3M expects third-quarter sales 2.5-3.7% higher YOY

MOSCOW (MRC) -- 3M announced that August sales increased 2% year-on-year (YOY) despite one fewer business day, and said it expects third-quarter revenues to be 2.5-3.7% higher than the 2019 quarter, said Chemweek.

"While significant global economic uncertainty remains due to the COVID-19 pandemic, the company estimates, with one month left in the quarter, its sales to be in the range of USD8.2 to USD8.3 billion for the third-quarter," 3M says. The company reported sales of USD8.0 billion the third quarter of 2019.

Sales increased 23% in Health Care, 6% in Safety and Industrial, and 3% in Consumer, while Transportation and Electronics declined 11%. Organic local-currency sales increased 6% in Health Care, 5% in Safety and Industrial, and 2% in Consumer, while Transportation and Electronics declined 11%.

On a geographic basis, sales increased 7% in EMEA (Europe, Middle East and Africa) and 4% in the Americas, while Asia Pacific declined 2%. Organic local-currency sales were flat in both the Americas (including the US, up 1%) and EMEA, while Asia Pacific declined 5% (including China up 6% and Japan down 15%).

The company suspended its guidance due to uncertainty created by the COVID-19 pandemic, but has been reporting monthly revenue figures.

As MRC informed earlier, SIBUR and 3M have signed an agreement to cooperate in product development and polymer recycling at SIBUR’s PolyLab. Thanks to their durability, strength, eco-friendliness and other advantages, such polymers as polyethylene and polypropylene are some of the most widely used synthetic materials, popular with the construction, utilities, automotive, healthcare, food and other industries.

According to MRC's ScanPlast report, Russia's overall PE production totalled 1,712,400 tonnes in the first seven months of 2020, up by 58% year on year. Linear low density polyethylene (LLDPE) accounted for the greatest increase in the output. At the same time, 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) -- Russia and the US continue to clash over the future of the Nord Stream 2 gas pipeline, with Moscow hitting out at calls from Washington for the creation of a "coalition" of nations aimed at blocking completion of the project, said S&P Global.

A little over 150 km of Nord Stream 2 remains to be laid in Danish and German waters, but with the political debate becoming ever more frenzied, it remains unclear how and when the pipeline will be completed.

Nord Stream 2 would double the capacity of the gas corridor via the Baltic Sea to Germany to 110 Bcm/year and would reduce the need for Russia to use Ukraine as a transit country for gas supply to Europe.

On Sept. 24, Russia's foreign minister Sergei Lavrov slammed the hardening US opposition to the pipeline, saying Germany should ignore calls for the project to be halted. Those calls have followed the poisoning of Russian opposition politician Alexei Navalny on Aug. 20.

"I think the time has now come for us to calm down on this topic," Lavrov was quoted as saying by the Tass news agency. "This issue has now become a matter of honor for Germany," he said.

Opinion in Germany is divided, with Chancellor Angela Merkel thought to still be in favor of the project despite calls from across the the political spectrum for Nord Stream 2 to be halted following the Navalny incident.

But the US has intensified its efforts to bring down the project in recent weeks on top of measures already in place that threaten sanctions against companies laying Nord Stream 2 or helping the pipelaying process.

As MRC informed earlier, global oil refiners reeling from months of lackluster demand and an abundance of inventories are cutting fuel production into the autumn because the recovery in demand from the impact of coronavirus has stalled, according to executives, refinery workers, and industry analysts. Refiners cut output by as much as 35% in spring as coronavirus lockdowns destroyed the need for travel. As lockdowns eased, refiners increased output slowly through late August. But in top fuel consumers the United States and elsewhere, refiners have been decreasing rates for the last several weeks in response to increased inventories, a sustained lack of demand, and in response to natural disasters.

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

According to MRC's ScanPlast report, Russia's overall PE production totalled 1,712,400 tonnes in the first seven months of 2020, up by 58% year on year. Linear low density polyethylene (LLDPE) accounted for the greatest increase in the output. At the same time, 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) -- Chemical maker Tokuyama Corp. will set up a fifty-fifty joint venture in Taiwan with a local firm to manufacture high-purity isopropyl alcohol, expecting growing demand for the chip-cleaning solution in the expanding semiconductor market there, said Chemweek.

Formosa Tokuyama Advanced Chemicals Co. is scheduled to be established in Kaohsiung in October, with Formosa Plastics Corp. investing half of the capital NTD1 billion (USD34 million), the Tokyo-based company said.

The joint venture is expected to start manufacturing high-purity IPA in January 2022 for the local market, with a capacity of 30,000 tons per year, using the partner's propylene as a raw material, a Tokuyama official told NNA.

Tokuyama set up a local unit, Taiwan Tokuyama Corp., in 1996 to supply local chipmakers with its high-purity IPA, using near-complete products from Japan, while the new venture will have an integrated production system, procuring a raw material in Taiwan, according to the official.

As MRC informed earlier, Formosa Petrochemical Corp has slashed runs at its 540,000-bpd Mailiao oil refinery to about 68%, down from 80%, following last week’s shutdown of a secondary unit due to a fire.

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

According to MRC's ScanPlast report, Russia's overall PE production totalled 1,712,400 tonnes in the first seven months of 2020, up by 58% year on year. Linear low density polyethylene (LLDPE) accounted for the greatest increase in the output. At the same time, 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) -- Asian refining margins for jet fuel edged higher, but traders remained concerned the market for the aviation fuel would stay depressed for the remainder of the year due to lesser number of scheduled flights operating in the region, said Hydrocarbonprocessing.

Refining margins or cracks for jet fuel in Singapore were at a discount of 41 cents per barrel to Dubai crude during Asian trade on Tuesday, compared with minus 88 cents per barrel a day earlier.

The jet fuel cracks, which also determines the profitability of closely-related kerosene, might find some support once winter heating demand for kerosene picks up, trade sources said. "Asian jet markets will continue to struggle until the uptick in Northeast Asian kerosene heating demand kicks in later in the fourth quarter of 2020, as the rest of the region lags behind China," consultancy Energy Aspects said in a monthly note. "Chinese domestic flight numbers are higher year-on-year in September, meaning the country can provide little further support as regional supplies rise from present levels." Scheduled flights in China were down by 2.3% year-on-year in the week to Monday, compared with a 4.2% drop in the preceding week, data from aviation data firm OAG data showed.

Cash discounts for jet fuel were at USD1.17 a barrel to Singapore quotes on Tuesday, 4 cents lower from Monday. The regrade, which is the price spread between jet and gasoil, for October stood at a discount of USD2.62 a barrel on Tuesday, prompting refiners to continue blending jet fuel into the diesel pool.

India fuel exports - India's diesel exports rose 35.4% to 2.79 MM tonnes in August from 2.06 MM tonnes in July, government data showed on Monday. The August exports jumped about 18% year on year, the data showed. - The country exported about 140,000 tonnes of jet fuel in August, compared with 230,000 tonnes in July and 540,000 tonnes in August 2019, data showed.

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

According to MRC's ScanPlast report, Russia's overall PE production totalled 1,712,400 tonnes in the first seven months of 2020, up by 58% year on year. Linear low density polyethylene (LLDPE) accounted for the greatest increase in the output. At the same time, 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) -- Dow Inc has agreed to divest some of its U.S. Gulf Coast marine and terminal operations to a joint venture owned by Royal Vopak and BlackRock's Global Energy & Power Infrastructure Fund for USD620 million, said Hydrocarbonprocessing.

The deal with Vopak Industrial Infrastructure Americas includes marine and storage terminal operations and assets at Dow’s sites in Plaquemine and St. Charles, Louisiana, and Freeport, Texas, the company said. Dow expects the deal to close in the fourth quarter, following regulatory approvals from the United States and the European Union.

In July, Dow agreed to sell its rail infrastructure assets at six North American sites to transportation service firm Watco Companies LLC for about USD310 million. In its earnings report in July, Dow laid out cost-cutting plans to cope with the fallout of the coronavirus epidemic, adding that it was taking other actions to exit non-competitive assets.

The company also said it was evaluating its ownership of non-revenue generating assets across its global portfolio. Goldman Sachs acted as a financial advisor to Dow and Mayer Brown provided legal support.

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

According to MRC's ScanPlast report, Russia's overall PE production totalled 1,712,400 tonnes in the first seven months of 2020, up by 58% year on year. Linear low density polyethylene (LLDPE) accounted for the greatest increase in the output. At the same time, 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