PE imports to Ukraine increased by 1% in January-April 2020

MOSCOW (MRC) - Imports of polyethylene (PE) into Ukraine increased to about 90,900 tonnes in the first four months of 2020, up 1% compared to the same period of 2019. The greatest increase in demand occurred for high density polyethylene (HDPE), according to MRC DataScope.

Last month's PE imports to Ukraine shrank to 23,400 tonnes from 27,700 tonnes in March, local companies increased shipments of all ethylene polymers grades, including due to quarantine and the suspension of some converters. Thus, overall PE imports reached 90,900 tonnes in January-April 2020, compared to 90,200 tonnes a year earlier. HDPE imports increased mainly due to the forced shutdown of Karpatneftekhim in the first quarter of this year, for other types of polyethylene imports decreased.

The supply structure by PE grades looked the following way over the stated period.
Last month's high density polyethylene (HDPE) imports decreased to 11,100 tonnes from 11,600 tonnes, Ukrainian companies significantly decreased their purchasing of film grade PE due to the resumption of the domestic plant. Overall HDPE imports exceeded 38,600 tonnes in the first four months of 2020 versus 33,300 tonnes a year earlier.

April imports of low-density polyethylene (LDPE) amounted to a little more than 5,000 tonnes against 7,900 tonnes a month earlier, local companies reduced their purchases due to quarantine and shutdown of part of the capacities. Overall LDPE imports reached 25,500 tonnes over the stated period, compared to 26,500 tonnes a year earlier.

Last month's linear low density polyethylene (LLDPE) imports were 6,100 tonnes versus 7,200 tonnes in March, with stretch films producers decreased their purchasing. Overall LLDPE imports reached 22,800 tonnes in January-April 2020, compared to 25,900 tonnes a year earlier.

Imports of other PE grades, including ethylene-vinyl-acetate (EVA), totalled 4,000 tonnes over the stated period, compared to 4,500 tonnes a year earlier.

MRC

MOSCOW (MRC) -- At least five Iranian tankers carrying fuel are currently en route to gasoline-starved Venezuela, which has the world’s largest crude reserves. The United States, which maintains sanctions on both OPEC members, is weighing a response to the supply, said Reuters.

State oil company Petroleos de Venezuela’s refinery network has the capacity to produce 1.3 million barrels per day (MMbpd) of fuel. But after years of underinvestment and lack of maintenance, those refineries processed just 101,000 bpd of crude and produced just 7,000 bpd of gasoline in March, according to an internal PDVSA document.

The South American country’s gasoline consumption has dropped significantly in recent months due to a quarantine designed to stop the spread of the coronavirus. Authorities are distributing just 30,000 bpd of gasoline to service stations across the country, according to an industry source, compared with pre-lockdown consumption of about 170,000 bpd.

In recent years, PDVSA has accepted imported fuel as payment for its crude exports. But these so-called swaps with its main partner, its U.S. refining subsidiary Citgo, were interrupted when the Trump administration sanctioned PDVSA in January 2019 as part of its bid to oust Maduro, a socialist.

Since then, Washington has also pressured PDVSA’s other trade partners, such as Spain’s Repsol, Italy’s Eni and India’s Reliance, not to supply gasoline, though they had been given permission to ship diesel, which is seen as necessary for distribution of food and other vital goods.

The shortages grew far more severe after Russia’s Rosneft, which in 2019 became the main intermediary for Venezuela’s crude and its main fuel supplier, halted operations in the country in March, after Washington sanctioned two of its trading units for dealing with Venezuela.

PDVSA is trying to restart the catalytic cracking units - which are fundamental for gasoline production - at the 146,000 bpd El Palito refinery and the 310,000 bpd Cardon refinery, which has received materials to help its restart via plane shipment from Iran.

In addition to the pending imports of fuel from Iran, the country received a 150,000-barrel shipment of gasoline in late April from Maroil Trading, a Venezuelan fuel magnate who in 2002 had come to late President Hugo Chavez’s rescue by shipping gasoline to the country during a PDVSA strike.

Ethylene and propylene are feedstocks for producing PE and 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

MOSCOW (MRC) -- Qatar Petroleum said Monday it joined with France's Total to acquire a 45% participating interest in exploration blocks offshore of Cote d'Ivoire, reported S&P Global.

The blocks CI-705 and CI-706 are located in the Ivorian-Tano basin, covering an area of about 3,200 sq. kilometers, Qatar said in a statement. The farm-in agreement marks QP's first foray into Cote d'Ivoire. Terms were not disclosed.
The area could include several hydrocarbons, located in water depths of 1,000 to 2,000 meters, 35 km from shore and about 100 km from nearby Foxtrot, Espoir and Baobab fields.

"The acquisition of working interests in these two blocks marks an important addition to QP's upstream portfolio in Africa," Saad al-Kaabi, QP's CEO, said in the statement. "Africa's offshore is a key target area for QP's international growth strategy."

The farm-in agreement is subject to customary approvals by Cote d'Ivoire's government.

Since June 2017, Qatar has been under a diplomatic and trade embargo by its Gulf neighbors Saudi Arabia, UAE, Bahrain and Egypt. Since then, the nation has looked to boost its international presence through a number of overseas upstream and downstream deals in countries including Oman, Mozambique, South Africa, Kenya, Guyana, the US and Brazil. Earlier this month, QP entered into three farm-in agreements - also with Total - to acquire about 30% of Total's participating interest in blocks 15, 33 and 34 located in the Campeche basin, offshore Mexico. The deal brought to six the number of Mexican blocks QP holds an interest in.

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 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.

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) -- Ukraine's polypropylene (PP) imports totalled about 39,100 tonnes in January-April of this year, down 13% year on year.
Supply of all grades of PP decreased, according to a MRC's DataScope report.

April PP imports to Ukraine decreased to 8,100 tonnes under the pressure of quarantine restrictions due to coronavirus against 10,500 tonnes a month earlier.Due to the partial shutdown of capacities, local companies have seriously reduced purchases of all types of propylene polymers. Overall imports of propylene polymers reached 39,100 tonnes in January-April 2020, compared to 45,000 tonnes a year earlier.
Only supplies of stat propylene copolymers (PP random copolymers) increased, while the demand for propylene polymers decreased.

The structure of PP imports by grades looked the following way over the stated period.

April imports of homopolymer PP to the Ukrainian market decreased to 5,800 tonnes from 8,000 tonnes a month earlier, with Russian injection moulding homopolymer PP accounting for the main decrease in shipments. Total homopolymer PP imports were 30,400 tonnes in January-April, compared to 36,000 tonnes a year earlier.

April imports of PP block copolymers into the country amounted to about 800 tonnes compared to 1,000 tonnes in March, local companies reduced the volume of purchases of injection moulding polypropylene. Over the reporting period, about 3,400 tonnes of propylene block copolymers were imported against 4,300 tonnes for the same period in 2019.

April stat PP imports decreased to 1,200 tonnes against 1,300 tonnes a month earlier, local converters reduced their purchases of pipe and injection moulding PP random copolymers. Overall PP random copolymers imports reached 4,600 tonnes in January-April 2020, compared to 4,200 tonnes a year earlier.

Overall imports of other propylene copolymers totalled slightly less 700 tonnes over the stated period.

MRC

MOSCOW (MRC) -- BASF-YPC (BASF-Yangzi Petrochemical) ,a 50-50 joint venture of BASF and Sinopec, has undertaken a planned shutdown at its polystyrene (PS) unit, according to Apic-online.

A Polymerupdate source in China informed that , the company has started a turnaround at the unit on May 5, 2020. The unit is expected to restart on June 20, 2020.

Located in Jiangsu, China, the PS unit a production capacity of 200,000 mt/year.

According to MRC's ScanPlast report, March 2020 estimated consumption of PS and styrene plastics dropped by 2% year on year, totalling 42,130 tonnes. The estimated consumption totalled 121,880 tonnes in the first three months of 2020, down by 2% year on year. Overall, Russian plants produced 42,790 tonnes in March 2020. Overall output of high impact polystyrene (HIPS) and general purpose polystyrene (GPPS) totalled 32,100 tonnes in March 2020. 98,390 tonnes of HIPS and GPPS were produced in January-March 2020. The decrease in Russian plants' output was 3%.

Yangzi Petrochemical - BASF Co., Ltd. is an enterprise located in China, with the main office in Nanjing. The enterprise currently operates in the Basic Chemical Manufacturing sector. It was established on December 04, 2000. There are currently 1,894 (2018) people employed by Yangzi Petrochemical - BASF Co., Ltd.. In 2018, the company reported a net sales revenue increase of 2.5%. Over the same period, its total assets decreased by 3.89%. The net profit margin of Yangzi Petrochemical - BASF Co., Ltd. decreased by 3.59% in 2018.
MRC