HIPS and GPPS imports to Russia rose by 7% in the first nine months of 2017

MOSCOW (MRC) - Russia's imports of high impact polystyrene (HIPS) and general purpose polystyrene (GPPS) reached 37,000 tonnes in the first nine months, up 7% year on year on the back of an increase in imports of HIPS and slight decrease in imports of GPPS, as per MRC DateScope.

September GPPS imports were 1,700 tonnes versus 3,200 tonnes a month earlier. The imports of Styrolution production material decreased to 420 tonnes against 680 tonnes a month earlier.

Imports from China were 540 tonnes, compared to 780 tonnes in August. Imports of GPPS in January-September reached 19,300 tonnes, down 2% year on year.

Styrolution accounted for 10,100 tonnes or 52% from the total GPPS imports in January-September 2017. September HIPS imports were 2,000 tonnes, compared to 2,400 tonnes a month earlier.

Speaking about producers, it should be noted that the supply of Styrolution's material decreased to 620 tonnes against 890 tonnes in August and Iranian material imports in the amount of 200 tonnes against 20 tonnes for the entire period since the beginning of the year. Overall HIPS imports rose by 19% year on year in the first nine months of 2017 to 17,700 tonnes from 14,900 tonnes a year earlier.

As a result of three quarters, the volume of imports from all major suppliers of HIPS increased to Russia. Styrolution's shipments grew by 19% to 6,900 tonnes, compared to 5,800 tonnes a year earlier.

Polimeri Europa's shipments increased by 22% to 4,800 tonnes versus 4,000 tonnes, LG Chem's imports - by 6% to 2,500 tonnes versus 2,400 tonnes.

Converters directly purchased 14,700 tonnes or 83% of the total GPPS imports in January-September 2017. Demand for Russian HIPS and GPPS was strong in September.


MRC

HDPE production in Russia fell by 7.2% in the first nine months of 2017

MOSCOW (MRC) -- Russia's production of high density polyethylene (HDPE) decreased in the first nine months of 2017 by 7.2% year on year, totalling 714,200 tonnes. Gazprom neftekhim Salavat and Nizhnekamskneftekhim reduced their output, according to MRC's ScanPlast Report.


September HDPE production in Russia dropped to 66,500 tonnes, whereas this figure reached 73,800 tonnes a month earlier. Scheduled shutdowns for maintenance at the two largest plants - Kazanorgsintez and Stavrolen - was the main reason. Overall HDPE production reached 714,200 tonnes in January-September 2017, compared to 769,900 tonnes a year earlier. Only production at Kazanorgsintez increased, whereas Nizhnekamskneftekhim and Gazprom neftekhim Salavat showed a negative growth in their output.

The structure of polyethylene (PE) production by plants looked the following way over the stated period.


Kazanorgsintez's total HDPE output fell to 33,700 tonnes in September from 47,000 tonnes a month earlier, the Kazan plant began a gradual shutdown of its production capacities for a turnaround on 12 September. The Kazan plant's overall HDPE production was 397,000 tonnes in January-September 2017, up by 7% year on year.

Stavrolen produced 12,600 tonnes of HDPE last month versus 25,400 tonnes in August. Stavrolen shut its production for a two-month maintenance and modernisation of some of its production capacities on 16 September. The plant's output reached 206,100 tonnes in the first nine months of 2017, which corresponded to the figure of 2016.

Gazprom neftekhim Salavat produced over 11,300 tonnes of HDPE in September, compared to 1,400 tonnes a month earlier, the August low figure was caused by a long outage. Overall HDPE production at the Bashkir plant reached 64,200 tonnes in January-September 2017, down by 23% year on year.

Nizhnekamskneftekhim switched ot HDPE production only in late September and produced about 9,000 tonnes for the incomplete working month. The plant's overall HDPE production was only 46,900 tonnes in January-September 2017, compared to 108,700 tonnes a year earlier. Such a noticeable reduction in the output was caused by an increase in the share of linear low density polyethylene (LLDPE) in the total production.

MRC

PE imports to Russia fell 7% in first nine months of 2017

MOSCOW (MRC) -- Overall imports of polyethylene (PE) into the Russian market increased in January-September of 2017 by 7% year on year to 431,600 tonnes. Imports of high density polyethylene (HDPE) and ethylene-vinyl-acetate (EVA) grew significantly, according to MRC's DataScope Report.

September PE imports into the Russian market rose to 51,800 tonnes from 52,700 tonnes a month earlier, with high density polyethylene (HDPE) accounting for the main increase in imports. Overall PE imports reached 431,600 tonnes in January-September 2017, compared to 401,600 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 24,000 tonnes from 24,900 tonnes in August, local companies increased the volume of purchases of film HDPE in Uzbekistan and Ukraine, while demand for injection-moulded HDPE, on the contrary, was seriously reduced. Overall HDPE imports reached 167,000 tonnes in the first nine months of 2017 versus 112,900 tonnes a year earlier.

September linear polyethylene (LLDPE) imports into Russia decreased to about 13,200 tonnes against 12,300 tonnes a month earlier, local converters increased their purchases of injection moulding PE. LLDPE imports totalled about 134,200 tonnes in the first nine months of the year, compared to 164,500 tonnes a year earlier.

Last month's imports of low density polyethylene (LDPE) grew to 7,500 tonnes, compared to 7,000 tonnes in August, the volume of imports of polyethylene from Europe for paper lamination increased. Overall LDPE imports decreased to 67,400 tonnes in January-September 2017 from 71,600 tonnes a year earlier.

September 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 18% over the stated period to 27,200 tonnes.

Imports of other ethylene polymers totalled about 35,800 tonnes, compared to 29,700 tonnes a year earlier.


MRC

Singapore Exchange to launch SM and MEG swaps and futures contracts

MOSCOW (MRC) -- The Singapore Exchange (SGX) will be launching new styrene monomer (SM) and monoethylene glycol (MEG) swaps and futures contracts on October 23 this year, according to Apic-online with reference to SGX.

This will be the first time derivative contracts for SM and MEG have been offered by any clearing house in Singapore.

The swaps are to be traded in 500 mt lots, while the futures contracts will trade in 100 mt increments.

"SM and MEG have traditionally been traded on an over-the-counter (OTC) basis between counterparties," an SGX spokesman said.

Benefits of trading SM and MEG derivatives contracts on SGX include reduced counterparty risk, no delivery risks, as well as margin offsets with other SGX petrochemical products such as benzene, according to an SGX presentation.

"The correlation between SM and benzene is typically about 80%," an SGX spokesman said.

"SGX will also be able to provide a single clearing arrangement for clients to trade and clear with multiple counterparties," the spokesman said.

"Also, currently there is no clearing house that offers US dollar based SM and MEG derivative contracts. These new products will fulfill the industry's need for such risk management instruments," the spokesman added.
MRC

China Sept crude oil, gas imports jump ahead of winter fuel demand

MOSCOW (MRC) — China’s September crude oil imports climbed to the second highest level on record, while natural gas imports rose nearly 5%, official customs data showed on Friday, as the world’s top energy consumer shored up fuel supplies for winter, said Reuters.

For the year to date, gas imports were 48.38 MMt, up 22.3%, data from the General Administration of Customs showed. Gas arrivals last month reached 5.94 MMt, up 3.7% from a year ago and up 4.9% from August.

China is preparing to heat millions of homes with gas for the first time, which has stoked demand for LNG imports, as they are cheaper than domestic supplies.

"More demand for the clean fuel from winter heating and massive gasification projects, especially in provinces such as Hebei and Henan, will push imports to a fresh record in the fourth quarter," said Liang Jin, an analyst with commodities consultancy JLC said. Asian LNG spot prices LNG-AS have soared 57% since March to $8.50/MMBtu on growing demand for gas in the world’s second-biggest economy.

Crude oil imports C-CNIMP-PRM rose 12% in September to 37 MMt, or around 9 MMbpd, up from an eight-month month low in August, boosted by buying from China National Offshore Oil Corp’s new refinery and a fleet of independent refiners.

Year-to-date, crude buying rose 12% from a year ago to 318 MMt, or 8.5 MMbpd, a record high. “September imports were higher than expected. The support mainly comes from CNOOC’s Huizhou refinery which just started and some teapot plants returning from maintenance,” said Harry Liu, downstream expert with consultancy IHS Markit.

Liu expects imports through the fourth quarter to average about 8.6 MMbpd, with import growth to ease due to a domestic surplus of refined fuel. "The government’s fuel export quotas are having an impact on refinery throughput and subsequently on crude oil imports," he said.

Total oil product exports in September fell 11% to 3.82 MMt from a year ago and dropped 17% from August. The Commerce Ministry issued a fourth batch of refined product export quotas in late September to ease oversupply in the domestic market.

Major refiner Sinopec and PetroChina have applied for extra quotas to export more gasoline, diesel and jet fuel before the end of the year, sources told Reuters.
MRC