Braskem will raise LDPE and PP prices for the rest of May

MOSCOW (MRC) -- Brazil’s sole polyethylene (PE) producer Braskem will raise LDPE and PP prices for the rest of May by Real 150/mt (USD26.61/mt), according to industry sources, while HDPE and LLDPE prices will remain unchanged, said S&P Global.

Braskem is currently renegotiating its naphtha contract with Petrobras, as prices in North America have edged up on higher crude. The Brazilian petrochemical company’s JV with Idesa in Mexico also has limited feedstock supply.

In the beginning of May, the company reduced the price of all PE grades in May to address falling demand and a decline in international feedstock prices.

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.
Braskem S.A. produces petrochemicals and generates electricity. The Company produces ethylene, propylene, benzene, toluene, xylenes, butadiene, butene, isoprene, dicyclopentediene, MTBE, caprolactam, ammonium sulfate, cyclohexene, polyethylene theraphtalat, polyethylene, and polyvinyl chloride (PVC).
MRC

The chemical industry responses to a crisis

MOSCOW (MRC) -- We often forget how vital the chemical industry is to our well-being, safety and daily lives. The stigma around the issue of plastics waste in the environment often overshadows the progress the industry has made in becoming one of the more sustainable producers of critical products, said Canplastics.

In recent months, it has never been clearer just how important and responsive this industry is when faced with a global health crisis. The world has been left reeling from the impact of coronavirus and the chemical industry has stepped in with incredible speed and agility to help struggling health authorities get the materials they need to help fight the virus – protecting our people on the front line to save lives.

Life-critical materials from chemical suppliers are required to produce antibacterial wipes, hand sanitizer, disinfectants, surfactants for soaps and personal protective equipment (PPE) such as masks, gowns and face shields. By supporting a robust supply of such products, the chemical industry is helping control the spread of the virus.

Alongside a huge swing of production towards isopropyl alcohol (IPA) and ethanol, used in the production of hand sanitizer, many chemical companies have acted to directly meet the massive spike in demand for the final hand sanitizer product.

INEOS built two new plants in the UK and Germany in just 10 days to produce hand sanitizer, which it is now distributing free to health authorities. Two more such plants were built in the Arkansas and Pennsylvania in the US, in under 10 days. INEOS sites in Grangemouth, Scotland and Moers and Herne in Germany and Lavera in southern France have also been running at capacity to produce the IPA and ethanol needed to support the new plants.

Dow has announced four additional global sites for sanitizer production which, including its existing facility in Germany, takes expected production to more than 200 metric tons. Again, the sanitizer will be free of charge to health authorities. Dow has also designed simplified and lightweight face shields, and is producing 100,000 such units for donation to hospitals in Michigan, US.

There are many examples where our industry, like humankind, has come together, stepped up and pivoted to support our fight against Covid-19.

The industry has, and will, play a significant role in this crisis, its prevention and the recovery. ExxonMobil, Oleon, MOL, Shell, Cropenergies, Huntsman, LyondellBasell, BASF, Arkema, Perstorp, Indorama, PTT Global Chemical, SABIC, Unica, VCI and many others, have all responded in a huge global effort to support the fight against the virus.

The response from the chemical industry to this global crisis is not surprising. The industry has long stood as a major contributor to global GDP and a game changer in human history.

Innovation continues to evolve to improve and save lives, and enable critical technologies. Chemicals have helped deliver low and zero fat foods; make water safe; create new materials that are stronger, lighter and safer for electric vehicles; enabled more efficient aircraft and increased crop yields.

Indeed, almost every industry relies on chemicals for some part of its production processes. Its work today has focused on supporting growth and addressing sustainability challenges.

On 19 March, the US Department of Homeland Security (DHS) identified the chemical industry and its workers as “Essential Critical Infrastructure” – an industry sector critical to public health and safety, economic and national security. The DHS noted to the chemical industry that there is “a special responsibility to maintain your work schedule”, while following CDC (Centers for Disease Control and Prevention) workforce and customer protection guidance.

As the industry continues to pivot its production capacity in response to Covid-19, it is doing so in a market landscape in which chemical prices due to the virus have plummeted.

Alongside cleaning and sanitizing products, polyethylene (PE) for food packaging and polypropylene (PP) for PPE are crucial in disease prevention. Although critical to the Covid-19 response, demand and pricing for these materials have also slumped on weakness in automotive, construction and consumer durables.

For an industry born out of innovation and pivotal to modern society, however, the chemical industry will remain strong. The effects of the Coronavirus pandemic will certainly echo through many industries and their supply chains, providing an opportunity to learn and most likely change the way they work in the future.

Under the pressures which a crisis brings, organisations will have to find better and new ways of doing old things, summoning creativity to adapt to a new normal with the conditions and opportunities this brings.

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

Bayport Polymers announced PE price increase in June

MOSCOW (MRC) -- Bayport Polymers LLC (Baystar), the joint venture Total and Borealis, announced a 4 cents/lb price increase for all PE resins effective June 1, said S&P Global.

Baystar now is building a 625,000 mt/year HDPE plant along the Houston Ship Channel.

The state-of-the-art Borstar technology, which will be used in North America for the first time, will allow Baystar to produce enhanced polyethylene products for the most demanding applications. Approximately 1,750 jobs will be created during the peak engineering and construction activity.

Baystar is also building a one-million-ton per year steam cracker in Port Arthur, Texas. The new cracker will process ethane, which is abundantly available and competitively priced in the U.S., and will supply feedstock for its existing 400,000-ton-per-year polyethylene units as well as the new Borstar polyethylene unit in Pasadena.

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.

Total and NOVA Chemicals are founding members of the Alliance to End Plastic Waste, an alliance of nearly 30 companies from the plastics and consumer goods value chain committed to advance solutions to help end plastic waste in the environment, especially in the ocean. Borealis is a founding member of Project STOP, an initiative that aims to eliminate the leakage of plastics into the environment.
MRC

EPS imports to Belarus rise by 15% in Jan-May 2020

MOSCOW (MRC) -- Imports of expandable polystyrene (EPS) into Belarus rose in the first quarter of 2020 by 15% year on year, totalling 2,600 tonnes, according to MRC's DataScope report.

This figure was at 2,300 tonnes in January-March 2019.


March EPS imports into the country fell by almost two times from February to 1,160 tonnes from 650 tonnes. Imports of material into the country were 1,100 tonnes in March 2019.

Russia is the main EPS importer to Belarus.

Imports of Russian material to the Belarusian market rose in the first three months of 2020 by 25% year on year: from 1,390 tonnes in January-March 2019 to 1,740 tonnes. The share of EPS imports from Russia in the total shipments to the country reached 66% in the first quarter of 2020 versus 60% a year earlier. March shipments of Russian EPS to the region were 941 tonnes versus 477 tonnes in February, whereas imports of material were 731 tonnes in March 2019.

At the same time, the share of imports of Chinese material doubled year on year in January-March 2020: from 5% (120 tonnes) to 10% (260 tonnes).

MRC

Russia sees global oil market balancing in June or July

MOSCOW (MRC) -- The Russian energy ministry expects the global oil market to balance in June or July as a result of rising consumption, as well as the drop in production in OPEC+ and other countries, said S&P Global.

"14-15 million b/d of oil has already left the market as a result of the OPEC+ deal, and also declining production in other countries. The surplus is currently around 7-12 million b/d, but the energy ministry expects that in June or July the market will balance thanks to rising consumption," the ministry said in a statement released after the energy minister Alexander Novak took part in a government meeting Monday.

The ministry estimates that although demand for oil in May continues to be low, it is up around 20% on April levels.

During the meeting, participants also discussed measures to support the industry in response to the coronavirus pandemic.

Russia has already issued a temporary ban on imports of oil products, including gasoline, diesel, and jet fuel, until October 1.

It also reduced required volumes of oil products sales via exchanges by half between April 1 and June 30. Companies are now required to sell 5% of gasoline, 3% of diesel, 5% of jet fuel, 1% of fuel oil and 2.5% of LPG produced on exchanges.

Other proposals include exemptions from meeting oil production targets in project documentation, creation of a fund to support the oil field services industry, and moving the excise on motor fuels from refineries to filling stations. The government has set a deadline of June 15 to finalize these support measures.

As MRC informed earlier, China's crude oil imports from Russia rose 17.7% year on year to 7.2 million mt or 1.76 million b/d in April, resulting in Russia overtaking Saudi Arabia to become the country's top supplier in the month.

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.
MRC