BASF announces second price rise within a month for neopentylglycol in Europe

MOSCOW (MRC) -- BASF has increased the price of neopentylglycol (NPG) in Europe with immediate effect or as existing contracts allow, the second price rise for the product within a month, said Chemweek.

The price for NPG has been hiked by EUR200/metric ton (USD242/metric ton). This is in addition to a price rise of EUR150/metric ton in Europe for the same polyalcohol product announced on 10 November, it says. NPG is used in applications such as the production of polyester and alkyd resins for various coatings and plastics.

We remind that BASF restarted its No. 1 steam cracker following a maintenance turnaround on September 30, 2019. The plant was shut for maintenance in mid-August, 2019. Located at Ludwigshafen in Germany, the No. 1 cracker has an ethylene production capacity of 235,000 mt/year and a propylene production capacity of 125,000 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 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
MRC

MOSCOW (MRC) -- Sabic says that Beiersdorf (Hamburg, Germany), a skin-care specialist, will be using certified renewable polypropylene (PP) from Sabic’s portfolio of second-generation bio-based materials to package its cosmetic products, as per the company's press release.

The new packaging products will be introduced in the market in 2021 and replace fossil-based virgin PP, the company says. Sabic’s certified renewable PP and polyethylene (PE) materials are derived from animal-free and palm-oil-free second-generation renewable feedstock, it says.

“The use of renewable raw materials in our product packaging represents a major lever for us to reduce our carbon emissions and improve our ecological footprint,” says Michael Becker, head/global packaging development at Beiersdorf. The company wants to make its packaging 100% refillable, reusable, or recyclable; increase the share of recycled material in plastic packaging to 30%; and reduce the use of fossil-based virgin plastic by 50% compared with 2019, by 2025, Sabic says.

From sourcing the raw feedstock to producing the polymers, each ton of Sabic’s bio-based PP and PE reduces CO2 emissions by an average of 4 kilograms compared with fossil-based virgin alternatives, the company says. It also cuts fossil depletion by up to 80%, according to a cradle-to-gate life-cycle analysis, Sabic says.

As MRC reported earlier, responding to calls from major brands in the consumer electronics business and electrics and electronics (E&E) industry as a whole for more sustainable materials, SABIC has announced that its engineering thermoplastics business is expanding its portfolio of CYCOLOY and LEXAN resins containing high levels of post-consumer recycled material (PCR). Typical applications for the portfolio will include consumer electronics and accessories such as chargers and adapters, printers, copiers and laptop housing.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.

Saudi Basic Industries Corporation (Sabic) ranks among the world's top petrochemical companies. The company is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
MRC

1. U.S. crude stocks soar 15 MMbbls amid record surge in net imports

MOSCOW (MRC) - U.S. crude oil stockpiles last week surged the most since April, jumping more than 15 million barrels, as imports rose and exports plunged, the Energy Information Administration said Reuters. The unexpected supply build and record rise in net imports stunned the oil market, which has been weighed down by low demand due to the coronavirus pandemic. "It defies the math that is in the market, for sure," said Bob Yawger, director of Energy Futures at Mizuho in New York. "Do U.S. refiners, at a time when they're closing refineries, need to increase imports by a million barrels a day? That's ridiculous."


MRC

MOSCOW (MRC) -- MEGlobal has announced its Asian Contract Price (ACP) for monoethylene glycol (MEG) to be shipped in January 2021, according to the company's press release.

Thus, on 11 December, the company said ACP for MEG would be at USD670/MT CFR Asian main ports for arrival in January 2021, up by USD10/MT from December.

The November 2020 ACP reflects the short term supply/demand situation in the Asian market.

As MRC reported earlier, MEGlobal announced its December ACP for MEG at USD660/MT CFR Asian main ports, up by USD10/tonne from November.

MEG is one of the main feedstocks for the production of polyethylene terephthalate (PET).

According to ICIS-MRC Price report, in Russia, December contract PET prices were in the range of Rb68,100-71,000/tonne CPT Moscow, including VAT. Most producers raised their prices of material last week and expect further price increases by the end of this month.

MEGlobal is a fully integrated supplier of monoethylene glycol (MEG) and diethylene glycol (DEG), collectively known as ethylene glycol (EG).
MRC

MOSCOW (MRC) -- Ineos Oxide, an Ineos subsidiary, has declared force majeure on propylene output from one of the two steam crackers at Dormagen, according to Chemweek with reference to sources' statement to OPIS Thursday.

This declaration was not confirmed by Ineos. There are two steam crackers at Dormagen, one with a capacity of 670,000 metric tons/year and another with a capacity of 530,000 metric tons/year, according to IHS Markit data.

"We don't comment on the day-to-day running of our plant," said an Ineos spokesperson in response to an OPIS email seeking confirmation of force majeure declarations, type of production affected, and delivery volumes.

As MRC reported earlier, Ineos has also decrared force majeure on ethylene oxide (EO) deliveries from its 280,000-metric tons/year plant in Cologne, Germany. "We heard about the Ineos ethylene oxide force majeure earlier in the week," a market source 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 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.

Ineos Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.
MRC