Indorama resumed operations of two plants

(Chemmonitor) – Indorama Ventures based in Thailand has recently resumed operations at its two idled production units located in Texas (USA).

The plants were shut down in the second half of July. They produce monoethylene glycol (MEG) as well as ethylene oxide (EO).

Indorama Ventures is a multi-faceted organisation. It is a leading manufacturer of petrochemicals and associated downstream products up to textile raw materials. Indorama is a multinational organisation with products being shipped to over 90 countries across the globe.
MRC

(petrolworld) -- The administrators of the Petroplus refinery have issued their first progress report on the administration of the site, shedding detail on its financial issues, and offering an estimate of the likely return for creditors. The administrators estimate that net funds of between USD102m and USD135 will be available for distribution to unsecured creditors, and that the gross earnings from selling assets will be between USD199m and USD209m.

During the six-month period of administration, the refinery suffered trading losses of between USD22m and USD31m. Capital expenditure incurred and written off accounted for USD20m of this loss, while a USD450.4m claim against the refinery's Swiss parent has been written off. The administrators expect to complete a sale of the refinery's assets in the coming months, but have not disclosed details of this deal.

"This has been an exceptionally difficult administration. The information we have published today illustrates the scale of financial and operational challenges we faced in operating the refinery for nearly six months," said PWC Partner and Joint Administrator Steven Pearson. “The unfortunate reality is that, despite rigorous cost control, the refinery incurred significant losses from operations between January and June. This high risk, low reward environment was the main driver in having to cease operations – put simply, we could not afford to incur the ongoing losses associated with continuing refining," he added.

MRC

(bloomberg) -- Petroleo Brasileiro, the worst performing global oil company this year, unexpectedly reported its first quarterly loss in more than a decade after a depreciation of the local currency boosted costs.

A 9.1 percent depreciation of Brazil’s real in the second quarter increased the cost of buying equipment and services that are denominated in dollars, the Rio de Janeiro-based company said in a statement on Aug. 3. Brazil’s currency was the worst performer among the 16 major currencies tracked by Bloomberg this year, data shows.

"Currencies are the wild card in any given quarter," Gianna Bern, president of Brookshire Advisory & Research Inc. in Chicago, said in a telephone interview after the report. "All of their dollar-denominated obligations are higher when the Brazilian real weakens, that’s part of the picture."

Petrobras had a loss of 1.35 billion reais (USD666 million) compared with a profit of 10.9 billion reais a year earlier, the company said Aug. 3. It was Petrobras’s first quarterly loss since 1999, according to data compiled by Bloomberg. The company was expected to post a 2.94 billion-real adjusted profit, the median of nine analysts’ estimates in a Bloomberg survey.

"This result isn’t recurrent and is the result of a group of factors: the strong depreciation of the real against the dollar," Chief Executive Officer Maria das Gracas Foster said in the statement. "Also the price gap between fuel sold in the Brazilian market in relation to international parameters."
MRC

(hydrocarbonprocessing) -- China National Petroleum Corp. (CNPC) is preparing to resume production at its Hohhot refinery in the northern autonomous region of Inner Mongolia, the country's largest energy producer said this week in an in-house newsletter.

The Hohhot refinery has completed upgrades that will more than triple its crude-oil processing capacity to 5 million tpy, or about 100,000 bpd, up from 1.5 million tons previously.

The refinery has been shut since August 2011 to make way for a new crude distillation unit, fluid catalytic cracking unit and polypropylene unit, it said.

The refinery will now be able to produce 1.7 million tons of gasoline, 2.1 million tons of diesel, 200,000 tons of jet fuel and 150,000 tons of polypropylene, along with other petrochemical products.

MRC

1. Linik to resume operation.

MOSCOW (MRC) -- Ukraine's largest oil refinery Linik plans to resume the operation in the end of September. The plant has been shut down from March. The production of polypropylene will be resumed along with oil refinery, according to MRC analysts. TNK-BP the owner of refinery shut Linik in early March due to the unprofitableness. The capacities for polypropylene worked on imported feedstock until the middle of April. The refinery was rumoured to be sold.

2. Prices of PP in Asia still go down.

MOSCOW (MRC) -- Despite the growth of oil quotations the low demand for polypropylene in Asia continues to bear the price quotations, according to MRC analysts. Asian market of polypropylene echoes the situation in the polyethylene market. Local converters are rather cautious in their purchases on the slowdown of economy in China. Asian and Middle Eastern producers have tried to raise their price quotations for August on rising cost of propylene in the region. Customers in China and Southeast Asia have instantly reduced demand. Price quotations of propylene last week fell by USD25-30/tonne. Prices of homopolymer of propylene were reduced on average by USD10-20/tonne and were at USD1,320 – 1,370/tonne, CFR.

3. Russian PS prices to rise in August.

MOSCOW (MRC) - In August the price of Russian polystyrene is likely to increase by Rb1,500/tonne, according to MRC analysts. The high prices of polystyrene was backed by converters’ demand. Russian producers of polystyrene kept the capacity utilization at a high level in H1 2012, which, however, was not sufficient to meet the increased demand. In this situation local buyers increased supplies of imported polystyrene. In July, the price of European polystyrene decreased by EUR70-100/tonne following the fall of the contract price of styrene by EUR115/tonne from June level. In August, the European market participants expect the prices of styrene monomer to increase by EUR100-120/tonne, which will return to the June level of prices.

4. A major decline in polymers imports from Asia is expected in August.

MOSCOW (MRC) – Due to the APEC summit Russian Railways has temporarily restricted goods train movement from the eastern part of Russia to Siberia and beyond. The restriction of railway traffic will affect polymers supply from Asia, report MRC analysts. Such serious freight restrictions might significantly affect the Russian market of large polymers since the share of imports of some polymers through the eastern marine border is quite substantial. Approximately 15% of the total PE import volumes are shipped through Vostochny port and the port of Vladivostok. They are mostly pipe PE100 and injection moulding PE from Asia. However, film HDPE shipments through the eastern region have considerably grown recently. In polypropylene supply this index makes about 10% and largely accounts for South Korean PP-homo and random copolymer. In PVC supply, a share of imports from Asia through Eastern Russia is rather low. Basic import flows of resin from Asia come through Kazakhstan (Chinese acetylene PVC).

5. European makers to increase PE prices by EUR140-210/tonne.

MOSCOW (MRC) - European makers aim to increase export prices of polyethylene (PE) by EUR140-210/tonne for August. Some market participants doubt that they will be able to achieve the wishful result, according to MRC analysts. On rising oil quotations ethylene contract price in Europe for August was increased by EUR140/tonne, from July. However, despite this, many European makers have to raise the export prices of polyethylene for August by EUR140 - 210/tonne, while export quotas are still limited. The June drop in prices of oil and low demand for polyethylene in Europe in the first half of the year have forced local producers to decline prices seriously. A serious fall in the price of polyethylene has intensified the demand in July. European makers aim a more serious rise in prices for August on the back of a significant increase in the price of ethylene and July sales. Export prices of polyethylene for the CIS markets are increased on average by EUR140-210/tonne, from July, depending on the grade of polyethylene. Price quotations of HDPE were at EUR1,200-1,280/tonne, FCA.

5. European makers of PP aim to rise prices by EUR120 – 180/tonne.

MOSCOW (MRC) - The European makers announced increase in export prices of polypropylene (PP) by EUR120 – 180/tonne for August. Some market participants plan to limit the rise in prices of polypropylene by the level of growth of propylene prices, according to MRC analysts. The contract price of propylene in Europe for delivery in August on rising oil quotations was increased by EUR120/tonne, from July. In this regard, many European makers have to raise their export PP prices for August by EUR120 - 180/tonne, though export quotas are still limited. European makers announced more serious rise in prices for the August shipment on the background of a significant increase in the propylene price and July sales. Export prices of polypropylene for the CIS markets voiced on average up by EUR120 - 180/tonne, from July, depending on the maker. Price offers for the supply of PP homo were voiced in the range of EUR1,160 – 1,240/tonne, FCA.
MRC