US HDPE and LLDPE exports to China down sharply amid tariffs

MOSCOW (MRC) -- Tariffs have sharply reduced exports of two grades of US polyethylene amid the ongoing US-China trade dispute, reported S&P Global with reference to data from the US International Trade Commission.

As new US startups have brought more high density and linear low density polyethylene production on line, flows into China, the largest global demand center, have retreated since China imposed 25% tariffs on those grades in August last year. Those tariffs, like the rest China has imposed on the US products, were in response to tariffs the US first imposed on Chinese products.

USITC data showed that during the first nine months of 2019, China received 121,255 mt of US HDPE, down 57% from the January-September period of 2018.

Over the same period in 2019, US LLDPE flows fell 37% on the year to 54,747 mt.

However, flows of US low density PE to China more than doubled to 204,199 mt from 75,911 mt, the data showed. China did not impose tariffs on LDPE last year.

US producers have started up 72% of 6.4 million mt/year of new PE capacity coming online from 2017-2019 in the first wave of new petrochemical infrastructure to be built to exploit cheap ethane unearthed by the US natural gas shale boom. The remaining 1.77 million mt/year is slated to start up by year-end, barring any delays.

The second and potentially third waves are expected to bring another 7.27 million mt of new PE capacity come online after 2020. HDPE and LLDPE make up more than 90% of the known new capacity either in operation, under construction or planned, while LDPE makes up about 6.5%.

While flows to China have fallen for the two grades facing tariffs since August 2019, overall exports were up sharply, reflecting the increased output, USITC data showed.

In the January-September period this year, the US exported 1.62 million mt of HDPE, up 44% from the same period in 2018. The 2019 amount also surpasses the 2.52 million mt exported throughout 2018.

LLDPE outflows rose 24% in the first nine months of 2019 to 710,948 mt compared to the same period last year, and 972,850 mt in LDPE exports was 52.6% higher than in the January-September period of 2018.

Flows to Vietnam increased notably for all three grades, the data showed. HDPE and LLDPE exports to Vietnam rose more than five times over the January-September period to 122,607 mt and 86,268 mt, respectively, compared to the same span in 2018. LDPE flows more than doubled to 26,7639 mt.

Flows to Belgium also rose significantly for all the three grades in the first nine months of 2019 compared to the same span in 2018. HDPE and LDPE flows to Belgium nearly tripled to 158,530 mt and 38,764 mt, respectively, while LLDPE flows rose more than 11% to 60,301 mt, the data showed.

According to MRC's DataScrope report, September HDPE imports dropped to 34,500 tonnes from 35,900 tonnes in August, Russian companies reduced their PE shipments from Uzbekistan. Overall HDPE shipments totalled 266,900 tonnes in the first nine months of 2019, compared to 181,600 tonnes a year earlier, with pipe grade and film grade HDPE accounting for the greatest increase in imports. At the same time, September LLDPE imports to Russia rose to 15,400 tonnes from 13,100 tonnes a month earlier, with LLDPE imports from the USA showing a significant rise. Overall LLDPE imports to the Russian market reached 127,100 tonnes in the first nine months of 2019, down by 7% year on year.

While polyethylene is used to make the most-used plastics in the world, each grade has a different makeup to satisfy specific uses. HDPE is used to make natural gas transmission pipes, milk jugs, grocery bags, paint jugs and toys, while LLDPE is used in making heavy-duty packaging, such as trash bags and stretch film for industrial use. LDPE, the oldest type of polyethylene, is used to make food packaging, carpet backing, hot melt adhesives and road stabilizers.
MRC

November sales of EPS boards down in Ukrainian market by 20%

MOSCOW (MRC) -- Sales of expandable polystyrene (EPS) boards fell in the Ukrainian market in the first half of November by 20% month of month, according to ICIS-MRC Price report.

Thus, the domestic EPS boards market has been experiencing a seasonal decline in demand for finished products after a peak consumption in October.

At the same time, consumption of EPS boards decreased in the first half of November by 15% year on year, said a major converters.

As reported earlier, September sales of EPS boards rose in the Ukrainian market by 20% from August 2019.

EPS boards are widely used as heat insulating material for thermal insulation of internal and external cladding structure of the building, its foundations, basements, attics, as well as engineering systems.
MRC

EPS imports to Russia rise by 32% in Jan-Oct 2019

MOSCOW (MRC) -- Overall imports of expandable polystyrene (EPS) to the Russian market grew in the first ten months of 2019 by 32% year on year to 17,700 tonnes, according to MRC's DataScope report.


This figure was 13,500 tonnes in January-October 2018.

The Finnish producer Styrochem's material accounted for 35% of the total EPS imports, the Chinese company Loyal with the share of 21% occupied the second position.

Styrochem's imports grew over the stated period by 34% year on year: from 4,610 tonnes to 6,180 tonnes. Shipments of Chinese Loyal increased by 55% year on year: from 2,400 tonnes to 3,700 tonnes.

October EPS imports to Russia fell by 20% year on year to 1,700 tonnes from 2,200 tonnes a year earlier.

MRC

PP imports to Ukraine up by 1% in Jan-Oct 2019

MOSCOW (MRC) -- Overall polypropylene (PP) imports into the Ukrainian market totalled 112,300 tonnes in the first ten months of 2019, up by only 1% year on year. Block copolymers of propylene (PP block copolymers) accounted for the main increase in shipments, according to MRC's DataScope report.

October PP imports into Ukraine dropped to 10,800 tonnes from 11,400 tonnes a month earlier, local companies reduced their purchasing of homopolymer of propylene (homopolymer PP) in the Middle East. Overall imports of propylene polymers reached 112,300 tonnes in January-October 2019, compared to 111,200 tonnes a year earlier. PP block copolymer accounted for the main increase in imports, whereas demand for homopolymer PP grew insignificantly.

The supply structure by PP grades looked the following way over the stated period.


October imports of homopolymer PP to the Ukrainian market fell to 7,700 tonnes because of lower purchasing in the Middle East from 8,600 tonnes a month earlier. Overall shipments of homopolymer PP reached 85,500 tonnes in the first ten months of 2019 versus 84,300 tonnes a year earlier.

Last month's imports of PP block copolymers were 1,500 tonnes, which virtually corresponds to the figure of September. 12,100 tonnes of PP block copolymers were imported over the stated period, whereas this figure was 11,100 tonnes a year earlier.

October imports of statistical copolymers of propylene (PP random copolymers) rose to 1,400 tonnes from 1,100 tonnes a month earlier due to stronger demand for pipe grade PP. Overall imports of PP random copolymers reached 13,200 tonnes in January-October 2019, whereas this figure was 13,900 tonnes a year earlier.

Total imports of other propylene copolymers were 2,100 tonnes over the stated period, compared to 2,000 tonnes a year earlier.

MRC

Pucheng Clean Energy shut PP plant in China for scheduled turnaround

MOSCOW (MRC) -- Pucheng Clean Energy has undertaken a planned shutdown at its polypropylene (PP) unit, according to Apic-online.

A Polymerupdate source in China informed that the company halted operations at this plant on November 14, 2019 for maintenance. The plant is likely to remain off-line for around one week.

Located at Shaanxi province in China, the plant has a PP production capacity of 400,000 mt/year.

As MRC reported earlier, on May 28, 2018, Pucheng Clean Energy restarted its PP plant following an unplanned shutdown. The plant remaind off-line for around one week owing to technical issues. Located at Shaanxi province in China, the plant has a PP production capacity of 400,000 mt/year.

Besides, Pucheng Clean Energy shut this PP plant for an unplanned maintenance from 21 October to 12 November, 2018.

According to MRC's ScanPlast report, 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