PVC imports into Russia fell by more than three times in January - August 2018, exports grew by 28%

MOSCOW (MRC) -- Imports of suspension polyvinyl chloride (SPVC) into Russia decreased to about 13,500 tonnes in the first eight months of the year, which is more than three times lower than in the same time a year earlier. At the same time, Russian producers had to increase their exports by 28%, according to MRC's DataScope report.

August imports of suspension PVC practically remained at a level a month earlier and amounted to less than 800 tonnes. Thus, overall imports of PVC to Russia totalled about 13,500 tonnes in the first eight months of 2018, compared to 42,000 tonnes a year earlier.

At the same time, Russian producers began to ship resin for export more actively this year because of weak demand in the domestic market, export sales increased by more than a quarter. The key external suppliers of PVC are Chinese producers, the total volume of imports of acetylene PVC for eight months reached 11,500 tonnes against 39,400 tonnes a year earlier.

Lower domestic demand and the weakening of the rouble against the dollar helped Russian producers to increase their export sales, although export sales fell in summer.

About 5,000 tonnes were shipped to foreign markets in August (excluding deliveries to the countries of the Customs Union) versus 4,600 tonnes in July. 78,200 tonnes of SPVC were shipped for export in January-August 2018, compared to 61,300 tonnes a year earlier.


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MOSCOW (MRC) - Delta Air Lines has hired two investment banks to offer a stake in its Monroe Energy refining subsidiary, signaling it wants a partner to shoulder the risk of running an energy business, as per Reuters.

The Atlanta-based airline acquired the 185,000-barrels-per-day refinery in 2012 for USD150 million in a bet that it could lower its cost of jet fuel, among the highest expenses for any airline. The refinery also makes gasoline and diesel for profit.

The U.S refining industry has been consolidating into larger players that can use scale to lower their cost of buying raw materials and paying for regular overhauls. In the U.S. East Coast, four refineries closed in the past decade due to the rising costs of acquiring crude.

Ed Hirs, a professor of energy economics at the University of Houston, said the attempt to recruit a joint venture partner is no sure thing.

Delta defended its effort to bring in a partner.

It is planning to invest USD120 million in Monroe Energy’s Trainer, Pennsylvania, plant next quarter on maintenance and improvements. That overhaul will curb production for two months.

Delta has said the refinery’s purchase was more than a way to make a profit from the subsidiary, arguing that if the facility had closed it would have sent jet fuel prices higher across the Northeast, hurting the airline’s results.

But more recently Delta has run the plant like a traditional refinery, choosing to make more of whatever refined product offered the highest margin.

The company has hired investment banks Barclays and Jefferies to manage the sale process. The banks have already begun talking with potential suitors, according to sources familiar with the matter. It was not immediately clear what valuation the company has put on the stake offered.

Delta has grappled with the best way to manage Monroe.

Last year, it hired a consultant to evaluate the impact on jet fuel prices of any sale or closure of the refinery. The company downplayed the evaluation’s significance at the time, calling it routine.

East Coast refiners got a lifeline from the Bakken shale boom in North Dakota earlier this decade. Production there outpaced pipeline capacity, forcing producers to offer steep discounts to East Coast refiners like Monroe.

However, the discounts have vanished in recent years as more pipeline capacity came online in the upper U.S. Midwest. That forced Monroe and other U.S. East Coast refineries once again to buy higher priced crudes for their plants, reverting back to the poor economics that hurt them a few years earlier.
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MOSCOW (MRC) -- Lotte Chemical Titan said it has successfully begun commercial operations at its new polypropylene (PP) plant in Pasir Gudang, Johor, Malaysia, as per Apic-online.

The 200,000-t/y facility, known as PP3, will supply PP to the domestic market and for export.

Cost of the project was not given.

As MRC reported earlier, un January 2018, the company announced its catalytic cracking reactor within its TE3 expansion project in Pasir Gudang had begun commercial operations. The catalytic cracking reactor, based on KBR's cata-lytic olefins technology, is connected to an existing naphtha cracker plant.

The USD276-million project increased ethylene production capacity by 92,000 t/y, propylene capacity by 170,000 t/y and BTX (benzene, toluene and xylene) capacity by 134,000 t/y.

Lotte Chemical Titan produces Malaysia's most comprehensive portfolio of olefins and polyolefins which contribute to the enhancement of everyday life. Lotte Chemical Titan's production site in Malaysia consists of eleven process facilities, two co-generation plants and three tank farms. They are located on 2 sites in Pasir Gudang and Tanjung Langsat in the state of Johor. In 2006, Lotte Chemical Titan acquired PT Lotte Chemical Titan Nusantara, Indonesia’s first and largest polyethylene plant in the country. This acquisition boosted the polyolefins capacity by approximately 50%, thus making the company one of the largest producers in South East Asia. Lotte Chemical Titan was acquired by Lotte Chemical Corp., forming part of the Lotte conglomerate of Korea, in 2010. The company thus became one of Lotte Chemical Corp.’s largest overseas subsidiaries.
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MOSCOW (MRC) -- Johnson Matthey (JM) announced it has been awarded a contract by Methanex to supply a license for a 5,000 mtpd ATR methanol technology flowsheet, including associated engineering, proprietary equipment and catalyst supply, as per Hydrocarbonprocessing.

This is for the proposed third Methanex US methanol plant, a new build unit with a capacity of 1.8 million tonnes per annum. The facility will be located next to Methanex’s existing facilities in Geismar, Louisiana. Pending a final investment decision (FID), expected in mid-2019, this would be the eighth Methanex plant in operation today to use JM licensed methanol technology. Johnson Matthey has the leading methanol technology which has been licensed for more than 45 years with over 90 plant licenses granted in that time.

Johnson Matthey’s world-scale syngas generation technology options include steam methane reforming, combined reforming, ATR and gas heated reforming that allows bespoke designs unique to each customer’s project requirements “I’m delighted that Methanex has chosen Johnson Matthey’s technology for this potential third project in Louisiana. Having completed the initial engineering work, we will continue to support the project as it works towards FID. This is the continuation of a long-standing relationship over two decades between Methanex and JM relating to our catalysts and technology" said John Gordon, Managing Director at JM.

As MRC informed earlier, Johnson Matthey PLC (JMAT.LN) said Monday that Patrick Thomas will succeed Tim Stevenson as chairman effective July 26, when the latter will retire following a seven-year tenure. Mr. Thomas has been the chief executive and chairman of polymers company Covestro AG (1COV.XE) since 2015, Johnson Matthey said.
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MOSCOW (MRC) -- Clariant, a world leader in specialty chemicals, has announced that SABIC has received the final outstanding regulatory approvals from the competition authorities for the purchase of a 24.99% stake in Clariant, according to Hydrocarbonprocessing.

Therefore, an unconditional closing of the purchase will take place in the next days which makes SABIC Clariant’s largest strategic anchor shareholder, and second anchor shareholder beside the group of former shareholders of Sud-Chemie.

SABIC, the world’s third-largest diversified chemical company and a long-standing partner of Clariant in the Catalyst joint venture Scientific Design, entered into a purchase agreement regarding the acquisition of the stake in Clariant in January 2018.

"With SABIC receiving all the regulatory approvals and the transaction set to be completed, we look forward to further developing the strategic relationship between both companies in order to generate value for all stakeholders", said Hariolf Kottmann, CEO of Clariant.

Clariant and SABIC are discussing possible future collaborations that will generate value for the stakeholders of both companies. Any outcome of these discussions will be presented in due course.

As MRC wrote before, in January 2018, SABIC, a world leader in chemicals, agreed to acquire approximately 83 million shares in Clariant from 40 North and Corvex Management.

Saudi Basic Industries Corporation (Sabic) ranks among the world's top petrochemical companies. The company is among the worldпїЅs market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints. Clariant India has local masterbatch production activities at Rania, Kalol and Nandesari (Gujarat) and Vashere (Maharashtra) sites in India.
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