Solvay makes comeback into the Dow Jones Sustainability Index

MOSCOW (MRC) --Solvay has rejoined the World Dow Jones Sustainability Index (DJSI World), underlining the Group’s commitment to improve its performance in sustainable development as part of its business strategy, as per the company's press release.

"Solvay is very proud of this achievement which for us acknowledges how we have successfully integrated sustainability in the way we do business. Sustainability is part of Solvay’s overall performance as captured in the five quantified sustainability objectiveswe set two years ago to steer and monitor our progress. Today’s good news stimulates us to improve further," said Pascal Chalvon-Demersay, Chief Sustainability Officer at Solvay.

The DJSI World, the first global index to track the leading sustainability-driven companies, is a key reference for corporate sustainability.Solvay was in particular rewarded for the robustness of both its materiality analysis and its Sustainable Portfolio Managementmethodology which measures the impact of the Group’s business decisions.

As MRC wrote previously, in late December 2016, Solvay completed the sale of its 70.59% stake in Solvay Indupa to Brazilian chemical group Unipar Carbocloro, following the approval earlier this month of the Brazilian antitrust authority CADE.

Besides, earlier, in July 2016, Solvay completed the divestment of its shareholding in Inovyn (London), bringing to an end Solvay's chlorvinyls joint venture with Ineos. Solvay received exit cash proceeds amounting to EUR335 million (USD370.7 million). The dissolution of the jv follows regulatory clearances from the relevant authorities. Inovyn was formed on 1 July 2015 as a jv between Ineos and SolVin, a subsidiary of Solvay. Solvay and Ineos signaled their decision to end their chlorvinyls jv in March last year.

Solvay, with a market share 27%, is the second largest PVC manufacturer in Europe, after Kerling with 29% of the market. Solvay is headquartered in Brussels with about 30,900 employees spread across 53 countries. It generated pro forma net sales of EUR12.4 bn in 2015, with 90% made from activities where it ranks among the world’s top 3 players.
MRC

MOSCOW (MRC) - Ufaorgsintez "(UOS, a petrochemical asset of Bashneft, controlled by Rosneft) stopped the production of polypropylene (PP) for scheduled maintenance works, according to the ICIS-MRC Price Report.

On Monday, 11 September, Ufaorgsintez stopped the production of polypropylene for routine preventive maintenance. The outage will be short and will last 12 days.

As the enterprise's customers said, last Friday all shipments of polypropylene were stopped. The plant's annual production capacity is 120,000 tonnes.

As it was written earlier, Stavrolen shut its PP capacities for long preventive maintenance on 6 September.

Ufaorgsintez JSC produces phenol, acetone, synthetic ethylene-propylene rubber, high and low pressure polyethylene, polypropylene, more than 30 types of petrochemical products and over 25 consumer products.
MRC

Chinese producers traditionally were the key foreign PVC suppliers for the past several years. Last month's total imports of Chinese acetylene resin dropped to 2,300 tonnes from 7,000 tonnes a month earlier. Because of a major increase in export prices, Russian companies suspended their purchasing of resin in China back in the second half of July, and August shipments were in fact debts under contracts as of the first half of July.

Thus, imports of Chinese resin were 39,400 tonnes in the first eight months of 2017, compared to 76,000 tonnes a year earlier. An almost complete termination of acetylene PVC imports from China is expected in September-October because of local producers' high export prices (prices had risen to USD950-990/tonne DAP Dostyk by September).

There was a slight increase in SPVC shipments from the US in August - to 110 tonnes - from 88 tonnes a month earlier. Imports of North American PVC were 264 tonnes in January-August 2017, whereas last year's figure was 10,500 tonnes.

European producers shipped small quantities of suspension, overall imports of European PVC fell to 2,000 tonnes over the stated period from 4,900 tonnes a year earlier.

MRC

MOSCOW (MRC) -- Russia's overall production of unmixed polyvinyl chloride (PVC) grew in the first eight months of 2017 by 16% year on year, totalling 577,400 tonnes. Only two producers have grown resin production: SayanskKhimPlast and Kaustik (Volgograd), according to MRC ScanPlast.

August production of unmixed PVC in Russia dropped to 46,500 tonnes from 63,100 tonnes a month earlier, all producers, all three producers reduced production volumes: RusVinyl, SayanskKhimplast and Bashkir Soda Company reduced their PVC output.

Overall PVC production reached 577,400 tonnes in January-August 2017, compared to 499,300 tonnes a year earlier. Only two plants out of four increased their output, and this year's high level of production growth was caused by the long forced outage at SayanskKhimPlast in February-July 2016.

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

RusVinyl (JV SIBUR and SolVin) last month further reduced the capacity utilisation, in the last month of the summer the enterprise produced about 23,400 tonnes of polyvinyl chloride, of which about 1,800 tonnes of emulsion polyvinyl chloride (EPVC), against 24,700 tonnes a month earlier. Thus, RusVinyl's overall production of resin reached 203,800 tonnes in the first eight months of 2017 versus 209,400 tonnes a year earlier.

SayanskKhimPlast shut down its production capacities for a 30-day turnaround on 24 July. Thus, the plant's overall output reached 3,300 tonnes for the incomplete August, compared to 19,700 tonnes a month earlier. SayanskKhimPlast managed to produce 159,300 tonnes of resin over the stated period versus 62,800 tonnes a year earlier (the low output in 2016 was caused by the forced long outage from mid-February to July).

Bashkir Soda Company last month also shut its capacity for almost 10 days due to problems with ethylene supplies, as a result, PVC production amounted to only 12,100 tonnes against 10,800 tonnes in July (in July the enterprise shut its capacity for two-week prophylaxis). The plant's output of resin totalled about 152,900 tonnes in the first eight months of 2017, compared to 169,800 tonnes a year earlier.

Kaustik (Volgograd) slightly decreased its production last month, the plant's suspension PVC (SPVC) output slightly exceeded 7,700 tonnes versus 7,900 tonnes in July. The plant's overall production of resin reached 61,300 tonnes over the stated period, compared to 57,200 tonnes a year earlier.


MRC

MOSCOW (MRC) — Oil giant Saudi Aramco will on Wednesday add 1.9 MMbbl of crude to storage that it holds in Japan, a Japanese trade ministry official said on Monday, said Hydrocarbonprocessing.

The move comes as Japan from this month raises the crude storage capacity that it lends for free to the state-run Aramco by 30% to 8.2 MMbbl, based on a previous agreement between the two nations.

The extra storage, which the Japanese government announced in July, will help Saudi Arabia, the world's biggest oil exporter, as it battles to keep customers in northern Asia amid a global glut and relatively low prices.

In return for providing free storage on the southern islands of Okinawa, Japan gets a priority claim on the stockpiles in case of an emergency.

Saudi Arabia currently holds a total of 6.3 MMbbl of crude in Japanese storage, the trade ministry official said, declining to be identified.

Aramco could not be immediately reached for comment. Japan is Saudi Arabia's biggest market for crude, but oil stored at the site in Okinawa has also been supplied to South Korea and China among others.

State-owned Saudi Aramco has stored crude in Okinawa since early 2011 at no cost. The east Asian nation has a similar deal with Abu Dhabi National Oil Co (ADNOC), under which ADNOC can store up to 6.29 MMbbl at Kiire oil terminal in southern Japan's Kagoshima.

As Japan has a priority claim on the stockpiles, it treats the crude oil stored by Aramco and ADNOC as quasi-government oil reserves, counting half of the barrels as national crude reserves.

Aramco and ADNOC need to fill at least half of the storage space at all times.
MRC