Output of products from polymers in Russia up 2.8% in Q1 2019

MOSCOW (MRC) -- Russia's output of products from polymers grew in March 2019 by 1.8% year on year. And this figure increased by 2.8% year on year in the first three months of 2019, reported MRC analysts.

According to the Russian Federal State Statistics Service, March production of unreinforced and non-combined films was 96,100 tonnes, compared to 83,900 tonnes a month earlier. Output of films products grew in the first quarter of 2019 by 8.8% year on year to 252,000 tonnes.

Last month's production of non-porous boards, sheets and films rose to 33,600 tonnes from 27,900 tonnes in February. Thus, overall production of these products reached 86,400 tonnes over the stated period, up by 16.8% year on year.

March production of non-porous boards, sheets and films was 19,900 tonnes, which equalled the figure a month earlier. Overall production of these products reached 59,500 tonnes in the first quarter of 2019, compared to 61,900 tonnes a year earlier.

Last month's production of plastic windows and door blocks was 1,5580,000 sq metres and 70,300 sq metres, respectively, versus 1,394,000 sq metres and 53,700 sq metres in February. Overall production of these products was 4,032,000 sq meters and 189,400 sq meters, respectively, over the stated period, up by 9% and 11% year on year, respectively.

March production of plastic bottles and flasks exceeded 1,800,000 items versus 1,550,000 items a month earlier. Overall output of these plastic products totalled 4,950,000 units in the first three months of 2019, compared to 4,530,000 units a year earlier.

Last month's production of polymer pipes, hoses and fittings was 39,700 tonnes versus 37,700 tonnes in February. Overall output of these products was 109,100 tonnes in the first quarter of 2019, up by 2% year on year.

March production of sacks and bags from ethylene polymers exceeded 1,990,000,000 units, compared to 2,100,000,000 units a month earlier. Overall output of these plastic products totalled 5,990,000,000 units in the first three months of 2019, compared to 5,810,000,000 units a year earlier.
MRC

Imports of PE to Ukraine up by 10% in Q1 2019

MOSCOW (MRC) -- Overall imports of polyethylene (PE) to the Ukrainian market grew in the first three months of 2019 by 10% year on year to 65,100 tonnes. Almost all grades of ethylene polymers accounted for the increase in imports, according to a MRC's DataScope report.


Last month's PE imports to Ukraine rose to 23,200 tonnes from 20,800 tonnes in February, with high density polyethylene (HDPE) accounting for the increase in shipments. Overall PE imports reached 65,100 tonnes in January-March 2019, compared to 59,100 tonnes a year earlier. Shipments of all grades of ethylene polymers grew, with HDPE accounting for the greatest increase.

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


Last month's HDPE imports rose to 10,300 tonnes from 6,500 tonnes in February, with pipe grade and film grade PE accounted for the increase in shipments due to the forced shutdown at the local plant in January-February. Overall HDPE imports reached 23,900 tonnes in the first three months of 2019, compared to 19,100 tonnes a year earlier.

March imports of low density polyethylene (LDPE) were 6,600 tonnes, which equalled the last month's figure. Overall LDPE imports reached 19,400 tonnes over the stated period, which corresponded to the last year's figure.

Last month's imports of linear low density polyethylene (LLDPE) were 5,200 tonnes, compared to 6,600 tonnes in February. Overall LLDPE imports rose to 18,300 tonnes in January-March 2019 versus 17,300 tonnes a year earlier.

Imports of other PE grades, including ethylene-vinyl-acetate (EVA), totalled 3,400 tonnes over the stated period, compared to 3,300 tonnes a year earlier.

MRC

PP imports to Ukraine rose by 11% in Q1 2019

MOSCOW (MRC) -- Overall polypropylene (PP) imports to the Ukrainian market totalled 31,500 tonnes in the first three months of 2019, up by 11% year on year. The increase in imports occurred only for homopolymer PP, according to MRC DataScope.

March PP imports into Ukraine rose to 11,900 tonnes from 11,400 tonnes a month earlier, with propylene homopolymer (homopolymer PP) accounting for the main increase. Overall imports of propylene polymers reached 31,500 tonnes in January-March 2019, compared to 28,400 tonnes a year earlier. The volume of homopolymer PP imports increased, while the demand for propylene copolymers decreased.

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

March imports of homopolymers of propylene to the Ukrainian market grew to 9,700 tonnes from 9,100 tonnes a month earlier, local companies increased purchasing of homopolymer PP raffia in the Middle East. Overall shipments of homopolymer PP reached 24,500 tonnes in the first three months of 2019 versus 20,300 tonnes a year earlier.
Last month's imports of block propylene copolymers (PP block copolymers) were 800 tonnes, compared to 1,100 tonnes in February. 2,900 tonnes of PP block copolymers were imported over the stated period, whereas this figure was 3,300 tonnes a year earlier.

March imports of PP random copolymers were about 1,300 tonnes versus 1,100 tonnes a month earlier. Overall imports of PP random copolymers exceeded 3,500 tonnes in January-March 2018, whereas this figure was 4,300 tonnes a year earlier. Overall imports of other propylene copolymers were about 500 tonnes over the stated period.
MRC

Revenue down for PolyOne in first quarter, job cuts coming

MOSCOW (MRC) -- Material supplier PolyOne Corp. failed to meet analyst estimates in its first quarter 2019 report, with revenue for the quarter coming in at USD900 million, flat with the prior year as growth from acquisitions of 3.5% was offset by a 1.5% reduction in organic sales and a 2% impact due to unfavorable foreign exchange, said Canplastics.

As a result, the Avon Lake, Ohio-based company has announced plans to cut an unspecified number of jobs. "Like many companies in our space, we experienced weaker demand in certain end markets and unfavorable foreign exchange during the first quarter – this resulted in a year-over-year decline in sales and earnings,” said Robert M. Patterson, chairman, president, and CEO of PolyOne. “Key drivers included lower automotive sales in Europe and China which impacted Color, Additives and Inks (Color) and Specialty Engineered Materials (SEM), and a decline in construction related sales, which primarily impacted Performance Products and Solutions (PPS) in North America."

On the plus side, PolyOne’s composite sales increased 10% organically driven by new business in consumer and electrical end markets. “Combined with strong performance from [our] January 2019 acquisition of Fiber-Line, composites-led growth added 17% to SEM operating income over the prior year first quarter,” Patterson said. “Fiber-Line had the best quarter in its history as a result of the continued build-out of 4G and emerging 5G network infrastructure."

"We believe the current market challenges are temporary, and we will see a recovery in the second half of the year,” Patterson added. “While we are encouraged and optimistic, we are not waiting for market improvement to unfold. Accordingly, we have taken actions to reduce costs primarily through targeted workforce reductions and limiting discretionary spending. We believe these actions are prudent in the short term, but also balanced, as we are not curtailing our ability to deliver for the long term. We are continuing to invest in key end markets and innovation, and as this quarter has demonstrated, our investments in composites and sustainable solutions are paying off."
MRC

Indian refiners turn to OPEC, Mexico, US to make up Iran oil gap

MOSCOW (MRC) -- Indian refiners are increasing their planned purchases from OPEC nations, Mexico and the United States to make up for any loss of Iranian oil if the US enforces sanctions more harshly from next month, reported Reuters with reference to sources and company officials.

All four Indian state-owned refiners that buy Iranian oil are confident of securing additional barrels from other producers, officials from the companies told Reuters.

The state refiners have not yet placed orders for Iranian oil for May, when the current waiver expires, pending clarity from the United States.

India’s Bharat Petroleum Corp (BPCL) and Mangalore Refinery and Petrochemicals Ltd (MRPL) have tapped Iraq to make up for Iranian oil, while Indian Oil Corp (IOC) has signed its first annual contract with US suppliers and raised supplies from Mexico.

"There will be no supply constraints. The supply can come from both OPEC and non-OPEC nations like the US," said M. K. Surana, chairman of Hindustan Petroleum Corp, which purchased up to 1.5 million tonnes per year of Iranian crude in 2018/19.

The Organization of the Petroleum Exporting Countries (OPEC) and other producers including Russia have gradually tightened supply through 2019 to reduce a global glut. OPEC and its partners may not renew the curbs when they expire after June because of the risk of over-tightening the market.

IOC, India’s top refiner and Iran’s biggest Indian client, will cut Iranian oil imports to 6 million tonnes, or about 120,000 barrels per day, in the 2019/20 period from 9 million in 2018/19, and has raised the optional volumes it can buy from other producers to 2 million tonnes, a company official said.

"Our optional quantities under term deals are higher than last year. We have optional contracts with Saudi Arabia, Kuwait and other suppliers... They will supply more if we want," the official said, adding his firm would also buy more US oil if required.

IOC also hopes to buy 1.5 million tonnes of Mexican oil in 2019, compared with 1 million tonnes last year, the source said.

Officials from state-owned National Iranian Oil Co did not immediately reply to requests for comment on the Indian refiners’ plans to purchase less Iranian crude.

Refinery officials said their 2019/20 crude import strategy was not contingent on Iranian oil, and was more flexible than in previous years.

"We don’t have a watertight plan for the year, we have optional quantities so that it is possible to find replacement if any country goes out for any reason," said an MRPL official.

During previous sanctions against Iran, Saudi Arabia and Iraq raised supplies to India to grow market share in the country, the world’s third-biggest oil consumer and importer.

Last year, MRPL signed its first annual deal with Iraq to buy 1.5 million tonnes of Basra oil in 2019.

BPCL has signed a deal to buy 5 million tonnes of Iraqi oil in 2019 compared with 1.5 million tonnes in 2018, its head of refineries R. Ramachandran said, adding his company is considering buying more oil from South America.

BPCL recently bought Brazilian crude and plans to buy Mexican oil as well, he said.

"We have a strategy with and without Iran," he added.
MRC