PVC production in Russia remained the same YOY in Jan-Oct 2020

MOSCOW (MRC) -- Russia's overall production of unmixed polyvinyl chloride (PVC) totalled 805,100 tonnes in January-October 2020, which corresponds to the last year's figure. At the same time, two producers managed to increase their PVC output, according to MRC's ScanPlast report.

October total production of unmixed PVC grew to 86,600 tonnes from 86,000 tonnes a month earlier, SayanskKhimPlast and Bashkir Soda Company increased their capacity utilisation. Overall output of polymer was 805,100 tonnes in the first ten months of 2020, which virtually corresponds to the last year's figure. Two producers increased their production, whereas two other manufacturers reduced their output.

The structure of PVC production by plants looked the following way over the stated period.


RusVinyl reduced its capacity utilisation in October and produced 30,100 tonnes of PVC, with emulsion polyvinyl chloride (EPVC) accounting for 2,800 tonnes, compared to 30,400 tonnes a month earlier. RusVinyl's overall output of resin reached 276,600 tonnes in the first ten months of 2020, compared to 286,600 tonnes a year earlier.

SayanskKhimPlast raised its capacity utilisation last month and produced about 28,000 tonnes of suspension PVC (SPVC), whereas this figure was 27,100 tonnes in September. The plant managed to produce 244,500 tonnes of PVC in January-October 2020, compared to 241,000 tonnes a year earlier.

Bashkir Soda Company (BSK) also increased its capacity utilisation in October, the final output reached 23,800 tonnes versus 21,500 tonnes a month earlier. The Baskhir plant's overall production of resin reached 221,300 tonnes in January-October 2020, up by 2% year on year.

Kaustik, Volgograd's PVC production was 4,800 tonnes last month because of the shutdown for maintenance in the first decade of October versus 7,000 tonnes in September. The plant's overall production of resin reached 62,700 tonnes in the first ten months of 2020 versus 65,300 tonnes a year earlier.

MRC

COVID-19 - News digest as of 10.11.2020

1. Eastman Chemical sales fall 8.7%, volumes improve sequentially

MOSCOW (MRC) -- Eastman Chemical reports third-quarter net earnings of USD165 million, down 38% year on year (YOY), as volumes remained lower YOY due to the COVID-19 pandemic but improved sequentially, reported Chemweek. Adjusted earnings of USD1.57/share was down 19.1% YOY but beat the analysts’ consensus estimate of USD1.37/share, as reported by Refinitiv (New York). Net sales fell 8.7%, to USD2.1 billion. Volumes fell 5% YOY, but in end markets hit hardest by the pandemic, such as transportation, building and construction, and consumer durables, showed signs of improvement over the second quarter.


MRC

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