PVC imports to Ukraine fell by 30% in January-October, exports remained steady

MOSCOW (MRC) - Imports of suspension polyvinyl chloride (SPVC) into Ukraine decreased by 30% in the first ten months of this year, compared to the same period in 2019 and reached about 29,000 tonnes. Sales of Ukrainian PVC to foreign markets remained at the level of 2019, according to MRC's DataScope report.

Last month's suspension polyvinyl chloride (SPVC) imports into the Ukrainian market increased to 2,200 tonnes from 1,700 tonnes in September, with European PVC accounting for the decrease in shipments. Overall SPVC imports reached 29,000 tonnes in January-October 2020, compared to 41,300 tonnes a year earlier.

At the same time, the increased demand from the domestic market amid growing capacity utilisation of the Ukrainian producer kept export volumes at the level of the previous year. European producers with the share of about 80% of the total imports over the stated period were the key suppliers of PVC to the Ukrainian market. Producers from the USA with the share of about 17% were the second largest suppliers.

Last month, Karpatneftekhim decreased the volume of external sales, the export sales of Ukrainian PVC amounted to 11,900 tonnes against 13,400 tonnes in September. Overall, about 136,300 tonnes of PVC were shipped for export in January-October 2020, which in fact corresponded to the last year's figure.

MRC

November prices of European PP roll over from October for CIS markets

MOSCOW (MRC) -- The November contract price of propylene was agreed in Europe at the last month's level. Thus, many European producers rolled over their October export polypropylene (PP) prices for November shipments to the CIS countries, according to ICIS-MRC Price report.

Negotiations over November prices of European PP began in the middle of last week. All market participants said European producers rolled over their October export prices of propylene polymers for November shipments, but in some cases, prices still rose by EUR10/tonne or higher.

Deals for November shipments of homopolymer propylene (homopolymer PP) were discussed in the range of EUR840-900/tonne FCA, whereas last month's deals were done in the range of EUR830-900/tonne FCA. Deals for block copolymers of propylene (PP block copolymer) were negotiated in the range EUR920-980/tonne FCA.
MRC

Grace licenses UNIPOL to PT Pertamina Rosneft Pengolahan dan Petrokimia

MOSCOW (MRC) -- W. R. Grace & Co., a leading independent supplier of polyolefin catalyst technology and polypropylene (PP) process technology, has licensed its UNIPOL PP Process Technology to PT Pertamina Rosneft Pengolahan dan Petrokimia (PRPP), a joint venture between Indonesia’s PT Pertamina and Russia’s Rosneft Oil Company, said Hydrocarbonprocessing.

The UNIPOL® PP facility, located in Tuban, Indonesia, will include two lines, each designed to produce 580KTA for a total of 1160KTA of polypropylene.

The agreement includes a long-term catalyst supply contract and a license for Grace’s UNIPOL® PP UNIPPAC Process Control (UUPC) Software. This tailored package, in conjunction with the UNIPOL® PP process technology, guarantees the opportunity for PRPP and Grace to work closely together over the lifetime of the plant, resulting in a fully optimized solution.

Grace's all gas-phase UNIPOL® PP Process Technology and CONSISTA® 6th generation catalyst and donor technology provide the broadest range of PP homopolymers, random copolymers, and impact copolymers from a single catalyst. Grace’s patented advanced donor technology and UUPC Software deliver outstanding plant operability.

Kadek Ambara Jaya, PRPP President Director said, “We are excited to install the UNIPOL® PP Process Technology at our Tuban, Indonesia site. The mature technology, low investment, and the relationship with the Grace team all were factors in our decision to choose this technology. We are confident that, with Grace’s process technology and catalysts, we will provide our customers with the best possible polypropylene resin options in the region."

“Grace is excited to partner with PRPP on this significant, world-class project,” said Laura Schwinn, President of Grace’s Specialty Catalysts business. “PRPP will be able to meet growing demand for higher value polypropylene products using our best-in-class catalyst systems and proven UNIPOL® PP Process Technology."

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

McDermott earns next phase of Russian ethane cracker project from CC7

MOSCOW (MRC) -- McDermott International, Ltd announced it has secured the next phase of the ethane cracking project from China National Chemical Engineering & Construction Corporation Seven, Ltd (CC7), said Hydrocarbonprocessing.

In 2019, McDermott was awarded a contract for the extended basic engineering on the project. This has now been expanded to include the provision of the engineering and procurement early works package for all schedule critical equipment.

The project is the largest ethylene integration project in the world. Located near Russia's shores at the Gulf of Finland, the natural gas processing chemical plant, owned by Baltic Chemical Plant (BCP), will be comprised of two ethylene cracking trains with an annual capacity of 1.4 million tons each.

"The expansion of this award is a direct result of our execution performance to date and we will continue to drive excellent results to support CC7 and BCP in the development of this world-class project," said Tareq Kawash, Senior Vice President, Europe, Middle East and Africa. "From concept design to commissioning and start-up, McDermott is uniquely positioned to execute fully integrated ethylene projects."

Lummus Technology was previously awarded the Process Design Package Engineering on the project and the license for its olefin production and recovery technology. McDermott and Lummus work jointly on projects through a strategic agreement that leverages their respective strengths for customers.

The early works package will be executed from McDermott's offices in The Hague, the Netherlands and in Brno, Czech Republic.

As MRC informed earlier, in March 2020, McDermott International, Inc. announced that the company intends to move forward with the previously announced share and asset purchase agreement to sell all of the Lummus Technology business to a joint partnership between The Chatterjee Group and Rhone Capital (the "Joint Partnership").

According to MRC's ScanPlast report, September estimated LDPE consumption in Russia fell to 23,930 tonnes from 47,610 tonnes a month earlier. Russian producers reduced their domestic LDPE shipments due to shutdowns for maintenance at production capacities in Ufa, Tomsk and Kazan. Russia's estimated LDPE consumption totalled about 406,500 tonnes in January-September 2020, which virtually corresponded to the last year's figure.

McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world.
MRC

Henkel posts decline in adhesives revenue, organic sales for 2020 expected to drop

MOSCOW (MRC) -- Henkel delivered strong organic sales growth of 3.9 percent in the third quarter of fiscal 2020 – despite the continued challenging economic environment as a result of the COVID-19 pandemic, said Chemweek.

Group sales totaled around 5 billion euros, corresponding to a nominal change of -1.5 percent. At the beginning of October, Henkel published preliminary figures for its sales performance in the third quarter and presented its new guidance for fiscal 2020.

"The impacts of the global coronavirus crisis continue to determine the market environment. Nevertheless, Henkel achieved a good business performance in the third quarter, with all three business units contributing. This is evidence of our robust, diversified portfolio comprised of successful brands and innovative technologies for our customers in the industrial and consumer goods businesses. Furthermore, our additional investments in marketing, innovation and digitalization are paying off. Plus, we significantly expanded our digital sales in the third quarter, increasing their total sales share to more than 15 percent,” said Henkel CEO, Carsten Knobel.

"The good performance in the third quarter is also partly due to catch-up effects from the second quarter, where the negative impacts of the COVID-19 pandemic were particularly severe. But above all, it is the result of our strong global team, which in this unprecedented and challenging time for all of us, is showing enormous commitment as it continues to contribute to the long-term success of Henkel."

Henkel performed well in this challenging market environment in the third quarter. The Adhesive Technologies business unit was able to record a recovery in demand across all business areas compared to the second quarter and achieved positive organic sales growth overall compared to the same quarter of the previous year. In the Beauty Care business unit, the Hair Salon business also showed a recovery compared to the second quarter. Its organic sales development year on year was, however, slightly negative. Conversely, the retail business achieved very strong organic sales growth compared to the third quarter of 2019. With demand for laundry detergents and household cleaners remaining strong and thanks to catch-up effects from the second quarter, the Laundry & Home Care business unit was able to record significant organic sales growth, and thus continued its successful development.

"During the coronavirus crisis, we adapted flexibly and quickly to changes while continuing to vigorously pursue the agenda for purposeful growth that we introduced in March this year. With our new full-year guidance, we provided our expectations for our development over the remainder of the year. Although we assume that we will continue to feel the negative impacts of the pandemic in the fourth quarter, we do not expect to see further extensive lockdowns – such as those witnessed in the second quarter – in the core regions essential for Henkel. We are convinced that, with our strategic focus on purposeful growth, we are well positioned to emerge stronger from the crisis,” Knobel added.

In the third quarter of 2020, sales of the Henkel Group decreased nominally by -1.5 percent to 4,999 million euros. Organically (i.e. adjusted for foreign exchange and acquisitions/divestments), sales increased by 3.9 percent. At Group level, the increase was driven by volume, with price and volume developments differing between the business units. Acquisitions and divestments accounted for an increase of 0.1 percent in sales. Foreign exchange effects had a negative impact of -5.5 percent on the sales performance.

In the first nine months of 2020, sales decreased nominally by -4.5 percent to 14,485 million euros. Organically, Henkel registered a negative sales development of -2.1 percent, primarily due to volume effects. Over the first nine months of this year, price trends were only slightly negative. Henkel’s business performance was influenced, especially in the first six months of the year, by the negative impacts of the COVID-19 pandemic on its Industrial and Hair Salon businesses in particular. After recording the strongest decline in demand in the second quarter, Henkel’s businesses recovered significantly in the third quarter.

The emerging markets achieved organic sales growth of 8.8 percent in the third quarter. Organic sales development in the mature markets was positive at 0.6 percent. In the Western Europe region, sales declined organically by -1.2 percent year on year. By contrast, we were able to increase sales in the Eastern Europe region by 10.4 percent. In the Africa/Middle East region, we achieved organic sales growth of 13.9 percent in the third quarter of 2020. Organic sales growth was 2.9 percent in the North America region and 13.8 percent in the Latin America region. Organic sales development in the Asia-Pacific region was positive at 1.2 percent. In the first nine months of 2020, the emerging markets posted organic sales growth of 1.3 percent, whereas sales development in the mature markets was negative at -4.4 percent.

As MRC informed earlier, Henkel AG & Co. KGaA (Dusseldorf, Germany) announced that Henkel Adhesives Technologies has officially inaugurated its new production facility in Kurkumbh, India.

Henkel are also partnering with Borealis and plastics solutions company Borouge to develop flexible packaging solutions for detergents containing both virgin polyethylene (PE) and high amounts of post-consumer recyclate (PCR) in efforts to increase sustainability.

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