Poor margin forced FREP to cut cracker rate

MOSCOW (MRC) -- Fujian Refining & Petrochemical Company (FREP) has reduced the operation rate of their steam cracker by 10-15% due to softer downstream margins, reported CommoPlast with reference to market sources.

Based in Fujian, China, the cracker has an ethylene production capacity of 1.1 million tons/year.

As MRC informed before, FREP last took off-stream its cracker for maintenance in end-October 2018. The plant was shut until 20 December 2018. Located in Fujian province of China, the cracker has an ethylene production capacity of 1.1 million mt/year and a propylene production capacity of 550,000 mt/year.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.

FREP is a joint venture between Fujian Petrochemical Co. (50%), ExxonMobil China Petroleum and Petrochemical Co. (25%) and Saudi Aramco Sino Co. (25%). Fujian Petrochemical is a 50:50 JV between Sinopec and the Fujian provincial government.
MRC

BIAXPLEN launches new film grades for self-adhesive labels, confectionery and tobacco packaging

MOSCOW (MRC) -- In 2019, BIAXPLEN partnered with its customers, multinational companies and SIBUR’s R&D centres to develop new films for a number of consumer segments, said the company.

Unique for the Russian market, SOIL (pearl) and STG (transparent) label films are fused directly into polypropylene containers and do not require adhesives. These labels contribute to sustainable development and reduce carbon footprint through better feedstock efficiency and recyclability.

A LOBB film for fully wrapped labelling increases the output of finished (printed) labels by 10% compared to LOBA (standard pearl film for fully wrapped labelling) due to lower weight. The grade has undergone consumer testing and is commercially supplied to key manufacturers of bottled soft drinks.

A new TSHS tobacco film with better thermal shrinkage resistance designed specifically for high-speed packaging equipment helps improve visual properties of the end product.

A HOHG film grade for confectionery can be used to produce resealable packaging for chocolate bars. It retains the product’s consumer properties and complies with the current packaging and food safety requirements.

BIAXPLEN keeps engaging deeply with customers to develop joint innovative products and packaging solutions at SIBUR’s NIOST and PolyLab R&D centres in Tomsk and Skolkovo.

As MRC informed earlier, BIAXPLEN and Manucor will share their best practices in terms of R&D, sales and marketing, production, and technical support. Joining efforts with Manucor’s sales team will result in new opportunities in the European markets for BIAXPLEN. In turn, SIBUR will engage PolyLab, its Skolkovo-based R&D centre, to develop new products. Together, the parties expect to create the leading BOPP film producer in Europe.

According to MRC's ScanPlast report, the PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.

BIAXPLEN is a subsidiary of SIBUR, a petrochemical company, and Russia's largest BOPP film producer. Its capacity amounts to 180 ktpa across five regions, and its products are exported to 27 countries.
MRC

Thyssenkrupp wins PMC services contract for Nayara planned Vadinar petrochemical project

MOSCOW (MRC) -- Thyssenkrupp Industrial Solutions (India) has recently signed a contract with Nayara Energy, under which it will provide project management consultancy (PMC) services for Nayara's new petrochemical project to be built at the site of Nayara's 20-million-t/y Vadinar refinery in India, according to Apic-online.

The USD850-million project, which will mark Nayara's entry into the petrochemical sector, includes a 450,000-t/y propylene recovery unit, a 450,000-t/y Unipol polypropylene (PP) plant, a 200,000-t/y methyl tertiary butyl ether unit and associated off-sites and utility facilities.

PCN earlier said the project was expected to be completed in 2022.

"Nayara Energy's endeavors in the petrochemical sector are aligned towards our larger aspiration to play a vital role in India's development story," noted Nayara Energy Chief Executive B. Anand.

As MRC informed before, in December 2017, Thyssenkrupp Industrial Solutions’ subsidiary Uhde Inventa-Fischer signed a contract to build two new world-scale polymer plants for SASA Polyester Sanayi A.S in Adana, Turkey. One plant is planned to produce 380,000 tpy of polyethylene terephthalate (PET) for low-viscosity applications. The second plant will use Uhde Inventa-Fischer’s proprietary patented MTR technology to produce 216,000 tpy of resin for the production of PET bottles. Both new plants are among the largest single-line production plants for their respective products.

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

According to MRC's ScanPlast report, the PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.
MRC

Karpatneftekhim shut HDPE production

MOSCOW (MRC) -- Karpatneftekhim (Kalush, Ivano-Frankivsk region), Ukraine's largest petrochemical plant. shut down its high density polyethylene (HDPE) production in early January, according to ICIS-MRC Price report.

The plant's representative and customers said the Ukrainian producer took off-stream its HDPE production on 2 January. The shutdown of polyethylene production was due to high feedstock prices, which are not covered by the current world prices of polymer.

The exact dates of the outage has not been determined yet, and they will greatly depend on international prices of HDPE and feedstock for its production. But the current shutdown will take, at least, one month.

Karpatneftekhim is one of the largest enterprises of Ukraine's petrochemical complex. Currently, the plant can produce annually 300,000 tonnes of PVC, 200,000 tonnes of caustic soda, about 180,000 tonnes of chlorine, as well as 250,000 tonnes of ethylene and 100,000 tonnes of polyethylene.
MRC

Keiyo Ethylene reduces run rates at its cracker in Chiba

MOSCOW (MRC) -- Keiyo Ethylene, has lowered operational rates at the cracker, owing to bearish market conditions, according to Apic-online.

A Polymerupdate source in Japan informed that, the company has cut its run rates to around 90-95% of production capacity levels at the cracker in early-January, 2020.

Located at Chiba in Japan, the cracker has an ethylene capacity of 768,000 mt/year and propylene capacity of 450,000 mt/year.

As MRC informed previously, in 2019, Keiyo Ethylene took its naphtha cracker in Chiba off-stream for a maintenance work on February 15, 2019. The repair works remained in force for around 10-15 days. Located at Ichihara in Chiba prefecture of Japan, the cracker has a production capacity of 740,000 mt/year.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.

Founded in 1991, Keiyo Ethylene Co. Ltd. produces and sells petrochemical products. The Company produces ethylene, propylene, and other petrochemical products.
MRC