Chandra Asri to test MLDPE production at new plant in Indonesia in March

MOSCOW (MRC) -- PT Chandra Asri Petrochemical Tbk (CAP) is planning to conduct a trial production at its newly expanded polyethylene (PE) plant in Cilegon in March 2020 to produce metallocene PE grade (MLLDPE), according to CommoPlast.

The company expanded PE capacity in 2019 by adding one more production line that pushed the total output to 736,000 tons/year. CommoPlast was informed that the newest 400,000 tons/year high density polyethylene (HDPE)/ linear low density polyethylene (LLDPE) swing line would be utilized for the MLLDPE trial production purpose.

At the moment, it is unclear on how long the MLDPE trial run would take, however, a source close to the producer expected the line to return to produce normal grade within a month.

In the same complex, Chandra Asri owns a 560,000 tons/year polypropylene (PP) plant and a steam cracker that produces 900,000 tons/year of ethylene and 490,000 tons/year of propylene.

As MRC reported earlier, PT Chandra Asri Petrochemical shut its naphtha cracker in Cilegon for maintenance in early-August 2019. The plant remained off-stream for a period of around 6-7 weeks.

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).

CAP is the largest integrated petrochemical company in Indonesia and operates the country’s only world-scale size Naphtha Cracker. The CAP plant is strategically located in Banten province, providing convenient access to key customers.
MRC

Trinseo reduces March PS prices in Europe

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex binders and synthetic rubber, and its affiliate companies in Europe have announced a price reduction for all polystyrene (PS) grades in Europe, according to the company's press release.

Effective March 1, 2020, or as existing contract terms allow, the contract and spot prices for the products listed below went down as follows:

-- STYRON general purpose polystyrene grades (GPPS) -- by EUR65 per metric ton;
-- STYRON and STYRON A-Tech and STYRON X- Tech high impact polystyrene grades (HIPS) - by EUR65 per metric ton.

As MRC informed before, Trinseo increased its prices for all PS grades, acrylonitrile-butadiene-styrene (ABS) and acrylonitrile styrene copolymer (SAN) grades on 1 February 2020, as stated below:

- STYRON GPPS grades - by EUR100 per metric ton;
- STYRON and STYRON A-Tech HIPS grades - by EUR100 per metric ton;
- MAGNUM ABS resins - by EUR55 per metric ton;
- TYRIL SAN resins - by EUR55 per metric ton.

According to ICIS-MRC Price report, prices of Russian PS will remain unchanged until the end of the first quarter. Nizhnekamskneftekhim rolled over February prices of its material for shipments in March. Penoplex and Gazprom neftekhim Salavat also maintained their GPPS prices the same.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD4.6 billion in net sales in 2018, with 16 manufacturing sites around the world, and approximately 2,500 employees.
MRC

ExxonMobil calls for tighter methane regulations

MOSCOW (MRC) -- ExxonMobil called for tighter regulation of the greenhouse gas methane and offered up its own in-house rules as a model for companies and lawmakers worldwide, reported Reuters.

The largest US oil company laid out the guidelines it follows - some of which have been rolled back by the Trump administration - at a time when the industry faces growing pressure from investors to reduce its environmental footprint.

The world’s top oil and gas companies are under heavy pressure from investors and climate activists to meet the 2015 Paris climate goal of limiting global warming to below 2 degrees Celsius from pre-industrial levels.

Exxon and US rival Chevron Corp have been far less ambitious with their greenhouse gas reduction targets than their European rivals.

BP Plc in February set one of the oil sector’s most ambitious targets for curbing carbon emissions, including getting emissions from its operations and barrels produced to net zero.

Exxon will hold its annual investor meeting on Thursday and is expected to detail its climate goals.

Exxon started its methane reduction program in 2017 in its shale fields and has been able to reduce emissions by 20%. It has since started rolling out the methane guidelines to the rest of the company, which "demonstrate what’s practicable and achievable," said Chief Executive Darren Woods.

The program includes leak detection and repair, having companies report their total methane emissions and minimizing venting, the release of unburned methane, which is far more environmentally harmful than flaring it.

Exxon’s announcement came early Tuesday during the annual investor day presentation for its chief US rival, Chevron Corp, which has tied compensation to the reduction of methane emissions.

Last year, the rivals rolled out ambitious production plans for the Permian Basin on the same day, setting up a showdown in the top US shale field.

As MRC informed before, in September 2019, ExxonMobil announced plans to spend GBP140 million over the next two years in an additional investment program at its Fife ethylene plant, which has a capacity of more than 800,000 t/y.

We also remind that ExxonMobil Chemical completed the restart of its Fife ethylene plant at Mossmorran, Scotland, in late February 2020. With its 830,000 mt/year of ethylene production capacity, the plant is one of Europe's largest petrochemical cracker sites. It has returned to the market after a shutdown of almost six months due to planned and unplanned works since August.

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).

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC

China olefins weighed down by downstream inventories build

MOSCOW (MRC) -- Industry watchers had expected bullish ethylene and propylene spot prices in China after the Lunar New Year holiday, but the coronavirus disease 2019 (COVID-19) outbreak has turned the situation on its head, according to Chemweek.

In January, expectations that prices would rise were based on reduced offers from steam crackers and rising Chinese derivative demand for February production, according to the IHS Markit Asia Light Olefins report. However, as the scale of the epidemic expanded and amid draconian measures taken by the Chinese government to contain the spread, demand destruction became inevitable.

China’s ethylene capacity in 2020 stood at 32.5 million metric tons/year (MMt/y), with the output loss in January put at 143,000 metric tons, or 5.7% of capacity, according to IHS Markit data. By 21 February, 60% of Chinese ethylene producers had reduced operating rates to around 80% due to weak derivative demand and production loss was estimated at 179,000 metric tons, or 7.63%, for the month.

Polyethylene (PE) producers, for instance, have reported stocks surging to 23 days in mid-February, up from seven days in early February. Warehouses of PE producers’ inventory were filled to the brim and around 64% of them had to cut run rates, resulting in some 250,000 metric tons of PE supply loss this month, according the IHS Markit COVID-19 Weekly Focus Report.

On PE demand, however, travel restrictions meant that migrant workers were unable to return to the factories. Operation rates at PE converters will remain subdued, and demand loss stemming from low run rates or plant closures is estimated at 2.5 million metric tons (MMt) in February. However, as China domestic PE prices are at a record low, IHS Markit expects converters to replenish their feedstock and boost consumption by almost 1 MMt. The very attractive PE price will also increase demand for virgin PE over recycled PE. As such, the net demand for virgin PE will be further reduced to 600,000 metric tons, down from 2.5 MMt.

Consumption of monoethylene glycol (MEG), a fiber intermediate, has declined by at least 20% compared with a month ago as polyester units stayed shut after the two-week extended Lunar New Year holiday since employees were unable to return to work due to transport curbs and travel restrictions. With these restrictions easing, resumption of operation is expected to slowly recover. Significant cuts in other derivatives such as ethylene dichloride (EDC), vinyl chloride monomer (VCM), and styrene are adding to ethylene supply pressure.

Unlike ethylene, mainly produced at naphtha crackers, propylene can be produced at refineries or on-purpose units, which make up around 42% of China’s total propylene output. Operation rates at these units were at 85% in January but fell to 70% by the third week of February, resulting in an estimated production loss of 588,000 metric tons.

Downstream polypropylene (PP) capacity loss is expected at 450,000 metric tons in February as more than 50% of Chinese PP producers have cut run rates. PP inventory had risen to almost 20 days in mid-February, up from eight days at the beginning of the month, according to the COVID-19 report. Logistic issues continue to hurt the industry as producers were unable to ship their products to the market because of travel restrictions.

Hubei province, the epicenter of the COVID-19 epidemic, is a major automotive manufacturing hub and PP is used in light, medium, and heavy vehicle parts. The cessation of automotive production has a direct impact on PP demand.

While converters have restarted since 16 February, many factories are still waiting for migrant workers to trickle back from their hometowns.

On a more optimistic beat, PP is also used in the manufacturing of masks, aprons, and syringes. Demand for these medical products has increased sharply since the virus outbreak but as these are very lightweight products, the demand surge in this sector cannot compensate for the loss in other sectors, according to the report.

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

According to ICIS-MRC Price report, negotiations over March PE shipments began in Russia last week. Some sellers announced further price increases in the spot low density polyethylene (LDPE) market because of tight supply. In the high density polyethylene (HDPE) market, on the contrary, some sellers announced lower prices. At the same time, negotiations over March contract prices of Russian PP also started last week. Local converters reported a price reductions, with propylene copolymers accounting for the greatest price decrease.
MRC

ABS imports to Russia down by 16% in Jan 2020

MOSCOW (MRC) -- Overall imports of acrylonitrile-butadiene-styrene (ABS) to the Russian market decreased in the first month of 2020 by 16% year on year to 2,300 tonnes, according to MRC's DataScope report.

This figure was at 2,750 tonnes in January 2019.

Imports of material dropped by 6% from 2,440 tonnes a month earlier.


ABS imports to the country have continued to decline for the third month in a row.

South Korean companies LG Chem and Lotte Advanced accounted for more than half of the country's ABS imports. Lotte Advanced increased its shipments of material in January 2020 by 3 times year on year, whereas LG Chem reduced them by 3%.

Styrolution and Trinseo shipped the bulk of European ABS. The share of their deliveries in the total imports fell to 18% in January 2020 from 40% a year earlier. Trinseo's imports of material accounted for the greatest reduction - shipments fell by 4 times.

MRC