PP imports to Belarus rose by 10.8% in Jan-July 2019

MOSCOW (MRC) - Imports of polypropylene (PP) into Belarus increased to about 64,600 tonnes in the seven months of this year, up 10.8% year on year, compared to the same period of 2018. All PP grades accounted for the increase in shipments, according to a MRC's DataScope report.

July PP imports into Belarus decreased to about 8,700 tonnes against 10,200 tonnes a month earlier, the local companies reduced the volume of purchases of polypropylene copolymers, whereas homopolymer PP purchases increased. Overall imports of propylene polymers reached 64,600 tonnes in January-July 2019, compared to 58,300 tonnes a year earlier, demand increased for all PP grades, with propylene copolymers accounting for the greatest rise.

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

July imports of homopolymer PP to the Belarusian market increased to 6,700 tonnes from 5,800 tonnes a month earlier, shipments of homopolymer PP from Russia increased. Overall imports of homopolymer PP reached 43,000 tonnes in the first seven months of the year, up by 9.5% year on year. Russian producers with the share of about 86% of the total shipments were the key suppliers.

July imports of propylene copolymers to Belarus were 2,100 tonnes versus 4,400 tonnes a month earlier, local companies decreased their procurement of injection moulding block copolymers of propylene in Russia. Total imports of propylene copolymers in the country reached 21,600 tonnes in Jan-July 2019, up 13.3% year on year.
MRC

Ufaorgsintez shut PP and PE production

MOSCOW (MRC) -- Ufaorgsintez (part of Bashneft) has shut its polypropylene (PP) production and some of its low density polyethylene (LDPE) production capacities for a scheduled turnaround, the plant's customers said to MRC.

The plant's clients said Ufaorgsintez fully took off-stream its PP production for the scheduled maintenance on Tuesday, 17 September. The plant's second LDPE line (158 and 153 grades) was also shut for a scheduled turnaround. The shutdown will be short and will last for about 12 days. The plant's PP and LDPE production capacities are 120,000 and 90,000 tonnes per year, respectively.

It is also worth noting that this is the fourth shutdown for maintenance at Russian PP plants in September. Tomskneftekhim, Stavrolen and Poliom have taken off-stream their production capacities since the beginning of the month.

And as regards LDPE production, this is the second outage for a turnaround this month and not the last one. Tomskneftekhim shut its facilities for a two-week maintenance at the beginning of the month, and Kazanogsintez will take off-stream its LDPE production capacities from 16 September.

PJSC Ufaorgsintez produces phenol, acetone, synthetic ethylene-propylene rubber, high and low pressure polyethylene, polypropylene, more than 30 types of petrochemical products and over 25 consumer products.
MRC

PP imports to Ukraine rose by 4% in Jan-Aug 2019

MOSCOW (MRC) -- Overall imports of polypropylene (PP) into the Ukrainian market totalled 90,100 tonnes in the first eight months of 2019, up by 4% year on year. Homopolymer of propylene (homopolymer PP) accounted for the main increase in shipments, according to MRC's DataScope report.


August PP imports to Ukraine dropped to 11,100 tonnes from 12,200 tonnes a month earlier, local companies cut their purchasing of homopolymer PP in Russia. Overall imports of propylene polymers reached 90,100 tonnes in January-August 2019, compared to 86,700 tonnes a year earlier. Homopolymer PP accounted for the main growth in imports, whereas demand for propylene copolymers subsided.

The structure of PP imports looked the following way over the stated period.


August imports of homopolymer PP to the Ukrainian market decreased to 7,800 tonnes because of lower purchasing in Russia from 9,300 tonnes a month earlier. Overall shipments of homopolymer PP reached 69,300 tonnes in the first eight months of 2019 versus 65,300 tonnes a year earlier.

Last month's imports of block propylene copolymers (PP block copolymers) were 1,500 tonnes, compared to 1,100 tonnes in July. 9,100 tonnes of PP block copolymers were imported over the stated period, whereas this figure was 8,700 tonnes a year earlier.

August imports of statistical copolymers of propylene (PP random copolymers) virtually remained at the previous month's level, totalling 1,600 tonnes. Overall imports of PP random copolymers exceeded 10,600 tonnes in January-August 2019, whereas this figure was 11,200 tonnes a year earlier.

Overall imports of other propylene copolymers were 1,200 tonnes over the stated period.

MRC

SIBUR and Sinopec to cooperation in SEBS production

MOSCOW (MRC) -- During a working meeting between the Russian Prime Minister Dmitry Medvedev and the Premier of the State Council of the People's Republic of China Li Keqiang, SIBUR Holding (SIBUR) and China Petroleum & Chemical Corporation (Sinopec) signed a framework cooperation agreement to produce SEBS (styrene, ethylene and butylene-based block copolymers), according to SIBUR's press release.

SEBS is a pelletised modifier for thermoplastics used to impart elasticity to plastic materials or as a primary polymer to produce elastic components. SEBS boasts excellent durability and is leveraged across a variety of industries such as plastics and bitumen modification, adhesives, modification compounds, and toys.

Under the agreement, SIBUR and Sinopec will establish a 50/50 joint venture (JV) in Russia to produce at least 20 ktpa of SEBS.

Pavel Lyakhovich, member of the Management Board, Managing Director at SIBUR, said: "By various estimates, global consumption of SEBS ranges from 200 to 270 ktpa adding 5–7% each year. This product has a very strong potential thanks to its unique properties and increasingly diverse applications. Russia, however, has to import SEBS because of no local production. These factors, taken together, open up great prospects for the SIBUR-Sinopec project."

As MRC informed previously, in early September 2019, SIBUR, the largest petrochemical comples in Russia and Eastern Europe, and BASF, Geman petrochemical major, agreed to closely cooperate on sustainable development to share their best practices. SIBUR held a design session on sustainable development in the petrochemical industry. At the event, BASF shared details on its new sustainability strategy and its integration into the company's overall strategy. The participants were also presented with the company's methods of environmental impact assessment and approach to the circular economy, which embraces opportunities for chemical recycling of plastics, such as the ChemCycling project. With chemical recycling, fossil resources for chemical production can be replaced with recycled material from plastic waste.

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. Meanwhile, 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.

Sinopec Corp. is one of the largest scale integrated energy and chemical company with upstream, midstream and downstream operations. Its principal business includes: exploring, developing, producing and trading crude oil and natural gas; producing, storing, transporting and distributing and marketing petroleum products, petrochemical products, synthetic fiber, fertilizer and other chemical products. Its refining capacity and ethylene capacity rank No.2 and No.4 globally. Sinopec listed in Hong Kong, New York, London and Shanghai in August 2001. Sinopec Group, the parent company of Sinopec Corp., is ranked the 5th in Fortune Global 500 in 2012.

SIBUR is the largest integrated petrochemicals company in Russia. The Group sells its petrochemical products on the Russian and international markets in two business segments: Olefins & Polyolefins (polypropylene, polyethylene, BOPP films, etc.) Plastics, Elastomers & Intermediates (synthetic rubbers, EPS, PET, etc.). SIBUR’s petrochemicals business utilises mainly own feedstock, which is produced by the Midstream segment using by-products purchased from oil and gas companies. More than 26,000 employees working in SIBUR contribute to the success of customers engaged in the chemical, fast moving consumer goods (FMCG), automotive, construction, energy and other industries in 80 countries worldwide. In 2018, SIBUR reported revenue of USD 9.1 billion and adjusted EBITDA of USD 3.3 billion.
MRC

Chandra Asri to complete maintenance at LLDPE plant in Cilegon this week

MOSCOW (MRC) -- PT Chandra Asri Petrochemical Tbk. (CAP) is likely to restart its linear low density polyethylene (LLDPE) plant following a maintenance turnaround, according to Apic-online.

A Polymerupdate source in Indonesia informed that the company has planned to complete turnaround at this plant this week. The plant was shut for in early-August, 2019.

Located in Cilegon, West Java, Indonesia, the LLDPE plant has a production capacity of 210,000 mt/year.

As MRC informed before, CAP shut its naphtha cracker in Cilegon for a turnaround in early August, 2019. It is expected to remain off-stream for a period of around 6-7 weeks.

According to MRC's ScanPlast report, LLDPE shipments to the Russian market increased in the first seven months of 2019 by 8% year on year to 234,130 tonnes. Local producers increased their production by 24%.

CAP is the largest integrated petrochemical company in Indonesia and operates the country’s only world-scale size Naphtha Cracker. The CAP plant is strategically located in Banten province, providing convenient access to key customers.
MRC