OPaL to declare force majeure on supplies from its petrochemical complex in Dahei due to lockdown

MOSCOW (MRC) -- India's ONGC Petro Additions (OPaL) has yet to make any force majeure declaration, but its operations are also likely to be severely affected, reported Argus.

Opal has a 1.1mn t/yr cracker at Dahej in the western state of Gujarat.

Downstream operations include 350,000 t/yr polypropylene (PP), 340,000 t/yr high density polyethylene (HDPE) and swing 720,000 t/yr HDPE/linear low density polyethylene (LLDPE) units.

As MRC wrote previously, in December 2019, Oil and Natural Gas Corp. (ONGC) announced that it had shelved its stake sale plans for OPaL unable to attract a strategic partner.

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).

OPaL is a joint venture between Gujarat State Petroleum Corp (GSPC), Gas Authority of India Ltd (GAIL) and ONGC.
MRC

MOSCOW (MRC) -- Supreme Petrochem, a polystyrene (PS) and expandable polystyrene (EPS) producer in India, intends to impose force majeure on supplies as a result of the lockdown, reported Argus.

Supreme is the largest styrene monomer (SM) importer in India and operates 272,000 t/yr PS and 80,000 t/yr EPS units.

As MRC informed before, in January 2016, Supreme Petrochem received approval for modification of one of the three PS producing lines at the plant in villages Amdoshi, Wangani in the state of Maharashtra into a swing line capable of producing 42,500 TPA of SMMA (Styrene Methyl Methacrylate) in addition to PS.

According to MRC's ScanPlast report, Russia's overall estimated consumption of PS and styrene plastics rose in February 2020 by 14% year on year to 39,890 tonnes. The estimated consumption totalled 80,570 tonnes in the first two months of 2020, which corresponded to the last year's figure. Overall, Russian plants produced 41,060 tonnes in February 2020..

Supreme Petrochem Ltd., incorporated in the year 1989, is a Mid Cap company (having a market cap of Rs 1140.65 Cr.) operating in petrochemicals sector. Supreme Petrochem Ltd (SPL) is India’s largest producer and exporter of polystyrene polymer based in Mumbai, Maharashtra, India. In Indian market it has share of more than 50%. SPL is also the largest exporter of PS from India, exporting to over 93 countries around the globe.
MRC

MOSCOW (MRC) -- Overall imports of expandable polystyrene (EPS) to the Russian market fell in the first two months of 2020 by 15% year on year to 2,400 tonnes, according to MRC's DataScope report.

This figure was at 2,800 tonnes in January-February 2019.

The Finnish producer Styrochem's material accounted for the bulk of shipments - 58% of the total EPS imports. Finnish imports grew over the stated period by 11% year on year: to 1,400 tonnes from 1,300 tonnes a year earlier, whereas one of the leading suppliers - Loyal - reduced its shipments to the region by three and a half times. This year's share of Loyal imports was only 8%, compared to 22% a year earlier.

February EPS imports to Russia decreased by 24% year on year to 1,000 tonnes from 1,300 tonnes a year earlier, imports of material into the country were 1,400 tonnes in January 2020.

MRC

MOSCOW (MRC) -- This week India's Prime Minister Narendra Modi announced a nationwide lockdown from Wednesday for 21 days in an effort to slow the spread of the coronavirus in the world's second-most populous country, which has 1.3 billion people. The lockdown applies to ports, which will slow imports of all kinds of goods, including polyvinyl chloride (PVC), to a country that was dependent on PVC imports to meet demand before the pandemic gripped the globe, reported S&P Global.

Other countries and regions have similar lockdowns in place with exceptions for critical infrastructure, which includes chemical plants and ports. Those include Italy, which is among the global epicenters of the disease, and Spain. Germany was expected to issue similar stay-at-home orders as well, sources said.

In the US, several states, including hard-hit California and New York, have issued similar orders. Louisiana, home to major oil, natural gas and chemicals infrastructure, has an order in place, while Texas does not, although on Tuesday Houston and Harris County issued their own stay-at-home orders with similar critical infrastructure exemptions.

While construction is among those exemptions, US sources said coronavirus uncertainty was siphoning export demand and could do the same for domestic demand ahead of the peak summer season.

"Nobody wants to buy anything additional, especially for early April shipments," a market source said. "Some people are being cautious and canceling part of their orders, but not so much, both domestic and export."

According to MRC's ScanPlast report, contrary to seasonal factors, Russian producers of unmixed PVC have maintained a high level of capacity utilisation. Russia's overal PVC output totalled 91,700 tonnes in January 2020, up by 4% year on year. January production of unmixed PVC was 91,700 tonnes versus 87,760 tonnes in January 2019 and 81,400 tonnes in December 2019. Thus, despite relatively weak demand for resin from the domestic market, the average capacity utilisation exceeded 95% last month. Russia's overall PVC production reached 975,000 tonnes in 2019, compared to 958,600 tonnes a year earlier.
MRC

MOSCOW (MRC) -- Formosa Plastics USA, part of Formosa Petrochemical, has postponed a May polyvinyl chloride (PVC) turnaround at its facility in Baton Rouge, Louisiana to this summer, reported S&P Global with reference to the source familiar with the company's operations.

Meanwhile, the target start date of this plant with the capacity of 513,000 mt/year after maintenance works is yet to be determined, the souce said.

As MRC wrote earlier, Formosa Plastics USA has restarted its PVC plant in Point Comfort, Texas, after planned maintenance works. Formosa's Point Comfort plant with the capacit of 798,000 mt/year was expected to reach normal rates by early April, a source close to the company said.

Formosa's resumption of output at Point Comfort comes at an uncertain time for PVC producers and traders, as demand grows more uncertain amid the global coronavirus pandemic. Market sources said some customers that regularly buy US PVC exports have canceled or rescheduled orders, unsure of what demand will be like in the coming weeks and months.

"We ... face a lot of requests for cancellation and shipment rescheduling," a market source said. "We may be at the moment to stop to move forward."

PVC, a construction staple used to make pipes, window frames, vinyl siding and flooring and other products, is closely tied to economic health and GDP growth. About 60% of PVC output is used to make construction supplies, and the rest is used to manufacture other goods, such as intravenous fluid bags and medical tubing.

According to MRC's ScanPlast report, contrary to seasonal factors, Russian producers of unmixed PVC have maintained a high level of capacity utilisation. Russia's overal PVC output totalled 91,700 tonnes in January 2020, up by 4% year on year. January production of unmixed PVC was 91,700 tonnes versus 87,760 tonnes in January 2019 and 81,400 tonnes in December 2019. Thus, despite relatively weak demand for resin from the domestic market, the average capacity utilisation exceeded 95% last month. Russia's overall PVC production reached 975,000 tonnes in 2019, compared to 958,600 tonnes a year earlier.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company"s plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
MRC