Braskem completes construction of La Porte PP plant

MOSCOW (MRC) -- Braskem has announced that it has completed construction of its newest polypropylene (PP) production facility at La Porte, Texas, reported Chemweek.

The new plant has a designed capacity of over 450,000 metric tons/year and has the capability to produce the entire PP portfolio including homopolymer, impact copolymer and random copolymers. The plant added 50 permanent full-time jobs to support long-term commercial production.

Mark Nikolich, Braskem America CEO, said, "… As commercial production begins later this year, Braskem will position the new facility's domestic production capabilities to replace imported polypropylene volumes, which are currently addressing the shortfall in the United States' domestic market. Commercial production activity at the facility, in conjunction with our new global export hub in Charleston, South Carolina, will also directly support Braskem's global export capability to its clients throughout North America, South America, Europe, and Asia."

The commissioning process is currently ongoing. During this phase, the company is concluding functional tests and process tests to verify performance of controls and integrated safety systems. Initial production test runs are anticipated to begin in the next month with the first full scale commercial production activity currently expected in the third quarter of 2020.

"The COVID impact on the North American polypropylene industry during April and May affected durable segments such as automotive. However, this impact was partially mitigated with strong sales in nonwovens and packaging applications. In June, demand improved and Braskem's North American polypropylene outlook for the third quarter is positive as clients are ramping up operations and demand has rebounded. Braskem’s… global supply chain has made preparations to leverage North America's competitive propylene and polypropylene position for exports supporting our clients in North America, South America, Europe, and Asia. The combination of improved demand, planned outages in the third quarter, and export opportunities will support a smooth ramp up of the new facility," said Alexandre Elias, vice president/polypropylene North America.

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, 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.
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Gail petrochemical business swings to profit

MOSCOW (MRC) -- State-owned natural gas distributor GAIL India on June 24 reported a 168.9% year-on-year growth in standalone profit for the quarter ended March 2020, driven by tax write-back and strong operating performance, said Moneycontrol.

Profit during the quarter increased to Rs 3,018.2 crore from Rs 1,122.23 crore in the same period last year. However, revenue from operations in fell 5.4% to Rs 17,753.12 crore compared to year-ago, hit by nationwide lockdown that began in late March.

Its operating performance was strong as earnings before interest, tax, depreciation and amortisation (EBITDA) surged 47% to Rs 2,475.36 crore and the margin expanded 497 basis points to 13.94% YoY.

Its other income fell to Rs 513.22 crore during the quarter compared to Rs 865.88 crore reported in Q4FY19. The natural gas segment saw a 6.1% year-on-year increase in revenue to Rs 1,554.2 crore and its earnings before interest & tax (EBIT) rose 15.4% to Rs 892.03 crore, the company told BSE.

Natural gas marketing segment registered a 4.6 percent year-on-year decline in revenue at Rs 14,744.88 crore but its EBIT grew by 2.6% to Rs 602.64 crore.

LPG and liquid hydrocarbons division reported a 2.9% YoY rise in revenue at Rs 1,153.91 crore and its EBIT jumped 26.9% to Rs 528.14 crore.

The stock reacted positively to the earnings, rising 2.87 % to Rs 102.10 at the time of publishing this copy.

As MRC reported earlier, Gail India Ltd plans to build a new plant for the production of polypropylene (PP) at its complex in Pata (Pata, India) worth 7.5 billion rupees or USD104.3 million. A new enterprise with a capacity of 600,000 tonnes/year will be located next to operating production facilities of the company in this complex. GAIL plans to put the new PP plant into operation 3 years after receiving all necessary regulatory approvals.

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.

GAIL (India) Limited is India's largest gas company. The company owns 6,700 km of gas pipelines with a total throughput of 54 billion cubic meters. m per year, 7 LPG plants with a total capacity of 1.2 million tons per year, a gas chemical complex in the city of Pata (Uttar Pradesh state), 1,922 km of LPG pipelines. In addition, the company produces petrochemical products, including ethylene and polyethylene.

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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.
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Shaoxing Sanyuan to resume production and No. 2 PP unit

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.
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Kaofu Chemical resumes PS production in Taiwan

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.
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