PE imports to Russia down by 2% in Jan-Nov 2018

MOSCOW (MRC) -- Overall polyethylene (PE) imports into the Russian market dropped in the first eleven months of 2018 by 2% year on year to 540,200 tonnes. At the same time, ethylene-vinyl acetate (EVA) shipments rose significantly, according to MRC's DataScope report.

November PE imports to the Russian market were 49,200 tonnes, which is almost equal to the last month's figure. Overall PE imports reached 540,200 tonnes in January-November 2018, compared to 553,500 tonnes a year earlier. EVA imports increased significantly, whereas imports of low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) decreased.

The structure of PE imports looked the following way over the stated period.


November high density polyethylene (HDPE) imports grew to 23,300 tonnes from 22,800 tonnes a month earlier, local companies slightly raised their HDPE purchasing in Uzbekistan. Overall HDPE imports reached 227,900 tonnes in the first eleven months of 2018, which virtually corresponds to the last year's figure.

Last month's LLDPE imports were 11,900 tonnes, compared to 11,200 tonnes in October, local companies increased their shipments of film grade PE. Overall LLDPE imports totalled slightly over 145,000 tonnes in January-November 2018 versus 166,600 tonnes a year earlier. Nizhnekamskneftekhim's increased output was the main reason for reducing dependence on imports.

November LDPE imports remained at the level of October - 6,700 tonnes. Overall LDPE imports totalled 77,100 tonnes over the stated period, compared to 82,600 tonnes a year earlier.

Last month's EVA imports fell to 3,700 tonnes, compared to 4,900 tonnes in October, demand for EVA for compounds production increased. However, imports of this ethylene copolymer grade rose by 33% in January-November 2018 to 44,200 tonnes.

Imports of other ethylene polymers were about 46,000 tonnes over the stated period, compared to 44,800 tonnes a year earlier.

MRC

Oil loadings resume to Russia's Afipsky refinery

MOSCOW (MRC) -- Oil loadings have resumed to the Afipsky refinery, Interfax news agency cited Russian pipeline monopoly Transneft as saying on Friday, reported Reuters.

The company also said it expected to resume loadings to the Antipinsky refinery soon, the agency reported.

As MRC informed before, Russia’s Afipsky, a mid-sized private oil refiner, suspended oil refining to carry out maintenance of its two crude units from Oct. 6-17, 2018.

Afipsky Oil Refinery Ltd. produces gas, diesel fuel, and fuel oil. Afipsky Oil Refinery Ltd. was formerly known as Afipsky Oil Refinery and changed its name to Afipsky Oil Refinery Ltd. in January 2002. The company was founded in 1975 and is based in Seversk, Russia. As of June 29, 2010, Afipsky Oil Refinery Ltd. operates as a subsidiary of OOO NefteGazIndustria.
MRC

PPG to acquire Whitford Worldwide

MOSCOW (MRC) -- PPG announced that it has reached a definitive agreement to acquire Whitford Worldwide Company, a global manufacturer that specializes in low-friction and nonstick coatings for industrial applications and consumer products, as per the company's press-release.

The transaction is expected to close in the first quarter 2019, subject to customary closing conditions. Financial terms were not disclosed.

"In one fell swoop, we will have access to new technologies, diverse R&D facilities, strong financial support and global coverage in areas where we have wanted to expand, but did not yet have sufficient resources. This is very good news for our customers and our employees."

"The acquisition of Whitford will allow PPG to further drive value for its customers and shareholders by enhancing our range of product offerings, research and development capabilities, and global market reach in the growing industrial coatings sector," said Michael McGarry, PPG chairman and chief executive officer.

Whitford, a privately held company headquartered in Elverson, Pennsylvania, was founded in 1969. The company specializes in manufacturing low-friction, wear-resistant coatings for industrial applications in automotive, aerospace, energy and construction products. Whitford also makes nonstick coatings for cookware, bakeware and small electric appliances such as toaster ovens, griddles, fry pans and irons. Whitford employs more than 700 people and operates 10 manufacturing facilities located in Elverson, PA, USA; Fostoria, Ohio, USA; Guelph, Ontario, Canada; Runcorn, UK; Brescia, Italy; Sao Paulo, Brazil; Jiangmen, China; Zhuhai, China; Tuas, Singapore; and Bangalore, India.

"Joining PPG is a giant step forward for Whitford,” added Dave Willis, Whitford’s founder and Chairman of the Board. “In one fell swoop, we will have access to new technologies, diverse R&D facilities, strong financial support and global coverage in areas where we have wanted to expand, but did not yet have sufficient resources. This is very good news for our customers and our employees."

"Whitford’s leadership in low-friction and nonstick coatings will provide strategic additions to the robust portfolio of industrial coatings solutions we deliver today, while PPG’s research and development organization will leverage Whitford’s extensive expertise in fluoropolymer chemistry across the markets we serve,” said Tim Knavish, PPG senior vice president, industrial coatings. “In addition, Whitford’s global footprint and customer-centric, high-touch business model are highly complementary to PPG’s business, allowing for a seamless integration process."
MRC

India did not let Russian-owned refinery buy Iranian oil: Iran minister

MOSCOW (MRC) - Iranian Oil Minister Bijan Zanganeh said that, because of U.S. sanctions, India had refused to allow a Russian-owned Indian refinery to use Iranian crude oil that India had obtained under waivers, as per Reuters.

Zanganeh was responding to a question in an interview on Iranian state television about why Iran had not bought refineries overseas. He said large investments were needed, and the refineries would be under the jurisdiction of the host country.

"Even if you own a refinery, ...it is under the sovereignty of the country where it is located.... For example, a Russian company has bought the Essar refinery in India. But it is not allowed to take oil from Iran,”"Zanganeh said.

"The Indian government had obtained a waiver (to import Iranian oil) but it uses it for its state refinery. It did not allow them (Russians) to take oil," Zanganeh said.

Indian officials could not be contacted for comment, following the late evening interview. Russian oil major Rosneft (ROSN.MM), fund UCP and Swiss commodities trader Trafigura bought Essar Oil’s large refinery, 3,500 fuel stations and infrastructure for USD12.9 billion last year.

U.S. President Donald Trump pulled the United States out of a multilateral nuclear deal with Iran in May and reimposed sanctions on Iran’s oil industry last month.
Washington had been pushing governments to cut imports of Iranian oil to zero, but fearing a crude oil price spike, it granted Iran’s biggest buyers - China, India, South Korea, Japan, Italy, Greece, Taiwan and Turkey - sanctions waivers.
MRC

Mexican government promises refinery tenders by March

MOSCOW (MRC) -- President Andres Manuel Lopez Obrador said on Sunday that Mexico would tender out the building of a refinery near the Dos Bocas oil port by March, part of his government’s plan to try to reduce the country’s gasoline imports, reported Reuters.

In a presentation in Tabasco state, where the refinery is due to be built, the government said the new oil refinery would process 340,000 barrels per day (bpd).

The refinery, which will cost about USD8 billion, should produce 170,000 bpd of fuel, including 120,000 bpd of diesel.

Afterward, Energy Minister Rocio Nahle said the government had not decided on the format for the contract for building the refinery. She added that the reduction in crude exports in order to refine in Mexico would be gradual.

As MRC informed before, Mexico’s next government plans to build what could be the country’s largest oil refinery, with construction set to begin as soon as next year, said president-elect Andres Manuel Lopez Obrador in September 2018. The winner of July’s presidential election is seeking to end Mexico’s massive fuel imports, nearly all of which come from the United States, while boosting domestic refining during the first half of his six-year term.
MRC