Imports of injection moulding PET chips to Russia increased by 31% in January

MOSCOW (MRC) - Imports of PET chips into Russia increased by 31% in January of this year compared to the same time a year ago and reached 11,570 tonnes compared to 8,8700 tonnes (excluding supplies from Belarus over the past two months), according to MRC's DataScope.

A month earlier, import deliveries of material to the Russian market were at the level of 14,940 tonnes. The share of Chinese material was 58% (6,700 tonnes) in January versus 75% (11,600 tonnes) a month earlier.

In January, the share of Chinese material in total imports amounted to 94% (8,300 tonnes).

The largest Chinese material suppliers were Jiangsu Sanfangxiang - 2,900 tonnes, Yisheng - 1,700 tonnes, Indorama - 1,200 tonnes.

MRC

MOSCOW (MRC) -- Overall imports of general purpose polystyrene (GPPS) and high impact polystyrene (HIPS) to Ukraine dropped in the first month of 2020 by 8% year on year to 1,440 tonnes, according to MRC's DataScope report.

This figure was at 1,570 tonnes in January 2019.

GPPS and HIPS imports were 1,940 tonnes in December 2019.

At the same time, Ukrainian companies increased their HIPS imports in January 2020 by 48% year on year: from 570 tonnes in January 2019 to 840 tonnes, imports were 660 tonnes a month earlier.

At the same time GPPS imports fell in January 2020 by 40% to 600 tonnes from 1,000 tonnes a year earlier. Imports of material were at 1,280 tonnes in December 2019.

Imports of Russian GPPS and HIPS of Nizhnekamskneftekhim to Ukraine grew in the first month of 2020 by 6% year on year to 699 tonnes. This figure was at 660 tonnes in January 2019. Imports of material from Russia was in December 2019 at the minimum for the recent years - 480 tonnes, down by 46% from the stated period.

Nizhnekamskneftekhim's material accounted for 48% in the overall structure of imports to the Ukrainian market in the first months of 2020, compared to 42% in January 2019.

MRC

MOSCOW (MRC) -- Sahara International Petrochemical Co. (Sipchem) has announced an unplanned turnaround maintenance at its propane dehydrogenation (PDH) facility owned by subsidiary Al Waha at Jubail, Saudi Arabia, reported Chemweek.

The turnaround started 3 March 2020 and is planned to be completed within two weeks.

This is the latest stoppage at the PDH plant, which has been dogged by operational problems over the past few years. Sipchem says the aim is to enhance the reliability of the plant and allow it to achieve its future operational targets.

The PDH plant is designed to produce 467,000 metric tons/year of propylene. It supplies a 450,000-metric tons/year of polypropylene (PP) plant at the site. Financial impact of the unplanned stoppage will be reflected in Sipchem’s first-quarter financial results. Al Waha has taken the necessary actions to limit the potential impact on customers, Sipchem says.

As MRC wrote previously, Al Waha Petrochemicals shut its PP plant for a maintenance turnaround from 27 December 2019 to 8-9 January 2020.

Propylene is the main feedstock for the production of 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).

Established in 1999, Saudi International Petrochemical Company (Sipchem) manufactures and markets methanol, butanediol, tetrahydrofuran, acetic acid, acetic anhydride, vinyl acetate monomer. Besides, it has launched several down-stream projects to manufacture ethylene vinyl acetate, low density polyethylene, ethyl acetate, butyl acetate, cross linkable polyethylene, and semi conductive compound.
MRC

MOSCOW (MRC) -- Lotte Chemical, has declared a force majeure (FM) on styrene monomer (SM) supplies from its unit in Daesan, according to Apic-online.

A Polymerupdate source in the South Korea informed that, the company has declared a FM following an unplanned shutdown at the upstream cracker. Further details on duration of the FM could not be ascertained.

As MRC informed earlier, the cracker was shut, following an explosion at the plant's compressor on Wednesday, February 4, 2020, at around 3:00 am.

Located at Daesan, South Korea, the SM plant has a production capacity of 580,000 mt/year.

SM is the main feedstock for the production of polystyrene (PS).

According to MRC's ScanPlast report, Russia's estimated consumption of PS and styrene plastics was 46,260 tonnes in December 2019, up by 8% year on year. The estimated consumption of PS and styrene plastics totalled 500,660 tonnes in 2019, down by 1% year on year. Russian producers of PS and styrene plastics produced 44,960 tonnes of material in December 2019, up by 1% year on year.

Lotte Chemical runs two naphtha crackers in South Korea. One cracker is located in Daesan county in Seosan which can produce 1.1 million tonnes per year of ethylene with the other 1.2 million tonnes per year cracker in the southwestern city of Yeosu.
MRC

MOSCOW (MRC) -- Alok Industries Ltd on Saturday allotted 83.33 crore equity shares of Rs1 each at a premium of Rs2 per equity share for cash at a total consideration of Rs250 crore to Reliance Industries Ltd (RIL), according to The Hindu BusinessLine.

Pursuant to this acquisition, RIL will hold 37.7 per cent equity share capital of the Mumbai-headquartered integrated textile manufacturer.

In a stock exchange notice, RIL said the acquisition is in accordance with the approved Resolution Plan.
RIL further said that in accordance with the approved Resolution Plan, Alok Industries has today also allotted 250 crore - 9 per cent optionally convertible preference shares (OCCP) of Rs1 each for cash at par, for a total consideration of ?250 crore to RIL.

In March 2019, RIL had intimated the exchanges regarding approval by the National Company Law Tribunal, Ahmedabad Bench (NCLT) of the Resolution Plan, jointly submitted by RIL and JM Financial Asset Reconstruction Company Ltd (JMFARC) for acquisition of Alok Industries under the Corporate Insolvency Resolution Process of the Insolvency and Bankruptcy Code 2016, vide its order dated March 8, 2019.

"Approval of National Company Law Tribunal, Ahmedabad Bench and Competition Commission of India have been received. The acquisition does not fall within related party transactions and none of RIL’s promoter/promoter group/ group companies have any interest in the transaction," RIL’s statement said.

Alok Industries, incorporated in India on March 12, 1986, has interests in polyester and cotton segments. It has a product suite comprising cotton yarn, apparel fabrics, bed linen, terry towels, embroidery, garments and polyester yarn. It has representative offices for sales promotion in Sri Lanka and Bangladesh

As per RIL’s statement, Alok Industries turned around in FY19, posting a net profit of Rs2,284 crore against a huge net loss of Rs18,207 crore in FY18.

As MRC reported before, in November 2019, Reliance Industries confirmed plans to invest 700 billion Indian rupees (USD9.75 billion) to establish a crude-oil-to-chemicals (COTC) complex at the company's Jamnagar, India.

The MCC/HSFCC complex will have combined capacity for 8.5 million metric tons/year (MMt/y) of ethylene and propylene, and total extraction capacity for 3.5 MMt/y of benzene, toluene, and xylenes. It will also have combined capacity for 4.0 MMt/y of para-xylene (p-xylene) and ortho-xylene. The steam cracker will have combined capacity for 4.1 MMt/y of ethylene and propylene, and feed crude C4s to a 700,000-metric tons/year butadiene extraction plant. Reliance will also add 1.3 MMt/y of p-xylene capacity at existing plants at Jamnagar.

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).

Reliance Industries is one of the world's largest producers of polymers. Thus, the company produces among others polypropylene, polyethylene and polyvinyl chloride.
MRC