PP imports in Russia grew by 19% in January-August

MOSCOW (MRC) -- Polypropylene (PP) imports into Russia grew by 19% year on year to 143,200 tonnes in the eight months of 2020.
Propylene homopolymer (homopolymer PP) accounted for the main increase in imports, according to MRC's DataScope report.

Russian companies significantly raised their purchasing of PP in foreign markets in August partially because of a major increase in demand, imports were 21,200 tonnes versus 17,200 tonnes a month earlier. Thus, overall PP imports into Russia reached 143,200 tonnes in January-August 2020, compared to 120,100 tonnes a year earlier.

Purchasing of all grades of propylene polymers in foreign markets increased, with homopolymer PP imports accounting for the most noticeable rise. Overall, the structure of PP imports by grades looked the following way over the stated period.

August imports of homopolymer PP were about 9,700 tonnes versus 8,200 tonnes a month earlier, shipments of injection moulding homopolymer PP from Uzbekistan increased. Thus, overall imports of homopolymer PP to Russia totalled 60,900 tonnes in the first eight months of 2020, compared to 38,200 tonnes a year earlier.

August imports of PP block copolymers in Russia were about 5,100 tonnes against 4,200 tonnes in July on decreased demand for pipe PP.
Imports of PP block copolymers into Russia reached 38,700 tonnes in January-August 2020, compared to 37,200 tonnes a year earlier.
August imports of statistical copolymers of propylene (PP random copolymer) grew to 4,000 tonnes from 2,100 tonnes a month earlier, the main increase in supplies accounted on pipe producers due to a shortage of domestic raw materials.

Total imports of propylene copolymers in Russia were 23,500 tonnes in January - August 2020, compared with 20,800 tonnes year on year.
Russia's imports of other polymers of propylene totalled about 20,200 tonnes in the first eight months of the year, compared to 23,900 tonnes a year earlier.

MRC

MOSCOW (MRC) - Ufaorgsintez (UOS, Bashneft’s petrochemical asset) has resumed operation of part of its low density polyethylene (LDPE) production facilities after stopping for scheduled maintenance works, according to ICIS-MRC Price Report.

The plant's customers said Ufaorgsintez had partly resumed its LDPE production after the long scheduled maintenance by 28 September. The outage of the second line of polyethylene facilities began on 25 August.

The first line of LDPE production facilities (108th polyethylene - PE) started scheduled maintenance from 12 September along with the production of polypropylene.

Ufaorgsintez's overall LDPE and PP production capacities are 90,000 and 120,000 tonnes per year, respectively.
It is also worth noting that the resumption of the work of the first line LDPE capacities and polypropylene production is planned from 10 October.

PJSC Ufaorgsintez produces phenol, acetone, synthetic ethylene-propylene rubber, high and low pressure polyethylene, polypropylene, more than 30 types of petrochemical products and over 25 consumer products.
MRC

MOSCOW (MRC) -- Fuel ethanol production capacity in the United States totaled 17.3 billion gallons per year (gal/y), or 1.1 MM barrels per day (MMbpd), as of January 2020, according Hydrocarbonprocessing.

Nameplate capacity of operable ethanol plants increased by 3%—470 MM gal/y—between January 2019 and January 2020. The annual U.S. Fuel Ethanol Plant Production Capacity Report shows EIA’s most up-to-date data of U.S. fuel ethanol industry capacity by plant. EIA uses industry trade journals to track fuel ethanol market conditions. To ensure the quality of its data, EIA staff contacts plants that report production capacities to EIA that are inconsistent with those published in other sources.

Most U.S. fuel ethanol production capacity is located in the Midwest region (Petroleum Administration for Defense District, or PADD, 2). Total nameplate capacity in the Midwest totaled 15.9 billion gal/y (1.0 MMbpd) at the beginning of 2020, an increase of 3% between January 2019 and January 2020. Of the top 13 fuel ethanol-producing states, 12 are located in the Midwest. The three states with the most ethanol production capacity—Iowa, Nebraska, and Illinois—contain half of the nation’s total.

U.S. production of fuel ethanol reached 15.8 billion gallons (1.03 MMbpd) in 2019, the fourth consecutive year that production of fuel ethanol was more than 1 MMbpd. Although fuel ethanol production capacity increased year over year as of January 2020, fuel ethanol production has declined more recently. U.S. fuel ethanol production fell significantly in late March and in April 2020, driven by significant reductions in motor gasoline demand as a result of responses to the 2019 novel coronavirus disease (COVID-19). Because almost all finished motor gasoline sold in the United States is blended with 10% ethanol (E10), the drop in gasoline demand has driven similar decreases in fuel ethanol demand and, correspondingly, fuel ethanol production.

In the September 2020 Short-Term Energy Outlook (STEO), EIA expects U.S. production of fuel ethanol to average 0.90 MMbpd in 2020, which is 13% lower than 2019 levels. Fuel ethanol production reached a low of 0.56 MMbpd in April 2020 when demand dropped because of COVID-19 mitigation efforts. EIA forecasts that fuel ethanol production will average 0.98 MMbpd in December 2020.

To meet the increased demand for hand sanitizers as a result of COVID-19 concerns, some fuel ethanol plants are now producing industrial alcohol. The ethanol data reported to EIA on Form EIA-819, Monthly Oxygenates Report, are for fuel ethanol and only include barrels intended for motor fuel applications, such as blending to produce gasoline. Any ethanol intended for non-fuel use, such as to produce hand sanitizers, is not reported to EIA.

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) -- SIBUR announces senior appointments aimed at developing the Company's management and strengthening the executive team in key business areas, said the company.

Pavel Lyakhovich, ex-Head of Plastics, Elastomers and Organic Synthesis Division, has been appointed Head of Basic Polymers Division. Mr Lyakhovich will continue to supervise BIAXPLEN, SIBUR Holding’s subsidiary specialising in BOPP film production, as well as lead polymer recycling projects and oversee the implementation of the New Operating Model. Seeking to upgrade the Company’s organisational structure, business processes, employees’ powers and competencies, as well as corporate culture, the New Operating Model will help align SIBUR’s development efforts with the best global practices.

Alexander Petrov, former Managing Director for Economics and Finance, will take over the reins of the Plastics, Elastomers and Organic Synthesis Division. Mr Petrov will also oversee SIBUR’s procurement activities.
Peter O'Brien, an independent director and Chair of the Audit Committee since 2018, will join SIBUR’s management team as Managing Director for Economics and Finance.

As Executive Director, Sergey Komyshan will continue to oversee the expanding petrochemical business and will be responsible for marketing, sales, business innovation and development.

Dmitry Konov, Chairman of the Management Board at SIBUR Holding: "Changes to SIBUR's management team are in line with the senior leadership rotation programme. The ramp-up of ZapSibNeftekhim to design capacity, the launch of Amur GCC, the Company's new flagship project and a number of other polymer initiatives are the key drivers behind the long-term business growth and higher resilience of SIBUR. This is the reason why we decided to strengthen the petrochemical line by appointing Sergey Komyshan as its head. We are confident that the rotation contributes to expanding the expertise of our key managers, improving the Company's operational efficiency. Pavel Lyakhovich and Alexander Petrov have the necessary leadership skills, experience, and understanding of the Company to take our petrochemical business to a whole new level. In his new role, Mr Petrov will make use of his expert knowledge to facilitate synergies between the production and operations, on the one hand, and finance, on the other hand.

As SIBUR’s director, Peter O'Brien has a good understanding of our business and development strategy. Having held senior positions at leading international and Russian industrial and financial companies, Mr O'Brien has gained a wealth of expertise that will be invaluable given the globalisation of SIBUR’s operations."

As it was written earlier, a construction site in the Amur Region saw the sinking of the first test pile in the foundation of Amur Gas Chemical Complex, a facility set to become one of the world’s largest and most advanced basic polymer producers. The Amur GCC project envisages construction of a basic polymer production facility with a total capacity of 2.7 mtpa (2.3 mtpa of polyethylene and 400 ktpa of polypropylene). The facility will feature a unique and the world's largest cracking unit for the first-stage processing of incoming feedstock.

SIBUR is the leader of the Russian petrochemical industry and one of the largest companies globally in this sector, with more than 23,000 employees. The Company’s unique vertically integrated business model allows it to create highly competitive products consumed in the chemical, fast moving consumer goods (FMCG), automotive, construction, energy and other industries in 80 countries worldwide.
MRC

MOSCOW (MRC) -- S-Oil will begin its first overseas manufacturing and distribution of lubricants in India, the company said.

According to the South Korean refiner, it has partnered with a local company Gulf Oil Lubricants India to directly manufacture and distribute its premium lubricant product “S-Oil Seven” in the country.

In August, S-Oil began the production of S-Oil Seven at Gulf Oil’s factory located in Chennai on the southeast coast of India and the company will launch the product in the local market starting the fourth quarter.

“S-Oil’s lubricant production in India has been possible thanks to the long-term partnership with Gulf Oil based on mutual growth,” S-Oil CEO Hussain A. Al-Qahtani said.

S-Oil has been exporting lube base oil -- a raw material for lubricants -- to Gulf Oil since 2006. India is the world’s third largest lubricants market.

As MRC reported earlier, S-Oil, South Korean petrochemical major, took off-stream its residue fluid catalytic cracker (RFCC) unit for a turnaround in June, 2020. The company undertook a planned shutdown at the unit by early-July, 2020. The unit remained off-line for about two weeks. Located at Onsan, South Korea, the RFCC unit has a propylene capacity of 705,000 mt/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