East China MEG stocks rapidly fell after months of surplus supply

MOSCOW (MRC) -- East China's monoethylene glycol inventories at main ports tumbled almost 100,000 mt week on week to around 793,000 mt Thursday, surprising the market by returning to the normal range not seen since January, before a supply glut pushed stocks to record highs above 1.4 million mt in April, reported S&P Global.

The sudden plunge has caught many participants by surprise as stocks had widely been expected to remain above 1 million mt for the rest of the year, and appears to have been triggered by MEG production cuts in Asia in response to poor profit margins -- which kicked in just before demand in the region perked up.

MEG is one of the main feedstocks for the production of polyethylene terephthalate (PET).

According to MRC's ScanPlast report, Russia;s estimated PET consumption decreased in July 2019 by 4% year on year. 428,790 tonnes of PET were processed in Russia over January-July 2019. Russia's PET production was 44,430 tonnes in July.
MRC

HDPE imports to Russia hit a record high in the past 5 years

MOSCOW (MRC) -- August imports of high density polyethylene (HDPE) into Russia reached a record high since 2014 and exceeded 35,900 tonnes. Overall imports of this polyethylene (PE) totalled 232,400 tonnes in January-August 2019, according to MRC's DataScope report.


The record volumes of imports last occurred in September 2014, when imports exceeded 41,900 tonnes per month, and such high import figures were caused by the scheduled and unscheduled shutdowns at Russia's two largest HDPE producers - Stavrolen and Kazanorgsintez. This year's record imports were also partially caused by the September outages at the same plants.

Producers from Uzbekistan, South Korea and Saudi Arabia accounted for the main increased in imports in August 2019. Russian companies increased their imports of film grade, blow moulding and pipe grade HDPE.


Thus, overall HDPE imports into Russia exceeded 232,400 tonnes in the first eight months of 2019, whereas this figure was 157,900 tonnes a year earlier. Pipe grade HDPE (+ 95% to the last year's figure to 32,600 tonnes) and film grade HDPE (+ 61% to the last year's figure to 82,100 tonnes) accounted for the greatest increase.

MRC

PP imports in Russia decreased by 9% in January-August

MOSCOW (MRC) -- Polypropylene (PP) imports into Russia slumped in the first eight months of 2019 by 9% year on year to 120,100 tonnes.
The greatest decrease in imports accounted for homopolymer PP, according to MRC DataScope.

August PP imports into the Russian market rose to 18,100 tonnes from 15,300 tonnes a month earlier, supply of homopolymer PP from Turkmenistan grew. In general, total PP imports into the country decreased to about 120,100 tonnes in January - August compared with 131,300 tonnes year on year. The volume of external purchases for all grades of polymers of propylene decreased, with the exception of PP block copolymers, with the most noticeably reduced imports of homopolymer PP.

Overall, the structure of PP imports by grades looked the following way over the stated period.

August imports of homopolymer PP increased to 6,600 tonnes against 2,900 tonnes a month earlier, shipments of homopolymer PP raffia from Central Asia decreased several times. Thus, overall imports of homopolymer PP to Russia totalled 38,200 tonnes in the first eight months of 2019, compared to 48,400 tonnes a year earlier.

August imports of PP block copolymers in Russia were about 5,300 tonnes against 6,300 tonnes in July on decreased demand for injection moulding PP. Imports of PP block copolymers into Russia reached 37,200 tonnes in January-August 2019, compared to 31,900 tonnes a year earlier.

August imports of PP random copolymers remained in the level of July at about 2,900 tonnes. Total imports of PP random copolymers in Russia were 20,800 tonnes in January - August 2019, compared with 24,100 tonnes year on year.

Russia's imports of other polymers of propylene for the period were about 23,900 tonnes in the first eight months of the year, compared with 26,900 tonnes year on year.

MRC

SP Chemicals is likely to restart its No.2 VCM plant on 18 September after maintenance

MOSCOW (MRC) -- SP Chemicals is likely to restart its No.2 vinyl chloride monomer (VCM) plant following a turnaround, reported Polymerupdate.

A Polymerupdate source in China informed that the company has planned to resume operations at the plant on September 18, 2019. The plant was shut for maintenance on August 17, 2019.

Located at Taixing in Jiangsu province of China, the No. 2 plant has a production capacity of 300,000 mt/year.

VCM is a feedstovk for the production of polyvinyl chloride (PVC).

According to MRC's ScanPlast report, demand in the Russian unmixed polyvinyl chloride (PVC) market increased only in the emulsion segment in January-July 2019, the market of suspension polyvinyl chloride (SPVC) decreased by 7%. Only producers of plastic compounds and plasticized films accounted for the growth in demand for suspension. Scheduled maintenance works simultaneously at two Russian plants did not result in an acute shortage of SPVC in the market. The growth in imports helped to avoid shortages.

SP Chemicals, a Singapore-based company is one of the largest ion-membrane chlor-alkali producer and aniline producer in China. The company's products include: aniline, caustic soda, chlorine, chlorobenzene, nitrochlorobenzene, nitrobenzene, vinyl chloride monomer (VCM). SP Chemicals plans to invest approximately RMB1.1 billion in facilities for the production of styrene monomer, an intermediate raw chemical used in making polystyrene plastics, protective coatings, polyesters and resins.
MRC

US stands ready to tap emergency oil reserve after Saudi attacks

MOSCOW (MRC) -- The Trump administration is prepared to tap US emergency oil reserves if necessary after drone attacks shut oil output in Saudi Arabia, the world's largest crude exporter, reported Reuters with reference to a Department of Energy spokeswoman's statement.

Energy Secretary Rick Perry "stands ready to deploy resources from the Strategic Petroleum Oil Reserves if necessary to offset any disruptions to oil markets as a result of this act of aggression," spokeswoman Shaylyn Hynes said.

Yemen's Iran-aligned Houthi group claimed credit for Saturday's attacks on two plants at the heart of Saudi Arabia's oil industry, including the world's biggest petroleum processing facility Abqaiq.

Perry directed department leaders to work with the Paris-based International Energy Agency (IEA) "on potential available options for collective global action if needed," Hynes said.

The IEA said on Twitter earlier in the day that it was in contact with Saudi authorities and other major oil-producing nations, and that markets for now are well-supplied.

The United States has occasionally coordinated with the IEA on collective draw downs of oil from international reserves.

The SPR, held in heavily-guarded underground storage caverns on the Texas and Louisiana coasts, currently holds nearly 645 million barrels, or about the amount the United States consumes in a month.

President Donald Trump has often urged countries in the Organization of the Petroleum Exporting Countries, of which Saudi Arabia is a member, to produce more oil to moderate crude prices. US sanctions on OPEC members Iran and Venezuela have removed millions of barrels of oil from global markets.
MRC