Output of chemical products in Russia grew by 2.7% in January-September 2018

MOSCOW (MRC) -- Russia's output of chemical products dropped in September 2018 by 1% month on month. However, this figure increased by 2.7% in the first nine months of 2018, according to Rosstat's data.

According to the Federal Service of State Statistics, last month's production of basic chemicals decreased by 1% from August 2018, with benzene accounting for the main reduction. Overall production of chemical products grew in January-September 2018 by 2.7% year on year, with benzene accounting for the greatest increase in the output.

232,000 tonnes of ethylene were produced in September versus 243,000 tonnes a month earlier, Kazanorgsintez and Ufaorgsintez's production capacities were shut down for maintenance last month. 2,234,000 tonnes of this olefin were produced in the first nine months of 2018, up by 4.5% year on year.

Last month's production of benzene dropped to 104,000 tonnes from 115,000 tonnes in August. However, overall output of this product reached 1,069,800 tonnes over the stated period, up by 6,6%year on year.

September production of sodium hydroxide (caustic soda) was 102,000 tonnes (100% of the basic substance) versus 108,000 tonnes a month earlier, Bashkir Soda Company reduced its capacity utilisation. Overall production of caustic soda grew to 946,500 tonnes in January-September 2018, up by 3.5% year on year.

Last month's output of mineral fertilizers was 1,760,000 tonnes (in terms of 100% nutrients) versus 1,819,000 tonnes in August, Russian producers reduced their production of phosphate and potash fertilizers. Overall, Russian plants produced 17,224,000 tonnes of mineral fertilizers in the first nine months of 2018, up by 1.9% year on year. Nitrogen fertilizers accounted for the greatest increase in the output - up by 5.4% year on year.
MRC

MOSCOW (MRC) -- Kazanorgsintez (part of TAIF Group) resumed its high density polyethylene (HDPE) production after a scheduled turnaround, according to ICIS-MRC Price report.

Kazanorgsintez began a sequential launch of its production capacities last week after the scheduled maintenance. The plant's representatives said all three reactors had been launched by the beginning of this week.

The outage was not long and lasted for less than four weeks, the overhaul started on 26 September.

Kazanorgsintez's annual HDPE production capacity is 540,000 tonnes.

PJSC "Kazanorgsintez" is one of the largest producers of polyethylene (PE) and PE pipes in Russia and the only national polycarbonate (PC) manufacturer. The company's facilities produce more than 170 types of chemical products with a combined tonnage of over 1.3 million tonnes.
MRC

MOSCOW (MRC) - Imports of polyethylene (PE) into Ukraine decreased to 179,000 tonnes in the first nine months of 2018, up 3% compared to the same period of 2017. At the same time, a decrease in imports was seen in the segment of high density polyethylene (HDPE) and ethylene-vinyl acetate (EVA), according to the DataScope.

September PE imports to Ukraine decreased to 16,500 tonnes against 20,700 tonnes in August, the main reason for the decline in purchases is limited export quotas from producers in Europe and Russia. Total PE imports into the country exceeded 179,000 tonnes in January - September 2018, compared with 185,400 tonnes in the same time a year earlier. Imports of HDPE and EVA decreased, while demand for other ethylene polymers increased.

The supply structure by PE grades looked the following way over the stated period.

September imports of high density polyethylene (HDPE) decreased to 4,900 tonnes against 6,200 tonnes in August, the decrease in supplies accounted on polyethylene for the production of plastic bottles and film products from Europe. Overall HDPE imports reached 54,900 tonnes in the first nine months of the year, compared to 74,700 tonnes a year earlier.

Film grade HDPE accounted for the greatest reduction in imports (-60%), which was caused by the resumption of the local production.
September imports of low-density polyethylene (LDPE) decreased to 4,500 tonnes against 6,300 tonnes a month earlier, some companies reduced purchases of LDPE in Russia and the Middle East. Overall LDPE imports reached 59,500 tonnes over the stated period, up by 15% year on year.

September imports of LLDPE into the country decreased to 5,800 tonnes, compared with 6,200 tonnes in August on a weaker purchases from local producers of large items produced by rotational moulding. In general, January - September LLDPE imports into Ukraine increased to 55,400 tonnes compared with 49,300 tonnes year on year. The main increase in demand occurred for the local producers of the film production.

Imports of other grades of polyethylene, including EVA for the period under review reached about 11,700 tonnes against 11,900 tonnes a year earlier.


MRC

MOSCOW (MRC) -- Celanese Corporation, a global specialty materials company, рфы announced a capital efficient debottlenecking project of its polyoxymethylene (POM) production unit at the Industriepark Hochst (IPH) facility in Frankfurt, Germany to support the continued growth of its global engineered materials business, as per the company's press release.

"Celanese continues to exhibit its leadership position in the manufacture and compounding of highly engineered materials, such as POM, by adding this capacity to support growth in sophisticated, functionalized polymers," said Scott Sutton, Chief Operating Officer. "We will continue to partner with our customers to deliver innovative solutions to meet ever-increasing customer needs and respond to the changing complexity in high-performance polymers."

Celanese expects to expand the production capacity of its IPH unit by 20 kilotonnes, making this the world's largest and most efficient POM plant.

"As we expand our polyacetal capacity and manufacturing capability globally - with production facilities in every region of the world - Celanese continues to demonstrate the expertise needed to efficiently run the world's largest polymer and chemical facilities," said Jon Mortimer, Vice President, Global Manufacturing for Celanese. "The debottlenecking of our IPH POM unit further demonstrates not only our ability to respond to global customer demand, but also the knowledge and expertise of our engineering talent that enables these world-class projects and expansions."

Celanese expects to complete the POM debottlenecking project at the IPH facility in the next 18-24 months. Financial details of the project are not being disclosed at this time.

As MRC wrote previously, Celanese Corporation increased October list and off-list selling prices for Vinyl Acetate Monomer (VAM) sold in Europe, Middle East, Africa and the Americas. The price increases below were effective for orders shipped on or after October 1, 2018, or as contracts otherwise allow, and are incremental to any previously announced increases.

Thus, VAM prices rose, as follows:

- by EUR50/mt - for Europe, Middle East & Africa;
- by USD0.03/lb - for the USA and Canada:
- by USD65/mt - for Mexico & South America.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 7,600 employees worldwide and had 2017 net sales of USD6.1 billion.
MRC

MOSCOW (MRC) -- Overall imports of polyethylene (PE) into Belarus decreased by 7.6% year on year in the first eight months of 2018, reaching 75,800 tonnes. At the same time, local companies reduced purchasing of exclusively linear polyethylene (LLDPE), according to MRC's DataScope report.

According to the National Bureau of Statistics of Belarus, August 2018 PE imports to Belarus dropped to 8,100 tonnes from 8,900 tonnes a month earlier. Local companies reduced their purchasing of low density polyethylene (LDPE). Overall PE imports totalled 75,800 tonnes in January-August 2018, compared to 82,100 tonnes a year earlier. Demand for LLDPE subsided significantly, whereas demand for high density polyethylene (HDPE) increased.

The structure of PE imports to Belarus by grades looked the following way over the stated period.

August 2018 total LDPE imports dropped to 3,200 tonnes from 3,900 tonnes a month earlier. Overall imports of this PE grade into Belarus totalled 25,800 tonnes in January-August 2018, which virtually corresponded to the last year's figure.

HDPE imports decreased to 4,200 tonnes in the last summer month from 4,500 tonnes a month earlier. Local companies reported limited PE shipments from Russia. Thus, overall HDPE imports totalled 36,900 tonnes in the first eight months of 2018, up by 21.2% year on year.

Overall LLDPE imports reached 12,200 tonnes over the stated period, whereas this figure was 26,200 tonnes a year earlier.

MRC