PVC production in Russia increased by 18% in January-April 2017

MOSCOW (MRC) - Production of unmixed polyvinyl chloride (PVC) in Russia increased to about 302,600 tonnes in the first four months of this year, up 18% compared to the same period of 2016. A low production of the previous year was a result of the forced shutdown of SayanskKhimPlast, according to MRC ScanPlast.

April production of unmixed PVC in Russia grew to 77,800 tonnes, compared with 72,600 tonnes in March 2017. SayanskKhimPlast shut its capacities for short scheduled maintenance works in March. Overall PVC production reached 302,600 tonnes in January-April 2017, compared to 257,200 tonnes a year earlier. Such a high level of growth in production was a result of long forced shutdown of SayanskKhimPlast in February-July last year.

The structure of PVC production by plants looked the following way over the stated period.

RusVinyl (joint venture of SIBUR and SolVin) in April produced about 25,000 tonnes of PVC, with 2,100 tonnes of them accounted for emulsion polyvinyl chloride (EPVC), compared with 27,000 tonnes in March. Total SPVC production at RusVinyl exceeded 102,600 tonnes in January-April 2017, down 3% year on year.

SayanskKhimPlast increased capacity utilisation last month, the plant's SPVC production reached 24,000 tonnes, whereas this figure was only 15,800 tonnes in March. SayanskKhimPlast's production of SPVC over the four months totalled 83,500 tonnes against 35,300 tonnes year on year (the low production in 2016 was forced long shutdown in February-July).

Bashkir Soda Company (BSC) in April 2017 produced about 21,100 tonnes of suspension PVC (SPVC), while in March it was 22,100 tonnes.
The producer's PVC production increased to about 86,100 tonnes in the first four months of 2017, compared with 84,400 tonnes year on year.

Kaustik (Volgograd) in April slightly increased SPVC production, reaching about 7,800 tonnes, compared with 7,700 tonnes in March. Total SPVC production at the plant over the reported period reached 30,300 tonnes, compared with 31,300 tonnes year on year.


MRC

MOSCOW (MRC) -- Prices of film grade polyethylene (PE) went down significantly in the Russian high density polyethylene (HDPE) market in mid-May. Supply of film grade HDPE also grew greatly in the market, as per ICIS-MRC Price report.

Market participants said prices of film grade HDPE had slumped in the market since 15 May. Polyethylene (PE) prices dropped by Rb2,000-5,000/tonne from early May. At the same time, supply of PE by Russian producers increased significantly.

Large imports of cheap material shipped from Central Asia, particularly, from Uzbekistan (Uz-Kor Gas Chemical's PE), was one of the factors of a major price reduction of Russian film grade PE. This PE has begun to be actively shipped to the Russian market since the beginning of last year and occupied its niche. In early May, offer prices for Uzbek film grade HDPE reached Rb87,000-87,500/tonne FCA, including VAT, in the central part of Russia and in the Urals.

Some market participants said a major increase in supply, particularly, from Nizhnekamskneftekhim, was the second factor for lower PE prices. The Nizhnekamsk producer resumed its HDPE production this month, whereas it manufactured exclusively linear low density polyethylene (PE) since mid-January.

Under the pressure of all these factors, prices of Russian film HDPE of most suppliers fell to Rb88,000-90,500/tonne FCA, including VAT, depending on the region.
MRC

MOSCOW (MRC) — Chinese defense conglomerate China North Industries Group Corp (Norinco) has signed a framework agreement with state-run oil company Saudi Aramco to build a refinery and chemicals complex in northeast China, said Reuters.

The planned projects—including a 300-Mbpd refinery and an ethylene complex with an annual capacity of 1 MMt—are to be built at an estimated cost of 69.5 B yuan (USD10.09 B).

The framework pact, which follows a memorandum of understanding (MoU) in March, marks one of the high-profile agreements signed during China's Belt and Road Forum, the first summit under President Xi Jinping's ambitious plan to promote global trade and investment.

The investment would boost Aramco's presence in China's massive refining industry, adding to its 25% stake in the Fujian refinery in southeast China operated by state refiner Sinopec Corp.

Norinco, the state defense giant that also runs oil and gas businesses, won regulatory approval in 2015 to build the refinery and petrochemicals complex in Panjin, Liaoning province.

Industry analysts have cast doubt over the feasibility of adding a large plant in the region, which traditionally has surplus refining capacity and is far from the main consuming regions.
MRC

MOSCOW (MRC) -- CB&I has been awarded a contract by PT Petrokimia Butadiene Indonesia (PBI), a Chandra Asri Petrochemical Group company, for the license and engineering design of three proprietary technologies in West Java, Indonesia, said the company on its website.

The scope of work includes the license and engineering design of a CDMtbe unit, a Butene-1 recovery unit and a BASF SELOP selective hydrogenation unit as part of an expansion of PBI's petrochemicals facilities.

"This multi-technology contract underlines the confidence PBI has in our technology portfolio and further establishes our presence and leadership in the region," said Philip K. Asherman, CB&I's President and CEO.

CB&I is a leading provider of technology and infrastructure for the energy industry. With over 125 years of experience and the expertise of more than 40,000 employees, CB&I provides reliable solutions to our customers around the world while maintaining a relentless focus on safety and an uncompromising standard of quality.
MRC

MOSCOW (MRC) -- State-owned Hindustan Petroleum Corporation Ltd (HPCL) and its partner Lakshmi N Mittal will invest about USD3 bln in setting up a petrochemical complex at the Bhatinda refinery in Punjab, according to Plastemart.

HPCL-Mittal Energy Ltd (HMEL), a joint venture between HPCL and Mittal Energy Investments Pvt Ltd, Singapore, plans to set up an up to 1.2 mln ton naphtha cracker, expandable to 1.7 mt.

As MRC informed before, in August 2015, HPCL shelved a plan to build a refinery in Andhra Pradesh, although it went go ahead with a proposed petrochemical unit. The company’s oil refinery at Visakhapatnam is being expanded to almost double, obviating the need to add capacity in the state at present.

Hindustan Petroleum Corporation Limited (HPCL) is an Indian state-owned oil and natural gas company with its headquarters at Mumbai, Maharashtra and with Navratna status. HPCL has about 25% marketing share in India among PSUs and a strong marketing infrastructure. The Government of India owns 51.11% shares in HPCL and others are distributed amongst financial institutes, public and other investors.
MRC