Scheduled shutdowns for maintenance at Russian HDPE plants come to end

MOSCOW (MRC) -- Russia's two largest producers of high density polyethylene (HDPE) - Kazanorgsintez and Stavrolen - have resumed their operations after long maintenance works, according to ICIS-MRC Price report.

The plants' customers said Kazanorgsintez and Stavrolen had completely resumed their HDPE production by Monday, 21 October, after the shutdown for turnarounds. The outages were planned and began on 6 September and 26 September, respectively. These are the last scheduled turnarounds at Russian plants this year.

PJSC "Kazanorgsintez" (part of TAIF Group) is one of Russia's largest plants. Kazanorgsintez produces 40% of overall Russian polyethylene (PE) and is the country's largest exporter. To date, the plant produces PE, polycarbonate (PC), PE pipes, phenol, acetone, bisphenol A. Kazanorgsintez is Russia's only PC producer. It manufactures a total of 170 items of products. Kazanorgsintez's annual output is 1.6 million tonnes. The plant's annual HDPE production capacity is 540,000 tonnes, its output totalled 401,500 tonnes in the first nine months of 2019, up by 1% year on year.

Stavrolen's (part of Lukoil) HDPE production capacity is 300,000 tonnes. The plant's overall HDPE output exceeded 214,200 tonnes in January-September 2019, down by 4% year on year.
MRC

Fuhaichuang Petroleum and Petrochemical shut PX lines in Fujian province due to poor margins

MOSCOW (MRC) -- China's Fuhaichuang Petroleum and Petrochemical, formerly known as Dragon Aromatics, shut one of its two PX lines at Gulei, Fujian province on 14 October, reported S&P Global with reference to a source close to the company.

The source added that the shutdown was due to the poor margins caused by the narrow spread between PX and MX.

It was not immediately clear when the plant will restart, but market sources had earlier said the company was planning to shut a line for about one month in October.

The company has two lines that both can produce 800,000 mt/year of PX.

PX is a feedstock for the production of purified terephthalic acid (PTA). PTA is used to produce polyethylene terephthalate (PET), which, in its turn, 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.

Fujian Fuhaichuang Petroleum Chemical Industry Co. Ltd. refines and distributes petrochemical products. The Company produces benzenes, liquefied petroleum gases, and other products. Fujian Fuhaichuang Petroleum Chemical Industry also provides petrochemical equipment maintenance services.
MRC

INOVYN becomes first commercial producer of bio-attributed PVC

MOSCOW (MRC) -- European vinyls producer INOVYN has launched the world's first commercially available bio-attributed polyvinyl chloride (PVC), reported S&P Global with reference to company representatives' statement.

The Biovyn product will be made using 100% renewable ethylene feedstock derived from biomass.

The product was officially launched Thursday at the K Trade Fair 2019 in Dusseldorf.

Biovyn will be manufactured at Inovyn's 320,000 mt/year Rheinberg site, where it will receive bio-attributed ethylenesupplied via pipeline from sister company Ineos' Cologne steam cracker.

Biovyn will be the first PVC made without using fossil fuels. Instead it will use a bio-attribution process, whereby bio-feedstock is strictly tracked to its precise output in the PVC product, following strict technical, social and environmental standards set out by the Roundtable on Sustainable Biomaterials, the company said during the event.

"Through our sustainability program we are developing a new generation of PVC grades that meet both the rigorous product quality and performance needs of our customers, while moving us closer towards a circular, carbon-neutral economy for PVC", said Filipe Constant, Inovyn's business director.

"Driven by the increasing global focus on the circular economy, there is growing demand for a specialist, renewable PVC that decouples its production from the conventional use of virgin fossil feedstocks."

Biovyn is expected to be used in numerous applications, depending on customer demand, including general purpose but also specialty uses such as automotive and medical.

The event also discussed Inovyn's initiatives in producing recycled PVC, as part of its commitment to VinylPlus, a voluntary sustainability program to improve the sustainability performance of European PVC. In 2018 around 800,000 mt of recycled PVC was produced by the European PVC industry, with a target of around 900,000 mt/year by 2025, to make up around 20% of the current European virgin PVC market.

INOVYN is among the top four PVC producers in the world by volume, with around 1,800,000 mt/year capacity to produce various grades of PVC at seven plants across Europe.

As MRC reported before, in early October 2019, Inovyn started maintenance works at its PVC plant at its Jemeppe Site, Belgium. According to the company’s website, the Jemeppe site is one of the largest PVC production capacities in Europe with 420,000 tons/year of material supplied to key sectors including building, automotive and piping.

According to MRC's ScanPlast report, Russia's overall PVC production exceeded 720,500 tonnes in the first nine months of 2019, up by 3% year on year. At the same time, not all Russian producers raised their output.

Headquartered in London, INOVYN has pro-forma sales of more than EUR3 billion, with 4,300 employees and assets across 14 sites in Belgium, France, Germany, Italy, Norway, Spain, Sweden and the UK. Governance of the Joint Venture is equally split between the partners.
MRC

Shandong Chambroad Sinopoly New Materials selected LyondellBasell PP technology for new plant

MOSCOW (MRC) -- LyondellBasell (LBI), the world’s largest licensor of polyolefin technologies, has announced that Shandong Chambroad Sinopoly New Materials Co., Ltd., has selected LyondellBasell’s leading polypropylene (PP) technology for a new world scale facility, as per LBI's press release.

The facility will include a 400 KTA PP plant using LyondellBasell’s Spheripol technology as well as a 200 KTA PP plant using LyondellBasell’s Spherizone technology. The facility will be built in Boxing City, Shandong Province, China.

"We are delighted about Shandong Chambroad’s decision to use LyondellBasell’s polypropylene technology for their Boxing City facility. LyondellBasell’s polypropylene technology is the most widely used process in the world and is very well established in the market,” said Jim Seward, senior vice president of research and development, technology and sustainability at LyondellBasell. “Customers appreciate the simplicity and robustness of the Spheripol process and also value the ability to produce outstanding polymer grades on a benchmark cost basis with the Spherizone technology."

Mr. Luan Bo, President of Shandong Chambroad Sinopoly New Materials Co., Ltd stated: "The selection of LyondellBasell’s polypropylene allows us to serve the market place at its best as we will be in a position to deliver cost effective recognized bulk polymers through the Spheripol technology and to supply differentiated high margin polymer products through the Spherizone technology allowing our organisation to grow on a solid basis."

The Spherizone multi-zone circulating reactor (MZCR) provides a unique and innovative platform to manufacture polypropylene products with novel architecture and enhanced product properties. With this award, more than 15 Spherizone plants have been licensed in Asia.

Spheripol is the leading PP process with more than 25 million tons of licensed capacity. The latest fifth generation Spheripol technology includes process improvements that further maximize operational efficiency.

Both plants will commence operations using LyondellBasell’s Avant ZN catalyst.

New licensees can take advantage of LyondellBasell’s in-house expertise of continuous production improvement, sustainable product development and catalyst know-how, by optionally joining our Technical Service program.

As MRC reported earlier, in February 2019, HPCL-Mittal Energy Limited (HMEL) selected LyondellBasell’s fifth-generation Spheripol PP process technology for a 500 KT per year plant in Bathinda, India.

According to MRC's ScanPlast report, the PP consumption in the Russian market was 909,260 tonnes in January-August 2019, up by 10% 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

Output of chemical products in Russia grew by 3.6% in January-September 2019

MOSCOW (MRC) -- Russia's output of chemical products dropped in September 2019 by 2.4% month on month.
However, production of basic chemicals increased by 3.6% in the first nine months of 2019, according to Rosstat's data.

According to the Federal State Statistics Service of the Russian Federation, the largest increase in production volumes on an annualized basis accounted for mineral fertilizers and polymers in primary form. Thus, 200 ,000 tonnes of ethylene were produced in September, compared to 255,000 tonnes a month earlier. Kazanorgsintez and Stavrolen capacities were shut for maintenances in September. Thus, 2,256,000 tonnes of this olefin were produced in January-September 2019, up by 0.7% year on year.

Benzene production in September amounted to 108,000 tonnes against 117,000 tonnes a month earlier, which was also a result of the shutdowns in Kazan and Budenovsk. Overall output of this product reached 1,076,000 tonnes in the first nine months of 2019, up by 0.6% year on year.

September production of sodium hydroxide (caustic soda) were 107,000 tonnes (100% of the basic substance) versus 111,000 tonnes a month earlier. Overall output of caustic soda totalled 960,900 tonnes over the stated period, compared to 946,500 tonnes a year earlier.

1,927,000 tonnes of mineral fertilizers (in terms of 100% nutrients) were produced in September versus 1,939 mln tonnes a month earlier. Overall, Russian plants produced 18,180,000 tonnes of fertilizers in January-September 2019, up by 4.3% year on year.

Last month's production of polymers in primary form decreased to 670,000 tonnes, up 8.8% from August due to scheduled maintenance works of several manufacturers. Overall output of polymers in primary form totalled 6,338,000 tonnes over the stated period, up by only 3.2% year on year.
MRC