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

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

MOSCOW (MRC) -- SRF Limited., an industrial and specialty intermediates manufacturer announced its results for the second quarter ended September 30, 2020, reported Kemicalinfo.

The company’s net profit increased 78% to Rs 315.2 crores for the period ended September 30, 2020 as against net profit of Rs 177.09 crores for the previous quarter.

Net sales grew 36% to Rs 2100.83 crores during the period ended September 30, 2020 as compared to Rs 1545.15 crores during the previous quarter.

The company’s net profit grew 4.7% to Rs 315.2 crores for the period ended September 30, 2020 as against net profit of Rs 301.13 crores for the prior-year quarter.

Net sales increased 20.9% to Rs 2100.83 crores during the period ended September 30, 2020 as compared to Rs 1737.8 crores during the prior-year quarter.

The company’s net profit marginally increased 0.4% to Rs 492.29 crores for the 6 months period ended September 30, 2020 as against net profit of Rs 490.35 crores for the prior-year 6 months period.

Net sales grew 4.1% to Rs 3645.98 crores during the 6 months period ended September 30, 2020 as compared to Rs 3501.09 crores during the prior-year 6 months period.

Chemicals Business segement sales were up 30% to Rs 881 crore as compared to Rs 678 crore in the corresponding period of the previous year.

The Specialty Chemicals Business reported a robust performance on the back of higher capacity utilization of dedicated and multipurpose plants, which led to better operating leverages and the expansion of overall margins. Sales of the Fluorochemicals Business remained muted owing to weak demand for refrigerants from the automobile and airconditioning segments and low prices of refrigerants globally.

Packaging Films Business segment sales were up 26% to Rs 833 crore as compared to Rs 663 crore in the corresponding period of the previous year.

The Packaging Films Business performed exceedingly well with expanded margins when compared with corresponding period of the previous year, and better capacity utilizations post the commissioning of BOPET film capacities in Thailand and Hungary.

“We have had an outstanding quarter by all standards led by our Packaging Films and Specialty Chemicals businesses. Going forward, the margins of the Packaging Films Business will soften. Having said that, I am confident that the momentum in our other businesses will ensure that we have a good year,” Managing Director, Ashish Bharat Ram said.

As MRC informed before, the Board of Directors of SRF Ltd at its meeting held on November 04, 2020, approved Setting up of a second BOPP Film Line & Metallizer at Indore either directly or through a wholly owned subsidiary.
The existing capacity is 45,000 MTPA and the existing capacity utilization is 100% on product mix basis. 60,000 MTPA of additional capacity is proposed at an outlay of Rs. 424 crore through mix of debt and internal accruals.
The new capacity should go on stream within 20 months.

Accoring to MRC's ScanPlast report, Ufaorgsintez (UOS, Bashneft's petrochemical asset) has resumed its polypropylene (PP) production after a shutdown for maintenance. The plant"s customers said Ufaorgsintez had resumed its PP output since 13 October after the shutdown for a scheduled turnaround. The outage was quite long and started on 12 September. Ufaorgsintez's overall PP production capacities are 120,000 tonnes/year.
MRC

MOSCOW (MRC) -- China's Fujian Meide Petrochemical, a wholly owned subsidiary of China Flexible Packing Group,
is expected to start up its newly-built propane dehydrogenation (PDH) plant in Jiangyin, Fujian province, by the end of this month, reported S&P Global with reference to market sources.

The new PDH with the capacity of 660,000 mt/year was originally scheduled to start up in the first half of February, 2020, then - in the second half of February. High cost of feedstock propane was the cause of the delay.

Afterwards, the company postponed the start until June and then - until July, afterwards - until September and then delayed the start-up to October, 2020.

Separately, no maintenance was heard scheduled at the company's existing PDH plants in October this year.

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

MOSCOW (MRC) -- Air Products reported net income of USD495 million for its fiscal fourth quarter ended 30 September, down 5% year-on-year (YOY) on lower merchant volumes due to COVID-19 impacts, said Chemweek.

Sales were USD2.32 billion, up 2% YOY as 2% higher pricing and 1% favorable currency more than offset 1% lower energy pass-through. Reported adjusted earnings were USD2.19, down 4% YOY and 4 cts below analyst estimates as reported by Zacks Investment Research.

Volume overall was roughly flat YOY as plant startups, acquisitions and increased sales of equipment offset shortfalls attributable to COVID-19. Volumes were up 8% sequentially from second-quarter levels on sale of equipment and improved merchant volumes as economies began to improve.

Air Products said it would not provide fiscal 2021 earnings or capital spending guidance, citing uncertainty related to a “deepening” COVID crisis. "We are not shying away from guidance, but we are being very open that we just don't know as we sit here today in terms of what the course of economic activity will be," said Air Products chairman and CEO Seifi Ghasemi. Air Products gases revenues are split 52% onsite and 48% merchant. The "onsite business is doing well and we expect this to continue," Ghasemi said. Merchant business performance is mixed by region. Asia merchant volumes are roughly at pre-pandemic levels through the quarter so far, while Europe is down 5%-10%, and the Americas are down 5%, Ghasemi said.

Americas segment sales were USD912 million, down 3% YOY. Segment adjusted EBITDA of USD411 million was flat as higher pricing and a hydrogen acquisition were offset by lower volumes and higher planned maintenance activities. Volume was down 3% YOY and up 7% sequentially from the second quarter. Air Products says existing onsite business, about two-thirds of Americas sales, remains stable but COVID 19 has hurt merchant volumes.

Asia segment sales were USD714 million, down 2% YOY. Adjusted EBITDA was USD330 million down 7%. Asia volumes decreased 5% YOY due to continuing adverse effects of COVID-19, the impact of a customer outage, and the end of a short-term contract that contributed to prior-year results.

Europe, Mideast, and Africa (EMEA) sales were USD505 million, up 3% YOY. Adjusted EBITDA was USD200 million, up 4% YOY due to higher pricing and favorable currency, partially offset by lower volumes and increased costs. EMEA volumes were flat YOY despite weaker merchant demand.

As MRC reported earlier, in December 2014, SIBUR-Khimprom (a subsidiary of SIBUR Holding) and Air Products entered into an agreement to build a new air separation unit in Perm and to supply the facility with locally produced gases. The unit came on-stream in 2016. After the commissioning Air Products will supply industrial gases for SIBUR-Khimprom over the next 20 years.

As MRC informed earlier, Air Liquide finalised an agreement with Sasol to acquire the biggest oxygen production site in the world with a plan to reduce its carbon dioxide (CO2) emissions by 30%. After the announcement on July 29, the international major industry gas company has now entered into a business purchase agreement with Sasol to acquire the oxygen production site in Secunda, South Africa.

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.

Air Products is a world-leading industrial gases company in operation for nearly 80 years. Focused on serving energy, environment and emerging markets, the Company provides essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemical, metals, electronics, manufacturing, and food and beverage. Air Products is also the global leader in the supply of liquefied natural gas process technology and equipment. The Company develops, engineers, builds, owns and operates some of the world's largest industrial gas projects, including gasification projects that sustainably convert abundant natural resources into syngas for the production of high-value power, fuels and chemicals.
MRC