Trinseo reduces April PS prices in Europe

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex binders and synthetic rubber, and its affiliate companies in Europe has announced a price decrease for all polystyrene (PS) grades in Europe, said the producer on its site.

Effective April 1, 2020, or as existing contract terms allow, the contract and spot prices for the products listed below went down as follows:

-- STYRON general purpose polystyrene grades (GPPS) -- by EUR180 per metric ton;
-- STYRON and STYRON A-Tech and STYRON X- Tech high impact polystyrene grades (HIPS) - by EUR180 per metric ton.

As MRC informed before, Trinseo last reduced its prices for all PS grades on 1 March 2020, as stated below:

- STYRON GPPS grades - by EUR100 per metric ton;
- STYRON and STYRON A-Tech HIPS grades - by EUR100 per metric ton.

According to ICIS-MRC Price report, in Russia, Nizhnekamskneftekhim reduced its April selling PS prices by Rb10,000/tonne. GPPS for injection moulding and extrusion was offered at Rb86,000-90,000/tonne CPT Moscow, including VAT, whereas HIPS - at Rb90,000-94,000/tonne CPT Moscow, including VAT. Penoplex reduced its GPPS prices by Rb10,000/tonne. Demand for the Kirishi plant's material remained quite good. And Gazprom neftekhim Salavat reduced its indicative prices by Rb8,000/tonne, and its GPPS prices for small- and medium-sized buyers have not been settled yet.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD4.6 billion in net sales in 2018, with 16 manufacturing sites around the world, and approximately 2,500 employees.
MRC

Formosa says three contractors test positive for COVID-19 at Point Comfort

MOSCOW (MRC) -- Formosa Plastics Corp. USA (FPC), part of Formosa Petrochemical, announced Thursday that several contractors at its Point Comfort, Texas, facility have tested positive for coronavirus disease 2019 (COVID-19), but none of the company’s own employees has, according to Chemweek.

"Those contract employees have been isolated by their employer and notifications have been made to others with whom they may have closely interacted," says FPC. "We are working with all of our employees and contractors to ensure appropriate steps are taken to minimize transmission of this illness."

FPC says its manufacturing operations continue to run, having been identified as "critical infrastructure" by the US Department of Homeland Security, and it continues to supply all products without interruption.

FPC has capacity to produce 1.2 million metric tons/year (MMt/y) of high-density polyethylene (HDPE) at Point Comfort; 374,000 metric tons of linear low-density polyethylene (LLDPE); 876,000 metric tons/year of polypropylene (PP) and 1.4 MMt/y of polyvinyl chloride (PVC).

As MRC reported before, Formosa Plastics' new 1.5 million mt/year cracker in Point Comfort, Texas, came online in H1 January, 2020, and was seen ramping up through January.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.

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

Al-Waha completes unplanned maintenance turnaround at PDH plant in Jubail

MOSCOW (MRC) -- Sahara International Petrochemical Co. (Sipchem; Al Khobar, Saudi Arabia) says its Al-Waha subsidiary has completed a scheduled periodic turnaround maintenance at its propane dehydrogenation (PDH) complex at Jubail, Saudi Arabia, reported Chemweek.

Start-up activities began on 1 April 2020. The turnaround will enhance the reliability of the plant and allow it to achieve its future operational targets.

Financial impact of the turnaround will be reflected in the company’s first-quarter 2020 financial results.

Al-Waha combined an unplanned maintenance, announced on 3 March, with a scheduled turnaround. The complex is designed to produce 467,000 metric tons/year of propylene and 450,000 metric tons/year of polypropylene (PP).

As MRC wrote previously, Al Waha Petrochemicals shut its PP plant for a maintenance turnaround from 27 December 2019 to 8-9 January 2020.

Propylene is the main feedstock for the production of PP.

According to MRC's ScanPlast report, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.

Established in 1999, Saudi International Petrochemical Company (Sipchem) manufactures and markets methanol, butanediol, tetrahydrofuran, acetic acid, acetic anhydride, vinyl acetate monomer. Besides, it has launched several down-stream projects to manufacture ethylene vinyl acetate, low density polyethylene, ethyl acetate, butyl acetate, cross linkable polyethylene, and semi conductive compound.
MRC

Abel Chemical to resume production at SM plant in Jiangsu in mid-April

MOSCOW (MRC) -- Abel Chemical, is in plans to bring on-stream its styrene monomer (SM) plant in Jiangsu province, as per Apic-online.

A Polymerupdate source in China informed that, the company is likely to resume operations at the plant by mid-April, 2020. The plant was shut for maintenance on March 24, 2020.

Located at Taixing in Jiangsu province of China, the plant has a production capacity of 250,000 mt/year.

SM is the main feedstock for the production of polystyrene (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.

Abel Chemical Jiangsu Co. Ltd. manufactures and distributes chemical products. The Company produces styrene, maleic anhydride, cyclohexanone, caprolactam, polystyrene, and other chemicals. Abel Chemical Jiangsu also provides warehousing and transportation services.
MRC

Oil refiners face reckoning as demand plummets

MOSCOW (MRC) -- The global oil refining industry is facing a reckoning from falling fuel demand that is the deepest and fastest ever, reported Reuters.

Within weeks, the industry will need to cut output by 30% or more as the coronavirus pandemic keeps much of the world at home with little need to drive or fly. Smaller and financially weak oil refiners may not emerge from the crisis, say refining consultants and traders.

"This Covid isn’t going to kill the refining industry, but it might kill those with underlying conditions," said John Auers, a refining analyst at consultancy Turner, Mason & Co.

Plant closings and production cutbacks are appearing across the globe. In Amsterdam, Canada, India, Italy and South Africa, small refiners have halted processing. Even the most complex and profitable US and European operators are cutting runs to produce as little fuel as possible without shutting down.

The coronavirus outbreak has cut global gasoline demand by 50% and jet fuel demand by 70%, according to consultancy Facts Global Energy.

About 5 million barrels per day (bpd) of the 18 million bpd US refinery capacity would operate if plants were to produce just enough fuel for current demand, said Michael Tran, commodity strategist at RBC Capital Markets, while diesel production and margins have declined only slightly this year.

In Northwest Europe, refiners that binged on sweet crude are paring 2 million barrels per day from run-rates, said Jan-Jaap Verschoor, an analyst at Oil Analytics in London. He estimated the drop in oil processing worldwide has already reached 5 million bpd.

Financially weak refiners and those serving small markets are at most risk of consolidation. If forced to shut down, they face a loss of customers that could make it harder to reopen. Those with little debt, a variety of products and proximity to crude supplies are best positioned to survive, analysts said.

The 130,000-barrel per day Come-by-Chance refinery in eastern Canada this week temporarily halted processing on economic and safety concerns. It follows shutdowns at small plants in Italy, France and South Africa.

Refineries in the US Midwest and Rocky Mountains that mostly produce gasoline are vulnerable to shutdowns as stocks build. The region’s storage tanks will be about 90% full this week, estimates Amy Kalt, a refining analyst at consultancy Baker & O’Brien Co.

The near-halt of air travel threatens US-based Monroe Energy, which provides parent Delta Air Lines with jet fuel. Monroe has cut its processing by 21%, and reduced staff to about two dozen workers. A spokesperson for the company declined to comment.

Several European refiners shut processing units for maintenance and then postponed the work, said Amanda Fairfax, an analyst at Genscape, which tracks refinery operations.

US refiners Exxon, Chevron, PBF Energy, Valero Energy and Marathon are reducing processing by as much as 30%.

"The guys who cut early are learning how to cut more," said David Hackett, president of refinery consultancy Stillwater Associates. The goal of many refiners is to reach a level “just to try and keep it running” because of the dangers inherent to restarting idle plants, he said.

While low run-rates generally reduce stress on equipment that can cause outages, operating individual units "below 50% could become unstable," said Baker & O’Brien’s Kalt.

Refiners spent the last decade expanding capacity to supply motor fuel to a rising middle-class in Africa, China, India and Latin America.

In the United States, struggling East Coast refiners got a temporary reprieve from financial woes from plentiful supplies of light crude from shale fields.

But bankruptcies among shale producers may threaten those supplies in the future. Whiting Petroleum Corp on Wednesday became the first major casualty of crashing oil prices.

In Asia, state-run refiners are have kept output high and maintained pre-crisis pricing.

"It’s not easy to consolidate because there are many state-owned companies," said K.Y. Lin at Formosa Petrochemical Corp, Asia’s sixth-largest standalone refiner.

Hopeful signs are emerging in China and Korea, which are ramping up refining as virus outbreaks ebb. China’s refining sector is forecast to reach about 77% of capacity in the current quarter, up from 63% two months ago. This month SK Energy, Korea’s top refiner, expects to increase output from the 85% to 90% of capacity in March.

Still, the sharp, sudden drop in demand will accelerate consolidation in the business and lead to fewer and larger refiners when markets recover.

Worldwide, predicts Turner, Mason’s Auers, there could be a loss of 1 million bpd to 2 million bpd from permanent refinery closures when the pandemic subsides.

As MRC wrote before, Taiwan’s Formosa Petrochemical Corp plans to operate its refinery at a reduced rate after completing maintenance at some units later this month amid weak margins. The company is expected to restart one of its three crude distillation units (CDUs), its residue fluid catalytic cracker (RFCC) and one of its two residue desulphurizers (RDS) around April 20 after more than a month’s shutdown for scheduled maintenance. After the unit’s restart, Formosa plans to be processing 480,000 barrels per day (bpd) of crude, spokesman KY Lin told Reuters, about 10% below the refinery’s nameplate capacity of 540,000 bpd.

As MRC wrote before, Formosa Plastics' new 1.5 million mt/year cracker in Point Comfort, Texas, came online in H1 2020 and was seen ramping up through January.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.
MRC