Kaustik Volgograd shut PVC production

MOSCOW (MRC) -- Volgograd Kaustik, Russia's fourth largest polyvinyl chloride (PVC) producer, shut down production of polyvinyl chloride (PVC) for a scheduled turnaround, according to ICIS-MRC Price report.

According to a company representative, scheduled maintenance works started at PVC production on 1 May. The shutdown will be quite long and will take three weeks. The plant's PVC production capacity is 90,000 tonnes/year.

It is also worth noting that next shutdowns for maintenance at Russian PVC plants are scheduled in June - July.
SayanskKhimPlast and RusVinyl, which annual capacities are 350,000 tonnes and 330,000 tonnes, respectively, will take next off-stream their production capacities for maintenance.

PVC production at Volgograd Kaustik was launched in December 1972 with the assistance of the Japanese firm Kureh's specialists. Nikokhim Group is one of the leaders of the Russian chemical industry, the main production assets of which are located in the southern industrial hub of Volgograd.

The holding company includes: JSC Kaustik is the principal plant of the group, manufactures basic products - caustic soda, chloroparaffins, synthetic hydrochloric acid, chlorine trademark, polyvinyl chloride, sodium hypochlorite, etc .; CJSC NikoMag - production of anti-icing materials, magnesium chloride, magnesium oxide and hydroxide; Zirax, Ltd. - production of high-purity reagents for various industries and JSC Poligran - the production of plastic compounds and rigid PVC compounds.
MRC

MOSCOW (MRC) -- Oil markets are at the beginning of a fragile recovery as coronavirus lockdowns ease, though long-term peak demand may be permanently eroded, Vitol’s chief executive told Reuters.

Russell Hardy, CEO of the world’s biggest oil trader, said global oil demand sank by 26-27 million barrels per day (bpd) in April and predicts a year-on-year drop of over 8 million bpd.

"The market is going to flirt with optimism and pessimism for the next two or three weeks," Hardy said.

As MRC wrote before, Vitol, the world’s biggest oil trader, began exporting fuel oil and diesel from Turkmenistan via the Russian port of Novorossiisk in December 2019.

We also remind that test operations at a new gas chemical complex (GCC) for processing natural gas and producing polyethylene (PE) and polypropylene (PP) in the village of Kiyanly, Turkmenistan, started in August 2018. An official launch of production took place on 17 October, 2018.

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

MOSCOW (MRC) -- Brooge Petroleum and Gas Investment Co (BPGIC) has leased oil storage facilities in the United Arab Emirates to France’s Total, industry sources familiar with the matter said, as global crude storage rapidly fills up, said Hydrocarbonprocessing.

The company is leasing six storage tanks in the UAE emirate of Fujairah for six months and this could be renewed for another six months, one of the sources said.

The tanks, which store oil products, have already received initial cargoes, two of the sources said.

BPGIC and Total did not respond to a request for comment.

Global oil storage is filling swiftly as lockdowns to halt the spread of the coronavirus pandemic hammer consumption, driving down global demand for crude and its products, such as gasoline, diesel and jet fuel, by as much as 30%.

The Organization of Petroleum Exporting Countries, Russia and other allied producers have agreed to rein in supplies from May but the cuts amounting to about 10% of global crude production has still left the world awash with oil.

UAE-based BPGIC, established in 2013, plans to expand its storage capacity for crude and oil products to around 3.5 million cubic metres, from 1 million cubic metres now.

It is already one of the largest holders of storage assets in Fujairah, which is itself among the world’s largest bunkering hubs.

As MRC informed earlier, Total has recently disclosed that it is evaluating construction of a new gas cracker at its Deasan, South Korea, joint venture (JV) with Hanwha Chemical.

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.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
MRC

MOSCOW (MRC) -- BASF management and employee representatives have signed a new Ludwigshafen site agreement, according to Chemweek.

The agreement applies to the 34,000 employees of BASF at the site. It will run from 1 June 2020 until 31 December 2025 and replaces the current site agreement, which would have expired at the end of 2020.

BASF will continue to forgo forced redundancies for the duration of the agreement and will spend an average of at least EUR1.5 billion (USD1.6 billion) a year on investment, modernization, and maintenance at the site until 2025.

"We are facing a whole series of major changes, driven by demographic change, limited natural resources, and digitalization. The conditions under which we do business are changing at an ever-faster rate," says Michael Heinz, member of the board of BASF and site director. "If the Ludwigshafen site is to remain successful in a fast-changing business environment, we need to become more agile and flexible…With the new site agreement, we are supporting the necessary cultural change while also creating reliable framework conditions for our employees."

Sinischa Horvat, chairman of the works council of BASF, says, "Since the late 1990s, we have pursued two key objectives through the site agreements. The first is to demonstrate reliable and robust prospects for the development of the Ludwigshafen site through investments. The second is to lay out binding protective mechanisms for employees. We have achieved both of these once again in the agreement for 2025. Especially in view of the current crisis, the early conclusion of the 2025 site agreement is a strong, positive signal for the workforce and the region."

As MRC reported previously, BASF said in late April it will not be able to meet full-year sales and earnings guidance issued on 28 February and withdrew its outlook in advance of its first-quarter earnings report.

We remind that BASF has restarted its No. 1 steam cracker following a maintenance turnaorund. Thus, the company resumed operations at the plant on September 30, 2019. The plant was shut for maintenance in mid-August, 2019. Located at Ludwigshafen in Germany, the No. 1 cracker has an ethylene production capacity of 235,000 mt/year and a propylene production capacity of 125,000 mt/year.

Ethylene and propylene are feedstocks for producing 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.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
MRC

MOSCOW (MRC) -- DuPont first-quarter sales and earnings fell year on year amid nylon pricing pressures and volume declines across the Transportation & Industrial and non-core segments, said the company.

Earnings were down due to the absence of prior-year gains in the Electronics & Imaging and Safety & Construction segments. These negatives more than offset "strong gross margin improvement” in Q1, the company said.

Operating earnings before interest, tax, depreciation and amortisation (EBITDA) fell in all of DuPont’s segments, with the exception of Nutrition & Biosciences. On an organic basis, total net sales were down 2% as 8% growth in Electronics & Imaging and 3% growth in Nutrition & Biosciences could not offset declines in other segments.||

The company has idled production at several manufacturing sites, predominantly production plants within its Transportation & Industrial segment, due to the current global automotive environment.

As MRC informed earlier, DuPont has launched “Operation Airbridge,” with the US Department of Health and Human Services (DHHS) and FedEx to speed production and delivery of medical garments made from DuPont’s Tyvek material. Operation Airbridge will enable expedited shipping of Tyvek garments critical to coronavirus disease 2019 (COVID-19) relief via air, instead of sea. FedEx Express will transport Tyvek roll goods from DuPont’s Richmond, Virginia, production plant to garment manufacturers in Vietnam. They will then return to the US with finished Tyvek garments to be added to the US Strategic National Stockpile.

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