Output of products from polymers in Russia up by 1.2% in Jan-May 2020

MOSCOW (MRC) -- Russia's output of products from polymers decreased in May 2020 by 7.2% year on year due to quarantine restrictions and weaker demand. However, this figure increased by 1.2% year on year in the first five months of 2020, reported MRC analysts.

According to the Russian Federal State Statistics Service, May production of unreinforced and non-combined films dropped to 101,000 tonnes from 107,000 tonnes a month earlier. Output of films products grew in the first five months of 2020 by 10.1% year on year to 503,900 tonnes.

Last month's production of non-porous polymer boards, sheets and films rose to 33,000 tonnes from 32,800 tonnes in April. Thus, overall output of these products reached 160,500 tonnes in January-May 2020, up by 4.9% year on year.

May production of porous poly,er boards, sheets and films was 22,800 tonnes, up by 12.6% month on month. Overall production of these products reached 107,300 tonnes in the first five months of 2020, compared to 101,200 tonnes a year earlier.

May production of plastic bottles and flasks fell to 1,958,000,000 items from 2,060,000,000 items a month earlier. Overall output of these plastic products totalled 8,920,000,000 units over the stated period, compared to 8,541,000,000 units a year earlier.

Last month's production of polymer pipes, hoses and fittings was 56,500 tonnes versus 52,800 tonnes in April. Overall output of these products was 250,100 tonnes in January-May 2020, up by 18.5% year on year.

May production of sacks and bags from ethylene polymers reached 2,547,000,000 units, compared to 2,419,000,000 units a month earlier. Overall output of these plastic products totalled 11,676,000,000 units in the first five months of 2020, compared to 9,857,000,000 units a year earlier.

Last month's production of linoleum and floor coverings was 8,600,000 square metres, compared to 6,700,000 square metres in April. Overall output of these products totalled 48,600,000 square metres over the stated period versus 54,300,000 square metres a year earlier.

May production of plastic windows and door blocks reached 1,816,000 square metres and 69,200 square metres, respectively, versus 1,521,000 square metres and 64,300 square metres a month earlier. Overall output of these plastic products totalled 8,862,000 square metres and 330,000 square metres, respectively, compared to 7,718,000 square metres and 344,500 square metres a year earlier.
MRC

New Clariant additive solutions to add more than just a finishing touch to North American industrial coatings

MOSCOW (MRC) -- Clariant unveils solutions fit for elevating industrial coatings to the demanding performance and increasing sustainability requirements of North America’s diverse end-users - the automotive, transportation, building & construction, and consumer & household goods industries, as per the company's press release.

Delivering innovations in key areas, such as light stability and durability, fire resistance, waterborne and low VOC coatings, and higher solid solvent-borne coatings, the latest additions to Clariant’s portfolio equip local manufacturers to get to the crux of new sector needs and make the most of opportunities in the globally-growing industrial coatings market.

“More is required of industrial coatings, whether for a car or truck, earth-moving equipment or for structural steel work, than just a finishing decorative touch. Their users look for protection that will extend the lifecycle of industrial applications and deliver high performance in areas such as wear and corrosion resistance. At the same time, reduced environmental impact is an increasing priority. Our additives expand the manufacturers’ toolbox so that future coatings can really raise the bar in meeting customer needs,” comments Tyler Kilgannon, Head of Sales, BU Additives North America.

Steel is North America’s most recycled material, gaining in popularity for commercial and industrial buildings and infrastructure due to its strength, durability, versatility and 100% recyclability. Clariant now offers manufacturers of intumescent, fire-protective steel coatings the chance to take their products’ sustainability and protection performance a step further.

New halogen-free flame retardant Exolit® AP 418 (TP) helps solvent based intumescent coatings for steel structures to reach up to 10% longer fire resistance time compared to conventional solutions. Clariant’s EcoTain-labelled flame retardant has a favorable environmental and health profile, making no contribution to a solvent-based coating’s VOC emissions.

Clariant also introduces its North America customers to a new solution for water-based intumescent coatings, to sustainably improve the negative impact of cold weather exposure during shipping and storage. Halogen-free Exolit AP 435 prolongs the shelf life, keeping the coating fluid and workable for longer by preventing paints from either drying out quickly in their pail or becoming unusable due to increased stiffness. The EcoTain-labelled innovation supports a greater use of waterborne coatings and reduces the environmental impact of intumescent coatings.

Both Exolit innovations will be featured in a special live webinar “Clariant's new Exolit solutions for fire protective water- and solvent-borne coatings” on Wednesday June 17 at 9am Eastern Daylight Time / 15:00 Central European Summer Time. Pre-register here to participate and get in-depth info on the new products direct from Clariant’s experts.

Attention turns to service life with a new opportunity to improve the durability of industrial coatings and better protect the application.

On the back of positive development of the US-based automotive manufacturing announced in 2019, Clariant is supporting producers of paints and clear coats for metal and plastics automotive components by offering solutions aimed at extending the service life of coatings. The synergistic high-performance light stabilizer solution AddWorks LXR 313 contributes to an increased durability of waterborne and solvent-based clear and pigmented coatings. Formulated without xylene, it extends its benefits from automotive to general industrial applications. AddWorks LXR 313 enables coating formulators to develop new solutions for today’s modern coating systems where light and heat stabilization are key requirements.

Based on the persistency of PFOA, the European parliament decided to ban PTFE substances that contain PFOA in a concentration equal to or above 25 parts per billion (grams per thousand tons) with reference to entry 68 of Annex XVII of REACH. The effective date is July 4, 2020 and exemptions that are currently under discussion will only be temporary.

Conforming with this new REACH regulation, Clariant is expanding its portfolio and introducing its new Ceridust 3942 F TP and Ceridust 3943 F TP to give its customers more options to select REACH compliant PTFE wax solutions. These new micronized PTFE modified polyethlene wax additives enable powder coatings with a fine and homogeneous textured structure and a matte finish. The new solutions show excellent properties in terms of mar resistance, dirt repellence and anti-slip performance. The need for PFOA REACH-compliant PTFE waxes can also be observed for other coating and also ink applications. Clariant’s new Ceridust 9203 F TP helps to improve scratch and metal marking resistance as well as the slip performance. Customers benefit from an improved appearance and longevity of coated surfaces and prints.

As MRC reported earlier, in June 2020, TechnipFMC and Clariant Catalysts entered into a joint development agreement for the demonstration and commercialisation of Clariant’s new state-of-the-art AcryloMax propylene ammoxidation catalyst for the production of acrylonitrile (ACN).

Besides, in May 2020, Clariant’s CATOFIN catalysts was selected by Advanced Global Investment Co. (AGIC), a joint venture between Advanced Petrochemical Company (APC) and SK Group, to build a PDH facility in the Middle East.

Propylene is the main feedstock for the production of polypropylene (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.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints.
MRC

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.
MRC

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.

MRC

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