Ukrainian imports of PP remained in 2019 at the level of 2018

MOSCOW (MRC) -- Ukraine's polypropylene (PP) imports totalled about 132,000 tonnes in 2019, which practically corresponded to the 2018 figure. At the same time, it is worth noting that an increase in deliveries was noted only for PP block copolymers, according to a DataScope report.

December PP imports into Ukraine dropped to 8,600 tonnes from 11,100 tonnes a month earlier, local companies reduced their purchasing of homopolymer of propylene (homopolymer PP) in the Middle East because of a shortage in the domestic market. Overall PP imports reached 132,000 tonnes in 2019 versus 132,300 tonnes a year earlier. The increase in imports accounted for PP block copolymers, while the demand for other propylene polymers remained at the level of 2018.

The structure of PP imports by grades looked the following way over the stated period.

December imports of homopolymer PP to the Ukrainian market fell due to lower purchases in the Middle East under the pressure of surplus in the domestic market and amounted to about 6,300 tonnes against 8,300 tonnes a month earlier. Last year's homopolymer PP imports exceeded 100,200 tonnes, compared to 100,600 tonnes a year earlier.

Last month's imports of block propylene copolymers (PP block copolymers) were 925 tonnes, compared to 1,000 tonnes in November. Imports of PP block copolymers into the country were about 14,000 tonnes in January-December, compared with 13,400 tonnes year on year.

December imports of PP random copolymers fell to 1,300 tonnes compared to 1,600 tonnes a month due to lower demand for pipe polypropylene. Overall PP random copolymers imports reached 16,000 tonnes over the stated period, which corresponded to the last year's figure. Total imports of other propylene copolymers over the reporting period were about 1,900 tonnes, compared with 2,400 tonnes in the same time a year earlier.

MRC

Celanese raises January VAM prices in Americas

MOSCOW (MRC) -- Celanese Corporation, a global chemical and specialty materials company, has increased January list and off-list selling prices for Vinyl Acetate Monomer (VAM) sold in the Americas, said the producer on its site.

The price increases below are effective for orders shipped on or after 17 January 2019, or as contracts otherwise allow, and are incremental to any previously announced increases.

Thus, VAM prices rose, as follows:

- by USD0.05/lb - for the USA and Canada;
- by USD125/mt - for Mexico & South America.

As MRC reported earlier, Celanese last raised its VAM prices in the Americas on 24 October 2019, as stated below:

- by USD0.05/lb - for the USA and Canada;
- by USD125/mt - for Mexico & South America.

According to MRC's DataScope report, November EVA imports to Russia dropped by 8,9% year on year to 3,440 tonnes from 3,780 tonnes in November 2018, and overall imports of this grade of ethylene copolymer into the Russian Federation decreased in January-November 2019 by 18,9% year on year to 35,95 tonnes (44,330 tonnes in the first eleven months of 2018).

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 7,700 employees worldwide and had 2018 net sales of USD7.2 billion.
MRC

Phillips 66, partner cancel renewable diesel project

MOSCOW (MRC) -- U.S. refiner Phillips 66 and biodiesel producer Renewable Energy Group Inc have abandoned construction of a renewable diesel plant in Washington state following delays in receiving permits and uncertainties, the companies said, as per Hydrocarbonprocessing.

This marks a setback in what has been a major push by refiners including Marathon Petroleum, HollyFrontier and Valero to produce diesel from soybeans and other organic products and earn lucrative tax credits for generating the fuels.

The proposed 250-million-gallon-per-year project would have been the largest renewable diesel refinery on the West Coast of the United States, the companies said.

The refinery was planned to be constructed adjacent to Phillips 66’s Ferndale Refinery, looking to take advantage of existing infrastructure that includes tank storage, rail and truck rack access.

“While we believe the Ferndale Refinery is a strategic fit for this renewable diesel project, permitting uncertainties were leading to delays and higher costs,” Robert Herman, Phillips 66 executive vice president of refining, said in a statement.

The companies did not immediately respond to a request for details on the uncertainties.

Phillips 66, Renewable Energy Group had been expected to make a final investment decision in 2019 on the project, which was announced in 2018.

The companies said on Tuesday they were working to wind down the permitting process.

As MRC wrote before, US-based Phillips 66 remains open to developing another ethane cracker for its Chevron Phillips Chemical (CP Chem) joint venture, the refiner's CEO said in March 2018.

We also remind that in March 2018, Chevron Phillips Chemical Company LP, part of Chevron Corp, successfully introduced feedstock and commenced operations of a new ethane cracker at its Cedar Bayou facility in Baytown, Texas. At peak production, the unit will produce 1.5 million metric tons/3.3 billion lbs. per 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.

Headquartered in San Ramon, California, Chevron Corporation is the the second-largest integrated energy company in the United States and among the largest corporations in the world. Chevron is involved in upstream activities including exploration and production, downstream activities including refining, marketing and transportation, and advanced energy technology. Chevron is also invested in power generation and gasification processes.
MRC

Kinder Morgan sells Pembina shares for USD764 million

MOSCOW (MRC) -- Pipeline operator Kinder Morgan Inc (KMI.N) said on Thursday it sold the 25 million shares in Canada’s Pembina Pipeline Corp that it received when Pembina bought Kinder Morgan Canada for USD764 million, reported Reuters.

Kinder Morgan said it will use the proceeds to cut its debt.

Canada’s Pembina Pipeline had agreed to buy Kinder Morgan Canada and the U.S. portion of the Cochin pipeline for CD4.35 billion (USD3.28 billion) in August.

As MRC wrote before, in February 2019, it was announced that Pembina Pipeline and Petrochemical Industries Co. of Kuwait are moving forward with plans to build a propane dehydrogenation (PDH) and polypropylene complex in Alberta. The plant will convert about 23,000 barrels of propane per day into about 550,000 metric tons of polypropylene (PP) per year. The partners expect it to cost USD4.5 billion and come onstream in 2023. Another firm, Inter Pipeline, is already building a PDH and PP complex in Alberta. It is expected to cost USD3.5 billion and be completed in 2021.

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

Sabic names DKSH as distribution partner in Asia

MOSCOW (MRC) -- Saudi Arabian chemicals major Sabic has named Swiss market expansion services group DKSH as a key distribution partner, said the company.

Financial details of the partnership were not disclosed.

As part of its strategy to foster the additional growth of its Specialties business, and to provide outstanding service to its customers in Asia Pacific, Sabic has named DKSH as a key distribution partner, serving SABIC customers for specialty engineering thermoplastics in Greater China, South Korea, and Southeast Asia.

This collaboration involves SABIC’s complete portfolio of specialty materials, including NORYL resins (polyphenylene ether-based materials), ULTEM resins (polyetherimide materials), LNP compounds and the full range of polycarbonate-based high-performance copolymers.

"We are delighted to welcome DKSH to our distribution network, as we seek to further expand our delivery of high-performance thermoplastic materials solutions, along with outstanding service, to our Specialties customers in Asia,” said Martin Tam, Director, Customer Fulfillment, APAC, Specialties, SABIC. “This collaboration will support existing customers, and help grow our customer base in strategic industries in Asia Pacific, including the key markets of China, Indonesia, Korea, Thailand, Singapore and Malaysia."

Sabic Europe, an affiliate of Sabic, conducted maintenance works at its cracker No.3 at Geleen site in the Netherlands this autumn. The planned maintenance started in September and lasted around 2 months. The company operates two steam crackers in Geleen which are capable of producing 1,250,000 tons/year of ethylene and 675,000 tons/year of propylene in total.

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 Basic Industries Corporation (Sabic) ranks among the world's top petrochemical companies. The company is among the worldпїЅs market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.

DKSH holds a leading position within the distribution of specialty chemicals across Asia, including polymers. Their specialty and business development approach relies on a strong commitment to R&D through a network of nine specialty chemicals innovation centers in the region.
MRC