Ontario, Quebec order all non-essential businesses to shut down

MOSCOW (MRC) -- Ontario and Quebec are both ordering all non-essential businesses to shut down in an effort to help prevent the spread of COVID-19, said Canplastics.

The order in Ontario – made on March 23, about a week after Premier Doug Ford declared a state of emergency in the province – will come into effect on Tuesday, March 24 at 11:59 p.m. and will remain in place for at least two weeks.

The list of businesses that the province deems as essential was released by the government on the evening of March 23, and is available at this link.

Included on the list are supply chains – “businesses or essential services with the support, supplies, systems or services, including processing, packaging, distribution, delivery and maintenance” – and manufacturing – “businesses that extract, manufacture, process and distribute goods, products, equipment and materials, including businesses that manufacture inputs to other manufacturers (e.g. primary metal/ steel, blow molding, component manufacturers, chemicals, etc. that feed the end-product manufacturer)."

The province will also allow teleworking and online commerce at all times for all businesses. The newest announcement in Ontario comes as the province confirms that 503 people have tested positive for COVID-19.

Quebec has also closed down non-essential businesses. On March 23, Quebec Premier Francois Legault said the businesses will be ordered to close no later than midnight March 24, and until April 13. A list of essential services can be found at this link, and includes what the province calls “priority manufacturing activities including the manufacture of chemical products."

As MRC informed earlier, ExxonMobil said last Monday that it is looking to reduce spending significantly as a result of market conditions caused by the coronavirus disease 2019 (COVID-19) pandemic and commodity price decreases.

We also remind that 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.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 215,390 tonnes in the first month of 2020, up by 23% year on year. Shipments of all grades of high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) increased due to higher capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 127,240 tonnes in January 2020, up by 33% year on year. ZapSibNeftekhim's homopolymer PP accounted for the main increase in shipments.

mrcplast.com

Hillenbrand to sell Cimcool business to DuBois Chemicals

MOSCOW (MRC) -- Indiana-based Hillenbrand’s fully owned subsidiary Milacron Holdings has signed an agreement to sell its Cimcool business to DuBois Chemicals for USD224m, said Chemicals-technology.

In addition, Hillenbrand will receive USD26m in contingent purchase price upon a future sale of the combined DuBois and Cimcool businesses. The sale is part of Hillenbrand’s previously announced strategic review of alternatives for the business, which was part of the 2019 acquisition of Milacron Holdings.

The company intends to use proceeds from the sale for de-leveraging activities that will strengthen its financial position. Hillenbrand president and CEO Joe Raver said: “The divestiture of Cimcool aligns with our previously disclosed intent to seek strategic alternatives for the business and allows us to remain focused on the continued integration of the Milacron APPT and MDCS businesses with Hillenbrand."

DuBois specialises in customised and value-added speciality chemicals solutions and services. It manufactures a broad range of speciality chemical products and related equipment for a variety of industries.

DuBois president and CEO Jeff Welsh said: “We are excited that our customers will have access to a new set of solutions, applications experts, and technical service resources to support and add value to their businesses. Sorry, there are no polls available at the moment.

"We believe that this acquisition will allow us to increase our presence among significant customers and important segments. The expanded product portfolio of the combined organisation will also allow us to meet our customers’ evolving needs in new applications areas."

Cimcool produces metalworking fluids for the automotive, aerospace, and industrial sectors. The transaction is expected to be closed on 30 March this year.

As MRC informed earlier, ExxonMobil said last Monday that it is looking to reduce spending significantly as a result of market conditions caused by the coronavirus disease 2019 (COVID-19) pandemic and commodity price decreases.

We also remind that 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.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 215,390 tonnes in the first month of 2020, up by 23% year on year. Shipments of all grades of high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) increased due to higher capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 127,240 tonnes in January 2020, up by 33% year on year. ZapSibNeftekhim's homopolymer PP accounted for the main increase in shipments.
MRC

Phillips 66 cuts rates at Bayway refinery as gasoline cracks fall

MOSCOW (MRC) -- Phillips 66 has cut rates at its 258,000 b/d Bayway refinery as gasoline cracks fall, reported S&P Global with reference to a source familiar with refinery operations Monday.

The source said runs had been cut but he was unsure of by how much. A market source said run cuts were between 15% and 20%.

The refinery's 145,0000 b/d gasoline-making fluid catalytic cracking unit just returned from over a month of unplanned maintenance as the gasoline demand slowdown from COVID-19 hit.

A company spokesman wasn't immediately available for comment.

NYMEX front-month RBOB cracks from front-month NYMEX crude averaged USD3.34/b for the week ended March 20. In early Monday trade, they were USD1.35/b.

NYMEX front-month ULSD cracks from front-month NYMEX crude were currently USD19.45/b. For the week ended March 20, they averaged USD18.00/b.

As MRC informed earlier, 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.

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).
MRC

Ineos to build hand sanitiser plant in Britain in 10 days to help with shortage

MOSCOW (MRC) -- British chemical giant Ineos said on Tuesday it will build a hand sanitiser plant in northeast England in 10 days to make 1 million bottles a month to help with a European shortage, said Reuters.

The factory will be near Middlesborough and supply hospitals, schools, places of work, pharmacies and supermarkets.

Products for hospitals will be issued for free, the company said. A similar factory will be built in Germany.

Ineos is Europe’s largest producer of the two main raw material needed for hospital grade hand sanitiser at its sites in Grangemouth, Scotland and in northern Germany and produces almost 1 million tonnes.

As MRC informed before, in January 2019, Ineos announced Antwerp as the location for its new petrochemical investment. The EUR3 billion investment will be the biggest ever made by INEOS and is first cracker to be built in Europe in 20 years. The investment is a game changer for the chemical sectors and will bring huge benefits to the Belgium and wider European economies.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 215,390 tonnes in the first month of 2020, up by 23% year on year. Shipments of all grades of high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) increased due to higher capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 127,240 tonnes in January 2020, up by 33% year on year. ZapSibNeftekhim's homopolymer PP accounted for the main increase in shipments.

Ineos is a global manufacturer of petrochemicals, specialty chemicals and oil products employing 22,000 people. It has 34 businesses, with a production network spanning 183 manufacturing facilities in 26 countries.
MRC

Total delays restart of Grandpuits refinery indefinitely as virus outbreak hits fuel demand

MOSCOW (MRC) -- French oil and gas major Total said on Monday that it has postponed the restart of its 102,000 barrels per day (bpd) Grandpuits refinery near Paris indefinitely because of a drop in fuel demand caused by the coronavirus outbreak, reported Reuters.

The refinery halted production at the start of the month for scheduled maintenance at some units. It was expected to resume production at the end of the month, Total said in a statement.

"Due to the fall in fuel demand caused by the Covid-19 epidemic... management has decided to postpone the restart of the refinery," the company said, adding that only partial activities would be maintained.

As MRC wrote before, Total said Tuesday it had a suspected case of coronavirus on a rig at its Culzean gas field in the UK North Sea, but production was unaffected.

We also remind that Total has recently disclosed that it is evaluating construction of a new gas cracker at its Deasan, South Korea, joint venture (JV) with Hanwha Chemical.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 215,390 tonnes in the first month of 2020, up by 23% year on year. Shipments of all grades of high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) increased due to higher capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 127,240 tonnes in January 2020, up by 33% year on year. ZapSibNeftekhim's homopolymer PP accounted for the main increase in shipments.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
MRC