PE imports to Ukraine up by 11% in Jan-May 2019

MOSCOW (MRC) -- Overall imports of polyethylene (PE) to the Ukrainian market grew in the first five months of 2019 by 11% year on year to 111,300 tonnes. The high density polyethylene (HDPE) accounted for the main increase in imports, according to MRC's DataScope report.

Last month's PE imports to Ukraine dropped to 21,100 tonnes from 25,100 tonnes in April, shipments of all ethylene polymers decreased. Overall PE imports reached 111,300 tonnes in January-May 2019, compared to 100,300 tonnes a year earlier. HDPE imports increased, whereas imports of other grades of ethylene polymers virtually remained at the 2018 level.

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

Last month's HDPE imports fell to 8,700 tonnes from 9,600 tonnes in April, with pipe grade PE accounting for the reduction in shipments. Overall HDPE imports reached 42,000 tonnes in the first five months of 2019, compared to 31,100 tonnes a year earlier.

May imports of low density polyethylene (LDPE) were 5,100 tonnes versus 6,900 tonnes a month earlier. Overall LDPE imports reached 31,600 tonnes over the stated period, which virtually corresponded to the 2018 figure.

Last month's imports of linear low density polyethylene (LLDPE) were 6,500 tonnes, compared to 7,500 tonnes in April. Overall LLDPE imports rose to 32,000 tonnes in January-May 2019 from 32,000 tonnes a year earlier.

Imports of other PE grades, including ethylene-vinyl-acetate (EVA), totalled 5,200 tonnes over the stated period, compared to 5,700 tonnes a year earlier.

MRC

MOSCOW (MRC) -- Russia's output of chemical products rose in April 2019 only by 1% year on year. However, production of basic chemicals increased by 2.8% in the first five months of 2019, according to Rosstat's data.

According to the Federal State Statistics Service of the Russian Federation, ethylene accounted for the largest increase in production year on year.

262,000 tonnes of ethylene were produced last month, compared to 263,000 tonnes in April. Thus, 1,318,000 tonnes of this olefin were produced in January-May 2019, up by 4.1% year on year.

May production of benzene was 128,000 tonnes, compared to 121,000 tonnes a month earlier. Overall output of this product reached 618,000 tonnes in the first five months of 2019, up by 0.9% year on year.

May production of sodium hydroxide (caustic soda) was 107,000 tonnes (100% of the basic substance) versus 103,000 tonnes a month earlier. Overall output of caustic soda totalled 535,000 tonnes over the stated period, compared to 514,800 tonnes a year earlier.

2,098,000 tonnes of mineral fertilizers (in terms of 100% nutrients) were produced in May versus 2,249,000 tonnes a month earlier. Overall, Russian plants produced 10,404,000 tonnes of fertilizers in January-May 2019, up by 1.6% year on year.

Last month's production of polymers in primary form decreased to 713,000 tonnes, up 1.1% from April. Overall output of polymers in primary form totalled 3,497,000,000 tonnes over the stated period, up by only 0.8% year on year.
MRC

MOSCOW (MRC) -- BASF has developed a climate-friendly process for methanol production, which if implemented could eliminate carbon dioxide (CO2) emissions from the entire process – from syngas production to pure methanol, as per the company's press release.

Production of the most basic chemicals is responsible for about 70% of greenhouse gas (GHG) emissions from the chemical industries. BASF is developing new technologies to reduce GHG emissions from these processes under its Carbon Management Program.

A team at BASF has now applied to patent an emissions-free methanol production process, marking one of the Carbon Management Program’s first visible successes.

Methanol production begins with syngas, which in a typical plant is produced using steam reformation of natural gas. In this process, steam reacts with methane to produce syngas, which is then pressurised and converted into crude methanol using specialised catalysts. The crude methanol is then purified by distillation.

In BASF’s novel process, syngas is generated by partial oxidation of natural gas, which does not result in CO2 emissions. BASF declined requests for more information regarding the process. It was proven advantageous in a joint study conducted with Linde Engineering. Subsequent methanol synthesis and distillation can be carried out nearly unchanged.

The waste gas streams that arise during methanol synthesis and distillation consist of methane (CH4), carbon monoxide (CO), carbon dioxide (CO2), and hydrogen (H2) which can be merged and processed. In BASF’s Oxyfuel process the steams are incinerated with pure oxygen resulting in a small volume of flue gas with maximum CO2 content. The flue gas is then scrubbed using BASF’s OASE gas treatment process for full CO2 recovery.

The recovered CO2 is fed back into the beginning of the process – syngas production. This requires additional H2 which BASF also aims to produce without any carbon dioxide emissions, for example by methane pyrolysis which is also being developed under the Carbon Management Program.

The novel methanol synthesis process is being tested in a pilot plant at BASF’s subsidiary hte (the high throughput experimentation company), in an ongoing project which began in August 2017, according to Maximilian Vicari, Project Manager at BASF’s Intermediates. He added that BASF expects industrial scale production in about ten years.
MRC

MOSCOW (MRC) -- Dow held a groundbreaking ceremony for a new high-value silicone resin plant to be located at the Company’s manufacturing site in Zhangjiagang, Jiangsu, China, as per Hydrocarbonprocessing.

The new facility will significantly expand Dow’s global high-value silicone resin capacity to meet increased demand for the creation of differentiated silicone products in key industries and emerging markets worldwide.

"This investment demonstrates Dow’s strategy to capitalize on growth and value-add opportunities. It will better position Dow to help customers grow and succeed by addressing their fast-growing needs for our differentiated silicone products," said Mauro Gregorio, business president, Consumer Solutions. "Today’s groundbreaking emphasizes our ambition to collaborate and deliver materials science innovations with customers and partners throughout the global value chain."

The new high-value silicone resin plant is part of a broader investment plan announced by Dow in September 2018 to roll out a series of low capital intensity, high return investments in its silicones franchise to accelerate innovation and support global customers’ demand in high growth markets. It will produce high-value silicone resin, an advanced material critical to the creation of differentiated silicone products in the home and personal care, pressure sensitive adhesives, antifoams, and moldable optics for lighting markets.

Dow senior leaders Jim Fitterling, chief executive officer; Mauro Gregorio; Jon Penrice, president Asia Pacific; and Yoke Loon Lim, president Greater China were joined by customers, government representatives and other Dow employees, for the groundbreaking ceremony.

"We are thrilled to be breaking ground on this latest addition to our integrated manufacturing site in Zhangjiagang," said Yoke Loon Lim. "This new facility is a testament to our commitment to our local customers and partners, and demonstrates the Company’s confidence in the China and Asia-Pacific markets."

As MRC wrote before, in June 2018, The Dow Chemical Company (Dow) announced its plan to invest in an alkoxylation facility on the US Gulf Coast. Upon completion, this new facility will support global growth in Dow’s core end-markets related to infrastructure and home and personal care, as well as additional end-markets where Dow continues to strengthen its position for the TRITON, TERGITOL, ECOSURF and CARBOWAX SENTRY brands.

The Dow Chemical Company is an American multinational chemical corporation. Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.
MRC

MOSCOW (MRC) -- Showa Denko (SDK) has decided to acquire all shares in ILAG Industrielack AG, which leads the ILAG Group (ILAG), a specialty non-stick coating chemicals manufacturing company headquartered in Wangen, Switzerland, and signed a stock purchase and sale agreement with the current owners, a coalition of investors led by Helvetica Capital AG, a Swiss-based private equity firm, said Bloomberg.

Non-stick coating chemicals (NSCs) are used on consumer goods such as cookware, bakeware, and home electrical appliances, and also on industrial goods including automotive parts and other industrial equipment, for the purposes of preventing sticking of substances on their surfaces and supporting low friction and release during use. The global market for NSCs is put about \\130 billion (about USD1.2 billion) a year (SDK’s estimate for 2019).

ILAG has the fourth largest share in the consumer-goods NSC market of worldwide operating companies, and the second largest share of this segment in Europe. Thus ILAG brand has strong presence in the European market. ILAG’s products are applied not only on consumer goods but also on industrial goods including automotive parts. ILAG exports its products manufactured in Switzerland to more than 50 countries.

Moreover, ILAG has a production base in China, and consumer goods manufactured by ILAG’s customers in China are sold worldwide. On the other hand, GMM Group (GMM), a manufacturer of NSCs which SDK acquired in November 2016, has a large market share in NSC market for consumer goods in the US, and GMM’s main customers are major cookware/bakeware manufacturers based in the United States.

Therefore, SDK is confident that ILAG and GMM are highly synergetic. For example, the two companies can play complimentary roles in terms of each company’s main markets in the world. After the acquisition of ILAG, annual sales figure of SDK’s NSC business will leap up to about USD60 million (about \\6.6 billion). As a result, SDK’s NSC business will have strong presence and competitiveness in global market, especially in the field of consumer goods.

As MRC wrote before, Showa Denko (SDK) decided to establish a new production site for thermosetting bulk molding compound (BMC) in Zhuhai, Guangdong Province, China, jointly with Eternal Materials Co., Ltd., a synthetic resin manufacturer based in Taiwan. BMC is a thermosetting bulk molding compound made from unsaturated polyester resin as main component, kneaded together with glass fiber and other additives. BMC is used as headlamp reflectors and engine covers for car applications, and encapsulation material for home electrical appliances and precision parts.

Showa Denko K.K. is mainly engaged in the petrochemical business. The Petrochemical segment manufactures and sells olefin, organic chemicals and others. The Chemical Product segment supplies chemicals, industrial gases, special gas and functional drug for semiconductors, functional high molecular materials, among others.
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