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

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

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

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

MOSCOW (MRC) -- Yemen's Iran-aligned Houthi group said it attacked two plants at the heart of Saudi Arabia's oil industry on Saturday, knocking out more than half the Kingdom's output, in a move expected to send oil prices soaring and increase tensions in the Middle East, reported Hydrocarbonprocessing.

The attacks will cut the kingdom's output by 5.7 million barrels per day (bpd), according to a statement from state-run oil company Saudi Aramco, or more than 5% of global oil supply.

The pre-dawn strikes follow earlier cross-border attacks on Saudi oil installations and on oil tankers in Gulf waters, but these were the most brazen yet, temporarily crippling much of the nation's production capacity. Saudi Arabia is the world's biggest exporter, shipping more than 7 million barrels of oil to global destinations every day, and for years has served as the supplier of last resort to markets.

While the Houthis claimed responsibility for the attack, US Secretary of State Mike Pompeo put the blame squarely on Iran, writing on Twitter that there was "no evidence the attacks came from Yemen."

"Amid all the calls for de-escalation, Iran has now launched an unprecedented attack on the world's energy supply," Pompeo said.

Saudi de facto ruler Crown Prince Mohammed bin Salman told US President Donald Trump by telephone that Riyadh had the will and capability "to confront and deal with this terrorist aggression," according to Saudi state news agency SPA.

The United States condemned the attacks and Trump told the crown prince that Washington was ready to work with the kingdom to guarantee its security, according to the White House. The U.S. Department of Energy also said it was ready to release oil from its strategic petroleum reserve if necessary. Energy Secretary Rick Perry also said his department would work with the International Energy Agency, which coordinates energy policies of industrialized nations, if global action is needed.

Saudi Arabia, leading a Sunni Muslim coalition that intervened in Yemen in 2015 against the Houthis, has blamed regional rival Shi'ite Iran for previous attacks, which Tehran denies. Riyadh accuses Iran of arming the Houthis, a charge denied by the group and Tehran.

Coalition spokesman Colonel Turki al-Malki said an investigation had been launched into who planned and executed the strikes. He said the Western-backed alliance would counter threats to global energy security and economic stability.

Aramco Chief Executive Amin Nasser said there were no casualties from the attacks.

Saudi Energy Minister Prince Abdulaziz bin Salman said Aramco would have more information within 48 hours, and it will draw down oil in storage to compensate for the loss. Aramco is in the process of planning what is expected to be the world's largest initial public offering.
MRC