India considers COVID-19 import tax on chemicals

MOSCOW (MRC) -- India to consider imposing a 15% “Covid-19” import tax on chemicals to help protect its domestic industry from major exporting nations in East and SE Asia, as per Kemicalinfo.

The domestic industry has been badly affected by a major demand slump as a result of nationwide coronavirus lockdown.

The new tax, which would be in effect from 1st May 2020 to 31 March 2021, is being proposed by a government sub-committee under the Chemicals and Fertilizers Ministry.

Industry body Chemexcil (Basic Chemicals, Cosmetics & Dyes Export Promotion Council), which is requesting feedback on the plan from the Ministry said that the move is an effort “to protect the domestic producers against any surge in imports caused by the pandemic.”

“The current situation presents a real threat of an extended period of price depression on account of aggressive exports from China and other countries, which will force several producers to suspend operations and ultimately close down,” it said.

The proposed tax will be added in addition to current import duties.

The committee is also proposing that all duties and taxes on exports be refunded for domestic manufacturers.

With possible exemptions for ethylene, paraxylene (PX), ethylene dichloride (EDC) and vinyl chloride monomer (VCM), the recommendation covers all other chemicals and petrochemicals imported by India.

India is a major chemicals importer, including polymers, monomers and solvents. If introduced, the new tax would impact domestic importers and distributors.

EDC and VCM are the main feedstocks for the production of polyvinyl chloride (PVC).

According to MRC's DataScope report, exports of suspension polyvinyl chloride (SPVC) from Russia totalled 45,600 tonnes in the first three months of 2020, down by 4% year on year. Imports increased, but still remained at a low level.
MRC

1. KNPC says oil refinery project halted over coronavirus case

MOSCOW (MRC) -- The Kuwait National Petroleum Co. (KNPC) said work on a project linked to the Al-Ahmadi oil refinery was halted because a worker was diagnosed with the new coronavirus, said Reuters. The worker, an Indian national, was employed by a contractor, KNPC said on Twitter, without giving details about the project.


MRC

MOSCOW (MRC) -- Imports of expandable polystyrene (EPS) into the Ukrainian market increased in the first quarter of 2020 by 2% year on year, totalling 5,900 tonnes, according to MRC's DataScope report.

This figure was at 5,800 tonnes in January-March 2019.

Russian material accounted for 68% (4,000 tonnes) of the total shipments in the first three months of 2020, compared to 51% (2,900 tonnes) a year earlier. Chinese EPS shipments fell sharply over the stated period to 8% (440 tonnes) from 41% (2,400 tonnes) in January-March 2019.

Last month's EPS imports into Ukraine were 2,000 tonnes versus 1,800 tonnes a month earlier and 2,200 tonnes in March 2019.

The share of Russian material fell to 46% (930 tonnes) last month from 78% (1,400 tonnes) a month earlier. The share of Russian material remained in March at the level of February, totalling 7% (145 tonnes).

MRC

MOSCOW (MRC) -- Kazakh Neftekhim Ltd, Kazakhstan's only polypropylene (PP) producer, shut down its PP production for an unscheduled maintenance, according to the ICIS-MRC Price report.

The plant’s customers said the Kazakh producer had fully shut its PP production by 26 April, because of the termination of feedstock shipments from the Pavlodar refinery. The local refinery also suspended its operations due to a catastrophic drop in demand for oil products.

The deadlines for the Pavlodar refinery to resume from forced shutdown and the resumption of PP production by Neftekhim LTD have not yet been announced.

Neftekhim Ltd was commissioned in 2009. The company produces methyl tertiary butyl ether (MTBE) and polypropylene (PP). The plant's PP production with the capacity of 45,000 tonnes/year was launched in 2011; the plant did not have PP granulation unit then, polymer was produced in the form of powder, which limited its field of application.
MRC

MOSCOW (MRC) -- Russia's overall polyethylene (PE) production totalled 734,600 tonnes in the first three months of 2020, up by 59% year on year. Linear low density polyethylene (LLDPE) accounted for the greatest increase in the output, according to MRC's ScanPlast report.

March total PE production in Russia rose to 260,500 tonnes, whereas this figure was at 237,800 tonnes a month earlier, output of high density polyethylene (HDPE) and LLDPE increased. Thus, overall PE production reached 734,600 tonnes in January-March 2020, compared to 460,600 tonnes a year earlier. Production of all PE grades rose, but LLDPE accounted for the greatest increase, which was provided by ZapSibNeftekhim.

The structure of PE production by grades looked the following way over the stated period.

March total HDPE production grew to 142,300 tonnes from 140,500 tonnes a month earlier. ZapSibNeftekhim raised its capacity utilisation. Russian plants' overall HDPE output reached 420,600 tonnes in January-March 2020, up by 78% year on year.

Last month's total low density polyethylene (LDPE) production grew to 61,000 tonnes from 53,700 tonnes in February, Gazpron neftekhim Salavat, Kazanorgsintez and Tomskneftekhim increased their output. Thus, overall production of this PE grade totalled 173,200 tonnes over the stated period, up by 3% year on year.

March LLDPE production rose to 57,200 tonnes from 43,600 tonnes a month earlier, ZapSibNeftekhim increased its capacity utilisation by 19%. Overall LLDPE output rose to 140,800 tonnes in the first three months of 2020 from 56,500 tonnes a year earlier.

MRC