Russian producers decreased December PVC prices

MOSCOW (MRC) -- Negotiations over December shipments of suspension polyvinyl chloride (SPVC) began in the Russian market this week. Expectedly producers had to reduce prices for supplies to the domestic market, according to ICIS-MRC Price Report.

SPVC prices reached the peak in the Russian market in October, and the traditional winter price fall began in November. November PVC prices decreased by roubles (Rb) 3,000–4,000/tonne from the October level.

Russian producers also had to cut December prices on average by Rb3,000/tonne. Demand for PVC from the Russian market began to decline in October under the pressure of the seasonal factor, and as a result, some producers increased exports volumes significantly.

October exports of suspension PVC from Russia exceeded 21,500 tonnes against 8,300 tonnes in September.
Total PVC exports from the country were about 109,700 tonnes in the first ten months of this year, up 52% year on year.

The demand for PVC from Russian consumers in a number of segments was at a high enough level in November as for the current time of the year. Some converters intend to keep large volumes of PVC purchases in December.

Nevertheless, despite the relatively good demand for PVC from the domestic market, Russian producers in November - December planned to increase exports further. In addition, there is an increased demand from some regions for Russian PVC. So, more than 11,000 tonnes of SPVC were shipped for export in the first half of November.

Some producers have significantly reduced their PVC stocks in the past few months on exports and intend to enter 2019 with minimal leftovers so as not to arrange so-called “winter programs” when significant discounts from current prices are given to large volumes of purchases. Overall, December deals for K64/67 PVC were negotiated in the range of Rb71,000-73,000/tonne CPT Moscow, including VAT, for lots of less than 500 tonnes.

Supply of K70 PVC has been tight for several months, and for December deliveries this material from a number of producers was on average by Rb2,000/tonne more expensive.
MRC

MOSCOW (MRC) -- Russia's overall production of polypropylene (PP) fell in January-October 2018 by 1% year on year, totalling about 1.148,700 mln tonnes. At the same time, only two Russian producers from seven ones decreased their PP output, according to MRC ScanPlast report.

October output of polypropylene by local producers decreased to 75,700 tonnes against 118,800 tonnes a month earlier, the most decrease accounted for Ufaorgsintez, Poliom, SIBUR Tobolsk and Stavrolen shutdown. Russia's overall PP production reached 1.148,700 mln tonnes in the first ten months of 2018, compared to 1.158,100 mln tonnes a year earlier. At the same time, only SIBUR Tobolsk and Ufaorgsintez reduced the operating time, while other producers managed to improve their output.

The structure of PP production by plants looked the following way over the stated period.

SIBUR Tobolsk shut capacities for the turnaround in October, total polypropylene production was 8,400 tonnes against 45,600 tonnes in September. The Tobolsk plant's total PP production reached 373,600 tonnes in the first ten months of 2018, down by 11% year on year. The decline in production was a result of two shutdowns for scheduled maintenances this year.

Omsk Poliom (Titan) in October produced about 11,600 tonnes compared to 18,000 tonnes a month earlier; the plant shut PP production capacities 10 days turnaround in the early October. Total PP production at the plant over the reported period was about 177,600 tonnes, up 2% year on year.

Nizhnekamskneftekhim produced 18,800 tonnes of propylene polymers in October versus 18,300 tonnes a month earlier. The producer's PP output increased to 179,500 tonnes in January-October 2018 compared with 175,300 tonnes year on year.

Tomskneftekhim last month produced about 12,800 tonnes against 11,900 tonnes a month earlier. The plant in the ten months 2018 produced 116,500 tonnes, practically the same as in 2017.

Ufaorgsintez's PP output fell to about 3,500 tonnes in October from 6,200 tonnes a month earlier, the producer shut down its production capacities for a month long turnaround on 20 September. At the same time, due to limitations in raw materials after repairs, capacity utilisation was cut. Overall output of polymer at the Ufa plant rose to 98,200 tonnes in January-October 2018, compared to 102,300 tonnes a year earlier.

Neftekhimiya (Kapotnya) last month produced about 11,900 tonnes of PP, compared with 9,400 tonnes in September. The plant's overall PP output reached 111,000 tonnes over the stated period, up 28% year on year. A low indicator of the current year was a result of a long scheduled maintenance works in March-April.

PP production at Stavrolen (LUKOIL) reached in October 8,700 tonnes against 9,500 tonnes a month earlier, the reduction in production was due to a halt for a week of turnaround. Overall production of propylene polymers at the Budenovsk plant reached 92,300 tonnes in the first ten months of 2018 against 85,000 tonnes year on year.


mrcplast.com

MOSCOW (MRC) -- Russia's production of polyethylene (PE) grew in the first ten months of 2018 by 3% year on year to 1,456,100 tonnes. Output of high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) increased, according to MRC's ScanPlast report.

October total PE production dropped to 109,800 tonnes, whereas this figure was 130,800 tonnes a month earlier. Scheduled shutdowns at Kazanorgsintez, Stavrolen and Ufaorgsintez was the main reason for lower output. Overall PE production reached 1,456,100 tonnes in January-October 2018, compared to 1,407,800 tonnes a year earlier. HDPE and LLDPE output increased, whereas production of low density polyethylene (LDPE) decreased.

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

October HDPE production fell to 64,200 tonnes from 79,200 tonnes a month earlier, Kazanorgsintez and Stavrolen shut down its production capacities for scheduled turnarounds in October. Russian plants' overall HDPE output reached 795,900 tonnes in the first ten months of 2018, up by 5% year on year.

Last month's total LDPE production was 45,600 tonnes, compared to 41,500 tonnes in September. Ufaorgsintez and Kazanorgsintez took off-stream their production capacities for maintenance in the first month of autumn. Overall LDPE output exceeded 517,200 tonnes over the stated period, down by 4% year on year.

Nizhnekamskneftekhim produced only the HDPE in October. Thus, overall LLDPE production reached 143,000 tonnes in the first ten months of 2018, up by a third year on year.

MRC

MOSCOW (MRC) -- Clariant, a world leader in specialty chemicals, announced today the expansion of the capacity of its ethylene oxide (EO) unit in Gendorf, Germany, said the company.

The investment positions Clariant to continue its successful development of innovative EO-based specialties to support a wide range of industries, such as personal and home care, crop solutions, and industrial applications. No further details of the investment will be disclosed.

“As a globally leading company for specialty chemicals, Clariant continues to invest also in our production network in Europe. I am confident that this sizeable expansion will support our strategic goal of intensifying profitable growth in both developed and emerging markets”, said Christian Kohlpaintner, member of Clariant's Executive Committee.

The expansion of Clariant’s state-of-the-art facilities at Gendorf will enable higher production yields, greater process reliability and enhanced product quality. An increase of High Purified Ethylene Oxide (HPEO) is expected to be available from 2020. Joao Tavares Correia, Head of the RBL EMEA region, Business Unit Industrial & Consumer

Specialties at Clariant, comments: “We are pleased to announce this strategic investment for Gendorf committing to the long-term growth of our customers across our different markets. With this capacity increase of High Purified Ethylene Oxide (HPEO), Clariant will continue to expand its market driven innovative portfolio of EO-based specialties.”
MRC

MOSCOW (MRC) -- ExxonMobil Basestocks announced several key developments at its Rotterdam refinery to meet the company’s most stringent base stocks manufacturing quality standards, supporting its final steps towards full stream production in the first quarter of 2019, said Hydrocarbonprocessing.

These developments are part of ExxonMobil’s commitment to product integrity and reliability at the refinery. “The Rotterdam refinery represents the first large-scale production of Group II base stocks in Europe,” said Pascal de Bast Thiers, business venture manager for the Rotterdam expansion project at ExxonMobil. “We are continuously exploring ways to strengthen our base stocks production cycle and are dedicated to providing our valued customers with the highest standards in customer service, brand and product integrity from the very start.”

Key developments at the Rotterdam refinery include: New lab facilities with state-of-the-art equipment to ensure accurate and timely product testing at every stage of base stock production. Official ISO 9001:2015 pre-certification as well as full compliance with ATIEL’s base stock slate definition – both are an integral part of the ExxonMobil global EHC Group II slate offer.

The implementation of ExxonMobil’s proprietary Global Brand & Product Integrity Management System (BPIMS) to help maintain base stocks quality throughout the entire production cycle, from feed all the way to product delivery.
A fully staffed team of experts ready to consistently deliver reliable products, services and experiences aligned with BPIMS standards.

ExxonMobil has completed several major field structure developments at its Rotterdam refinery since the project began in 2016. These latest measures are the final steps towards ensuring customers the highest quality of service, product integrity and reliability.

ExxonMobil will begin EHC™ production at its Rotterdam refinery following the completion of its hydrocracker expansion project at the end of 2018, with full commercialization of EHC™50 and EHC™120 targeted for the first quarter of 2019. Once the Rotterdam project is complete, ExxonMobil will become the largest Group I and Group II producer globally.
MRC