Vinmar partners with Agilis on digitalization strategy

MOSCOW (MRC) -- Vinmar International, a global marketing and distribution company for petrochemicals and plastics, will partner with Agilis Chemicals to help execute on its digitalization strategy, according to Chemweek.

Agilis - which offers a cloud-based software solution to build branded portals for producers and distributors - will design, develop, and deploy digital solutions for Vinmar.

“We work closely with our petrochemical suppliers to develop tailored business solutions and marketing programs that work for them," said Vishal Goradia, Vinmar senior vp. "The partnership with Agilis will allow us to continue to execute on this commitment and to accelerate and drive our digitalization strategy.”

The effort will allow Vinmar to streamline operations and increase efficiency while maintaining high data privacy and security standards. “Vinmar has a set of complex business challenges, and we are excited about working with them," said Jay Bhatia, Agilis founder and CEO. "The chemical distribution market is only at the beginning stages of a digital transformation journey."

As MRC reported earlier, Vinmar Polymers America will distribute Lanxess Corp.'s high-performance plastics to customers in North America. Thus, VPA, a unit of Houston-based Vinmar International, and Lanxess of Pittsburgh will work together to complement Lanxess' market strategy with regionally placed inventory, along with sales and technical support, officials said in a Jan. 17, 2020, news release.

Russia's output of chemical products rose in June 2020 by 2.6% year on year. However, production of basic chemicals increased year on year by 4.9% in the first six 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-June. Production of benzene was 106,000 tonnes in June 2020, compared to 110,000 tonnes a month earlier. Overall output of this product reached 721,000 tonnes over the stated period, up by 3.9% year on year. June production of polymers in primary form fell to 791,000 tonnes from 820,000 tonnes in May partially because of a scheduled shutdown for maintenance at ZapSibNeftekhim. Output of polymers in primary form totalled 4,900,000 tonnes over the stated period, up by 14.8% year on year.

Vinmar is a global marketing and distribution company that brings value to the world’s leading producers and users of plastics and chemicals through the supply of best in class products and tailored business solutions. With over 40 years of experience and success, Vinmar has grown into one of the world’s largest plastics and chemicals marketing and distribution companies. The company has over 50 offices in more than 35 countries with sales in excess of 110 countries. Among other petrochemical products, the company produces polyethylene , polypropylene, polyvinyl chloride, polyethylene terephthalate and polystyrene.
MRC

MOSCOW (MRC) -- Crude oil futures were largely steady in mid-morning trade in Asia July 30, as a sharp uptick in global coronavirus cases overrode a deep decline in US inventory stocks, reported S&P Global.

At 10:30 am Singapore time (0230 GMT), ICE Brent September crude futures was up 5 cents/b (0.11%) from the July 29 settle at USD43.80/b, while NYMEX September light sweet crude contract was up by 5 cents/b (0.12%) at USD41.32/b.

US crude oil inventories fell sharply during the week ended July 24 as exports and refinery demand climbed to multi-month highs, US Energy Information Administration data showed July 29.

However, total gasoline stocks climbed 650,000 barrels to 247.39 million barrels, pushing inventories to 7.9% above the five-year average while nationwide distillate inventories were also up 500,000 barrels at 178.39 million barrels, about 26% above the five-year average and notably, a fresh 38-year high.

"The mild market reaction to a huge inventory draw suggests that the gasoline inventory glut is providing the poor eye candy," Stephen Innes, chief global markets analyst at AxiCorp, said in a note July 30.

"Given how noisy this data set has been of late, that traders would rather wait before jumping for the inventory prints to flesh out a more convincing two- to four-week trend," he added.

Meanwhile, the US Federal Reserve Federal Open Markets Committee, in a move the market widely expected, held its target interest rate flat at 0-25 basis points Wednesday and extended its securities purchasing programs.

Globally, rising coronavirus infections and record daily fatalities in some US states continued to weigh on market sentiment. The number of total confirmed infections worldwide currently stands at 16.96 million, latest data from John Hopkins University showed. Cases remained high in US, Brazil and India, and combined, they account for about 50% of the worldwide infections.

In US, deaths from the coronavirus have surpassed 150,000. California, Texas and Florida - the three most populous state in the US - each reported a new single-day record of daily fatalities, according to media reports.

"The continued COVID-19 spread and rising fatalities remains a prevalent issue dragging on sentiment and more broadly capping further gains for crude oil prices from the current consolidation," Pan Jingyi, market strategist at IG, said July 30.

As MRC informed previously, data collected and tabulated by the American Chemistry Council (ACC) show that due to growth in China, global chemicals production rose by 0.6 percent in June, an improvement from the 0.5 percent decline in May, Production has been declining throughout this year, with the last monthly gain occurring in December 2019. During June, chemical production fell in major regions except Asia-Pacific. Headline global production was off 7.2 percent year-over-year (Y/Y) on a three-month moving average (3MMA) basis and was off 7.4 percent from the peak December level. Global output stood at 109.8 percent of its average 2012 levels.

At the same time, Russia's output of chemical products rose in June 2020 by 2.6% year on year. However, production of basic chemicals increased year on year by 4.9% in the first six 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-June. Production of benzene was 106,000 tonnes in June 2020, compared to 110,000 tonnes a month earlier. Overall output of this product reached 721,000 tonnes over the stated period, up by 3.9% year on year. June production of polymers in primary form fell to 791,000 tonnes from 820,000 tonnes in May partially because of a scheduled shutdown for maintenance at ZapSibNeftekhim. Output of polymers in primary form totalled 4,900,000 tonnes over the stated period, up by 14.8% year on year.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
MRC

MOSCOW (MRC) -- BASF South East Asia has joined ZDHC Foundation as a ‘Contributor’ in its chemical industry category. The partnership with the Foundation and its extensive pool of experts from organisations in textile, apparel, leather & footwear industry underlines BASF’s commitment to being an industry leader in driving sustainable chemistry, innovation and best practices, said Fibre2Fashion.

Additionally, Haptex is the first BASF material solution that has received the Eco Passport by Oeko-Tex certification for production of synthetic leather. Haptex, BASF’s first PU solution made without the use of organic solvents, has been certified Eco Passport by Oeko-Tex, an independent certification system for chemicals in the apparel, textile and leather industries. During a multi-stage process, Eco Passport analyses whether each ingredient in a chemical product meets international statutory requirements and is not harmful to human health. On-site inspections will also validate claims that suppliers are using safer and better chemistry according to industry best practices.

"The partnership with ZDHC represents BASF’s leadership in driving sustainability in chemicals and leather manufacturing. Through collaboration with partners, standard-setting and implementation, we are helping to protect the environment by reducing the industry’s chemical footprint across the textile, leather and footwear value chain,” said Andy Postlethwaite, senior vice president, BASF Performance Materials Asia Pacific. “We are pleased to know that Haptex meets the green standard of ZDHC Manufacturing Restricted Substances List (ZDHC MRSL) Level 3 conformance, which is the highest level in the Roadmap to Zero programme."

ZDHC MRSL Conformance indicates that Eco Passport certified chemical substances conform to ZDHC standards. The ZDHC MRSL covers chemical substances that are limited or banned from intentional use in the production of apparel and footwear materials to protect workers, consumers, and the environment.

BASF creates chemistry for a sustainable future. It combines economic success with environmental protection and social responsibility. More than 117,000 employees in the BASF Group work on contributing to the success of our customers in nearly all sectors and almost every country in the world. Its portfolio is organised into six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care and Agricultural Solutions.

The ZDHC Foundation oversees implementation of the Roadmap to Zero Programme and is a global multi-stakeholder initiative of more than 160 contributors within the fashion and footwear industry. The vision is widespread implementation of sustainable chemistry, driving innovations and best practices to protect consumers, workers and the environment. ZDHC uses collaborative engagement to drive a holistic, industry focused and practical approach to sustainable chemical management. ZDHC guidelines, platforms and solutions drive large-scale industry wide implementation that advances the industry as a whole towards the zero discharge of hazardous chemicals.

As MRC reported earlier, BASF Total's cracker in Port Arthur, Texas, is undergoing maintenance and expected to restart on 23 July, 2020, according 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 DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF generated sales of EUR59 billion in 2019.

MRC

MOSCOW (MRC) -- Hexion (Columbus, Ohio) and Wayfinder (Alberta, Canada) have formed a partnership serving resin-coated proppant users in western Canada, said Chemweek.

Wayfinder’s new manufacturing facility in Obed, Alberta, will produce Hexion’s full product portfolio, including its range of resin-coated proppants, the companies say. The partnership with Hexion will enable Wayfinder to provide a broader spectrum of products and further penetrate the resin-coated sand market in Canada, while also increasing the utilization of its Obed facility, says Chad Bremner, Wayfinder’s president and CEO. The facility has 20,000 metric tons of storage capacity, according to the company.

Proppants are used by the oilfield services industry in the hydraulic fracturing process to increase subsurface well production flows.

As MRC informed earlier, Hexion, a major American manufacturer of phenol and bisphenol A (BPA), plans to close its BPA plant in Pernis (Pernis, The Netherlands) in early October for scheduled maintenance. This 120 ktpa BPA production facility will be closed in the second week of October and is expected to resume production in three weeks.

Phenol is the main raw material for bisphenol A (BPA) production, which in turn is used to produce polycarbonate (PC).

According to MRC's ScanPlast, in Russia, following the results of the first two quarters, the total estimated consumption of PC granulate in the Russian Federation (excluding imports and exports to Belarus) amounted to 47.3 thousand tonnes against 40.7 thousand tonnes in 2019. Total demand increased by 16%.

Hexion Inc., formerly Momentive Specialty Chemicals Inc., is a chemical company based in Columbus, Ohio. It manufactures thermosetting resins and related technologies and specialty products. Hexion has two divisions: the epoxy, phenolic and coating resins division and the forest products division.
MRC

MOSCOW (MRC) -- Johnson Matthey (JM), the global leader in sustainable technologies with expertise in design and licensing of large-scale methanol plants, is pleased to announce another successful license award, said the company.

JM has been selected by China’s Ningxia Baofeng Energy Group as licensor for the third methanol synthesis plant at their coal to olefins complex near Yinchuan in Ningxia Province PRC. With a planned capacity of 7200 mtpd, the methanol plant will be the largest single train methanol plant in the world once completed.

Under the agreement Johnson Matthey will be the licensor and supplier of associated engineering, technical review, commissioning assistance, catalyst and equipment supply. The JM methanol plant will take synthesis gas as a feed and utilise JM radial steam raising converters in a patented Series Loop. Together with JM catalysts, to produce stabilized methanol as a product that is used to produce olefins downstream. The plant will provide enhanced energy efficiency along with low OPEX, CAPEX and emissions.

Upon startup, this will represent JM’s 8th operating license in China with a plant capacity greater than 5500 mtpd. It is the third JM methanol design licensed by Ningxia Baofeng Energy. This award follows the recent successful commissioning of the 6600 mtpd Baofeng methanol synthesis unit in May 2020 and the original 4450 mtpd methanol synthesis unit, which was commissioned in 2014. It demonstrates Baofeng’s recognition of JM’s technical leadership in this key growth market and is a testament to Johnson Matthey’s commitment and dedication to the delivery of large-scale methanol production.

“We are very proud of our ongoing collaboration with Ningxia Baofeng Energy. It is testament to their confidence in JM’s engineering expertise and ability to successfully design and help deliver their large-scale methanol plants”, said John Gordon, Managing Director for Johnson Matthey, “In just over six years it has been exciting to see our strong partnership result in the commissioning of two large scale plants with increasing volumes and a third world-scale plant on the way. We are very much looking forward to this next ambitious phase of our journey and continuing to raise the bar of world-class project delivery."

As MRC wrote previously, in June 2019, Johnson Matthey (JM) announced that Ningxia Baofeng Energy Group had "successfully" commissioned a new methanol plant at Ningxia Baofeng's 600,000-t/y coal-to-olefins complex in Ningxia Province, China. The 6,600-t/d methanol unit, based on technology from JM, utilizes syngas feedstock and combines advanced JM catalysts to produce stabilized methanol, which is used to produce olefins in a downstream facility.

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