PP production in Russia grew by 4% in Q2 2017

MOSCOW (MRC) - Production of polypropylene (PP) in Russia increased to 715,800 tonne in first six months of this year, up 4% year on year, compared to the same period of 2016. The decrease in PP production accounted for only two producers, according to MRC ScanPlast.

June PP production in the country decreased to 124,100 tonnes, compared with 126,800 tonnes in May. Total PP production in Russia reached 715,800 tonnes in Jan-June 2017 against 689,400 tonnes, an increase showed all producers, except Nizhnekamskneftekhim and Neftekhimia.

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

The largest producer of PP in Russia - SIBUR Tobolsk in June produced about 44,000 tonnes against 46,700 tonnes a month earlier. SIBUR Tobolsk's PP production reached 264,500 tonnes in January-June 2017, up 14% year on year. Such a serious increase in production was a result of the absence of a shutdown for scheduled maintenance.

June production at Poliom were about 17,900 tonnes, while a month earlier this figure was 18,600 tonnes. Total PP production at the plant over the reported period was about 106,600 tonnes, up 4% year on year.

June PP production at Ufaorgsintez was about 11,000 tonnes, which was equal to the level in May. The producer's PP output at Ufaorgsintez increased to 63,200 tonnes in January-June 2017 compared with 58,100 tonnes year on year.

Stavrolen (LUKOIL) in June increased capacity utilisation, during the first month of the summer 10,900 tonnes of propylene polymers were produced against 10,600 tonnes a month earlier. Overall PP production at the plant exceeded 59,800 tonnes in January-June, up 4% year on year.

Tomskneftekhim decreased production volumes in June, and the final production of propylene polymers was 17,800 tonnes against 12,400 tonnes in May. Total PP production at Tomskneftekhim over the reported period reached 70,700 tonnes, compared with 66,600 tonnes year on year.

June PP production at Nizhnekamskneftekhim reached 17,800 tonnes from 18,100 tonnes a month earlier. The producer's PP production in January-June decreased by 1% from last year's level to 108,500 tonnes.

Neftekhimia (Kapotnya) has been actively increasing capacity utilisation following the turnaround in March-April. June PP production at the plant grew to 10,800 tonnes against 9,300 tonnes in May. The producer's PP output in the first six months of the year reached 42,500 tonnes, down 33% year on year.


MRC

MOSCOW (MRC) -- Overall imports of polyethylene (PE) into Belarus rose in the first five months of 2017 by 10.4% year on year, exceeding 50,100 tonnes. Imports of all grades of PE increased, with the exception of linear low density polyethylene (LLDPE), according to MRC DataScope.

According to the National Bureau of Statistics of Belarus, May 2017 PE imports to Belarus dropped to 8,800 tonnes from 9,800 tonnes a month earlier. The main decrease in supplies accounted for high density polyethylene (HDPE) from Russia. Overall PE imports reached 50,100 tonnes in January-May 2017, compared to 45,400 tonnes a year earlier. The greatest increase in external supplies accounted for low density polyethylene (LDPE).

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

May total LDPE imports grew to 3,100 tonnes from 2,100 tonnes a month earlier. Local companies decreased their PE purchasing in Russia and Azerbaijan. Overall imports of this PE grade into Belarus totalled about 14,100 tonnes in the first five months of 2017, compared to 9,200 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.

May LLDPE imports were about 2,900 tonnes versus 2,600 tonnes a month earlier. Thus, overall LLDPE imports to Belarus exceeded 17,400 tonnes in January-May 2017, whereas this figure was 20,100 tonnes a year earlier.

May imports of HDPE into Belarus decreased to 2,900 tonnes against 5,100 tonnes in April. Local companies decreased significantly their purchasing of film grade PE from Russian producers. Overall HDPE imports into the country were about 18,600 tonnes in January-May 2017, up by 15.2% year on year.


MRC

MOSCOW (MRC) -- Dutch paintmaker Akzo Nobel, grappling with the consequences of rebuffing a 26.3 billion euro (USD30.63 billion) takeover bid by U.S. rival PPG Industries, on Tuesday announced earnings below market expectations and said Chairman Antony Burgmans will resign at the end of his term in April 2018, as per Reuters.

Akzo said its core profit in the second quarter fell 6 percent to 461 million euros, due to weak demand in various markets and higher raw material costs.

Analysts polled by Reuters had forecast operating profit, excluding incidental items, of 496 million euros. Akzo Nobel reaffirmed its promise of better results, made when it rejected the bid by PPG earlier this year, a move which drew strong criticism from major shareholders.

Disgruntled shareholders, led by activist hedge fund Elliott Advisors, have been pushing for a shareholders meeting to vote on the position of Chairman Antony Burgmans, who they see as the mastermind of Akzo's refusal to talk to PPG.

Akzo said in a statement that Burgmans would step down when his current term ends in April 2018. Plans to spin off its Speciality Chemicals division were on track, the company added.

Last week, the maker of Dulux paints said it would replace chief executive Ton Buechner with chemicals division head Thierry Vanlancker, after Buechner abruptly resigned due to health reasons.

An extraordinary shareholders meeting was scheduled for Sept. 8 to vote on the appointment of Vanlancker and provide further explanations about its refusal of PPG and seek approval for the spin off of the special chemical business, it said.

Akzo Nobel said it has created a committee devoted to improving relations with its shareholders, with a team from JP Morgan Cazenove appointed as advisors.

As MRC informed earlier, AkzoNobel announced the acquisition of UK-based Flexcrete Technologies Ltd and an agreement to acquire French manufacturer Disa Technology (Disatech).

Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.
MRC

MOSCOW (MRC) — The Saudi Aramco Mobile Refinery (SAMREF) at Yanbu is operating normally after a fire hit a power transformer at the gate of the facility on Saturday, a spokesman for a Saudi government body was quoted as saying on the state news agency Reuters.

Operations are ongoing and have not been affected by the incident, which happened due to hot weather, Abdulrahman Al-Abdulqader, the spokesman for the Royal Commission for Jubail and Yanbu, which manages and operates industrial cities in Saudi Arabia. The fire broke out at 21:22 local time, according to the spokesman.

SAMREF is a JV between Saudi Aramco and US ExxonMobil which operates the 400,000-bpd crude oil refinery in Yanbu on the Red Sea coast of Saudi Arabia.

A SAMREF spokesman could not be immediately reached for comment.
MRC

MOSCOW (MRC) — India has decided to set up a panel headed by Finance Minister Arun Jaitley to expedite the sale of government's stake in refiner Hindustan Petroleum Corp to explorer Oil and Natural Gas Corp, Oil Minister Dharmendra Pradhan said, as per Indiatimes.

The Indian cabinet last week decided to sell the government's 51.1% stake in refiner and fuel retailer HPCL to oil producer ONGC. The panel "will help in taking quick decision with regard to the timing, price, terms and conditions and other related issues to the transaction," Pradhan told lawmakers in a statement.

Pradhan reiterated that the integration of the two companies will be completed in the current fiscal year. Post-acquisition by ONGC, HPCL can still retain its brand identity, he said.

The acquisition will help create a vertically integrated 'oil major' with a presence across the hydrocarbon chain. ONGC's margins have been hit by falling oil prices while improved gross refining margins and rising local fuel sales have help boost profits of HPCL.

"This will give ONGC an enhanced capacity to bear higher risks, take higher investment decisions and to neutralize the impact of global crude oil price volatility," Pradhan said.
MRC