Zhejiang Shaoxing Sanyuan Petrochemical shut PP plant in China

MOSCOW (MRC) -- Zhejiang Shaoxing Sanyuan Petrochemical took off-stream one of its polypropylene (PP) plants in China last week because of logistical issues, reported S&P Global.

Located in Zhejiang Province, this plant's annual production capacity is 300,000/mt yr.

The company also operates another PP plant at the same site with a capacity of 200,000/mt yr and a propane dehydrogenation (PDH) unit with a capacity of 450,000/mt yr.

Many downstream PP plants in China were heard to have reduced their operating rates or shut down as they were not able to transport their products to the customers due to the closure of major roads in eastern China due to coronavirus.

According to MRC's ScanPlast report, 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).
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MOSCOW (MRC) -- China Council for the Promotion of International Trade (CCPIT) announced in a statement that it would offer force majeure certificates to Chinese businesses affected by the coronavirus outbreak, reported NCT.

CCPIT, an international trade promotion agency accredited with the Chinese Ministry of Commerce, said: "Some enterprises in China have suffered severe impacts on goods and logistics, which may result in the failure to perform international trade contracts or contractual contracts."

CCPIT said that businesses affected by the coronavirus outbreak may apply to the agency for a certificate related to force majeure. Applicant companies must provide legitimate documents, including proof of delays or cancellation of transportation, exports contracts and customs declaration, the agency noted.

The outbreak has prompted Chinese officials to extend the Lunar New Year holiday in an attempt to prevent the spread of the virus, raising concerns over the post-holiday demand in Asian polymer markets.

As MRC informed earlier, BP said the deadly coronavirus outbreak could cut global oil demand growth by 40% this year, putting pressure on Opec producers and Russia to curb supplies to keep prices in check.

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).
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MOSCOW (MRC) -- Indorama Ventures (IVL) has restarted its polyethylene terephthalate (PET) plant at Map Ta Phut, according to Apic-online.

A Polymerupdate source in Thailand informed that, the company has resumed operations at the plant on February 6, 2020. The plant was shut in mid-January, 2020 for maintenance.

Located at Map Ta Phut, Thailand, the PET plant has a production capacity of 110,000 mt/year.

As MRC wrote previously, IVL shut its PET plant in Thailand for a two-week maintenance turnaround in November 2018. The exact date of the shutdown could not be ascertained. Located at Lop Buri, Thailand, the PET plant has a production capacity of 180,000 mt/year.

According to MRC's ScanPlast report, the estimated consumption of polyethylene terephthalate (PET) in Russia decreased by 16% year on year in December 2019. Russia's overall estimated PET consumption totalled 696,810 tonnes in 2019, up by 1% year on year (690,130 tonnes in 2018).

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. 15,000 employees worldwide and consolidated revenue of USD 8.4 billion in 2017. The company is listed in the Dow Jones Sustainability Index (DJSI).
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MOSCOW (MRC) -- US oilfield equipment supplier National Oilwell Varco called the coronavirus a "wildcard" in the oil industry’s outlook, with an extended outbreak potentially hurting access to Chinese-make materials and foreign sales, reported Reuters.

The Houston-based company said further shutdowns at its Chinese suppliers could limit its production of certain products such as fiberglass resins and drilling pipe.

For now, National Oilwell has the latitude to make up lost ground, executives added, noting it has a diversified supply chain.

“(There is) still a lot of uncertainty related to the extent to which this will impact operations," Jose Bayardo, chief finance officer, said on an earnings call with investors.

China also is a growing market for its products, he said.

Chief Executive Clay Williams added that he was equally concerned about the virus’ impact on global oil demand, which could affect its oil and gas customers. National Oilwell is one of the largest suppliers of oil drilling equipment.

An outbreak of the coronavirus in China has roiled commodity markets in recent weeks. The Organization of the Petroleum Exporting Countries and its allies are weighing additional output cuts as demand for crude oil falls.

US crude futures were trading around $50.46 a barrel on Friday, on track for their fifth consecutive weekly decline.

Shares of National Oilwell were up 11% on Friday afternoon after it beat analysts forecasts for quarterly earnings.

"National Oilwell Varco has done a masterful job of controlling what it can control," analysts for Tudor, Pickering, Holt & Co wrote in a note on Friday, pointing to cost savings and working capital efficiencies.

As MRC informed earlier, BP said the deadly coronavirus outbreak could cut global oil demand growth by 40% this year, putting pressure on Opec producers and Russia to curb supplies to keep prices in check.

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 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).
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MOSCOW (MRC) -- Linde PLC has received a contract to provide technology for PJSC Sibur Holding’s cracker at Amur gas chemical complex (GCC), reported Kemicalinfo.

GCC is an integrated 1.5 million tons per year polyethylene and polypropylene production complex to be built near Svobodny in Russia’s far-east Amur region.

The contract was awarded to Linde under a consortium with Sibur subsidiary and project contractor NIPIgazpererabotka (Nipigaz).

As per the agreement, Linde will deliver engineering, procurement, and site services based on its proprietary technology for the GCC’s cracker.

Financial terms and details regarding the specific technology it will provide for the project were not disclosed.

As MRC wrote before, in June 2017, the heads of TAIF Group and Linde AG, the German holding, signed a memorandum of strategic cooperation for the period up to 2025 and a total investment of up to EUR12 billion. The document implies contracts on gas separation, industrial gases, but most importantly - on four stages of the construction of a new ethylene complex in Tatarstan.

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).

SIBUR is the largest integrated petrochemicals company in Russia. The Group sells its petrochemical products on the Russian and international markets in two business segments: Olefins & Polyolefins (polypropylene, polyethylene, BOPP films, etc.) Plastics, Elastomers & Intermediates (synthetic rubbers, EPS, PET, etc.). SIBUR’s petrochemicals business utilises mainly own feedstock, which is produced by the Midstream segment using by-products purchased from oil and gas companies. More than 26,000 employees working in SIBUR contribute to the success of customers engaged in the chemical, fast moving consumer goods (FMCG), automotive, construction, energy and other industries in 80 countries worldwide. In 2018, SIBUR reported revenue of USD 9.1 billion and adjusted EBITDA of USD 3.3 billion.
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