Nizhnekamskneftekhim significantly reduced November PS shipments to Ukraine

MOSCOW (MRC) -- Nizhnekamskneftekhim (part of the TAIF group) significantly reduced its shipments of high impact polystyrene (HIPS) and general purpose polystyrene (GPPS) to the Ukrainian market in November, according to ICIS-MRC Price report.

Thus, some market participants said the plant would not ship HIPS and GPPS to Ukrainian traders.

Moreover, a major increase in available quantities for Ukrainian buyers are not expected in December either.

An acute shortage of HIPS still remained in the Ukrainian polystyrene (PS) market, traders had available quantities of GPPS.

Due to the current situation, some market participants intend to start purchasing material from Turkey along with Iranian PS.

PJSC "Nizhnekamskneftekhim" (NKNK) - one of the largest Russian manufacturers of petrochemical products. The industrial complex of the company includes ten major production plants and ten departments (Railway Transport, Ethylene trunk, etc..). NKNKh produces more than 120 types of chemical products, including synthetic rubber, polyethylene, polypropylene, polystyrene, surfactants. Nizhnekamskneftekhim is a member of TAIF Group of companies.
MRC

MOSCOW (MRC) -- SIBUR-Khimprom once again reduced its expandable polystyrene (EPS) prices for November shipments to Ukrainian buyers by USD10/tonne, according to ICIS-MRC Price report.

This time, the reduction in prices of material was USD10/tonne. At present, November prices of material for the Ukrainian market are at USD1,220/tonne FCA Voronezh, excluding VAT.

As reported previously, in early November, the Russian producer reduced its EPS prices for this month's shipments to Ukraine by USD45/tonne to USD1,230 per tonne, FCA Voronezh, excluding VAT.

At the same time, SIBUR-Khimprom did not limit buyers' orders for November deliveries.

Material has been shipped from a warehouse in Voronezh in a standard mode.

SIBUR-Khimprom (part of SIBUR Holding) specializes in the processing of liquid hydrocarbons and is one of the leading Russian producers of a number of the most important petrochemical products. The company has three main production capacities: production of butyl alcohols and 2-ethylhexanol with a capacity of 160,000 tonnes per year, production of ethylbenzene (220,000 tonnes per year), styrene monomer (SM) production (135,000 tonnes per year) and polystyrene (PS) production (100,000 tonnes per year), ethylene and propylene unit, production of eco-friendly plasticizer DOTF (100,000 tonnes per year).
MRC

MOSCOW (MRC) -- LyondellBasell (LBI)б one of the largest plastics, chemicals and refining companies in the world, has announced that China Petrochemical International Co., Ltd (Sinopec International) has selected LyondellBasell’s world-leading polypropylene (PP) and high-density polyethylene (HDPE) technologies for a new facility, said LBI in its press release.

The plants will be built at the Sinopec Zhenhai Refining & Chemical complex in Ningbo, Zhejiang Province, P. R. China. The complex will comprise of a 300 KTA polypropylene plant that will utilize LyondellBasell’s Spherizone PP process technology and a 300 KTA high-density polyethylene plant which will utilize LyondellBasell’s Hostalen ACP process technology.

"This again demonstrates LyondellBasell’s leadership in polymer process technologies in the market," said Jim Seward, senior vice president of research and development, technology and sustainability at LyondellBasell. Seward added: "The selection by Sinopec International of the Spherizone technology as the innovative manufacturing platform for polypropylene resins and the Hostalen ACP technology as the leading low-pressure slurry process for the production of HDPE resins shows once again the confidence the market has in our technologies."

The Spherizone breakthrough multi-zone circulating reactor provides a unique and innovative platform to manufacture polypropylene products with novel architecture and enhanced product properties.

The Hostalen ACP process technology manufactures high performance, multi-modal HDPE resins with an industry-leading stiffness/toughness balance, impact resistance, high stress cracking resistance and process advantages used in pressure pipe, film and blow molding applications.

The Sinopec Spherizone plant will commence operations using Avant ZN catalyst. The Hostalen plant will commence operations using Avant Z501 and Avant Z509-1 catalysts to produce a full range of multi-modal HDPE products.

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

As MRC reported earlier, in December 2018, LyondellBasell announced that China Petroleum Materials Limited Corporation (CPMC) and Petrochina Liaoyang Petrochemical Company (LYPC) had selected LyondellBasell's Spherizone technology for a 300KT per year PP plant planned to be built at Liaoyang, Liaoning Province, China.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,589,580 tonnes in the first nine months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market was 976,790 tonnes in January-September 2019, up by 4% 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) -- SP Chemicals is likely to restart its No.1 vinyl chloride monomer (VCM) plant after maintenance works in early December, according to Apic-online.

A Polymerupdate source in China informed that the company took its VCM plant off-stream in early-November, 2019. The plant is slated to remain under maintenance for around one month.

Located at Taixing in Jiangsu province of China, the No. 1 plant has a production capacity of 200,000 mt/year.

The company also operates No. 2 VCM plant Taixing in Jiangsu province of China with a production capacity of 300,000 mt/year.

As MRC reported before, this plant was shut for a turnaround on 17 August, 2019, and was brought back on-stream after maintenance on 18 September, 2019.

VCM is a feedstock for the production of polyvinyl chloride (PVC).

According to MRC's ScanPlast report, Russia's overall PVC production reached 809,000 tonnes in the first ten months of 2019, up by 3% year on year. At the same time, not all Russian producers raised their output.

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) -- PetroChina Co, Asia’s largest oil and gas producer, reported a sharp fall in third-quarter profit on Wednesday, dragged down by weaker global energy prices and slowing growth in its domestic gas market, reported CNBC.

Net profit for the July to September quarter was 8.83 billion yuan (USD1.25 billion), down 58.4% compared with the same period a year ago and the weakest quarterly results this year, according to a company filing with Hong Kong stock exchange.

For the first nine months of 2019, net income fell 23.4% from a year earlier to 37.25 billion yuan, the state firm said.

"Amid an increasingly complex and rigid global economic and trade environment ... international oil prices have fallen over last year," the company said.

"Domestically, China’s refined fuel supply capacity is in severe overcapacity...(and) growth in the natural gas market is slowing."

Revenue for the quarter edged up 1.8% from a year ago to 618.14 billion yuan. For the first nine months, revenue rose 5.1% to 1.81 trillion yuan.

PetroChina also said its natural gas import business recorded a 21.76 billion yuan net loss during the January-September period, deepening from a 19.96 billion loss recorded for the same period in 2018 due to a weaker Chinese currency and higher import cost.

The group’s crude oil output increased 2.9% during the first nine months versus a year earlier to 682.7 million barrels, while gas output rose 8.7% to 289.3 billion cubic feet (bcf).

The stronger growth in gas versus crude oil production follows an accelerated drilling programme in key basins such as Sichuan in the southwest, Ordos in the north and Tarim in the northwest.

This has also led to sizeable discoveries such as conventional gas deposits in the Bozi-9 well in the Tarim basin of Xinjiang region and shale gas in the Changqing-Weiyuan and Taiyang blocks in Sichuan.

The company’s Hongkong-listed shares have fallen by 18% so far this year, weighed by concerns that Beijing’s plan to set up a national oil and gas pipeline group will force it to cede control of its dominant pipeline assets, which have generated steady revenues.

PetroChina, which is also China’s second-largest oil refiner, processed 906 million barrels of crude in the first nine months of the year, up 4.3% from a year earlier.

Despite the growth in throughput, PetroChina’s operating profits at its refining department shrank nearly 90% during the period to 3.4 billion yuan as a domestic supply overhang squeezed margins, the firm said.

As MRC informed earlier, in April 2019, LyondellBasell announced that PetroChina will use the LyondellBasell Hostalen "Advanced Cascade Process" technology to produce 1,100,000 metric tons per year of high density polyethylene (HDPE) capacity. Licensor selection had been done by China HuanQiu Contracting & Engineering Co., Ltd. (HQC), a wholly owned subsidiary of PetroChina. The low-pressure slurry process technology will be used for a 300,000-mt/year HDPE unit to be built in Korla City, Xinjiang Province, a 400,000-mt/year plant in Jieyang City, Guangdong Province and a 400,000-mt/year plant in Yulin City, Shaanxi Province in the P.R. China.

According to MRC's ScanPlast report, Russia's September estimated HDPE consumption fell to 70,570 tonnes from 108,320 tonnes a month earlier. Russian producers reduced their output due to maintenance works, whereas imports were high partially because of an increase in US shipments. The estimated HDPE consumption totalled 862,170 tonnes in January-September 2019, up by 7% year on year. HDPE imports increased by 47%, whereas production dropped by 5% due to a long period of maintenance works at three production capacities.

PetroChina Company Limited, is a Chinese oil and gas company and is the listed arm of state-owned China National Petroleum Corporation, headquartered in Dongcheng District, Beijing. It is China's biggest oil producer.
MRC