Karpatneftekhim resums HDPE production

MOSCOW (MRC) -- Karpatneftekhim (Kalush, Ivano-Frankivsk region), Ukraine's largest petrochemical plant, has resumed its high density polyethylene (HDPE) production after a long and forced outage, according to ICIS-MRC Price report.

The plant's representative and customers said the Ukrainian producer had launched its HDPE production by 23 March. The shutdown of polyethylene (PE) production was forced and took place in early January due to high feedstock prices amid low PE prices.

The situation in feedstocks markets has changed dramatically since February, thus, oil prices fell significantly, which allowed to restart PE production.

As reported earlier, Karpatneftekhim's overall HDPE output exceeded 93,000 tonnes in 2019, up by 4% year on year.

Karpatneftekhim is one of the largest enterprises of Ukraine's petrochemical complex. Currently, the plant can produce annually 300,000 tonnes of PVC, 200,000 tonnes of caustic soda, about 180,000 tonnes of chlorine, as well as 250,000 tonnes of ethylene and 100,000 tonnes of polyethylene.
MRC

MOSCOW (MRC) -- Lotte Chemical of South Korea has announced an indefinite force majeure on supplies of products from its ethylene cracker in Daesan after an explosion that injured at least 31 people, according to Kemicalinfo.

The explosion occurred on March 4, about 3 am South Korea time from a fire at a compressor unit within the naphtha cracker. The fire has now been extinguished, and investigation to determine the extent of the damage is under way.

The cracker complex along with the 1.1 million ton per year ethylene cracker also produces 550,000 ton per year of propylene and 190,000 ton per year of butadiene. The cracker also feeds an aromatics unit that can produce 240,000 ton per year of benzene, 120,000 ton per year of toluene and 60,000 ton per year of solvent grade mixed xylenes.

Other downstream facilities were also subsequently shut as feedstock from the cracker dries up. These are a 130,000 ton per year of low-density polyethylene, 290,000 ton per year of LLDPE, 500,000 ton per year of polypropylene, 730,000 ton per year of ethylene glycol and 580,000 ton per year of styrene monomer.

The company is yet to announce on when the cracker will restart following this outage.

As MRC reported earlier, Lotte Chemical has shut down its Deasan cracker for maintenance turnaround on October 14, 2019. The cracker resumed production on November 10, 2019. Located at Daesan in South Korea, currently the cracker has an ethylene capacity of 1.1 million mt/year and propylene capacity of 540,000 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 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.

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) -- Dow Inc. has started producing hand sanitizer at its manufacturing site in Stade, Germany, for donation to pharmacies and hospitals in Germany, reported MORNINGSTAR.

The company is also repurposing an existing US facility to produce hand sanitizer.

Dow said it has committed USD3 million to coronavirus relief efforts, with USD2 million slated for immediate support that includes help for nonprofits and World Health Organization efforts, plus USD1 million "to build community resilience in the recovery phase."

As MRC informed previously, Dow Chemical began major maintenance on the LHC 1 cracker at Terneuzen, Netherlands from 9 September, 2019. LHC stands for Light Hydro Carbons, or hydrocarbons. The cracker splits naphtha - a derivative of crude oil - into hydrocarbons such as ethylene and propylene. These are the raw materials for the other Dow factories that make chemicals and plastics from them. Together with two other naphtha crackers, LHC 1 forms the heart of the Terneuzen Dow site.

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.

The Dow Chemical Company is an American multinational chemical corporation headquartered in Midland, Michigan, United States. Dow is a large producer of plastics, including polystyrene (PS), polyurethane, polyethylene, polypropylene, and synthetic rubber.
MRC

MOSCOW (MRC) -- Italy, which has become a major hotspot in the COVID-19 pandemic, has given its plastics machinery making sector the green light to continue building machines, said Canplastics.

A decree of the Italian President of the Council of Ministers (DPCM) issued on March 22 gives all Italian manufacturers of plastics and rubber machinery permission to continue their activity, since they belong to a production chain defined as necessary.

But as noted by the Italian trade association Amaplast, such factories will have to comply with a protocol signed on March 24 both by Government and social parties that lists all the measures that hinder and limit the spread of COVID-19 infection inside and outside the work sites and keeping the safety and the health of people involved in the production cycle as a priority.

"Moreover, companies are asked to give a sign of discontinuity as compared to the past, thus limiting production activity only to those units which activity is really essential,” Amaplast said in a March 23 statement. “As a consequence, workshifts will also have to be re-scheduled, based on real necessities."

"As for the supply of materials and components, a few delays are now being registered but – at the moment – they are not affecting the the standard execution of production,” Amaplast said. “Similarly, deliveries of machinery and customers’ assistance are going on as usual."

As of March 23, Italy has reported a total of 6,077 deaths from the coronavirus, with a total of 63,928 cases of infection reported across the country.

As MRC infromed earlier, Italian oil major Eni continues to operate its domestic refineries and power plants in northern Italy normally. Despite sending home staff at its headquarters in Milan as local coronavirus cases mount. All Eni employees based in the company's San Donato Milanese and central Milan offices were asked on Wednesday to work home until February 28, the spokesman said. He declined to say if any actual or suspected cases of coronavirus has been identified at the sites.

As MRC informed earlier, Italy’s Versalis (part of Eni) took its cracker in Dunkirk, France offline in early September, 2019, due to a fire which broke out at the company’s petrochemical plant. Local media sources also reported that the fire was brought under control with no reported injuries. The cracker has a production capacity of 380,000 tons/year of ethylene and 95,000 tons/year of propylene.

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

MOSCOW (MRC) -- US Senators Chuck Grassley and Joni Ernst of Iowa have asked the Trump administration not to appeal a court ruling that would slash the use of small refinery biofuel waivers, but have not heard back yet on its decision, reported Reuters with reference to Grassley's statement.

"We haven’t been told one way or another officially," he told reporters on a conference call.

The US Renewable Fuel Standard requires oil refiners to blend billions of gallons of biofuels like ethanol into the nation’s fuel pool, a boon to US corn country.

But the Environmental Protection Agency that administers the program grants waivers to small refineries that can prove compliance would cause them financial strain.

The Trump administration has roughly quadrupled the number of waivers EPA has granted, infuriating the biofuel industry and its representatives who say they hurt demand.

A court in January ruled that the EPA had been overusing the waivers in a decision that could gut the program.

A group of Texas lawmakers has been urging the Trump administration to appeal the decision, arguing it could cost countless blue-collar jobs in the refining industry.

As MRC wrote before, the Trump administration has recently decided to drastically scale back the US Environmental Protection Agency's program exempting small oil refineries from the country's biofuel regulations after a court case cast doubt on the legitimacy of the program.
MRC