Ufaorgsintez to shut its LDPE production for turnaround on 17 September

MOSCOW (MRC) -- Ufaorgsintez (petrochemical asset of Bashneft, which is part of Rosneft) plans to shut down its second low density polyethylene (LDPE) line for maintenance on 17 September, according to ICIS-MRC Price report.

The plant's customers said the turnaround at this production line is expected to last for one week.

Ufaorgsintez's total LDPE production capacity is 90,000 tonnes/year.

As reported earlier, Ufaorgsintez took off-stream its second LDPE line for a fairly long scheduled maintenance from 19 September to 13-14 October, 2018. The first line was shut for a 30-day turnaround and completely resumed operations on 1 October, 2018.

PJSC Ufaorgsintez produces phenol, acetone, synthetic ethylene-propylene rubber, high and low density polyethylene, polypropylene, over 30 types of petrochemical products and over 25 items of consumer products. Ufaorgsintez reduced its net profit by 18% in the first half of 2019. The company's revenue has not changed. Ufaorgsintez received revenue in the amount of Rb15.35 billion in the first six months of 2019 versus Rb15.25 billion a year earlier.
MRC

MOSCOW (MRC) -- Gazprom neftekhim Salavat's polystyrene (PS) was shipped to Russian customers in extremely limited quantities in the first half of September, according to ICIS-MRC Price report.

There have been no available quantities of Gazprom neftekhim Salavat's premium grade general purpose polystyrene (GPPS) in free sale so far.

At the same time, shipments of Salavat material were earlier expected to normalize at the beginning of September.

As reported previously, the resumption of Gazprom neftekhim Salavat's GPPS production after a scheduled turnaround was delayed for several weeks. The plant’s production capacities were shut for maintenance in July. However, the company was planning to reach a standard capacity utilisation at the plant in September.

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

MOSCOW (MRC) -- A shortage of Nizhnekamskneftekhim's polystyrene (PS) remained in the Russian market, according to ICIS-MRC Price report.

The largest XPS boards producers also felt the shortage of the feedstock.

Delivery times for medium- and small-sized customers may be two-three weeks.

As reported earlier, Nizhnekamskneftekhim (part of the TAIF group) raised its September selling prices of high impact polystyrene (HIPS) and general purpose polystyrene (GPPS) by Rb2,000/tonne for most Russian buyers.
MRC

MOSCOW (MRC) -- Imports of unmixed polyvinyl chloride (PVC) into Kazakhstan rose in the first seven months of 2019 by 1% year on year to 30,300 tonnes, reported MRC analysts.

Demand for PVC increased significantly from local companies in July under the pressure of seasonal factors, July imports of unmixed PVC were 8,100 tonnes versus 3,800 tonnes in June. Thus, overall imports of resin reached 30,300 tonnes in January-July 2019, compared to 29,900 tonnes a year earlier.

Due to the geographical position, Chinese producers with the share of about 96% of the local market over the stated period were the main PVC suppliers to Kazakhstan. Russia was the second largest PVC supplier, shipments of Russian resin reached 1,200 tonnes over the stated period.
MRC

MOSCOW (MRC) -- Construction industry in Russia has been showing a decline, despite the active development of construction in the past few years, RBC reports.

The only driver of demand for housing (and the residential segment occupies an impressive share of the construction market - 30-50% depending on the region) remains a mortgage. And in order to stimulate buying activity, the Central Bank lowers the key rate, and after it, banks reduce interest on the mortgage. However, the number of loans issued nevertheless decreases - by 13.2% in six months.

The absence of more or less bright prospects in construction also affects the state of the building materials market. In this segment, a steady decline trend is also observed.

Active development of construction in the past few years was a result of major sporting events - the Olympics and the World Cup. Thanks to them, investments increased 3-4 times a year. Today, world sports are left behind. And despite the fact that development continues (they modernize the housing and communal services, repair houses and roads, build new infrastructure), there will be no and will not be a multiple increase in investment volumes and the pace of construction. At least until new equally global projects appear in Russia.

The Ministry of Economic Development hopes that investment growth rates in the second half of the year will reach 4-5%. In the meantime, they are only shrinking: the Central Bank of Russia estimated the fall in the second quarter at 1.3–1.8% compared to the same period last year. Today, investors are not ready to invest in either construction or the production of building materials, since the terms and prospects for the return on these investments are difficult to predict.

According to the MRC Annual Report, construction growth in the near future, according to experts, is not to be expected. The commissioning of housing in the country by 2024 will fall to 56–64 mln sq meters. m. But at the same time, in 2019, housing commissioning will grow by 5–7%, because in 2016–2017. There were no crisis situations and developers brought out new projects. The real downward trend associated with amendments to the shared law will appear at the end of 2020. In 2018, the demand for polyvinyl chloride from manufacturers of molded products was reduced by 10%, most of all the demand from panel manufacturers dipped - more than 18%.

MRC