COVID-19 - News digest as of 01.09.2020

1. Coronavirus pandemic shakes up supply fundamentals for US plastic recycling

MOSCOW (MRC) -- The US plastics recycling industry is struggling to regain its footing as the coronavirus pandemic upended its business model, potentially leaving many recyclers at risk of shutting down, reported S&P Global. When the pandemic prompted widespread shutdowns in late March and April, millions of workers left office buildings to work from home, cutting off sources of bulk supply of plastic bottles - made from polyethylene terephthalate (PET) - from businesses.

MRC

Angarsk Polymer Plant resumes PE production

MOSCOW (MRC) -- Angarsk Polymers Plant has resumed its low density polyethylene (LDPE) production after an unscheduled shutdown because of a technical issues at the ethylene unit, according to ICIS-MRC Price report.

The plant's customers said Angarsk Polymers Plant had brought on-stream its LDPE production by 28 August after the forced shutdown due to technical problems at its ethylene production. And the first shipments of polyethylene (PE) to customers began on 31 August. The outage lasted slightly over two weeks and began on 10 August The plant's annual production capacity is about 75,000 tonnes.

As reported earlier, Ufaorgsintez has begun a gradual shutdown for maintenance, which will last until 11 October, at its LDPE production capacities since 25 August. Tomskneftekhim (for two weeks from 2 September) and Kazanorgsintez (shutdown in two phases from 17 September to 13 October) will also shut down their production capacities for turnarounds.

Angarsk Polymer Plant (controlled by Rosneft through OOO Neft-Aktiv) is the only petrochemical full-cycle plant in Eastern Siberia. The bulk of the produced ethylene is used by the plant for the production of LDPE, styrene monomer (SM) and polystyrene (PS). Straight-run gasoline and hydrocarbon gases, mainly produced by OAO Angarskaya NHK, are the feedstocks for the plant.
MRC

Output of products from polymers in Russia up by 1.6% in Jan-Jul 2020

MOSCOW (MRC) -- Russia's output of products from polymers grew in July 2020 by 3.1% year on year under the pressure of seasonal factors. However, this figure increased by 1.6% year on year in the first seven months of 2020, reported MRC analysts.

According to the Russian Federal State Statistics Service, July production of unreinforced and non-combined films rose to 118,200 tonnes from 114,700 tonnes a month earlier. Output of films products grew in January-July 2020 by 9.1% year on year to 736,800 tonnes.

Last month's production of non-porous polymer boards, sheets and films exceeded 36,400 tonnes versus 36,200 tonnes in June. Thus, overall output of these products reached 233,100 tonnes over the stated period, up by 8.7% year on year.

July production of porous polymer boards, sheets and films was 30,900 tonnes, up by 10.1% month on month. Overall output of these products reached 166,000 tonnes in the first seven months of 2020, compared to 149,100 tonnes a year earlier.

July production of plastic bottles and flasks grew to 2 bln items from 1,8 bln items a month earlier. Overall output of these plastic products totalled 12,7 bln units over the stated period, compared to 12,2 bln units a year earlier.

Last month's production of polymer pipes, hoses and fittings was 68,400 tonnes versus 64,500 tonnes in June. Overall output of these products was 383,100 tonnes in January-July 2020, up by 11.7% year on year.

July production of sacks and bags from ethylene polymers reached 2,747 bln units, compared to 2,987 bln units a month earlier. Overall output of these plastic products totalled 17,404 bln units in the first seven months of 2020, compared to 14,347 bln units a year earlier.

Last month's production of linoleum and floor coverings was 16,4 mln square metres, compared to 15,4 mln square metres in June. Overall output of these products totalled 80,4 mln square metres over the stated period versus 83,1 mln square metres a year earlier.

July production of plastic windows and door blocks reached 2,749 mln square metres and 104,400 square metres, respectively, versus 2,391 mln square metres and 85,600 square metres a month earlier. Overall output of these plastic products totalled 14,001 mln square metres and 520,000 square metres, respectively, compared to 12,421 mln square metres and 522,400 square metres a year earlier.
MRC

Mitsubishi Chemical cracker in Kashima operates normally after turnaround

MOSCOW (MRC) -- Mitsubishi Chemical's naphtha cracker has being operating normally following a planned outage, according to Apic-online.

A Polymerupdate source in Japan informed that the company resumed operations at the cracker on July 7, 2020. The cracker was shut for maintenance on May 9, 2020.

Located at Kashima, Japan, the cracker has an ethylene production capacity of 540,000 mt/year and a propylene capacity of 270,000 mt/year.

As MRC reported previously, the company last started a two-month maintenance at this cracker in H1 May, 2018.

Ethylene and propylene are feedstocks for producing 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.

Mitsubishi Chemical with headquarters in Tokyo, Japan, is a diversified chemical company involved in petrochemicals, polymers, agrochemicals, speciality chemicals and pharmaceuticals. The company's main focus is on three business pillars: petrochemicals, performance and functional products, and health care.
MRC

FREP resumes production at No. 1 PP unit

MOSCOW (MRC) -- Fujian Refining & Petrochemical (FREP) has brought on-stream its No. 1 polypropylene (PP) unit, according to Apic-online.

A Polymerupdate source in China informed that the company resumed operations at the unit on August 20, 2020. The unit was shut for maintenance on July 1, 2020. Initially, the unit was to remain off-line for about one month. However, the company postponed its restart until further notice.

Located in Fujian province, China, the No.1 PP unit has a production capacity of 120,000 mt/year.

As MRC informed before, FREP undertook an unplanned shutdown at its No. 3 PP unit on June 1, 2020. The unit was to remain shut for about one week. Located in Fujian province, China, the No. 3 PP unit has a production capacity of 220,000 mt/year.

The company also operates No. 2 PP unit with the capacity of 360,000 mt/year at the same site.

According to MRC's DataScope report, 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.

FREP is a joint venture between Fujian Petrochemical Co. (50%), ExxonMobil China Petroleum and Petrochemical Co. (25%) and Saudi Aramco Sino Co. (25%). Fujian Petrochemical is a 50:50 JV between Sinopec and the Fujian provincial government.
MRC