Output of polymer products in Russia up by 1.5% in January-October

MOSCOW (MRC) -- Russia's output of products from polymers grew in October 2020 by 6.3% year on year.
However, this figure increased by 1.5% year on year in the first ten months of 2020, reported MRC analysts.

According to the Russian Federal State Statistics Service, October production of unreinforced and non-combined films rose to 124,000 tonnes from 117,600 tonnes a month earlier. Output of films products grew in January-October 2020 by 8.5% year on year to 1 104,900 tonnes.

Last month's production of non-porous boards, sheets and films dropped to 39,100 tonnes from 39,300 tonnes in September. Thus, overall output of these products reached 350,300 tonnes over the stated period, up by 5.1% year on year.

October production of porous polymer boards, sheets and films was 36,500 tonnes, up by 14.5% month on month.
Overall output of these products reached 266,000 tonnes in the first ten months of 2020, compared to 228,000 tonnes a year earlier.

October production of plastic bottles and flasks decreased to 1.6 bln items from 1.71 bln items a month earlier.
Overall output of these plastic products totalled 17,95 bln units over the stated period, compared to 16,87 bln units a year earlier.

Last month's production of polymer pipes, hoses and fittings exceeded 69,000 tonnes versus 68,300 tonnes in September. Overall output of these products was 592,200 tonnes in January-October 2020, up by 9% year on year.
October production of sacks and bags from ethylene polymers reached 2,274,000,000 units, compared to 2,881,000,000 units a month earlier.

Overall output of these plastic products totalled 25,44 bln units in the first ten months of 2020, compared to 21,31 bln units a year earlier. Last month's production of linoleum and floor coverings was 17,4 mln square metres, compared to 15,4 mln square metres in September.

Overall output of these products totalled 133,6 mln square metres over the stated period versus 126,2 mln square metres a year earlier. October production of plastic windows and door blocks reached 2,762 mln square metres and 103,200 square metres, respectively, versus 2,915 mln square metres and 112,500 square metres a month earlier.
Overall output of these plastic products totalled 22,446,000 square metres and 840,500,000 square metres, respectively, compared to 20,666,000 square metres and 846,500 square metres a year earlier.
MRC

COVID-19 - News digest as of 25.11.2020

1. Asia Distillates-Gasoil cash discount narrows, cracks dip

MOSCOW (MRC) -- Asia's cash differentials for 10 ppm gasoil gained on Friday backed by a firmer deal in the physical market, while refining margins for the industrial fuel dipped amid concerns that near-term supplies would likely outweigh demand, reported Reuters. Cash differentials for gasoil with 10 ppm sulphur content were at a discount of 13 cents a barrel to Singapore quotes on Friday, compared with a 14-cent discount on Thursday. Refining profit margins, also known as cracks, for 10 ppm gasoil slipped 8 cents to USD4.97 a barrel over Dubai crude during Asian trading hours. The cracks, however, have gained 6.7% this week. With surging COVID-19 cases and renewed lockdowns in several countries, the industrial and transportation demand will come under further pressure, trade sources said. The front-month time spread for 10 ppm gasoil, which has remained in a contango structure since early August, traded at a discount of 14 cents per barrel on Friday, Refinitiv Eikon data showed.

MRC

Rocheleau and Nordson ramp up production to support massive buildup of COVID-Test

MOSCOW (MRC) --Rocheleau Tool & Die Co. has ordered dozens of Nordson Corporation’s Xaloy screws and barrels to equip blow molding machines for use by manufacturers of pipettes that are essential components of COVID-19 test procedures, said the company.

International suppliers of products for medical testing have invested heavily to expand production of plastic laboratory consumables to meet global demand for COVID-19 testing. For the manufacture of LDPE pipettes, Rocheleau has encountered a massive demand for its blow molding systems. Rocheleau is equipping this machinery with Xaloy® components from Nordson, including bimetallic barrels with X-800 linings and Fusion™ barrier screws.

The Xaloy Fusion screw was specified for the project because of its ability to maintain a consistently low melt temperature while producing high output rates, noted Rob Cook, Nordson manager of processor sales in the Americas. “While regrind based on blow molding trim is more sensitive to process variables than virgin resin, the Fusion screw ensures a uniform melt,” said Mr. Cook. “The low melt temperature permits shorter cooling times and more parts per minute, and it supports pipette manufacturers’ use of heat-sensitive additives for certain products without the need to change the equipment setup."

The X-800® lining for the Xaloy barrels is a nickel-based alloy with tungsten carbide that provides a longer working life than alternative carbide inlays.

Rocheleau’s drive to meet urgent demand for pipettes exemplifies the important role that plastics have played in combating COVID-19, said Mr. Rocheleau. “As a family-owned business, we are grateful for the opportunity to make an impact on the pandemic by addressing an urgent, global demand for pipettes. It has been very encouraging for our employees to make this happen, knowing that they have made a contribution to the fight."

Xaloy screws and barrels are basic components for the extrusion and molding of medical products, personal protection equipment, and packaging used for combating COVID-19, noted Seeni Congivaram, director of sales and marketing for Xaloy® products. “Today, tubing and connectors, blood bags, procedure kits, and other medical devices are playing critical roles in addressing the surge of hospital cases caused by the pandemic. Film and sheet products have been essential for preventing the spread of coronavirus infection. And packaging containers have made it possible for millions of people in lockdown to get fresh food and hot meals."

As MRC informed earlier, crude oil prices settled at multimonth highs Nov. 23 as demand outlooks improved amid reports of progress on a third COVID-19 vaccine. NYMEX January WTI settled 64 cents higher at USD43.06/b, and ICE January Brent was up USD1.10 at USD46.06/b.

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).

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, excluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC

Al-Hejailan Group and Dow announce joint venture

MOSCOW (MRC) -- Al-Hejailan Group and Dow announced an agreement to form a joint venture to design, build and operate a polyacrylic acid (PAA) and emulsion polymers plant in the Kingdom of Saudi Arabia, according to Hydrocarbonprocessing.

Al-Hejailan will hold a 75% stake in the joint venture, and Dow will have 25% ownership.

This partnership will enable Al-Hejailan and Dow to meet growing customer demand for coatings and water treatment applications in the Kingdom of Saudi Arabia and the broader Middle East region, as well as penetrate new markets.

The plant is expected to have a capacity of 40,000 metric tons per year and will be built and operated by Al-Hejailan Group in Plaschem Park. The facility will utilize Dow’s manufacturing technologies, and Dow will be responsible for the marketing of the plant’s production. Construction of the plant is expected to begin in 2021 and production is expected to come on-stream in 2023.

Faisal Al-Hejailan, chief executive officer of Al- Hejailan Group, said “At Al- Hejailan Group, we are excited about this investment, which fulfills an important milestone in our group’s overall strategy and drives towards the development of more robust and expansive downstream manufacturing capabilities in the Kingdom. It further strengthens our strategic partnership with Dow, as we work jointly to capture downstream opportunities that align with the Kingdom’s localization program and the overall Vision 2030 program.”

“This investment further reinforces Dow’s commitment to serving the region and promoting the downstream industry in the Kingdom of Saudi Arabia,” said Howard Ungerleider, president and chief financial officer for Dow. “This strategic partnership with Al-Hejailan builds on Dow’s long-standing presence in the Kingdom and supports the long-term growth potential we see for Dow and our partners throughout the region.”

As MRC reported earrlier, in September, 2020, Dow and Luhai, an integrated waste management company located in Xiamen, China, announced their collaboration to give plastics waste collected by Luhai a second life, thereby increasing the circularity of plastics in China. The agreement is in line with Dow’s new sustainability targets to Stop the Waste by enabling one million metric tons of plastic to be collected, reused or recycled through its direct actions and partnerships by 2030.

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.

The Dow Chemical Company is an American multinational chemical corporation. Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.
MRC

Crude settles higher as COVID-19 vaccine boosts outlooks

MOSCOW (MRC) -- Crude oil prices settled at multimonth highs Nov. 23 as demand outlooks improved amid reports of progress on a third COVID-19 vaccine, reported S&P Global.

NYMEX January WTI settled 64 cents higher at USD43.06/b, and ICE January Brent was up USD1.10 at USD46.06/b.

Oil prices moved higher overnight after European drug maker AstraZeneca announced its COVID-19 vaccine was 70% effective in late-stage trials. The news comes on the heels of the Pfizer and BioTech submitting a request Nov. 20 for Emergency Use Authorization of their COVID-19 vaccine to the US Food and Drug Administration. Those companies announced earlier in November their vaccine was more than 90% effective in late-stage trials.

"This is the third Monday in a row with positive vaccine news," OANDA senior market analysts Edward Moya said. "That's pretty much driving the trade."

Front-month WTI settled at the highest since Aug. 26, while front-month Brent futures were last higher March 5.

Brent futures saw additional upward pressure following an overnight missile attack on a Saudi Aramco distribution station north of Jeddah that caused a fuel tank to catch fire.

Yemen's Iran-backed Houthi rebels claimed responsibility for the attack, in a statement made by the militia's spokesperson on Twitter. Houthi general Yahya Sarea announced the distribution station was targeted with a Quds-2 missile.

The Jeddah incident follows an attempted attack Nov. 11, when Houthis directed two unmanned boats carrying explosives toward Aramco facilities in Jazan on the Red Sea.

Front-month Brent settled at a 2 cent/b premium compared with the second-month contract, flipping the front end of the forward curve to backwardation for the first time since June 26.

NYMEX December RBOB settled 2.88 cents higher Nov. 23 at USD1.2040/gal, and December ULSD was up 2.42 cents at USD1.3105/gal.

The IHS Markit US manufacturing PMI climbed to 56.7 for November, up from 53.4 in October and beating market expectations of a modest pullback in the index. The increase suggests that US economic recovery is extending into the fourth quarter even as rising COVID-19 cases force state and local governments to impose increasingly restrictive lockdown measures.

Still, gasoline cracks continued to weaken. The ICE New York Harbor RBOB crack against Brent fell to around USD4.27/ in afternoon trading, on pace for the lowest close since early August.

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).

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, excluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC