Indian refiners crude processing in May recovers

MOSCOW (MRC) -- Indian crude oil processing gathered momentum in May, rising by some 7.3% from April to around 3.87 million barrels per day (bpd) as an easing of restrictions on transport and industrial activity boosted fuel demand, reported Reuters.

Compared to last year, Indian refiners’ crude processing however tumbled by 24.2% in May to 16.35 million tonnes, the data showed.

Fuel consumption, a proxy for oil demand in the world’s third biggest oil consuming nation, totalled 14.65 million tonnes in May, 47.4% higher than in April.

As a result, Indian refiners are already scaling up crude processing like their Asian peers. Indian Oil Corp, the country’s top refiner, aims to operate its plants at about 90% capacity in June.

IOC, along with subsidiary Chennai Petroleum Corp, operated its refineries at an average 69% of designed capacity of 1.6 million bpd, the data showed.

State refiners, which along with their subsidiaries account for about 65% of the country’s 5 million bpd refining capacity, are processing 69% of their installed capacity.

Reliance Industries Ltd, operator of the world’s biggest refining complex, operated its two refineries at 91.7% of their overall capacity of about 1.4 million bpd.

Meanwhile, crude oil production fell 7.1% in May from a year earlier to 2.60 million tonnes, or 615,300 bpd, its biggest decline in five months.

Natural gas output fell 16% to 2.30 billion cubic metres, data showed.

As MRC informed previously, LyondellBasell, the world’s largest licensor of polyolefin technologies, has recently announced that Indian Oil Corporation Ltd. (IOCL) will use the LyondellBasell Spheripol technology for a new facility. The process technology will be used for a 450 KTA polypropylene plant to be built in Panipat, Haryana State, India.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 595,170 tonnes in the first five month of 2020, up by 10% year on year. Deliveries of all ethylene polymers, except for linear low density polyethylene (LLDPE), rose partially because of an increase in capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market was 457,930 tonnes in January-May 2020 (calculated by the formula production minus export plus import). Deliveris of exclusively PP random copolymer increased.
MRC

MOSCOW (MRC) -- Rohm (Darmstadt, Germany) says it will shut down its methyl methacrylate (MMA) plant at Worms, Germany, for over three weeks in September for planned maintenance, reported Chemweek.

The plant will be closed on 7–30 September, it says.

The company last month announced it was raising prices for its MMA and other methacrylate monomer products in Europe, effective 1 July. Prices were increased between 2% and 4% depending on the product and as agreements allow.

Located in Worms, Germany, the plant has a production capacity of 225,000 mt/year.

As MRC wrote earlier, Roehm planned to take off-stream its MMA plant in Germany on 5 June 2020. The plant was expected to remain under maintenance for about 10 days. Located in Wesseling, Germany, the plant has a production capacity of 95,000 mt/year.

The principal application, consuming approximately 75% of the MMA, is the manufacture of polymethyl methacrylate acrylic plastics (PMMA). Methyl methacrylate is also used for the production of the co-polymer methyl methacrylate-butadiene-styrene (MBS), used as a modifier for polyvinyl chloride (PVC).

According to MRC's DataScope report, exports of suspension polyvinyl chloride (SPVC) from Russia reached about 92,200 tonnes in the first five months of the year, up 10% year on year. At the same time, PVC imports to the country grew by 1%,

Rohm, the former methacrylates business of Evonik Industries, was sold to private equity firm Advent International last year.
MRC

MOSCOW (MRC) -- Sulzer Chemtech has completed the design, installation and start-up of an advanced production line for expandable polystyrene (EPS) for the BEWiSynbra Group, said the company.

The company is one of Europe’s leading producers of EPS and the new unit will support its ambitious target to collect and recycle 60,000 tonnes of EPS annually by utilizing recycled materials as feedstock.

Sulzer, the leader in separation and mixing technology, has delivered a state-of-the-art EPS production line to the BEWiSynbra Group’s facility in Porvoo, Finland. The new unit utilizes Sulzer’s patented extrusion-based melt impregnation technology and has the capacity to produce over 10,000 tonnes of EPS per year from both recycled as well as virgin materials.

The new asset will help the BEWISynbra Group expand its plastic manufacturing capacity while also enabling it to meet its circular economy targets. The production line can convert EPS post-consumer waste into new EPS material used in applications such as building insulation or packaging.

Jonas Siljeskar, CEO of the BEWiSynbra Group, comments: “The new EPS extruder line designed and delivered by Sulzer allows BEWISynbra to broaden its EPS portfolio. It enables us to grow our volume of recycled materials, while improving our production efficiency as well as reducing our costs for repair and maintenance".

Philipp Suess, Head of Sulzer Chemtech ERA, concludes: “It is exciting to see our solutions play a key role in increasing the competitiveness of our customers as well as supporting their ambitious sustainability practices. We look forward to working with BEWiSynbra Group in the future."

As per ICIS-MRC Price Report, spot prices of Russian EPS grew to the range of Rb90,000-96,000/tonne CPT Moscow, including VAT. Spot prices rose in July, despite lower contract prices. Formula prices for the largest buyers fell to the lowest level - Rb81,000-82,000/tonne CPT a converter's warehouse, including VAT, in July. Their recovery is expected in the coming months. Prices of Chinese plants were still in the range of USD990-1,020/tonne CFR St Petersburg, excluding VAT, this week.

MRC

MOSCOW (MRC) -- Taiwan's CPC Corporation is restarting its No. 4 naphtha-fed steam cracker July 6 after being shut last week, reported S&P Global.

The company unexpectedly shut is No. 4 cracker due to technical glitches on 2 July, 2020,

Based in Linyuan, Taiwan, the cracker is able to produce 380,000 tons/year of ethylene and 193,000 tons/year of propylene. Initially, the shutdown period was slated for around 7 days.

Market players reported that this plant is supplying upstream to Taiwan's Oriental Union Chemical Corporation (OUCC)'s 250,000 tons/year monoyethylene glycol (MEG) plant as well as Taiwan‘s China Man-made Fiber Corporation (CMFC)'s 400,000 tons/year MEG plant, which causing both MEG plants to reduce production rate to around 70-80%.

The company also operates another cracker at the same site - No. 3 cracker, which has an ethylene capacity of 720,000 mt/year and propylene capacity of 370,000 mt/year.

As MRC informed previously, CPC Corporation took one of its naphtha crackers off-stream on 8 November 2019 for major maintenance work. The No. 4 cracker was expected to remain offline for about 65 days. The shutdown resulted in a production loss of 67,671 tons of ethylene and 34,370 tons of propylene.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 595,170 tonnes in the first five month of 2020, up by 10% year on year. Deliveries of all ethylene polymers, except for linear low density polyethylene (LLDPE), rose partially because of an increase in capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market was 457,930 tonnes in January-May 2020 (calculated by the formula production minus export plus import). Deliveris of exclusively PP random copolymer increased.

CPC Corporation, Taiwan, is engaged in the exploration, production, refining, procurement, transportation, storage, and marketing of oil and gas. The company provides fuel oil, including automotive unleaded gasoline and diesel fuel, low-sulfur fuel oil, marine distillate fuels, marine residual fuels, and aviation fuel; petrochemicals, such as ethylene, propylene, butadiene, benzene, para-xylene, and ortho-xylene; liquefied petroleum gas products comprising liquefied petroleum gas, propane, butane, and a propane/butane mixture; lubricants, motor oil, industrial oil, grease, and marilube oil; SNC products, including petroleum ether, naphtha, toluene, xylene, crude octene, methyl alcohol, normal paraffin, viscosity-graded asphalt cement, and sulfur; and natural gas.
MRC

MOSCOW (MRC) -- Zhejiang Petrochemical Co Ltd produced on specification material at its new acrylonitrile (ACN) plant plant in the week ended 4 July, reported S&P Global.

This plant is now running at 80%.

The company started up new ACN plant on 23 June, 2020.

Based in Zhejiang, China, this plant is able to produce 260,000 tons/year of ACN. Initially, the company planned to begin operations at this production in early May, but then postponed the start to the second half of May. Zhejiang Petrochemical last announced mid-June to be the start.

As MRC informed earlier, Zhejiang Petrochemical Co Ltd started up its ethylene cracker in late December 2019 and its polyolefin plants in late December 2019-January 2020.

Market sources reported then that one of its polypropylene (PP) plant with capacity of 450,000 tons/year started up by 30 December 2019, followed by another line with same capacity by 15 January 2020.

Meanwhile its 450,000 tons/year of linear low density polyethylene (LLDPE) and 300,000 tons/year of high density polyethylene (HDPE) were launched around similar time with PP plants.

ACN is the main feedstock for the production of acrylonitrile-butadiene-styrene (ABS).

According to MRC's ScanPlast report, Russia's ABS output was 780 tonnes in May 2020. Production of Russian ABS plastics totalled 4,240 tonnes in January-May 2020, down by 17% year on year.
MRC