China oil hub urges refiners to make payments to government risk fund

MOSCOW (MRC) -- The tax office in China’s Shandong province has urged refiners in the oil hub to make payments to a government risk reserve fund to cover periods when oil prices fell below USD40 a barrel this year, in line with government policy, said Hydrocarbonprocesing.

Global oil prices held below that level for more than three months and the payments due are estimated to be in the billions of yuan. Beijing set a policy in 2016 that required refiners to pay their profit margins to the central government fund whenever crude fell below USD40 a barrel, which is the floor price for retail gasoline and diesel.

If the payments are made, analysts say they would likely cut into the already narrowing margins of the mostly independently run plants and curb their appetite for crude imports for the rest of the year. “All companies that are registered in Shandong, but not including Qingdao city, and produce or process gasoline and diesel are obliged to make payment to the risk reserve fund,” the Shandong tax bureau said in a statement.

The central government has direct control of taxes in Qingdao. Companies that choose to pay quarterly will have to submit payments for the first two quarters before the end of October and those that opt for annual payments will have to complete the process by the end of February next year, it said.

The fund aims to improve fuel quality, help firms to reduce emission and ensure the national oil supply, but analysts worry the payments will put a short-term burden on refineries. "Refining margins have declined sharply since the third quarter due to tepid fuel demand. The fund collection is another pour of cold water," said Wang Yanting, Shandong-based analyst at consultancy JLC.

State refiner PetroChina said in August it would have to pay nearly 13 billion yuan (USD1.9 billion) to the government fund for the first half of 2020.

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.

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) -- Wacker Polymers is to raise prices for vinyl acetate-ethylene and ethylene-vinyl chloride-based copolymer dispersions of the VINNAPAS® and VINNOL® brands in North America, said the company.

As customer contracts allow, effective October 16, 2020, prices will be raised by up to 10 percent. This measure has been necessitated by the increase in logistic and raw material market costs.

The price adjustment enables Wacker Polymers to continue providing customers with a wide range of innovative quality products and comprehensive technical, sales and customer support services, along with supporting investment to secure the capability for future growth across our focus markets.

Dispersions of the VINNAPAS® and VINNOL® brand are applied in a broad variety of industries, ranging from adhesives, caulks, non-wovens, paints and coatings to paper, carpet and textiles.

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.

Wacker Polymers is a leading producer of state-of-the-art binders and polymeric additives based on polyvinyl acetate and vinyl acetate copolymers and terpolymers. These take the form of dispersible polymer powders, dispersions, solid resins, and solutions. They are used in construction chemicals, paints and surface coatings, adhesives, sealants, carpet applications and nonwovens, as well as in fiber composites and polymeric materials based on renewable resources. WACKER POLYMERS has production sites in Germany, China, South Korea and the USA, as well as a global sales network and technology centers in all major regions.
MRC

1. LyondellBasell targets 2 MMt/y of green polymers by 2030

MOSCOW (MRC) -- LyondellBasell, one of the largest plastics, chemicals and refining companies in the world, released its annual Sustainability Report with the aim of affecting positive change and is focused on three transformational areas including plastic waste, climate change, and thriving societies, said the company. LyondellBasell announced one of the most ambitious goals of the industry to produce and market two million metric tons of recycled and renewable-based polymers annually by 2030. The report showcases LyondellBasell's strategy and ambitions for the next decade.


MRC

MOSCOW (MRC) -- Sinopec Zhongyuan Petrochemical, has brought on-stream its cracker following a turnaround, said Apic-online.

A Polymerupdate source in China informed that, the company resumed operations at the cracker in mid-September, 2020. The cracker was shut for maintenance on August 1, 2020.

Located at Henan in China, the cracker has an ethylene capacity of 220,000 mt/year and propylene capacity of 95,000 mt/year.

Sinopec Zhongyuan Petrochemical also operates a 600 ktpa olefin from methanol plant, a 160 ktpa polypropylene (PP) plant and a 260 ktpa polyethylene (PE) plant at the same site. in year.

Propylene is the main raw material for the production of polypropylene (PP).

According to MRC's ScanPlast report, Russia's 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) -- Solvay has been awarded a new five-year material supply contract for Lockheed Martin’s F-35 aircraft. The new contract extends Solvay’s long-standing partnership on the F-35 program and underlines the company’s leadership in composite and adhesive technologies for military platforms, said the company.

"It is a privilege to be the principal supplier of structural composites and adhesives to Lockheed Martin multinational F-35 program," said Carmelo Lo Faro, President of Solvay Composite Materials Global Business Unit. "This contract extension builds not only on our F-35 program commitment, but also the partnership Solvay and Lockheed Martin have shared for more than 30 years and our ability to innovate together."

The F-35 is the U.S. Department of Defense's flagship program that is delivering an advanced, affordable 5th Generation multi-role fighter platform for the U.S. Air Force, Marine Corps, Navy; and international customers. It constitutes the largest global military program in history.

From its facilities in the U.S. and Europe, Solvay has so far supported the manufacturing and delivery of more than 550 aircraft now operating in nine countries. In meeting these challenging demands, Solvay supplies a unique and rich portfolio of more than 50 products to the F-35 program, including structural composites such as CYCOM® 5250-4, a bismaleimide (BMI) prepreg system known for performance-enhancing capability at high temperatures, and industry standard CYCOM® 977-3, a toughened epoxy resin prepreg system; structural adhesive FM® 300 and a lightning strike protection surfacing film FM 309-1.

The new contract with Lockheed Martin will be managed by Solvay and its U.S.-based subsidiary CDM, which operates under a special security agreement. The contract will formally commence on January 1, 2021.

As MRC reported earlier, in August, 2020, through the acquisition of the Solvay polyamide (PA) business, BASF enhanced its R&D capabilities in Asia Pacific with new technologies, technical expertise, and upgraded material and part testing services. BASF is planning to integrate the R&D centers from Solvay into its R&D existing facilities in Shanghai, China, and Seoul, Korea. The enhanced capabilities will boost BASF’s position as a solution provider to develop advanced material solutions for key industries.

We remind that BASF-YPC, a 50-50 joint venture of BASF and Sinopec, undertook a planned shutdown at its naphtha cracker on 30 April 2020. The company initially planned to start turnaround at the cracker on April 5, 2020. The plant remained under maintenance unitl 18 June, 2020. Located in Jiangsu, China, the cracker has an ethylene capacity of 750,000 mt/year and propylene capacity of 400,000 mt/year.

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

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, 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