Russia faces acute shortage of PS in late August-early September 2019

MOSCOW (MRC) -- There was an acute shortage of material in the Russian polystyrene (PS) market in late August-early September 2019, according to ICIS-MRC Price report.

A general purpose polystyrene (GPPS) producer reported converters' increasing complaints about the shortage of material.

A similar situation was seen in the high impact polystyrene (HIPS) market.

A major converters are in a better position, and they are usually provided with sufficient quantities of material.

At the same time, small- and medium-sized converters were forced to look for PS from other, larger market players.

The market is expected to return to a situation of the balanced supply and demand closer to mid-autumn. Penoplex and Gazprom neftekhim Salavat should return to the standard operational mode of PS production in September.

In addition, the plant's sources told MRC on Monday Nizhnekamskneftekhim plans to operate its production capacities iin a standard mode in September.
MRC

Gazprom neftekhim Salavat resuming LDPE production

MOSCOW (MRC) -- Gazprom neftekhim Salavat, one of Russia's largest production complexes for oil refining and petrochemicals, has begun resuming its low density polyethylene (LDPE) production after a scheduled turnaround, according to ICIS-MRC Price report.

The plant's customers said Gazprom neftekhim Salavvat had started commissioning works to resume its LDPE production after the scheduled maintenance since last weekend. Gazprom neftekhim Salavat's LDPE annual production capacity is 120,000 tonnes/year.

It is worth noting that the outage at LDPE production capacities in Salavat started on 1 July and was planned for 30 days. But the launch of the unit was postponed a month later due to a shortage of ethylene.

OAO "Gazprom neftekhim Salavat" (formerly OAO "Salavatnefteorgsintez") is one of the leading petrochemical companies in Russia, carrying out a full cycle of processing hydrocarbon material. The list of products manufactured by the plant includes more than 140 items, including 76 grades of the main products: gasoline, diesel fuel, kerosene, fuel oil, toluene, solvent, liquefied gases, benzene, styrene, ethylbenzene, butyl alcohols, phthalic anhydride and plasticizers, polyethylene, polystyrenes, silica gels and zeolite catalysts, corrosion inhibitors, elemental sulfur, ammonia and urea, glycols and amines, a wide range of household products made of plastics, surfactants and much more.
MRC

Chevron, BHP evacuate workers from Gulf of Mexico due to hurricane

MOSCOW (MRC) -- Chevron, BHP evacuate workers from Gulf of Mexico due to hurricane HOUSTON: Major offshore oil and gas producers on Friday were evacuating non-essential staff from production platforms in the US Gulf of Mexico due to the threat from Hurricane Dorian, reported Reuters.

BP, Chevron Corp and BHP Group said they had or were in the process of removing some workers from their facilities as a precautionary measure. Each said oil and gas production at the offshore facilities was unaffected.

Dorian is forecast to strike the Atlantic coast of Florida by early next week as a major hurricane. Some computer models project Dorian may cross the Florida peninsula and enter the Gulf of Mexico.

Oil and gas operations in the Gulf of Mexico account for 16%of U.S. crude oil output and about 4% of US natural gas.

Planned evacuations were complete at BP's Atlantis, Mad Dog, Na Kika and Thunderhorse, and at Chevron's Petronius and Blind Faith platforms, the companies said. BHP will evacuate non-essential workers from its Neptune and Shenzi production facilities on Saturday, a spokeswoman said.

Exxon Mobil Corp and Occidental Petroleum said they are closely monitoring Dorian, and their Gulf of Mexico operations were operating normally.

Other oil companies with operations in the US-regulated north Gulf of Mexico did not reply to requests for comment about offshore operations.

Chevron said its Pascagoula, Mississippi, refinery continues to monitor the storm.

Shell Oil Co, the U.S. arm of Royal Dutch Shell Plc, has not modified operations at its Norco and Convent, Louisiana, refineries, according to spokesman Ray Fisher. Shell spokeswoman Cynthia Babski said offshore operations were not affected by the storm's threat.

As MRC wrote earlier, Chevron shut down its fluidized catalytic cracker (FCC) unit in Pasadena (Texas, USA) with a capacity of 120,000 tonnes of propylene per year for a scheduled turnaround on 30 August, 2019. Duration of the shutdown was unknown.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,255,800 tonnes in the first seven months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, the estimated PP consumption in the Russian market was 796,120 tonnes in January-July 2019, up by 11% year on year. Shipments of PP block copolymer and homopolymer PP increased.
MRC

RIL to restart HDPE/LLDPE swing plant in Jamnagar after maintenance this week

MOSCOW (MRC) -- Reliance Industries Ltd. (RIL), plans to restart its high density polyethylene/ linear low density polyethylene (HDPE/LLDPE) swing plant this week after a scheduled turnaround, according to Apic-online.

A Polymerupdate source in India, informed that, the company commenced a turnaround at the plant, on August 26, 2019. The plant is slated to remain off-line, for a period of about 10 days.

Located at Jamnagar, Gujarat, India, the plant has a production capacity of 550,000 mt/year.

The company also operates a low density polyethylene (LDPE) plant with a capacity of 400 mt/year at the same site.

As MRC reported earlier, RIL started commercial operations at these two new polyethylene (PE) plants in Q2 2017.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,255,800 tonnes in the first seven months of 2019, up by 9% year on year. Shipments of all PE grades increased.

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

PET imports to Russia down 7% in July

MOSCOW (MRC) - Deliveries of imported polyethylene terephthalate (PET) to the Russian market in July decreased by 7% compared to July 2018 and amounted to 15,580 tonnes of PET, according to MRC ScanPlast.

Total imports of PET to Russia in seven months of 2019 reached 117,840 tonnes, up 19% year on year.

Earlier it was reported that the import of polyethylene terephthalate (PET) in Europe in June increased by 24% year on year to 67,560 tonnes.

At the same time, exports fell to below 10,000 tonnes in June 2019. South Korea, China and India were among the three largest importers to Europe in June.

MRC