PVC production in Russia remained in Jan-Aug at the level of last year

MOSCOW (MRC) -- Overall production of polyvinyl chloride (PVC) reached 632,500 tonnes in the first seven months of 2020, which in fact corresponded to the last year's figure. Two producers managed to increase their PVC output, according to MRC's ScanPlast report.

August production of unmixed PVC grew to 75,500 tonnes from 47,700 tonnes a month earlier, a month earlier, the low figures in July were due to the planned shutdown at SayanskKhimPlast and RusVinyl. Overall output of polymer were 632?500 tonnes in the first eight months of 2020 from 631,100 tonnes a year earlier, only two producers increased their production volumes, and cut RusVinyl PVC production.

The structure of PVC production by plants looked the following way over the stated period.

RusVinyl (JV of SIBUR and SolVin) produced about 26,100 tonnes of PVC in August, with emulsion polyvinyl chloride (EPVC) accounting for 2,000 tonnes, compared to 19,200 tonnes a month earlier. RusVinyl shut its PVC production capacities for a scheduled maintenance works on 14 July. RusVinyl's overall SPVC output reached 216,100 tonnes in the first eught months of 2020, compared to 226,400 tonnes a year earlier.

SayanskKhimPlast produced less than 20,500 tonnes of suspension PVC (SPVC) in August, whereas this figure was about 4,000 tonnes in July.
SayanskKhimPlast shut its PVC production capacities for a scheduled maintenance works on 8 July. The Sayansk plant managed to produce about 184,900 tonnes of PVC in January-August, compared to 184,900 tonnes a year earlier.

Bashkir Soda Company (BSK) reduced the capacity utilisation in August, the final production figure exceeded 21,800 tonnes against 23,600 tonnes a month earlier. The Baskhir plant's overall production of PVC reached 176,100 tonnes in January-August 2020, up 4% year on year.

Kaustik Volgograd' PVC production was 7,100 tonnes in August versus 7,200 tonnes in July. The plant's overall production of PVC exceeded 50,800 tonnes in the first eight months of 2020 versus 50,700 tonnes a year earlier.

MRC

MOSCOW (MRC) -- Momentive invests in electronic materials production at Waterford, New York, said Chemweek.

Momentive Performance Materials announced on Wednesday that it will invest USD15 million to expand electronic materials production at its Waterford, New York facility. There is growing demand across aerospace, 5G telecom, automotive electronics, and other markets for the company's products. This immediate investment will drive enhanced assets and capabilities that will be operational in 2021 in Waterford and is part of a larger USD40 million investment globally to drive electronic materials growth.

"This investment is a key milestone in our global leadership in silicone innovation," said Sandip Tyagi, President and General Manager of Momentive's Formulated Specialties business. "Customer needs are constantly changing with the rapid advancement of electric vehicles and autonomous driving, cutting-edge innovations in aerospace, new-product approaches in health and wellness, and continued expansion of telecommunications. Our continued investment ensures we are able to stay at the forefront of these innovations and support our customers in developing the next generation of products."

"Major components of this investment will include new production, packaging, labeling, testing, and shipping capabilities. Once these investments are operational, Momentive will be even better equipped to meet customized needs, where required, for unique processes and capabilities. These include low out-gassing, high thermal and electrical conductivity, high strength, high temperature stability and adhesion to special substrates," said Mark Fraser, Global Business Leader for the Electronics business.

As MRC informed earlier, Momentive Performance Materials Inc. (Waterford, N.Y.) outlined a series of steps to accelerate its global transition from commodity basics chemicals to specialty silicones – actions that will focus the company’s strengths and expertise on advanced technologies.

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) -- Crude oil futures were lower in mid-morning trade in Asia Sept. 9 as the global crude complex continued to grapple with a weak demand outlook at the end of the US driving season and a rise in COVID-19 infections worldwide, reporte S&P Global.

At 10:46 am Singapore time (0246 GMT), ICE Brent November crude futures were down 20 cents/b (0.50%) from the Sept. 8 settle at USD39.58/b, while the NYMEX October light sweet crude contract was 24 cents/b (0.65%) lower at USD36.52/b.

"Downward pressure on oil has continued, with ICE Brent futures closing more than 5% lower yesterday, and crucially below the $40/b level. There was no clear catalyst for the move, however a stronger US dollar and weaker equities would have done little to help sentiment, not just for oil, but the broader commodities complex," ING analysts said in a note Sept. 9.

The global crude complex has retreated in recent days as a multitude of negative factors weighed heavily on market sentiment. These include the end of the US driving season and the start of the extended maintenance season for US refineries, which will see a tapering of demand for gasoline and crude, as well as slower buying by China in August as its stocks approach maximum storage capacity.

Combined with a stronger dollar and weaker risk sentiment, which further dented demand across the commodities complex, ICE Brent futures have fallen 13.7% in two weeks since settling at USD45.86/b Aug. 25, a two-week high, while WTI has fallen 15.8% since settling at USD43.39/b on Aug. 26, S&P Global Platts data showed.

As a result, front-month inter-month timespreads for ICE Brent futures have turned significantly more bearish, with the November/December timespread assessed at minus 55 cents/b Sept. 8, Platts data showed.

"Timespreads continue to edge deeper into contango, while the physical market is weaker; over the last few days we have had both Aramco from Saudi Arabia and Abu Dhabi National Oil Company, or ADNOC, from the UAE cutting official selling prices for their crude oil. Both of their flagship grades are now at discounts to their benchmark, which is not a great signal for demand," ING analysts said in a note Sept. 9.

ADNOC set the October OSP for its flagship Murban crude at Platts Dubai minus 50 cents/b, down USD1.35/b from September, and medium sour Upper Zakum grade at a discount of 70 cents/b against Platts Dubai, down USD1.35/b, Platts earlier reported.

Meanwhile, global COVID-19 infections continue to rise to more than 200,000 infections/day, while global deaths approach the 900,000 mark, latest John Hopkins University data showed.

Market participants were awaiting the release of weekly US inventory reports by the American Petroleum Institute later Sept. 9 and the Energy Information Administration on Sept. 10 for fresh cues on price direction.

At 10:46 am Singapore time (0246 GMT), the US dollar index stood at 93.510, up 0.07% from the previous close at 93.441, while the NYMEX October RBOB stood at USD1.0985, down 0.39% from its previous settle at USD1.1028/gal.

As MRC informed before, Abu Dhabi National Oil Co, the UAE's biggest energy producer, and Abu Dhabi conglomerate ADQ will set up an investment platform to fund local chemicals projects amid a push to invest USD45 billion in downstream activities. The joint venture will oversee the development of projects in the planned Ruwais Derivatives Park, which is part of the Ruwais industrial hub in the emirate of Abu Dhabi, ADNOC said in its statement in late July. The venture will allow ADNOC to further its aims to boost operations in petrochemicals and other downstream lines. It didn't disclose funds being made available.

We remind that in early May, 2020, ADNOC began a gradual restart of its Ruwais oil refinery complex after a scheduled maintenance shutdown. The Ruwais complex, which has capacity of 835,000 barrels per day, was shut down early this year, the ADNOC spokesman said.

And in late July 2019, ADNOC said its Ruwais refinery west cracker was offline for maintenance.

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) -- Nghi Son Refinery & Petrochemical (NSRP) has been facing a persistent technical issue that forces the company to take its polypropylene (PP) unit in Vietnam off-stream for a week starting 7 September for repair, reported CommoPlast.

The 370,000 tons/year PP line was operating at reduced rates over the past couple of weeks before the shutdown.

As MRC wrote previously, in late June, 2020, NSRP was operating its PP plant in Vietnam at about 70% capacity following a change in the catalyst used in the production processes. The unit restored the normal rates in ten days.

We remind that NSRP shut its PP unit on 21 June, 2019, owing to technical issues. The exact duration of the shutdown could not be ascertained. Besides, the company conducted a scheduled maitenance at this unit from 22 October, 2019, to end-November, 2019.

We also remind that Vietnam’s Nghi Son oil refinery officially began commercial production from 14 November 2018, following months of tests. The USD9 billion refinery is 35.1 percent owned by Japan’s Idemitsu Kosan Co, 35.1 percent by Kuwait Petroleum, 25.1 percent by PetroVietnam and 4.7 percent by Mitsui Chemicals Inc.

According to MRC's ScanPlast report, overall PP production in Russia increased in January-July 2020 by 24% year on year to 1,063,700 tonne. ZapSibNeftekhim accounted for the main increase in the output.
MRC

MOSCOW (MRC) -- Addressing the plastics waste crisis and achieving the circular economy in the European Union through recycling will require new technologies and significant collaboration and investment, say speakers at a waste management and recycling session during the IHS Markit PEPP 2020 Online: Annual Polyethylene-Polypropylene Chain Global Technology & Business Forum, currently underway, reported Chemweek.

Although advances have already been made thanks to technology innovation, investment in infrastructure, and sustainability-focused brands, many challenges remain, largely around aligning regulations, collection, sorting, logistics, conversion, downstream processing, and consumer acceptance to create an economically viable supply chain.

Martin Wiesweg, Executive Director Polymers EMEA, IHS Markit, believes that Europe’s target of recycling 50% of plastic packaging waste by 2025 will be a challenge for industry, but notes that it is attracting billions of dollars in investments. Currently, about half of Europe’s PE films - about 9 million tons of waste material from the packaging, agriculture, and commercial markets - is collected.

But, Wiesweg notes, yields are mixed. “Ag films often contain dirt, so they are high contaminated. Yields there are about 45%,” he says. “Household waste is similarly difficult, and it is very hard to differentiate between PE and PP films. There, about half is recycled.” Commercial waste fares better, with efficient collection and relatively “clean” materials. Yields there are above 80%. “Taken together, PE film yield efficiency is almost 70%, so about 1.8 million tons [of material] is returning to the market,” he says.

Wiesweg also noted that 2020 has been an “awful year” for recycling. “Virgin materials have been at extremely low prices and it is very hard for recycled materials to be competitive,” he says. Bottle-to-bottle polyethylene terephthalate (PET) recycling is supported by strong, recycled-content commitments from brand owners like Coca-Cola, who have remained steadfast to their targets even amid COVID-19, but flake PET for sheet markets “are seeing very difficult times.”

Looking ahead, the EU plastics tax, which comes into effect 1 January 2021 and adds an €0.8 per kilogram tax on nonrecycled plastic packaging waste, will change these economics. Actual imposition of the tax will vary by member country, Wiesweg adds. “We don’t see a single European solution.”

Mark Morgan, Vice President, Chemicals Consulting, IHS Markit, says the circular economy concept is at an “embryonic” stage, with promising technologies but uncertainty of how the supply chain will come together to make it a reality. He notes that chemical recycling - the processing of waste plastics into other chemical building blocks for plastics - has been successfully deployed at small scale. “These units are 20,000 m.t. per year, but if you compare that to the amount of naphtha you need for a typical cracker, it’s less than 1%,” he says. “In terms of economic impact, it’s very small, but it’s a start.”

If legislation gets aggressive and cracker operators find themselves facing a 10% cracking mandate, technology and supply chain will have to “step up,” Morgan says, adding that some chemical recycling technologies have the potential to be scaled to that level. “But it also begs the question - what about upstream? Logistics? How do we get the plastic waste out of homes and to a sorting center at such scale? I am also personally concerned about the fact that there has to be a viable business case for everyone in the chain - cracker operators, customers, logistics, sorters, they all have different business models. Scale and logistics together with the right technology will be required.”

Manica Ulcnik-Krump, head, Recycled Resource, at recycling services provider Interseroh (Cologne, Germany) discussed the challenges related to mechanical recycling of mixed plastics and downstream limitations. “Markets for recycled materials often require high quality and adjustments of properties with additives,” she notes. “It poses the question: Is it really possible to offer the market high-value materials from post-consumer waste?”

There is also a misconception that unlimited amounts of certain materials exist.

“There can be many different polyolefins in a waste steam. In Germany, we have well-established collection schemes collecting 2.5 million tons of light packaging waste [annually],” of which about 8% is polypropylene," Ulcnik-Krump says. “We also tend to have a lower yield because light packaging waste is very contaminated with organics.” In reality, only about 206,000 tons of recycled PP is available, she adds.

Brand owner expectations of recycled plastics is also “really far from what is possible to offer,” Ulcnik-Krump adds. “You will have different colors and qualities.” Brand owners often want white or transparent materials, but that is only available in very small quantities. “We are always asked about bright colors or transparent materials, and I have to be honest, we just don’t have it.” Also, recycled post-consumer waste can never be recycled into food-grade material because of EU legislation requiring 100% traceability.

When asked if a circular economy is possible in the EU, Ulcnik-Krump says the current targets are very ambitious. “There is no issue with the technology, it exists. The collection schemes exist, especially in Western Europe. The difficulty is the commercial aspect. The material needs to be collected, sorted, ground, washed and reprocessed. The cost of mechanically recycled plastics is not the cost of the material - it is the cost of the process. And with extremely low prices for virgin material, it is difficult to compete. But when the recycled material is good quality, sustainable companies are willing to pay.”

Jairo Paternina, Senior Consultant, Jenike & Johanson, Inc, a provider of powder and bulk solids handling, processing, and storage technology, also discussed the challenges for processors of mechanically recycled plastics, such as the existence of volatile organic compounds (VOCs). “If you are not operating well [and stripping VOCs], you will have high residuals going to extrusion, which can create safety risks and expose a company to noncompliance and environmental penalties.” Uniformity is also an issue. “If you shred, you have all sorts of particle sizes and interlocking problems,” Paternina says. “ It is difficult to design a good handling systems for non-uniform material, unlike virgin pellets. Significant issues with equipment handling these types of materials can cause big headaches and stop a plant from reaching nameplate design.”

As MRC informed before, in September 2019, six world's major petrochemical companies in Flanders, Belgium, North Rhine-Westphalia, Germany, and the Netherlands (Trilateral Region) announced the creation of a consortium to jointly investigate how naphtha or gas steam crackers could be operated using renewable electricity instead of fossil fuels. The Cracker of the Future consortium, which includes BASF, Borealis, BP, LyondellBasell, SABIC and Total, aims to produce base chemicals while also significantly reducing carbon emissions. The companies agreed to invest in R&D and knowledge sharing as they assess the possibility of transitioning their base chemical production to renewable electricity.

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