Ningbo Liwan New Material shut PTA plant Ningbo after explosion

MOSCOW (MRC) -- Ningbo Liwan New Material Co Ltd has experienced pipeline explosion which lead to emergency shutdown at its purified terephthalic acid (PTA) plant, reported CommoPlast with reference to market sources.

Thus, this plant was taken off-stream in the evening, on 30 April, 2020.

Based in Ningbo, China, the plant has a PTA production capacity of 700,000 tons/year.

The restart schedule could not be ascertained.

PTA is used to produce polyethylene terephthalate (PET), which is used in the manufacturing of plastic bottles, films, packaging containers, in the textile and food industries.

According to MRC's ScanPlast report, March estimated PET consumption in Russia was 65,3700 tonnes, up by 1% year on year. Russia's estimated PET consumption decreased in January-March 2020 by 3% year on year to 175,170 tonnes.
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1. State seeks to declare coronavirus an 'act of God' to help oil producers

MOSCOW (MRC) -- Oklahoma’s governor has called on U.S. President Donald Trump to declare the coronavirus pandemic an “act of God,” a step to help oil-producing states contend with a crude glut that caused futures prices to close below USD0 last week for the first time, said Reuters. “Over-production of oil continues to threaten the economy,” Governor J. Kevin Stitt said in a letter to Trump that Stitt posted on Twitter late on Saturday.


MRC

MOSCOW (MRC) -- Tianjin Bohai Chemical is expected to restart its propane dehydrogenation (PDH) plant in H1 May 2020, reported S&P Global.

The company unexpectedly shut down this plant on 22 April, 2020, and initially planned to resume its operations in late April.

Located in Tianjin, China, the PDH plant has a propylene capacity of 600,000 mt/year.

As MRC informed before, Tianjin Bohai Chemical last restarted its PDH plant in late March, 2020. Previously, in early February, the company decided to postpone the restart of its PDH plant by another 19 days to February 29 due to sluggish demand for propylene. This came after the facility, located in northeastern China, had delayed the restart of its 600,000 mt/year propylene plant to February 10, from February 6, extending the Lunar New Year holidays in the wake of the coronavirus outbreak. Tianjin Bohai uses 720,000 mt/year of propane when at full capacity.

Propylene is the main feedstock for the production of polypropylene (PP).

According to MRC's ScanPlast report, PP shipments to the Russian market was 267,630 tonnes in January-March 2020, down 20% year on year. Homopolymer PP and PP block copolymers accounted for the main decrease in imports.

Tianjin Bohai is a state owned enterprise, with over 100 subsidiaries and 35,000 employees. It has joint venture relationships with a number of foreign partners, including: LG Chem, Solvay, Akzo Nobel, Clariant, Veolia, Air Liquide and Vopak.
MRC

MOSCOW (MRC) -- Asian refiners see Saudi Arabia cutting the official selling prices (OSP) of its crude for a fourth straight month in June after Middle East benchmarks slumped on poor refining margins as the coronavirus pandemic slammed demand, reported Reuters.

Saudi Arabia is expected to reduce the June OSP for Arab Light crude by USD3.72 a barrel, according to an average of estimates from six refinery sources in a Reuters survey. All respondents said they expect a cut, though predictions ranged from just 50 cents to as much as USD7.50.

"Refining margins are not good," said one of the respondents, who all declined to be identified due to the sensitivity of the matter. "Products are discounted and buyers are few."

Earlier this month, Saudi May prices for Asian buyers were slashed by USD2.95-USD5.50 a barrel, in line with expectations.

Oil markets globally are flooded with cheap oil with storage space and floating tanks filling up fast.

Many refiners have lowered output amid coronavirus lockdowns. But Chinese refiners are on the hunt for cheap barrels, increasing processing rates as the world’s second-largest economy gradually picks up steam with its coronavirus outbreak largely contained.

"Their domestic market is an exceptional case," said another survey respondent.

Prices for Arab Medium and Arab Heavy are expected to fall less than lighter grades due to tighter supply of heavier crude barrels, four of the respondents said.

Asia’s gasoline and naphtha margins improved in April, while gasoil and jet fuel margins sank to record lows earlier this week.

Margins for low-sulphur fuel oil remained pressured, while high-sulphur fuel oil margins were helped by tighter crude supply expectations: Producers from Saudi Arabia to Russia are set to cut production by 9.7 million barrels per day (bpd) from May.

Three survey respondents saw price cuts of no more than USD2 a barrel for all Saudi grades, citing low crude prices limiting scope for further reductions.

Saudi crude OSPs are usually released around the fifth of each month and set the trend for Iranian, Kuwaiti and Iraqi prices, affecting more than 12 million bpd of crude bound for Asia.

State oil giant Aramco sets crude prices based on recommendations from customers and after calculating the change in the value of its oil over the past month, based on yields and product prices.

Saudi Aramco officials as a matter of policy do not comment on the kingdom’s monthly OSPs.

As MRC informed earlier, Saudi Aramco’s plan to buy USD15-billion stake in Reliance Industries hydrocarbon business may not go through due to the rising risk of collapsing oil prices, US-based brokerage Bernstein has warned. The unique combination of excess crude oil global supply, 30% drop in demand due to coronavirus crisis and continuous price fall weighed heavily on Aramco’s investment plans.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 557,060 tonnes in the first three month of 2020, up by 7% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments rose because of the increased capacity utilisation at ZapSibNeftekhim. Demand for LDPE subsided. At the same time, PP shipments to the Russian market was 267,630 tonnes in January-March 2020, down 20% year on year. Homopolymer PP and PP block copolymers accounted for the main decrease in imports.

Saudi Aramco is an integrated oil and chemicals company, a global leader in hydrocarbon production, refining processes and distribution, as well as one of the largest global oil exporters. It manages proven reserves of crude oil and condensate estimated at 261.1bn barrels, and produces 9.54 million bbl daily. Headquartered in Dhahran, Saudi Arabia, the company employs over 61,000 staff in 77 countries.
MRC

MOSCOW (MRC) -- Shintech, a subsidiary of Shin-Etsu Chemical Co. and the largest US polyvinyl chloride (PVC) producer, has an ongoing turnaround at its PVC facility in Freeport, Texas, reported S&P Global with reference to a source familiar with company operations.

The complany plans to end maintenance works at its 1.4 million mt/year PVC complex in Freeport in early May, 2020.

The turnaround was launched in late March, 2020. Previously, market sources had expected the turnaround to occur in March, as is typical, but the source said then that it was planned for April. The planned work had prompted the company to stockpile PVC to meet domestic and contract demand, limiting export volume availability for March and April.

Shintech did not respond to a request for comment.

As MRC informed previously, in July 2018, Shintech began to construct a new integrated plant to PVC from salt. The new plant will be on industrial site developed by Shintech, located next to Shintech's existing plant in Plaquemine, Louisiana.

Shintech obtained permits to build a plant capable of producing 1.9 billion pounds (860 thousand tons) per year of vinyl chloride monomer (VCM), the raw material of PVC, and 660 thousand tons per year of caustic soda, and has commenced construction of the first phase of the plan. The first phase will increase production capacity by 640 million pounds (290 thousand tons) of PVC per year and 270 thousand tons of caustic soda per year. The amount of this investment is expected to be $1.49 billion, which Shintech will fund by itself. Completion of the construction is targeted for the end of 2020. Annual production capacity after the completion of the first phase will be 7.14 billion pounds (3,240 thousand tons per year) of PVC and 1,570 thousand tons of caustic soda per year.

According to MRC's ScanPlast report, Russia's estimated consumption of unmixed PVC was 249,190 tonnes in January-March 2020, up by 5% year on year. Shipments of emulsion and suspension PVC to the market grew both due to domestic producers and higher imports.
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