RusVinyl reduced December EPVC prices by Rb2,000/tonne

MOSCOW (MRC) - RusVinyl, the largest Russian producer of polyvinyl chloride (PVC, Nizhny Novgorod region, a joint venture of SIBUR holding and the Belgian Solvay group), reduced the prices of emulsion PVC for deliveries in December by Rb2,000/tonne, as per ICIS-MRC Price Report.

Thus, the prices of emulsion PVC from the producer for deliveries in December were reduced to the level of Rb106,000-107,000/tonne CPT Moscow, including VAT.

It was earlier said, negotiations over December shipments of suspension polyvinyl chloride (SPVC) began in the Russian market in the middle of last week. A seasonal decrease in demand for polyvinyl chloride (PVC) from the domestic market and large imports forced domestic producers to reduce November prices by Rb2,500-4,000/tonne from October.

December deals for Russian resin with K64/67 PVC were negotiated in the range of Rb71,000-74,000/tonne CPT Moscow, including VAT, for quantities of less than 500 tonnes. Prices for resin with K70 were by an average of Rb1,000/tonnes higher.

RusVinyl is one of the largest polyvinyl chloride production facilities in Russia and the world. RusVinyl's design capacity is 300,000 tonnes/year of suspension polyvinyl chloride (SPVC) and 30,000 tonnes/year of emulsion polyvinyl chloride (EPVC). Its caustic soda production capacity is 225,000 tonnes/year. Ethylene on RusVinyl is shipped from the SIBUR-Kstovo complex. Rock salt is delivered by water transport from the Astrakhan region and rail from Belarus.
MRC

Shenchi Petrochemical took off-stream No.1 propylene unit in China

MOSCOW (MRC) -- Shenchi Petrochemical has undertaken an unplanned shutdown at No.1 propylene unit, according to Apic-online.

A Polymerupdate source in China informed that the company has halted operations at the unit on December 1, 2019 owing to technical issues. The unit is likely to remain shut for about 10 days.

Located at Shandong province of China, the No.1 propylene units has a production capacity of 200,000 mt/year.

As MRC informed earlier, the company conducted maintenance works at its No. 1 PDH unit in Shandong province from 30 June to 10 July, 2019.

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 Shenchi Petrochemical Co., Ltd. is based in China. The head office is in Dongying. The enterprise currently operates in the Basic Chemical Manufacturing sector. The company was established on April 06, 2011. 371 (2018) employees currently work for Shandong Shenchi Petrochemical Co., Ltd.. From the latest financial highlights, Shandong Shenchi Petrochemical Co., Ltd. reported a net sales revenue increase of 59.05% in 2018. Its’ total assets recorded a growth of 65.93%. In, 2018, the company’s net profit margin increased by 7.68%.
MRC

Seven French oil refineries hit by general strike

MOSCOW (MRC) -- Staff at seven of France's eight refineries joined a general strike Thursday, affecting oil product deliveries, reported S&P Global with reference to companies and media reports.

French labor unions including the CGT, FO and FSU had called on employees in all sectors to take part in industrial action against the government's pension reforms.

Total reported difficulties in accessing its terminals at the Gonfreville, Grandpuits, Donges and Feyzin refineries and La Mede biofuels plant Thursday morning, the company said. In addition, access had been difficult to the terminals at Portes-les-Valence and Puget-sur-Argens.

Total said, with 200 oil terminals in France, supply to its retail stations had not been affected, despite the blockades.

Employees at Petroineos' Lavera refinery in the south of the country also joined the strike Thursday morning, according to media reports. This was expected to severely disrupt operations at the major Mediterranean refined products hub that could cause up to 10 days' delay for loadings, traders said. The company declined to comment.

The refineries will continue to operate, albeit at reduced rates, a union source said.

ExxonMobil, which operates the Gravenchon refinery near Le Havre and the Fos-sur-Mer plant in the south, said Gravenchon had not been hit by the strike, but there had been a minor impact on road traffic due to external blockades around the site.

At Fos, "a limited number of employees" had joined the protest and as a consequence truck and rail loadings were disrupted, while the refinery continued to operate at normal throughput, the company said.

Rail transport in France was particularly affected, with a strike at national train company SNCF as well as at RATP, the operator of Paris' public transport system. Around 90% of high speed trains are affected, with many flightsalso cancelled.

Ports around France were also halting work for 24 hours Thursday, the Federation of Ports and Docks, part of the CGT union, said in a statement.

Shipping sources said operations at ports are not disrupted significantly because not too many vessels are loading, but concerns are mounting that the strike might be extended into Friday.

As MRC informed before, France's Feyzin refinery was in the process of halting units and the steam cracker was running at reduced rates on 9 October, 2019. Local media had reported earlier that the refinery had been halting operations since Monday, 7 October, due to a strike. The company said it regrets the decision by labor unions to call a strike while discussions were ongoing with refinery staff about a planned indefinite closure of a unit due to lower product demand.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,724,670 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.
MRC

Aramco IPO values company at USD1.7 trillion, is set to raise USD25.6 billion

MOSCOW (MRC) -- Saudi Aramco's initial public offering (IPO) values the company at USD1.7 trillion and is set to raise USD25.6 billion, reported Chemweek with reference to Financial Times and Reuters reports on Thursday, quoting people familiar with the matter.

Aramco shares have been priced at 32 Saudi riyals (USD8.53) per share, at the top end of the previously announced SR30–32/share indicative price range. The IPO was heavily oversubscribed.

The price makes Aramco's the world's largest stock market flotation, exceeding Chinese e-commerce company Alibaba's USD25-billion share sale in the US in 2014. Aramco's USD1.7-trillion valuation is more than the combined market capitalization of the five biggest international oil companies, the reports say.

A 1.5% share of Aramco was sold in the IPO, with 0.5% to retail and 1% to institutional investors. The retail subscription period ended on 28 November and the institutional subscription period ended on 4 December. Investment authorities in Abu Dhabi and Kuwait invested USD1.5 billion and USD1.0 billion in the IPO, respectively, reports say.

Aramco shares will trade on Saudi Arabia's Tadawul stock exchange.

As MRC wrote previously, Saudi Aramco, which temporarily lost half of its oil production following the September 14 attacks on two key oil facilities, is running its local refineries at full capacity and is forging ahead with plans to start up new refineries. The company is also starting up a joint venture refinery in Malaysia next year. According to Aramco's bond prospectus released in April, the refining and petrochemical joint venture with Petronas - the Malaysian national oil company - collectively known as PRefChem, was supposed to start this year.

The PRefChem joint venture includes a 300,000 b/d refinery, an integrated steam cracker with capacity to produce 1.3 million mt of ethylene located in Johor, Malaysia. Aramco was supposed to provide a significant portion of PRefChem's crude supply under a long-term supply agreement. Jazan and PrefChem will help Aramco reach a gross refining capacity of 5.6 million b/d, it said in the prospectus. The company currently owns and has stakes in four refineries abroad with a total refining capacity exceeding 2 million b/d.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,724,670 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.

Saudi Aramco is an integrated oil and chemicals company, a global leader in hydrocarbon production, refining processes and distribution, as well as one of the largest global oil exporters. It manages proven reserves of crude oil and condensate estimated at 261.1bn barrels, and produces 9.54 million bbl daily. Headquartered in Dhahran, Saudi Arabia, the company employs over 61,000 staff in 77 countries.
MRC

Sirmax reveals plans for US recycling unit

MOSCOW (MRC) -- Italy-based compounder Sirmax is planning to build a USD17 mln production facility for recycled compounds in Indiana, US, said Amiplastics.

The plant, to be located alongside the company's existing compounding site in Anderson, IN, will manufacture compounds using recycled resins for the appliances, automotive, consumer goods, power tools, and other markets.

The project will receive over USD2 M in tax increment financing (TIF) bonds from the Anderson city government. The new facility will utilize the expertise of Societa Europea di Regenerazione (SER), an Italian plastics recycling company that was recently acquired by Sirmax.

SER reprocesses approximately 20,000 tonnes/y of post consumer plastics. Sirmax, which claims to be the fourth
largest producer of technical PP compounds in the world and the biggest non-integrated compounder in Europe, recorded sales of EUR 300 M in 2018 and expects a turnover of roughly EUR 385 M in 2019.

As MRC informed earlier, Sirmax (Cittadella) is continuing to grow its footprint. In a deal the financial details of which were not disclosed, the company recently acquired all shares in thermoplastic compounds producer Nord Color (San Vito al Tagliamento / Italy). The purchase of the latter – which caters to the automotive, E&E, furniture, construction and sports & leisure industries – not only consolidates Sirmax’s growth strategy, it also complements and expands the company’s own PP compounds product range.

MRC