Middle East, US crude oil curbs Indian appetite for African supplies

MOSCOW (MRC) — India's imports of African crude oil in October plunged to their lowest in over four years, with the world's No.3 oil consumer increasingly turning to cheaper supplies from the United States and heavier Middle Eastern grades, ship tracking data showed, as per Hydrocarbonprocessing.

US crude production has soared more than 14% since mid-2016 to 9.65 MMbpd, altering trade routes as its relatively cheap and light grades become a viable import option for Asian refiners. "Earlier in Asia, West African oil was competing with Middle East grades, but now it has a new competitor: the US," said Ehsan Ul-Haq, director of crude oil and refined products at consultancy Resource Economist.

Surging US crude output has made West Texas Intermediate (WTI)-linked American oil relatively cheap compared with the international benchmark, Brent, which has been propped up by supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC).

WTI has since October been trading at an average discount of USD6/bbl to Brent. "In the last few months, US oil gave tough competition to the African grades and the price difference (between WTI and Brent) was good enough to cover the freight," said R Ramachandran, head of refineries at Bharat Petroleum Corp.

US crude oil exports to India were unheard of until 2015, when Washington eased tight export restrictions in parallel with its growing output. Rising steadily this year, US oil in October accounted for about 3% of India's overall imports, while the share of African crude fell to about 10.5%, the lowest since November 2012, the ship tracking data in Thomson Reuters Eikon showed.

India's oil imports in October totaled 4.1 MMbpd, a decline of 15% over September, when they hit a monthly record. The imports were also 4.6% lower than a year ago. Of that, around 430,000 bpd came from Africa, the lowest level since March 2013.

Supply disruptions in Nigeria also dented its exports, forcing Indian refiners to seek supplies elsewhere. Last month, the share of the Middle East crude in India's overall imports rose to its highest in about a year, making up almost 70% of all supplies, the data showed, shipping over around 2.8 MMbpd.
MRC

ELIX Polymers renews environmental care efforts with commitment to Operation Clean Sweep

MOSCOW (MRC) -- ELIX Polymers, a leading producer of ABS resins and compounds, has joined Operation Clean Sweep (OCS), the international program designed to eliminate losses of pellets, flake, and powder and prevent these materials entering rivers and oceans, said the producer in its press release.

Marine litter is a global concern, affecting all the oceans of the world, and this specific program is a contribution to avoid this problem from plastics producers and converters.

This program, in combination with circular economy programs, intensive education, awareness actions and campaigns to the society, should prevent marine litter. The scope of this program is extended from polymer and compound producers, transporters, bulk terminal operators, processors and recyclers, covering every step of the supply chain. Joining the Ocean Clean Sweep program is only one of the efforts ELIX make to preserve the environment.

OCS is a voluntary stewardship program for plastics production and handling facilities administered jointly by the Plastics Industry Association (PLASTICS, previously SPI) and the Plastics Division of the American Chemistry Council (ACC). Founded just over 25 years ago in the USA, OCS is now taking on an increasingly global aspect. Its program is now being implemented in 23 countries around the world. In the European Plastics Industry, the implementation of the OCS program is coordinated by Plastics Europe. As ELIX Polymers is an associate member of Plastic Europe, it now gladly joins this program.

Operations Director David Castaneda confirmed ELIX Polymers’ adherence to the Operation Clean Sweep (OCS) program at a signing ceremony at its headquarters in Tarragona, Spain. He was accompanied by Ignacio Marco, Iberica Region Director for trade association PlasticsEurope.

OCS provides a manual, checklists, guidelines and other resources and tools designed to help companies keep plastics pellets, flakes and powder out of the environment.

"ELIX Polymers has a strong commitment to sustainability and the environment," says Castaneda. "Signing up to the OCS program is a further confirmation of that commitment. We will make a step forward by implementing the program within our organisation and our partners."

As MRC wrote previously, in 2016, ELIX Polymers unveiled an upgraded version of P2MC as well as new ABS grades to complete the plating portfolio. Target applications for these electroplating grades include radiator grilles, logos, profiles, tailgate handles, and decorative interior parts.

ELIX Polymers is one of the most important manufacturers of ABS resins and derivatives in Europe, with 40 years of experience in engineering plastics and an installed capacity of 180,000/year from their plant in Tarragona (Spain) to the world. The operation starts in 1975, when the Tarragona ABS and SAN production plant was inaugurated.
MRC

AkzoNobel completes expansion at US LeMoyne plant

MOSCOW (MRC) -- AkzoNobel’s Specialty Chemicals business has completed a USD10 million investment at its LeMoyne sulfur derivatives plant in the US, which supplies essential ingredients used in several major industries, said the producer on its site.

Located in Alabama, the investment includes a 20,000 dry metric ton expansion for the production of sodium hydrosulfide (NaSH), which the company supplies to customers in the paper, leather tanning, mining and specialty polymers segments.

"This is a key expansion which will help to support growing customer demand," explains Sulfur Derivatives General Manager, Ignacio Garin. "The LeMoyne facility employs unique AkzoNobel technology which provides NaSH at lower impurity levels and higher concentrations than competing processes, providing a significant sustainability benefit for customers."

AkzoNobel is the only company to produce a high strength, high purity NaSH at 60% concentration, which means the product qualifies as an eco-premium solution, offering advantages in terms of energy efficiency, emissions and waste water.

Commenting on the expansion, Werner Fuhrmann, AkzoNobel’s Executive Committee member responsible for Specialty Chemicals, adds: "This project is just the latest in a series of capital investments we have made to support the growth of our customers across a range of end-use markets. It also underlines our ongoing commitment to sustainability."

As MRC wrote previously, in December 2016, AkzoNobel finalized the acquisition of BASF’s global Industrial Coatings business, which supplies a range of products for industries including construction, domestic appliances, wind energy and commercial transport, strengthening its position as the global number one supplier in coil coatings.

Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.
MRC

HIPS and GPPS imports to Russia rose by 4% in the first ten months of 2017

MOSCOW (MRC) -- Overall imports of high impact polystyrene (HIPS) and general purpose polystyrene (GPPS) into Russia increased by 4% in the first ten months of the year to 40,300 tonnes, according to MRC's DataScope report.

Higher HIPS imports boosted the overall shipments, whereas GPPS imports have slightly decreased. October imports of GPPS into Russia grew by 10% to 1,870 tonnes, compared with 1,700 tonnes in September. The imports of Styrolution production material decreased to 320 tonnes against 420 tonnes a month earlier. Imports from China were 230 tonnes, compared to 540 tonnes in September.

Imports of general purpose polystyrene (GPPS) to the Russian domestic market decreased in the first ten months of 2017 by 3% year on year to 21,200 tonnes from 21,900 tonnes in a year earlier. Supplies from Styrolution reached 10,400 tonnes or 49% from the total imports of GPPS from the beginning of the year against 14,200 tonnes and a share of 65% in January-October of last year.


October imports of HIPS into Russia decreased by 33% to 1,360 tonnes, compared with 2,040 tonnes in September. In terms of producers last month, it is worth noting the reduction in shipments of Styrolution's material to 460 tonnes from 620 tonnes a month earlier. Overall HIPS imports rose by 12% year on year in the first ten months of 2017 to 19,100 tonnes from 17,000 tonnes a year earlier. As a result of ten months, the volume of imports from all major suppliers of HIPS increased to Russia.

Styrolution's shipments grew by 16% to 7,300 tonnes, compared to 6,300 tonnes a year earlier. Shipments of Italian Polimeri Europa grew by 17% to 5,400 tonnes, compared to 4,600 tonnes a year earlier. Converters directly purchased 15,900 tonnes or 84% of the total GPPS imports in January-October 2017.

MRC

Stavrolen resumed PE production

MOSCOW (MRC) -- Stavrolen, Russia's major polyolefins producer, has resumed production of high density polyethylene (HDPE) after a long scheduled turnaround, according to ICIS-MRC Price Report with reference to the plant's customers.

Stavrolen had partially resumed HDPE production capacities by 16 November, after conducting the long planned scheduled maintenance. A full resumption of operations at three units are scheduled for January 2018, whereas it is planned to load two-thirds of the plant's capacities at present.

The plant's customers said the first shipments of commodity polyethylene (PE) to the market are planned to be done already on 17 November. The scheduled shutdown started on 16 September and was initially planned to last for two months.

It is also worth noting that Gazprom neftekhim Salavat's HDPE production was shut for a one-week scheduled turnaround on 7 November. The start-up of the production took place as scheduled on 14 November.

Stavrolen, part of Lukoil, is Russia's second largest HDPE producer after Kazanorgsintez and the fifth largest polypropylene (PP) manufacturer. Stavrolen's production capacities for HDPE and PP are 300,000 and 120,000 tonnes/year, respectively.
MRC