Tomskneftekhim resumes PE and PP production

MOSCOW (MRC) -- Tomskneftekhim (subsidiary of SIBUR Holding) had resumed its low density polyethylene (LDPE) and polypropylene (PP) production after a scheduled turnaround, according to ICIS-MRC Price report.

The plant's customers said the Tomsk producer had resumed PP and polyethylene (PE) by Thursday, after the completion of the scheduled maintenance works. At the same time, LDPE production capacities have not yet reached 100% utilisation. The scheduled outage started on 2 September.

It should also be noted that shutdowns for maintenance at the other Russian LDPE and PP production capacities are still ongoing. Last week, Ufaorgsintez and Kazanorgsintez completely shut their LDPE production capacities for scheduled turnarounds.

The Ufa producer intends to resume operations at some of its LDPE production capacities by the beginning of next week, and a full resumption of production is planned only on 10 October. The plant's annual production capacity is 90,000 tonnes. Ufaorgsintez also took off-stream its PP production on 12 September, the outage will also last until 10 October.

The Kazan producer also intends to carry out maintenance works at its LDPE production capacities in two phases, and a full resumption of production after the turnaround is scheduled for 9 October. The plant's annual production capacity is 225,000 tonnes.

LLC "Tomskneftekhim" was opened after the transformation of TNHK in 2003. It is a subsidiary of PJSC SIBUR-Holding, which is one of the backbone enterprises of the Russian Federation. The size of Tomskneftekhim's authorized capital was Rb6.5 billion in 2019, sales revenue - Rb13.2 billion, net profit - Rb1.9 billion.
MRC

MOSCOW (MRC) -- Russia's output of products from polymers grew in August 2020 by 4.1% year on year. However, this figure increased by 1.9% year on year in the first eight months of 2020, reported MRC analysts.

According to the Russian Federal State Statistics Service, August production of unreinforced and non-combined films rose to 126,300 tonnes from 118,200 tonnes a month earlier. Output of films products grew in January-August 2020 by 8.3% year on year to 863,200 tonnes.
Last month's production of non-porous polymer boards, sheets and films exceeded 38,700 tonnes versus 36,400 tonnes in July. Thus, overall output of these products reached 271,900 tonnes over the stated period, up by 3.5% year on year.

August production of porous polymer boards, sheets and films was 31,700 tonnes, up by 4.3% month on month. Overall output of these products reached 197,800 tonnes in the first eight months of 2020, compared to 174,800 tonnes a year earlier.

August production of plastic bottles and flasks grew to 1.92 bln items from 2 bln items a month earlier. Overall output of these plastic products totalled 14,64 bln units over the stated period, compared to 13,82 bln units a year earlier.

Last month's production of polymer pipes, hoses and fittings was 71,800 tonnes versus 68,400 tonnes in July. Overall output of these products was 454,900 tonnes in January-August 2020, up by 6.5% year on year.

August production of sacks and bags from ethylene polymers reached 2,3431,000,000 units, compared to 2,747,000,000 units a month earlier. Overall output of these plastic products totalled 19,835 bln units in the first eight months of 2020, compared to 16,644 bln units a year earlier.

Last month's production of linoleum and floor coverings was 18,4 mln square metres, compared to 16,4 mln square metres in July. Overall output of these products totalled 98,8 mln square metres over the stated period versus 98 mln square metres a year earlier.

August production of plastic windows and door blocks reached 2,749 mln square metres and 104,800 square metres, respectively, versus 2,749 mln square metres and 104,400 square metres a month earlier. Overall output of these plastic products totalled 16,770,000 square metres and 624,400,000 square metres, respectively, compared to 15,171,000 square metres and 625,800 square metres a year earlier.
MRC

MOSCOW (MRC) -- Imports of suspension polyvinyl chloride (SPVC) into Russia totalled about 32,000 tonnes in the first eight months of 2020, down by 13% year on year. At the same time, exports rose by 3%, according to MRC's DataScope report.

Last month's SPVC imports to Russia dropped to 7,400 tonnes from 10,900 tonnes in July. The increased supply from domestic producers and high prices in foreign markets were the main reasons for lower imports. Thus, overall imports were 32,000 tonnes in January-August 2020, compared to 36,900 tonnes a year earlier, with resin from China and the United States accounting for the main decreased in imports.

At the same time, Russian producers managed to increase their exports, although producers traditionally reduce their export sales in the summer months.
Russian producers reduced their SPVC exports last month because of stronger demand from the domestic market. August exports of suspension did not exceed 7,000 tonnes, compared to 14,000 tonnes a month earlier. Thus, overall PVC exports totalled 139,900 tonnes in January-August 2020 versus 135,800 tonnes a year earlier.

MRC

MOSCOW (MRC) -- Brazilian Chief Justice Luiz Fux postponed voting on the sale of state-controlled oil company Petrobras' refineries without setting a new deadline. Initially, the Supreme Court had until Friday to rule on the matter, reported Reuters.

Three justices on Brazil's Supreme Court have voted against the sale of the refineries, in a setback for Petrobras, which is counting on asset sales to reduce its debt.

Despite these three votes against the privatizations, XP Inc's analyst Debora Santos said in a note to clients that the Supreme Court is likely to support the assets sale, adding that last year most justices had adopted a more flexible position regarding privatization of state-controlled companies' assets.

Preferred shares in Petrobras were up 0.8% in the morning trading, almost in line with the country's stock exchange index.

As MRC reported previously, Petrobras may need more than a year to divest its stake in Braskem, said Andrea Almeida, Petrobras CFO, in early July. She said during the companyпїЅs recent webinar that Petrobras plans to give more time for potential investors to make offers for the company"s assets, including for its refineries and stakes at its petrochemical and fuel distribution affiliates. The divestment of Petrobras"s stake in Braskem in 2020 would be desirable but "might not be possible" as the COVID-19 pandemic has changed market conditions, she said. The company plans to close part of its refinery sales in 2021. In December, Roberto Castello Branco, CEO of Petrobras, said that he wants to sell the companyпїЅs stake in Braskem within a year. Petrobras owns 32.15% of Braskem.

We remind that Braskem is no longer pursuing a petrochemical project, which would have included an ethane cracker, in West Virginia. And the company is seeking to sell the land that would have housed the cracker. The project, announced in 2013, had been on Braskem"s back burner for several years.

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.

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras" activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
MRC

MOSCOW (MRC) -- Oil futures recovered slightly during the mid-morning trade in Asia Sept. 22, after the prospect of renewed lockdowns amid a potential resurgence of the coronavirus pandemic drove futures down Sept. 21, reported S&P Global.

At 11:16 am Singapore time (0316 GMT), ICE Brent November crude futures were trading at USD41.54/b, up 10 cents/b (0.24%) from the Sept. 21 settle, while the NYMEX October light sweet crude contract was at USD39.57/b, up 26 cents/b (0.66%).

This uptick in crude futures comes after the November Brent and the October WTI plummeted USD1.71/b and 1.80/b to close at USD41.44/b and USD39.31/b, respectively, on Sept. 21, following fears of renewed lockdown restrictions during the winter months, when the coronavirus is expected to spread faster.

The prospect of fresh lockdown restrictions has hit the oil market hard, since such restrictions could hamper global economic recovery, and weigh down demand for crude oil, analysts said.

"Many oil traders are subscribing to the dominant macro narrative that as far as the oil price recovery is concerned, last week's top might be as good as it gets for a while when mapping oil prices tangentially to the rebound in economic activity," said Stephen Innes, Chief Global Markets Strategist at Axi, in a Sept. 22 note.

Concerns lingered over the lifting of the Libya blockade, which could send up to 1.1 million b/d of crude to an already oversupplied market, even as Goldman Sachs analysts forecast on Sept. 21 that Libyan production would rise by just 400,000 b/d by December due to "significant uncertainty on the timing, magnitude and sustainability" of a restart.

They added that any upside supply risk to the forecast is offset by downside supply risks from better OPEC+ compliance.

Innes also noted that OPEC+ compliance remains key to balancing supply and demand in the crude oil markets. "OPEC's call for laggards to fully comply with their quotas by year-end must be delivered to offset the Libyan increased production risks," he said.

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