ECHA reports rise in non-compliant hand disinfectants in EU markets

MOSCOW (MRC) -- The European Chemicals Agency (ECHA; Helsinki, Finland) says that 20 EU member states have reported an increase in non-compliant hand disinfectants on their markets since March, triggered by high demand for these products to fight COVID-19, reported Chemweek.

The authorities in EU countries are performing inspections and taking measures that include fines and the withdrawal of the products from the market, and communicating them in Rapid Alert System for Non-Food Products (RAPEX) to raise public awareness about the ineffective products marketed to consumers as disinfectants, ECHA says.

The COVID-19 pandemic has led many member states to grant health emergency permits, to increase and speed up the production of disinfectants. This was encouraged by the EU to ensure that healthcare professionals and citizens have access to these products. However, this has attracted new producers and suppliers to the market, some of which appear to be taking advantage of the situation, although most may simply not have prior knowledge of the legal framework, ECHA says.

As a result, many member states have identified “disinfectants that do not have the required authorization or permit, or lack hazard labeling,” ECHA says. Moreover, there were cases reported of products that “claimed to be disinfectants but which had a formulation that cannot be sufficiently effective against viruses,” the agency adds.

“When disinfectants are manufactured or used inappropriately, they can be a health risk rather than keep us safe. It is important for national authorities to check and enforce the legal provisions, also in times where we face exceptional circumstances. ECHA is collecting the national authorities’ feedback on specific difficulties and urgent questions that need to be clarified to support enforcement at a national level,” says Erwin Annys, head/support and enforcement at ECHA.

ECHA and the European Anti-Fraud Office (OLAF) have agreed to share information of mutual interest collected in the context of inquiries related to the COVID-19 crisis, the agency says. The OLAF unit in charge of fighting against counterfeit goods and illicit trade launched in March an inquiry into illicit trafficking of COVID-19 related products, including disinfectants, ECHA says.

As MRC wrote previously, in early April 2020, Clariant announced it had started monthly production of 2 million liters of disinfectant at its facilities in Gendorf, Germany.

We remind that in early March 2020, SABIC purchased additional shares in Clariant, increasing its holding in the company from 24.99% to 31.5%. The move is part of Sabic’s growth strategy to achieve a leadership position among global peers in specialties and increase this segment’s contribution to Sabic. Completion of the transaction is subject to regulatory approvals.

Earlier last year, SABIC took off-stream its SABIC Olefins 4 cracker owing to technical issues on May 10, 2019. Further details on duration of the shutdown could not be ascertained. Located in beek, the Netherlands, the cracker has an ethylene production capacity of 690,000 mt/year and a propylene production capacity of 360,000 mt/year.

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.
mrcpast.com

MOSCOW (MRC) -- Russian offline primary oil refining capacity is seen declining in June to 1.583 million tons from an upwardly revised plan of 4.168 million tons expected in May, reported Reuters with reference to energy ministry data, as seasonal maintenance comes off its peak.

The data for May was revised up from the previous plan of 3.5 million tonnes.

The data also showed idle capacity reached 3.551 million tonnes in April.

As MRC informed earlier, the rapidly rising price of Russia’s flagship Urals blend oil has forced European refineries to cut purchases from Moscow and look for crude supplies elsewhere.

We remind that Russia may further cut overseas supplies of its Urals oil next month due to rising demand from domestic refineries as coronavirus-related restrictions ease.

We also 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.

As MRC reported before, 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 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

MOSCOW (MRC) – According to the American Chemistry Council (ACC), the U.S. Chemical Production Regional Index (U.S. CPRI) tumbled 3.1% in April following a 1.0% decline in March and a 0.4 percent decline in February, said Chemweek.

During April, chemical output fell across all regions, with the steepest decline in the Gulf Coast region. The lower level of chemical activity is directly related to supply chain disruptions and the lockdown of much of the U.S. economy during April.

Production fell across all chemical segments. Within several major segments, however, production of some chemical materials increased, including supply chains tied to personal protective equipment (PPE) and disinfection products.

As nearly all manufactured goods are produced using chemistry in some form, manufacturing activity is an important indicator for chemical demand. With many factories shut down during the month, overall manufacturing activity fell by 6.3 percent on a three-month moving average (3MMA) basis, with declines across all industry sectors – in some cases quite steep.

Compared with April 2019, U.S. chemical production was 5.3 percent lower, the eleventh and highest consecutive month of year-over-year declines. Chemical production was lower than a year ago in all regions, with the largest declines in the Northeast, Mid-Atlantic, and West Coast regions.

We remind that Russia's output of chemical products rose in May 2020 by 4.4% year on year. Thus, production of basic chemicals increased year on year by 5.4% in the first five months of 2020, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the output in January-May.
MRC

MOSCOW (MRC) -- Dongguan Grand Resource Science and Technology Co Ltd (JuZhengYuan) is planning to shut its propane dehydrogenation (PDH) plant for scheduled maintenance by the beginning of July 2020, reported CommoPlast with reference to market sources.

Based in Dongguan, China, the company has a PDH plant with production capacity of 600,000 tons/year and two polypropylene (PP) plants with a combined production capacity of 600,000 tons/year.

As MRC informed earlier, Dongguan Grand Resource Science and Tech restarted its PDH plant on January 17, 2020. The plant was shut for maintenance on January 6, 2020.

Propylene is the main feedstock for the production of PP.

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.

Dongguan Grand Resource Science and Technology Co Ltd is owned by Juzhengyuan Energy (Shenzhen, Guangdong, China). On 26 October 2019, Dongguan Grand Resource’s (Dongguan, Guangdong, China) integrated complex for polypropylene production in Dongguan officially started up.
MRC

MOSCOW (MRC) -- Johnson Matthey (JM) announced that Ningxia Baofeng Energy Group has "successfully" commissioned a new methanol plant at Ningxia Baofeng's 600,000-t/y coal-to-olefins complex in Ningxia Province, China, according to Apic-online.

The 6,600-t/d methanol unit, based on technology from JM, utilizes syngas feedstock and combines advanced JM catalysts to produce stabilized methanol, which is used to produce olefins in a downstream facility.

"This project has incorporated processing technologies from the most advanced international and domestic coal-to-chemical units," said Liu Yuanguan, president of Baofeng Energy.

"The unit is the largest methanol plant for a single train with comprehensive advantages of high synthesis and energy efficiency and low OPEX and emissions, benefiting both our society and providing long-term value."

As MRC reported earlier, in late April, 2020, the first phase of Connell Chemical Industry Ltd.'s 600 KTA MTO complex, a 300 KTA MTO plant, successfully started up and produced on-spec ethylene and propylene. This project is the first large-size chemical project brought online during period when Chinais in the process of restarting the economy while fighting COVID-19 pandemic. The MTO plant started feed-in at 8:18 AM on April 15, produced on-spec propylene at 7:00 AM on April 18, and produced on-spec ethylene at 4:00 AM on April 20.

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