PVC imports to Ukraine down by 3% in January-October 2017

MOSCOW (MRC) - Imports of suspension polyvinyl chloride (SPVC) into Ukraine decreased by 3% in the first ten months of this year, compared to the same period in 2016 and reached 89,000 tonnes, according to MRC DataScope.

October SPVC imports into Ukraine due to the increase in the local production decreased to 6,500 tonnes against 10,100 tonnes in September.
Local producers of profile-moulded products reduced PVC purchases further on the seasonal factor. Overall SPVC imports were about 89,000 tonnes in January-October 2017, compared to 91,800 tonnes a year earlier. Demand for suspension subsided from local producers of profile-moulded products and pipes, whereas demand for resin increased from producers of plasticized PVC.

Structure of PVC imports into Ukraine over the reported period was as follows.


Last month's imports of US PVC amounted to about 4,100 tonnes against 7,800 tonnes in September 2017, as two of the largest producers of window profiles reduced their supply volumes significantly. Imports of North American resin totalled 44,600 tonnes in January-October 2017 versus 51,700 tonnes a year earlier.

October imports of European PVC into the Ukrainian market grew to 2,100 tonnes from 1,600 tonnes a month earlier. Overall imports of European PVC reduced to 29,400 tonnes over the stated period, compared to 33,800 tonnes a year earlier.

Shipments of PVC from Russia dropped to 260 tonnes against 640 tonnes in September, due to a deficit in the domestic market in the autumn months, Russian producers seriously cut their export sales. Russia's imports of resin into Ukraine grew to 12,900 tonnes in January-October 2017, compared with 5,600 tonnes year on year.


MRC

Chemicals production in Russia rose by 5.6% in ten months of 2017

MOSCOW (MRC) -- Overall output of chemicals grew in the first ten months of 2017 by 5.6% year on year, with mineral fertilizers accounting for the greatest increase in production, according to Rosstat.

According to the Federal Service of State Statistics, last month's production of basic chemicals rose by 2.6% from September. Thus, output of basic chemicals went up by 5.6% year on year in January-October 2017, with chemical fertilizers accounting for the greatest increase in production and ethylene - for the least growth.

October output of ethylene was 205,000 tonnes, compared to 173,000 tonnes a month earlier, last month's low production was caused by a scheduled shutdown for maintenance at Kazanorgsintez. Overall, over 2.35 mln tonnes of this olefin were produced in the first ten months of 2017, up by 2.8% year on year.

Last month's production of benzene increased to 114,000 tonnes from 94,600 tonnes in September, which was also caused by the outage at Kazanorgsintez and Nizhnekamskneftekhim. Overall output of this product exceeded 1.12 mln tonnes over the stated period, up by 6%year on year.

October production of sodium hydroxide (caustic soda) were 109,000 tonnes (100% of the basic substance) versus 99,400 tonnes a month earlier. RusVinyl increased slightly its output last month. Overall output of caustic soda grew to 1.01 tonnes in the first ten months of 2017, up by 8% year on year.

Last month's production of mineral fertilizers was 1.88 mln tonnes (in terms of 100% nutrients) versus 1.77 mln tonnes in September. However, Russian plants produced 18.24 mln tonnes of fertilizers in January-October 2017, up by 9.3% year on year. Production of all types of fertilizers increased, with potash fertilizers, the output of which grew by 13.8%, accounted for the greatest increase.
MRC

HDPE production in Russia fell by 8.4% in first ten months of 2017

MOSCOW (MRC) -- Russia's production of high density polyethylene (HDPE) decreased by 8.4% year on year in the first ten months of 2017 to 760,600 tonnes. All Russian producers reduced their output, with Kazanorgsitez being the exception, according to MRC's ScanPlast report.


October HDPE production in Russia fell to 46,400 tonnes, whereas this figure reached 66,500 tonnes a month earlier. Scheduled shutdowns for maintenance at the two largest plants - Kazanorgsintez and Stavrolen - were the main reason. Overall HDPE output reached 760,600 tonnes in January-October 2017, compared to 830,200 tonnes a year earlier. Only Kazanorgsintez increased its production, whereas other producers reduced their output because of different reasons.

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


Kazanorgsintez's total HDPE output fell to 16,800 tonnes in October from 33,700 tonnes a month earlier, the Kazan plant began a gradual shutdown of its production capacities for a turnaround, which lasted until 19 October, on 12 September. The Kazan plant's overall HDPE production was 413,800 tonnes in January-October 2017, up by 4% year on year.

Nizhnekamskneftekhim produced 17,800 tonnes of HDPE last month versus 9,000 tonnes in September (the Nizhnekamsk plant only switched to HDPE production in the second half of September). The plant's overall HDPE output was 64,700 tonnes in January-October 2017, compared to 117,800 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.

Gazprom neftekhim Salavat maintained high capacity utilisation in October and produced 11,800 tonnes of HDPE versus 11,300 tonnes a month earlier. Overall HDPE production at the Bashkir plant reached 76,000 tonnes in January-October 2017, down by 17% year on year. This year's low production was caused by a long shutdown for maintenance in July-August.

Stavrolen shut its HDPE production for a two-month maintenance and modernisation of some of its production capacities in mid-September. The resumption of operations started on 15 November. The plant's HDPE output reached 206,100 tonnes in the first ten months of 2017, down by 8% year on year.

MRC

Shell long-standing head of crude trading Muller quits

MOSCOW (MRC) — Royal Dutch Shell's head of crude oil trading Mike Muller, has stepped down after 29 yr with the company, an internal announcement reviewed by Reuters showed.

Muller, one of the world's most powerful oil traders, has relinquished his role with immediate effect and will leave at the end of the year "to pursue interests outside of Shell." His departure follows the appointment of Andrew Smith as Shell's new head of supply and trading earlier this year.

Mark Quartermain, currently head of refined products trading, has been appointed Vice President Trading and Supply Crude with effect from Dec. 1. Under Muller, a Cambridge university graduate, Shell expanded trading aggressively, handling as much as 8 MMbpd and often taking large position in core markets such as the North Sea, home to benchmark crude Brent.

Smith recently said trading was Shell's "nerve center" as it shifts millions of barrels of crude and refined products from fields to its refineries and consumers.

Though Shell does not disclose separately its revenue from supply trading, they often help offset declines in crude oil production when oil prices slump, as has been the case over the past three years, by making profits from price volatility and supply disruptions. Shell, the world's second largest publicly-traded oil company, traded more oil than any of its top rivals such as BP or trading houses Vitol or Glencore. Shell also helped Mexico hedge its oil output for 2017 and in 2018 become the first oil major to join the program, which has usually been dominated by big Wall Street banks.
MRC

Asian floating oil storage declines as crude market tightens

MOSCOW (MRC) — The amount of oil stored on tankers around Singapore has dropped sharply in the last months, the latest indication that OPEC-led supply cuts are successfully tightening crude markets even as US exports have soared, as per Reuters.

Shipping data in Thomson Reuters Eikon shows around 15 super-tankers are currently filled with oil in waters off Singapore and western Malaysia, storing around 30 MMbbl of crude. That is half the number of ships in June and down from 40 tankers holding surplus fuel in mid-2017.

The drop in floating storage around Asia's main oil-trading hubs comes in the wake of voluntary production cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and Russia as they look to choke off a supply overhang that has dogged markets for years.

"There are less incentives for traders to hold crude given rising crude oil prices and premiums. So to some extent, the OPEC cuts have worked," said Eng Hian, head of trading at Agritrade Energy in Singapore, which trades crude and oil products. The Agritrade group of companies also has a shipping arm that operates tankers used for storage.

Brent crude futures are up more than 40% since July to almost $64/bbl. Also, the Brent forward curve shows contracts for future delivery are cheaper than spot supplies, a condition known as backwardation which makes it unattractive to store oil.

"The (backwardation) structure has flushed out oil in storage," Eng Hian said.
MRC