PP imports to Belarus up 4.3% in January-September 2018

MOSCOW (MRC) -- Overall imports of polypropylene (PP) into Belarus grew in the first nine months of 2018 by 4.3% year on year, totalling slightly over 75,200 tonnes. The greatest increase in imports occurred for homopolymer PP, according to MRC DataScope.

September PP imports to the Republic of Belarus amounted to about 8,000 tonnes against 9,000 tonnes a month earlier, homopolymer PP supplies from Russia decreased due to restrictions on exports from local producers. Total PP imports into the country reached 75,200 tonnes in January - September, compared with 72,100 tonnes year on year. The demand for homopolymer PP increased, but demand for propylene copolymers decreased.

The structure of PP imports by grades looked the following way over the stated period.

September imports of homopolymer PP to Belarus decreased to 5,500 tonnes compared to 6,600 tonnes a month earlier, local companies faced significant restrictions on the supply of homopolymer PP from Russia in anticipation of a series of shutdowns for the prevention of local producers. Overall imports of homopolymer PP reached 51,400 tonnes in the first nine months of 2018, up by 6.8% year on year. Russian producers with the share of about 89% of the total shipments were the key suppliers.

September imports of propylene copolymers to Belarus were 2,500 tonnes versus 2,300 tonnes a month earlier, local companies increased their procurement of injection moulding statistical copolymers (PP random copolymers) in Europe. Overall imports of propylene copolymers reached 23,900 tonnes in January-September 2018, whereas this figure was 24,100 tonnes a year earlier.
MRC

PVC imports to Belarus rose by 0.6% in first nine months of 2018

MOSCOW (MRC) -- Imports of unmixed polyvinyl chloride (PVC) into Belarus grew in the first nine months of 2018 by 0.6% year on year to 25,700 tonnes, according to MRC's DataScope report.


According to the Statistical Committee of the Republic of Belarus, local converters reduced their purchasing of PVC to 2,600 tonnes in September 2018 from 3,200 tonnes a month earlier.

Thus, imports of unmixed PVC rose in the first nine months of 2018 to 25,700 tonnes from 25,500 tonnes a year earlier, with local windows producers accounting for a slight increase in demand.

Russian producers with the share of about 89% of the Belarusian market were the key suppliers of resin to Belarus over the stated period. Producers from Ukraine and Germany with the share of 6% and 3% were the second and third largest suppliers, respectively.

MRC

Shell adjusts German refineries output because of low Rhine level

MOSCOW (MRC) -- Royal Dutch Shell has recently adjusted output at its Godorf and Wesseling oil refineries in Germany because extremely low water levels on the Rhine were hampering barge traffic, reported Reuters with reference to the company.

Months of low water levels WL-KAUB have cut off key demand centers in Germany and Switzerland from coastal refining and storage hubs in the Netherlands and Belgium, wreaking havoc in the region’s oil market.

The Rhine’s low levels mean barges are unable to enter Wesseling harbour while Godorf harbour is also experiencing traffic limitations, a Shell spokeswoman said.

"We are utilizing all supply routes available to us and have adjusted production levels. We will continue to closely monitor the situation, she said."

The spokeswoman later added that the production adjustments were made a few weeks ago.

We remind that, as MRC informed earlier, in March 2018, Shell EP Middle East Holdings B.V. completed the sale of the entire share capital of Shell Iraq B.V (SIBV), which held its 19.6% stake in the West Qurna 1 oil field, for USD406 million, to a subsidiary of ITOCHU Corporation.

Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 70 countries and territories with businesses including oil and gas exploration and production; production and marketing of liquefied natural gas and gas to liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects.
MRC

Chevron granted waiver from US biofuel laws at Utah plant

MOSCOW (MRC) -- The US Environmental Protection Agency granted oil major Chevron Corp a 2017 hardship waiver from US biofuel laws for its Utah refinery earlier this year, reported Reuters with reference to a source familiar with the company’s operations.

Chevron, which reported a net income of USD9.2 billion in 2017, becomes the largest known company to be awarded a hardship waiver from the Renewable Fuel Standard (RFS), which requires refiners to blend biofuels like ethanol into their fuel pool or buy compliance credits from competitors that do.

The waivers, which have grown significantly under the Trump administration, have angered corn-belt farmers who say it hurts demand for ethanol and other biofuels.

"When an oil company whose net profits surpass the total value of the Iowa corn crop claims it is experiencing ‘hardship,’ you know we’ve reached a new level of absurdity," said Geoff Cooper, CEO of the Renewable Fuels Association.

California-based Chevron declined to confirm whether it received a small refinery hardship waiver but did say that seeking them can level the playing field.

"EPA has acknowledged that it has granted several small refinery exemptions from the RFS. Any Chevron refinery not exempted from the RFS would be at a disadvantage in the highly competitive markets where we operate," the company said in an emailed statement.

The EPA did not immediately respond to requests for comment.

Refineries with a capacity less than 75,000 barrels-per-day can receive waivers from the RFS if they prove compliance would cause them disproportionate hardship. Chevron’s Salt Lake City, Utah, plant is 54,000 barrels-per-day.

The EPA, under President Donald Trump, expanded the waiver program, awarding 29 exemptions for the 2017 calendar year, up from 19 in 2016 and just seven in 2015, EPA data shows.

The EPA has attributed the program’s expansion to a lawsuit brought by two oil refiners who challenged the EPA’s denial of their waiver request. A federal judge ruled the EPA was using too narrow of a test to evaluate applications.

Biofuel backers say the expansion was politically driven by former EPA administrator Scott Pruitt, who sought ways to lower compliance costs for refiners. The Chevron approval was granted under Pruitt, the source said.

The surge in hardship waivers has pummeled the price for compliance credits some refiners must buy.

Reuters previously reported that Chevron, along with Exxon Mobil Corp, sought a hardship waiver from US biofuel laws.

Exxon Mobil’s application status was unclear.

We remind that, as MRC wrote before, in March 2018, Chevron Phillips Chemical Company LP (part of Chevron) announced that it had successfully introduced feedstock and commenced operations of a new ethane cracker at its Cedar Bayou facility in Baytown, Texas. At peak production, the unit will produce 1.5 million metric tons/3.3 billion lbs. per year. This unit will be one of the largest and most energy efficient crackers in the world.

Headquartered in San Ramon, California, Chevron Corporation is the the second-largest integrated energy company in the United States and among the largest corporations in the world. Chevron is involved in upstream activities including exploration and production, downstream activities including refining, marketing and transportation, and advanced energy technology. Chevron is also invested in power generation and gasification processes.
MRC

Plastivaloire to acquire US auto parts rival TransNav

MOSCOW (MRC) -- French auto components moulder Groupe Plastivaloire is set to boost its industrial footprint in North America with the acquisition of its US rival TransNav Inc, USA, as per Plasticsnewseurope.

In October, Plastivaloire of Langeais, France signed a binding memorandum of understanding confirming the group would purchase 100% of the capital of the US parts moulder headquartered in New Baltimore, Michigan. Family-owned Plastivaloire, with 27 production and development sites, including plants in Tunisia, Turkey and Mexico, is awaiting approval for the deal from the US antitrust regulators. It expects a decision before the end of this year.

TransNav, run by the Dutch Vreeken family, operates three plants in Danville, Kentucky, at its New Baltimore base in Michigan and near Puebla, Mexico with a workforce of over 580. It has nearly 100 injection moulding machines from 20 – 4,400 tonne clamping force.

Eighty per cent of TransNav’s business comes from auto component production, supplying products such as moulded interior and external trim, wheel trim, and fuel tank parts to major US vehicle builders and global tier one suppliers.

TransNav is still growing and, according to Plastivaloire, is on course to achieve annual sales worth USD105m (EUR92m) in 2018.

Groupe Plastivaloire said this deal will establish it in the US for the first time, boosting its growth in North America in line with its strategy of internationalisation. Its takeover of TransNav will accelerate its annual sales which could now reach its 2020 target of EUR750m by the end of this year, the group said.

This will pass an “important milestone” on the way to Plastivaloire’s next goal of reaching a turnover of EUR1bn by 2025, according to its chief executive officer Patrick Findeling whose family manages the group.

The French company points to a number of valuable synergies achieved through its latest acquisition including the firms’ complementary client portfolios and shared technology expertise in tooling and complex injection moulding.

It will also complete the group’s market coverage in Europe and North America, positioning Plastivaloire at the heart of two Mexican vehicle manufacturing hubs with TransNav’s Puebla plant and its own existing operation at San Luis Potosi in central Mexico.
MRC