Prices of Russian PVC to rise by Rb2,000/tonne in May

MOSCOW (MRC) -- Negotiations over May shipments of suspension polyvinyl chloride (SPVC) began in the Russian market on 25 April 2019. Local producers announced a price increase of Rb2,000/tonne for shipments to the domestic market, according to ICIS-MRC Price report.

Amid seasonal growth in demand and higher feedstocks prices, Russian producers intend to achieve an increase in May contract SPVC prices. Most producers announced a price rise of Rb2,000/tonne from April, but some buyers intend to limit the growth of contract prices by a smaller amount.

Demand for PVC has been growing gradually from the domestic market month by month, but at the same time, some producers have maintained relatively high exports since the beginning of the year, shipping excessive quantities of polymer to foreign markets. Significant export volumes are also expected in May.

Prices of Russian resin has been constantly rising since the beginning of the year, with April being the exception. And on the back of this, some buyers resumed their purchases in foreign markets, particularly, in China, in March, but at the same time, they had to state that there were serious problems with shipments of acetylene PVC from China.

Sellers of North American PVC also began to actively enter the Russian market in the second half of April. Some negotiators said PVC imports from the United States are a good alternative to Russian resin, but, as is the case with China, delivery is quite long. And this is the main negative factor.

There is no shortage of PVC in the Russian market, despite large export volumes. At the same time, the market balance may change in the near future because of shutdowns for maintenance. Thus, Kaustik Volgograd plans to shut its production capacities for a three-week turnaround in mid-May. And two producers - Bashkir Soda Company and SayanskKhimPlast - will shut their PVC production capacities simultaneously in mid-July.

May deals for resin with K=64/67 were negotiated in the range of Rb76,000-78,500/tonne CPT Moscow, including VAT, for lots of less than 500 tonnes. For special grades, particularly, with K=58/70, prices were higher by Rb1,000-2,000/tonne.
MRC

MOSCOW (MRC) -- Reliance Industries Ltd (RIL) has completed turnaround at its one polypropylene (PP) unit last weekend, as per Apic-online.

A Polymerupdate source informed that the company has resumed operations at one of the PP unit following a maintenance on April 27, 2019. The unit was taken off-line on April 16, 2019.

Located at Hazira near Surat in Gujarat, the PP unit has a production capacity of 225,000 mt/year.

As MRC reported earlier, Saudi Aramco’s Chief Executive Officer Amin Nassar said in late February 2019 that the company was in talks with India’s Reliance Industries Ltd for possible investments and was seeking other opportunities in the country.

Reliance Industries is one of the world's largest producers of polymers. Thus, the company produces among others polypropylene, polyethylene and polyvinyl chloride.
MRC

MOSCOW (MRC) -- Italian oil services company Saipem has signed a Preliminary Agreement with JSC GazpromNeft Moscow Refinery and an EPC Contract with Infrastructure Development and Construction (IDC) for an aggregate value of around 500 million Euro, according to Hydrocarbonprocessing.

The Preliminary Agreement in Russia covers the execution on an EPC basis of a new "Sulphur Recovery Unit" (SRU) inside the existing Moscow refinery. The signature of the final EPC Contract is expected to take place by the end of the Second Quarter 2019 on the basis of the main terms and conditions agreed between the parties as an integral part of the same agreement.

The EPC contract in Serbia encompasses the design and construction of about 150 kilometers of gas pipeline and the engineering of the relevant compressor station.

As MRC wrote before, in summer 2018, Saipem was awarded Onshore E&C contracts in Saudi Arabia, Serbia, Mexico, Iraq, and Nigeria worth approximately USD800 million in total. Thus, Saipem was awarded a contract in Saudi Arabia by the national oil company Saudi Arabian Oil Company (Saudi Aramco) for procurement and construction in relation to the "South Gas Compression Plant Pipelines" project for the development of the Haradh gas plant (HdGP), located in the east of the country. The project comes under the Southern Area Energy Efficiency Program.
MRC

MOSCOW (MRC) -- Spanish oil and gas firm Repsol said on Tuesday first quarter adjusted net profit rose 6 percent from a year earlier, as lower oil and gas prices and a production stoppage in Libya were offset by lower costs and a stronger U.S. dollar, said Reuters.

Recurring net profit adjusted for one-off gains and inventory effects (CCS net profit) came in at 618 million euros (USD691 million) in January-March, compared with 583 million euros at the beginning of 2018.

A forecast drawn from analyst estimates provided by the company had pointed to adjusted net income of 566 million euros.

Lower exploration costs pushed up operating income by 122 million euros in the period, Repsol said.

Production fell to 700,000 barrels per day from 726,000 a year ago, primarily due to a halt in production in Libya, lower gas demand in Venezuela, an asset sale in the United States, maintenance activities and the decline of fields.

But the upstream unit was boosted by new wells in the United States, Canada and Colombia, acquisitions in Norway and the start-up of a gas field in Trinidad and Tobago.

The refining margin fell 20 percent to USD5.3 from USD6.6 in the first quarter of last year.
MRC

MOSCOW (MRC) -- Mitsui Chemicals, Inc. (Tokyo) held a groundbreaking ceremony for a new plant within the Ichihara Works (Ichihara City, Chiba) to manufacture hydrocarbon-based synthetic fluid marketed under the name Lucant, said the company.

The new plant is expected to reach commercial operation in February 2021.

Lucant is a hydrocarbon-based, specialty synthetic fluid used primarily as a viscosity modifier. It is used in demanding applications, including automotive driveline, industrial lubricants and greases, and is the approved choice for leading OEMs and global oil marketers. Mitsui Chemicals was the first manufacturer to offer this unique synthetic fluid which boasts industry leading efficiency and durability.

This investment in additional Lucant capacity will allow Mitsui and its strategic partner, Lubrizol Additives Segment, a segment of The Lubrizol Corporation, to meet the evolving and demanding needs of Lubricant market, whilst becoming a more reliable and secure supply partner.

Details about project costs or capacities in terms of tonnes or pounds per year were not disclosed.
MRC