PP imports to Kazakhstan up 2% in January-September 2018

MOSCOW (MRC) - Imports of polypropylene (PP) into Kazakhstan exceeded 25,400 tonnes in first nine months of this year, up 2% compared to the same period of 2017. Export volumes remained unchanged, according to MRC analysts.

September PP imports into Kazakhstan decreased to 3,300 tonnes against 3,900 tonnes a month earlier, local converters reduced their purchases of PP in Russia. Overall PP imports into the country exceeded 25,400 tonnes in the first nine months of the year, compared to 24,800 tonnes a year earlier. Export sales of Kazakh polypropylene remained at the level of 2017.

The structure of PP imports by grades looked the following way over the stated period.
September imports of homopolymer PP into the country were about 2,000 tonnes compared with 2,700 tonnes in August. Local companies had faced with restrictions in the supply of homopolymer PP from Russian producers. Total PP imports into Kazakhstan exceeded 18,000 tonnes in the first nine months of 2018, up 19% year on year.

September imports of propylene copolymers remained at the level of 1,300 tonnes, which corresponds to the August figure. Total propylene copolymers imports into Kazakhstan were 7,400 tonnes in the first nine months of the year, down by 3% year on year.

Total PP exports from the country were about 18,400 tonnes in the first nine months of this year, the same figures as in 2017. Russian producers accounted for about 90% of the total imports.


MRC

MOSCOW (MRC) - Imports of unmixed polyvinyl chloride (PVC) into Kazakhstan dropped to about 33,700 tonnes in January-September 2018, down 19% compared with the same time a year earlier, according to MRC analysts.

There was a significant decrease in demand for PVC in September from local companies. September imports of unmixed PVC amounted to 1,400 tonnes against 2,400 tonnes a month earlier. Thus, overall imports of PVC to Kazakhstan totalled 33,700 tonnes in January-September 2018, compared to 41,700 tonnes a year earlier.

Such a high decline in imports was partly a result of the fall in the volume of PVC re-import to Russia. Re-imports of acetylene PVC into Russia were 4,400 tonnes in 2017, while in January-September it did not exceed 1,000 tonnes.

Due to the geographical position, the main suppliers of PVC to Kazakhstan were Chinese producers, with the share of about 77% of the local market over the stated period.

The second largest supplier of PVC is Russia, during the period under review, Russian PVC supplies reached 6,500 tonnes.
MRC
MRC

MOSCOW (MRC) -- Negotiations over November shipments of suspension polyvinyl chloride (SPVC) began in the Russian market on Monday, 29 October. Producers had to reduce prices for supplies to the domestic market, according to ICIS-MRC Price Report.

SPVC prices has steadily increased in the Russian market since the beginning of the year under the pressure of various factors, and November will become the first month in 2018, when consumers will see a price drop.
Negotiations on the November supply started on Monday, 29 October; the producers expectedly announced price cuts. The prices were heard by roubles (Rb) 2,000–4,000/tonne lower from October level. Contrary to the expectations of many converters, they did not manage to achieve a reduction in prices in October, as it had been in previous years.

The high export prices of acetylene PVC in China and the growth in export volumes have allowed Russian producers in some cases to achieve a rise in prices in the domestic market in October. The export volumes that have grown in the past few months have allowed Russian producers to balance the domestic market even taking into account weakening demand for PVC under pressure from the domestic consumer.

Supply of K70 PVC was even slightly tight in October. Nevertheless, despite the relatively good balance in the domestic market, Russian producers had to reduce PVC prices in November. This was partly due to external factors - SPVC prices are getting cheaper all over the world.

The demand for PVC from the domestic market is declining, and some converters hope to achieve a significant reduction in prices in November due to increased competition between producers.

Overall, November deals for K64/67 PVC were negotiated in the range of Rb74,000-76,000/tonne CPT Moscow, including VAT, for lots of less than 500 tonnes. K58/70 PVC was contracted at the prices, which were by on average of Rb1,000/tonnes higher.
MRC

MOSCOW (MRC) -- Emirates National Oil Company (ENOC) has scheduled month-long maintenance for November at its 140,000 barrels per day (bpd) condensate splitter in the United Arab Emirates (UAE), as per Reuters.

The planned maintenance will include the integration of a new crude distillation unit (CDU) pipeline that is expected to come onstream late next year, the sources said.

The sources declined to be identified as they were not authorised to speak with media. ENOC did not immediately reply to an email from Reuters on the matter.

The maintenance comes as companies including ENOC and South Korea's Hanwha Total are grappling with feedstock condensate supply tightness due to sanctions against Iran which will take effect this month.

ENOC had chartered at least one vessel to store jet fuel to ensure supply to airlines in Dubai, sources told Reuters last month.

It also has onshore tanks to store refined oil products, including gasoline and feedstock.

Separately, ENOC last month announced that it would be constructing a jet fuel pipeline that can carry 2,000 cubic metres of the aviation fuel per hour to Al Maktoum International Airport.

The 16.2-km (10-mile) jet fuel pipeline is expected to be operational in the first quarter of 2020
MRC

MOSCOW (MRC) -- U.S. crude oil inventories climbed for a sixth straight week, but grew less than forecast last week, amid a drop in net imports and the government's sale of barrels from its reserve, while gasoline and distillate stocks drew down, as per Hydrocarbonproceesing.

The Energy Information Administration said on Wednesday that crude inventories, excluding the Strategic Petroleum Reserve, rose 3.2 million barrels in the week to Oct. 26, less than analyst forecasts for a 4.1 million-barrel build. Much of that increase was in the Midwest, where stocks at the Cushing, Oklahoma, delivery hub rose 1.9 million barrels, the EIA said. That was also the sixth straight week of builds at the delivery point for U.S. crude futures.

Net U.S. crude imports fell last week by 639,000 barrels per day, as exports rose 305,000 bpd. Oil prices rose after the data, with U.S. heating oil prices leading the energy complex higher after a big decline in inventories.

"Bullish draws to the products have acted as a counterweight to bearish sentiment ... half of today's crude build was contributed from another SPR release," Matt Smith, director of commodity research at ClipperData. The U.S. Department of Energy (DOE) said in August it would offer 11 million barrels of oil for sale from the nation's Strategic Petroleum Reserve (SPR) ahead of sanctions on Iran that are expected to reduce global supplies of crude. The delivery period for the proposed sale of sour crudes is from Oct. 1 through Nov. 30.

Winners for the sale include ExxonMobil, Marathon Petroleum and Phillips 66, according to a notice from the DOE in early September. Traders said the SPR barrels have been hitting the market this month and data showed stockpiles in the SPR fell by about 1.6 million barrels last week, the biggest weekly drop since December 2017.

"PADD 3 stocks fell by 1 million barrels. It would've fallen by 2.5 million if not for the SPR," one trader said. Inventories in the Gulf Coast, or PADD 3 region, fell by 1.1 million barrels to 218.5 million last week.

Distillate stockpiles, which include diesel and heating oil, fell 4.1 million barrels, versus expectations for a 1.4 million-barrel drop, the EIA data showed. Gasoline stocks fell 3.2 million barrels, compared with analysts' expectations in a Reuters poll for a 2.1 million barrel drop.
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