PVC production in Russia up by 1% in H1 2020

MOSCOW (MRC) -- Russia's overall production of unmixed polyvinyl chloride (PVC) totalled 509,300 tonnes in January-June 2020, up by only 1% year on year. Only three producers managed to increase their output, according to MRC's ScanPlast report.

June production of unmixed PVC in Russia was 77,200 tonnes versus 81,100 tonnes a month earlier, Kaustik Volgograd shut its production capacities for an unscheduled turnaround, and Bashkir Soda Company also took off-stream its production for an unplanned maintenance. Overall output of polymer rose to 509,300 tonnes in the first half of 2020 from 502,600 tonnes a year earlier, only three producers increased their production, whereas Bashkir Soda Company reduced its PVC production.

The structure of PVC production by plants looked the following way over the stated period.


RusVinyl (JV of SIBUR and SolVin) produced 28,500 tonnes of PVC in June, with emulsion polyvinyl chloride (EPVC) accounting for 2,300 tonnes, compared to 29,900 tonnes a month earlier. RusVinyl's overall SPVC output reached 177,100 tonnes in the first six months of 2020, compared to 166,800 tonnes a year earlier.

SayanskKhimPlast produced slightly over 27,000 tonnes of suspension PVC (SPVC) last month, whereas this figure was 27,700 tonnes in May. The Sayansk plant managed to produce 165,000 tonnes of PVC in January-June 2020, compared to 162,500 tonnes a year earlier.

Bashkir Soda Company shut its PVC production for 5 days in mid-June because of disruptions in ethylene shipments, and as a result, the final June output fell to 15,800 tonnes from 22,000 tonnes a month earlier. The Baskhir plant's overall production of resin reached 130,700 tonnes in January-June 2020, down by 5% year on year.

Kaustik Volgograd shut its production capacities for maintenance in May-June, as a result, the plant's total PVC output was 1,500 tonnes and 5,900 tonnes, respectively. The plant's overall production of resin exceeded 36,500 tonnes in the first half of 2020 versus 36,000 tonnes a year earlier.

MRC

COVID-19 - News digest as of 13.07.2020

1. Marathon Galveston Bay, Texas, refinery overhaul to finish in late July

MOSCOW (MRC) -- Marathon Petroleum Corp plans to finish a multi-unit overhaul in late July at its 585,000-barrel-per-day (bpd) Galveston Bay Refinery in Texas City, Texas, said sources familiar with plant operations, said Hydrocarbonprocessing. Marathon shut the 225,000-bpd Pipestill 3B crude distillation unit (CDU) on Monday to begin connecting to it the units shut for the overhaul, the sources said. Marathon spokesman Sid Barth declined to comment. The company began the overhaul on May 23 with the shutdown of a 65,000-bpd reformer, a 60,000-bpd residual oil hydrotreater and an aromatics unit, the sources said. Five days later, the 60,000-bpd hydrocracker, the 31,500-bpd alkylation unit and a 47,500-bpd aromatics recovery unit were shut along with a sulfur recovery unit. The overhaul was originally scheduled to begin in March, but was pushed back twice to reduce the risk that large numbers of contract workers at the refinery would spread novel coronavirus, according to the sources.


MRC

Fujian Meide Petrochemical delays start-up of its new PDH unit in Fujian to September

MOSCOW (MRC) -- China's Fujian Meide Petrochemical, a wholly owned subsidiary of China Flexible Packing Group,
is planning to start up its newly-built propane dehydrogenation (PDH) plant in Jiangyin, Fujian province, around September this year, reported S&P Global with reference to a company source.

The new PDH with the capacity of 660,000 mt/year was originally scheduled to start up in the first half of February, 2020, then - in the second half of February. High cost of feedstock propane was the cause of the delay.

Afterwards, the company postponed the start until June and then - July, 2020.

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

According to MRC's ScanPlast report, 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

Zhejiang Petrochemical to maintain 80% capacity unitlisation at new ACN plant in China throughout July

MOSCOW (MRC) -- Zhejiang Petrochemical Co Ltd is running its new acrylonitrile (ACN) plant at 80% operating rate and is likely to maintain this rate for the rest of July, reported S&P Global.

The company started up new ACN plant on 23 June, 2020, and produced on specification material in the week ended 4 July.

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

Hengli operates its new No.5 PTA plant in Dalian at around 85%

MOSCOW (MRC) -- Hengli Petrochemical Co Ltd ramped up the operation rate of its new No. 5 purified terephthalic acid (PTA) line at Dalian to around 85% over the weekend, reported S&P Global with reference to two sources familiar with the matter.

The company managed to produce prime grade PTA cargoes at its new PTA line in China on 30 June.

This line was successfully launched on 28 June, 2020.

Based in Dalian, China, the company has 5 PTA plants with combined production capacity of 11.6 million tons/year, making Hengli Group the world's largest PTA producer, as each PTA plant has production capacity of 2.5 million tons/year.

A source closed to the company informed that the team has working hard to ensure the plant startup progress, whereby they spent only around 14 months from ground breaking to plant startup.

As MRC reported earlier, Hengli Petrochemical (Dalian) Co. reached full rate at its No. 4 PTA line in Dalian City in mid-March, 2020. The 2.5-million-t/y PTA line, which came online in January 2020, utilizes Invista's P8 PTA technology. The line also produces benzoic acid, using Invista's RP2PR technology.

PTA is used to produce polyethylene terephthalate (PET), which is used in the manufacturing of plastic bottles, films, packaging containers, in the textile and food industries.

As per MRC's ScanPlast report, May estimated PET consumption in Russia amounted to 70,170 tonnes, which corresponds to the level of consumption last year (70,450 tonnes). In total for the period January - May of this year, the estimated PET consumption in the Russian Federation amounted to 304,310 tonnes of material. This is 3% lower than the same indicator in 2019.

Hengli Petrochemical Co., Ltd. manufactures chemical fibers. The Company researches, produces, and sells polyester filament and chips for consumer and industry products. Hengli Petrochemical markets it products worldwide.
MRC