PVC imports to Belarus rose by 45.6% in first eight months of 2017

MOSCOW (MRC) -- Overall imports of unmixed polyvinyl chloride (PVC) into Belarus grew in January-August 2017 by 45.6% year on year, totalling 22,300 tonnes, according to MRC's DataScope report.


According to the statistical committee of the Republic of Belarus, local converters maintained strong demand for PVC in August, total imports were 3,500 tonnes, compared to 3,600 tonnes a month earlier. Thus, PVC imports rose in the first eight months of 2017 to 22,300 tonnes from 15,300 tonnes in January-August 2016, with local window profiles producers accounting for the main increase in demand.

Russian producers were the key suppliers of resin to Belarus. They accounted for about 84% of the Belarusian market in the first eight months of the year. Producers from Germany with the share of about 13% were the second largest suppliers.

MRC

Chemicals production in Russia rose by 5.6% in January-September

MOSCOW (MRC) -- Overall output of chemicals increased in the first nine months of 2017 by 5.6% year on year, the largest increase in production volumes fell on caustic soda and mineral fertilizers, according to Rosstat.

According to the Federal Service of State Statistics, last month's production of basic chemicals grew by 6.5% from August 2017. Thus, the cumulative increase in the output of basic chemicals from the beginning of the year by 5.6%, the largest increase in output was in caustics and fertilizers, the smallest - ethylene.

September output of ethylene was 173,000 tonnes, compared to 228,000 tonnes a month earlier, lower production in last month was caused by a scheduled shutdown for maintenance at Kazanorgsintez, Nizhnekamskneftekhim and Stavrolen. Overall, over 2.14 m tonnes of this olefin were manufactured in the first nine month of 2017, up by 4.5% year on year.

Last month's production of benzene dropped to 94,600 tonnes from 110,000 tonnes in September, which was also caused by the outage at three plants. Overall output of this product exceeded 1.0 m tonnes over the stated period, up by 6.5%year on year.

September production of sodium hydroxide (caustic soda) were 99,400 tonnes (100% of the basic substance) versus 96,500 tonnes a month earlier. A small decrease in output last month was a result of a decrease in capacity utilisation at RusVinyl and Kaustik Volgograd. Overall output of caustic soda grew to 901,400 tonnes in January-September 2017, up by 8.1% year on year.

Last month's production of mineral fertilizers was 1.77 mln tonnes (in terms of 100% nutrients) versus 1.86 mln tonnes in August. Nevertheless, Russian plants produced 16.36 mln tonnes of fertilizers in January-September 2017, up by 9.4% year on year.

Production of all types of fertilizers increased, with potash fertilizers, the output of which grew by 14%, accounted for the greatest increase.
MRC

Kaustik, Volgograd resumed PVC production

MOSCOW (Market Report) -- Kaustik (Volgograd, part of Nikokhim group) resumed its polyvinyl chloride (PVC) production after a scheduled turnaround, according to the ICIS-MRC's Price report.

The plant's representative said works on the resumption of PVC production have begun since 18 September after a long outage for maintenance. The outage began on 25 September. The plant's annual production capacity is 90,000 tonnes.

This was the last scheduled turnaround at Russian PVC plants this year. Bashkir Soda Company and SayanskKhimPlast conducted turnarounds in July-August.

As reported earlier, Kaustik Volgograd's overall output of resin reached 67,700 tonnes in the first nine months of 2017, compared to 64,800 a year earlier.

PVC production was launched at Kaustik Volgograd in December 1972 with the assistance of the Japanese firm Kureh's specialists.

Nikokhim Group is one of the leaders of the Russian chemical industry, the main production assets of which are located in the southern industrial hub of Volgograd.

The holding company includes: JSC "Kaustik" - the principal plant of the group, manufactures basic products - caustic soda, chloroparaffins, synthetic hydrochloric acid, chlorine trademark, polyvinyl chloride, sodium hypochlorite, etc .; CJSC "NikoMag" - the production of anti-icing materials, magnesium chloride, magnesium oxide and hydroxide; Ltd.; "Zirax" - the production of high-purity reagents for various industries and "Poligran" - the production of plastic compounds and rigid PVC compounds.
MRC

Shin-Etsu Chemical announces plan to make new investments in its cellulose business in Japan and Europe

MOSCOW (MRC) -- Shin-Etsu Chemical Co., Ltd.will carry out ?20 billion in facility investments in order to further strengthen its cellulose derivatives business, said the company on its website.

The new investments will be put into effect at two of Shin-Etsu’s cellulose manufacturing bases – Shin-Etsu Chemical’s Naoetsu Plant in Joetsu City, Niigata Prefecture, Japan and SE Tylose GmbH & Co. KG in Wiesbaden, Germany, a 100%-owned subsidiary of Shin-Etsu Chemical. The investment projects are aimed for completion in mid-2019. By expanding its lineup of cellulose products, Shin-Etsu Chemical will capture the broad demand for cellulose products and aim for the further growth of its cellulose business.

Shin-Etsu Chemical began production of cellulose at its Naoetsu Plant from 1962. Since that time, Shin-Etsu kept on expanding this plant’s production capacity, and at the same time, in 2003, it acquired the cellulose business of Clariant AG (which became SE Tylose), as it continued to expand its cellulose derivatives business. Moreover, in 2016, Shin-Etsu further expanded its cellulose products production capacity when it began production of hydroxyethylcellulose (HEC), a type of cellulose derivative, at a newly constructed manufacturing facility in the State of Louisiana in the United States. At present, Shin-Etsu supplies its various cellulose products to its worldwide customers based on its production system of having tripolar bases in Japan, Europe and the United States.

Cellulose derivatives are water-soluble polymers whose principle raw material is cellulose pulp. Their main applications are in the areas of building construction materials and pharmaceuticals, and they are used as well in a wide range of other fields such as in foods, automobiles, personal care products and civil engineering.
MRC

MOL signs agreement with thyssenkrup for polyol project

MOSCOW (MRC) — Following the announcement made in July about entering into contracts with Evonik and thyssenkrupp to produce propylene oxide, MOL Group has reached the next milestone in its key strategic investment, said Hydrocarbonprocessing.

The additional agreement signed with thyssenkrupp Industrial Solutions (Thailand) Ltd will cover technological steps to convert propylene-oxide into polyether polyols and propylene glycols. The contract concerns the purchase of technology licenses, process design packages and front-end engineering design of the production units that convert propylene-oxide into polyether polyols and propylene glycols. Upon completion of the investment MOL Group is expected to become the main polyether polyol and propylene glycol producer in Central Europe.

The thyssenkrupp Polyol technology is based on its state of the art Jet Reactor design, which provides MOL the best available safety, quality, operability, flexibility and productivity. Front-end Engineering including necessary product testing will be delivered from thyssenkrupp’s technology and R&D centre for Oleochemicals in Thailand. The contract also contains a pre-agreement for thyssenkrupp to supply and install the Polyether Polyol plant.

In line with its 2030 strategy, MOL Group will move further along the petrochemical value chain towards semi-commodity and specialty chemicals products, transforming into a leading chemical group in CEE. Polyether polyols, which serve as feedstock for polyurethane foam, were identified as the main direction in MOL’s petrochemical expansion due to their wide applications in the automotive, construction, packaging and furniture industries. Through this key investment MOL will become the only integrated polyol producer in CEE.

Propylene glycols, which constitute an additional product line in the project scope, are propylene oxide derivatives produced by most of the major forward integrated propylene oxide producers. Propylene glycols have a wide range of applications including the production of unsaturated polyester resins (UPR), personal care and pharmaceutical additives and other industrial applications.

By signing this contract, MOL Group has secured all technology licenses and engineering resources for each production unit of the Polyol Project. The contracts previously signed in July concerned the purchase of technology licenses and process design packages for the hydrogen peroxide to propylene oxide technology of propylene oxide production.
MRC