Linde raises full-year EPS guidance for the third time

MOSCOW (MRC) -- Linde plc, the world’s largest supplier of industrial gases raised its annual earnings per share (EPS) growth forecast for the third time this year to 17-18%, as per Hydrocarbonprocessing.

The supplier of gases such as oxygen, nitrogen and hydrogen to factories and hospitals expects adjusted pro forma EPS growth of between USD7.25 and USD7.30, up from previous guidance of USD6.95 to USD7.18.

Analysts expect growth of nearly 15% or USD7.12, I/B/E/S Refinitiv data shows.

Linde’s third-quarter adjusted pro forma EPS of USD1.94 beat expectations while sales of USD7.00 billion were slightly below expectations of USD7.12 billion.

As MRC wrote previously, German chemical company BASF and The Linde Group’s Engineering Division are collaborating to serve natural gas processing applications using BASF’s absorbent technology and Linde’s adsorption and membrane technology. With the combined capabilities of materials expertise from BASF and engineering expertise from Linde, the two companies are well positioned to expand their global leadership position in natural gas applications. The collaboration is a strong signal to the natural gas industry and will open access to previously inaccessible gas compositions for treatment.
MRC

MOSCOW (MRC) -- Synthos SA, Poland's largest petrochemical producer, has reduced its November offer prices of general purpose polystyrene (GPPS) and high impact polystyrene (HIPS) for the Ukrainian market, according to ICIS-MRC Price report.

Thus, this month' GPPS shipments to Ukrainian buyers will be done at EUR1,080-1,100/tonne FCA Oswiecim, excluding VAT, whereas Polish producer's HIPS quantities will be sold in the region at EUR1,170-1,190/tonne, FCA Oswiecim, excluding VAT, in November.

As reported earlier, Nizhnekamskneftekhim (NKNH, part of the TAIF group) significantly reduced its HIPS and GPPS shipments to the Ukrainian market in November. 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.

Synthos SA is one of the largest producers of petrochemical products in Poland and is the largest producer of emulsion rubbers in Europe. Besides, it is the third largest European EPS producer.
MRC

MOSCOW (MRC) -- Overall imports of PC granules to the Ukrainian market rose in the first ten months of 2019 by 13% year on year to 3,300 tonnes, according to MRC's DataScope report.

This figure was 2,900 tonnes in January-October 2018.

Last month's imports of material to the Ukrainian market fell by 17% to 341 tonnes from 410 tonnes in September, with German and Dutch material accounting for the main decrease in shipments.

In terms of technology, the share of injection moulding PC grades decreased to 52% (1,700 tonnes) in January-October 2019 from 63% (1,800 tonnes) a year earlier. The share of extrusion grade PC grew significantly: from 15% (425 tonnes) of the total imports to 30% (980 tonnes), with the share of blow moulding grades decreasing by 3% to 19% and totalling 620 tonnes.

Covestro and Sabic with the share of about 84% of the total imports were the key suppliers of resin to the Ukrainian market in the first ten months of 2019.

Thus, imports of Covestro's PC to the Ukrainian market increased over the ten months of 2019 by 48% year on year: from 1,600 tonnes in January-October 2018 to 2,300 tonnes. Covestro's material accounted for 71% of the total PC imports to the country in the first ten months of 2019 versus 54% a year earlier. The company's shipments of material to Ukraine were 280 tonnes last month, compared to 230 tonnes in October 2018.

At the same time, Sabic's deliveries material fell in January-October 2019 by 37% year on year: from 690 tonnes to 440 tonnes. Sabic's PC granules accounted for 13% of the total imports to the country in the first ten months of 2019 versus 24% a year earlier.

MRC

MOSCOW (MRC) -- Imports of unmixed polyvinyl chloride (PVC) into Kazakhstan rose in the first nine months of 2019 by 31% year on year to 45,200 tonnes, reported MRC analysts.

Demand for PVC subsided from local companies in September, with imports of unmixed PVC remaining atypically high and totalling 4,600 tonnes in September versus 8,200 tonnes in August. Thus, overall imports of resin reached 45,200 tonnes in January-September 2019, compared to 32,300 tonnes a year earlier. At the same time, it is worth noting that such a substantial increase in imports was caused by the further resale of resin to Russia in the period of an acute shortage in July-September.

Due to the geographical position, Chinese producers with the share of about 94% of the local market over the stated period were the main PVC suppliers to Kazakhstan. Russia was the second largest PVC supplier, shipments of Russian resin reached 2,900 tonnes over the stated period.

MRC

MOSCOW (MRC) -- Qatar Petroleum said on Wednesday it had signed a 10-year Liquefied Petroleum Gas (LPG) supply agreement with China’s Wanhua Chemicals, reported Reuters.

The agreement is for the sale of approximately 800,000 metric tons per year of LPG over a period of 10 years, the firm said in a statement on Wednesday.

As it was reported earlier, China’s top petrochemical maker Wanhua Chemical Group aims to increase LPG imports to about 5.5 million mt in 2020 from 4 million mt this year as it procures feedstock from diversified sources ahead of new projects in Yantai and widens trading activities in Asia.

A 1 million mt/year ethylene integration project - phase two of its petrochemical project in northeast Shandong province - will be the first ethylene cracker to use LPG as feedstock globally and is set for commercial production in the second half of 2020. Together with associated downstream units and a nearby feedstock storage rock cavern with a capacity of 1.2 million cubic meters, the project is costing around Yuan 20 billion.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

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.
MRC