The European Union votes to ban single-use plastics by 2021

MOSCOW (MRC) -- The European Parliament has recently voted to ban single-use plastics across the board in an attempt to stop the unending stream of plastic pollution making its way into the oceans, reported Plastemart with reference to BBC News.

Such plastic products include things like straws, plates, cups and cotton buds, and can take several centuries to degrade in the oceans where they are increasingly observed to be consumed by marine life. According to the European Commission, such plastics make up 70 percent of all marine litter.

A ban was proposed in May after the public outcry and awareness over the issue reached a new zenith. A vote at the European Parliament was held earlier this week, with a huge majority of MEPs - 571 yays to 53 nays, with 34 abstentions - agreeing to enforce the ban by 2021.

The ban is, at a glance, comprehensive. Aside from the 2021 complete ban on plenty of single use products, the use of plastics for which no alternatives currently exist - mostly food packaging - will have to be cut down by 25 percent by 2025. Beverage bottles will also required to be collected and recycled at a rate of 90 percent by 2025. Cigarette butts, remarkably resilient components of plastic pollution, will have to be reduced by 50 percent by 2025, and 80 percent by 2030.

As researchers scramble to work out precisely what negative effects it may afflict on those that inadvertently eat them - especially marine mammals, many of which can suffer from just consuming one small fragment of plastic - news reports keep cropping up that remind us that we are increasingly reaping what we sow. Just in the last week or so, it was confirmed that plenty of table salt contains microplastics, as does human poop.

Things clearly can’t stay the same, and an increasingly multidisciplinary approach to dealing with the problem is at least appearing to gain steam. There are, in crude terms, three major prongs to this: engineering, political action, and public awareness.

This latest move seems to be a rare political action that might end up making a difference. Although plenty of national governments appear to want to do something, what usually happens is dissenting, powerful voices manage to weaken proposals that otherwise might provide an effective, united front.

Back in December 2017, for example, a UN resolution was tabled that aimed to prevent any plastic from entering the waterways of the world. Originally legally enforceable, protestations from the US rendered it non-mandatory and far less sweeping in its scope. At the G7 summit in Quebec this summer, a similar agreement was put forward. Although it focused on the wider issue of ocean health, it also made a point about the importance of scaling back the use of plastics that inevitably end up in the sea. The US and Japan, sadly, failed to sign on to that section of the blueprint.

The politics as to why various nations prefer not to pull their weight are complex, and worthy of writers with more specialized expertise than myself. The perception of who is to blame, and who should handle the problem, certainly plays a role, though.

China, until recently a bit of a dumping ground for much of the world’s potentially recyclable rubbish, no longer accepts the world’s non-industrial waste. Plastics that were once repurposed are now being sent to landfills. Somewhat happily accepting so much waste for a fairly long period of time, the Chinese government has now decided that it shouldn’t keep taking on yang laji - "foreign trash."

Lest we forget, the plastic manufacturing industry is a colossus that has a huge influence over countries’ various decisions over plastic. Certainly, public awareness of the problem is a good thing - even if things like bans on plastic straws are probably misleading the public as to the true scale (and causes) of the crisis – but individual action will only go so far. Unless there’s an industry-wide change, vast quantities plastic will still make it into the oceans.

That’s where engineering comes into the story. There are research groups all over the world currently working on ways to rid ourselves of single-use plastics once and for all, with some projects showing more promise than others. There are some that suspect that making plastic 100 percent recyclable is the way forwards, and proof-of-concept, low-energy intensive plastics that can achieve this have been invented. Others suspect that biodegradable plastics, those that break down quickly after use and can’t pollute, may be our best bet.

It must be stressed that such projects are still very much early days endeavors, so right now, it seems clear that stopping plastic getting into the oceans in the first place is of the utmost importance. Based on the track record of such actions, it's understandable to have a bit of healthy skepticism about the EU's approval of a sweeping ban. After all, it's not clear how enforcable it will be at present - and the proof, as they say, is in the pudding.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).
MRC

MOSCOW (MRC) -- Indorama Ventures Public Company Limited (IVL), a global chemical company, has commenced the commercial operations of its olefins gas cracker at Indorama Ventures Olefins (IVOL) plant in Westlake, Louisiana, the USA on 31st January 2020, as per the company's press release.

The site has an ethylene production capacity of 440 kilotons per annum (KTA) and is highly integrated with the US Gulf Coast ethylene pipeline infrastructure for efficient distribution. This cracker is strategically positioned in the US gulf coast and allows to leverage shale gas availability. The facility is strategically positioned for long-term captive ethylene supplies to Indorama Ventures Oxide and Glycols (IVOG) plant in Clear Lake, Texas and the recently acquired integrated EO and PO assets in Port Neches, Texas.

Mr. Tony Barre, Site Director of Indorama Ventures Olefins LLC, commented, "I am very proud of the achievements of our IVOL operating team, who have safely achieved commercial operations and plant has already achieved an operating rate of over 80%."

Mr. Alastair Port, President of Indorama Integrated Oxides and Derivatives, commented, "I am very delighted with the startup of our Gas cracker and are thankful to my colleagues who worked relentlessly. This has been possible with tremendous support and partnership with local authorities and communities."

Mr. Dilip Kumar Agarwal, CEO of PET and Integrated Oxides and Derivatives of Indorama Ventures, said, "This is a significant milestone for IVL and strategic step forward in expanding our North American portfolio and footprint. The new plant is very strategic to the continual growth of IVL’s Integrated Oxides and Derivatives segment, in-line with the company’s strategy. I personally want to thank my colleagues for their tenacious efforts and their safety mindset for the commercial startup of the cracker in Westlake, LA.

We look forward to working with the community of Southwest Louisiana to further enhance the economy, quality of life and ensure it receives the benefits of this investment."

As MRC informed before, although Indorama’s Lake Charles steam cracker was mechanically complete in May, 2019, the plant was not expected to be fully operational until January 2020.

Indorama bought the cracker from Occidental Chemical in 2015 and launched an extensive revamp to increase its capacity to the current level from 370,000 mt/year. OxyChem had shut the cracker in 2001. Originally planned for commissioning in late 2017, the refurbished cracker - jointly owned by IVP (76%) and Singapore-based Indorama Corp. (24%) - is designed to process both ethane and propane feedstock from US shale to produce about ethylene and propylene.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).

Indorama Ventures Public Company Limited, listed in Thailand, is one of the world's leading petrochemicals producers, a global manufacturing footprint with 59 sites in 20 countries across Africa, Asia, Europe and North America. The company's portfolio is comprises necessities and high value-added (HVA) categories of polymers, fibers, and packaging. Indorama Ventures has approx. 24,000 employees worldwide and consolidated revenue of USD10.7 billion in 2018. The company is listed in the Dow Jones Emerging Markets and World Sustainability Indices (DJSI).
MRC

MOSCOW (MRC) -- Negotiations over February shipments of suspension polyvinyl chloride (SPVC) began in the Russian market last Wednesday. Most producers announced a roll-over of January prices for next month because of a number of reasons, according to ICIS-MRC Price report.

Traditionally, many converters announced a slight increase in PVC purchasing in February partially because of low purchase volumes last month. At the same time, Russian producers had stocks of material at an optimal level. However, Russian manufacturers do not intend to raise next month's PVC prices, in most cases, a roll-over of January prices for February deliveries has been discussed in the contract market.

The Russian rouble weakened noticeably against the dollar and the euro in the second half of January. Prices also went up in some foreign markets in January. And these factors made imported PVC unattractive for purchasing by Russian companies in February, although some converters still did not refuse from purchasing resin in foreign markets if reasonable prices were obtained.

Some Russian producers have seriously increased their export sales of PVC since September. In December, some deals were also agreed with large converters for shipments of several thousand tonnes of resin, the so-called winter programs. Due to these factors, some Russian producers entered February with optimal stocks of suspension, and there was no price pressure on them.

Negotiations over February shipments of Russian resin to the domestic market began in the middle of last week. Demand for resin increased from local converters, although not from all consumers. Some small converters said they had PVC stocks from January purchases and did not intend to increase their purchasing in February. Some major converters also said they had made large purchases of resin in December and they did not intend to replenish their inventories, at least, until March.

Overall, deals for February shipments of Russian resin with K=64/67 PVC were negotiated in the range of Rb71,000-74,000/tonne CPT Moscow, including VAT, for quantities of less than 500 tonnes. Resin with K=70 was offered by Rb1,000-2,000/tonnes higher.
MRC

MOSCOW (MRC) -- Lotte Chemical Titan, has resumed production at its No. 3 linear low density polyethylene (LLDPE) unit, according to Apic-online.

A Polymerupdate source in Indonesia informed that, the company restarted the unit on January 22, 2020. The unit was shut on December 20, 2020 owing to economic fundamentals.

Located at Cilegon, Indonesia, the No. 3 unit has a production capacity of 200,000 mt/year.

As MRC informed before, PT Lotte Titan Nusantara, Indonesia shut its LLDPE units at Cilegon from 4 to 12 August, 2019, owing to power failure. Located in Cilegon, Indonesia, the No. 1, 2 and 3 units have a production capacity of 125,000 mt/year, 125,000 mt/year and 200,000 mt/year respectively.

Besides, PT Lotte Titan Nusantara Indonesia restarted its No. 1 LLDPE unit at Cilegon in early December, 2019. The unit was shut owing to shortage of feedstock in early-November, 2019.

According to MRC's ScanPlast report, LLDPE shipments to the Russian market grew in 2019 by 13% year on year to 398,000 tonnes. Domestic producers increased their output by 32%, thereby reducing dependence on imports by 6%.

Lotte Chemical Titan produces Malaysia's most comprehensive portfolio of olefins and polyolefins which contribute to the enhancement of everyday life. Lotte Chemical Titan's production site in Malaysia consists of eleven process facilities, two co-generation plants and three tank farms. They are located on 2 sites in Pasir Gudang and Tanjung Langsat in the state of Johor. In 2006, Lotte Chemical Titan acquired PT Lotte Chemical Titan Nusantara, Indonesia’s first and largest polyethylene plant in the country. This acquisition boosted the polyolefins capacity by approximately 50%, thus making the company one of the largest producers in South East Asia. Lotte Chemical Titan was acquired by Lotte Chemical Corp., forming part of the Lotte conglomerate of Korea, in 2010. The company thus became one of Lotte Chemical Corp.’s largest overseas subsidiaries.
MRC

MOSCOW (MRC) -- Brazilian oil workers remained on the picket line for a third consecutive day Monday in a limited strike protesting the closure of a fertilizer plant and ongoing asset sales at state-owned Petrobras, but the work action left output from refineries and offshore platforms unaffected, reported S&P Global with reference to union and company officials' statement.

"Our units are operating within normal safety parameters, with contingency teams activated when necessary," Petrobras told S&P Global Platts in an email. The strike started at 12:01 am local time (0301 GMT) Saturday, according to umbrella union the Oil Workers Federation (FUP).

The latest strike came amid an ongoing standoff between Petrobras and unions representing oil workers, which have lost negotiating power as Petrobras shed contract workers under cost-cutting measures and outsourced much of the subsalt production to third-party service companies such as SBM Offshore and Modec in recent years.

Oil workers want Petrobras to curtail an asset-sales program that will see the company slash about USD20 billion-USD30 billion worth of assets from its balance sheet over the next five years. That followed the sale of stakes in several major offshore oil fields, natural gas distribution companies and gas pipeline networks after Petrobras in 2019 won a Supreme Court case that ended lawsuits brought by oil workers aimed at disrupting the sales.

The industrial action, however, has followed similar recent action that union officials refer to as a "warning strike." Warning strikes typically include a refusal to report for shift changes at refineries, terminals and platforms as well as work-to-rule actions at other sites that maintain operational security. The warning strikes do not target production cuts at oil platforms or refineries, according to the union.

The unions, however, have faced increased legal challenges to walkouts from Petrobras under the leadership of CEO Roberto Castello Branco. A similar five-day strike in November was halted early after Petrobras won an injunction blocking the walkout. According to Petrobras, the latest action is illegal because oil workers agreed to a new collective bargaining agreement in November.

"Petrobras reiterates that it considers the actual strike movement at some of our units unjustified, give that the collective bargaining agreement was signed by all unions in November 2019 and scheduled talks are following their normal course," the company said.

Oil workers have refused to change shifts at all 13 of Petrobras' 100% owned and operated refineries since early Saturday, FUP said. In addition, 21 floating production units in the Campos Basin were working to rule, according to the union. Workers at oil and refined product terminals as well as administrative centers have also taken part in the action, FUP said.

A FUP negotiating team also has occupied a meeting room at Petrobras' iconic Rio de Janeiro headquarters building since Friday, with the company cutting water and electricity service to the room over the weekend, union officials said. Service was eventually restored, the union said.

The union wants Petrobras to suspend layoffs related to the closure of the FAFEN-PR nitrogen fertilizer plant in Parana state and other measures it argues were unilaterally imposed by company management during the most recent collective bargaining negotiations.

The strike will continue for an undetermined amount of time, FUP said.

As MRC wrote earlier, the chief executive of Brazilian state-run oil firm Petroleo Brasileiro said in December 2019 he wants to sell the company's stake in petrochemical company Braskem within 12 months.

We also remind that Braskem is no longer pursuing a petrochemical project, which would have included an ethane cracker, in West Virginia. And the company is seeking to sell the land that would have housed the cracker. The project, announced in 2013, had been on Braskem's back burner for several years.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
MRC