Venezuela oil exports sink to 1940 level

MOSCOW (MRC) -- Pressured by strict U.S. sanctions, Venezuela's oil exports plunged by 376,500 barrels per day (bpd) in 2020, according to Refinitiv Eikon data and internal documents from state-run PDVSA, financially squeezing President Nicolas Maduro, said Hydrocarbonprocessing.

The administration of U.S. President Donald Trump also put curbs on PDVSA's main trading partners, the owners of tankers still transporting Venezuelan oil and on fuel supply to the gasoline-thirsty nation.

The punishment, aimed to oust Maduro after his 2018 re-election was called a sham by most Western nations, has led PDVSA to pursue new customers, rely on mostly unknown intermediaries to resell its oil and deepen ties with Iran, another country under U.S. sanctions.

Venezuela's exports of crude and refined products fell 37.5% in 2020 to 626,534 bpd, the lowest in 77 years. The decrease was even larger for fuel imports, which fell 51% compared with 2019, to 83,780 bpd, according to the data.

The drop in the crude oil offer was several times that of the global market, which fell about 9% last year from COVID-19 constraints. PDVSA did not reply to a request for comment.

As per MRC, China’s refineries posted record throughput in 2020, processing 3% more crude oil than a year ago, as they took advantage of low prices and healthy margins on a quick rebound in domestic fuel demand from the coronavirus pandemic. Annual throughput stood at 674.41 milion tons in 2020, or about 13.45 million barrels per day, up roughly 410,000 bpd from 2019, data from the National Bureau of Statistics showed.

As MRC informed earlier, in late December 2019, Zhejiang Petrochemical Co Ltd started up its ethylene cracker. Based in Zhejiang, China, the cracker is able to produce 1.4 million tons/year of ethylene.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 240,000 tonnes in 2020 (calculated using the formula: production, minus exports, plus imports, exluding producers' inventories as of 1 January, 2020).
MRC

MOSCOW (MRC) -- Sahara International Chemical (Sipchem) has restarted its polypropylene (PP) and low density polyethylene (LDPE) plants in Jubail after completing the maintenance works, reported Chemweek.

The turnarounds were scheduled to begin on 1 February, 2021, and were expected to last during approximately six days.

The weeklong turnaround took place at the 200,000 tons/year PP unit and the 200,000 tons/year LDPE unit.

As MRC informed earlier, Sipchem is planning to mothball the Polybutylene Terephthalate (PBT) plant, owned by its affiliate, Sipchem Chemical Co., and Ethylene Vinyl Acetate (EVA) Film plant that is owned by affiliate firm, Saudi Specialized Products Co. Steps to implement the decision are underway, Sipchem said in a statement to Tadawul, adding that the suspension of both plants will start on Jan. 1, 2021, until further notice. The company expects a positive financial impact starting from Q1 2021 results.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 240,000 tonnes in 2020 (calculated using the formula: production, minus exports, plus imports, excluding producers' inventories as of 1 January, 2020).
MRC

MOSCOW (MRC) -- Solvay and Leonardo announced the launch of a joint research lab dedicated to the development of novel composite materials and production processes critical for the future of the aerospace industry, said the company.

This collaboration represents an important milestone in enabling a step-change in composite part manufacture and in reducing environmental impacts. The Solvay Leonardo Joint Lab will focus on thermoplastic “engineered materials” and in particular on welding and automatic lamination (in-situ consolidation) of complex and large aerospace structures with the goal of maximising product properties, increasing part production efficiency and extending the product life cycle.

The focus is on thermoplastic composites as they offer unique benefits to users such as lightweighting for more fuel efficient aircraft and they do not require autoclave for part consolidation thus enabling the development of much more sustainable production lines. Leonardo and Solvay believe that this agreement will be the foundation for further platform collaboration on short and mid-term applications in aerospace and beyond.

"This collaboration is in line with the G.R.O.W. strategy of Solvay to strengthen our leadership position as supplier of innovative composite materials for aerospace and other markets” shared Nicolas Cudre-Mauroux, Solvay Chief Technology and Innovation Officer. “We believe that the partnership with Leonardo will boost our ability to develop breakthrough thermoplastic composite solutions and substantially increase their adoption in aerospace, contributing to reducing fuel consumption and CO2 emissions".

"This collaboration with Solvay is a significant step in research on advanced materials, which are part of the R&D programs to be developed by the Leonardo Labs.” underlines Roberto Cingolani, Leonardo’s Chief Technology and Innovation Officer. The research area, central to Leonardo, is a key factor of competitiveness, and it will make it possible to improve the performance and safety of our products, to expand its potential, with a direct return on the environmental impact and consumption of resources, boosting a circular and efficient production system".

As per MRC, Solvay says it has accelerated changes that form part of the company’s G.R.O.W. strategy, announced at the end of 2019, due to the “new economic reality linked to COVID-19”.

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.

Solvay is a science company whose technologies bring benefits to many aspects of daily life. With more than 24,100 employees in 64 countries, Solvay bonds people, ideas and elements to reinvent progress. The Group seeks to create sustainable shared value for all, notably through its Solvay One Planet plan crafted around three pillars: protecting the climate, preserving resources and fostering better life. The Group’s innovative solutions contribute to safer, cleaner, and more sustainable products found in homes, food and consumer goods, planes, cars, batteries, smart devices, health care applications, water and air purification systems. Founded in 1863, Solvay today ranks among the world’s top three companies for the vast majority of its activities and delivered net sales of EUR10.2 billion in 2019. Solvay is listed on Euronext Brussels (SOLB) and Paris and in the United States, where its shares (SOLVY) are traded through a Level I ADR program.

MRC

1. U.S. refiners talk up renewable projects after a year of lousy fuel demand

MOSCOW (MRC) -- Following a year of grim losses amid pandemic lockdowns that dented demand for fuel as people stuck close to home, the largest U.S. independent refiners are promoting plans to boost production of renewable fuels, said Hydrocarbonprocessing. Renewable fuels represent a silver lining for refiners under threat of being left behind by the shift to electric vehicles and away from fossil fuel processing. As the big refining companies in recent days reported year-end results, executives devoted plenty of time to discussing how they will create fuels that emit fewer emissions that contribute to global warming. "Renewables is the hot topic, and I think we're in a real good position to put ourselves in a good spot there," Marathon Petroleum Chief Executive Mike Hennigan said. Marathon reported losses of USD12.2 billion for 2020. Hennigan said the company isn't clear what gasoline and diesel demand will be post-pandemic.

MRC

MOSCOW (MRC) - Imports of suspension polyvinyl chloride (SPVC) into Ukraine decreased by 36% in January of this year, compared to the same period in 2020 and reached about 2,600 tonnes. Sales of Ukrainian PVC to foreign markets dropped by 25% year on year, according to a MRC's DataScope report.

Last month's suspension polyvinyl chloride (SPVC) imports into the Ukrainian market decreased to 2,600 tonnes from 4,100 tonnes in January 2020 and 2,400 tonnes in December a year earlier. Overall imports of suspension reached 33,400 tonnes in 2020, compared to 49,000 tonnes a year earlier.

At the same time, stronger demand from the domestic market amid the increased capacity utilisation of the Ukrainian producer led to lower export sales. European producers with the share of about 83% of the total imports over the stated period were the key suppliers of PVC to the Ukrainian market. Producers from the USA with the share of about 15% were the second largest suppliers.

Last month, Karpatneftekhim decreased the volume of external sales, the export sales of Ukrainian PVC amounted to 19,700 tonnes against 26,300 tonnes in January 2020 and 15,800 tonnes in December 2020. Overall, about 155,300 tonnes of PVC were shipped for export in 2020, compared to 163,300 tonnes a year earlier.
MRC