ACC releases September 2020 resin production and sales statistics

MOSCOW (MRC) -- U.S. production of major plastic resins totaled 7.2 billion pounds during September 2020, a decrease of 5.1%compared to the prior month, and a decrease of 0.9% compared to the same month in 2019, according to statistics released today by the American Chemistry Council (ACC).

Year-to-date production was 67.3 billion pounds, a 1.5% increase as compared to the same period in 2019.

Sales and captive (internal) use of major plastic resins totaled 7.4 billion pounds during September 2020, a decrease of 2.0% compared to the prior month, and an increase of 0.5% from the same month one year earlier.

Year-to-date sales and captive use was 68.4 billion pounds, a 2.7% increase as compared to the same period in 2019.

We remind that Russia's output of chemical products rose in September 2020 by 6.7% year on year. At the same time, production of basic chemicals increased by 6.1% year on year in the first nine months of 2020, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-September output. Last month's production of primary polymers decreased to 852,000 tonnes from 888,000 tonnes in August due to shutdowns in Tomsk, Ufa and Kazan. Overall output of polymers in primary form totalled 7,480,000 tonnes over the stated period, up by 16.4% year on year.
MRC

MOSCOW (MRC) -- Versalis, the chemicals subsidiary of Eni (Rome, Italy), says adjusted operating losses have narrowed to EUR53 million (USD62 million) in the third quarter from a larger EUR70-million adjusted operating loss incurred in the prior-year period, said Chemweek.

The third-quarter result is also an improvement sequentially over an operating loss of €66 million in the second quarter of 2020. The year-on-year (YOY) quarterly improvement was driven by increased petrochemical sales volumes from a “moderate recovery” in demand, improved plant performance, and better margins “particularly in the polyethylene (PE) business,” it says.

Sales of petchem products totaled 1.1 million metric tons in the third quarter, up slightly YOY, driven by higher volumes of intermediates due to higher product availability, elastomers, and particularly by styrenics, especially in the appliance and packaging sector, according to the company. The average plant utilization rate declined 2% YOY to 66% but improved sequentially by 6% compared to the second quarter.

Petchem product margins performed well mainly in the PE segment, it says. This was despite the ongoing weakness in end-user demand, driven by lower competitive pressures, a widening spread versus ethylene, and to a lesser extent styrenics/elastomers, due to lower feedstock prices, it says. Cracker margins saw a significant decrease in the third quarter due to a decline in the main monomers prices, but were stable on an annual basis due to the lower cost of feedstock, it adds.

For the nine months to end September, Versalis reports a widening adjusted operating loss of EUR184 million, EUR40 million more than the corresponding period in 2019, driven by sharply lower sales volumes due to weak commodity demand trends in European economies triggered by COVID-19. Lower sales volumes were negatively affected by reduced product availability due to longer maintenance standstills at its production hubs in response to the pandemic, particularly at the company’s Italian steam cracking facilities in Priolo and Brindisi, it says. These trends were partially offset by a recovery in PE margins, driven by higher demand and lower European imports, it notes.

Petchem sales volumes declined 7% YOY for the nine-month period to 3.01 million metric tons, with the average plant utilization rate falling 7% to 61% for the year to date. The lower sales volumes reflect weaker demand in the main end-markets, particularly the automotive sector, due to the global economic downturn and “uncertainties about the strength of the recovery,” Versalis says.

Capital expenditure (capex) by Versalis rose in the third quarter to €38 million from EUR23 million a year earlier, also improving sequentially from EUR37 million in the second quarter. For the year to date, capex by Versalis more than doubled YOY to EUR141 million.

Eni’s CEO Claudio Descalzi says the group continues to “successfully mitigate” the negative impact of the pandemic and the global economic downturn, including offsetting the impact of “an extremely negative scenario in traditional refining and chemicals.” Eni expects the fourth quarter to be in line with business trends recorded in the previous quarter, it says.

As MRC informed earlier, Versalis plans to increase production capacity for acrylonitrile-butadiene-styrene (ABS) at its Mantua, Italy, facility, according to GV with reference to several industry reports. The project will boost ABS capacity at its existing unit by 30,000 t/y.

According to MRC's ScanPlast, Russia's estimated consumption of ABS increased by 13% in July compared to July last year and amounted to 4,300 tonnes (3,790 tonnes in 2019).

Eni is an Italian multinational oil and gas company headquartered in Rome. It has operations in in 79 countries, and is currently Italy's largest industrial company with a market capitalization of 68 billion euros (USD 90 billion), as of August 14, 2013. The Italian government owns a 30.3% golden share in the company, 3.93% held through the state Treasury and 26.37% held through the Cassa depositi e prestiti. Another 39.40% of the shares are held by BNP Paribas.
MRC

MOSCOW (MRC) -- At least five Louisiana oil refineries in the path of Tropical Storm Zeta plan to remain operating as it makes a US landfall, reported Reuters with reference to people familiar with plant operations.

Oil and gas producers evacuated offshore production platforms and shut wells as the storm moved across the Gulf of Mexico. Zeta could strike the Gulf Coast between Louisiana and Alabama at or near hurricane intensity, forecasters said.

Refiners’ plans to continue operations could depend on the storm’s path and whether its winds intensify, the sources said. Two Louisiana plants have not restarted after storms earlier this year.

Exxon Mobil Corp’s 517,700 barrel-per-day (bpd) Baton Rouge, refinery, Royal Dutch Shell Plc’s 227,400 bpd Norco and 211,146 bpd Convent, Louisiana, refineries are proceeding with normal operations.

Exxon’s Baton Rouge plant is about 110 miles (177 km) northwest of the forecast path while Shell’s Convent and Norco refineries are 78 miles and 54 miles northwest of the latest storm track.

Exxon and Shell are monitoring the storm, spokes people said. Shell also said it is prepared to take action as appropriate.

PBF Energy’s 190,000 bpd Chalmette, refinery and Valero Energy Corp’s 125,000 bpd Meraux refinery, both in Louisiana, also plan to remain running during the storm, people familiar with operations at those plants said.

PBF and Valero did not respond to requests for comment.

The PBF refinery is about 36 miles and the Valero refinery about 34 miles northwest of where Zeta is forecast to cross the Mississippi River.

Enbridge Inc shut a natural gas processing plant in Venice, Louisiana, on the wet side of the hurricane, which likely will see the most rain and wind.

The refinery nearest to where Zeta could strike the coast, Phillips 66’s 255,600 bpd Alliance, Louisiana, refinery, has been shut since September for maintenance.

As MRC informed before, last month, US refiner Phillips 66 said it plans to reconfigure its refinery in Rodeo, California to produce renewable fuels from used cooking oil, fats, greases and soybean oils.

We remind that US-based Phillips 66 remains open to developing another ethane cracker for its Chevron Phillips Chemical (CP Chem) joint venture, the refiner's CEO said in March 2018.

Ethylene and propylene are feedstocks for producing 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) -- W.R. Grace reports third-quarter net income of USD7.0 million, down 87.0% year-on-year (YOY), as weak transportation fuel demand due to the COVID-19 pandemic continues to negatively impact refining catalysts volumes, reported Chemweek.

Adjusted earnings of USD0.56/share was 43.8% lower YOY and met the analysts’ consensus estimate compiled by Refinitiv (New York). Net sales were down 10.9% YOY and flat sequentially.

Grace says a 15.4% drop in Catalysts Technologies volumes more than offset a 3.8% increase in Materials Technologies volumes, which was driven primarily by growth in pharma/consumer end-markets. The refining catalyst market stabilized and is improving from the second quarter, but transportation fuel demand is still lagging the overall economic recovery, the company adds. Power outages at the company’s Lake Charles, Louisiana catalyst production site due to Hurricane Laura also increased operating costs.

Catalyst Technologies segment operating income declined 36.2% YOY, to USD67.1 million, on sales down 15.4%, to USD305.7 million. Materials Technologies segment operating income fell 6.9% YOY, to USD24.3 million, on sales up 4.2%, to USD113.7 million.

Hudson La Force, Grace’s President and CEO, says the company is encouraged by improving demand trends. “We expect Specialty Catalysts and Materials Technologies end markets to continue their recovery and sales to return to 2019 levels on a run-rate basis during 2021,” he adds. “In Refining Technologies, the effects of the pandemic will remain a headwind until transportation fuel demand more fully recovers.”

Grace expects fourth-quarter adjusted earnings in the range of USD0.84-0.88/share, below the analysts’ consensus of USD0.94/share. The company also expects sales to increase 10-13% sequentially.

As MRC informed earlier, W. R. Grace & Co. licenses UNIPOL PP process technology to Dongguan Grand Resource for two additional lines. This is part of the continued investment in UNIPOL PP Process Technology lines by DGR. The first license was signed in 2016. Building additional capacity at the same site will help DGR further optimize costs, shorten construction time, and broaden their product portfolio.

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.

A leader in polyolefin catalysts and licensing, Grace has the world’s broadest portfolio of polypropylene and polyethylene catalyst technologies used to produce thermoplastic resins for a variety of applications. A leading innovator and strategic partner to its customers, Grace supplies catalyst solutions for all polyolefin processes, as well as polypropylene process technology and process controls. Grace employs approximately 3,700 people in over 30 countries.
MRC

MOSCOW (MRC) -- Eastern Pacific Shipping (EPS) has won a bid to purchase, build, and operate four 98,000 cubic meter VLECs for China-based Zhejiang Satellite Petrochemical (STL), said Hydrocarbonprocessing.

The vessels will be carrying ethane from the US Gulf Coast to Shenzhen-listed STL’s plant in Lianyungang, China. All four VLECs will feature dual fuel ethane propulsion which will reduce greenhouse gas emissions when compared to conventional marine fuels.

EPS CEO Cyril Ducau said, “We are extremely pleased to partner with STL and enter the ethane carrier segment. Both companies share a vision of being the green and technology-driven leaders in our respective industries. This made the negotiations and subsequent agreement an enjoyable and seamless process. For EPS, the addition of these four vessels complement our existing, and growing, mid and large gas carrier fleet. This deal also serves as an example of our commitment to using alternative marine fuels as transitional fuels towards decarbonization and the preservation of the environment for future generations. This 15-year charter is a major milestone for us that will strengthen our foundation as we grow and diversify our fleet."

The VLECs will be built at South Korea’s Hyundai Heavy Industries and Samsung Heavy Industries and are scheduled for delivery in the first half of 2022.

As MRC informed earlier, in July, Malaysian national shipping group MISC has entered into memorandum of agreements with China’s Zhejiang Satellite Petrochemical for the acquisition of six newbuild 98,000 cu m very large ethane carriers (VLECs). The six VLECs, currently under construction at South Korean yards Hyundai Heavy and Samsung Heavy, were originally ordered by Delos Shipping with charters fixed to Satellite Petrochemical who later took over the ownership of the six ships.

Ethylene and propylene are feedstocks for producing 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