Plasticizers DOP prices fell in the Russian market in October

MOSCOW (Market Report) - Prices for plasticizer dioctyl phthalate (DOP) decreased in October after reaching record high in September. The price drop made Rb10,000/tonne, as per MRC analysts.

The shortage of DOP in September led to record high prices in September. The deficit was a result of the shutdown of some producers in August, as a result of part of the debts under the August contracts was shipped in September.

The situation in the plasticizer market stabilised in October, and prices began to roll back.

Due to the deficit of DOP, prices in the beginning of September increased to Rb115,000-116,000/tonne, including VAT and delivery, for Russian and South Korean plasticizers.

Russian plasticizers have already fallen in price to Rb104,000-108,000/tonne in the early October, including VAT, and delivery.
MRC

PE production in Belarus down by 40% in first nine months of 2017

MOSCOW (MRC) -- Belarus's overall production of low density polyethylene (LDPE) totalled 45,200 tonnes in the first nine months of 2017, down by 40% year on year, according to MRC's DataScope Report. The local producer shut down some of its production capacitites for maintenance in October, reported MRC analysts.

According to the National Statistics Committee of Belarus, Polymir, the local LDPE producer, increased its capacity utilisation in September and produced 6,300 tonnes of LDPE versus 5,200 tonnes a month earlier. Thus, Polymir's total LDPE output was 45,200 tonnes in January-September 2017, compared to 75,700 tonnes a year earlier.

The fire at one of the ethylene units in late June 2016, which led to a two-fold reduction in the olefin production, was the main reason for such a major fall in the output.


It is also worth noting that the plant's clients said Polymir had shut down some of its production capacities for the turnaround by early October, the outage would last for about a month.

Polymir (part of Naftan) is Belarus' largest petrochemical company, producing a wide range of chemical products, such as low density polyethylene (LDPE), acrylic fibers, products of organic synthesis, hydrocarbon fractions, etc. Polymir was founded in 1968. The producer uses technologies of the largest foreign companies from Great Britain, Japan, Germany, Italy (Courtaulds, Asahi Chemical Co. Ltd, Kanematsu Gosho, SNIA BPD, etc.), as well as the developments of scientific research institutes and design institutes of the CIS countries. The plant's annual production capacity is 130,000 tonnes.

MRC

Oil rises as talk of new OPEC deal trumps record US exports

MOSCOW (MRC) — Oil prices rose on Thursday as signs Saudi Arabia and Russia would limit production through next year outweighed record US exports and the return of production at a major Libyan oilfield, said Hydrocarbonprocessing.

"Bullish comments from the Russian and Saudi Energy ministers are helping arrest the recent decline in oil prices," said Stephen Brennock, analyst at London brokerage PVM Oil Associates. Brent crude was up 70 cents at USD56.50 a barrel by 1340 GMT. US light crude was 40 cents higher at USD50.38.

Both crude benchmarks have fallen more than 5% over the last week as investors booked profits after almost three months of gains. Russian President Vladimir Putin said this week that a pledge by the Organization of the Petroleum Exporting Countries and other producers, including Russia, to cut oil output to boost prices could be extended to the end of 2018, instead of expiring in March 2018.

Russian Energy Minister Alexander Novak said on Thursday that Moscow would support new countries joining the agreement to restrict oil supply. The statement came as Saudi Arabia's King Salman visited Moscow.

"Putin and Salman will most likely reach, but not announce, an agreement to extend the OPEC/non-OPEC production deal, though with a commitment to taper the cuts," said Eurasia Group. The pact on cutting output by about 1.8 MMbpd took effect in January this year.

Despite this, other factors weighed on oil prices, including the return to production of Libya's Sharara oilfield after an armed brigade forced a two-day shutdown. Higher US oil exports also dampened market sentiment.

US crude oil exports jumped to 1.98 MMbpd last week, surpassing the 1.5 MMbpd record set the previous week, the Energy Information Administration said.

The increase followed a widening of the discount for US crude against Brent, making US oil attractive on world markets. Beyond short-term market drivers, analysts at Barclays said future oil demand could be undermined by improving fuel-efficiency and the rise of electric vehicles (EV).

"EV uptake and increased fleet fuel-efficiency could cut oil demand by around 3.5 MMbpd in 2025," the bank said. That is almost as much as major OPEC member Iran produces.

If the uptake of EVs rose to one third of new cars by 2040, as many industry analysts expect, up from just 1% now, that could "affect oil demand by around 9 MMbpd," Barclays said.
MRC

SIBUR, RDIF, Saudi Aramco and SABIC signed MOU on possible cooperation in Russia and Saudi Arabia

MOSCOW (MRC) -- SIBUR, the Russian Direct Investment Fund (RDIF) and Saudi Arabian Oil Company (Saudi Aramco) have signed a Memorandum of Understanding on possible cooperation and investment activities in Russia and Saudi Arabia, as per SIBUR's press release.

According to the Memorandum, the companies will estimate the potential of the petrochemical markets in Russia and Saudi Arabia and explore opportunities for future cooperation.

Dmitry Konov, Chairman of SIBUR’s Management Board, said, "Partnership with one of the largest petrochemical companies in Saudi Arabia will enable SIBUR to build up competencies, reach out to new sales markets and explore the promising Middle East market, a relatively new target for the Company. Combined expertise in implementing large-scale projects and entering new markets will further consolidate market leadership of both companies".

Kirill Dmitriev, CEO of RDIF, commented, "We are pleased to assist Russian business in developing relations with partners from Saudi Arabia, as well as in entering the extremely promising market of this country, which opens up additional export opportunities in other regions. Cooperation with Saudi Aramco, which has a strong resource base and experience in implementing large-scale investment projects for the high-quality production with high added value, will create all necessary conditions for effective implementation of mutual cooperation".

Amin Al-Nasser, President and CEO of Saudi Aramco, said: "This marks a new milestone in business relations and partnerships with our counterparts in Russia. The visit by The Custodian of The Two Holy Mosques King Salman bin Abdulaziz Al-Saud to Russia will further enhance ties and will foster collaboration among Saudi and Russian companies on various fronts."

A similar memorandum has been recently signed between SIBUR, Saudi Aramco and SABIC Industrial Investment Company (SABIC).

From SIBUR's side, Leonid Mikhelson, Chairman of the Board of Directors, and Dmitry Konov, Chairman of the Management Board, signed the document.

As MRC informed earlier, in late September 2017, Saudi Arabian Oil Co, the world’s biggest oil exporter, began talks with Sibur Holding, Russia’s largest petrochemical producer, about forming a joint venture to make synthetic rubber in the desert kingdom, according to two people with knowledge of the discussions, then said Bloomberg.

SIBUR is a vertically integrated gas processing and petrochemicals company. SIBUR owns and operates Russia’s largest gas processing business in terms of associated petroleum gas processing volumes and is a leader in the Russian petrochemicals industry. SIBUR operates 26 production sites in various regions of Russia. The Group employs 26,000 people. The Company sells its products to over 1,400 major customers engaged in the energy, automotive, construction, fast moving consumer goods (FMCG), chemical and other industries in approximately 70 countries worldwide.

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

Renewlogy joins Plastics-To-Fuel and Petrochemistry Alliance

MOSCOW (MRC) -- The American Chemistry Council’s (ACC’s) Plastics-to-Fuel and Petrochemistry Alliance (PFPA) today announced that Renewlogy, formerly PK Clean, will become its newest member, said Hydrocarbonprocessing.

Renewlogy, based in Salt Lake City, joins technology providers Agilyx, RES Polyflow, and Vadxx Energy in PFPA membership. Earlier this year Renewlogy announced plans to open a second facility in Canada that will be operational by early 2018.

In May, the Florida State House and Senate unanimously passed legislation that will help Florida meet its recycling goal and create new manufacturing jobs. The legislation classifies specified post-use plastics as “recovered materials,” so facilities which use technologies such as pyrolysis to convert those plastics into fuels, chemicals, and other feedstocks are classified as manufacturing and not as waste management facilities.

In April, Argonne National Laboratory, part of the US Department of Energy, concluded that using pyrolysis to convert post-use non-recycled plastics into ultra-low sulfur diesel (ULSD) fuel results in significant energy and environmental benefits. The peer-reviewed analysis found that this process can reduce greenhouse gas emissions by up to 14%, water consumption by up to 58%, and traditional energy use by up to 96% when compared to ULSD produced from conventional crude oil.
MRC