PP imports in Russia rose by 11% in 2016

MOSCOW (MRC) - Total imports of polypropylene (PP) into Russia increased to 167,200 tonnes in 2016, up 11% compared to 2015.
Russia's imports of all grades of PP increased, with the exception of PP random copolymers, according to MRC DataScope.

Russia's imports of PP increased in December, having reached 12,400 tonnes compared with 10,600 tonnes in November. The main increase in import deliveries accounted for pipe PP random copolymers, as low export prices in Europe and strengthening euro made imports quite attractive for the local pipe producers. In general, PP imports into Russia totalled 167,200 tonnes in January-December 2016, compared with 151,200 tonnes year on year. The decrease in supply showed only in PP random copolymers segment due to a significant growth of pipe PP production by Nizhnekamskneftekhim, Stavrolen and Tomskneftekhim.

PP imports in Russia over the reported period looked as follows.

December imports of homopolymer PP into the country grew to 4,100 tonnes, compared with 3,800 tonnes in November. Local companies increased the volume of purchases of injection moulding homopolymer PP from Europe. Total imports homopolymer PP raffia grade into Russia exceeded 72,500 tonnes in January - December 2016, compared with 60,800 year on year.

December imports of PP block copolymers was about 2,000 tonnes, which actually equal to the level in November. Total imports of PP block copolymers into Russia reached 30,800 tonnes in 2016, up 9% year on year. The greatest increase in supply accounted for pipe propylene copolymers.

Imports of stat-propylene copolymer (PP-random) in December was about 3,700 tonnes against 2,500 tonnes in November. Despite the seasonal factor, some local producers of pressure pipes significantly increased purchases of raw materials in Europe. Total imports of PP random copolymers into Russia decreased to 34,800 tonnes in 2016, down 4% year on year. The reduction accounted for only pipe PP random copolymers, while purchases of film and injection copolymers grew.

Imports of other propylene polymers for the reported period decreased to about 29,100 tonnes compared with 26,000 tonnes in the same time a year earlier.


MRC

MOSCOW (MRC) -- Oil prices were up on Monday, buoyed by Saudi commitments to reducing production, even as US output is expected to increase again this year, said Reuters.

The Organization of the Petroleum Exporting Countries (OPEC) has agreed to cut production by 1.2 MMbpd to 32.5 MMbpd from Jan. 1 in an attempt to clear a global oversupply that has depressed prices for more than two years. Russia and other key exporters outside OPEC have said they will also cut output.

Saudi Arabia's Energy Minister Khalid al-Falih said on Monday the country will adhere strictly to its output reduction commitment, expressing confidence that OPEC's plan to prop up prices would work.

Benchmark Brent crude oil was up 21 cents a barrel at USD55.66 by 13:42 a.m. EST and US West Texas Intermediate crude rose 27 cents to USD52.64 a barrel. But expectations of rising oil output in the United States as well as the US federal holiday on Monday capped price gains.

Goldman Sachs said it expects year-on-year US oil production to rise by 235,000 bpd in 2017, taking into account wells that have been drilled and are likely to start producing in the first half of the year. US oil output is now at 8.95 million bpd, up from less than 8.5 million bpd in June last year and generally at levels in 2014, when overproduction sent the market into a tailspin.

Falih's words were also not entirely positive. While committing to the cuts, he had also said producers are unlikely to extend their agreement to cut oil output beyond six months, especially if global inventories fall to the five-year average.

"We don't think it's necessary given the level of compliance," Falih said at an industry event in Abu Dhabi. "My expectations (are) ... that the rebalancing that started slowly in 2016 will have its full impact by the first half."

Investors have doubted that OPEC and its allies can trim output enough to push up prices. Russian oil and gas condensate production averaged 11.1 MMbpd for Jan. 1-15, two energy industry sources said on Monday, down only 100,000 bpd from December. Russia has committed to a 300,000-bpd cut during the first half of 2017.

"Cuts by OPEC and non-OPEC countries have just started and it will take some time for them to filter through," said Bjarne Schieldrop, chief commodities analyst at SEB Markets in Oslo. "We do not really expect the oil price to strengthen much more in the first quarter of 2017."
MRC

MOSCOW (MRC) -- Reliance Industries reported a 3.6 per cent rise in its third quarter net profit after petrochemical margins made good a drop in its core refinery profits, said Reuters.

Net profit of Rs 7,506 crore, or Rs 25.4 a share, in October-December, was 3.6 per cent higher than Rs 7,245 crore, or Rs 24.5 per share, in the same period a year back, the company said in a statement.

RIL, the owner of world’s largest refining complex, earned USD 10.8 on turning every barrel of crude oil into fuel as compared to a gross refining margin (GRM) of USD 11.5 in third quarter of 2015-16 fiscal. Turnover was up 16.1 per cent at Rs 84,189 crore.

RIL Chairman and Managing Director Mukesh D Ambani said: "Our robust integrated platform, sound operational processes and business portfolio aligned to the needs of emerging India enabled us to deliver another record performance in challenging market conditions.

"The refining business has delivered eight consecutive quarters of double-digit GRMs, benefiting from the global demand for transportation fuels and improved product cracks."

As it was written earlier, Reliance Sibur Elastomers Private Limited (RSEPL), a joint venture between SIBUR and Reliance Industries Limited (RIL), announced plans for setting up South Asia’s first halogenated butyl rubber unit at RIL’s integrated petrochemical site in Jamnagar, India.

Reliance Industries is one of the world's largest producers of polymers. The company's polymer production in 2010-11 (polypropylene, polyethylene and polyvinyl chloride) made 4,094 kilo tonnes.
MRC

MOSCOW (MRC) -- Linde Engineering North America (LENA) announced the appointment of Jason Cooper as President and Chief Executive Officer (CEO), said Hydrocarbonengineering.

Mr Cooper, who has been with the Linde Group since 2008, has 22 years of experience at the domestic and international level in both owner/operator and engineering, procurement and construction (EPC) corporate environments.

Mr Cooper recently served as Managing Director of the company’s southeast Asia region. In his new role, he will work primarily from LENA’s office in Houston, Texas, US, but will maintain an ongoing presence throughout the company’s geographic footprint.

Dr Christian Bruch, Linde Group Executive Board, said: "We are pleased to name Jason Cooper as LENA’s President and CEO […] Jason has demonstrated clear results for Linde in numerous areas of the company and in several areas of our international footprint. We look forward to the executive leadership he will bring to LENA as the company explores growth opportunities. I would also like to thank Steve Bertone for his long-time dedication to Linde and his valuable contributions throughout his more than 33 years with the company."

Mr Cooper said: "I see great opportunities for LENA’s future […] We have a very talented team that have achieved some wonderful things over the years. Certainly there are opportunities and some challenges in the road ahead, but I know our employees at every level are committed to generating value for our customers. We will continue to push for strong collaboration with customers and partners, driving for innovative solutions and delivering successful projects."

As MRC informed earlier, in January 2016, Linde AG agreed with Gazprom to build a gas processing plant in eastern Russia.

The Linde Group is a world-leading gases and engineering company with around 62,000 employees in more than 100 countries worldwide.
MRC

MOSCOW (MRC) -- RPM International Inc. announced that it has acquired Prime Resins to be part of its USL Group. Prime Resins is a manufacturer of specialty chemicals and equipment for infrastructure construction and repair, said Hydrocarbonprocessing.

Headquartered in Conyers, Georgia, Prime Resins has annual net sales of approximately USD7 million. Terms of the transaction, which is expected to be accretive to earnings within one year, were not disclosed.

Prime Resins' product line includes a range of polyurethane and epoxy grouts, foams, adhesives and coatings. They are primarily used for leak sealing, concrete structural repair, slab lifting and soil stabilization. Product applications include highways, roads, bridges, airport runways, sewage systems and retaining walls.

The USL Group is comprised of several business units that provide a wide array of coatings, products and services for infrastructure projects, including bridges, roadways and car parks. It is based in the UK and has operations across Europe, Asia, the Middle East and the US.

"Prime Resins will operate within our USL Group of companies and will continue to be led by its founder and president, David Barton," said Frank C. Sullivan, RPM chairman and chief executive officer. "We intend to drive its top-line growth by leveraging the Prime Resins sales force to bring more of USL's differentiated product technologies to the U.S. infrastructure market. At the same time, we will improve its bottom line through access to RPM's raw materials purchasing network."
MRC