Trump administration asks court for extension

MOSCOW (MRC) -- The Trump administration has asked the U.S. Supreme Court for an extension to respond to a petition from oil refiners requesting that the court review a decision that cast doubt on a program exempting refiners from biofuel blending obligations, said Reuters.

The government’s request would push their response deadline to Dec. 14 from Nov. 12, according to a letter to the court. The request comes as the Trump administration has delayed a slew of decisions related to U.S. biofuel laws, choosing to wait until after the U.S. presidential election to decide on politically sensitive matters.

Under the U.S. Renewable Fuel Standard, refiners must blend billions of gallons of biofuels into their fuel, or buy credits from those that do. If refiners can prove the obligations would cause them financial harm, they can get waivers from their requirements.

The Trump administration has about quadrupled the number of exemptions it grants to refiners, angering farmers and ethanol producers, who say the waivers hurt demand for their products. The oil industry says the exemptions help against the too-pricey obligations.

In January, an appeals court handling a case initiated by the biofuel industry, ruled that waivers granted to small refineries after 2010 should only be approved as extensions. Because most recipients of waivers in recent years have not continuously received them year after year, the decision threatened to upend the waiver program.

Then in September, oil refiners petitioned the Supreme Court to review the decision. The administration’s request for an extension could postpone already delayed decisions around the RFS. The Trump administration has not decided how to handle exemptions for the 2019 compliance year. It also has yet to set volumes for next year’s biofuel blending mandates under the RFS ahead of a looming Nov. 30 deadline.

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 1,594,510 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) -- A new NexPET system from Husky Injection Molding Systems is described by the company as a game-changing mid-volume PET preform molding solution that can help producers introduce multiple new applications into the market quickly and cost effectively, said Canplastics.

The preform system benefits both established companies producing niche brands or smaller-run SKUs as well as emerging producers seeking a fast, low-risk entry into markets, officials with Bolton, Ont.-based Husky said in a statement. It also allows manufacturers to respond nimbly to shifting market trends, such as greater consumer demand for personalized products. COVID-19 has amplified this trend globally, said Robert Domodossola, president of Husky’s rigid packaging division. The pandemic has forced many producers to “rapidly adapt operations to scale up new applications like hand sanitizer, disinfectant, and other health, personal care, or cleaning related products,” said Domodossola.

The NexPET system can run up to a 48-cavity mold and is equipped with a number of productivity-enhancing features. According to Husky, advantages include: faster mold changeovers; different screw diameters to maximize production output flexibility; a Reflex PET clamp to distribute the right amount of force and maximize mold life;
rotating end-of-arm tooling with up to three cooling positions to ensure preforms are ejected at ideal temperatures;
intuitive, easy-to-use controls; adaptive system that automatically adjusts oil pressure to suit applications while conserving energy; capability to run recycled PET pellets and varying quantities of flakes.

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.

MRC

MOSCOW (MRC) -- U.S. refiner HollyFrontier Corp has posted a smaller-than-expected quarterly loss on the back of cost cuts and a recovery in fuel prices, said Hedocarbonprocessing.

Oil refiners have been forced to cut production and slash spending as they struggle with months of sluggish demand as coronavirus-led lockdowns wrecked the need for travel. While demand for fuel has gradually picked up with the reopening of economies, a resurgence in coronavirus infections has threatened the recovery.

The refiner said the amount of crude it processed rose 11.5% to 421,100 bpd in the third-quarter from the second, but was still 17% lower than a year earlier. It expects to run 360,000 bpd to 380,000 bpd of crude at its refineries in the current quarter.

The slump in demand for gasoline, coupled with investor push for clean energy, has pushed refiners to accelerate plans for retrofitting facilities to produce so-called renewable diesel made from cooking oil and fats. HollyFrontier said it would look heavily towards investing in its renewables business. It ran the last barrel of crude oil at Cheyenne refinery in Wyoming in August and had begun converting the facility to produce renewable diesel.

Last month, rival Valero raised its bet on the future of renewable diesel by allocating a larger portion of planned expenses to such projects, though it also cut its overall investment budget for the year. HollyFrontier now expects full-year capital expenditure to range between USD475 million and USD550 million, compared with its prior expectations of between USD525 million and USD625 million.

Its shares rose as much as 4.2% to USD19.51 after the company posted a loss of 41 cents per share, smaller than 53 cents loss expected by analysts, according to Refinitiv IBES.

We remind, HollyFrontier planned for its five refineries to run up to 81% of their combined throughput of 457,000 bpd in the third quarter of 2020. The refineries’ combined crude oil throughput will range between 340,000 and 370,000 bpd in the third quarter, Go said on a conference call with Wall Street analysts to discuss the company’s second-quarter results.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

ccording 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) -- LG Chem has reduced the operating rates at its polyvinyl chloride (PVC) unit in Yeosu prefecture by 30-40% following the shutdown at the upstream naphtha cracker that curbs the supply of ethylene feedstock, reported CommoPlast.

The PVC unit has an annual capacity of 610,000 tons/year and currently running at 60-70% rates.

The producer has not disclosed the timeline to when the unit could resume normal operating rates.

As MRC informed earlier, LG Chem took off-stream its 1.16 million tons/year naphtha cracker on 5 November, 2020, following a fire incident at the main control room. It is estimated that the cracker would remain shut for 20 days.

According to MRC"s ScanPlast report, Russia's overall PVC production totalled 718,500 tonnes in January-September 2020, down by 0.3% year on year. At the same time, only two producers managed to increase their PVC output.

LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.
MRC

MOSCOW (MRC) -- SIMONA AG plans to acquire 70 per cent of the ownership interests in MT Plastik AS, Duzce, Turkey. Established in 2007, MT Plastik is Turkey's market leader within the area of PVC foam sheets, said the company.

The products are used primarily in the field of digital printing, advertising and structural engineering. MT Plastik is a private owned company, employing around 50 people and generating revenue in excess of EUR11 million. The company exports approx. 60 per cent of its revenue, mainly to Europe. The planned acquisition is to be seen in the context of SIMONA's strategic realignment in Europe and will help to strengthen the Group's market position within the area of PVC foam products.

SIMONA wants to establish itself as Europe's market leader for PVC foam sheets with regard to quality, breadth of product portfolio and market share. In acquiring MT Plastik, a highly profitable and very well organised company with lean structures, SIMONA has laid the foundation. In addition, Turkey as a location and the high share of exports already achieved by MT Plastik gives access to other interesting markets in Europe and the Middle East.

The transaction combines the mature product portfolios of two companies with extensive experience and expertise. Customers will benefit from a greater focus on applications, a stronger market presence based on a dense network of competent distribution partners and improved logistics and services.

The existing owners of MT Plastik have committed themselves to the new alliance for the long term under the leadership of the current chairman and majority shareholder Tufan Kalkan and will retain 30 per cent of the interests.

Subject to the final approval of the antitrust authorities, the transaction is expected to be closed on 31 December 2020.

According to ICIS-MRC Price report, a shortage of PVC has remained in many regions of the world for the past few months because of scheduled and unscheduled shutdowns of the plants amid strong demand, and prices have broken records for the past few years. And this situation is reflected in the Russian market. In the autumn months, Russian producers virtually maintained their prices of suspension in dollars the same for the domestic market, whereas the weakening of the rouble against the dollar boosted prices for domestic consumers. Russian producers announced a price increase of on average of Rb3,000/tonne for November deliveries.
MRC