Russian LDPE market: 2020 year results

MOSCOW (MRC) -- Demand for low density polyethylene (LDPE) subsided in Russia in 2020 by 2% after an increase a year earlier. At the same time, prices have reached a record level over the past five years and continued to rise, according to ICIS-MRC Price report.
Quarantine restrictions in April-May led to a significant reduction in demand for LDPE in Russia, despite seasonal factors. But already from mid-summer, processing volumes began to recover dynamically and remained at a good level until the end of the year. However, according to preliminary results, demand for LDPE showed a negative result in 2020. At the same time, the dynamically growing polyethylene (PE) prices in Asia have begun to put a major pressure on prices in the Russian market for the past two months of the year, and already in December, prices of Russian LDPE exceeded Rb100,000/tonne.


Russian producers failed to maintain last year's LDPE production figures. LDPE output totalled 574,600 tonnes in the first eleven months of 2020, down by 2% year on year. And lower PE production was largely due to the increase in the time of shutdowns for repairs at some plants.

Exports grew only by 1% to 171,700 tonnes. At the same time, export volumes were quite high in the first quarter, after which Russian producers reduced their sales to foreign markets. Higher exports was also registered in the past two years because of high prices in Asia.

LDPE imports to the Russian market increased. Overall PE imports exceeded 103,400 tonnes in January-November 2020, up by 5% year on year. At the same time, imports grew from both Belarus and Europe.

Thus, demand for LDPE was 506,320 tonnes in the first eleven months of 2020 versus 514,500 tonnes a year earlier.

All five producers shut their production capacities for scheduled maintenances this year. Traditionally, Angarsk Polymers Plant and Gazprom neftekhim Salavat shut their production in July-August. For a number of reasons, Kazanorgsintez took off-stream its production capacities twice this year: in April-May and September-October.

LDPE prices reached their lowest level in the second half of May-early June, and prices of some grades fell below Rb70,000/tonne CPT Moscow, including VAT. But already in the second half of the first month of summer, PE prices began to go up, which was due to the upcoming shutdowns for turnarounds at plants in Angarsk and Salavat. In September, LDPE prices exceeded Rb100,000/tonne CPT Moscow, including VAT, and after a slight decrease in October, prices resumed their upward trend in November under the pressure of the dynamic price growth in Asia.

Thus, December LDPE prices exceeded Rb102,000/tonne CPT Moscow, including VAT, breaking the 2016 year record. And some producers have already announced a further increase in January LDPE prices.

MRC

Enterprise-Navigator JV commissions new tank, benefits USGC ethylene exports

Enterprise-Navigator JV commissions new tank, benefits USGC ethylene exports

MOSCOW (MRC) -- Enterprise Products and Navigator Holdings started service at a new refrigerated ethylene storage tank at an ethylene export terminal on the Houston Shipping Channel, said Chemweek.

The export terminal is owned by a joint venture, in which Enterprise and Navigator Holdings hold equal stakes. The tank has a storage capacity of 30,000 tons, Enterprise and Navigator said. They did not specify if the capacity was listed in short tons or metric tonnes.

The tank will make it faster to load vessels, allowing the terminal to reach its export capacity of 1m tons/year of ethylene, the companies said. Navigator Atlas was the first vessel to use the service. It loaded up on 23 December. Navigator Atlas has a capacity of 21,000 cubic metres of ethylene.

As MRC informed before, Enterprise Products Partners and LyondellBasell Industries said in September 2019 they had executed long-term contracts to support construction of EPD's second propane dehydrogenation plant at the Mont Belvieu, Tex. complex. The decision to build the PDH 2 plant stems from recently executed long-term polymer grade propane (PGP) supply contracts between Enterprise and LyondellBasell Industries N.V.

Besides, we remind that Enterprise Products Partners' Mont Belvieu PDH in Texas restarted from planned maintenance in the first week of December, 2019. The PDH unit went offline for maintenance on November 13, 2019. That day, the company said in a filing with the Texas Commission on Environmental Quality that the RAC "B" turbine shut down, which resulted in flaring. The flaring was estimated to last 72 hours. The unit has a capacity of 750,000 mt/year.

Ethylene is a feedstock for producing PE.

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.
MRC

Petrochem appoints acting CEO

MOSCOW (MRC) -- National Petrochemical Co.’s (Petrochem) board of directors approved the resignation of managing director Abdulrahman Saleh Alismail, who will join Saudi Industrial Investment Group (SIIG) as its new chief executive officer (CEO), effective from Jan. 1, 2021, said Chemweek.

Alismail’s resignation was accepted today, Dec. 24, and will come into effect as of Dec. 31, 2020, Petrochem said in a bourse statement, adding that Alismail will retain his position as a member in the board of directors.

Petrochem board also named Fahad Abdullah Al Theban, as the acting chief executive officer, effective from Jan. 1.

Al Theban holds a bachelor of statistics from King Saud University. He has extensive experience of more than 25 years in petrochemicals. He joined Petrochem in 2011, the statement added.

As per MRC, SIBUR Holding, Russia’s leading petrochemicals company and one of the most rapidly growing petrochemicals businesses globally, and China Petroleum & Chemical Corporation (Sinopec), China’s leading energy and chemical company, have closed the deal to set up a joint venture (JV) at the Amur Gas Chemical Complex after obtaining all the necessary approvals from the regulators of both countries.

Ethylene and propylene are feedstocks for producing PE and 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.

MRC

COVID-19 - News digest as of 30.12.2020

1. Russian LDPE market: 2020 year results

MOSCOW (MRC) -- Demand for low density polyethylene (LDPE) subsided in Russia in 2020 by 2% after an increase a year earlier. At the same time, prices have reached a record level over the past five years and continued to rise, according to ICIS-MRC Price report. Quarantine restrictions in April-May led to a significant reduction in demand for LDPE in Russia, despite seasonal factors. But already from mid-summer, processing volumes began to recover dynamically and remained at a good level until the end of the year. However, according to preliminary results, demand for LDPE showed a negative result in 2020. At the same time, the dynamically growing polyethylene (PE) prices in Asia have begun to put a major pressure on prices in the Russian market for the past two months of the year, and already in December, prices of Russian LDPE exceeded Rb100,000/tonne. Russian producers failed to maintain last year"s LDPE production figures. LDPE output totalled 574,600 tonnes in the first eleven months of 2020, down by 2% year on year. And lower PE production was largely due to the increase in the time of shutdowns for repairs at some plants.




MRC

Eneos delays Kawasaki cracker restart

MOSCOW (MRC) -- ENEOS Corporation (formerly known as JXTG Nippon Oil & Energy) has postponed the restart of its larger cracker in Kawasaki, Japan until 4 January after the plant failed to resume operations, as planned, earlier this week, reported Chemweek.

The company shut this cracker with an annual capacity of 515,000 tons/year of ethylene, 300,000 tons/year of propylene, and 105,000 tons/year of butadiene on 4 December, 2020, for repairment after a technical issue reported at the butadiene separation unit and initially planned to resume operations on 28 December.

The company’s smaller cracker at the same location was not affected by the issue.

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.

Japan's largest refiner JXTG Nippon Oil & Energy was renamed ENEOS Corporation on 25 June, 2020, as part of a wider re-organization of the parent company JXTG Holdings. The move, which also involved renaming the parent company to ENEOS Holdings upon approval at its annual shareholders meeting in June 2020, comes as it strives to be a more comprehensive energy and materials company under its 2040 vision announced in May, 2019. JXTG Holdings was formed as a result of a merger between JX Holdings and TonenGeneral in April 2017. This followed the establishment of JX Holdings as a result of the merger between Nippon Oil and Nippon Mining Holdings in April 2010.
MRC