LyondellBasell puts Americas PO and derivatives on force majeure

MOSCOW (MRC) -- LyondellBasell, the world's lartest polyolefins producer, puts Americas propylene oxide (PO) and derivatives on force majeure, according to Chemweek.

A leak on a PO refining column at LyondellBasell's plant in Bayport (Texas, USA) with the capacity of 600,000 mt/year of PO on 7 October caused the company to significantly reduce capacity utilisation at its Bayport facility, and subsequently declare force majeure on PO and derivatives, according to a customer letter.

The letter did not say how long the disruption was expected to last.

Products affected include PO, p-glycols, allyl alcohol, butanediol and derivatives, p-series glycol ethers, and p-specialties glycol ethers.

As MRC informed earlier, LyondellBasell (Rotterdam, the Netherlands) announced that Duqm Refinery and Petrochemical Industries Company LLC (DRPIC) has selected LyondellBasell’s world-leading polypropylene (PP) and high-density polyethylene (HDPE) technologies for a new facility. The new plants will comprise of a PP plant that will utilize LyondellBasell’s Spheripol PP process technology to produce 280,000 metric tons per year (m.t./yr) of PP and a 480-m.t./yr HDPE plant which will utilize LyondellBasell’s Hostalen ACP process technology and will be built in Al Duqm, Oman.

Propylene is the main feedstock for the production of PP.

According to MRC's ScanPlast report, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies.
MRC

MOSCOW (MRC) -- Zhejiang Petrochemical is in plans to take off-stream its linear low density polyethylene (LLDPE) unit, according to Apic-online.

A Polymerupdate source in China informed that the company is likely to shut the unit for a brief maintenance in the middle of October, 2020. The unit is expected to remain off-line for about 5 days.

Located at Zhoushan, China, the LLDPE unit has a production capacity of 450,000 mt/year.

As MRC reported earlier, Zhejiang Petrochemical Co Ltd started up its ethylene cracker in late December 2019 and its polyolefin plants in late December 2019-January 2020.

Market sources reported then that one of its polypropylene (PP) plant with capacity of 450,000 tons/year started up by 30 December 2019, followed by another line with same capacity by 15 January 2020.

Meanwhile its 450,000 tons/year of linear low density polyethylene (LLDPE) and 300,000 tons/year of high density polyethylene (HDPE) were launched around similar time with PP plants.

According to MRC's ScanPlast report, August LLDPE shipments to Russia fell to 17,200 tonnes from 48,950 tonnes a month earlier, exports increased, whereas production decreased. Russia's overall LLDPE shipments totalled 257,100 tonnes in the first eight months of 2020, down by 5% year on year. Russian LLDPE C4 was sold at Rb76,000-78,000/tonne CPT Moscow, including VAT, in September.
MRC

MOSCOW (MRC) -- Zhongke Refinery and Petrochemical is in plans to shut its cracker in Guangdong Province on 20 October, 2020, due to a persistent technical difficulty, reported CommoPlast with reference to a source close to the company.

The restart date of this 1 million tons/year cracker is not acertain at the time of this report. The shutdown at the cracker would also affect the downstream 350,000 tons/year high density polyethylene (HDPE)/linear low density polyethylene (LLDPE) swing unit.

As MRC informed earlier, the company has also taken its No. 1 polypropylene (PP) unit in Guangdong Province offstream on 12 October 2020 - just a week after recovering from the earlier explosion at the 3thylene oOxide (EO) line that affected the entire complex. The No. 1 PP line has an annual capacity of 350,000 tons/year. Meanwhile, the No. 2 PP unit with 200,000 tons/year output are operating at stable rates.

Meanwhile. the 100,000 tons/year low density polyethylene (LDPE) line remains idled without a specific startup schedule.

Sinoepc Zhongke Refinery and Petrochemical has been attempting to start-up the newly constructed plant since June 2020. The producer might need more time to reach stable production.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE). At the same time, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

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) -- MEGlobal has announced its Asian Contract Price (ACP) for monoethylene glycol (MEG) to be shipped in November 2020, according to the company's press release.

Thus, on 14 October, the company said ACP for MEG would be at USD650/MT CFR Asian main ports for arrival in November 2020, up by USD10/MT from October.

The November 2020 ACP reflects the short term supply/demand situation in the Asian market.

As MRC reported earlier, MEGlobal announced its October ACP for MEG at USD640/MT CFR Asian main ports, up by USD20/tonne from September.

MEG is one of the main feedstocks for the production of polyethylene terephthalate (PET).

According to ICIS-MRC Price report, contract prices of Russian plants increased by Rb1,000-1,500/tonne this month under the pressure from the growth of the dollar exchange rate against the rouble.

MEGlobal is a fully integrated supplier of monoethylene glycol (MEG) and diethylene glycol (DEG), collectively known as ethylene glycol (EG).
MRC

MOSCOW (MRC) -- Crude oil futures settled higher Oct. 14 as fundamental outlooks turned more bullish amid reports of improved OPEC+ quota compliance and rising Chinese crude demand, reported S&P Global.

Oil climbed in a late session rally following a Reuters report stating OPEC+ producers achieved 102% quota compliance in September. The latest S&P Global Platts survey Oct. 9 found compliance reached 99% last month, led by the Gulf states, but discipline from Russia and some African producers continued to slip.

Russian energy minister Alexander Novak said Oct. 14 that OPEC+ did not expect the second coronavirus wave to impede plans to increase oil output gradually.

The comments come on the heel of a call between Russian President Vladimir Putin and Saudi Arabia 's Crown Prince Mohammed bin Salman, where the pair underscored the necessity of continuing to cooperate within OPEC+, according to a statement posted on the Kremlin website late Oct. 13.

The call took place ahead of a key OPEC + monitoring committee, co-chaired by Saudi Arabia and Russia, which is scheduled to meet virtually Oct. 19, amid speculation that OPEC+ may not go ahead with easing its current 7.7 million b/d production cut in 2021.

Oil was already trending higher earlier in the session amid reports of rising Chinese crude demand. China's independent refineries' crude and bitumen blend imports were up 1.6% to 18.14 million mt, or 4.43 million b/d, in September, from a three-month low of 17.85 million mt in August, information collected by S&P Global Platts showed Oct. 14.

This is the fourth time that Chinese independent refineries' crude and bitumen imports have been over 18 million mt, having hit a record high 19.81 million mt, or 4.68 million b/d, in July, Platts data showed.

Rising Chinese demand helped push the benchmark cash Dubai spread to Dubai futures higher for a third consecutive day. December cash Dubai crude was assessed at a discount of 54 cents/b to same-month Dubai futures at the 4:30 pm (0830 GMT) Singapore close on Oct. 14, a two-week high and up from minus 75.5 cents/b the previous session, S&P Global Platts data showed.

OPEC in its monthly oil market report released Oct. 13 raised its global oil demand forecast for 2020 by 60,000 b/d to 90.29 million b/d citing growing Chinese crude appetite. However, it downgraded its forecast for 2021, expecting oil demand to total 96.84 million b/d, 80,000 b/d lower than its last forecast in September.

Refined product futures traced crude higher, but growing risks of a resurgent coronavirus pandemic capped the rally and weighed on crack spreads.

NYMEX November RBOB settled 1.44 cents higher at USD1.1971/gal and November ULSD settled up 2.35 cents at USD1.1925/gal.

In the US, a surge in new infections in the Midwest helped push the seven-day moving average of new cases to more than 51,000 on Oct 13, the highest since Aug. 16, according to data from The COVID Tracking Project.

The front-month ICE New York Harbor RBOB crack versus Brent was testing one-month lows at around USD6.24/b midafternoon.

As MRC iformed before, China's Sinopec has started operation of a 800,000 tons-per-year ethylene facility at its Zhanjiang refinery. The refinery, located in the southern Chinese coastal city of Zhanjiang, commenced operation of its 200,000 barrel per day crude oil refining units in June.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE). At the same time, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC