Celanese raises September EVA prices in Americas

MOSCOW (MRC) -- Celanese Corporation, a global technology and specialty materials company, and a global leader in vinyl acetate ethylene (EVA) emulsions, has announced an increase in its September EVA prices in the Americas, as per the company's press release.

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

Thus, EVA prices rose, as follows:

- by USD0.05/lb - for the USA and Canada;
- by USD100/mt - for Mexico & South America.

As MRC reported earlier, Celanese also raised its September prices of EVA emulsions for the stated above regions, as follows:

- by USD0.03/lb - for the USA and Canada;
- by USD66/mt - for Mexico & South America.

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

MOSCOW (MRC) -- Oil prices settled sharply lower Sept. 21 as the market eyed rising Libyan production and the prospect of more demand-destroying lockdowns on the horizon in Europe, reported S&P Global.

NYMEX October WTI settled USD1.80/b lower at USD39.31/b and ICE November Brent finished trading down USD1.71 at USD41.44/b.

A resurgence of COVID-19 coronavirus cases in Europe raised the specter of a return to lockdowns, sending US equity prices sharply lower and adding additional weight to an energy complex already under pressure from the prospect of rising supply.

UK leaders are considering instituting new lockdown measures in the face of a steep rise in the number of new coronavirus infections, according to media reports. The move could herald a return to global lockdowns as the risks of a so-called second wave of infection increases with the onset of cooler weather in the northern hemisphere.

With global refined product appetite still on the back foot from the spring lockdowns, further restrictions on travel and trade are likely to weigh heavily on crude and product demand. US refined product demand was 15% below normal as of the week ended Sept. 11, according to US Energy Information Administration data.

NYMEX October RBOB settled down 5.95 cents at USD1.1771/gal and October ULSD was 5.17 cents lower on the day USD1.1073/gal.

Futures were already lower overnight after Libya's state-owned National Oil Corp. said Sept. 19 it had lifted force majeure on oil fields and ports, excluding facilities where militants are still present, a day after the Libyan National Army announced an end to an eight-month oil blockade.

Regional price differentials were little moved by the news. Platts Es Sider FOB Libya was assessed at a USD1.40/b discount to the Med Dtd strip, in from USD1.45/ on Sept, while the Platts Azeri Light CIF Augusta premium to the BTC Dtd strip edged down to 90 cents/b from 95 cents/b the session prior.

Analysts were mixed on the impact of the lifting of the Libya blockade, which could send up to 1.1 million b/d of crude to the market and potentially complicate the OPEC+ coalition's attempt at balancing an oil market still awash with oil.

"OPEC+ tentatively provided some relief that the oil market was heading toward balance, but rising output from Libya puts that at risk," OANDA senior market analyst Edward Moya said in a note.

But Goldman Sachs analysts, citing "significant uncertainty on the timing, magnitude and sustainability" of a restart, forecast Libya production to rise by just 400,000 b/d by December, and noted that any upside risk to the forecast is offset by downside supply risks from better OPEC+ compliance.

Meanwhile, offshore US Gulf of Mexico oil and gas production continued to recover Sept. 21 as Tropical Storm Beta was preparing to make landfall along the Texas coast, US Bureau of Safety and Environmental Enforcement data showed.

Less than 10% of the Gulf's oil and gas volumes remained offline on Sept. 21 from the effects of Hurricane Sally last week, with much of the production still offline coming from Shell's Perdido platform in the western Gulf that was shut in ahead of Beta.

As MRC wrote previously, Royal Dutch Shell Plc returned its 227,400 barrel-per-day (bpd) oil refinery at Norco, Louisiana, to normal operations on Monday. Shell returned the 240,000-bpd crude distillation unit (CDU) and 14,800-bpd alkylation unit to production as well as restarting the 40,000-bpd reformer.

We remind that in May 2020, CNOOC Oil & Petrochemicals Co. Ltd (CNOOC), Shell Nanhai B.V (Shell) and the Huizhou Government have announced a strategic cooperation agreement to further expand the CNOOC and Shell Petrochemical Company (CSPC) 50:50 joint venture in Huizhou, Guangdong Province, China. The expansion is planned to serve the growing number of intermediate and performance chemicals customers in the key market of China, supplying products including SMPO, polyols, ethylene glycol, polyethylene (PE) and polypropylene (PP). These chemicals are used in a wide range of end products, in healthcare, construction, fabrics, packaging, transport and electronics. For the first time in Asia, Shell would apply its advanced technology for linear alpha olefins. The project is intended to include construction of a new 1.5 million-tonnes-per-year ethylene cracker, with the mega-site bringing economies of scale and enhanced competitiveness.

Ethylene and propylene are feedstocks for the production of PE and 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) -- Sasol said Sept. 21 the new low density polyethylene (LDPE) plant, which had been slated to start up in early 2020 before it was damaged by fire during commissioning in January, did not sustain any significant storm impacts, reported S&P Global.

The company has resumed commissioning the plant, the last of the new units in the company's USD12.8 billion Lake Charles expansion, and expects to begin startup once power is fully restored at the site.

As MRC informed earlier, Sasol expects to restart crackers and downstream derivative units at its Lake Charles, Louisiana, complex by early- to mid-October once full load power is restored. "The Sasol Lake Charles site is currently partially energized," the company said.

Sasol added that it had finished damage assessments of all 14 manufacturing units and associated utilities and infrastructure at the complex, which was shut ahead of Hurricane Laura's Aug. 27 assault. Lake Charles took a direct hit from the Category 4 storm, which came ashore Aug. 27 packing 150 mph winds. Sasol said those assessments found moderate wind damage to cooling towers and some insulation and building damage, but no apparent damage to major process equipment, utilities and infrastructure.

Sasol's Lake Charles complex includes 1.5 million mt/year and 439,000 mt/year crackers; a 470,000 mt/year linear low density polyethylene plant (LLDPE); a 380,000 mt/year ethylene oxide/monoethylene glycol (MEG) unit; and a new 420,000 mt/year LDPE plant. The company issued a force majeure declaration on North American PE.

According to MRC's ScanPlast report, July estimated LDPE consumption in Russia decreased to 43,380 tonnes from 55,380 tonnes a month earlier. Angarsk Polymers Plant and Gazprom neftekhim Salavat cut thei shipments to the domestic market because of shutdowns for maintenance. Russia's estimated LDPE consumption grew to 335,000 tonnes in January-July 2020, up by 6% year on year. Despite the long outages, LDPE production increased, and imports also rose.

Sasol is an international integrated chemicals and energy company that leverages technologies and the expertise of our 31 270 people working in 32 countries. The company develops and commercialises technologies, and builds and operates world-scale facilities to produce a range of high-value product stream, including liquid fuels, petrochemicals and low-carbon electricity.
MRC

MOSCOW (MRC) -- Country's largest oil marketing company Indian Oil Corporation proposes to leverage its growing petrochemical operations to expand textile business as it looks to diversify operations and offset risks associated with oil operations, said Swarajyamag.

At a recent Asia Pacific oil summit IOC chairman S M Vaidya reportedly said that petrochemical expansion is being targeted by the company as it gives the company ability to de-risk from lower refining margins.

The chairman said that the petrochemical expansion would look into entering niche areas with a possibility of forward integration into textile business.

Petrochemical presents big opportunity in India as the per capita consumption still remains very low. This is expected pick up pace in coming years and IOC wants to capture most of emerging market.

IOC is expanding its petrochemical capacity by more than 70 per cent from its current 3.2 million tonnes a year. It is also on new technologies that reduces the cost of producing petrochemicals.

The project will add a 500,000 metric tons/year PP unit as well as a 235,000 metric tons/year lube oil base stock plant.

According to MRC's ScanPlast report, Russian plants' total PP production grew to 158,800 tonnes in July, compared to 149,400 tonnes a month earlier; ZapSibNeftekhim, Nizhnekamskneftekhim and Poliom increased their capacity utilisation. Russia"s overall PP production reached 1,063,700 tonnes in January-July 2020, compared to 854,500 tonnes a year earlier. Five out of eight producers raised their capacity utilisation, with a new producer - ZapSibNeftekhim - accounting for the main increase in the output.

Indian Oil Corporation Limited, or IndianOil, is an Indian state-owned oil and gas corporation with its headquarters in New Delhi, India.
MRC

MOSCOW (MRC) -- UK waste management company Biffa has partnered Nestle Waters UK to produce 100% recycled polyethylene terephthalate (R-PET) bottles for Nestle’s Buxton range of bottled water from 2021, the companies announced this week.

Nestle hopes that the partnership will enable it to significantly reduce the amount of virgin plastic in circulation and lead the shift to the use of high-quality food-grade rPET that has been recycled in the UK, rather than sourcing it from Europe.

Biffa has set a target to quadruple its plastic recycling by 2030, and the rPET supplied to Nestle Waters will come from the company’s new ?27.5m plastic recycling facility in Seaham, County Durham in the UK.

The plant has the capacity to process the equivalent of 1.3bn plastic bottles each year and will supply recycled material to Nestle Waters’ Buxton factory from 2021.

Michel Beneventi, managing director for Nestle Waters UK, said: “By working together through sharing expertise across our companies to advance PET recycling for circularity, I believe we can be a force for good, helping to create positive, long-lasting impact and change for the planet.

"Having access to a local rPET supply reduces the carbon footprint of producing, sourcing, and transporting our packaging from outside the UK and demonstrates the value that plastic drinks bottles have when they are recycled.

“Nestle Waters has ambitious commitments to sustainability, with a pledge for all its brands to be carbon neutral by 2025. This collaboration with Biffa is a big step towards helping us achieve that and making a circular system for plastics a reality."

Chris Hanlon, commercial manager at Biffa Polymers, added: “At Biffa, a key pillar of our sustainability strategy is to help build a circular economy in the UK, part of which is to help our customers develop sustainable packaging that can fit into the closed-loop recycling system that we are working to develop.

"The collaboration with Nestle Waters UK is a great example of this strategy in action, using recycled plastic to manufacture plastic bottles for resale. It demonstrates that when used correctly, plastic can have a sustainable role in modern life and we’re very much looking forward to working with Nestle Waters UK and helping it to achieve its recycling goals."

Many R-PET players in the UK and in mainland Europe are waiting to see the outcome of Brexit trade talks ahead of the 31 December 2020 deadline.

A no-deal Brexit may cause problems for R-PET entering the UK from mainland Europe if it is delayed at customs checks, which could have knock-on effects on availability from next year.

As MRC informed before, Nestle is to invest up to Swiss francs (Swfr) 2bn (USD2.1bn) to shift packaging production from virgin to recycled polymers over the next five years. The company is to source up to 2m tonnes of food-grade recycled plastics and has allocated Swfr1.5bn up to 2025 to pay a premium for those materials as part of a drive to create a viable market for those products. The company will seek operational efficiencies to keep the process revenue neutral.

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 of material in June.
MRC