Celanese again raises July VAM prices in Asia

MOSCOW (MRC) -- Celanese Corporation, a global specialty materials company, once again increased this month's list and off-list selling prices for Vinyl Acetate Monomer (VAM) sold in Asia outside China (AOC), as per the company's press release.

This time, the price increase is effective for orders shipped on or after 8 July, 2020, or as contracts otherwise allow, and is incremental to any previously announced increases.

Thus, July VAM prices rose by USD50/mt - for AOC.

As MRC reported earlier, Celanese last raised its VAM prices for this region on 1 July, 2020. The price increase was USD100/mt.

According to MRC's DataScope report, April EVA imports to Russia dropped by 5,85% year on year to 3,050 tonnes from 3,250 tonnes a year earlier, and overall imports of this grade of ethylene copolymer into the Russian Federation increased in January-April 2020 by 1,55% year on year to 12,540 tonnes (12,350 tonnes a year earlier).

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 7,700 employees worldwide and had 2019 net sales of USD6.3 billion.
MRC

MOSCOW (MRC) -- Cefic has called on EU member states to agree urgently on a recovery plan to restart Europe’s economy and kick off investments toward a green and digital transition, said Chemweek.

The EU chemical industry is seeking investments in building renovation, clean mobility, the development of all forms of clean hydrogen, chemical recycling, and carbon capture and storage as well as carbon capture and utilization, Cefic says.

The main aim of Cefic's call for action, ahead of a European Council meeting on 17 July, is to provide a much-needed solution to the economic uncertainty caused by COVID-19, according to the strategic goals set out by the EU Green Deal, Cefic says. It is in line with the Council’s previous comments and announcements on the need for an EU recovery plan, in which the chemical industry should play a key role.

"Our priority is to go through the green transition while strengthening our production capacity in Europe. This will only be possible if the EU keeps its industries competitive throughout the transition. This is why the EU recovery plan must be accompanied by a strong industrial strategy based on the European Green Deal vision. This will ensure that the recovery funding supports a resilient industrial transformation. It also means the upcoming chemical strategy for sustainability needs to be assessed in full on its impact on the EU chemical industry," says Marco Mensink, director general at Cefic.

The Council has welcomed the new EU4Health program that supports the relaunch of the EU's production of active pharmaceutical ingredients and strengthens procurement of vital medicines, medical devices, and personal protective equipment, Cefic says.

EU4Health is a dedicated funding program for 2021-27 to build resilient health systems in the EU to equip it better for the future, the EU Commission says. The EU will invest EUR9.4 billion in tackling cross-border health threats, making medicines affordable, and strengthening health systems in the EU, the Commission says. It forms part of the EU’s ambition to create a European Health Union.

As it was written earlier, in 2017, SIBUR joined the European Chemical Industry Council (CEFIC). SIBUR has also become a member of the European Committee of Ethylene Producers and Technology Suppliers (EEPC, part of CEFIC). Membership in the Council allowed SIBUR to take part in the work of 93 sectoral groups on more than 120 petrochemical products, in 90 strategic groups working on issues of sustainable development, innovation, trade, energy and law in the field of petrochemicals.

As MRC informed earlier, Russia's output of chemical products rose by 4.4% year on year in May 2020 . Thus, production of basic chemicals increased year on year by 5.4% in the first five months of 2020. 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. Production of benzene was 110,000 tonnes in May 2020, which equalled the figure a month earlier. Overall output of this product reached 615,000 tonnes over the stated period, up by 1.7% year on year.
MRC

MOSCOW (MRC) -- Meridian Adhesives Group (Dalton, Georgia), owned by private equity firm Arsenal Capital Partners, has acquired E-Chem (Albuquerque, New Mexico), a maker of epoxy polymer products for concrete, said Chemweek.

The products are used in the preservation, rehabilitation, repair and structural support of concrete surfaces and structures, including applications for epoxy bridge deck overlays and high-friction surface treatment. End markets include transportation authorities, petrochemical processing, renewable energy, non-residential concrete construction and parking-structure rehabilitation. "We are looking forward to expanding our business more aggressively in the infrastructure market, and I am confident the skilled team at E-Chem will drive value to that endeavor,” said Daniel Pelton, CEO of Meridian Adhesives Group. E-Chem will become part of Meridian’s infrastructure division, which also includes Adhesives Technology Corp., a maker of construction and industrial-related adhesives in epoxies, urethanes, acrylics, ester blends and polyureas.

"Joining Meridian’s expert technology team is an exciting step for E-Chem,” said James High, president of E-Chem, who founded the firm 2012. "Our continuous pattern of growth will be bolstered even further by the group’s extensive distributor network."

As MRC informed earlier, Russia's output of chemical products rose by 4.4% year on year in May 2020 . Thus, production of basic chemicals increased year on year by 5.4% in the first five months of 2020. 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. Production of benzene was 110,000 tonnes in May 2020, which equalled the figure a month earlier. Overall output of this product reached 615,000 tonnes over the stated period, up by 1.7% year on year.
MRC

MOSCOW (MRC) -- Lotte Chemical and Hanwha General Chemical have entered into an agreement, in which Hanwha will supply 450,000 t/y of purified terephthalic acid (PTA) to Lotte, effective July, as per Apic-online.

In order to meet its supply obligation, Hanwha will restart PTA production at its No. 2 plant in Ulsan, S. Korea, which has been idle. Hanwha owns Korea's "largest" PTA facility with a capacity of 2-million t/y, Lotte noted.

Lotte will transform its 600,000-t/y PTA facility in Ulsan to produce purified isophthalic acid (PIA), beginning this July. It has 520,000 t/y of PIA production capacity.

"This agreement is a case to expand profitability and business competitiveness through the voluntary cooperation of the two companies, who are competitors in the petrochemical industry, and it is meaningful in that they came together for the bigger goal of developing the domestic chemical industry," said Lotte.

As MRC reported earlier, on 4 March, 2020, Lotte Chemcial shut its naphtha cracker after an explosion at the plant in the southwestern city of Seosan, which injured 31 people. The explosion, which was triggered by a fire at a compressor in Lotte Chemical’s naphtha cracker at around 3 a.m. local time (1800 GMT), was soon contained and under control, the company said then in a statement. The cracker may resume production this October, although initially the restart was planned in a couple of weeks after the accident.

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.

According to 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.

South Korean Lotte Chemical is a global petrochemical company, established in 1976. It produces low density polyethylene (LDPE), high density polyethylene (HDPE), linear low density polyethylene (LLDPE), polypropylene (PP), functional resins, styrene monomer (SM), polyethylene terephthalate (PET), etc.
MRC

MOSCOW (MRC) -- China has added polypropylene (PP), along with polyvinyl chloride (PVC) and linear low-density polyethylene (LLDPE), as a trading option on the Dalian Commodity Exchange in the country's northeastern province of Liaoning, said Technicaltextile.

With this, the number of options listed for trading on the Exchange has increased to seven, according to Chinese media reports.

The seven options and 20 futures listed for trading on the Exchange cover several fields including chemicals, energy and agriculture. The inclusion of PP, PVC and LLDPE will boost the risk management ability of petrochemical enterprises, the reports said.

China is a major producer and consumer of all three plastic chemical products—PP, PVC and LLDPE—and their listing will support the sound and stable development of the country's petrochemical industry.

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