European PP prices for deliveries to CIS countries in August remained at the level of July

MOSCOW (MRC) -- The August contract price of propylene was agreed at the level of July in Europe. Therefore, all European producers announced a roll-over of July export polypropylene (PP) prices for August shipments to the CIS markets, according to ICIS-MRC Price report.

Negotiations on August prices of European PP began last week. All market participants said that European producers have actually kept export prices of propylene polymers for shipments in the current month at the level of July due to the stability of the price of propylene.

Deals for August homopolymer PP were negotiated in the range of EUR1,050 - 1,105/tonne FCA. Deals for block copolymers of propylene (PP block copolymers) were negotiated in the range of EUR1,140-1,180/tonne FCA.

Due to planned maintenance works, some European producers had export restrictions this month, but for many buyers such restrictions were not critical.

MRC

MOSCOW (MRC) -- SayanskKhimPlast (Irkutsk region), Russia's second largest polyvinyl chrolide (PVC) producer, resumed its PVC production capacities after a scheduled turnaround, according to the ICIS-MRC Price report.

According to a company representative, the company began to start production after a scheduled maintenance works on 6 August, and the first batches of polyvinyl chloride have already been produced. The outage was long and lasted for about 30 days. The plant's annual production capacity is 350,000 tonnes. It is also worth noting that it was last shutdown for maintenance at Russian PVC plants.

Bashkir Soda Company resumed PVC production a week earlier, the turnaround lasted only two weeks. The plant's annual production capacity is 240,000 tonnes.

JSC "Sayanskkhimplast" (Irkutsk region), established in 1998, is a complex of large-capacity chlororganic production facilities connected in a single production cycle. SayanskKhimPlast produces PVC, caustic soda and bleach. After commissioning of RusVinyl's PVC production (Nizhny Novgorod region), SayanskKhimPlast became Russia's second largest PVC producer.
MRC

MOSCOW (MRC)--ExxonMobil Chemical Synthetics announced this week that it is responding to customer needs by significantly increasing low viscosity poly-alpha-olefin synthetic base stocks production capacity and further improving the reliability of its global supply chain network, said Hydrocarbonprocessing.

Investment in manufacturing facilities has resulted in significantly increased LoVis PAO production capacity in France, bringing total plant capacity to 105 kilo-tons per year. In addition, to help improve delivery and reliability for customers, the company upgraded and expanded its worldwide supply hubs and transportation systems.

"Our customers demand a growing reliable supply of high performance synthetic base stocks that enable them to innovate confidently,” said Hesham Omar, vice president of ExxonMobil Synthetics. “Investing in our production facilities and supply chain capabilities allows us to stay at the forefront of the base stocks industry and meet our customer’s long-term ambitions as they grow their business."

The synthetic lubricant market is forecasted to grow by over 20 percent* between 2017 and 2021. ExxonMobil Synthetics has four Group IV and V base stock manufacturing facilities supplying over 350 kilo-tons across all grades to ensure global supply leadership capabilities. This has enabled ExxonMobil Synthetics to build a strong reputation of unsurpassed supply reliability and quality.

An increase in production capacity is supported by continual improvements in our supply chain network. ISO hubs have been expanded, inventory has been forward-deployed in crucial areas and a renewed emphasis has been placed on planning and optimizing trucking, shipping and rail operations while upgrading carriers, all supported by a very robust and proven business continuity planning (BCP). This results in a stable, secure and growing supply of synthetic base stocks on a global scale, improved delivery speed and increased supply reliability for customers.

“The market continuously evolves and this continued investment in our capabilities positions us to meet our customer’s long-term needs as they grow their business. As adoption of metallocene synthetic base stocks increases across industrial, automotive and wind turbine markets, we have invested over half a billion dollars in plant capacity improvements in the last five years,” said Omar. “Our synthetic base stocks help formulators create lubricants that are more energy efficient, work under more severe operating conditions, offer extended drain intervals and provide advanced lubricant performance and outstanding equipment protection."
MRC

MOSCOW (MRC) -- Brazilian state-run oil company Petroleo Brasileiro SA, or Petrobras, posted a long-awaited production boost in July after a disappointing June, as it ramped up production in the promising offshore “pre-salt” region, said Hydrocarbonprocessing.

In a presentation to discuss record quarterly profits, Petrobras said it produced 2.76 million barrels of oil equivalent per day (boepd) in July, up from 2.633 million in the second quarter. On July 28, it said, production hit a record of 3 million boepd.

Last week, Petrobras posted lackluster second-quarter production figures and cut its 2019 guidance to 2.7 million boepd from 2.8 million, disappointing investors hungry for a long-promised production boost. The July figures came a day after Petrobras posted a record quarterly profit, thanks largely to major asset sales.

Analysts generally saw non-recurring income and earnings before interest, taxes, depreciation and amortization (EBITDA) as in-line or slightly below expectations. But they cheered the execution of the divestments, which have brought nearly USD13 billion into Petrobras coffers this year.

Preferred shares of Petrobras rose 3.7% in afternoon trade, after climbing almost 5% earlier in the day. "We have a mixed evaluation of Petrobras’ second quarter results,” wrote analysts at XP Investimentos. “Nonetheless, we highlight as positives the generation of cash and reduction of debt during the quarter."

One potential area of concern were June production figures, which were in fact below expectations. During a Petrobras call with analysts, Brazilian oil regulator ANP said Petrobras June production came to 2.432 million boepd. Among the main reasons the ANP pointed to for the June reduction was a stoppage at Petrobras’ Cidade de Mangaratiba FPSO, a type of ship used to produce and process oil.

Petrobras’ exploration and production head, Carlos Alberto Pereira de Oliveira, also pointed to other one-off issues. Executives also warned on the call that any dividend payments would be minimal until Petrobras reaches its goal of attaining a net debt to EBITDA ratio of 1.5. That ratio currently stands at 2.69.

To reach that goal, the executives said they would continue with aggressive divestments, such as the multi-billion sale of eight refineries. Petrobras downstream head Anelise Lara said in a call with analysts that Petrobras had received many expressions of interest in the refineries from trading firms, local distribution firms and international oil companies.

The world’s largest trading firms, including Vitol SA and Glencore PLC, are currently under investigation by U.S. and Brazilian authorities for a massive kickback scheme involving Petrobras.

Lara said in a press conference that Petrobras had concluded an internal investigation into the matter, and said no corrupt schemes were still occurring in the trading unit. She said the firm would allow the trading firms involved in the matter to buy the refineries.
MRC

MOSCOW (MRC) -- U.S. multinational, Koch industries, has acquired Julius Montz from the Pflauder Group. The acquisition was made by Koch-Glitsch, a subsidiary of Koch Engineered Solutions (KES) and the parent Koch industries, said Hydrocarbonprocessing.

Montz is a leader in mass transfer solutions such as structured packings and trays, and process systems for the chemical, fine chemical, oleochemical, and pharmaceutical industries—with specialized capabilities in green technology, renewables, alcohol, food, and solvent recovery. Montz is headquartered in Hilden, Germany and has a process technology and engineering facility in Landau, Germany.

It is hoped the acquisition will promote growth across Koch-Glitsch by leveraging Montz's capabilities around production processes for second-generation bioethanol as countries look to replace traditional energy sources like oil, coal, and gas.
MRC