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MOSCOW (MRC) -- US nonfuel-use propylene inventories totaled 5.496 million barrels (bbl) during the week ending 20 March, up 145,000 bbl (2.7%) from the previous week and roughly even with the level of two weeks ago, reported Chemweek with reference to the US Department of Energy.
Propane and propylene stocks decreased by 1.8 million bbl (2.7%) to a total combined inventory of 64.9 million bbl.
Combined propane and propylene stocks in Gulf Coast (PADD 3) region decreased by 1.3 million bbl to 48.6 million bbl week over week. The Midwest (PADD 2) remained flat at 10.5 million bbl. PADD 1 inventories dropped 300,000 bbl to 4 million bbl, and PADDs 4 and 5 decreased by 300,000 bbl to 1.8 million bbl.
Products supplied for propane and propylene fell this week by 20,000 b/d on the week to 1,059,000 b/d.
Propane and propylene imports week over week saw an increase of 26,000 b/d to 149,000 b/d, and exports rose 285,000 b/d to 1,433,000 b/d.
US inventories are up 25.7% from the year-ago period.
OPIS is an IHS Markit company.
We reminad that, as MRC informed before, Enterprise Products Partners' Mont Belvieu propane dehydrogenation (PDH) unit in Texas restarted from planned maintenance in the first week of December, 2019. The PDH unit went offline for maintenance on November 13. That day, the company said in a filing with the Texas Commission on Environmental Quality that the RAC "B" turbine shut down, which resulted in flaring. The flaring was estimated to last 72 hours. The unit has a capacity of 750,000 mt/year, according to Platts data.
Propylene is the main feedstock for the production of polypropylene (PP).
According to MRC's ScanPlast report, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down 6% year on year. Homopolymer PP accounted for the main decrease in supplies.
MRC
US propylene inventory rises by 2,7% in the 3rd week of March
PP production in Russia increased by 53% in January-February 2020
February PP production in the country decreased to 157,700 tonnes, compared with 168,600 tonnes in January; several producers decreased their capacity utilisation. Russia's overall PP production reached 326,300 tonnes in January-February 2020, compared to 212,700 tonnes a year earlier. Six out of eight producers increased capacity utilisation, while the two largest producers from Tobolsk provided the largest increase in production volumes.
The structure of PP production by plants looked the following way over the stated period.
SIBUR Tobolsk reduced its capacity utilisation in February, the plant's total PP output was 44,200 tonnes versus 45,500 tonnes a month earlier. The Tobolsk plant's total PP production reached 89,700 tonnes in the first two months of 2020, up by 54% year on year.
ZapSibNeftekhim in February produced about 38,000 tonnes of polypropylene compared with 40,900 tonnes in January. The production output in the first two months of this year totalled 78,900 tonnes.
Poliom produced about 16,880 tonnes of PP in February, which actually corresponds to the figure a month earlier. Total PP production at the plant over the reported period was about 33,600 tonnes, down 1% year on year.
Nizhnekamskneftekhim produced 17,200 tonnes of propylene polymers in February versus 18,900 tonnes a month earlier. The Nizhnekamsk plant's overall output of polymer exceeded 36,100 tonnes in the first two months of 2020, compared to 35,300 tonnes a year earlier.
Tomskneftekhim in February produced about 11,500 tonnes of polypropylene to 13,100 tonnes in January. Total PP production by the producer increased to 24,600 tonnes in January-February 2020, up 2% year on year.
February PP production at Ufaorgsintez increased to 10,500 tonnes from 10,600 tonnes a month earlier. The Ufa plant's overall output of polymer reached 21,100 tonnes in JanuarFebruaryty 2020, up 5% year on year.
Neftekhimiya (Kapotnya) last month produced about 10,800 tonnes of PP, compared with 13,100 tonnes in January. The plant's overall PP output reached 23,900 tonnes over the stated period, up by 1% year on year.
Stavrolen (LUKOIL) shut its capacity utilisation for a short maintenance works in early February, total polypropylene production had dropped to 8,600 tonnes against 9,800 tonnes in January. In general, the total production of polymers of propylene in the first two months of this year at the Budenovsk enterprise reached 18,400 tonnes against 15,100 tonnes a year earlier.
MRC
Dow and Ineos make hand sanitizer to fight COVID-19
MOSCOW (MRC) -- Dow and Ineos, two international petrochemical majors, have made a decision to make hand sanitizer to fight COVID-19, acording to PlasticsToday.
Finding store shelves emptied of essential products has been an alarming and frustrating experience for consumers in the United States and numerous other countries. When shoppers find bare store shelves instead of those typically packed with hand sanitizers, an inconvenience becomes a matter of personal safety in protecting oneself and loved ones from the coronavirus.
The shortage prompted the FDA to weigh in on the topic on March 20.
"We are aware of significant supply disruptions for alcohol-based hand sanitizers," said Food and Drug Administration Commissioner Stephen M. Hahn, M.D. "Many manufacturers make hand sanitizers, and several have indicated that they are working to increase supply. We will continue to work with manufacturers, compounders, state boards of pharmacy and the public to increase the supply of alcohol-based hand sanitizer available to Americans."
However, that lack of availability for consumers repeats a similar critical need for hospitals and pharmacies.
Two plastics companies that manufacture polymers, Dow Europe and Ineos, have stepped up with a solution: Taking the key ingredients the polymer producers already have available and redirect their use to make sanitizers and help address the shortfall.
Ineos is the leading European producer of the two key raw materials needed for sanitizers, isopropyl alcohol (IPA) and ethanol. It announced March 24 it would build a hand sanitizer plant near Middlesbrough to produce one million bottles of sanitizer monthly within 10 days. The company stated that these will be produced according to World Health Organisation specifications and be specifically designed to kill bacteria and viruses.
It can produce hospital-grade hand sanitizer at its sites in Grangemouth, Scotland, and in northern Germany, making almost one million tonnes/1.1 million tons yearly.
Due to the critical shortage of hand sanitizers across Europe, Ineos expects to concentrate on meeting the needs of front-line medical and care services as well as making the "pocket bottle" hand sanitizers for personal use for people across the UK and Europe. It will supply free products to hospitals.
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.
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
March homopolymer PP prices rose by Rb5,000 - 7,000/tonne in Russia
MOSCOW (MRC) -- There has been stronger demand in the Russian polypropylene (PP) market since early March, while supply has been gradually subsiding. Because of this some grades of polypropylene increased by Rb5,000 - 7,000/tonne, according to the ICIS-MRC Price Report.
The need for homopolymer PP in the Russian market began to grow in the last days of February under the pressure of a seasonal factor. The demand was also pressured by the upcoming restrictions on trucking and the upcoming shutdown of facilities in Tobolsk.
As a result, in a weekly mode, homopolymer PP prices grew every week at some sellers, and by the end of the month prices increased on average by Rb2,000/tonne. Homopolymer PP raffia was in great demand during the whole March, and some buyers reported a slight lack of material supply in the market. It is also worth noting that some sellers were in no hurry to sell their stocks.
According to unofficial information, the largest polypropylene producer in Russia, SIBUR Tobolsk, with an annual capacity of 500,000 tonnes/year stopped its capacity for scheduled and preventive repairs from 11 March. The outage will last for 45 days.
The supply of cheap homopolymer PP raffia from Turkmenistan decreased significantly in March. So, if in February imports of this polypropylene amounted to about 2,000 tonnes, in March this figure fell to 500 tonnes.
Thus, if in the first week of March, homopolymer PP raffia in the spot market was sold in the range of Rb81,000-83,000/tonne CPT Moscow, including VAT, then by the end of the month polypropylene price grew to Rb86,000-90,000/tonne CPT Moscow, including VAT.
At the same time, injection moulding copolymers of propylene did not rise in price in April in the Russian market with a few exceptions. And in some cases, prices were already comparable to homopolymer PP, while Russian manufacturers have no plans to increase them in April.
MRC
Two Eastman employees test positive for COVID-19
MOSCOW (MRC) -- According to Eastman Chemical Company officials, two employees at their Kingsport location have tested positive for COVID-19. reported WCYB.
Officials say both employees have been away from work since March 17.
The local public health department is in contact with other employees who worked closely with those who tested positive.
Eastman officials say they will conduct proper disinfection of the potentially affected spaces in accordance with CDC guidelines.
"With an employee population of our size, it was just a matter of time that some of our own team members would test positive as COVID-19 continues to spread rapidly across the US. That’s why we acted early, asking some of our team members to work from home and those on site to do so in the smallest groups possible or with limited access and contact to other areas," says Betty Payne from Eastman Chemical Company.
As MRC reported earlier, in 2016, Eastman Chemical's chief executive Mark Costa announced that the company wanted to reduce its surplus ethylene and commodity intermediates, but did not intend to sell its cracker in Longview, Texas.
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.
Eastman is a global specialty chemical company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. Its market-driven approaches take advantage of world-class technology platforms and leading positions in attractive end-markets such as transportation, building and construction and consumables. Eastman focuses on creating consistent, superior value for all stakeholders. As a globally diverse company, Eastman serves customers in more than 100 countries. The company is headquartered in Kingsport, Tennessee, USA and employs approximately 14,500 people around the world.
MRC