COVID-19 - News digest as of 22.01.2021

1. Indian oil imports at near three-year high in December

MOSCOW (MRC) -- India’s crude oil imports in December soared to the highest levels in nearly three years to more than 5 million barrels per day (bpd) as its refiners cranked up output to meet a rebound in fuel demand, reported Reuters with reference to data from trade sources. A boy walks past an oil tanker train stationed at a railway station in Ghaziabad, on the outskirts of New Delhi, India, February 1, 2019. India’s year-end rush for crude supplies coincided with stronger demand from north Asian buyers during winter, boosting prices and an accelerating de-stocking of floating storage globally.

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USITC ruling in LG Chem-SK Innovation battery patent fray delayed until February

MOSCOW (MRC) -- The US International Trade Commission (USITC) has delayed ruling on a trade secrets battle between SK Innovation and LG Chem until February 2021, according to Chemweek with reference to multiple media outlets. The decision, which could have wide-ranging implications for the electric vehicle battery market and disrupt US automakers’ access, comes after a default USITC judgment in an interim ruling was made in favor of LG Chem in February 2020.

If the USITC upholds this in its final determination, SK Innovation will face a ban on exporting batteries to the US.

LG Chem first filed suit against SK Innovation in April 2019 “for misappropriation of trade secrets, tortuous interference with prospective economic advantage, and other claims.” The suits were filed jointly by the subsidiary LG Chem Michigan Inc. (LGCMI), and LG Chem, concurrently with the US International Trade Commission (USITC) and the US District Court of Delaware. The suits allege that defendants accessed trade secrets by SK Innovation’s hiring of 77 highly skilled and experienced employees from the lithium-ion (Li-ion) battery division of LG Chem. These employees include dozens of engineers involved in the R&D, manufacture, and quality-assurance testing of Li-ion batteries. The lawsuits contend that a significant number of these workers engaged in the theft of LG Chem’s trade secrets “to benefit SK Innovation in the development and manufacturing of pouch-type Li-ion batteries.” LG Chem sought injunctive relief to cease any US imports of Li-ion batteries, including commercial Li-ion battery cells and modules, and bar SK Innovation from importing the manufacturing and testing equipment necessary to build Li-ion batteries, since the machinery relies on LG Chem’s trade secrets.

In August 2020, LG Chem lost a compensation lawsuit it filed against LG Chem in Seoul, South Korea. The court in Seoul delivered a verdict in favor of LG Chem, saying that the patent settlement both companies signed in 2014 is only effective in South Korea. The court dismissed SK Innovation’s claim that LG Chem should drop its lawsuits against SK Innovation in the US.

As MRC reported earlier, LG Chem, a South Korean petrochemical major, shut down its naphtha cracker in Yeosu following a fire late last year. The company said a fire broke out at its central control room at the Yosu cracker complex at around midnight local time (15:00 GMT) on 5 November, 2020. The country's largest chemical company resumed production at this cracker on 18 January, 2020. The facility can process about 1.2 million tonnes of ethylene per year (tpy).

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.

LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.
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Imports of PE in Kazakhstan grew by 10% in January - November 2020

MOSCOW (MRC) - Imports of polyethylene (PE) in Kazakhstan increased by 10% in the eleven months of 2020 compared to the same period of 2019 and amounted to about 162,400 tonnes. The greatest increase in demand accounted for high density polyethylene (HDPE), according to MRC analytics.

PE imports to Kazakhstan reached 8,400 tonnes in November, compared to 14,700 tonnes a month earlier, local companies increased purchasing PE two times polymers in Russia. Overall PE imports totalled about 162,400 tonnes in the first eleven months of 2020, compared to 143,300 tonnes a year earlier. Purchases of HDPE increased significantly, while imports of other types of polyethylene decreased.

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

November imports of high-density polyethylene decreased to 6,900 tonnes against 12,100 tonnes, Russian producers decreased their export sales to the local market. Overall HDPE imports totalled 134,200 tonnes in the eleven months of 2020, up by 17% year on year.
November LDPE imports decreased to 800 tonnes from 1,800 tonnes in October, several Russian producers decreased their shipments to the local market. Overall LDPE imports reached 16,700 tonnes over the stated period, down by 21% year on year.

November linear low density polyethylene (LLDPE) imports reached 600 tonnes versus 800 tonnes a month earlier. Overall output of these products exceeded 11,400 tonnes in January-November 2020, up by 1% year on year.
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BASF plans early-March maintenance at Ludwigshafen TDI plant

MOSCOW (MRC) -- BASF is planning to carry out maintenance work early in March at its 300,000-metric tons/year toluene diisocyanate (TDI) plant at Ludwigshafen, Germany, market sources have told OPIS, said Chemweek.

"The facility is expected to be in planned turnaround from early March until the end of May, but we don't know the exact dates of the turnaround," a source said. BASF declined to comment. "We do not comment on plant maintenance or run rates," a company spokesperson said.

Another source speculated that TDI production might start to slow from the site from the end of February in preparation for the turnaround. This will result in lower toluene consumption than in recent months, according to Eleanor Dann, principal toluene analyst at IHS Markit.

"Whilst the turnaround for TDI production will reduce consumption of TDI-grade toluene, this will not necessarily result in an additional 10,000-15,000 metric tons of length for the toluene market as supply is likely to be adjusted in knowledge of the outage," said Dann.

BASF had declared force majeure on 31 August 2020 after experiencing technical problems. After several attempted restarts, it lifted the force majeure at its TDI plant on 30 November, a company spokesperson confirmed.

As MRC informed earlier, BASF says its 420,000-metric ton/year steam cracker in Ludwigshafen, Germany is continuously running and has not caused any interruption of supply to its customers. Earlier, several media outlets reported that unscheduled flaring started on 13 January at the northern part of the Ludwigshafen site and was expected to last until 17 January and that an unspecified unit was shut, which "was not the case", as per the company's letter received by MRC.

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.

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.
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BASF commissions Stolt for chemical vessel able to operate during Rhine's low-water periods

MOSCOW (MRC) -- Stolt-Nielsen subsidiary Stolt Tankers says it has been commissioned by BASF to help design and build a new inland chemicals vessel able to operate during periods of extreme low-water levels on the Rhine river to increase security of supply for BASF's chemicals site at Ludwigshafen, Germany, reported Chemweek.

The river, a key waterway for the transportation of chemicals in Europe, has been regularly impacted by low water levels during extended periods of dry weather in recent years. Existing chemical barges have been unable to fully load cargoes, increasing transport costs, and delaying products, Stolt says.

The proposed new barge will be able to pass a critical point in the river near Kaub, Germany, while carrying 650 metric tonnes of cargo in a water depth as shallow as 1.60 meters. This amount of cargo at this water depth is significantly more than any other tanker available today, it says. The vessel will have a transport capacity of about 2,500 metric tons in average water depths, approximately double that of conventional inland vessels, according to Stolt.

The tanker will be built by Mercurius Shipping Group with delivery scheduled for 2022. Stolt Tankers will operate the vessel exclusively for BASF, it says.

“Following our experience with the low water levels of the Rhine in 2018 and based on our assessment that such events may occur more frequently in the future, we have taken a whole range of measures at the Ludwigshafen site to increase the security of supply for production,” says Uwe Liebelt, BASF’s European site/Verbund management. “An important element of our considerations was to have a ship that can still reliably transport substantial quantities even at the lowest Rhine levels,” he says.

The inland tanker will have 10 stainless steel storage tanks, a unique draft, and “set a new mark for the transport of cargo on the River Rhine, especially when water levels are low,” says Stolt Tankers president Lucas Vos.

The main objective for the vessel’s development was to provide a high load-bearing capacity coupled with a shallow draught and light weight, according to Stolt. The barge will be 135 meters in length and 17.5 meters wide, with a hydrodynamically optimized hull, an adapted propulsion system, and three separate loading systems. It will be powered by three electric motors, fed by latest generation diesel generators with exhaust gas after-treatment.

As MRC informed earlier, BASF says its 420,000-metric ton/year steam cracker in Ludwigshafen, Germany is continuously running and has not caused any interruption of supply to its customers. Earlier, several media outlets reported that unscheduled flaring started on 13 January at the northern part of the Ludwigshafen site and was expected to last until 17 January and that an unspecified unit was shut, which "was not the case", as per the company's letter received by MRC.

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.

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.
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