Trinseo raises November PC prices in Europe

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex binders and synthetic rubber, and its affiliate companies in Europe have announced a price increase for all polycarbonate (PC) grades in Europe, as per the company's press release.

Effective November 1, 2020, or as existing contract terms allow, the contract and spot prices for the products listed below increased as follows:

- CALIBRE PC resins - by EUR150 per metric ton.

As MRC informed earlier, Trinseo last raised its prices for all PC grades in Europe on 1 October 2020 by EUR300 per metric ton.

According to MRC's ScanPlast report, Russia's estimated consumption of PC granules (excluding imports and exports to/from Belarus) rose in the first three quarters of 2020 by 32% year on year to 75,600 tonnes (57,200 tonnes a year earlier).

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD3.8 billion in net sales in 2019, with 17 manufacturing sites around the world, and approximately 2,700 employees.
MRC

MOSOCW (MRC) -- Negotiations on prices of European polyvinyl chloride (PVC) for November shipments to the CIS markets started at the beginning of this week. European producers announced another increase of EUR50/tonne or higher in their export PVC prices, despite steady ethylene price, according to ICIS-MRC Price report.

November contract price of ethylene was agreed at the previous month's level, which theoretically allowed to talk about the steadiness of the net cost of PVC production, if compared to October. Nevertheless, shutdowns of several plants in Europe and good demand for PVC in the world helped European producers to talk about a significant increase in export prices for the CIS markets in November. An increase of EUR50-60/tonne in export PVC prices has been under discussion.

Demand for PVC from CIS consumers decreased in November under the pressure of the seasonal factor, but still remained at a good level for the current season. Also, local producers have restrictions on supplies, in particular, from the Ukrainian producer - Karpatneftekhim due to a shutdown for scheduled maintenance works.

Nevertheless, European producers reported that export quotas were significantly limited in November for supplies to the CIS markets due to shutdowns of several plants in the region, and good demand from the domestic and a number of export markets.

Overall, deals for November shipments of suspension polyvinyl chloride (SPVC) to the CIS markets were negotiated in the range of EUR820-905/tonne FCA, whereas the previous month's deals were discussed in the range of EUR770-840/tonne FCA.

MRC

MOSCOW (MRC) -- During the week ended 31 October, chemical railcar traffic in North America weakened on a four-week basis, but year-to-date figures continued to improve, according to Chemweek.

The four-week moving average (4wma) was up 0.8% from 2019 and down 3.2% from 2018, declines from the respective 1.4% gain and 1.5% shortfall of the previous week (chart). Year-to-date, however, volume was down 4.0% from 2019 and 5.5% from 2018, up from the previous week’s shortfall’s of 4.1% and 5.6%, respectively.

Volume totaled 43,167 carloads, down 0.7% year-over-year (YOY) and up 1.9% from the previous week, according to data released on 5 November by the Association of American Railroads (AAR).

Chemical railcar traffic in the United States contributed 30,535 carloads to the total, down 3.9% YOY and down 1.3% from the previous week. For the year to date, US chemical railcar traffic is down 4.8%.

Canadian chemical rail traffic totaled 11,658 carloads, up 7.6% YOY and up 11.1% from the previous week. For the year to date, Canadian chemical railcar traffic is down 1.7%.

Chemical railcar traffic in Mexico totaled 974 carloads, a YOY increase of 12.9% and a sequential increase of 4.5%. For the year to date, Mexican chemical railcar traffic is down 5.1%.

As MRC informed earlier, 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.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC

MOSCOW (MRC) -- Venator (Wynard, UK) reports a third-quarter net loss of USD42 million, down from a loss of USD19 million in the year-ago quarter on lower volumes and utilization. Revenue totaled USD474 million, down 10% year-over-year (YOY) from USD526 million, said Chemweek.

Adjusted earnings per share came to a 17-cent loss, down from profit of 8 cents in the year-ago period and short of the average analyst estimate of a 12-cent loss as compiled by Refinitiv (New York). "I am pleased by the gradual recovery in demand for most of our products,” says Simon Turner, president and CEO. “We saw broad improvement in sales volumes resulting in an increase of 3% compared to the second quarter, notwithstanding a seasonally weaker third quarter and the impact of Hurricane Laura on our TiO2 [titanium dioxide] joint venture facility in Louisiana. Notably, our color pigments and timber treatment businesses continue to demonstrate resilience during the current challenging macro-economic environment."

Venator reported revenue of USD456 million for the second quarter and a net loss of USD19 million. TiO2 volumes increased 2% sequentially. "We continue to optimize our controllable cost structure and by year end will have completed the actions necessary to deliver the full benefits of our 2019 business improvement program," says Turner. "In addition, we implemented non-recurring COVID-19 related cost saving initiatives of approximately $30 million in 2020. We have also identified cost saving and operational improvements from which we expect to deliver annual savings greater than USD55 million in 2022 compared to 2019."

The titanium dioxide segment turned in sales of USD343 million, down 13% YOY. Venator attributes the result mainly to an 11% decline in TiO2 sales volumes across all product categories and regions, most notably in Europe on the impact of COVID-19, and in North America owing to the impact of Hurricane Laura. Adjusted EBITDA totaled $21 million, down 59% YOY, mainly on lower revenue as well as lower plant utilization, which resulted in higher production costs.

The performance additives segment had revenues of USD131 million, up 1% YOY as the benefits of local currency selling price, mix, and currency translation offset a 4% decrease in sales volumes. Volumes dropped on lower demand for functional additives, a consequence of the COVID-19 pandemic. Adjusted EBITDA totaled $5 million, down 62% YOY on lower plant utilization.

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) -- German chemicals maker BASF said on Thursday it had put a project to build a petrochemicals complex in India worth up to USD4 billion on hold due to the economic uncertainty caused by the COVID-19 pandemic, said Reuters.

BASF signed a memorandum of understanding with Abu Dhabi National Oil Company (ADNOC), Adani Group and Borealis AG in October 2019 to evaluate a collaboration to build the chemical site in Mundra, in India’s Gujarat state.

“The global economic uncertainties caused by the pandemic have led the partners to review the timing for undertaking this investment,” BASF said in a statement. “Despite all attempts to optimize the scope and the configuration, the project has been put on hold."

Under the plan, the partners wanted to build a plant to produce propylene from propane gas to be supplied by ADNOC. It would have been the first plant in the world to be fully powered by renewable energy and BASF’s biggest investment so far in India.

BASF said the partners remained convinced that India was a good place to invest and had agreed to periodically explore market conditions and discuss any opportunity that might arise over time.

As MRC informed earlier, BASF is planning to restart its 300,000-metric ton/year toluene diisocyanate (TDI) plant in Ludwigshafen, Germany, by the end of October. The company declared force majeure on 31 August after experiencing technical problems.

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.

BASF-YPC Company Limited (BASF-YPC) is a 50-50 joint venture between BASF and Sinopec, founded in 2000, with a total investment of approximately USD5.5 billion. The integrated petrochemical site produces about three million tons of high-quality chemicals and polymers for the Chinese market annually. The products serve the rapid-growing demand in multiple industries, including agriculture, construction, electronics, pharmaceutical, hygiene, automotive and chemical manufacturing. All BASF-YPC plants are interconnected in order to use products, by-products and energy in the most efficient way, to save cost and to minimize the environmental impact. BASF-YPC posted sales of approximately CNY 19.6 billion in 2019 and employed 1,942 people as of the end of the year.
MRC