Shandong Sanyue brought on-stream PO units in China

MOSCOW (MRC) -- Shandong Sanyue Chemical, has restarted its No. 2 and No. 3 propylene oxide (PO) units, according to Apic-online.

A Polymerupdate source in China, informed that the company has resumed operations at the units on November 26, 2019. The units remained off-line owing to technical issues for about 2-3 days.

Located in Shandong province, China, the No. 2 and No. 3 units have a production capacity of 80,000 mt/year each.

Propylene is the main feedstock for the production of polypropylene (PP).

According to MRC's ScanPlast report, the estimated PP consumption in the Russian market in January-October 2019 totalled 1,066,520 tonnes, up by 7% year on year. Supply of block copolymers of propylene (PP block copolymer) and homopolymer of propylene (homopolymer PP) increased, demand for statistical copolymers (PP random copolymer) decreased.

Shandong Sanyue Chemical Co., Ltd. is a company based in China, with its head office in Binzhou. It operates in the Other Chemical Product and Preparation Manufacturing industry. It was incorporated on November 02, 2010. The total number of employees is currently 1,190 (2018). In 2018, the company reported a net sales revenue increase of 38.43%. A growth of 7.92% was recorded in its total assets. In, 2018, the company’s net profit margin decreased by 0.67%.
MRC

MOSCOW (MRC) - Prices of low density polyethylene (LDPE) decreased in November in the Russian market became on a seasonal decline in demand and excess supply. Some sellers decreased polyethylene prices by roubles (Rb) 6,000 - 9,000/tonne in November, as per ICIS-MRC Price Report.

Scheduled maintenance works of some plants helped keep the Russian LDPE market relatively balanced in terms of supply and demand in August - September. And as a result, no serious changes in prices were seen during this period.

But with the beginning of November and the growth of production in the face of declining demand, the market "fell".
Sellers adjusted their prices on a weekly basis, and by early December, prices for some items had fallen to Rb70,000/tonne CPT Moscow, including VAT and below.

The supply surplus of LDPE began to be felt from the first days of November, while the greatest excess of supply was seen in the segment of 108 PE for the production of thick films. The main reasons for the surplus were the increase in production volumes, and as a result, the volume of supplies to the domestic market in September - October from the Angarsk Polymers Plant. As well as seasonal reduction in demand.

Some Russian producers managed to balance the domestic market due to a serious increase in exports. In particular, about 10,200 tonnes of LDPE were shipped to foreign markets in in October, and already in the 24 days of November this figure rose to 14,400 tonnes. But this factor did not lead to a quick effect for the market.

Many converters complained during November about the low demand for finished products from LDPE. And some sellers, in order to stimulate their sales, adjusted their prices on a weekly basis. This held back demand even more as converters limited their supplies in the hope of lower prices.

Deals for 108 grade LDPE were done in the early November in the range of Rb75,500-78,500/tonne CPT Moscow, including VAT, in the late December prices decreased to Rb69,500-71,500/tonne, CPT Moscow, including VAT.
A similar situation was with 158 PE, prices at the beginning of November and December were in the range of Rb79,500-83,500/tonne CPT Moscow, including VAT, and Rb70,500-75,000/tonne CPT Moscow, including VAT, respectively.
MRC

MOSCOW (MRC) -- CNOOC and Shell Petrochemicals Co (CSPC) has shut its No. 2 polypropylene (PP) unit in Guangdong, as per Apic-online.

A Polymerupdate source in China informed that the company has undertaken an unplanned shutdown at the unit on December 1, 2019. The plant is likely to resume production on December 5, 2019.

Located in Guangdong province of China, the No. 2 PP unit has a production capacity of 400,000 mt/year.

As MRC informed earlier, CSPC took off-stream it No. 2 PP unit in Guangdong province on April 7, 2019, owing to technical issues. The plant remained idle for around 10 days.

According to MRC's ScanPlast report, the estimated PP consumption in the Russian market in January-October 2019 totalled 1,066,520 tonnes, up by 7% year on year. Supply of block copolymers of propylene (PP block copolymer) and homopolymer of propylene (homopolymer PP) increased, demand for statistical copolymers (PP random copolymer) decreased.

CNOOC and Shell Petrochemicals Company Limited (CSPC) was established in late 2000. It has built and now operates a world-scale petrochemical complex in the Daya Bay Economic and Technological Development Zone, Huizhou, Guangdong Province. The joint venture partners are Shell Nanhai BV, a member of the Royal Dutch Shell Group, with a 50 per cent stake, and CNOOC Petrochemicals Investment Limited (CPIL), also with 50 per cent. CPIL is owned by China National Offshore Oil Corporation (CNOOC) (90%) and Guangdong Guangye Investment Group Company Limited(10%).

As an integrated petrochemical complex, the major facilities of the complex include 11 process units, steam and power generation and other utility provisions, storage and handling and shipping facilities, as well as environmental protection facilities. The heart of the complex is a world-scale cracker producing 950,000 tons per annum ethylene and 500,000 tons per annum propylene. In total, the complex produces some 2.7 million tons per annum of ethylene and propylene's derivative products to supply the domestic market.
MRC

MOSCOW (MRC) -- Oil and Natural Gas Corp. (ONGC) has shelved its stake sale plans for ONGC Petro Additions Ltd (OPaL) unable to attract a strategic partner, reported Livemint.

OPaL, a joint venture between ONGC (49.4%), GAIL (India) Ltd (49.2%) and Gujarat State Petroleum Corp. Ltd (1.4%), has set up a grass root mega petrochemical complex at Dahej, Gujarat.

For over four years, ONGC has maintained that it was in talks with Saudi Arabia’s Saudi Basic Industries Corp. (Sabic) and Saudi Aramco for selling a 26% stake in OPaL.

If ONGC converts share warrants worth Rs 2,600 crore (USD363 million) into equity, its share in the project could rise to 70%. Besides, if it also decides to convert debentures worth Rs 7,778 crore (USD1.08 billion) into equity, its share could rise to about 93%. After turning OPaL into a subsidiary, ONGC could consider listing it in two years.

OPaL is a USD4.5 billion petrochemical project. It began operations in 2016-17 and has been ramping up production in phases. OPaL’s complex houses India’s largest greenfield single-location, dual-feed cracker unit. The company primarily manufactures polymer, a chemical compound used in various products ranging from textiles to plastics.

A senior ONGC official said: "Offtake from OPaL is increasing and, even if OPaL is technically a separate entity, all feedstock is taken from ONGC. We see the contribution from petrochemicals to increase (in ONGC’s topline) and, thus, we may convert OPaL into a subsidiary."

Though OPaL was meant to export most of its products, it is currently exporting less than 15%. So, considering the increased domestic demand, ONGC had said in October that it was working towards getting the domestic tariff area (DTA) access against its present Special Economic Zone (SEZ) tag.

Petrochemicals make up nearly 30% of India’s chemicals industry. An increase in plastic consumption has led to domestic demand rising at a compound annual growth rate (CAGR) of 8-9% over the past decade.

OPaL operates a 1.1m tonne/year ethylene cracker, two 360,000 tonne/year linear low density PE (LLDPE)/high density PE (HDPE) swing units, a 340,000 tonne/year HDPE plant and a 340,000 tonne/year polypropylene line at Dahej, in India’s western state of Gujarat.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,724,670 tonnes in the first ten months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market in January-October 2019 totalled 1,066,520 tonnes, up by 7% year on year. Supply of block copolymers of propylene (PP block copolymer) and homopolymer of propylene (homopolymer PP) increased, demand for statistical copolymers (PP random copolymer) decreased.

OPaL is a joint venture between Gujarat State Petroleum Corp (GSPC), Gas Authority of India Ltd (GAIL) and ONGC.
MRC

MOSCOW (MRC) -- Solvay and Anthea agreed to establish a joint venture to produce catechol derivatives for the flavours, fragrances, agrochemicals and pharmaceutical sectors, said the company.

Through this Joint Venture, the two companies will work together to meet customers’ needs for additional, reliable supply for a range of products including methylenedioxybenzene, heliotropin (piperonal) and helional which are key ingredients for applications in the Flavour, Fragrance, Agrochemical & Pharma industries worldwide.

CATaSYNTH is currently completing a brand-new, world-class manufacturing facility in Mangalore, India which will be fully operational in Q1 2020.

The joint venture is called CATASYNTH Specialty Chemicals and will produce a range of products including methylenedioxybenzene, heliotropin and helional, the companies said in a statement. A production facility in Mangalore, India, is currently under construction. The close of the deal and the start up of the facility are both expected to take place in the first quarter of 2020.

“This partnership is fully aligned with our strategy to reinforce downstream integration,” said Solvay Aroma Performance GBU president Peter Browning.

Solvay also said that it has doubled production capacity for natural vanillin to 120,000 tonnes/year to satisfy demand for natural products and non genetically modified (GMO) products.

As MRC informed earlier, Solvay announces that its subsidiary Solvay Finance SA will exercise its first call option on its EUR700 million hybrid bond after having notified the Luxembourg Stock Exchange where the bond is listed. This perpetual deeply subordinated bond, bearing an annual interest rate of 4.199%, is treated as equity under IFRS rules. Its repayment is due on May 12, 2019 at the end of the first 5.5 years.

Solvay is an advanced materials and specialty chemicals company, committed to developing chemistry that addresses key societal challenges. Solvay innovates and partners with customers worldwide in many diverse end-markets. Its products are used in planes, cars, batteries, smart and medical devices, as well as in mineral and oil and gas extraction, enhancing efficiency and sustainability. Its lightweighting materials promote cleaner mobility, its formulations optimize the use of resources, and its performance chemicals improve air and water quality. Solvay is headquartered in Brussels with around 24,500 employees in 61 countries. Net sales were EUR10.3 billion in 2018, with 90% from activities where Solvay ranks among the world’s top 3 leaders, resulting in an EBITDA margin of 22%.
MRC