 24th February 2012

Hi

A belated Happy New Year to all of Elastochem's customers. With the number of short weeks in January and February, time has flown by.

Elastochem has had a busy start to the New Year, with a lot of focus on training and new product developments, which we hope to share with you over the next few months.

Some customers have already had technical visits from our suppliers, and Elastochem will ensure we keep pressure on our suppliers to make training a key focus for 2012. There are many exciting developments within Elastochem's product portfolio, which we are sure will aid NZ manufacturers.

So look out for our regular Elastochem Newsletters to stay well-informed.

  • ELASTOCHEM NEW ZEALAND LIMITED
  • Supply Fundamentals - Availability of Supply Critical
  • Your Supply Partner's Strategies
  • Technologies With Value

  • Supply Fundamentals - Availability of Supply Critical

    I have recently returned from Singapore, where I was able to discuss the local Asia Pacific supply dynamics and looked at the wider worldwide situation. 2012 will see many challenges in terms of supply, which I highlight below.

    Feedstock supply for C4LL and ICP is the issue from our Singapore supply base. Due to increased USA demand, we are seeing lower imports into Asia Pacific from that area. Hence local manufacturing in Singapore has had to increase. However additional feedstocks are not available.

    The lack of additional feedstock is partly attributed to Japan having to use non-nuclear fuels for power generation following the tsunami. We are seeing reduced allocations of C4LL and ICP. We do not see a resolve to this issue until 2013.

    Further afield, there are growing tensions in the Middle East over Iran's nuclear ambitions. There is a high probability of an Israeli lead attack on Iran's nuclear sites sooner rather than later. Such an attack would mean Middle East oil supply is likely to be interrupted during the initial attack. This will result in higher prices and limited supply of LDPE which is dominated by Middle East suppliers.

    On the positive side however, the NZ and Australian economies are forecasted to have strong growth in 2012 and 2013, due to our trade with Asia. Key markets including China, Malaysia and Indonesia have seen a growth in incomes, and a developing middle class, leading to more energy consumption (Australian minerals) and expenditure on consumables and food (NZ exports).

    The forecast for the NZD is for this to stay strong in 2012 and 2013. ASB has released figures quoting USD at 0.86 for 2012, rising to 0.90 in 1Q2013. Equally the AUD remains strong, hence on the cross-rates Australian imports to NZ will be expensive, but NZ manufactured exports more competitive.


    Your Supply Partner's Strategies

    The above supply restrictions can only mean one thing - inconsistent availability of materials. Here at Elastochem we are actively working on our strategy to increase local stock-holdings.

    We envisage long lead times especially for Middle East supply (LDPE, HDPE), so Elastochem's commitment is to hold stocks locally for the NZ manufacturers. While this may contribute to increased pricing levels, we feel this will be out-weighed by the lack of consistentancy from other suppliers.

    Elastochem will also be providing technical support inline with newer technologies which are available from more secure logistic channels. As an example, metallocene polyethylene will be more readily available ex Singapore, compared to Middle East or European supply.


    Technologies With Value

    More than ever we all need to consider how new technological advances in materials can offset traditional supply.

    Elastochem will be featuring many new products in our portfolio in 2012, with the appropriate technical support, to ensure our customers forge ahead in the competitive marketplace.

    Elastochem's by-line Trusted Technologies With Value is our motivation as we believe it will be your competitive advanatge.

    We look forward to bringing you these Values in 2012.


    ELASTOCHEM NEW ZEALAND LIMITED

    Trusted Technologies With Value from:

    • ExxonMobil Chemical Polyethylene
    • ExxonMobil Chemical Polypropylene
    • Santoprene® Rubber
    • ICO Polymers Compounds
    • A. Schulman Masterbatch
    • A. Schulman Engineering Plastics
    • Dequest® Phosphonates
    • Solutia Specialty Chemicals
    • Alpha Technologies
    • Welvic PVC
    • Bayshore Industrial Masterbatch
    • Chem-Trend Release Agents
    • PREMIX Group Conductive Polymers
    • DWJ Black Masterbatch

    Quick Links...

    Elastochem Website

    ExxonMobil Chemical

    EXCEED® & ENABLE® Metallocene Technologies

    SANTOPRENE® TPV

    Specialty Elastomers - VISTAMAXX® & EXACT®

    Alpha Technologies

    Dequest® Phosphonates

    A. Schulman Masterbatch & EP

    ICO Polymers ICORENE® Roto Compounds

    Chem-Trend Release Agents

    PREMIX Group Conductive Plastics



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