PVC production in Russia rose 16% in the first eight months of 2017

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

MOSCOW (MRC) -- Huhtamaki has completed the acquisition of International Paper's foodservice packaging operations in China, said the company on its web-site.

With the acquisition Huhtamaki expands its manufacturing footprint into the Eastern China region and strengthens its capacity and capability to serve customers operating in Northern China.

The acquisition comprises of two manufacturing units located in Shanghai and Tianjin, employing altogether approximately 200 employees. The net sales of the acquired business in 2016 was approximately EUR 19 million. The debt-free purchase price was EUR 15 million. The business will be consolidated into the Foodservice Europe-Asia-Oceania business segment as of September 1, 2017.

Huhtamaki is a global specialist in packaging for food and drink. With our network of 77 manufacturing units and additional 24 sales only offices in altogether 34 countries, we're well placed to support our customers' growth wherever they operate. Mastering three distinctive packaging technologies, approximately 17,400 employees develop and make packaging that helps great products reach more people, more easily. In 2016 our net sales totaled EUR 2.9 billion. The Group has its head office in Espoo, Finland and the parent company Huhtamaki Oyj is listed on Nasdaq Helsinki Ltd.
MRC

MOSCOW (MRC) -- Taiyo Vinyl is likely to complete turnaround at its polyvinyl chloride (PVC) plant at Chiba, reported Apic-online.

A Polymerupdate source in Japan informed that the company has planned to resume operations at the plant in mid-September 2017. The plant was taken off-line for a four-week maintenance on 17 August 2017.

Located in Chiba in Japan, the PVC plant has a production capacity of 90,000 mt/year.

As MRC informed earlier, in mid-April 2016, Taiyo Vinyl restarted its PVC plant following a maintenance turnaround. The plant was taken offstream in early March 2016. Located in Yokkaichi in Japan, the PVC plant has a production capacity of 310,000 mt/year.

Taiyo Vinyl Corporation, a subsidiary of Tosoh Group, is one of Japan's largest manufacturers of polyvinyl chloride (PVC). The plant in Chiba is one of the company's key assests, which supplies 50% of its products to the domestic market. The company also produces PVC at the plants in Yokkaichi and Osaka with the annual capacity of 310,000 and 150,000 tonnes, respectively.
MRC

MOSCOW (MRC) — Russia's top oil producer Rosneft plans to export a record 40 MMt of crude oil to China this year, Chief Executive Igor Sechin was quoted as saying on Sunday, said Hydracarbonprocessing.

Rosneft said previously it planned to ship 31 MMt of crude to China this year.

"In 2017 our company will deliver, according to our estimates, around 40 MMt of crude oil to China. It's a record volume," the RIA news agency quoted Sechin as telling Russian state television.

As MRC informed earlier, Rosneft has signed a contract to supply 96 MMt of crude oil to PV Oil, an affiliate of state oil and gas PetroVietnam, starting in 2017.

Rosneft became Russia's largest publicly traded oil company in March 2013 after the USD55 billion takeover of TNK-BP, which was Russia’s third-largest oil producer at the time.
MRC