Wanhua Chemical reached on-spec ethylene cargoes at new cracker in China

Wanhua Chemical reached on-spec ethylene cargoes at new cracker in China

MOSCOW (MRC) -- Wanha Chemical has started up the LPG feed steam cracker in Yantai, China earlier this month and managed to produce on-spec ethylene cargoes on 9 November 2020, reported CommoPlast.

The cracker has an annual capacity of 1 million tons/year of ethylene, 530,000 tons/year of propylene, and 50,000 tons/year of butadiene.

The cracker is part of the company’s newly constructed petrochemical complex. Downstream units at the same site are integrated with the cracker, however, these units have yet to come online.

The conpany's petrochemical plants will include the following production capacities: 400,000 mt/year of PVC, 150,000 mt/year of ethylene oxide (EO), 350,000 mt/year of high density polyethylene (HDPE), 450,000 mt/year of linear low density polyethylene (LLDPE) an 300,000 mt/year of polypropylene (PP).

As MRC wrote previously, in January, 2020 Wanhua Chemical Group disclosed plans for a second ethylene cracker project at its Yantai, China, site with local government officials. The project will include a 1.2-million metric tons/year (MMt/y) ethylene unit; pyrolysis gasoline hydrogenation; aromatics extraction; and production facilities for butadiene, HDPE, low-density (LDPE), polyethylene (PE) plastomers and elastomers, PP, and other derivatives. Timing and other details were not disclosed. The second ethylene project will use naphtha and C4s as feedstock.

Ethylene and propylene are feedstocks for producing 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

MOL Group announced its financial results for the third quarter of 2020

MOL Group announced its financial results for the third quarter of 2020

MOSCOW (MRC) -- MOL Group announced its financial results for the third quarter of 2020, said the company.

During the pandemic and economic crises, Clean CCS EBITDA strongly rebounded from the Q2 lows and came in at USD 610mn in Q3 2020, only 12% lower than in the same period last year.

This result brought Q1-Q3 2020 EBITDA to USD 1.59bn, 14% lower year-on-year, implying full year 2020 EBITDA likely to be at the higher end of the guidance range, around USD 1.9bn. Simplified free cash flow jumped in Q3 to USD 306mn on continued capex discipline, bringing year to date simplified free cash flow to USD 662mn, 42% higher than in the first three quarters of last year. Organic capital expenditure was down by 33% in the first three quarters, reflecting strong capex control as well as some COVID-19-related slowdown.

Downstream segment Clean CCS EBITDA strongly rebounded and nearly doubled from the Q2 lows but remained 26% weaker than in 2019 due to depressed refinery margins and slightly weaker petchem margins. The polyol project exceeded 70% overall completion at the end of Q3, although progress is somewhat behind schedule as a result of the pandemic situation. Pandemic protocols have been introduced to mitigate the risk of infection within the construction community and to safeguard business continuity. In Q3, a new 20kt rubber bitumen plant, for recycling tire waste, has been completed in Hungary.

As MRC informed before, MOL Petrochemicals Company (formerly known as TVK, part of the MOL Group), the only Hungarian producer of olefins and polyolefins, announced force majeure on the supply of polypropylene (PP) from plant No. 4 at the petrochemical complex in Tiszaujvaros (Tiszaujvaros, Hungary) on 23 September 2019.

We remind that in November 2019, Total disclosed that itis evaluating construction of a new gas cracker at its Deasan, South Korea, joint venture (JV) with Hanwha Chemical.

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.

MOL Group operates three refineries and two petrochemicals plants under integrated supply chain management in Hungary, Slovakia and Croatia, and owns a network of 1940 service stations across 10 countries in Central & South Eastern Europe.
MRC

OPEC cuts global oil demand forecasts, as Algeria says output curbs may deepen

OPEC cuts global oil demand forecasts, as Algeria says output curbs may deepen

MOSCOW (MRC) -- OPEC has turned more bearish on global oil demand due to the second wave of COVID-19 infections, providing sobering analysis as a key minister said Nov. 11 that the producer group and its allies may consider deepening its production cuts in 2021 to shore up the market, reported S&P Global.

In its latest oil market forecast, OPEC's analysis arm revised down its projections of global demand by 280,000 b/d for 2020 and by 580,000 b/d for 2021. OPEC was more mixed in its outlook last month, when it slightly raised its 2020 demand estimate, citing economic growth in China.

"These downward revisions mainly take into account downward adjustments to the economic outlook in OECD economies due to COVID-19 containment measures, with the accompanying adverse impacts on transportation and industrial fuel demand through mid-2021," OPEC said in the report.

The new outlook puts pressure on members of the OPEC+ alliance, in their role as the oil market's swing producers, to reconsider plans to add output to the market starting in January.

The market appears to be largely expecting OPEC+, which meets Nov. 30-Dec. 1, to extend its current 7.7 million b/d in output cuts through at least the first few months of 2021, instead of tapering them to 5.8 million b/d as scheduled.

Algerian energy minister Abdelmajid Attar, who holds OPEC's rotating presidency, said the cuts could even be increased, confirming what several delegates have told S&P Global Platts in recent days.

Speaking at a Gas Exporting Countries Forum ministerial roundtable convened ahead of the body's formal meeting Nov. 12, Attar said OPEC and its partners remained committed to taking action to prevent a slide in prices, which have hovered around $40/b over the past few weeks before rallying close to USD45/b on news that a potential COVID-19 vaccine was showing promising results.

"This includes the possibility of extending today's production adjustment into 2021 as well as deepening this adjustment should market conditions so require," he said.

OPEC pegged global demand for its crude for 2020 at 22.1 million b/d, about 300,000 b/d lower than last month's forecast. For 2021, the call on OPEC crude rises to 27.4 million b/d, a 600,000 b/d downward revision from the previous forecast.

OPEC pumped an average of 24.39 million b/d in October, according to secondary sources used by the organization to track output.

That indicates some room for the organization to raise its quotas, but surging production from Libya and the uncertain prospects for the global economy, even with a COVID-19 vaccine potentially available in the next few months, will likely keep ministers erring towards the side of caution, OPEC+ officials have said.

Libyan production almost tripled in October to 454,000 b/d, according to secondary sources. The country's state oil company reported that as of Nov. 7, output had reached more than 1 million b/d.

A key OPEC+ monitoring committee, co-chaired by Saudi Arabia and Russia, will convene online Nov. 17 and provide the first indications of how the coalition may decide on 2021 production policy.

The OPEC report estimated non-OPEC supply will average 62.73 million b/d for 2020 and 63.68 million b/d for 2021, the latter figure a 60,000 b/d upward revision from last month's outlook.

World oil inventories fell in September for the third consecutive month, according to the report, to hit 3.18 billion barrels, still 211.9 million barrels above the five-year average that the OPEC+ alliance has said it is targeting with its production cuts.

As MRC informed previously, global oil demand may have already peaked, according to BP's latest long-term energy outlook, as the COVID-19 pandemic kicks the world economy onto a weaker growth trajectory and accelerates the shift to cleaner fuels.

Earlier this year, BP said the deadly coronavirus outbreak could cut global oil demand growth by 40 per cent in 2020, putting pressure on Opec producers and Russia to curb supplies to keep prices in check.

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).

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

Solvay has received a binding offer from Composites One

MOSCOW (MRC) -- Solvay and Composites One have entered an exclusive negotiation period for the acquisition of Solvay’s Process Materials (PM) business by Composites One, said the company.

The PM business provides a broad array of vacuum bagging materials including bagging films, breather fabrics, release films and fabrics, peel plies, sealant tapes plus valves and hoses. Additionally, the business is a leader in the manufacture of tailored consumable kits and hard and soft tooling.

Carmelo Lo Faro, president of Solvay Composite Materials Global Business Unit, said: “Solvay has significantly strengthened the Process Materials business over the last several years. The proposed transaction will deliver value for our shareholders and enable Solvay to continue focusing on our core composites technology portfolio. The Process Materials employees and customers will greatly benefit from this business being part of Composites One’s established and recognized distribution infrastructure. Composites One’s intent is to grow and invest in the business, fostering innovation, reliability and customer service and building on the excellent work our teammates have done so far."

"As their distributor for over two years, we have worked closely with Solvay’s knowledgeable leadership and team members and have seen their focus on serving customers – we know this business is an excellent addition to Composites One. Through their outstanding team, the Process Materials business provides us with a global connection to wind and aerospace customers,” commented Steve Dehmlow, CEO of Composites One.

The completion of the transaction, expected early Q1, would remain subject to following social processes and approval by the relevant regulatory authorities.

As MRC informed earlier, Solvay SA said it will close two plants making composites for Airbus SE and Boeing Co. in a sign the deepening aerospace crisis is hitting suppliers of even the latest aircraft materials. The Belgian chemical maker is adding to savings achieved in the past year following the grounding of Boeing’s 737 Max. The latest measures from Solvay Chief Executive Officer Ilham Kadri will lead to about 570 job cuts, or 20% of the workforce in Solvay’s composites unit.

As MRC reported earlier, in August, 2020, through the acquisition of the Solvay polyamide (PA) business, BASF enhanced its R&D capabilities in Asia Pacific with new technologies, technical expertise, and upgraded material and part testing services. BASF is planning to integrate the R&D centers from Solvay into its R&D existing facilities in Shanghai, China, and Seoul, Korea. The enhanced capabilities will boost BASF’s position as a solution provider to develop advanced material solutions for key industries.

We remind that BASF-YPC, a 50-50 joint venture of BASF and Sinopec, undertook a planned shutdown at its naphtha cracker on 30 April 2020. The company initially planned to start turnaround at the cracker on April 5, 2020. The plant remained under maintenance unitl 18 June, 2020. Located in Jiangsu, China, the cracker has an ethylene capacity of 750,000 mt/year and propylene capacity of 400,000 mt/year.

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.

Solvay S.A. is a Belgian chemical company, one of the largest in Europe and the world with a market share of 27%, is the second largest PVC producer and the fourth largest caustic soda producer in Europe. The company's activities are concentrated in two main areas - the chemical sector (plastics production) and the pharmaceutical sector.
MRC

Evonik successfully completes acquisition of Porocel

MOSCOW (MRC) -- Evonik completed the acquisition of the Porocel Group, Houston (USA), for USD 210 million, as planned, said Myconvernto.

Contributions from the new business will therefore be included in Evonik’s sales and earnings as of this day. The company with its approximately 300 employees and the corresponding production facilities will be integrated into the Smart Materials division of Evonik. Porocel's global activities in the field of desulfurization catalyst rejuvenation, sulfur recovery catalysts and alumina based purification adsorbents represent an expansion of Evonik's catalyst portfolio.

The intensive planning work that has been done for the integration into the business line Catalysts over the past few months will be put into action straight away. Porocel's customers will continue to receive the same high-quality products and services they have come to expect via the established sales channels.

Claus Rettig, head of the Smart Materials division, sees additional growth potential in Evonik's global catalyst business through the transaction. “The Catalysts business line is an important driver of growth and sustainability within Evonik's Smart Materials division. With the targeted acquisition, we expand our competencies with new technologies and products. In this way, we enable our customers to make their processes and products more efficient and resource-saving,” said Rettig. "The global presence of Porocel along with its available production capacities will further strengthen the worldwide presence of Evonik's catalyst activities."

"With the technology for the highly efficient rejuvenation of desulfurization catalysts, Evonik will be able to serve the growing market for low-sulfur fuels. Catalyst rejuvenation reduces CO2 emissions, contributes to sustainability and transition to circular economy thus enabling the reduction of the carbon footprint. Porocel represents a decisive milestone for the Catalysts business line and opens up a new horizon for growth,” says Sanjeev Taneja, head of Evonik's Catalysts business line at Evonik.

For the financial year 2019, Porocel generated sales of approximately US$ 100 million and EBITDA of about USD 23 million in 2019. The EBITDA margin at around 23 percent is above Evonik's target range of 18-20 percent.

As MRC reported before, Dow and Evonik have recently entered into an exclusive technology partnership. Together, they plan to bring a unique method for directly synthesizing propylene glycol (PG) from propylene and hydrogen peroxide to market maturity.

We remind, construction work on the largest investment to date by the specialty chemicals company Evonik in Germany, at more than EUR400 million, is progressing well. The first plant was completed on schedule in mid-October and is currently being commissioned. Further plants will follow by the first quarter of 2021, with full completion expected in the first half of 2021.

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

According to MRC's ScanPlast report, 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.

Evonik is one of the world leaders in specialty chemicals. The focus on more specialty businesses, customer-oriented innovative prowess and a trustful and performance-oriented corporate culture form the heart of Evonik’s corporate strategy. They are the lever for profitable growth and a sustained increase in the value of the company. Evonik benefits specifically from its customer proximity and leading market positions. Evonik is active in over 100 countries around the world with more than 36,000 employees.
MRC