COVID-19 - News digest as of 06.10.2020

1. US refiners on course to digest excess diesel by March

MOSCOW (MRC) -- If they can maintain recent progress, US oil refiners should be able to bring stocks of diesel and other middle distillates close to normal levels in the first quarter of 2021, reported Reuters. Distillate inventories were still 20% above the five-year average last week, but the surplus was down from 22% at the end of August, 27% at the end of July and 29% at the end of June. Refining margins for distillate show tentative signs of recovery, based on futures prices for crude and ultra-low sulfur diesel delivered in March 2021, consistent with a normalization of stocks in the first quarter. Forward margins have turned slightly higher, albeit from a very low level, for the first time since June, when there were still hopes for a rapid recovery in oil consumption after the first wave of the novel coronavirus.


MRC

MOSCOW (MRC) -- Ascend Performance Materials (Houston) has increased its prices, effective immediately, for adiponitrile (ADN), acrylonitrile, adipic acid, and hexamethylenediamine (HMDA), said Chemweek.

The prices of HMDA and ADN have each been hiked by USD350/metric ton, while acrylonitrile has been raised by USD200/metric ton. The price of adipic acid has been increased by USD100/metric ton. All the price rises are as contracts allow, with non-contract business prices determined on an order-by-order basis, it says.

As MRC informed earlier, Ascend Performance Materials has made their new mask technology available to the public for purchase. In July, NorthEscambia.com first reported that Ascend developed a new mask technology that protect against SARS-CoV-2, the cause of COVID-19, and the material to make it is manufactured at the company’s North Escambia facility on Old Chemstrand Road.

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.
MRC

MOSCOW (MRC) -- Moody's Investors Services downgraded on Monday its ratings for LyondellBasell to Baa2 from Baa1 following the company's announcement that it will acquire a 50% stake in some of the units at Sasol's chemical complex in Lake Charles, Louisiana, US, said the company.

The new score, which applies to LyondellBasell's senior unsecured ratings, remains within Moody's investment-grade range. Under the agreement, LyondellBasell will pay USD2bn for the stakes in the plants, which are in Sasol's complex in Lake Charles.

The plants in the joint venture have a capacity to produce 1.5m tonnes/year of ethylene, 470,000 tonne/year of linear low density PE (LLDPE) and a 420,000 tonne/year of low density PE (LDPE). The joint venture agreement does not include Sasol's alcohols and ethoxylates plants.

Moody's acknowledged that LyondellBasell is getting a good deal, as the price tag is well below the replacement costs of the joint venture's units. However, LyondellBasell's credit profile would be very weak for its Baa1 rating through 2022, said John Rogers, senior vice president and lead analyst for Moody's.

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

MOSCOW (MRC) -- Mitsui Chemicals, Inc. announced that group company SDC Technologies, Inc. has acquired COTEC GmbH, said Chemweek.

Engaged in the manufacture, sale and research of hydrophobic and anti-reflective coatings, COTEC became a wholly owned subsidiary of SDC on October 1, 2020. The Mitsui Chemicals Group’s Vision Care Materials Division boasts a diverse product range. Its ophthalmic lens materials include the MR™ series of high refractive index optical lens materials, as well as medium and low refractive index lens materials. In the field of coating materials, the Mitsui Chemicals Group followed up its acquisition of SDC in 2008 by using the group company to bring anti-fog coating specialist FSI Coating Technologies, Inc. under its umbrella in 2010. UV-curable hard coatings producer LTI Coating Technologies, LTI was then acquired in 2014 before being subsequently integrated with SDC in a 2017 absorption-type merger. Now with hydrophobic and anti-reflective coating expert COTEC? as its latest acquisition here, the Mitsui Chemicals Group is looking to enhance its offering of coating solutions for the ophthalmic lens market.

The Mitsui Chemicals Group intends to continue expanding the portfolio of its Vision Care Materials Division and, based on the concept of Quality of View (QoV), will continue to pursue its commitment to product development aimed at vision correction and improving the health and comfort of the eyes. It is all part of the Mitsui Chemicals Group’s effort to bring people a better view of the world.

QoV: A measure of quality and satisfaction in all areas related to eyes and eyesight in our lives. The term encompasses vision optimization and comfort, ocular health and measures to prevent optical diseases.
Together we can provide coating materials for all layers of a complete eyewear lens coating stack,” said Antonios Grigoriou, CEO and President of SDC. “From Mitsui Chemicals’ innovative MR™ series of high refractive index optical lens materials, to SDC’s CrystalCoat™ top layer best-in-class abrasion resistant hard coats, to COTEC?’s anti-reflective coating materials and DURALON brand family of nanocoatings offering easy-to-clean finger-print, and anti-smudge and oil/ water repellency."

"We are honored to incorporate this knowhow into the SDC organization,” said Michael Fliedner, CEO of COTEC. “Through the partnership with SDC, the expertise of both companies in polymer chemistry and thin film coating technology is being combined. This will strengthen the innovative power of both companies. SDC’s existing distribution channels and application facilities will enable COTEC? to strengthen its presence in Asia and the Americas."

As MRC informed earlier, 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. 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.
MRC

MOSCOW (Market Report) -- Poliom (joint venture of SIBUR and Gazprom Neft) shut down its polypropylene (PP) production for a scheduled turnaround, according to ICIS-MRC Price report.

Market participants said Poliom took off-stream its PP production for the scheduled maintenance on 2 September; the shutdown will take a little more than two weeks. The plant's annual production capacity is 230,000 tonnes.

It is also worth noting that Ufaorgsintez also shut its production capacities for a scheduled turnaround on 12 September, the outage will last until 10 October.

Poliom, one of the largest PP producers in Russia, started its operations in 2013. Poliom was formed as a joint venture of such companies, as Gazprom Neft (25%), SIBUR (25%) and the Titan Group of Companies (50%), in 2014. The plant’s capacity is 218,000 tonnes of high-tech products per year, the assortment includes about 100 grades of PP. The propane-propylene fraction, which comes from the Omsk Oil Refinery Gazprom Neft, is the main feedstock for the plant's production. SIBUR provides distribution of finished products in the market of the Russian Federation and the CIS countries. The plant is certified according to international standards.

MRC