Fire hits JG Summit petrochemical plant in Batangas City

MOSCOW (MRC) -- A fire struck the plant of the JG Summit Petrochemicals Group, a Gokongwei company, in Barangay Simlong in Batangas City on Saturday night, according to the Batangas City Fire Station, said Theworldnews.

It was the police that informed firefighters about the blaze, which started at around 10 p.m. One person was reported injured, according to Col. Rex Malimban, chief of the Batangas Police Provincial Office.

“The initial information we received was that used oil was ablaze," Malimban said in a phone interview around 11 p.m.

The amount of petrochemicals stocked in the facility was not immediately known, but Malimban said an initial report reaching his office said the fire had already reached the fourth alarm.

Malimban said several fire trucks from the Batangas Bureau of Fire Protection had been deployed, while other firefighting units at the regional office were put on stand by in case reinforcements would be needed. Here’s a video of the fire, courtesy of the Batangas Filipino Chinese Volunteer Fire Brigade.

JG Summit operates a cracker at the Batangas site as well as polypropylene (PP) and polyethylene (PE) units. JG Summit Olefins in the Philippines was targeting to bring on stream its additional ethylene and propylene supply in November this year.

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

DSM and Nedcam collaborate to add capacity and develop new applications for large-size 3D printing

MOSCOW (MRC) -- Dutch chemicals and materials company DSM has agreed another collaboration in 3D printing, coming after deal last week with US firm Nexa3D, said the company.

The latest collaboration is with Nedcam, which originated as a spinoff from the Marine Research Institute Netherlands. Under that deal, Nedcam will offer “Fused Granulate Fabrication” (FGF) 3D printing, using DSM materials. The partners will also explore new applications in tooling, large-size and circular end-use parts.

DSM believes that FGF is a critical technology to address the need for manufacturing structural and large-size components using highly filled polymers at competitive production lead times, it said. Nedcam, for its part, provides an important link between product development and market demand, and their printing activities would help accelerate the adoption of 3D printing, or additive manufacturing, DSM said. The companies also noted the potential for waste reduction.

Nedcam currently produces plugs and moulds from various materials, including glass fibre reinforced composites and steel - often for single or limited use, and resulting in “tonnes of waste every year". FGF production using DSM's recyclable materials offered a route to a more sustainable process, they said. "By combining DSM’s 3D printing and thermoplastics expertise with our production knowledge and production facilities, we want take the necessary steps toward a sustainable and fully circular model production process,” said Erwin van Maaren, co-founder and commercial director at Nedcam.

As MRC informed earlier, DSM formed a 50/50 joint venture (JV) with VDL Groep (Eindhoven, Netherlands), called Dutch PPE Solutions, to produce medical facemasks and establish the first permanent production of critical facemask components in the Netherlands. The companies are investing several million euros to purchase manufacturing equipment and build manufacturing facilities to produce meltblown polypropylene (PP), the critical material layer in medical facemasks that filters viruses, and make medical masks.

According to MRC's DataScope report, 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

Avient says business is recovering in third quarter

MOSCOW (MRC) -- Avient, formerly PolyOne, says market conditions have improved through the third quarter for most of the company, according to Chemweek.

“A number of end markets that were negatively impacted by the pandemic in the second quarter are recovering,” Avient says, adding that third-quarter revenue is expected to total about USD905 million. The company expects third-quarter adjusted earnings to total 43 cents/share, compared with 44 cents/share in the year-ago period.

“We are seeing a recovery in demand in the third quarter,” says Robert Patterson, chairman and CEO of Avient. “Most notably, our composites business is benefitting from increased demand for outdoor high performance applications.”

The company is also increasing its cost-reduction estimate from the acquisition of Clariant’s masterbatches business, which closed on 1 July. Avient now expects USD75 million/year in cost savings to result from the deal by 2023, compared with USD60 million/year previously forecast.

As MRC reported earlier, in December 2019, Clariant (Muttenz, Switzerland) agreed to sell its entire Masterbatches business to PolyOne Corp. (Avon Lake, Ohio). The transaction values the Masterbatches business at USD1,560 million, representing about 12.2 times the last twelve months reported EBITDA (ending September 2019) on a cash and debt free basis.

We remind that Russia's output of chemical products rose in August 2020 by 5% year on year. At the same time, production of basic chemicals increased year on year by 5.3% in the first eight months of 2020, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-July output.
MRC

Calgon Carbon to expand production of reactivated carbon in Belgium

MOSCOW (MRC) -- Calgon Carbon (Moon Township, Pennsylvania), a subsidiary of Kuraray, has decided to expand the production of reactivated carbon at Feluy, Belgium, said Chemweek.

The company intends to expand the capacity by 11,000 metric tons/year and the operations are due to start in the second half of 2022.

Reactivated carbon is activated carbon that was previously used, but subsequently reactivated. It is produced from materials such as bituminous coal and coconut shells. In recent years, the use of activated carbon has become increasingly widespread, particularly for applications related to the environment, including water and air purification.

In Europe, especially, demand for reactivated carbon is growing for industrial applications, such as gas emission treatment and wastewater purification, bolstered rising environmental awareness, including stricter environmental regulations, sustainable use of natural resources, and reduction of carbon dioxide emissions.

As MRC informed earlier, Kuraray Co., Ltd. announces its decision to modify the production item lineup of its meltblown nonwoven fabric production facility, which is located on the premises of the Okayama Factory, a facility run by nonwoven fabric production and sales subsidiary Kuraray Kuraflex Co., Ltd. that is currently undergoing expansion. This move will result in the production of face mask filters at said facility and is aimed at meeting surging demand for nonwoven fabrics for use as mask filters.

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

Oil steady as market eyes coronavirus hit to demand

MOSCOW (MRC) -- Oil prices were little changed on Friday but on track for a weekly fall on concerns that a global resurgence of COVID-19 infections will constrain fuel demand, while the likely return of exports from Libya will add to supply, reported Reuters.

Brent crude was down 2 cents at USD41.92 a barrel by 0113 GMT, while US West Texas Intermediate (WTI) crude was 3 cents firmer at USD40.34.

Brent is heading for a drop of nearly 3% this week, while U.S. crude is on track for a decline of almost 2%. Both benchmarks are also on track for a monthly decline, which would be the first for Brent in six months.

"The prospect of the return of Libyan barrels to the market is adding to the bearish sentiment," RBC Capital Markets said in a note. "However, we think the return of the barrels will be slow and subject to reversal based on the volatile security and political picture."

An oil tanker was loading a cargo on Thursday from one of three Libyan terminals that were reopened in recent days and more cargoes are expected to be lifted in the coming days.

Beyond that "crude prices will have difficulty rallying, on a structural basis, unless refining margins lead the path higher," RBC said.

In the United States, which has the highest death toll from the COVID-19 crisis and is the world's biggest oil consumer, unemployment claims unexpectedly rose last week suggesting an economic recovery is flailing and pushing down fuel demand.

US crude, gasoline and distillate inventories all fell last week, according to government data on Wednesday.

Still, US fuel demand remains in the doldrums as the pandemic constrains travel. The four-week average gasoline demand last week was 9% below a year earlier, government data showed earlier in the week.

In other parts of the world, daily increases of coronavirus infections are hitting records and new restrictions are being put in place that will likely limit demand for travel and fuel.

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