China ethanol exports jump as Beijing boosts local output

MOSCOW (MRC) — China's ethanol exports soared in April from the same month the year before and imports slowed to a trickle, the latest sign that Beijing's drive to ramp up local output is upending trade flows in the world's fastest-growing biofuel market, said Reuters.

China has been pushing to erode a domestic glut in corn supply through steps such as using the grain to churn out ethanol or other products like biodegradable plastics.

The country exported 13,540 m3 of ethanol in April, up over 1,000% from a year earlier and 18% higher than the month before, data from the General Administration of Customs showed on Tuesday.

Traders said the reintroduction of an export rebate last year had revived foreign sales.

"This year there's a tax rebate of 13% and processors have subsidies," said a manager familiar with ethanol trade at trading company Zhejiang Materials. He declined to be identified as he was not authorized to speak with media.

In the first four months of the year, ethanol shipments jumped to 42,701 m3, exceeding the total for the whole of 2016.

Saudi Arabia remained the top buyer of the fuel in April, accounting for 66% of cargoes. Meanwhile, China imported just 23 m3 of ethanol last month, as a big hike in taxes at the end of 2016 hit overseas purchases.
MRC

MOSCOW (MRC) -- Kem One and Chemplast Sanmar have signed an agreement to establish Kem One Chemplast, a 50:50 joint venture to manufacture chlorinated polyvinyl chloride (CPVC) in India, as per Kem One's press release.

The new facility, for which approvals are in the process of being obtained, will come up at a coastal location at Karaikal, Puducherry, India. The project which is being set up at an estimated cost of Rs. 325 crores (about 48 MUSD) will have technology from Kem One and a capacity of 22,000 TPA of CPVC resins. It will also manufacture CPVC compounds.

Kem One is the second largest producer of PVC in Europe. Mainly located in France, it has 1300 employees and an annual turnover of EUR800 million. Its eight industrial sites manufacture a wide range of PVC resins, caustic soda and chlorine derivatives.

It builds on its knowledge of chlorochemicals and vinyl products inherited from a century-old history. By starting CPVC resins and compounds production in the 70’s in Europe Kem One has a strong expertise in CPVC industrial process. With this partnership with Chemplast Sanmar, Kem One is expanding its footprint in the fast growing Indian market.

Chemplast Sanmar, which will celebrate its Golden Jubilee in May 2017, is the flagship company of The Sanmar Group. It is a major manufacturer of PVC (polyvinylchloride) resins, caustic soda, chloromethanes, refrigerant gas and industrial salt. The addition of CPVC (a special type of PVC with added chlorine) would add to its already strong position in the Indian chemicals industry.

The Sanmar Group, of which Chemplast Sanmar is a constituent, has had a record number of joint-ventures in India. Its track record in joint-venture management has been among the best in the country. Some of these partnerships, which were established over 40 years ago, are still running successfully. The long lasting success of these joint-ventures reflects Sanmar’s avowed commitment to protecting its partners' interests in all aspects. Kem One Chemplast will be another addition to this list of successful joint-ventures.

CPVC is mainly used as a raw material to produce pipes and fittings for supplying water which requires heat resistance, pressure resistance and high tolerance for water treatment.

In recent years, there is a switch from metal to CPVC in pipes used in buildings in India, and in parallel, overall construction demand has also been witnessed. CPVC can also be used for industrial applications which require a high level of chemical resistance and for sprinklers. The demand for CPVC is expanding significantly and will continue to grow rapidly in India. The manufacturing joint venture company will thus provide the domestic answer to the Indian customers’ needs that is currently being met through imports.

The establishment of the manufacturing joint venture company mentioned above as Kem One Chemplast will be subject to approval from the competent authorities.

As MRC reported before, in late July 2015, The European Commission approved the acquisition of PVC compounds and profiles producer Kem One Innovative Vinyls, based in France, by OpenGate Capital Group Europe, the Luxembourg-based offshoot of US private equity group OpenGate Capital.

In 2013, previous owner Klesch Group placed Kem One’s upstream business, Kem One SAS, which includes PVC polymer plants in France and Spain, into receivership. This business was acquired by OpenGate in early 2014 in partnership with Alain de Krassny, president of Vienna-based Donau Chemie, who became president of Kem One. OpenGate and Krassny also had the option to acquire the downstream business, which was given clearance by the European Commission in an announcement on 7 July.

Kem One, a fully integrated vinyl production company, was established mid-2012 following the acquisition of Arkema's vinyl products division by the Klesch Group. The company employs 2,600 people at 22 manufacturing sites, primarily in Europe but also in Asia and North America. Europe’s third-largest producer of PVC, Kem One continues to grow and build on its numerous strengths with a view to becoming market leader for integrated vinyl solutions.
MRC

MOSCOW (MRC) - Production of low density polyethylene (LDPE) in Russia increased to about 221,800 tonne in the first four months of 2017, up 9% year on year. Gazprom neftekhim Salavat and Nizhnekamskneftekhim showed a decrease in production, according to MRC ScanPlast report.

April LDPE production in Russia was 45,100 tonnes, while in March it was about 59,600 tonnes. The reduction in output was a result of the long-term shutdown of Kazanorgsintez for scheduled maintenance in April-May. Overall LDPE output reached 221,800 tonnes in the first four months of 2017, compared to 203,300 tonnes a year earlier but not all producers had demonstrated a positive output dynamics.

Structure of LDPE production over the reported period looked as follows.

Tomskneftekhim produced about 23,200 tonnes of LDPE in April, while in March it was produced about 24,700 tonnes. The plant's LDPE output reached 88,400 tonnes in the first four months of 2017, up by 3% year on year.

April LDPE production at Kazanorgsintez decreased to 6,600 tonnes from 19,200 tonnes a month earlier on the back of scheduled shutdown.
The producer's total LDPE production was 66,400 tonnes in the first four months of the year, up 4% year on year.

Ufaorgsintez increased LDPE production to 8,300 tonnes in April, compared with 7,900 tonnes in March. Producer's production of LDPE totalled 32,900 tonnes in January - April of this year, down 2% year on year.

April LDPE production at Angar ZP decreased to 3,600 tonnes from 4,500 tonnes a month earlier. Angar ZP's LDPE production reached 20,700 tonnes in the first four months of the year, compared with 6,400 tonnes year on year. The low level the production in 2016 was a result of the long forced shutdown of capacities in February-July due to a breakdown in the ethylene production.

Gazprom neftekhim Salavat last month increased capacity utilisation, total LDPE reached 3,500 tonnes against 3,500 tonnes in March. Overall LDPE production at Gazprom neftekhim Salavat exceeded 13,400 tonnes over the stated period, down by 3% year on year.


MRC

MOSCOW (MRC) -- Oil giant Saudi Aramco is interested in a stake in India’s proposed 1.8 trillion rupee (USD27.87 bln) refinery in Maharashtra State, Indian Minister of Petroleum and Natural Gas Dharmendra Pradhan said, reported Plastemart.

The official said both Aramco and Abu Dhabi National Oil Co. (ADNOC) were in talks with New Delhi over investments in India’s energy sector. State-run Indian Oil, Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) plan to build the 60 million tpa (1.2 million bpd) refinery to meet rising domestic fuel demand. Indian Oil owns 50% of the project, while BPCL and HPCL have 25% each. The project is likely to be funded through 60% debt and 40% equity.

Aramco is interested in the West coast refinery, while ADNOC is interested in petrochemical projects, Pradhan said, without divulging the size of the stake the Saudi NOC might pick up. The mega complex will produce gasoline, diesel, LPG, jet fuel and petrochemical feedstock. It will be the South Asia country’s largest refinery when completed.

The first phase will set up 40 million tpa (800,000 bpd) of capacity with an aromatic complex, naphtha cracker and a polymer complex, and will carry a price tag of INR 1.2-1.5 trillion (USD18.58-23.22 bln). Once the land has been acquired the initial phase is expected to take five to six years to complete. The second phase, involving a 20 million tpa (400,000 bpd) refinery, will cost INR 500-600 bln (USD7.74-9.29 bln).

As MRC infromed before, in late June 2016, Saudi Arabian Oil Co. and Saudi Basic Industries Corp. (Sabic) became one step closer to building their first plant to process crude directly into chemicals, cutting out a link in the production chain from hydrocarbons to the finished products that go into plastics and other consumer goods. The state-owned companies signed an agreement to study such a project to be located in Saudi Arabia, they said in a statement. A joint venture is possible if the companies decide to move ahead after the study is completed by early 2017, they said. Oil companies normally refine crude into transportation fuels including gasoline and diesel and leave byproducts such as naphtha to be processed separately into chemicals.

Saudi Aramco is an integrated oil and chemicals company, a global leader in hydrocarbon production, refining processes and distribution, as well as one of the largest global oil exporters. It manages proven reserves of crude oil and condensate estimated at 261.1bn barrels, and produces 9.54 million bbl daily. Headquartered in Dhahran, Saudi Arabia, the company employs over 61,000 staff in 77 countries.
MRC

According to the National Statistics Committee of Belarus, March PE imports to Belarus virtually remained at the level of February and were 11,500 tonnes. Local companies offset lower shipments of linear low density polyethylene (LLDPE) by higher purchasing of high density polyethylene (HDPE) in Russia. Overall PE imports reached 31,500 tonnes in January-March 2017, compared to 24,400 tonnes a year earlier. Imports of all PE grades rose, with low density polyethylene (LDPE) accounting for the greatest increase.

The structure of PE imports to Belarus by grades looked the following way over the stated period.

March total LDPE imports decreased to 3,400 tonnes from 3,600 tonnes a month earlier. Local companies reduced their PE purchasing in Russia. Overall imports of this PE grade into Belarus totalled 8,500 tonnes in the first three months of 2017, compared to 4,100 tonnes a year earlier. An accident at the local producer's ethylene unit and, as a result, a major fall in capacity utilisation at LDPE production in the second half of the year was the main reason for such a great increase in imports.

March LLDPE imports were 3,800 tonnes versus 3,500 tonnes a month earlier. Thus, overall LLDPE imports to Belarus exceeded 12,400 tonnes in January-March 2017, whereas this figure was 11,500 tonnes a year earlier.

March HDPE imports grew to 4,200 tonnes from 3,500 tonnes a month earlier. Local companies increased their purchasing of film grade PE from Russian producers. Thus, HDPE imports totalled 10,600 tonnes in January-March 2017, up by 20% year on year.

MRC