Seqens details IPA expansion in France

MOSCOW (MRC) -- Seqens (Ecully, France) has confirmed details of its previously announced isopropyl alcohol (IPA) expansion at Roussillon, France, according to Chemweek.

The company says it will build an additional unit with capacity for 45,000 metric tons/year of IPA that is scheduled to be onstream early in 2022.

Demand for IPA has spiked this year because of the product's use as an ingredient in hand sanitizers. The capacity expansion “will guarantee domestic production, even in times of health crises, of one of the main solvents used in the production of intermediates and pharmaceutical active ingredients, as well as in hygiene, disinfection, and sanitizing products such as hydro-alcoholic solutions and gels,” Seqens says. “Thanks to this investment, Seqens will continue its downstream integration by offering a large range of IPA grades, from pharmaceutical, cosmetic, technical, and very recently, electronic and biocide grades, to support our end-markets, as well our specialty solvents such as isopropyl acetate and diisopropyl ether.”

Seqens is France's only dedicated producer of IPA with 60,000 metric tons/year of capacity at Roussillon, according to IHS Markit data. It operates a phenol/acetone unit at Roussillon that supplies acetone to the IPA plant.

Investment firm Eurazeo is the majority shareholder in Seqens.

As MRC informed previously, the French company Segens has lifted the force majeure on shipments of acetone from its plant in Peage, France. Seqens removed the force majeure circumstances at this plant with a capacity of 108,000 mt of acetone per year on July 16, 2020. The company announced force majeure in late March due to the coronavirus pandemic.

Acetone, along with phenol, is the main feedstock for the production of bisphenol A (BPA), which, in its turn, is used for the production of polycarbonate (PC).

According to MRC's ScanPlast report, Russia's estimated consumption of PC granules (excluding imports and exports to\\from Belarus) rose in January-November 2020 by 18% year on year to 83,600 tonnes (70,600 tonnes a year earlier).
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Milliken joins the Digital Watermark Project, a cutting-edge European initiative to drive a truly circular economy

MOSCOW (MRC) -- Milliken & Company’s Chemical Division, an industry leader in sustainability and the drive to improve the recyclability of plastics, has joined the Digital Watermarks Project, a large-scale initiative testing the viability of digital watermarking technologies for the accurate sorting of plastics, as per the company's press release.

The Digital Watermarks Project was part of a pioneering initiative facilitated by the Ellen MacArthur Foundation, HolyGrail 1.0, that brought together brand owners, retailers, recyclers, packaging producers and sorting technology providers from across the plastics value chain to investigate ways to improve the sorting of post-consumer plastics.

Within HolyGrail 1.0, digital watermarks were found to be the most promising technology and a basic proof-of-concept for smart sorting was developed. HolyGrail 2.0, the 2nd iteration facilitated by AIM, the European Brands Association, will take this initiative to the next stage by validating the concept and the technology on a semi-industrial scale.

“This is a great initiative with buy-in from across the plastics value chain. Sustainability, innovation and digital are being combined to help achieve the objective of the European Green New Deal to make the EU’s economy sustainable by 2050. We are proud to be part of something that can help to drive a circular plastics economy,” said Wim Van de Velde, Milliken’s Vice President Europe, Middle-East and Africa (Chemical Division).

The second phase will aim to test sorting efficiencies, consumer engagement, and distribution tracking. It will require the participation of a large critical mass of brand owners and retailers who will need to modify product packaging with digital watermarks provided by the technology partner(s). The technology partners will adapt larger sorting facilities to incorporate watermark readers necessary to process at a large scale.

“At Milliken we are passionate about transforming the impact that plastics have on the environment for the better. One of our key priorities is to improve the recyclability of plastics by developing additives that improve the performance of polyolefins and allow for higher percentages of post-consumer resin. HolyGrail 2.0 fits into our vision of a circular future,” explained Wim Van de Velde.

Following the validation of the Digital Watermarking Project at semi-industrial scale, packaging coded with digital watermarks will be introduced in a national test market. The project is scheduled to report on its findings in mid-2022.

As MRC reported earlier, in September 2020, Milliken (Spartanburg, North Carolina) said it had joined the Polypropylene Recycling Coalition (PRC), an industry collaboration launched in July by The Recycling Partnership (TRP) aimed at improving recovery and recycling of polypropylene (PP) in the US.

According to MRC's DataScope report, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

Milliken is an innovation company that has been exploring, discovering, and creating ways to enhance people’s lives since 1865. The company creates coatings, specialty chemicals, and advanced additive and colorant technologies that transform the way we experience products from automotive plastics to children's art supplies.
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Formosa Plastics USA shut Point Comfort cracker for system check

MOSCOW (MRC) -- Petrochemical producer Formosa Plastics USA's cracker totaling 1.5 million mt/year ethylene unit in Point Comfort, Texas was shut until early to mid-January, reported S&P Global with reference to sources' statement Dec. 22.

Formosa Plastics USA, part of Formosa Petrochemical, was not available to comment.

The company wanted to check all the systems to ensure it can run at top capacity, according to sources familiar with company operations.

We remind that Formosa Plastics' new 1.5 million mt/year cracker in Point Comfort came online in H1 January, 2020, and was seen ramping up through January.

As MRC informed before, Formosa Plastics USA, started up its 400,000 tons/year low density polyethylene (LDPE) plant in Point Comfort, Texas, US, on 30 November, 2020.

According to MRC's DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company's plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
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Lonza shortlists bidders for specialty ingredients business

MOSCOW (MRC) -- Lonza has declined to comment on reports that Lanxess and private equity groups including Advent International, Carlyle Group, Partners Group, and a consortium comprising Bain Capital and Cinven have been shortlisted to bid for the Lonza Specialty Ingredients (LSI) division, which is up for sale, reported Chemweek.

Lonza tells CW that it is in discussions with potential buyers, but does not “comment on speculation,” and that “as soon as we have more information, we will share it with the markets.”

According to anonymous sources cited in a Reuters report, a total of six companies have been allowed to proceed to the next round of bidding for LSI. Private equity firm Lone Star Funds as well as SK Innovation are mentioned as possible bidders, but it is not clear whether they have been shortlisted, the report says.

Separately, a Bloomberg report says that private equity firms Blackstone Group, CVC Capital Partners, and Clayton Dubilier & Rice are no longer in the running. It adds that no final decisions have been made, and there is no certainty that the shortlisted bidders will make binding offers.

LSI is one of two segments within Lonza. The other is pharma, biotech, and nutrition. Lonza's plans to carve out LSI were first announced in June 2019. LSI is estimated to be worth 3.0-3.5 billion Swiss francs (USD3.4-3.9 billion).

As MRC informed earlier, Lonza (Basel, Switzerland) says it has developed a new structure for its pharma, biotech, and nutrition (LBPN) segment to increase “divisional end-to-end performance accountability” and to strengthen governance and process excellence from global functions, as the company proceeds with the previously announced divestment of its specialty ingredients (LSI) segment.

We remind that in 2012, Lonza set up a task force to look at new supply routes and vendors to feed its cracker in Visp, Switzerland, following the shutdown of Petroplus’ refinery at Cressier in January, 2012. Lonza’s cracker has an ethylene capacity of 25,000 tonnes/year.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
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Crude oil futures fall on surprise US stock build, stimulus uncertainty

MOSCOW (MRC) -- Crude oil futures fell further in mid-morning trade in Asia Dec. 23 as bearish data from the American Petroleum Institute took the market by surprise, and as US President Donald Trump rejected a Congress-approved USD900 billion stimulus bill, reported S&P Global.

At 10:49 am Singapore time (0249 GMT), the ICE Brent February contract was down 78 cents/b (1.56%) from the Dec. 22 settle at US49.30/b, while the February NYMEX light sweet crude contract was down 75 cents/b (1.60%) at USD46.27/b. The markers closed down 1.63% and 1.98% respectively on Dec. 22.

The latest fall in crude prices came as the API reported an unexpected 2.7 million-barrel build in US crude inventories for the week to Dec. 18. Analysts surveyed by S&P Global Platts had been expecting a 4.7 million-barrel decline.

The API data also indicated little improvement in fundamentals in downstream oil product markets, showing a modest draw of 224,000 barrels in gasoline inventories and a 1.03 million-barrel build in distillate inventories.

"Even though traders are used to seeing such API numbers by now, I think that they are still being a little cautious going into the Christmas weekend by locking their profits," David Lennox, resource analyst at Fat Prophets, told S&P Global Platts Dec. 23.

Meanwhile, the political flip-flop over US fiscal relief measures continued as Trump called a US900 billion stimulus package passed by both the Senate and the House of Representatives a "disgrace".

In a video message posted to twitter, Trump said that he would ask the "Congress to amend this bill and increase the ridiculously low USD600 (direct payment) to USD2,000, or US4,000 for a couple".

"I'm also asking Congress to immediately get rid of the wasteful and unnecessary items from this legislation and just send me a suitable bill," he added.

Trump's statements have revived uncertainty over fiscal relief, and analysts expect any delay in the ratification of the package to weigh on oil demand and prices.

"Sentiment took a hit after President Trump asked Congress to amend the COVID-19 relief-funding package, leading crude oil prices lower ... a further delay in the arrival of stimulus funds may hinder a fragile economic recovery and thus dampen the energy demand outlook," DailyFX strategist Margaret Yang told Platts Dec. 23.

Lennox said the refusal of Trump to sign off on the bill has "put some fear back into the markets as without fiscal relief, the US economic climate will deteriorate and oil demand will not improve."

Other bearish developments putting pressure on prices include renewed travel restrictions to the UK after the emergence of a new strain of coronavirus, a stronger US dollar and a slowdown in Asian demand.

"A slowdown of purchases in the physical oil market may hint at a further price pullback as Asian oil refiners have almost fulfilled their needs for spot cargoes to be loaded in January and February, while the virus threat and a stronger US dollar also continue to weigh on prices," Yang said.

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% 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 DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
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