Shaoxing Sanyuan lowers run rates at No.1 PDH unit

MOSCOW (MRC) -- Shaoxing Sanyuan Petrochemical, has reduced run rates at its No. 1 propane dehydrogenation (PDH) unit, according to Apic-online.

A Polymerupdate source in China informed that, the company is currently operating the unit at around 70-75% of production capacity levels.

Located in Zhejiang, China, the No.1 PDH unit has a propylene production capacity of 450,000 mt/year.

As MRC wrote before, Shaoxing Sanyuan Petrochemical took off-stream its PDH unit in late January 2015, owing to technical issues. A restart schedule for the unit could not be determined. Located in Zhejiang province, China, the unit has a propylene capacity of 450,000 mt/year.

We also remind that Chinese PDH plants' average operating rate was estimated at around 76% over February 1-5, 2020, up from an average of 68% in January, 2020.

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

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).
MRC

MOSCOW (MRC) -- Vietnam's Nghi Son Refinery and Petrochemical (NSRP) is offering a gasoil cargo for export for the first time, reported Reuters with reference to a source with the refinery.

"We are exporting because domestic sales have been slow recently," the source said, declining to be identified because he was not authorised to speak with media.

The delivery schedule for the export cargo of 40,000 kilolitres, about 251,000 barrels, of gasoil with a sulphur content of 50 parts per million is from Feb. 22-25, according to two trade sources.

The tender closes at noon (0500 GMT) on Feb. 17, according to the tender document reviewed by Reuters.

The 200,000-barrels-per-day Nghi Son refinery, which began commercial production in late 2018, offered a fuel oil cargo last month.

NSRP produced 4.6 million tonnes of petroleum fuel in 2019, its first year of commercial operation, reducing Vietnam's reliance on foreign petroleum imports.

The USD9 billion refinery, located 260 km (163 miles) south of Hanoi, is 35.1% owned by Japan's Idemitsu Kosan Co, 35.1% by Kuwait Petroleum, 25.1% by PetroVietnam and 4.7% by Mitsui Chemicals Inc.

As MRC informed earlier, NSRP undertook a planned shutdown at its Polypropylene (PP) unit in Vietnam on October 22, 2019. The unit remained shut till end-November, 2019. Located at Nghi son, Vietnam, the PP unit has a production capacity of 400,000 mt/year.

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).
MRC

MOSCOW (MRC) -- Brazilian imports of polyvinyl chloride (PVC) products were up 22.3% in January compared to a year earlier, at 37,661 mt, reported S&P Global with reference to Ministry of Development and Foreign Trade's data showed Wednesday.

The imports were valued at USD34.37 million FOB. In January 2019, the 30,803 mt imported were valued at USD28.01 million FOB.

During the month, Colombia was the lead exporter to Brazil, with 26,361 mt, followed by Taiwan, with 2,541 mt, and Germany, with 1,753 mt.

Imports of PVC obtained in suspension and in its primary forms rose 22.1%, to 33,761 mt, valued at USD29.74 million FOB.

The lead exporter to Brazil during January was Colombia, with 24,970 mt, followed by Taiwan, with 2,541 mt, and the US, with 1,738 mt.

Imports of PVC obtained in emulsion and in its primary forms rose 24.5%, to 3,776 mt, valued at USD4.45 million FOB.

The lead exporter to Brazil during January was Colombia, with 1,391 mt, followed by Germany, with 1,210 mt, and Sweden, with 674 mt.

Imports of other PVC in its primary forms rose 14.2%, to 123 mt, valued at USD180,865 FOB.

The lead exporter to Brazil during January was Hong Kong, with 550 mt, followed by China, with 259 mt, and Germany, with 235 mt.

According to MRC's ScanPlast report, January prices of Russian emulsions and suspensions for domestic consumers remained at the level of December. Russia's estimated consumption of unmixed PVC was about 972,920 tonnes in January-December 2019, up by 4% year on year. The Russian emulsion and suspension PVC markets showed an increase in supplies. Last month's estimated consumption of SPVC (excluding exports to Belarus) decreased to 64,430 tonnes from 67,430 tonnes in November.
MRC

MOSCOW (MRC) -- Linde PLC announced it has commissioned a new air separation unit (ASU) in Freeport, Texas, as part of a long-term agreement to supply MEGlobal Americas Inc.’s new monoethylene glycol (MEG) plant at Oyster Creek petrochemical complex in Freeport, according to Kemicalinfo.

The new ASU will supply oxygen and nitrogen to MEGlobal Oyster Creek for use in its MEG manufacturing process. The ASU also will supply Linde’s industrial gas pipeline system, adding new argon capacity, Linde said.

In addition to the ASU, Linde started a new carbon dioxide (CO2) plant in Freeport that will recycle crude CO2 supplied from an unidentified MEGlobal process.

“The new ASU and the expansion of our Gulf Coast pipeline system further strengthen Linde’s ability to reliably supply customers throughout the region and positions us for future growth in the USGC,” said Jeff Barnhard, Linde’s vice-president for the US South region.

The details regarding capacities of either the ASU or CO2 plant were not disclosed.

As MRC reported earlier, MEGlobal Americas officially began production at its 750,000 ton per year MEG plant in October last year to meet the growing demand for ethylene glycol products in the US and Asia-Pacific markets, as well as its strategy to expand globally.

MEG is one of the main feedstocks for the production of polyethylene terephthalate (PET).

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).

MEGlobal Americas is a subsidiary of Equate Petrochemical Co. of Kuwait’s Dubai-based MEGlobal International FZE. Established in July 2004, MEGlobal is a world leader in the manufacture and marketing of merchant monoethylene glycol and diethylene glycol (EG).

Equate Petrochemical is an international JV of Kuwait’s state-owned Petrochemical Industries Co. (42.5%), Dow (42.5%), Boubyan Petrochemical Co. (9%) and Qurain Petrochemical Industries Co. (6%).
MRC

MOSCOW (MRC) -- China's independent refineries in eastern Shandong province have cut February run rates to a four-year-low of around 40% in February, down from 63.5% in January, as product sales slump due to the coronavirus outbreak, refinery sources and analysts told S&P Global Thursday.

Twelve refineries with a combined capacity of 39.6 million mt/year have shut since late January, resulting in the average run rate in the province falling to 40.9% in February, according to local energy information provider JLC.
These include ChemChina's 5 million mt/year Zhenghe Petrochemical refinery, which was taken offline earlier this week. The company's Changyi Petrochemical and Huaxing Petrochemical operations, with a combined capacity of 15 million mt/year, are also slated to close soon, a JLC analyst said.

The 12 shutdowns over late January-early February take the total number of refineries currently idled in JLC's monthly survey of 44 refineries to 20.

The 44 refineries have a total capacity of 172.4 million mt/year (3.4 million b/d) and account for 50%-60% of China's total independent refining capacity.

A number of refineries have also shut down secondary units in addition to lowering crude throughput, market sources said.

"The Shandong provincial government has restricted road transportation to limit the coronavirus spread, making it difficult to send out oil products and resulting to super high inventories," a refinery source in Shandong said.

"We all have to cut throughput, some even shut down, due to high product inventories amid bad logistics," a Weifang-based independent refinery source said.

In addition, demand for oil products that had been falling since late December was dampened further by the coronavirus outbreak in January as residents in several regions were placed under home isolation, reducing driving activity and halting major construction projects.

Oil product stocks surged 191.1% month on month to a record high 2.8 million mt in January from a 6-month high of 966,000 mt in December, JLC data showed.

Gasoline stocks comprised 1.06 million mt of the total and gasoil 1.75 million mt.

The average run rate at the 44 refineries had already hit a five-month low of 63.5% in January, sliding from 72.2% in December and a record high 73.9% in November, Platts' calculations based on JLC data showed. Feedstock consumption in January fell 12.1% on month to 9.1 million mt, or 2.16 million b/d, Platts calculations showed.

Of the refineries surveyed in January, 24 of the 36 operational refineries cut run rates and of the rest, a third raised run rates. The top five refineries cracked a combined 2.6 million mt of crude, comprising about 28.5% of the total crude consumption by the surveyed refineries.

Lula surpassed ESPO to top the crude list in January, with 1.42 million mt cracked. Oman crude rose to third place despite its consumption falling 11.8% from December.

A total 34 grades of imported crude were cracked by the surveyed refineries in January, compared with 37 in December.

Of the 10 most consumed grades in the month, Urals posted the biggest month-on-month spike of 27.3% to 420,000 mt. ChemChina's three refineries cracked the grade, along with Luqing Petrochemical and Wonfull Petrochemical. Urals typically competes with Oman when independent refineries choose feedstocks.

We remind that, as MRC wrote previously, Sinopec Guangzhou Petrochemical, part of China's petrochemical giant - Sinopec, resumed operations at its cracker in China on December 5, 2019, following a turnaround. The cracker was shut for maintenance on October 12, 2019. Located in the Guangzhou province of China, the cracker has an ethylene production capacity of 260,000 mt/year and propylene production capacity of 150,000 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 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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