PE imports to Ukraine up by 2% in Jan-Aug 2020

MOSCOW (MRC) -- Polyethylene (PE) imports into the Ukrainian market rose in the first eight months of 2020 by 2% year on year to 182,300 tonnes. Imports of all PE grades increased, with linear low density polyethylene (LLDPE) being the exception, according to MRC's DataScope report.

Last month's PE imports to Ukraine were slightly less than 23,800 tonnes, compared to 23,100 tonnes in July, local companies reduced their purchases of high density polyethylene (HDPE) because of higher prices in foreign markets. Thus, overall PE imports reached 182,300 tonnes in January-August 2020, compared to 178,400 tonnes a year earlier. Imports of all grades of ethylene polymers increased, with LLDPE, demand for which subsided in all consumption sectors, being the only exception.

The supply structure by PE grades looked the following way over the stated period.

Last month's HDPE imports reached 5,600 tonnes versus 6,600 tonnes in July, Ukrainian companies reduced their PE purchases because of high prices in foreign markets and weaker demand. Overall HDPE imports exceeded 66,500 tonnes in the eight months of 2020 versus 63,800 tonnes a year earlier.

August imports of low density polyethylene (LDPE) were slightly over 7,300 tonnes versus 7,900 tonnes a month earlier, producers from Azerbaijan and Russia reduced their export sales. Overall LDPE imports reached 54,500 tonnes over the stated period, compared to 52,200 tonnes a year earlier.

Last month's imports of linear low density polyethylene (LLDPE) were about 8,300 tonnes, compared to 7,100 tonnes in June, shipments of film grade LLDPE increased. Overall LLDPE imports reached 51,900 tonnes in January-August 2020, compared to 54,000 tonnes a year earlier.

Imports of other PE grades, including ethylene-vinyl-acetate (EVA), totalled about 9,400 tonnes over the stated period, compared to 8,400 tonnes a year earlier.

MRC

MOSCOW (MRC) -- South Korea's Lotte Chemical plans to restart its No. 3 160,000 mt/year monoethylene glycol (MEG) plant in Yeosu in end September, reported S&P Global with reference to a company source.

Meanwhile, the company's No. 1 and No. 2 MEG plants at the site, each with 120,000 mt/year capacity, are running at 90%-100% capacity in September, a company source added.

The No. 3 plant was halted for maintenance in end May.

As MRC informed earlier, Lotte Chemical's second-quarter net profit fell 88.7 percent from a year earlier due to low demand amid the coronavirus pandemic. For the April-June period, Lotte Chemical posted a net profit of 30.6 billion won (USD25.8 million), compared with a profit of 271.2 billion won a year earlier, the company said in a regulatory filing.

MEG is one of the main feedstocks for the production of polyethylene terephthalate (PET).

According to MRC's ScanPlast report, Russia's estimated PET consumption totalled 367,720 tonnes in the first six months of 2020, up by 19% year on year. Russian companies processed 62,910 tonnes in June.
MRC

MOSCOW (MRC) -- Ukraine's polypropylene (PP) imports totalled about 88,800 tonnes in January-August of this year, down 1% year on year.
All PP grades accounted for the decrease in shipments, according to a MRC's DataScope report.

August PP imports into the country fell to 13,300 tonnes from 14,400 tonnes a month earlier, the main decrease in imports were seen in the shipments of homopolymer PP. Overall imports of propylene polymers reached 88,800 tonnes in January-August 2020, compared to 90,100 tonnes a year earlier. Demand for all grades of propylene polymers decreased, but propylene block copolymers (PP block copolymers) accounted for the largest reduction.

The structure of PP imports by grades looked the following way over the stated period.
August imports of homopolymer PP to the Ukrainian market decreased to 9,200 tonnes from 11,100 tonnes a month earlier, local companies reduced their purchasing of PP in Azerbaijan, Russia and Saudi Arabia. Total homopolymer PP imports were 68,300 tonnes in January-August, compared to 69,300 tonnes a year earlier.

August imports of PP block copolymers into the country amounted to about 1,900 tonnes compared to 1,400 tonnes in July, local companies reduced the volume of purchases of injection moulding polypropylene. Over the reporting period, about 8,800 tonnes of propylene block copolymers were imported against 9,100 tonnes for the same period in 2019.


August PP random copolymers imports increased to 1,900 tonnes from 1,700 tonnes a month earlier, local companies raised their purchasing of pipe PP random copolymers. Overall PP random copolymers imports reached 10,200 tonnes in January-August 2020, compared to 10,600 tonnes a year earlier.

Ukraine's imports of other propylene copolymers for the period were about 1,400 tonnes in the first eight months of the year.

MRC

MOSCOW (MRC) -- Sinopec Zhongke Refinery and Petrochemical has started selling on-spec polypropylene (PP) materials in the open market with limited quantity from its new plant in China, reported S&P Global with reference to sources.

Thus, first lots of commercial material enterd the market in early September, 2020.

The company successfully completed the trial run at its newly constructed PP plant, consisting of two lines, and proceeded to commercial production within the month of August.

Thus, No. 1 PP unit with an annual capacity of 350,000 tons/year started producing commercial cargoes on 18 August 2020. The initial output might be homo-PP yarn before the company switches to PP fiber grades. And No. 2 PP line with nameplate capacity of 200,000 tons/year was scheduled to produce commercial cargoes on 24 August 2020, making homo-PP injection and high MI PP copolymer.

As MRC wrote previously, Sinopec Zhongke successfully conducted trial runs at its new 350,000 tons/year No. 1 PP unit on 9 June, 2020.

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.

China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group established in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec Group"s key business activities include the exploration and production of oil and natural gas, petrochemicals and other chemical products, oil refining.
MRC

MOSCOW (MRC) -- Celanese Corporation, a global specialty materials company, once again increased September list and off-list selling prices for Vinyl Acetate Monomer (VAM) sold in China, as per the company's press release.

The price increase is effective for orders shipped on or after 15 September, 2020, or as contracts otherwise allow, and is incremental to any previously announced increases.

Thus, September VAM prices rose for the Chinese region by RMB700/mt.

As MRC reported earlier, the company also raised its VAM prices for China on 2 September, 2020, by the same amount.

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.
MRC