Huntsman partners with Vietnamese firm to produce fabric for medical gowns

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

Lotte Chemical swings to loss on weaker olefins, aromatics

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

Lotte Chemical to shut No. 3 MEG unit for maintenance in late May

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

Russian President discusses oil market with Saudi crown prince, stresses coordination

MOSCOW (MRC) -- Russian President Vladimir Putin discussed the oil market with Saudi Arabia's Crown Prince Mohammed bin Salman on Wednesday and agreed the need for "close coordination" between their respective energy ministers ahead of OPEC talks next month, reported S&P Global with reference to a Kremlin statement.

"Both sides noted the importance of joint efforts in achieving OPEC+ agreements in April to limit oil production," said the statement. "They agreed that further close coordination on this issue should take place between energy ministers."

The group is due to meet between June 8-10 to discuss oil market conditions, its current production agreement, and potential future steps. In April, the 23 members of the so called OPEC+ alliance agreed to reduce output by an unprecedented 9.7 million b/d in May and June in response to plummeting demand caused by the coronavirus pandemic.

Since then, Saudi Arabia has said it will voluntarily cut a further 1 million b/d in June. The UAE and Kuwait said they will cut an additional 100,000 b/d and 80,000 b/d, respectively.

The current agreement also includes a cut of 7.7 million b/d in the second half of the year, and 5.8 million b/d cut from January 2021 to the end of April 2022.

Dated Brent has more than doubled in value since hitting a 21-year low in April. Prices have recovered as major consuming nations begin to ease lockdowns and producers reduce supplies.

As MRC informed previously, 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, latest data from China's General Administration of Customs showed.

We also remind that LyondellBasell, the world’s largest licensor of polyolefin technologies, has announced that Advanced Global Investment Company (AGIC) has selected LyondellBasell’s PP technology for a new world-scale facility in Jubail Industrial City, Saudi Arabia. AGIC’s proposed project includes two polypropyelene (PP) plants with capacity of 400,000 tons/year each.

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.
MRC

Crude recedes from 10-week highs as US-China tensions weigh

MOSCOW (MRC) -- Crude oil futures traded lower in mid-morning trade in Asia Wednesday, stepping back from a 10-week high hit overnight, on growing geopolitical tensions between the US and China, reported S&P Global.

At 10:10 am Singapore time (0210 GMT), ICE Brent July crude futures fell 36 cents/b (1%) from Tuesday's settle at $35.81/b, while the NYMEX July light sweet crude contract was 46 cents/b (1.34%) lower at USD33.89/b.

"Optimism nestled within the markets at the start of the week, carried by reopening hopes, though fresh aggravating news on US-China relations appears to be changing the mood going into midweek," IG market strategist Pan Jingyi said in a note Wednesday.

Crude futures hit 10-week high Tuesday, amid hopes the continued reopening of economies could bring balance to oversupplied oil markets in coming weeks.

Nonetheless, oil pared gains amid growing tensions between the US and China over the origins of coronavirus.

Earlier in the week, US President Donald Trump warned that Washington was considering sanctions on China for its crackdown on Hong Kong, according to media reports.

This came after China's announcement at its National People's Congress in Beijing, saying it would pass a national security law on Hong Kong this summer.

"The fact of the matter is that it could remain a bumpy ride in the sessions ahead as the situation evolve," Pan said with regards to Asian markets.

Meanwhile, analysts surveyed by S&P Global Platts are expecting total commercial crude inventories to decline 1.2 million barrels during the week ended May 22 to around 525.3 million barrels.

While this seemed like a third straight week of falling inventory levels, the nationwide surplus to the five-year average is still expected to increase to around 10.7% from 10.1% the week prior, Platts reported.

As MRC wrote earlier, the heads of the world's largest oil and gas producers pledged Tuesday to maintain a strategic focus on producing cleaner energy and helping to mitigate climate change despite reeling from the impact of the coronavirus pandemic on oil and gas prices.

We remind that global oil consumption cut by up to a third in Q1 2020. What happens next in the oil market depends on how quickly and completely the global economy emerges from lockdown, and whether the recessionary hit lingers through the rest of this year and into 2021.

Earlier this year, BP said the deadly coronavirus outbreak could cut global oil demand growth by 40 per cent in 2020, putting pressure on Opec producers and Russia to curb supplies to keep prices in check.

We remind that, in September 2019, six world's major petrochemical companies in Flanders, Belgium, North Rhine-Westphalia, Germany, and the Netherlands (Trilateral Region) announced the creation of a consortium to jointly investigate how naphtha or gas steam crackers could be operated using renewable electricity instead of fossil fuels. The Cracker of the Future consortium, which includes BASF, Borealis, BP, LyondellBasell, SABIC and Total, aims to produce base chemicals while also significantly reducing carbon emissions. The companies agreed to invest in R&D and knowledge sharing as they assess the possibility of transitioning their base chemical production to renewable electricity.

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