Myers Industries joins Alliance to end plastic waste

MOSCOW (MRC) -- Myers Industries, Inc. announced that it has joined the Alliance to End Plastic Waste, a global nonprofit organization comprised of nearly fifty companies across the plastics value chain who are committed to investing in solutions that help eliminate plastic waste in the environment, said Chemweek.

The Alliance is a collective action, uniting companies that make, use, sell, process, collect, and recycle plastics, changing the system to protect the health and ecosystems of the future. Acting in the strategic areas of infrastructure, innovation, education and clean up, the Alliance takes a global approach with local action.

"Myers Industries is proud to have joined the Alliance to End Plastic Waste. By partnering with key members across the value chain, we not only join a critical discussion in the plastics community but add our voice and expertise in shaping future projects that recover, create value from, and ultimately eliminate plastic waste,” said Mike McGaugh, President and CEO of Myers Industries.

"We are happy to welcome Myers Industries into the Alliance and to work in partnership to develop new solutions to prevent plastic waste leaking into the environment. Our joint efforts will contribute towards building the circular economy,” said Jacob Duer, President and CEO of the Alliance to End Plastic Waste.

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.

Myers Industries, Inc. is an international manufacturer of polymer products for industrial, agricultural, automotive, commercial and consumer markets. The Company is also the largest distributor of tools, equipment and supplies for the tire, wheel and under-vehicle service industry in the U.S.
MRC

MOSCOW (MRC) -- Texas-based Pilot LNG, LLC (Pilot) has laid the foundation for a partnership with GAC Bunker Fuels (GAC) for the supply of LNG as a marine fuel from its proposed Galveston LNG Bunker Port terminal project, which will be the first dedicated LNG bunker terminal in the region, said Hydrocarbonprocessing.

The two companies have executed a Heads of Agreement (HOA), which outlines the terms of a partnership. It prepares the ground for Pilot to provide LNG marine fuel to GAC on a Delivered Ex-Ship (DES) basis for its customers in the Galveston Bay Port complex, including the ports of Houston, Galveston and Texas City, as well as Galveston Offshore Lightering Area, on a long-term basis.

"The Galveston LNG Bunker Port will provide the LNG to supply GAC’s growing market for cleaner marine fuel, particularly as its customers seek economic ways to comply with tightening emissions regulations, including IMO 2020,” says Pilot Chief Executive, Jonathan Cook. “The opportunity to work with such a strong global player like GAC is a very exciting step forward for Pilot and the Galveston project."

GAC Bunker Fuels’ Global Director Nicholas Browne adds: “We have a proven track record of more than three decades supplying quality marine fuels to the shipping sector, and we continually adapt to meet our customers’ evolving needs. This agreement with Pilot will allow us to grow our portfolio of alternative fuels, with LNG as the cleanest and most cost-effective way for shippers to meet compliance."

GAC Bunker Fuels is the world’s only bunkering company with an integrated ISO 9001, 14001, and 45001 certification for bunker procurement that also covers LNG as a marine fuel. In September, GAC acted as bunker broker for the Swedish dual-fuelled vessel FURE VEN when it became the first non-US flagged vessel to bunker LNG in the United States, taking on supplies at the Port of Jacksonville (JAXPORT).

As international regulators tighten emissions standards, the maritime industry is increasingly turning towards LNG as the marine fuel of choice due to its significantly lower emissions profile and cost competitiveness; however, additional LNG bunkering infrastructure is needed before widespread adoption can occur.

The HOA with GAC follows Pilot’s announcement in July that it had filed regulatory applications with the US Army Corps of Engineers (USACE) and other relevant regulatory agencies, paving the way for a Final Investment Decision (FID) in 2021 and allow operations to begin in late 2024.

Ethylene and propylene are feedstocks for producing 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) -- Dow reported a loss of USD1 million in the third quarter as results rebounded significantly from second-quarter pandemic lows. The company reported earnings of USD347 million the same year-ago quarter and a loss of USD217 million in the second quarter, said Chemweek.

Net sales were USD9.7 billion, down 9.8% YOY and up 16% sequentially from the second quarter. Reported adjusted earnings were 50 cts/share, down 46% YOY but well above analyst estimates of 33 cts/share on resilient demand in plastics and home care, improved demand in durables, and expense reductions, which were offset by lower price and margin compression. “We increased our operating rates to match rising demand as the recovery gained momentum,” said Dow CEO Jim Fitterling. “In polyethylene, we achieved pricing gains of 12% over the prior quarter as demand for packaging remained resilient, and in polyurethanes, we delivered higher volumes and margins underpinned by improving consumer durable demand."

Volume declined 1% YOY. Sequentially, volume increased 9% from the second quarter with all operating segments and regions delivering gains on improved demand across furniture & bedding, appliances, packaging, construction and automotive end markets.

Recovery is expected to continue in the fourth quarter with typical seasonality as economic indicators signal momentum broadening, said Dow president and CFO Howard Ungerleider. Significant capacity remains offline from US storm impacts and other unplanned outages and tight market conditions should support upward pricing and margins, Dow said.

"We enter the fourth quarter with sequential momentum, improved financial flexibility, and a consistent focus on cash," said Fitterling. "Although the third quarter rebound was significant, the recovery has been uneven across markets, and we expect this will continue in the near term."

Packaging and specialty plastics segment revenue was USD4.6 billion in the third quarter, down 10% on weaker prices. Segment volume was up 1% YOY on plastics demand growth. Operating EBIT was USD647 million, down 19% YOY as cost savings and volume gains were more than offset by margin compression.

Industrial intermediates and infrastructure segment revenue was USD3.1 billion, down 9% YOY. Volumes were down 3% YOY on reduced demand in automotive, industrial and energy. Segment operating EBIT of USD104 million was down 46% YOY on weaker demand and margin compression.

Performance materials and coatings segment sales was USD2 billion, down 11% YOY. Volume was down 5% as home care and DIY coatings growth was more than offset by declines in automotive, construction, and oil and gas markets. Operating EBIT of USD75 million was down 63% on margin compression in siloxanes and reduced demand.

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) -- Crude futures dipped during mid-morning Asian trade Oct. 22 as data from the Energy Information Association indicated that the US' downstream demand remains weak and on persistent concerns over the the ramp-up in Libyan oil production, reported S&P Gllobal.

At 10.41 am Singapore time (0241 GMT), ICE Brent December crude futures were down 21 cents/b (0.5%) from the Oct. 21 settle to USD41.52/b, while the NYMEX December light sweet crude contract was down 25 cents/b (0.62%) at USD39.78/b. Both international crude markets had plunged 3.31% and 4.00% to settle at USD41.73/b and USD40.03/b, respectively, on Oct. 21.

Market analysts attributed the falling prices to worse-than-expected Oct. 21 data from the EIA, with a 1.9 million-barrel climb in US gasoline inventories in the week ended Oct. 16 grabbing headlines. According to the EIA, US gasoline stocks stand at 227.02 million barrels, 1.6% above the five-year average.

In contrast, the American Petroleum Institute had reported on Oct. 20 a 1.6 million-barrel draw in gasoline inventories for the week ended Oct. 16, in line with analysts' forecasts in a poll by S&P Global Platts.

Furthermore, EIA's proxy for demand -- total refined product supplied -- dropped 1.36 million b/d to 18.11 million b/d, driven by lowered demand across all product categories.

Total gasoline demand fell 290,000 b/d on the week to 8.29 million b/d, the lowest since the week ended June 12, while distillate demand shrank 590,000 b/d to 3.59 million b/d, a five-week low.

"The most devastating read for oil prices was that gasoline consumption is weakening, which then fuses with the sum of all fears that COVID-19 is again starting to impact consumer behavior at the pump negatively," Stephen Innes, chief market strategist at AXI, said in an Oct. 22 note.

At 10.41 am Singapore time, the NYMEX November RBOB contract was trading 0.72 cents/gal (0.63%) lower than the Oct. 21 settle at USD1.1331/gal and November ULSD contract was down by 0.68 cents/gal (0.59%) at USD1.1335/gal.

Meanwhile, the EIA's report of a 1 million-barrel fall in US commercial crude inventories to 488.11 million barrels did little to assuage the markets, as the draw did not necessarily indicate improved fundamentals and could instead be attributed to lingering effects of Hurricane Delta, which had shuttered almost 92% of the US Gulf Coast's offshore production.

The drawdown in crude inventories also fell short of analyst expectations, who had forecast a weekly decline of 1.9 million barrels.

Edward Moya, senior market analyst at OANDA, surmised in an Oct. 22 note: "A somewhat bullish EIA crude oil inventory report couldn't help oil prices at all."

Meanwhile, supply side concerns persisted after Platts reported on Oct. 20 that the 70,000 b/d Abu Abttifel oil field in Libya had resumed production and that output at the Sharara oil field, the country's largest, had climbed to 160,000 b/d since it restarted production on Oct. 11.

ANZ said in an Oct. 22 note: "The oil market is also having to contend with rising supply. Libya's crude output will rise to 560,000 b/d by the end of the month and reach 1 million b/d by year-end, according to [Libyan] deputy premier (Ahmed Maiteeq)."

The rapid recovery in Libyan production raises concerns of a supply glut, especially considering that demand is subdued amid the coronavirus pandemic, and that OPEC+ has made no definite comments yet over whether the alliance will proceed with the 2 million b/d relaxation in production cuts scheduled for 2021 onwards.

As MRC informed earlier, global oil demand is forecast to peak by around 2040 because transport-fuel demand will decline steeply and economic growth will slow in the post-coronavirus world, the Institute of Energy Economics, Japan, said in its annual IEEJ Outlook 2021 on Oct. 15.

We remind that global oil demand may have already peaked, according to BP's latest long-term energy outlook, as the COVID-19 pandemic kicks the world economy onto a weaker growth trajectory and accelerates the shift to cleaner fuels.

Earlier this year, BP said the deadly coronavirus outbreak could cut global oil demand growth by 40 per cent in 2020, putting pressure on Opec producers and Russia to curb supplies to keep prices in check.

And in September 2019, six world's major petrochemical companies in Flanders, Belgium, North Rhine-Westphalia, Germany, and the Netherlands (Trilateral Region) announced the creation of a consortium to jointly investigate how naphtha or gas steam crackers could be operated using renewable electricity instead of fossil fuels. The Cracker of the Future consortium, which includes BASF, Borealis, BP, LyondellBasell, SABIC and Total, aims to produce base chemicals while also significantly reducing carbon emissions. The companies agreed to invest in R&D and knowledge sharing as they assess the possibility of transitioning their base chemical production to renewable electricity.

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

MOSCOW (MRC) -- Evonik Industries has reported preliminary adjusted net profit in the third quarter of EUR186.0 million (USD217.7 million), a decline of 4.6% year on year (YOY) but beating analysts' consensus estimates by EUR18 million, reported Chemweek.

Sales totaled EUR2.92 billion, down 9.6% YOY, while adjusted EBITDA was EUR519 million, EUR24 million or 4.4% less than in the prior-year period, but €48 million higher than the consensus estimate of EUR471 million, as compiled by Vara Research. "This result is clearly above market expectations and is therefore pre-released today," it says.

During the third quarter, an improving month-on-month trend became apparent, which further accelerated in September and produced the better-than-expected results, according to Evonik. The main drivers were the specialty additives and smart materials divisions, it says. Specialty additive sales fell by 10% YOY to EUR777 million, while adjusted EBITDA declined by 8% to EUR214 million, but beating consensus. Sales of smart materials declined 5% YOY to EUR790 million, with adjusted EBITDA dropping 13% to EUR137 million, also beating analysts' consensus expectations.

Evonik’s nutrition and care business recorded sales that were 2% lower YOY at EUR715 million, but with an 18% increase in adjusted EBITDA to EUR140 million, slightly below consensus. Sales of its performance materials decreased 27% YOY to EUR444 million, with adjusted EBITDA down 43% to EUR28 million, beating consensus.

The company has also provided an updated outlook for 2020, saying it now expects adjusted EBITDA to be in the range EUR1.8–2.0 billion, compared with EUR2.15 billion in 2019. The sales outlook remains unchanged at EUR11.5–13.0 billion, compared with EUR13.1 billion in 2019, it says.

Free cash flow for the first nine months of 2020 is expected to be at least on a level with the prior-year period at around EUR417 million, despite lower earnings. For the full year, it has also increased its forecast and expects free cash flow to be around EUR700 million. This is attributed to structural cost savings implemented by the company, lower bonus and tax payments over the course of the year, and a positive development in net working capital expected for the remainder of the year, Evonik says.

The company is scheduled to publish its third-quarter financials on 3 November.

The results so far this year reflect "the benefits from the structural changes and strategic measures implemented over the last years,” says Christian Kullmann, Evonik's chairman.

As MRC reported before, Dow and Evonik have recently entered into an exclusive technology partnership. Together, they plan to bring a unique method for directly synthesizing propylene glycol (PG) from propylene and hydrogen peroxide to market maturity.

Propylene is the main feedstock for the production of polypropylene (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.

Evonik is one of the world leaders in specialty chemicals. The focus on more specialty businesses, customer-oriented innovative prowess and a trustful and performance-oriented corporate culture form the heart of Evonik’s corporate strategy. They are the lever for profitable growth and a sustained increase in the value of the company. Evonik benefits specifically from its customer proximity and leading market positions. Evonik is active in over 100 countries around the world with more than 36,000 employees.
MRC