PS imports to Russian market grew in August by 13%.

MOSCOW (MRC) -- August imports of polystyrene (PS) to Russia rose by 13% year on year and reached their maximum this year - 12,350 tonnes, compared to 10,930 tonnes a year earlier, according to MRC's DataScope report.

As compared to July 2019 (10,550 tonnes), this figure showed an increase of 17%. PS imports to Russia grew in January-August 2019 by 11% year on year to 80,500 tonnes from 72,400 tonnes a year earlier.

August imports to the Russian Federation by grades looked the following way.

Thus, imports of general purpose polystyrene (GPPS) and high impact polystyrene (HIPS) rose over the stated month by 5% year on year, totalling 5,000 tonnes versus 4,700 tonnes in August 2018. July imports of material were 4,000 tonnes. GPPS and HIPS imports into the country increased over the first eight months of 2019 by 15% year on year from 28,100 tonnes a year earlier to 32,400 tonnes. European materials of Styrolution, Versalis and Trinseo accounted for over 90% of the total shipments.

August imports of expandable polystyrene (EPS) grew by 18% year on year to 2,200 tonnes from 1,900 tonnes a year earlier. July imports were 2,000 tonnes. EPS imports to Russia rose in the first eight months of 2019 by 41% year on year to 13,800 tonnes from 9,800 tonnes a year earlier. Finnish material of Styrochem accounted for the bulk EPS imports.

Imports of acrylonitrile-butadiene-styrene (ABS) to Russia increased over the stated month by 37% year on year to 3,600 tonnes from 2,600 tonnes in August 2018. Imports of material were 2,800 tonnes in July 2019. ABS imports grew in January-August 2019 by 1% year on year to 21,900 tonnes from 21,800 tonnes in the first eight months of 2018. South Korean company LG Chem accounted for the bulk of ABS imports.

MRC

MOSCOW (MRC) -- Imports of unmixed polyvinyl chloride (PVC) into Belarus grew in the first seven months of 2019 by 15% year on year to 22,900 tonnes, according to MRC's DataScope report.

According to the Statistical Committee of the Republic of Belarus, local converters reduced their purchasing of PVC in July 2019 after a surge in demand a month earlier, overall imports totalled 3,400 tonnes versus 3,900 tonnes in June.

Thus, imports of unmixed PVC reached 22,900 tonnes in January-July 2019, compared to 19,900 tonnes a year earlier, with local windows producers accounting for an increase in demand.
Russian producers with the share of about 85% of the Belarusian market were the key suppliers of resin to Belarus over the stated period. Producers from Ukraine and Germany with the share of 9% and 4%, respectively, were the second and third largest suppliers.

MRC

MOSCOW (MRC) -- Major producers of petrochemicals in Saudi Arabia, which faced cuts in feedstock supplies following the recent attacks on Saudi Aramco production facilities, are reporting improvements in supplies, reported Chemweek.

Sabic said today that cuts to its supplies of feedstock had improved from 49% to 30% and that the company, together with other producers, expects supplies to reach normal levels by the end of September, as announced by the Ministry of Energy yesterday. Sabic and other producers are continuing to evaluate the final effects, to determine the financial impact.

Saudi Kayan, a Sabic affiliate, says its feedstock supplies have improved and are currently 37% short, up from an original 50% shortfall. Yanbu National Petrochemical Co. (Yansab), a subsidiary of Sabic, says it is now short by 17% on supplies, an improvement from the 30% shortfall the company faced originally. Saudi Arabian Fertilizer Co. (Safco), another Sabic subsidiary, says all its factories are already back operating at normal levels, following recent cuts to feedstock supplies.

Rabigh Refining and Petrochemical Co. (Petro Rabigh), a joint venture between Aramco and Sumitomo Chemical, said today its supplies of ethane are down 20%. Advanced Petrochemical Co.'s feedstock supplies have improved with cuts currently at the 20% level, up from an original 40% shortfall. Tasnee has also seen an improvement in supplies and is currently 25% down compared with 41% immediately following the attacks.

As MRC reported before, a number of Saudi Arabia's companies, such as Tasnee, Sadara, Advanced Petrochemical and Saudi Kayan, announced a curtailment of feedstock to their petrochemical plants, including polyethylene (PE) and polypropylene (PP) facilities, by an average of 30-50% due to the attacks on key Saudi Aramco facilities on Saturday.

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

MOSCOW (MRC) -- Lyondell Basell Industries’ 263,776 barrel-per-day Houston refinery had a minor upset in steam supply that was corrected quickly and not repeated, said Hydrocarbonprocessng.

Refineries in the Houston area suffered only minor problems in the first night of Tropical Storm Imelda’s passage across the southeast Texas, sources familiar with plant operations.

As MRC informed earlier, in April 2019, LyondellBasell’s Bayport Complex in Pasadena, Texas, commemorated 50 years of operation at its propylene oxide plant and provided an update on their role in the company’s most significant capital project to date, the construction of the largest propylene oxide (PO), tertiary butyl alcohol (TBA) plant in the world.

As MRC wrote previously, in August 2016, LyondellBasell made the final investment decision to build a high density polyethylene (HDPE) plant on the US Gulf Coast. The plant will have an annual capacity of 1.1 billion pounds (500,000 metric tons) and will be the first commercial plant to employ LyondellBasell's new proprietary Hyperzone PE technology. The start-up of the new plant is scheduled for 2019.

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.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies.
MRC

MOSCOW (MRC) -- SIBUR Holding, Russia’s largest integrated petrochemicals company, announces the successful float of five-year Eurobonds worth USD500 million on the Irish Stock Exchange, said the company.

The initial coupon rate, set at 3.75% per annum, decreased to 3.45% per annum during the book-building. Coupon payments will be made every six months. The Company intends to use the funds to continue carrying out its growth strategy and to optimize its credit portfolio.

Goldman Sachs, J.P. Morgan, Gazprombank and Sberbank CIB acted as lead coordinators and book runners, while Banca IMI SpA was the lead manager. The total demand exceeded USD1.3 billion. The Company’s Eurobonds were purchased by global investors, more than half of which were foreign ones (Russia, 41%; Continental Europe, 26%; Asia and MENA, 15%; the UK 11%; the USA, 7%). Moody’s rated the bonds at Baa3, while Fitch gave them a rating of BBB-.

Alexander Petrov, SIBUR’s Managing Director for Economics and Finance and a member of the Company’s Management Board, noted: “Since the Company placed its first Eurobonds back in 2013, SIBUR has undertaken a substantial transformation of its business, implementing large-scale investment projects and forming a solid foundation for long-term sustainable growth. While its business developed, the Company’s indebtedness remained at a comfortable level. I am pleased to announce that we have taken another successful step in public capital markets, and I am grateful to investors who value our business model, which ensures sustainable growth”.

In 2018, SIBUR reported revenue of USD 9.1 billion and EBITDA of USD 3.2 billion. Over the past 10 years, SIBUR has implemented a number of large-scale investment projects worth more than RUB 850 billion. Each year, the Company spends no less than 70% of its EBITDA to finance the investment program, while maintaining a balanced debt burden.

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.

SIBUR is the leader of the Russian petrochemical industry and one of the largest companies globally in this sector. It has more than 26,000 employees. The Company’s unique vertically integrated business model allows it to create highly competitive products consumed in the chemical, fast moving consumer goods (FMCG), automotive, construction, energy and other industries in 80 countries worldwide.

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