COVID-19 - News digest as of 06.04.2020

1. Eni says production at its Italian refineries has slowed, most at 60% capacity

MOSCOW (MRC) -- Italian energy group Eni said most of its oil refineries in Italy were working at around 60% of their capacity as the coronavirus emergency continues, reported Reuters. The pandemic has shut down large parts of economies across the globe and prompted many governments to slap tough restrictions on travel, triggering a steep fall in the demand for refined oil products.



MRC

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