Shenhua Ningxia to conduct maintenance at PE plant in May

MOSCOW (MRC) -- Shenhua Ningxia Coal Industry (SNCG), a subsidiary of Shenhua Group, one of the largest petrochemical producers in China, is likely to undertake a planned maintenance at the polyethylene (PE) plant in May 2020, according to Apic-online.

A Polymerupdate source in China informed that, the company has planned to shut the plant in May 2020 for a period of around 6-7 weeks. The exact date of the shutdown could not be ascertained.

Located at Ningxia, China, the PE plant has a production capacity of 450,000 mt/year.

As MRC reported previously, SNCG brought on-stream its linear low density polyethylene (LLDPE) plant on January 19, 2019, following an unplanned outage. The unit remained off-line for around one week owing to technical issues. Located at Ningxia province of China, the plant has a production capacity of 450,000 mt/year.

According to MRC's ScanPlast report, March LLDPE shipments in Russia grew to 36,790 tonnes from 25,690 tonnes a month earlier, production increased. Russia's overall LLDPE shipments totalled 110,000 tonnes in the first three months of 2020, up by 11% year on year. SabSibNeftekhim accounted for the main increase in shipments.

Shenhua Ningxia Coal Industry Group Co., Ltd. engages in coal mining and washing, coal deep processing, coal chemical industry, electric power, real estate, and other businesses.
MRC

MOSCOW (MRC) -- BP is donating 3 million gallons of jet fuel to FedEx and Alaska Airlines to help with the distribution of personal protective equipment in the battle against the new coronavirus, said Reuters.

The jet fuel will be supplied from BP’s refinery in Whiting, Indiana and the Cherry Point refinery in Blaine, Washington, BP said in a statement.

It will be delivered to Chicago O’Hare and Seattle-Tacoma International airports. The fuel, equivalent to around 95,000 tonnes of jet fuel, is worth roughly USD15 million, according to Reuters calculations.

It comes at a time when traders are struggling to store huge excess quantities of aviation fuels with global flights dropping sharply in response to coronavirus-linked travel restrictions.

BP is providing free fuel to emergency workers in several countries including Britain, Spain and Turkey.

We also remind that, in September 2019, six world's major petrochemical companies in Flanders, Belgium, North Rhine-Westphalia, Germany, and the Netherlands (Trilateral Region) announced the creation of a consortium to jointly investigate how naphtha or gas steam crackers could be operated using renewable electricity instead of fossil fuels. The Cracker of the Future consortium, which includes BASF, Borealis, BP, LyondellBasell, SABIC and Total, aims to produce base chemicals while also significantly reducing carbon emissions. The companies agreed to invest in R&D and knowledge sharing as they assess the possibility of transitioning their base chemical production to renewable electricity.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.

BP is one of the world's leading international oil and gas companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items.
MRC

MOSCOW (MRC) -- Dow Inc.recorded earnings (on a reported basis) from continuing operations of 32 cents per share for first-quarter 2020 against earnings of 16 cents per share a year ago, said the company.

Barring one-time items, earnings were 59 per share for the reported quarter, falling short of the Zacks Consensus Estimate of 60 cents.

Dow realized more than $30 million of savings from stranded cost removal in the first quarter. However, it witnessed lower margins in the polyurethanes and silicones chains as well as reduced equity earnings.

Dow raked in net sales of $9,770 million for the quarter, down roughly 11% from the adjusted sales a year ago. It, however, beat the Zacks Consensus Estimate of USD9,575.7 million.

Sales fell due to lower local pricing across the board resulting from a decline in global energy prices. Currency reduced sales by 1% in the quarter.

Volumes fell 2% in the quarter as higher demand in food, health & hygiene packaging, surfactants & solvents for cleaning and coatings end-markets were more than offset by declines in polyurethanes and silicones applications. The company saw lower sequential volumes in China as the coronavirus pandemic led to slower economic activities. Dow also saw an 8% decline in local prices.

As MRC informed earlier, Dow Europe has already closed May orders for high pressure polyethylene (LDPE). It is noted that the supply of LDPE has become limited in Europe due to supply problems amid high demand. Most of the market is waiting for the May Ethylene contract to be agreed, as it will provide an indicator of a starting point for the May discussions of polyethylene prices.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 215,390 tonnes in the first month of 2020, up by 23% year on year. Shipments of all grades of high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) increased due to higher capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 127,240 tonnes in January 2020, up by 33% year on year. ZapSibNeftekhim's homopolymer PP accounted for the main increase in shipments.

The Dow Chemical Company is an American multinational chemical corporation headquartered in Midland, Michigan, United States. Dow is a large producer of plastics, including polystyrene (PS), polyurethane, polyethylene, polypropylene, and synthetic rubber.

MRC

MOSCOW (MRC) -- India’s Department of Chemicals and Petrochemicals has taken initiatives to overcome the hurdles posed by Covid-19 pandemic and has suggested state-owned units to strengthen their performance by exploring Joint Ventures with global enterprises looking for investments, as per Kemicalinfo.

The initiative came on the directions of Union Minister of Chemicals and Fertilizers Shri DV Sadananda Gowda who has advised that Indian corporates especially PSUs (public sector undertakings) under his Ministry should try to convert COVID-19 adversity into an opportunity of attracting investments from abroad.

Following on the advice, HIL (India) Limited (formerly Hindustan Insecticides Ltd), a PSU under the Department, is looking for expanding its market and has sent proposals to Indian Embassies/Missions in China, Japan and South Korea for inviting interested agro-chemical manufacturers in respective countries for investment in India for business tie-up with HIL including contract manufacturing or plan-on-lease arrangement.

On the recent performance side, despite facing lot of hurdles due to COVID-19 crisis, HIL is ensuring supply of essential chemicals such as DDT in Health segments and Seeds & Pesticides in Agriculture segments in various parts of the country.

During nationwide lockdown due to COVID-19, production has been affected in HIL’s Units. However, company has recorded good sales performance during the last week ended on 24th April and sold 37.99 metric tons of Agro-chemicals, despatched 97 metric tons of DDT, executed an export order of 10 metric tons of Mancozeb 80% WP to Peru.

HIL has also drafted an agreement which has been shared with the Ministry of Agriculture for supply of Malathion Technical for Locust Control Programme.

As MRC informed earlier, India to consider imposing a 15% "Covid-19" import tax on chemicals to help protect its domestic industry from major exporting nations in East and SE Asia. The domestic industry has been badly affected by a major demand slump as a result of nationwide coronavirus lockdown. The proposed tax will be added in addition to current import duties. The committee is also proposing that all duties and taxes on exports be refunded for domestic manufacturers.

With possible exemptions for ethylene, paraxylene (PX), ethylene dichloride (EDC) and vinyl chloride monomer (VCM), the recommendation covers all other chemicals and petrochemicals imported by India.

India is a major chemicals importer, including polymers, monomers and solvents. If introduced, the new tax would impact domestic importers and distributors.

EDC and VCM are the main feedstocks for the production of polyvinyl chloride (PVC).

According to MRC's DataScope report, exports of suspension polyvinyl chloride (SPVC) from Russia totalled 45,600 tonnes in the first three months of 2020, down by 4% year on year. Imports increased, but still remained at a low level.
MRC

MOSCOW (MRC) -- Valero Energy Corp plans to operate its 15 refineries up to 73% of the combined total throughput capacity of 3.1 million barrels per day (bpd) in the second quarter of 2020, reported Reuters with reference to Homer Bhullar, vice president of investor relations.

Valero has reduced production at several refineries as demand fell because of stay-at-home orders to stem the spread of the coronavirus.

The company, which is the second-largest refiner in the United States by capacity, has begun to see an increase in demand in the US Gulf Coast and Midwest as states in those regions begin to lift stay-at-home orders.

"It kind of got to the point where we were seeing demand about 55% of what we would call normal," said Gary Simmons, executive vice president and chief commercial officer. "So already, it’s about a 9% increase of where we were in early April."

Overall, Valero expects gasoline demand to increase gradually, Simmons said.

"We see a fairly gradual recovery in demand, but gasoline demand getting back close to where it was the pre-COVID," he said. "On the jet side, I think we believe that the lower jet demand is probably here with us longer."

Ethan Bellamy of R.W. Baird sounded a cautious note about optimism for the recovery.

"There’s a rebellious attitude among the less infected areas as people demand to go back to work," Bellamy said. "That may backfire dramatically, or it could spark the recovery. I don’t think anyone really knows how that will play out."

COVID-19 is the disease caused by the coronavirus and has infected more than 1 million people in the United States and caused more than 58,000 deaths.

Among the steps Valero took to cut production as demand dropped off was to idle the 92,000-bpd gasoline-producing fluidic catalytic cracker (FCC) at its St. Charles refinery in Norco, Louisiana, said Lane Riggs, president and chief operating officer. The FCC had just finished an overhaul.

The company also pushed some discretionary maintenance projects at its refineries into 2021, Riggs said.

As MRC wrote previously, two workers at Valero's Port Arthur refinery were tested positive for the coronavirus in early April 2020. Valero, the second largest refinery company in the United States, cut nonessential work and related contractors in the first week of April after initiating temperature checks last week - much later than than its peers in the industry.

Besides, in late March 2020, an employee at Valero Energy Corp’s Meraux, Louisiana, refinery was tested positive for the coronavirus.

We also remind that Valero Energy Corp restarted the small CDU at its Port Arthur refinery after repairing a valve on 25 September 2019. And in late October 2019, Valero Energy Corp shut the small crude distillation unit (CDU) at its Port Arthur refinery. The 75,000-bpd AVU 147 CDU was shut to repair a heat exchanger.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.
MRC