Sinopec Maoming resumes production at No. 2 LDPE unit

MOSCOW (MRC) -- Sinopec Maoming Petrochemical, part of Sinopec Corporation,has brought on-stream its No. 2 low density polyethylene (LDPE) unit in Guangdong, according to Apic-online.

A Polymerupdate source in China informed that, the company resumed operations at the unit on May 22, 2020. The unit was shut for a brief maintenance on May 18, 2020.

Located at Guangdong in China, the No. 2 LDPE unit has a production capacity of 280,000 mt/year.

As MRC reported previously, Sinopec Qilu Petrochemical, another subsidiary of Sinopec, plans to shut the cracker unit in Tianjin in northeast China for scheduled repairs on 15 June, 2020. This cracking unit with a capacity of 900,000 tonnes of ethylene per year and 480,000 tonnes of propylene tons per year will be closed for scheduled repairs until 24 June, 2020.

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.

Sinopec corp. is one of the world's largest integrated energy and chemical companies. Business Sinopec Corp. includes oil and gas exploration, production and transportation of oil and gas, oil refining, petrochemical production, production of mineral fertilizers and other chemical products. In terms of refining capacity, Sinopec Corp. ranks second in the world, in terms of ethylene capacity - fourth.
MRC

MOSCOW (MRC) -- The British Plastics Federations Pipes Group believes during these unprecedented times, maintaining a robust supply chain for all the utilities is essential, but often goes unnoticed by the general public, said Britishplastics.

Continuity and safe supply are vital for the normal functioning of the UK utility network, and ongoing routine maintenance as well as emergency repairs help ensure an uninterrupted power and water supply source available 24/7. This applies to both the water and sewerage networks as well as to gas and electricity supplies.

The group says the UK plastic pressure and non-pressure pipe manufacturers have a key role to play in this, and as part of an important supply chain have adapted quickly from the initial lockdown shock to continue delivering a level of service which minimises risk to the utility sector.

Plastic pipe suppliers say they are well-prepared and able to provide the robustness that utilities need in the current climate by maintaining their own internal supply chain via forward planning and risk management through to instigating appropriate social distancing measures and safe working practices for those in the manufacturing, administration and distribution areas.

Caroline Ayres, BPF Pipes Group Director, said: "Our members have been working hard to ensure the supply chain for utilities continues to remain safe and secure, so that products required for emergency work in every utility sector as well as routine construction and maintenance are always available."

Where worker safety can be ensured, major scheduled utility infrastructure projects are continuing to some extent, and the recent lighter volumes of road traffic have helped in this. Pipe supplies are continuing to be provided, with operators adhering to strict social distancing rules. Factories where pipe materials and fittings are manufactured are maintaining a level of production to ensure that the supply chain for essential work and emergencies is not broken.

The support roles they are playing are vital to keep utilities able to function as close to normal as possible. Regarding site deliveries for example, pipe suppliers are photographing delivered items alongside a member of the contractor team as no signatures are currently possible, thus supporting new ways of working around social distancing protocols.

Builders’ merchants have different procedures for accepting deliveries and these are also being complied with by pipe manufacturers. The group concludes: “As there still remains uncertainty as to when and how the lockdown will be eased, it is essential that the flexible approach adopted by UK pipe manufacturers continues to reflect the ever changing landscape of the current situation in order to support the utility sectors, something BPF Pipes Group members are continuing to do. This is why it is essential that the utility supply chain remains stable, and BPF Pipes Group members are continuing to provide an important service."

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) -- Huntsman Textile Effects and Bao Minh Textile, one of the largest and most modern woven fabric producers in Vietnam, are collaborating to produce fabric that meets the stringent performance standards required of isolation gowns, said Chemweek.

High-quality medical gowns are essential protective wear for healthcare workers combatting the global COVID-19 pandemic, but these are in short supply worldwide. Bao Minh Textile will initially treat 760,000 metres of woven fabric with a carefully curated combination of Huntsman Textile Effects barrier effect solutions and auxiliaries. This fabric is sufficient to produce 345,000 high-grade isolation gowns.

“To help meet extraordinary global need for hospital gowns, we had to be able to deliver a high-performance fabric of consistent high quality while maintaining our commitment to good manufacturing practice and sustainability. The technical teams from Bao Minh Textile and Huntsman Textile Effects worked hand in hand to make this possible at speed,” said Mr Tran Dang Tuong, Chief Executive Officer of Bao Minh Textile.

Manfred Albrecht, Chief Representative for Huntsman Textile Effects Vietnam, said: “We are pleased to support an industry innovator and sustainability champion like Bao Minh Textile to help in the fight against COVID-19. It takes deep operational knowhow and knowledge of the chemical composition and mechanical properties of finishing effects and fibres to manufacture Personal Protective Equipment (PPE) to the required standard. Huntsman Textile Effects and Bao Minh Textile have an excellent collaborative relationship and we look forward to continuing to help the team refine production amid COVID-19 and beyond."

Bao Minh Textile’s isolation gown fabric relies on a range of Huntsman pre-treatment, dyeing and finishing solutions. These include Clarite One, an all-in-one pre-treatment for peroxide bleaching; Novacron and Terasil dyes; Phobol?CP-C, an excellent oil, water and stain-repellent finish; and Phobotex RSY, a non-fluorinated durable water repellent with extremely high washing resistance. Phobol Extender XAN is also applied to further increase wash durability.

Huntsman Textile Effects has a comprehensive range of barrier effects for both nonwoven and woven medical applications, including facemasks and PPE such as isolation gowns.

As MRC informed earlier, Huntsman announced that in 2020, its polyols production facility in Kuan Yin, Taiwan, will begin to utilise the company's well-proven Terol polyols technology to recycle distressed PET streams to satisfy the growing demand from the regional PIR foam insulation market.

As per MRC DataScope, Russia's PET imports decreased by 35% in April to 11,200 tonnes against 17,400 tonnes in March; last April material imports amounted to 22,900 tonnes. Imports of Chinese injection moulding PET chips in Russia increased by 16% in January-April, compared with the same period a year ago and reached 40,400 tonnes. The same indicator in January-April 2019 amounted to 48,200 tonnes.

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2017 revenues of more than USD8 billion. Its chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. The company operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within its four distinct business divisions.
MRC

MOSCOW (MRC) -- Lotte Chemical (Seoul, South Korea) reports a first-quarter net loss of 90 billion South Korean won (USD73.7 million), compared with a net profit of W224 billion in the same period of the previous year, according to Chemweek.

The company recorded an operating loss of W86 billion versus an operating profit of W298 billion a year earlier. Sales were W3.2 trillion, a drop of 9.6% year on year (YOY).

Lotte Chemical says its olefins segment registered an operating loss of W12 billion in the first quarter compared with an operating profit of W191 billion in the year-ago quarter. Revenue decreased by 10.4% YOY to W1.6 trillion for this segment due to a decline in product prices.

Lotte Chemical says that an explosion at its petrochemical complex at Daesan, South Korea, reduced group profit. The complex at Daesan, based on a naphtha cracker, accounts for 21.8% of Lotte Chemical's sales. It says the sharp drop in oil prices led to inventory-valuation losses in the segment. The coronavirus disease 2019 (COVID-19) pandemic weakened demand in the company's polyethylene-polypropylene segment. However, demand for packaging and medical items grew. Demand for ethylene glycol (EG) declined. Lotte Chemical projects profit to improve in the second quarter due to the “low cost of feedstock.”

Lotte Chemical's aromatics division swung to an operating loss of W41 billion, versus an operating profit W58 billion a year earlier. Sales were down 39% YOY to W438 billion, versus W718 billion a year earlier. Sales were pressured by a decrease in product prices caused by falling oil prices and operating-rate adjustments at overseas subsidiaries.

Aromatics profit decreased due to oversupply caused by China’s new large-scale paraxylene (p-xylene) plants starting operation despite improved demand during the polyester peak season. Operating profit for the advanced materials unit declined 65% to W31 billion. Polyester demand in China is weak due to COVID-19, but this was partially offset by the rise in demand for sanitation and disposable items since February. The company projects profit to improve gradually in the second quarter on the onshore polyester peak season despite continued oversupply.

Operating profit for the advanced materials unit increased 32.2% YOY to W41 billion. Sales for this unit grew by 14.7% YOY to W809 billion. Profit at the acrylonitrile-butadiene-styrene (ABS) unit improved on the drop in raw material prices. The polycarbonate (PC) unit performed poorly owing to “oversupply and weak demand in compounding,” the company says. The COVID-19-related lockdown led to a decline in sales for construction materials. A decline in worldwide car production weakened demand for the company’s mobility unit. Earnings for this unit are expected to decrease in the second quarter. Lotte expects compounding volumes to decline owing to the shutdown of client companies in the US and Europe for sectors such as home appliances and automotive.

The company’s Lotte Chemical USA business unit achieved an operating profit of W14 billion, down 57.5% quarter on quarter (QOQ), on lower sales of W109 billion, down by 14% QOQ. The company says that profit was hurt by a maintenance turnaround of its ethane cracker at Lake Charles, Louisiana. The cracker, which was inaugurated in May 2019, has capacity for 1 million metric tons/year (MMt/y) of ethylene. COVID-19 and the low oil price led to a decline in the price of EG. Lotte projects profitability for this business unit will decrease due to “feedstock price rise and weak product prices.” Weak demand and continued oversupply of EG are is expected, it says. Demand for polyester in the US and Europe is expected to remain low. However, the company anticipates demand for disposable sanitation items and food packaging to rise.

The company’s other overseas unit, Lotte Chemical Titan Holding (Kuala Lumpur, Malaysia), reported a net loss of 169.4 million ringgit ($38.9 million) for the first quarter, versus a net profit of RM55.8 million during the corresponding period in the previous year, due to a margin squeeze resulting from a decline in selling prices. Revenue was down 33% YOY to RM1.4 billion, also due to lower selling prices and sales volume, which were caused by weakening demand following the different levels of COVID-19 related movement controls established locally and across Southeast Asia since late January.

As MRC wrote previously, on 4 March, 2020, Lotte Chemcial shut its naphtha cracker after an explosion at the plant in the southwestern city of Seosan, which injured 31 people. The explosion, which was triggered by a fire at a compressor in Lotte Chemical’s naphtha cracker at around 3 a.m. local time (1800 GMT), was soon contained and under control, the company said then in a statement. The cracker may resume production this October, although initially the restart was planned in a couple of weeks after the accident.

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.

South Korean Lotte Chemical is a global petrochemical company, established in 1976. It produces low density polyethylene (LDPE), high density polyethylene (HDPE), linear low density polyethylene (LLDPE), polypropylene (PP), functional resins, styrene monomer (SM), polyethylene terephthalate (PET), etc.
MRC

MOSCOW (MRC) -- Lotte Chemical (former Honam Petrochemical), a subsidiary of the South Korean Lotte Group, has planned to take off-stream its monoethylene glycol (MEG) unit No. 3 for a catalyst change work, according to Apic-online.

A Polymerupdate source in South Korea informed that, the company is likely to halt operations at the unit by end-May, 2020. The maintenance work is expected to remain in force for around one month.

Located at Yeosu in South Korea, the unit has a production capacity of 160,000 mt/year.

As MRC reported before, Lotte Chemical restarted its No.3 MEG plant on September 29, 2016. The plant was shut in end-August, 2016, owing to a bearish market fundamentals. Located in Yeosu, South Korea, the No. 3 MEG plant has a production capacity of 160,000 mt/year.

The company also operates two other MEG units in Yeosu with the capacity of 120,000 mt/year each.

MEG is one of the main feedstocks for the production of polyethylene terephthalate (PET).

As per 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.

South Korean Lotte Chemical is a global petrochemical company, established in 1976. It produces low density polyethylene (LDPE), high density polyethylene (HDPE), linear low density polyethylene (LLDPE), polypropylene (PP), functional resins, styrene monomer (SM), polyethylene terephthalate (PET), etc.
MRC