Celanese raises September VAM prices in Asia

MOSCOW (MRC) -- Celanese Corporation, a global specialty materials company, has 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.

The price increase is effective for orders shipped on or after 2 September, 2020, or as contracts otherwise allow, and is incremental to any previously announced increases.

Thus, September VAM prices rose by USD100/mt - for AOC.

As MRC reported earlier, Celanese last raised its VAM prices for this region on 8 July, 2020. The price increase was USD50/mt.

According to MRC's DataScope report, June EVA imports to Russia fell by 22,5% year on year to 2,940 tonnes from 3,800 tonnes a year earlier, and overall imports of this grade of ethylene copolymer into the Russian Federation dropped in January-June 2020 by 8,16% year on year to 17,440 tonnes (18,980 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.
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Crude oil futures mixed on protracted demand concerns

MOSCOW (MRC) -- Crude oil futures were mixed in mid-morning trade Sept. 8 as market participants assess the supply-demand fundamentals within the global crude complex even as lingering demand concerns continue to weigh heavily on market sentiment, said S&P Global.

At 10:42 am Singapore time (0242 GMT), ICE Brent November crude futures were up 3 cents/b (0.07%) from the Sept. 7 settle at USD42.04/b, while the NYMEX October light sweet crude contract was down by 67 cents/b (1.68%) at USD39.10/b.

"Crude is taking its time to find a bottom. There are no factors on the horizon to spur a sharp rebound from the past two weeks of losses, hence the cautious inching up of Brent. WTI is simply catching up with Brent's slide on Monday [Sept. 7], when the US market was closed for trading," Vandana Hari, founder and CEO of oil consultancy firm, Vanda Insights told S&P Global Platts Sept. 8.

Meanwhile, the high inventories and weak refining margins for oil products are also encouraging US refineries to extend their scheduled maintenance at the end of the US driving season, which will further reduce refinery runs and crude demand in the near term. Elsewhere, the cut in Saudi Aramco's official selling price for most grades of its crudes into the US and Asia for October suggests that demand recovery remains weaker than anticipated in these markets. In Asia, the differential for Arab Light was cut by USD1.40/b to a discount of 50 cents/b against Oman/Dubai, Platts earlier reported.

"This is the first time since June that the Saudis have set this OSP at a discount to the Oman/Dubai benchmark. Clearly this suggests that the market is not tightening as quickly as many had anticipated, with supply edging higher, and with demand clearly faltering," ING analysts said in a Sept. 8 note. However, the cuts were reportedly within market expectations, as Asian refineries continue to struggle with a slow recovery in cracking margins, with some said to maintain lower than optimum run rates.

"Oil market participants, like their cross-asset colleagues, are gradually beginning to reassess the carnage. And while short term downside risks always remain, the longer-term trend still points higher for oil prices, which should offer a modicum of support at current levels," Stephen Innes, chief global markets strategist at AxiCorp, said in a note Sept. 8. Market participants will look to fresh cues from the inventory reports by the American Petroleum Institute and the US Energy Information Administration on Sept. 9 and 10, respectively.

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

NSRP to shut PP plant in Vietnam for maintenance

MOSCOW (MRC) -- Nghi Son Refinery & Petrochemical (NSRP) is planning a major overhaul at its polypropylene (PP) unit in Vietnam in June 2021, reported CommoPlast.

The production capacity of the company's PP line is 370,000 tons/year.

And the entire complex will be shut in 2023 for maintenance.

As MRC informed earlier, NSRP has been facing a persistent technical issue that forces the company to take its PP unit in Vietnam off-stream for a week starting 7 September for repair. This line was operating at reduced rates over the past couple of weeks before the shutdown.

We remind that 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 also 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 maintenance at this unit from 22 October, 2019, to end-November, 2019.

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

Braskem starts commercial production at new Texas PP plant

MOSCOW (MRC) -- Brazilian petrochemical producer Braskem's 450,000 mt/year polypropylene (PP) plant in LaPorte, Texas, along the Houston Ship Channel completed its initial commercial production, reported S&P Global with reference to the company's statement as of Sept. 10.

"The launch of commercial production at our new world-class polypropylene production line in La Porte clearly affirms Braskem's position as the North American polypropylene market leader," Braskem America CEO Mark Nikolich said in a statement.

With a USD750 million investment, the new PP plant's construction started in October 2017 and was completed in June, 2020.

Braskem had expected the plant to start-up in July but widened that target to encompass the entire third quarter.

The unit is able to produce homopolymer, impact copolymer, and random copolymers.

On June 1, Braskem announced it would establish an export hub in Charleston, South Carolina, with packaging and warehouse provider Frontier Logistics, that is set to open in the third quarter of this year as well.

The Global Export Hub is expected to export shipments of up to 204,000 mt/year of PP and specialty polymers.

Braskem operates five other US PP plants in Texas, Pennsylvania, and West Virginia, with a cumulative capacity of 1.57 million mt/year that the company acquired. The new plant in La Porte, Texas, is Braskem America's first PP new build.

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.

Braskem S.A. produces petrochemicals and generates electricity. The Company produces ethylene, propylene, benzene, toluene, xylenes, butadiene, butene, isoprene, dicyclopentediene, MTBE, caprolactam, ammonium sulfate, cyclohexene, polyethylene theraphtalat, polyethylene, and polyvinyl chloride (PVC).
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DuPont sells trichlorosilanes, Hemlock stake for USD725 million

MOSCOW (MRC) -- DuPont says it has divested its trichlorosilane (TCS) business as well as its stake in the Hemlock Semiconductor joint venture to Hemlock for USD725 million, said Chemweek.

The deal has received regulatory approval and was closed at signing. DuPont received pre-tax cash proceeds of USD550 million at closing and expects to receive additional pre-tax cash consideration of USD175 million over the next 36 months from the settlement of an existing supply agreement dispute with Hemlock.

Based in Midland, Michigan, the TCS business supplies the key raw material to Hemlock Semiconductor (Saginaw County, Michigan) to use as raw material to manufacture high-purity polysilicon and other industrial chemicals for the semiconductor and solar panel industries.

"This transaction is consistent with our commitment to refine our portfolio and sharpen our focus on growth opportunities where DuPont’s unique innovation capabilities can create greater shareholder value,” says Ed Breen, DuPont executive chairman and CEO. “We have a defined strategy of active portfolio management to further align the company’s resources to deliver higher margins and returns, aligned with our disciplined approach to capital allocation."

Ownership structure before the deal was 40.25% Corning, 40.25% DuPont and 19.5% Shin-Etsu. Updated terms were not immediately available.

As MRC informed earlier, DuPont has launched “Operation Airbridge,” with the US Department of Health and Human Services (DHHS) and FedEx to speed production and delivery of medical garments made from DuPont’s Tyvek material. Operation Airbridge will enable expedited shipping of Tyvek garments critical to coronavirus disease 2019 (COVID-19) relief via air, instead of sea. FedEx Express will transport Tyvek roll goods from DuPont’s Richmond, Virginia, production plant to garment manufacturers in Vietnam. They will then return to the US with finished Tyvek garments to be added to the US Strategic National Stockpile.

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.
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