Chinese PE producers run plants at around 80-90%

MOSCOW (MRC) -- Chinese polyethylene (PE) producers have been running plants at around 80-90%, and inventories were heard around 640,000 mt, stable in the first week of August, reported S&P Global with reference to source estimates.

Demand is described as mediocre in the market.

Global uncertainty still remains at a decade low PE price, while decline in global operating rates after a period of heavy investments could potentially be countered by capacity rationalization in high-cost production centers, sources said.

As MRC informed before, four large new crackers are poised to start operations in China in the next 3-6 months, in a sharp expansion of the country's petrochemical cracker sector.

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

Iran says OPEC has raised and stabilized crude oil price

MOSCOW (MRC) -- OPEC has managed to raise crude prices and stabilize the oil market, OPEC member Iran’s oil minister was quoted as saying by his ministry’s website SHANA, as per Reuters.

“OPEC’s performance has been successful because the price of oil has risen from $16 in May to around $45 and has stabilized,” Bijan Zanganeh said.

The Organization of the Petroleum Exporting Countries and allies including Russia, a group known as OPEC+, agreed record output cuts to tackle the fallout from the COVID-19 pandemic. Zanganeh said Iran’s oil industry has signed 13 contracts worth roughly 1.5 billion euros with 14 local firms to enhance and maintain the country’s oil production.

In 2018, U.S. President Donald Trump pulled the United States out of Iran’s 2015 nuclear deal with six powers and reimposed sanctions that have sharply cut Iran’s oil exports.

“We welcome the participation of all foreign companies in the development of oil industry projects except companies from Israel, but we will continue our work even without their participation in our projects,” Zanganeh said.

Fearing U.S. penalties, foreign companies have stayed away from investing in Iran. Tehran does not recognise Israel.

As MRC reported earlier, in late April, 2020, the first phase of Connell Chemical Industry Ltd.'s 600 KTA MTO complex, a 300 KTA MTO plant, successfully started up and produced on-spec ethylene and propylene. This project is the first large-size chemical project brought online during period when Chinais in the process of restarting the economy while fighting COVID-19 pandemic. The MTO plant started feed-in at 8:18 AM on April 15, produced on-spec propylene at 7:00 AM on April 18, and produced on-spec ethylene at 4:00 AM on April 20.

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

Canada-U.S. to extend non-essential border restrictions until Sept. 21

MOSCOW (MRC) -- Restrictions at the Canada-U.S. border are being extended another 30 days due to the COVID-19 pandemic, said Canplastics.

According to deputy Prime Minister Chrystia Freeland, restrictions at the Canada-U.S. border are being extended another 30 days due to the COVID-19 pandemic – the two countries will continue their mutual ban on non-essential cross-border trips until at least Sept. 21.

Ahead of the formal announcement, Public Safety Minister Bill Blair said in a tweet that officials would keep doing what’s necessary to keep communities safe. The Canada-U.S. border has been closed to so-called "discretionary" travel like vacations and shopping trips since the pandemic took hold of the continent in mid-March.

The agreement, which has been renewed before, was set to expire Aug. 21. The U.S. has been grappling with fresh COVID-19 outbreaks across the country in recent weeks.

As MRC informed earlier, Engineering and construction costs in North America fell in May, with lower prices expected to continue into the fourth quarter of 2020. The current headline IHS Markit PEG Engineering and Construction Cost Index (ECCI) registered 38.2 in May, a slight increase compared with last month’s figure of 34.9, but still “well below” the neutral mark of 50, which indicates falling prices, IHS Markit says. The materials and equipment portion of the index came in at 35.0, with the subcontractor portion at 45.7.

As MRC informed before, members of the European Parliament (MEPs) are proposing ways to step up green energy storage solutions such as hydrogen or home batteries, in a report that was adopted in one of the Parliament’s voting sessions on Friday, 10 July. The proposals outlined in the report are set to play a crucial role in reaching the goals of the Paris Agreement on Climate Change, as more efficient energy-storage options in the EU will help "spur decarbonization," the EU Parliament says. In addition, since solar and wind have a variable electricity output, more storage solutions should become available to secure supply, MEPs say.

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

Clariant and Jiangsu Jinneng partner in catalytic off-gas treatment

MOSCOW (MRC) -- Clariant and Jiangsu Jinneng’s collaboration in off-gas treatment is off to a strong start in 2020. Jiangsu Jinneng’s innovative catalytic combustion unit and Clariant’s highly effective EnviCat VOC catalyst have been in successful operation at the phthalic anhydride (PA) plant of Shandong Qilu Plasticizers Co. Ltd. since November 2019, according to Hydrocarbonprocessing.

The partners’ advanced emission control solution is used to purify production off-gas, which contains volatile organic compounds (VOCs) and carbon monoxide (CO). Located in Zibo, Shandong province, the plant already employs another Clariant product, the high-yield OxyMax PA 690 catalyst, to produce 70,000 metric tons of PA annually.

Kevin Chan, Head of Clariant Catalysts China, stated, “We are honored to serve Shandong Qilu Plasticizers with a tailor-made sustainable emission control solution, together with our technology partner, Jiangsu Jinneng. Thanks to the catalyst’s adaptable design, and Clariant’s sophisticated production capabilities, EnviCat VOC could be customized to Shandong Qilu Plasticizers’ precise process requirements to ensure optimum efficiency and performance.”

Clariant’s extensive experience in off-gas treatment catalysts has resulted in the development and widespread use of its high-performance EnviCat VOC. The catalyst is proven to effectively remove both VOCs and CO with an excellent conversion efficiency of up to 99% and beyond. It operates at up to 400 C lower temperatures compared to other off-gas purification methods, such as recuperative thermal oxidation. This greatly reduces fuel consumption and equipment stress, leading to potential significant economic, operational, and safety advantages.

A subsidiary of Chinese Bluesail Chemical Group, Shandong Qilu Plasticizers is the largest producer of industrial plasticizers, and one of the leading manufacturers of PA in China. It has also been one of the first companies in the industry to adopt sustainable catalytic off-gas treatment. Sun Chang Jun, General Manager at Shandong Qilu Plasticizers, expressed his satisfaction with the results, saying, “We are very pleased with Clariant and Jiangsu Jinneng’s solution. After a smooth start-up, the catalysts are performing with excellent efficiency, as promised. As sustainable operation is always our priority, this is an essential and optimal solution for our company. It enables us to successfully meet the latest emission regulations of China’s 13th Five-Year Plan.”

Jiangsu Jinneng Environmental Science and Technology is a certified high-tech enterprise with more than 20 years of experience and over 30 patents in VOC abatement technology. More than 30 Chinese and international chemical plants employ the company’s catalytic off-gas technology and equipment. Chen Min Dong, General Manager at Jiangsu Jinneng, commented on the partnership, “Jiangsu Jinneng and Clariant have collaborated in off-gas treatment in China for over 10 years. We strengthen each other’s advanced technologies to offer each plant operator the ideal solution for their company and the environment.”

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.

Phthalic anhydride is widely used in the production of paints and varnishes and plasticizers for polyvinyl chloride (PVC) products. It is used to a small extent in the production of industrial rubber goods and tires. In addition, it is used in the light, pharmaceutical and electrical industries.

According to MRC's ScanPlast report, Russia's overall PVC production reached 557,000 tonnes in the first seven months of 2020, up by 1% year on year. Only three Russian producers managed to increase their output.

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

Repsol to hold its Spanish refineries run rates at 77% for the full year

MOSCOW (MRC) -- Repsol expects its Spanish refineries to run at a utilization rate of 77% for the full year, reported S&P Global with reference to CEO Josu Jon Imaz' statement July 23.

This would mean a slight increase in the second half to around 78% after reporting rates of 70% in Q2 and 82% in Q1. The conversion rate for the full year is seen at 92%, which would mean a rate of around 93% in the second half after rates of 82% in Q2 and 100% in Q1.

The company previously said it was planning a turnaround at Puertollano before year-end while units at A Coruna and Bilbao are not reported to have returned since being taken offline during the COVID-19 state of alert.

The demand improvement along with emptying inventories mean a current margin level of USD2.80/b should increase toward USD3.80/b soon, Imaz said.

As MRC reported earlier, Repsol's refinery at Puertollano in central Spain will carry out an upgrade of its olefins unit. The modernization will be a part of planned maintenance of the cracker and chemical derivative plants at the end of 2020.

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.

Repsol S.A is an integrated Spanish oil and gas company with operations in 28 countries. The bulk of its assets are located in Spain.
MRC