Demand for resins in Brazil up 3% on year in Q1 2020 - Braskem

MOSCOW (MRC) -- Demand for resins in Brazil in the first quarter of 2020 increased 3% year on year to 1.40 million mt and 7% quarter on quarter, reported S&P Global with reference to Brazilian petrochemical producer Braskem's statement earlier this month.

Braskem said its crackers operated at a capacity utilization rate of 81%, up 3 percentage points quarter on quarter. Compared with Q1 2019, capacity utilization increased by 3 percentage points, Braskem said June 3.

The company's resin (polyethylene (PE), polypropylene (PP) and PVC) sales in the Brazilian market totaled 882,000 mt, up 0.5% year on year and similar quarter on quarter.

"Market share has been stable or very similar to the past quarters," Chief Financial Officer Pedro van Langendonck Teixeira de Freitas said June 3. "Braskem sells at an import parity in Brazil, which is part of our strategy. We adjust the prices to accommodate or to reflect prices with international prices and exchange rate," Freitas said.

In Q1, Braskem exported 289,000 mt of resins, down 23.2% year on year and down 6.2% quarter on quarter, "due to the lower product availability of the petrochemical plants and the prioritization of sales to the Brazilian market," it said.

Of the total sales, 76% were sold in Brazil, 11% in the Mercosur region, 4% in Europe, 2% in Asia and Oceania excluding China, 3% in China, 1% in North America and 2% in others.

Braskem said its PVC plants operated at a capacity utilization of 65%, 14 percentage points lower than in Q4 2019, due to a planned outage at a PVC plant in Bahia state. In the Q1, Braskem imported 117,000 mt of EDC and 44,000 mt of caustic soda. The company PVC sales in the Brazilian market totaled 136,000 mt, 9% more than in Q4 2019. No year-on-year comparison was provided.

The company said its PE sales were mostly destined to the food sector (29.2%), industrial (19.8%), retail business (10%). PP sales were focused on consumer goods (23.5%), food sector (22.5%), agricultural (17%) and automotive (9.5%). PVC sales was mostly destined to construction (60%), infrastructure (10.9%) and consumer goods (10.2%).

Braskem's PP sales in the US totaled 368,000 mt, up 6.4% year on year and 3.4% quarter on quarter.

Its capacity utilization rate was 95%, 9 percentage points higher quarter on quarter and 4 percentage points higher year on year.

Braskem said demand for resins in the US was 1.3% higher quarter on quarter to 2.14 million mt, due to stocking from clients and higher medical and packaging demand, and 9.9% lower year on year, due to weak performance of the global economic related to the coronavirus pandemic.

"In the US, the expectation is for an improvement in June," said Freitas.

The company's PE sales in Mexico was 2% higher year on year at 213,000 mt, and also up 3% compared with the previous quarter.

Its capacity utilization rate was 86%, up 4 percentage points quarter on quarter and 7 percentage points year on year.

Braskem said demand for resins in Mexico increased 2% quarter on quarter to 543,000 mt and fell 0.4% year on year, due to higher stocking from clients.

"In Mexico, we had a very good month of April in sales, and in May it was a good month overall, so we do see an improvement," Freitas said.

Of the total sales, 51% were sold in Mexico, 18% in the Latin America region, 14% in the US, 3% in Europe and 3% in Asia. Freitas said fewer sales in the Mexican market has been offset by larger exports.

The company's PP sales in Europe were steady year on year to 131,000 mt, and increased 8.3% quarter on quarter.

Its capacity utilization rate was 88%, up 1 percentage point quarter on quarter and down 2 percentage points year on year.

The company said demand in Europe was down 5.8% year on year to 2.56 million mt, but increased 9.1% compared with the previous quarter.

As MRC wrote before, Brazilian petrochemical firm Braskem SA reported in early June a net loss of USD777 million in the first quarter compared with a profit of USD243 million a year ago, as foreign exchange oscillations led to higher financial expenses. The company said financial expenses grew to USD1.332 billion in the quarter ended March 31 from USD243 million a year ago, given the depreciation of the Brazilian real and the Mexican peso against the US dollar.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 721,290 tonnes in the first four month of 2020, up by 4% year on year. Low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) shipments grew partially because of the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply exclusively of PP random copolymer increased.

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
MRC

MOSCOW (MRC) -- Shaoxing Sanyuan Petrochemical, is in plans brought on-stream its No. 2 polypropylene (PP) unit following an unplanned maintenance, as per Apic-online.

A Polymerupdate source in China informed that the company is likely to resume operations at the unit on June 25, 2020. The unit was shut on June 18, 2020.

Located in Zhejiang, China, the No. 2 PP unit has a production capacity of 300,000 mt/year.

As MRC wrote before, the company already shut down its No. 2 PP unit in early February, 2020, because of logistical issues.

Shaoxing Sanyuan Petrochemical also operates another PP plant at the same site with a capacity of 200,000/mt yr and a propane dehydrogenation (PDH) unit with a capacity of 450,000/mt yr.

According to MRC's ScanPlast report, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply exclusively of PP random copolymer increased.
MRC

MOSCOW (MRC) -- Kaofu Chemical has broug on-stream its polystyrene (PS) plant following a turnaround, according to Apic-online.

A Polymerupdate source in the Taiwan informed that, the company resumed operations at the plant on June 19, 2020. The plant was shut for maintenance on May 28, 2020.

Located in Kaohsiung, Taiwan, the plant has a production capacity of 100,000 mt/year.

As MRC reported before, Kaofu Chemical shut down its PS plant in Kaohsiung plant for approximately a one-month turnaround in June 2019. The exact date of shutdown was not available.

According to MRC's ScanPlast report, April estimated consumption of PS and styrene plastics in Russia was 36,170 tonnes, down by 12% year on year. Russia's estimated consumption of PS and styrene plastics totalled 157,110 tonnes in January-April 2020, down by 5% year on year.
MRC

MOSCOW (MRC) -- Invista says the USD250 million retrofit of its Victoria, Texas, adiponitrile (ADN) unit remains on schedule, with completion slated for early 2021, said Chemweek.

"We anticipate all pre-turnaround construction will be completed later this year, and the final tie-ins are to be installed during a regularly scheduled maintenance outage in early 2021 with additional ADN coming online at that time," says a statement from the company.

The retrofit, announced in 2017, will allow the Victoria facility to employ a new Invista process that provides higher ADN product yields while lowering energy consumption, greenhouse gas emissions, and capital intensity than the current process. First scaled up at Invista’s Orange, Texas, facility, the technology has also been deployed at the Chalampe, France, site of Butachimie, Invista’s joint venture with BASF, and it will be implemented in Invista’s new 400,000 metric tons/year ADN project in Shanghai, China, which broke ground earlier this month.

ADN, a key feedstock for nylon-6,6, has been tight in recent years. Three producers—Invista, Ascend, and Asahi Kasei—control the technology used to produce it at commercial scale.

As MRC informed earlier, Invista’s world-scale adiponitrile (ADN) plant began construction on Tuesday in the Shanghai Chemical Industry Park (SCIP) in Jinshan District. The construction is one of Shanghai’s 152 major projects for 2020. Investment in the plant will total more than 70 billion yuan (USD9.89 billion). When completed in 2022, it will supply 400,000 tons of ADN a year to China and the Asia Pacific region.

As MRC informed earlier, Invista technology and licensing group, INVISTA Performance Technologies (IPT), and Hengli Petrochemical (Dalian) Co., Ltd (Hengli) are pleased to announce that Hengli’s 4th PTA line utilising Invista P8 Process Technology has met all performance guarantees. Hengli’s 4th PTA line of 2.5 million tonnes per annum capacity, located in Changxing Island, Dalian City, Liaoning Province, utilising Invista P8 PTA technology with industry leading variable cost, capital productivity and environmental performance, came online on January 8th, 2020. This PTA line also produces benzoic acid as co-product, utilising INVISTA’s proprietary R2R technology.

Аccording to MRC's DataScope report, April imports amounted to 16,600 tonnes, 26% more than the previous month. External supplies of material were at the level of 14,100 tonnes in April last year. The volume of supplies of bottle grade PET from China to Ukraine over the fur months of the year fell almost three times: from 36,400 tonnes in January-April 2019 to 12,200 tonnes.

Invista is one of the world’s largest producers of chemical intermediates, polymers and fibers. It is owned by Koch Industries, America’s largest privately held company. Since 2014, it has invested more than 4 billion yuan in manufacturing facilities in the Shanghai park.

MRC

MOSCOW (MRC) -- ZheJiang Petroleum & Chemical (ZPC; Zhoushan, Zhejiang, China) has selected Axens’ (Rueil-Malmaison, France) catalysts for its pyrolysis gasoline (Pygas) selective hydrogenation units part of the 1,400,000-ton/yr grassroots ethylene plant Phase 1 in Zhoushan City, China, said the company.

The ethylene cracker is part of ZPC’s grassroots integrated refining and petrochemical complex echoing China’s current national economic development plan.

In 2016, ZPC started the first design studies and simultaneously the first technical discussions with Axens. At end of 2019, ZPC Phase 1 steam cracker was started-up and all olefins and aromatics products very rapidly reached the targeted specifications.

Following the successful start-up of Phase 1 Pygas units, ZPC recently selected Axens for the supply of the selective hydrogenation catalysts for the Phase 2 of the project. A new ethylene cracker (two trains) will be added raising the ZPC’s total ethylene capacity to 4,200,000 ton/yr. Axens will supply catalysts for the MAPD (methylacetylene and propadiene) and phenylacetylene hydrogenation units as well as the catalysts for the Pygas first and second stage units.

When completed, the new plant will be the largest steam cracker in China and one of the largest in the world. Axens’ latest generation of high-performance selective hydrogenation catalysts combines state-of-the-art alumina carriers and cutting-edge metal impregnation technologies. High activity, easy regeneration, highly competitive cost-to-fill, are among the key advantages of these catalysts.

As MRC wrote previously, in early December 2012, Zhejiang Petroleum & Chemical Co Ltd launched a 3.8-million-ton-per-year reformer unit, a key processing facility at its new mega refinery and petrochemical complex in east China. The reformer unit, which processes naphtha into aromatics, is the world’s single-largest facility of its kind.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 721,290 tonnes in the first four month of 2020, up by 4% year on year. Low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) shipments grew partially because of the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply exclusively of PP random copolymer increased.
MRC