BASF to increase caprolactam, nylon 6 prices

MOSCOW (MRC) -- BASF says it will increase prices for caprolactam and downstream polymer polyamide 6 (PA6, Nylon 6) in North America by 6 cents/lb, effective 1 January, said Chemweek.

Major North American producers of caprolactam are AdvanSix, in Hopewell, Virginia; BASF, in Freeport, Texas; and Univex, in Salamanca, Mexico. Caprolactam is produced from the benzene derivatives phenol or cyclohexane.

North American producers of Nylon 6 include AdvanSix, BASF, Cast Nylons, Custom Resins, DuPont, EMS-Chemie, Mohawk Industries, Nylene Canada, Nylon Corporation of America, Quadrant Engineering Plastic Products USA, and Shaw Industries.

We remind that German chemicals maker BASF said in early November it had put a project to build a petrochemicals complex in India worth up to USD4 billion on hold due to the economic uncertainty caused by the COVID-19 pandemic. BASF signed a memorandum of understanding with Abu Dhabi National Oil Company (ADNOC), Adani Group and Borealis AG in October 2019 to evaluate a collaboration to build the chemical site in Mundra, in India’s Gujarat state.

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) -- Brenntag says it has agreed to acquire Alpha Chemical (Dartmouth, Nova Scotia, Canada), a full-line chemical distributor in Canada, reported Chemweek.

Terms of the deal, including purchase price, were not disclosed. Alpha Chemical generates about USD12 million/year in revenue, and operates mainly in the oil and gas, mining, water treatment, and aquaculture end markets.

“The company’s infrastructure, capabilities, and personnel will support the expansion of our new Brenntag Essentials and Brenntag Specialties divisions in Canada,” says Lars Schneider, president/Canada at Brenntag. The deal will be a particular boost to Brenntag’s business in Atlantic Canada, Schneider adds.

The acquisition enables “ready access to the oil and gas offshore upstream market in Atlantic Canada,” says Anthony Grace, managing director/mergers and acquisitions at Brenntag. It also includes a facility in Newfoundland that can serve other markets in Canada, according to Grace.

The deal is expected to close in January 2021.

As MRC informed earlier, in April 2020, Brenntag said it had acquired the operating assets of Suffolk Solutions’ (Suffolk, Virginia) caustic soda distribution business. Financial terms of the deal have not been disclosed.

We remind that Brenntag said earlier this month that it had signed a deal with Elementis under which Brenntag will distribute the company’s products in coatings, adhesives, sealants, inks and construction materials in Canada.

We also remind that October production of sodium hydroxide (caustic soda) in Russia were 109,000 tonnes (100% of the basic substance) versus 108,000 tonnes a month earlier. Russia's overall output of caustic soda totalled 1,054,600 tonnes in the first ten months of 2020, down by 1.6% year on year.
MRC

MOSCOW (MRC) -- Overall polypropylene (PP) imports into the Ukrainian market totalled slightly over 124,400 tonnes in the first ten months of 2020, up by only 1% year on year. Imports of all grades of PP increased, with the exception of PP random copolymers, according to MRC DataScope.

November PP imports to Ukraine decreased to 11,400 tonnes against 11,800 tonnes a month earlier, purchases of all types of propylene polymers from Ukrainian companies decreased, with the exception of pipe PP random copolymers. Overall imports of propylene polymers reached 124,400 tonnes in January-November, compared to 123,400 tonnes a year earlier. Demand for all grades of propylene polymers increased, whereas demand for injection moulding PP block copolymers increased.

The structure of PP imports by grades looked the following way over the stated period.

November imports of propylene homopolymers to the Ukrainian market reached about 8,000 tonnes against 9,500 tonnes a month earlier, imports of polypropylene from Saudi Arabia decreased due to the limited export quotas from local producers. Total homopolymer PP imports were 94,800 tonnes in January-November, compared to 93,900 tonnes a year earlier.

Last month's imports of block copolymers of propylene (PP block copolymers) were about 900 tonnes, compared to 1,000 tonnes in October, demand for injection moulding PP block copolymers decreased. About 12,300 tonnes of PP block copolymers were imported in the first ten months of 2020, compared to 13,100 tonnes a year earlier.

November imports of PP random copolymers exceeded 2,200 tonnes from 1,100 tonnes a month earlier, local companies increased their purchasing of pipe grade PP random copolymers. Overall PP random copolymers imports reached 15,100 tonnes in January-November 2020, compared to 14,700 tonnes a year earlier. Overall imports of other propylene copolymers totalled about 2,200 tonnes over the stated period.

MRC

MOSCOW (MRC) - Imports of polyethylene (PE) into Kazakhstan increased to about 154,000 tonnes in January-October, up 14% compared with the same time a year earlier, according to MRC analysts. The greatest increase in demand accounted for high density polyethylene (HDPE), according to MRC DataScope.

PE imports to Kazakhstan reached 14,700 tonnes in October, compared to 12,200 tonnes a month earlier, local companies increased purchasing ethylene polymers in Russia. Overall PE imports totalled 154,000 tonnes in the first ten months of 2020, compared to 135,100 tonnes a year earlier. Purchases of HDPE increased significantly, whereas imports of low density polyethylene (LDPE) decreased.

The structure of PE imports by grades looked the following way over the stated period.

October imports of low-density polyethylene rose to 12,100 tonnes against 9,800 tonnes, Russian producers increased their export sales to the local market. Overall HDPE imports totalled 127,300 tonnes in the ten months of 2020, up by 21% year on year.

October LDPE imports increased to 1,800 tonnes from 900 tonnes in September, several Russian producers simultaneously increased their shipments because of scheduled turnarounds. Overall LDPE imports reached 15,800 tonnes over the stated period, down by 17% year on year.

October linear low density polyethylene (LLDPE) imports reached 800 tonnes versus 1,500 tonnes a month earlier. Overall output of these products exceeded 10,800 tonnes in January-October 2020, up by 4% year on year.

MRC

1. US jet fuel consumption during the week of Thanksgiving was about half of last year figure

MOSCOW (MRC) -- For the week of Thanksgiving 2020, estimated consumption of major transportation fuels (motor gasoline, distillate, and jet fuel) was 11% lower than during Thanksgiving week 2019, reported Hydrocarbonprocessing. About half as much jet fuel was consumed during the week of Thanksgiving as last year, measured using product supplied as a proxy for consumption: 1.1 million barrels per day (b/d) in 2020 compared with 2.0 million b/d in 2019, according to estimates in the US Energy Information Administration’s (EIA) Weekly Petroleum Status Report. Using flight-level data provided by Cirium on commercial passenger flights (which accounted for approximately three-quarters of overall jet fuel consumption in 2019), EIA estimates that about 108,000 flights took off from US airports during the week of Thanksgiving in 2020, or 37% fewer than the 170,000 flights that departed during Thanksgiving week in 2019. EIA estimates that these flights consumed 45% less fuel than the flights during Thanksgiving week in 2020 compared with 2019. EIA’s analysis, published in This Week in Petroleum, shows that states such as New York, Massachusetts, and California may have had the largest percentage declines (at least 60%) in commercial jet fuel consumption between the two Thanksgiving weeks. However, two states - Montana and Wyoming - may have had increases in commercial jet fuel consumption. State-level variation in flight volume and implied fuel consumption could result from several factors: ifferences in state quarantine policies and travel restrictions, the relative severity of COVID-19 in that state, the share of the state’s population that was born or naturalized there (with higher shares associated with less travel during holidays), the share of each state’s international air travel (which has generally been more affected than domestic travel).


MRC