Ukrainian EPS imports up by 9% in Jan-Feb 2020

MOSCOW (MRC) -- Overall imports of expandable polystyrene (EPS) to the Ukrainian market rose in the first two months of 2020 by 9% year on year to 3,900 tonnes, according to MRC's DataScope report.

This figure was 3,600 tonnes in January-February 2019.


The share of Russian material grew significantly in the total shipments in the first two months of the year, accounting for 78% (3,100 tonnes), compared to 41% (1,500 tonnes) a year earlier. Chinese EPS shipments fell sharply over the stated period to 8% (300 tonnes) from 51% (1,800 tonnes) in January-February 2019.

February EPS imports to Ukraine were 1,800 tonnes versus 2,100 tonnes a month earlier, this figure was also at 2,100 tonnes in February 2019.

The share of Russian material remained in February at the level of January, totalling 79% (1,400 tonnes). The share of Chinese shipments dropped to 7% (128 tonnes) in February from 8% (172 tonnes) a month earlier.

MRC

March prices of Russian LDPE up by an average of Rb14,000/tonnes

MOSCOW (MRC) -- Under the pressure of stronger demand and tight supply, prices of low density polyethylene (LDPE) have risen on a weekly basis since early March. LDPE prices had gone up by more than Rb14,000/tonne by the end of the month, according to ICIS-MRC Price report.

Demand for LDPE in the Russian market has begun to recover actively since late February, after oversupplied December and January. In early March, the need in polyethylene (PE) grew even more due to early spring in a number of regions, whereas most sellers' supply was tight, and some of them had sold out all their March quotas by the middle of the month. As a result, LDPE prices rose on a weekly basis, and some sellers announced a further price increase for April shipments this week.

108 grade LDPE was the most scarce PE grade throughout the whole March. The key suppliers - Angarsk Polymers Plant, Ufaorgsintez, and Kazanorgsintez - virtually did not have large stocks of this PE. And increased demand led to a price rise from Rb62,500/tonne CPT Moscow, including VAT, in the last week of February to Rb76,000/tonne, CPT Moscow, including VAT, by the end of March.

The situation was also similar with 158 grade LDPE in the second half of March, many sellers had sold out all their March quantities by the middle of last month, whereas demand remained at good. The scheduled maintenance at Kazanorgsintez’s production capacities (from 11 April to 10 May) only aggrevated the situation. And if at the beginning of the month prices of this PE started from Rb70,000//tonne, CPT Moscow, including VAT, then by the end of March, they went up to Rb84,000/tonne CPT Moscow, including VAT, and higher.

In late March, some producers announced an increase of Rb3,000-5,000/tonne in April LDPE prices.
MRC

US propylene inventory rises by 2,7% in the 3rd week of March

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

PP production in Russia increased by 53% in January-February 2020

MOSCOW (MRC) - Production of polypropylene (PP) in Russia increased to about 326,300 tonne in first two months of this year, down 53% year on year, compared to the same period of 2019. The greatest increase in production was shown by SIBUR Tobolsk and ZapSibNeftekhim, according to MRC ScanPlast.

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