Sinopec Zhongke to shut cracker on technical difficulties

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

MEGlobal raises ACP for November 2020 by USD10 per tonne

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

Crude tests six-week highs as fundamental outlooks tighten

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

PE imports to Ukraine increased by 2% in January-September 2020

MOSCOW (MRC) -- Polyethylene (PE) imports into the Ukrainian market rose in the first nine months of 2020 by 2% year on year to 204,200 tonnes. Imports of all PE grades increased, with linear low density polyethylene (LLDPE) being the exception, according to MRC's DataScope report.

Last month, external supplies of polyethylene to Ukraine amounted to slightly less than 21,900 tonnes against 22,900 tonnes in August, local companies reduced their purchases of low density polyethylene (LDPE) and linear low density polyethylene (LLDPE). Thus, overall PE imports reached 204,200 tonnes in January-September 2020, compared to 200,800 tonnes a year earlier. Imports of all grades of ethylene polymers increased, with LLDPE, demand for which subsided in all consumption sectors, being the only exception.

The supply structure by PE grades looked the following way over the stated period.
September imports of pipe HDPE into the country increased to 6,800 tonnes, compared with 5,600 tonnes in August, Ukrainian companies have increased their purchases of pipe and injection moulding polyethylene. Overall HDPE imports exceeded 73,400 tonnes in the first nine months of 2020 versus 72,500 tonnes a year earlier.

September imports of low density polyethylene (LDPE) were slightly over 6,400 tonnes versus 7,300 tonnes a month earlier, producers from Azerbaijan and Russia reduced their export sales. Overall LDPE imports reached 60,900 tonnes over the stated period, compared to 58,100 tonnes a year earlier.

Last month's imports of linear low density polyethylene (LLDPE) were about 7,400 tonnes, compared to 8,300 tonnes in June, shipments of film grade LLDPE decreased. Overall LLDPE imports reached 59,300 tonnes in January-September 2020, compared to 60,800 tonnes a year earlier.

Imports of other PE grades, including ethylene-vinyl-acetate (EVA), totalled about 10,600 tonnes over the stated period, compared to 9,400 tonnes a year earlier.

MRC

PP imports to Ukraine remained at the level of last year in January-September 2020

MOSCOW (MRC) -- Ukraine's polypropylene (PP) imports totalled about 101,200 tonnes in 2019, which practically corresponded to the same figure last year. External supplies of all types of propylene polymers, except for PP random copolymers, have decreased, according to a MRC's DataScope report.

September PP imports into the country fell to 12,500 tonnes from 13,300 tonnes a month earlier, the decrease in demand led to a decrease in the volume of purchases of homopolymer PP. Overall imports of propylene polymers reached 101,200 tonnes in January-September 2020, compared to 101,500 tonnes a year earlier. Demand for all types of propylene polymers decreased slightly, but demand for PP random copolymers increased.

The structure of PP imports by grades looked the following way over the stated period.

September imports of homopolymer PP to the Ukrainian market decreased to about 9,000 tonnes from 9,200 tonnes a month earlier, local companies suspended their purchasing of PP in Azerbaijan and Turkmenistan. Total homopolymer PP imports were 77,300 tonnes in January-September, compared to 77,900 tonnes a year earlier.

September imports of PP block copolymers was about 1,700 tonnes, which actually equal to the level in August. Over the reporting period, about 10,400 tonnes of propylene block copolymers were imported against 10,600 tonnes for the same period in 2019.

September PP random copolymers imports decreased to 1,600 tonnes from 1,900 tonnes a month earlier, local companies decreased their purchasing of injection moulding PP random copolymers. Overall PP random copolymers imports reached 11,800 tonnes in January-September 2020, compared to 11,600 tonnes a year earlier.

Overall imports of other propylene copolymers totalled about 1,700 tonnes over the stated period.

MRC