S.Korean fuel oil exports to China rise, dent shipments from Singapore

MOSCOW (MRC) — Two South Korean refiners are exporting excess cargoes of residual fuel oil to nearby China, displacing some Singaporean sales of the commodity which can be used in ships and power stations, three trade sources said, said Hydrocarbonprocessing.

Scheduled maintenance work at S-Oil Corp's Onsan plant in September and a fire at GS Caltex's Yeosu refinery in August has curbed the facilities' capacity to refine residual fuel oil into other products, meaning they have been shipping excess cargoes to China, the sources said. They declined to be identified as they were not authorised to speak with media.

S-Oil did not respond to a request for comment, while a GS Caltex spokesman declined to comment. The sources estimate GS Caltex, the nation's No. 2 refiner, has exported between 100,000 t and 200,000 t of residual fuel oil as a result of the fire, mostly to China.

S-Oil, the country's third-biggest refiner, is estimated to have exported 120,000 t of 380-cantistoke fuel oil into China in September for use as a marine fuel through three 40,000-t cargoes. That has pushed out some exports from Singapore, the sources said.

"The drawing power from Singapore into the north seems less (after the secondary-unit closures at the two South Korean refineries)," said a Singapore-based fuel oil trader. GS Caltex is exporting most of its excess fuel oil cargoes since the unit shutdown to China at the expense of Singaporean exports to China, said a trade source in South Korea.

Fuel oil demand in China is being supported by increased run rates at independent refineries, said Nevyn Nah, oil products analyst at Energy Aspects. Those refiners use the product as a feedstock. He also noted that the lifting of China's annual fishing ban, starting from August through to September, depending on location, means more fishing boats will head out to sea, burning more fuel.

GS Caltex earlier in the month said it was unsure when it would be able to restart its 66,0000-bpd hydrocracker after the fire at the Yeosu plant. The company is equally owned by GS Energy Corp, a unit of GS Holdings and US oil major Chevron Corp.

S-Oil shut one of its hydrodesulphurization units for 25 days of planned maintenance in September. China is a net importer of fuel oil used as a refining feedstock or in refueling marine vessels.
MRC

MOSCOW (MRC) — Output cuts by OPEC and other oil producers are clearing a supply glut that has weighed on crude prices for 3 yr, ministers said at a meeting on Friday to review the pact that expires in March 2018, said Reiters.

The Organization of the Petroleum Exporting Countries, Russia and several other producers have cut production by about 1.8 MMbpd since January. The group is considering extending the deal beyond its March expiry, although two sources said Friday's gathering was unlikely to make a specific recommendation on an extension.

Ministers on a panel monitoring the pact, comprising Kuwait, Venezuela and Algeria, plus non-OPEC Russia and Oman, were meeting in Vienna after oil prices gained more than 15% in the past three months to trade above USD56/bbl. "Since our last meeting in July, the oil market has markedly improved," Kuwaiti Oil Minister Essam al-Marzouq said in an opening speech at the meeting he is chairing. "The market is now evidently well on its way towards rebalancing."

Russian Energy Minister Alexander Novak said OPEC and other producers now needed to work on strategy beyond March. "We need not only to keep up the pace but continue our coordinated joint actions in full, but also work out a strategy for the future, to which we will stick starting from April 2018,” he said, adding oil demand was rising at a "high pace."

Officials said before Friday's meeting that the Joint Ministerial Monitoring Committee would consider extending the supply cut pact. But two OPEC sources said the ministers were not likely to make a specific recommendation for an extension.

The committee can make policy recommendations for the wider group of OPEC and non-OPEC producers, which meets in November.
MRC

MOSCOW (MRC) -- January-August imports of expandable polystyrene (EPS) decreased by 3% in Russia to 14,000 tonnes from 14,400 tonnes a year earlier, according to MRC's DataScope report.

August EPS imports were 2,300 tonnes versus 2,500 tonnes a month earlier. Styrochem's imports were 680 tonnes last month versus 730 tonnes in July, Loyal's shipments grew to 600 tonnes from 320 tonnes in July, whereas Styrolution's imports fell to 310 tonnes from 400 tonnes a month earlier.

After a sharp increase in LG Chem's shipments in July, this producer's EPS imports also slumped last month to 110 tonnes versus 660 tonnes a month earlier.

Deliveries from China rose to 990 tonnes in August from 470 tonnes in July, accounting for 42% of the total EPS imports for the month.

In the total imports structure by producers, Styrochem's share increased to 35% in the first eight months of the year from 26% a year earlier, whereas Loyal's share dropped to 22% from 26%.

Prices for EPS sharply increased from European and Asian producers. Due to this fact EPS imports are expected to be cut in autumn.
MRC

MOSCOW (MRC) - Imports of suspension polyvinyl chloride (SPVC) into Ukraine practically remained at the last year's level at 72,400 tonnes, according to MRC DataScope.

August SPVC imports into Ukraine due to the increase in the local production decreased to 11,700 tonnes against 12,700 tonnes in July.
Local producers of plastic compounds have seriously increased the volume of purchases in Europe. Overall SPVC imports were about 72,400 tonnes in January-August 2017, compared to 72,300 tonnes a year earlier. Demand for suspension subsided from local producers of profile-moulded products, whereas demand for resin increased from producers of plasticized PVC.

Structure of PVC imports into Ukraine over the reported period was as follows.

Last month, imports of suspension PVC from the United States amounted to 7,800 tonnes against 7,700 tonnes in July, stable demand for the North American resin remained from the local producers of profiles. Imports of North American resin totalled 32,900 tonnes in January-August 2017 versus 43,200 tonnes a year earlier.

August imports of European PVC into the Ukrainian market dropped to 1,600 tonnes from 2,800 tonnes a month earlier. Strengthening the euro against the dollar made European purchases of resin for local companies less profitable, as well as the growth in the supply of resin from the Ukrainian producer influenced purchases in Europe. Overall imports of European PVC rose to 25,600 tonnes over the stated period, compared to 24,500 tonnes a year earlier.

Last month's SPVC imports from Russia dropped to 1,300 tonnes from 1,700 tonnes in July. Russia's imports of resin into Ukraine grew to 12,000 tonnes in Jan-August 2017, compared with 3,900 tonnes year on year.


MRC

MOSCOW (MRC) -- Overall imports of polyethylene (PE) into the Russian market increased in January-August of 2017 by 8% year on year to 379,800 tonnes. Imports of high density polyethylene (HDPE) and ethylene-vinyl-acetate (EVA) grew significantly, according to MRC's DataScope Report.

August PE imports into the Russian market rose to 52,700 tonnes from 48,300 tonnes a month earlier, with high density polyethylene (HDPE) accounting for the main increase in imports. Overall PE imports reached 379,800 tonnes in January-August 2017, compared to 353,200 tonnes a year earlier. The HDPE and EVA segments accounted for the increase in imports, whereas other PE grades accounted for the decrease in import shipments.

The structure of PE imports looked the following way over the stated period.

Last month's HDPE imports grew to 24,900 tonnes from 15,000 tons in July, local companies increased their purchasing of film grade and blow moulding HDPE in Uzbekistan and Ukraine. Overall HDPE imports reached 118,100 tonnes in the first eight months of 2017 versus 79,200 tonnes a year earlier.

August imports of linear polyethylene (LLDPE) amounted to about 12,300 tonnes against 17,500 tonnes a month earlier, local companies reduced the volumes of film polyethylene supply due to a serious increase in volumes of own production at Nizhnekamskneftekhim. LLDPE imports totalled about 121,000 tonnes in the first eight months of the year, compared to 146,000 tonnes a year earlier.

Last month's imports of low density polyethylene (LDPE) decreased to 7,000 tonnes from 7,800 tonnes in July, shipments of PE for paper lamination from Europe decreased. Overall LDPE imports decreased to 59,900 tonnes in January-August 2017 from 65,000 tonnes a year earlier.

August imports of EVA amounted to about 3,000 tonnes, which corresponds to the level of external supplies a month earlier. Imports of this ethylene copolymer grade grew by 22% over the stated period to 25,200 tonnes.

Imports of other ethylene polymers totalled about 30,600 tonnes, compared to 25,300 tonnes a year earlier.

MRC