BPCL sells its first low sulfur diesel cargo for export

MOSCOW (MRC) — Indian oil refiner Bharat Petroleum Corp Ltd sold a low sulfur diesel cargo through an export tender for the first time as its refineries upgrade units and due to higher inventory of the fuel, three industry sources said on Monday, as per Reuters.

The state-owned refiner, which was once a net importer of diesel, is typically well-balanced with its diesel stocks and rarely ships the fuel out of the country. India’s refiners have increased their diesel output and upgraded their plants to meet the new Euro IV fuel standards, which set the sulfur content of diesel at 50 parts per million (ppm), that were adopted in April.

A spike in domestic inventory is also contributing to the rare exports of the fuel, one of the sources familiar with the matter said. "Diesel demand in September was more than expected, but in October it’s down...so stocks are more," the source said, adding that monsoon season was still ongoing in certain parts of India.

Monsoon rains typically curb diesel use for irrigation pumps. While BPCL has exported higher sulfur gasoil grades in the past, this is the first time the refiner is exporting the 50-ppm sulfur diesel grade through a tender, the source added.

BPCL may have one more diesel spot cargo to export in November, the source said. In its latest tender, BPCL sold a combination cargo comprising 15,000 t of 350 ppm sulfur diesel and 20,000 t of 50 ppm sulfur diesel for loading from Mumbai over Oct. 21 to 25, the sources said.

The cargo was sold to Unipec at a discount of about $1 a barrel to Singapore quotes, they added.
MRC

SABIC appoints Abdulaziz al-Jarboo as chairman

MOSCOW (MRC) -- Saudi Basic Industries Corp (SABIC) has named Abdulaziz al-Jarboo to replace long-serving chairman Prince Saud bin Abdullah Bin Thenayan al-Saud, reported Reuters with reference to the company's statement.

SABIC, which aims to be the world’s third-biggest petrochemicals producer, makes plastics, fertilisers and metals for use in construction, agriculture and manufacturing.

The company added in a statement that two non-Saudis - Calum Mclean and Roberto Gualdoni - had also joined the board.

As MRC informed before, SABIC continued its global expansion with the inauguration of a new polypropylene (PP) pilot plant in Geleen, the Netherlands, in September 2017, and the announcement of a new investment in a state-of-the-art PP extrusion facility to be built at the same location.

Saudi Basic Industries Corporation (Sabic) ranks among the world's top petrochemical companies. SABIC is 70% owned by the Saudi Arabian government, with the remaining 30% of its shares publicly traded on Tadawul, the Saudi stock exchange. The company is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
MRC

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