Explosion rocks at biofuel plant in south China

MOSCOW (MRC) -- Two people were missing and two injured after an explosion on Sunday at a biofuel plant in China’s Fujian province, reported Reuters with reference to the local fire department and state media's statements.

The blast occurred around 10:10 a.m. (0210 GMT) at Longyan Zhuoyue New Energy Co Ltd, a Shanghai-listed biofuel producer based in the southern city of Longyan, as workers were doing maintenance, CCTV said.

The fire was continuing as of 0600 GMT, as more than 100 firefighters were dispatched to the site and nearby residents had been evacuated, CCTV said.

Longyan Zhuoyue New Energy processes gutter oil into biodiesel, the company website says.

We remind that, as MRC informed earlier, China is reviving a USD20 billion petrochemical project in eastern Shandong province as part of efforts to dial up infrastructure spending to support an economy struggling with the impact of the coronavirus pandemic. The 400,000 barrel-per-day (bpd) refinery and 3 million ton-per-year ethylene plant in Yantai, Shandong, the country’s hub for independent oil refineries, was proposed years ago but approval has been slowing in coming because of China’s struggle with excess refining capacity.

Ethylene is the main feedstock for the production of polyethylene (PE).

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.
MRC

PVC imports to Ukraine increased by 2% in H1 2020, exports down by 28%

MOSCOW (MRC) - Imports of suspension polyvinyl chloride (SPVC) into Ukraine decreased by 2% in January-June of this year, compared to the same period in 2019 and reached about 21,400 tonnes. Sales of Ukrainian PVC to foreign markets dropped by 28% year on year, according to a MRC's DataScope report.

June SPVC imports to the Ukrainian market remained at the level of May and reached about 3,500 tonnes; the introduction of an import duty of 18% did not affect the volume of external purchases. Overall SPVC imports reached 21,400 tonnes in January-June 2020, compared to 21,000 tonnes a year earlier. The high level of loading allowed the Ukrainian producer to increase export volumes.

The key suppliers of PVC to the Ukrainian market were producers from Europe, their share in total imports for the period under review amounted to about 83%. Producers from the USA with the share of about 16% were the second largest suppliers.

Last month, Karpatneftekhim had to decrease export sales due to the stronger demand from the domestic market, the export sales of Ukrainian PVC amounted to 12,700 tonnes against 17,400 tonnes in May. Overall, about 102,300 tonnes were shipped for export in the first six months of 2020, compared to 80,100 tonnes a year earlier.

MRC

Fire breaks out at petrochemical facility in southwest Iran

MOSCOW (MRC) -- A fire broke out at a facility belonging to the Shahid Tondgooyan Petrochemical Company in southwest Iran but was quickly contained, reported Reuters with reference to the official IRNA news agency, citing a local official.

The fire was caused by an oil leak but did not lead to any casualties or financial damage, Mohsen Beyranvand, the governor of Mahshahr county said, according to IRNA.

Beyranvand described the fire as minor and said it was put out in less than ten minutes.

There have been several explosions around Iranian military, nuclear and industrial facilities since late June.

A gas explosion shook a residential building in Iran’s capital Tehran on Saturday, injuring one person, the semi-official ISNA news agency quoted the city fire department as saying.

A chlorine gas leak occurred at a unit of the Karoon petrochemicals plant near the port of Bandar Imam Khomeini on the Gulf on July 4, injuring dozens, the semi-official ILNA news agency reported.

As MRC informed before, Iran's petrochemical products will reach 100 million tons by the end of 2021, according to a message from the managing director of the investment department of the National Petrochemical Company of Iran Hossein Alimorad. The volume of Iran’s petrochemical industry in 2013, Alimorad noted, was only about 56 million tons, and in 2017 - 64 million tons. The total cost of production in the petrochemical industry in 2013 amounted to USD16 billion, and in 2017 this figure reached USD17 billion. According to Alimorad, by 2021, the volume of production in Iran in the petrochemical industry will reach USD25 billion.

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

BASF Total to restart steam cracker at Port Arthur, Texas

MOSCOW (MRC) -- BASF Total's cracker in Port Arthur, Texas, is undergoing maintenance and expected to restart on 23 July, reported S&P Global with reference to the company's statement in a filing with Texas Commission on Environmental Quality (TCEQ).

An unexpected outage occurred at BASF Total Petrochemical’s joint-venture (JV) olefins unit at Port Arthur, Texas, on Thursday afternoon, 11 June, 2020.

The cause of the outage is being investigated, with a compressor shutdown cited as a possible factor, according to TCEQ filing.

The JV’s steam cracker at Port Arthur has a production capacity of more than 1 million metric tons/year of ethylene and 544,000 metric tons/year of propylene, according to IHS Markit data.

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

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