Hengli Petrochemical to shut No.2 PTA unit at Dalian for turnaround

MOSCOW (MRC) -- China's Hengli Petrochemical plans to shut its No.2 purified terephthalic acid (PTA) unit at Dalian for a turnaround on 26 October, reported S&P Global with reference to a source familiar with the matter.

The line with a production capacity of 2.2 million mt/year is expected to be off-stream for around 10-12 days of maintenance.

The company also operates two other PTA lines with the same production capacity at the site in Dalian.

As MRC wrote previously, in May 2018, INVISTA’s technology and licensing group, INVISTA Performance Technologies (IPT), and Hengli Petrochemical (Dalian) Co.,Ltd. (Hengli) reached an agreement to license INVISTA’s latest purified terephthalic acid (PTA) process technology for Hengli’s fourth PTA line. Hengli’s first three PTA lines, the first of which began operation in 2012, also utilize INVISTA’s technology and have a combined capacity of 6.6 million metric tonnes per year. The fourth line will have a design capacity of 2.5 million metric tonnes per year and will be installed at Changxing Island, Liaoning Province of China.

PTA is used to produce polyethylene terephthalate (PET), which is used in the manufacturing of plastic bottles, films, packaging containers, in the textile and food industries.

According to MRC's DataScope report, Chinese bottle grade PET deliveries to Russia increased 34% in the first eight months of 2019 to 95,600 tonnes. China accounted for 90% of the total imports, compared to 85% a year earlier.
August imports of material from China decreased by 41% to 7,600 tonnes from 12,800 tonnes in July. Jiangsu Sanfangxiang, Yisheng, Wankai and Sinopec were the leading Chinese suppliersof material to the Russian market.
MRC

MOSCOW (MRC) -- Yisheng Petrochemical has shut its 2.2 million mt/year No.4 unit at Ningbo over the weekend due to a paraxylene (PX) shortage for a couple of days, reported S&P Global with reference to a source close to the company's statement on Monday.

Two other sources told S&P Global Platts that the duration of the shutdown is expected to last for three to four days.

The company also operates three other lines at the same site: No 1. line with production capacty of 650,000 tonnes per year and No. 2 & 3 lines with production capacity of 2.2 mln tonnes per year each.

PTA is used to produce polyethylene terephthalate (PET), which is used in the manufacturing of plastic bottles, films, packaging containers, in the textile and food industries.

According to MRC's DataScope report, Chinese bottle grade PET deliveries to Russia increased 34% in the first eight months of 2019 to 95,600 tonnes. China accounted for 90% of the total imports, compared to 85% a year earlier.
August imports of material from China decreased by 41% to 7,600 tonnes from 12,800 tonnes in July. Jiangsu Sanfangxiang, Yisheng, Wankai and Sinopec were the leading Chinese suppliersof material to the Russian market.

Yisheng Petrochemical is jointly owned by polyester giants Zhejiang Hengyi Group and Zhejiang RongSheng Group.
MRC

MOSCOW (MRC) -- Czech producer Spolana resumed production at its polyvinyl chloride (PVC) plant in Neratovice, Czechia but force majeure on supplies still remains in place, reported NCT with reference to a source familiar with the matter reported.

The source reported that the 130,000 tons/year plant was restarted in the second week of October after production was brought to a halt due to issues with feedstock VCM production in late September. Force majeure was declared around the same time.

Although the producer did not disclose a date for when the force majeure on PVC might be lifted, some market sources estimate that it might be lifted in late October.

As MRC informed earlier, in 2017, Spolana from Neratovice has been granted an approval to change the integrated permit and extend the utilization of amalgam electrolysis for the production of chlorine and caustic soda.

According to MRC's DataScope report, exports of suspension polyvinyl chloride (SPVC) into Russia totalled about 142,100 tonnes in the first nine months of 2019, up by 48% year on year. Imports increased by 211% year on year to 43,100 tonnes.

Spolana a.s. is one of the largest chemical manufacturing companies in the Czech Republic and the only manufacturer of PVC and caprolactam also producing sodium hydroxide and ammonium sulphate. It currently employs over 700 people.
MRC

MOSCOW (MRC) -- Imports of Nizhnekamskneftekhim's high impact polystyrene (HIPS) and general purpose polystyrene (GPPS) to Ukraine decreased in January-September 2019 by 28% year on year to 9,200 tonnes, according to MRC's DataScope report.

This figure was at 12,700 tonnes in the first nine months of 2018.

Nizhnekamskneftekhim's material accounted for 54% in the overall structure of imports to the Ukrainian market for the first three quarters of 2019, compared to 67% in January-September 2018.

Overall imports of this polystyrene grade into the country decreased in the fist nine months of 2019 by 7% year on year to 17,200 tonnes from 18,600 tonnes a year earlier.
MRC

MOSCOW (MRC) -- Russia's production of high density polyethylene (HDPE) totalled 695,200 tonnes in the first nine months of 2019, down by 5% year on year. Three producers out of four reduced their output, according to MRC's ScanPlast report.

September total HDPE production in Russia decreased to 45,900 tonnes, whereas this figure was 84,300 tonnes a month earlier. Lower output was caused by the shutdowns for maintenance at Stavrolen and Kazanorgsintez's production capacities. Thus, overall HDPE output reached 695,200 tonnes in January-September 2019, compared to 731,700 tonnes a year earlier. A slight increase in Kazanorgsintez's production could not offset the decrease in the three other producers' output.

The structure of polyethylene production by plants looked the following way over the stated period.

Kazanorgsintez's total HDPE production fell to 32,200 tonnes in September from 50,800 tonnes a month earlier. The Kazan producer shut down its production for a turnaround from 26 September to 20 October. The Kazan plant's overall HDPE output reached 401,500 tonnes in January-September 2019, up by 1% year on year.

Stavrolen produced 3,400 tonnes last month, compared to 28,200 tonnes in August, the Budyonovsk producer shut its production capacities for maintenance from 6 September to 18 October. The plant's overall output reached 214,200 tonnes over the stated period, down by 4% year on year.

Gazprom neftekhim Salavat increased its capacity utilisation in September, the plant's total production grew to 10,200 tonnes from 5,400 tonnes a month earlier. The low output in the last month of summer was caused by the delayed completion of the maintenance works. The Bashkir plant's overall HDPE production reached 77,000 tonnes in the first nine months of 2019, down by 14% year on year. We remind that the Salavat producer did not take off-stream its production capacities for maintenance last year.

Nizhnekamskneftekhim produced exclusively linear low density polyethylene (LLDPE) over the stated period.

MRC