August prices of European LDPE dropped for CIS markets

MOSCOW (MRC) -- The August contract price of ethylene was settled in Europe at the level of July.
However, European producers reduced their low density polyethylene (LDPE) prices for August shipments to the CIS markets, according to ICIS-MRC Price report.

Negotiations over August polyethylene (PE) shipments from Europe to the CIS countries began last week.
On the back of the ethylene price stability, most European producers announced a roll-over of July high density polyethylene (HDPE) prices for this month, whereas LDPE prices, on the contrary, went down.

Negotiations over August HDPE shipments were held in the range of EUR1,080-1,155/tonne FCA, which virtually corresponded to July prices. European producers had no major restrictions on August shipments, despite shutdowns for maintenance at a number of plants.

Prices of black PE 100 remained unchanged with a few exceptions, deals for August deliveries were discussed in the range of EUR1,360-1,415/tonne FCA. Most producers had no restrictions on shipments this month.

Deals for August shipments of European LDPE were negotiated in the range of EUR1,045-1,090/tonne FCA, whereas prices were at an average of EUR1,100/tonne FCA a month earlier.
MRC

China threatens retaliatory tariffs on US LNG

MOSCOW (MRC) - China proposed retaliatory tariffs on USD60 billion worth of U.S. goods ranging from liquefied natural gas (LNG) to some aircraft on Friday, as a senior Chinese diplomat cast doubt on prospects of talks with Washington to solve their bitter trade conflict, as per Hydrocarbonprocessing.

The Trump administration tightened pressure for trade concessions from Beijing this week by proposing a higher 25 percent tariff on USD200 billion worth of Chinese imports. China vowed to retaliate while also urging Washington to act rationally and return to talks to resolve the dispute.

The United States and China implemented tariffs on USD34 billion worth of each others’ goods in July. Washington is expected to soon implement tariffs on an additional USD16 billion of Chinese goods, which China has already announced it will match immediately.

China has now either imposed or proposed tariffs on USD110 billion of U.S. goods, representing the vast majority of China’s annual imports of American products. Last year, China imported about USD130 billion of U.S. goods.

China’s finance ministry unveiled new sets of additional tariffs on 5,207 goods imported from the United States, with the extra levies ranging from 5 to 25 percent.

Timing will depend on the actions of the United States, the Chinese Commerce Ministry said in a separate statement.

"The U.S. side has repeatedly escalated the situation against the interests of both enterprises and consumers," it said. "China has to take necessary countermeasures to defend its dignity and the interests of its people, free trade and the multilateral system."
MRC

U.S. refinery capacity virtually unchanged between 2017 and 2018

MOSCOW (MRC) -- As of January 1, 2018, U.S. operable atmospheric crude distillation capacity totaled 18.6 million barrels per day (MMbpd), a slight decrease of 0.1% since the beginning of 2017 according to EIA’s annual Refinery Capacity Report, as per Hydrocarbonprocessing.

Annual operable crude oil distillation unit (CDU) capacity had increased slightly in each of the five years before 2018.

Refinery capacity is measured in two ways: barrels per calendar day and barrels per stream day. Barrels per calendar day reflect the input that a distillation unit can process in a 24-hour period under usual operating conditions, taking into account both planned and unplanned maintenance. Barrels per stream day reflect the maximum number of barrels of input that a distillation facility can process within a 24-hour period when running at full capacity under optimal crude oil and product slate conditions with no allowance for downtime. Stream day capacity is typically about 6% higher than calendar day capacity.

The Refinery Capacity Report also includes information about secondary units—downstream refinery units that are used to process the products coming from the atmospheric crude distillation unit into ultra-low sulfur diesel and gasoline, as well as other products. Secondary refining capacity, including thermal cracking (coking), catalytic hydrocracking, and hydrotreating and desulfurization, increased slightly, up 1% from year-ago levels. These downstream capacity increases are primarily the result of changing processes that can increase refinery throughput rather than building new refining units.

The number of operating refineries decreased from 141 on January 1, 2017, to 135 on January 1, 2018, largely reflecting classification changes in EIA’s survey: four refineries previously considered separate in survey data were merged into two, and two refineries were reclassified from idle to shut down. Consequently, the decrease in the number of operating refineries does not necessarily represent a meaningful change in U.S. refinery operating capacity.
MRC

China tariffs on LNG, oil aim at U.S. energy dominance agenda

MOSCOW (MRC) - China's proposed tariffs on U.S. liquefied natural gas and crude oil exports opens a new front in the trade war between the two countries, at a time when the White House is trumpeting growing U.S. energy export prowess, as per Reuters.

China included LNG for the first time in its list of proposed tariffs on Friday, the same day that its biggest U.S. crude oil buyer, Sinopec, suspended U.S. crude oil imports due to the dispute, according to three sources familiar with the situation.

China announced retaliatory tariffs on USD60 billion worth of U.S. goods, and warned of further measures, signaling it will not back down in a protracted trade war with Washington.

That could cast a shadow over U.S. President Donald Trump's energy dominance ambitions. The administration has repeatedly said it is eager to expand fossil fuel supplies to global allies, while Washington is rolling back domestic regulations to encourage more oil and gas production.

“The juxtaposition here is clear: it is hard to become an energy superpower when one of the biggest energy consumers in the world is raising barriers to consume that energy. It makes it very difficult," said Michael Cohen, head of energy markets research at Barclays.

The United States is the world's largest exporter of fuels such as gasoline and diesel, and is poised to become one of the largest exporters of LNG by 2019. U.S. LNG exports were worth USD3.3 billion in 2017. China is the world's biggest crude oil importer.

China had curtailed its imports of U.S. LNG over the last two months, even before its formal inclusion in the list of potential tariffs. It had also become the largest buyer of U.S. crude oil outside of Canada, but Kpler, which tracks worldwide oil shipments, shows crude cargoes to China have also dropped off in recent months.
MRC

Ineos businesses sold to Valtris Specialty Chemicals

MOSCOW (MRC) -- Following clearance from the European Commission, INEOS Enterprises has confirmed it has concluded the sale of INEOS Baleycourt and INEOS ChloroToluenes (ICT) to Valtris Specialty Chemicals for an undisclosed amount, as per Hydrocarbonprocessing.

Valtris is owned by H.I.G. Capital, LLC, a global private equity investment firm with USD25 billion of equity capital under management.

INEOS ChloroToluenes is a leading producer of chlorinated toluenes and related derivatives used in coatings, flavor & fragrance, personal care and pharmaceutical applications. It has production facilities in Belgium and the Netherlands. INEOS Baleycourt produces high-quality products for the polymer additives, lubricant, renewable energy and food markets. It is based in northeast France. The combined businesses employ around 250 people and all will transfer as part of this deal.

Valtris is a leading global manufacturer of specialty chemicals primarily used as additives in the production and processing of plastics worldwide. The company serves diverse end markets including building products, packaging, consumer goods, transportation and oilfield additives. The acquisition of INEOS’ ChloroToluenes and Baleycourt businesses will create a global specialty chemicals business with a broad product portfolio, strong technical capabilities and world-class customer service.

Ashley Reed, CEO of INEOS Enterprises said, "We are proud of the accomplishments of INEOS ChloroToluenes and INEOS Baleycourt as part of the INEOS family. Both businesses have built industry leading businesses with reputations for product quality, service reliability and customer satisfaction. We are confident that the Valtris team are the right partners for both businesses and their employees."

Paul Angus, CEO of Valtris said, "INEOS ChloroToluenes and INEOS Baleycourt are highly strategic acquisitions with strong secular growth drivers that significantly enhance our product portfolio, expand our European presence and strengthen our technology and production capabilities. We are excited to offer our customers an even broader solution offering and pursue the attractive, new growth opportunities that the acquisitions create."

Keval Patel, Managing Director at H.I.G. said, "We are pleased to add ICT and BC to the Valtris platform. Both companies have achieved impressive growth and have capabilities that are highly complementary to Valtris. We look forward to continuing to support the Valtris team and are very excited about the future prospects of the business."

INEOS Baleycourt and INEOS ChloroToluenes are part of the INEOS Enterprises portfolio of business. INEOS Enterprises actively seeks market opportunities to acquire, develop and sell chemical businesses.
MRC