Lotte Chemical Titan shut No. 3 LLDPE unit in Indonesia for maintenance

MOSCOW (MRC) -- PT Lotte Chemical Titan Nusantara has reportedly shut its No. 3 linear low density polyethylene (LLDPE) line in Indonesia last week for a 20-30 day maintenance, while the high density polyethylene (HDPE) unit is unaffected by the overhaul, reported CommoPlast with reference to market sources.

According to market sources, the line was facing issues in producing higher Melt Index (MI) cargoes such as LLDPE roto-molding grade.

This line has an annual capacity of 200,000/year.

As MRC informed earlier, Lotte Chemical Titan last shut down its No. 3 LLDPE unit in Indonesia from December, 2019, 2020 to 20-22 January, 2020, owing to economic fundamentals. Located at Cilegon, Indonesia, the No. 3 unit has a production capacity of 200,000 mt/year.

We remind that PT Lotte Titan Nusantara, Indonesia shut its LLDPE units at Cilegon from 4 to 12 August, 2019, owing to power failure. Located in Cilegon, Indonesia, the No. 1, 2 and 3 units have a production capacity of 125,000 mt/year, 125,000 mt/year and 200,000 mt/year, respectively.

Besides, PT Lotte Titan Nusantara Indonesia restarted its No. 1 LLDPE unit at Cilegon in early December, 2019. The unit was shut owing to shortage of feedstock in early-November, 2019.

According to MRC's ScanPlast report, September LLDPE shipments to Russia increased to 19,110 tonnes from 17,330 tonnes a month earlier. Russia's overall LLDPE shipments totalled 276,330 tonnes in the first nine months of 2020, down by 9% year on year.

Lotte Chemical Titan produces Malaysia's most comprehensive portfolio of olefins and polyolefins which contribute to the enhancement of everyday life. Lotte Chemical Titan's production site in Malaysia consists of eleven process facilities, two co-generation plants and three tank farms. They are located on 2 sites in Pasir Gudang and Tanjung Langsat in the state of Johor. In 2006, Lotte Chemical Titan acquired PT Lotte Chemical Titan Nusantara, Indonesia’s first and largest polyethylene plant in the country. This acquisition boosted the polyolefins capacity by approximately 50%, thus making the company one of the largest producers in South East Asia. Lotte Chemical Titan was acquired by Lotte Chemical Corp., forming part of the Lotte conglomerate of Korea, in 2010. The company thus became one of Lotte Chemical Corp.’s largest overseas subsidiaries.
MRC

PP imports to Ukraine up by 1% in Jan-Oct 2020

MOSCOW (MRC) -- Overall polypropylene (PP) imports into the Ukrainian market totalled slightly over 113,000 tonnes in the first ten months of 2020, up by only 1% year on year. At the same time, only demand for homopolymer of propylene (homopolymer PP) increased, as per MRC's DataScope report.

October PP imports to Ukraine dropped to 11,800 tonnes from 12,500 tonnes a month earlier, demand for propylene copolymers subsided. Overall imports of propylene polymers reached 113,000 tonnes in January-October 2020, compared to 112,300 tonnes a year earlier. Demand for all grades of propylene polymers decreased, whereas demand for homopolymer PP increased.

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


October imports of homopolymer PP to the Ukrainian market were 9,500 tonnes versus 9,000 tonnes a month earlier, local companies increased their purchasing of PP in Saudi Arabia. Overall imports of homopolymer PP imports reached 86,800 tonnes in January-October 2020, compared to 85,600 tonnes a year earlier.

Last month's imports of block copolymers of propylene (PP block copolymers) were about 1,000 tonnes, compared to 1,700 tonnes in September, demand for injection moulding PP block copolymer subside. About 11,400 tonnes of PP block copolymers were imported in the first ten months of 2020, compared to 12,100 tonnes a year earlier.

October imports of stat-copolymers of propylene (PP random copolymer) fell to 1,100 tonnes from 1,600 tonnes a month earlier, local companies reduced their purchasing of pipe grade PP random copolymers. Overall imports of PP random copolymer reached 12,900 tonnes in January-October 2020, compared to 13,100 tonnes a year earlier.

Overall imports of other propylene copolymers totalled about 1,900 tonnes over the stated period.

MRC

European producers roll over October PE prices for November shipments to CIS markets

MOSCOW (MRC) -- The November contract price of ethylene was agreed in Europe at the previous month's level. On the back of that, many European producers rolled over their October export polyethylene (PE) prices for November shipments to CIS countries, according to ICIS-MRC Price report.

Negotiations over November prices of European PE began in the middle of last week. All market participants said European producers maintained their October export prices of ethylene polymers the same for this month's shipments, and only in rare cases, prices rose by EUR10/tonne.

Deals for November shipments of low density polyethylene (LDPE) were discussed in the range of EUR840-920/tonne FCA, whereas last month's deals were done in the range of EUR830-920/tonne FCA.

Deals for high density polyethylene (HDPE) were negotiated in the range of EUR820-900 per tonne FCA, which virtually corresponds to the October deals.

Many buyers reported a sufficient supply of PE from virtually all European producers with a few exceptions.
MRC

MEGlobal announces ACP for December 2020

MOSCOW (MRC) -- MEGlobal has nominated its December monoethylene glycol (MEG) Asian Contract Price (ACP) at USD660/tonne, up by USD10/tonne from November ACP, said the company.

Before that MEGlobal announced that its Asian Contract Price (ACP) for monoethylene glycol (MEG) was USD650/MT CFR Asian main ports for arrival November 2020. The November 2020 ACP reflects the short term supply/demand situation in the Asian market.

The price is on a CFR (cost and freight) Asia basis. Spot MEG supply remained limited as most producers were running their units at reduced rates to cope with poor margins.

As it was written earlier, MEGlobal announced that its Asian Contract Price (ACP) for monoethylene glycol (MEG) was USD640/MT CFR Asian main ports for arrival October 2020.

MEG is mainly used in the production of polyester fibres, resins and films (around 80% of global consumption), followed by use in polyethylene terephthalate (PET) resin. It is also used as automotive antifreeze.

As per MRC' ScanPlast, calculated consumption of polyethylene terephthalate (PET) reached 52,71o tonnes in September 2020, down 27% compared to the same time a year before. Total consumption of PET in Russia in the nine months of 2020 reached 530,750 tonnes, down 22% than the same indicator last year.

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

Chinese October PDH plant run rates hit 13-month high at 91% amid strong margins

MOSCOW (MRC) -- China's propane dehydrogenation plants operated at an average of 91% of capacity in October, up from 86% in September and the highest rate in 13 months, S&P Global calculations based on raw data from domestic information provider JLC showed Nov. 12.

No PDH plants were undergoing maintenance in October and profitable processing margins also encouraged plants keep rates high in the month, market sources said.

Zhejiang Satellite and Hebei Haiwei, which had both run at lower rates in September due to scheduled and unscheduled maintenance, raised their operating rates in October after completing the works. Zhejiang Satellite ran at full capacity in October, up from 78% in September, while Hebei Haiwei run at 94%, up from 75%, JLC data showed.

A third operator, Zhejiang Petrochemical, raised the operating rate of its newly launched 600,000 mt/year PDH unit to 70% in October from 61% in September.

For November, as MRC wrote before, Fujiang Meide in southeast China is expected to start up its 660,000 mt/year PDH plant by the end of the month, and no maintenance was heard scheduled at existing PDH plants, according to JLC and market sources.

The monthly PDH plant run rate survey covers 11 PDH units in China with a combined propylene production capacity of 6.71 million mt/year, which can use up to 8.05 million mt/year of propane as feedstock at full capacity, according to Platts calculations.

Chinese PDH units' theoretical processing margin was estimated at Yuan 1,686/mt (USD250/mt) in October, down slightly from Yuan 1,840/mt in September, according to Platts calculations.

PDH plants normally process propane feedstock bought a month earlier, which means the import cost of their October propane feedstock was based on September prices, market sources said.

In addition, Chinese PDH units typically secure half their propane requirements under term contracts and the rest from the spot market.

Platts estimates October import costs for term contract propane cargoes at Yuan 3,324/mt after adding taxes and fees, based on Saudi Aramco's September propane contract price of USD365/mt, down 2.3% month on month due mainly to changes in currency conversion and freight rates.

October import costs for spot propane cargoes were estimated at Yuan 2,858/mt after adding taxes and fees based on the average of Platts CFR South China propane assessments in September, edging down 1.8% on month.

China's domestic propylene prices also edged lower in October, with the market level averaging Yuan 6,895/mt in eastern China, down 3.3% from September, Platts calculations based on JLC data showed.

Domestic supply of propylene will rise further as several new PDH plants start operations, with the additional supply expected to weigh on the processing margins of all PDH plants in the coming months, market sources said.

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

According to MRC's ScanPlast report, 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