North America chemical rail strength continues

MOSCOW (MRC) -- During the week ended 23 January, chemical railcar in North America totaled 45,944 carloads, up 4.5% year-over-year (YOY) and down 3.6% from the previous week, according to Chemweek with reference to data released by the Association of American Railroads (AAR).

On a four-week basis, volume increased 5.2% from 2020 and 3.2% from 2019 (chart). For the year to date, chemical railcar traffic in North America is up 6.2% from 2020 and 4.8% from 2019.

Chemical railcar traffic in the United States contributed 32,140 carloads to the total, up 2.7% YOY and down 5.3% from the previous week. For the year to date, US chemical railcar traffic was up 4.9%.

Canadian chemical rail traffic totaled 12,852 carloads, up 9.0% YOY and up 1.5% from the previous week. For the year to date, Canadian chemical railcar traffic was up 10.4%.

Chemical railcar traffic in Mexico totaled 952 carloads, a YOY increase of 7.8% and a sequential decrease of 9.8%. For the year to date, Mexican chemical railcar traffic was up 1.5%.

As MRC informed previously, during the week ended 16 January, chemical railcar traffic in North America increased 8.8% year-over-year (YOY) on gains throughout the region. Volume totaled 47,660 carloads, down 1.9% from the previous week, according to data released on 20 January by AAR. On a four-week basis, volume increased 3.9% from 2020 and 1.6% from 2019 (chart). For the year to date, chemical railcar traffic in North America is up 7.0%.

We remind that Russia's output of chemical products rose in November 2020 by 9.5% year on year. At the same time, production of basic chemicals increased in the first eleven months of 2020 by 6.6% year on year, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-November 2020 output. November production of polymers in primary form rose to 896,000 tonnes from 852,000 tonnes in October. Overall output of polymers in primary form totalled 9,240,000 tonnes over the stated period, up by 17.1% year on year.
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MOSCOW (MRC) -- Sibur says a test laboratory at its PolyLab polymer research center in Moscow has been certified by Russia’s federal accreditation body as having the expertise necessary for its research results to be recognized as meeting international accreditation standards for accuracy and reliability, said Chemweek.

RusAccreditation is a signatory of the International Laboratory Accreditation Cooperation’s mutual recognition agreement (ILAC MRA), meaning research results from PolyLab can now be recognized internationally, Sibur says. The process of obtaining PolyLab’s accreditation in Russia took one year, which is significantly faster than the usual accreditation period for new R&D centers, it says. PolyLab was officially launched in May 2019.

The test laboratory has access to multiple research methods for various polymer uses, including piping, fibers, flexible and rigid packaging, and compounds, according to the company. The scope of accreditation covers primarily research conducted to assess polymer pipe quality, while accreditation for film research methods means the laboratory can certify the barrier properties of biaxially oriented polypropylene (BOPP) film used in food packaging, it says.

The research accreditation will help Sibur’s clients and partners develop new products “with reduced time to market,” says PolyLab’s CEO Konstantin Vernigorov. “Given the rapidly evolving consumer preferences and manufacturer priorities, we plan to expand the range of certified research going forward,” he says.

As per MRC, Sibur, Russia’s leading petrochemicals company and one of the most rapidly growing petrochemicals businesses globally, says it has agreed a deal for the supply of recycled plastic as feedstock for the production of polyethylene terephthalate (PET) granules at its Polief plant in Blagoveshchensk, Bashkortostan, Russia. The company has signed a contract to receive up to 4,000 metric tons/year of PET flakes made from recycled food packaging from Autopark No.1 Spetstrans, the largest operator for the collection, removal, and disposal of solid municipal waste in St. Petersburg. Deliveries will begin in 2022, it says.

According to MRC's ScanPlast report, Russia's PET consumption reached 61,110 tonnes in November 2020, up by 1% year on year. Overall PET consumption in Russia reached 648,110 tonnes in the first eleven months of 2020 , down by 18% year on year.
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MOSCOW (MRC) -- Chevron Phillips Chemical (CPChem) announced two significant developments in its advanced recycling program which converts waste plastics into circular polyethylene, said Hydrocarbonprocessing.

Since introducing Marlex Anew Circular Polyethylene in October, the company has received certification through the International Sustainability and Carbon Certification PLUS (ISCC PLUS) process and signed a long-term supply agreement with Nexus Fuels LLC (Nexus) as its first supplier of pyrolysis oil.

The internationally recognized ISCC PLUS certification verifies Chevron Phillips Chemical meets the high standards required to hold the certificate, providing customers of Marlex® Anew™ Circular Polyethylene with added confidence in the certified circular product. This certification reflects the company’s committed and growing efforts to create sustainable streams for waste plastics. Chevron Phillips Chemical’s Cedar Bayou facility in Baytown, Texas, produces Marlex Anew™ Circular Polyethylene. It is the company’s first location to receive the ISCC PLUS certification, a status Chevron Phillips Chemical expects to seek as additional sites are added to the expanding advanced recycling program.

Nexus, a proven leader in converting difficult-to-recycle waste plastics into pyrolysis oil, has already begun supplying its high-quality, certified feedstock needed to produce Marlex® Anew™ Circular Polyethylene. Nexus has successfully obtained ISCC PLUS certification, which combined with Chevron Phillips Chemical’s ISCC PLUS certification, establishes Marlex Anew Circular Polyethylene as an end-to-end certified circular product. Jeff Gold, Nexus founder and chief executive officer, said “Consumers and brands want action, not promises, that address plastic waste.” Eric Hartz, president and co-founder, added, “Nexus and CPChem are delivering a real-world solution that is actively diverting plastic waste from landfills and the environment while generating high quality products."

The Nexus supply agreement and ISCC PLUS certification of both companies make Chevron Phillips Chemical well-positioned to further scale production of its circular polymer and deliver sustainable products for years to come. Chevron Phillips Chemical is targeting an annual production volume of 1 billion lbs. of Marlex Anew Circular Polyethylene by 2030.

“The early success and certification of our advanced recycling program reinforces CPChem’s drive to cultivate a circular economy for plastics,” said Jay Bickett, vice president of polymers and sustainability at Chevron Phillips Chemical. “CPChem continues to develop approaches that generate value from plastic waste and I am confident we will maintain a leadership role in delivering sustainable solutions long after we achieve our 2030 goal."

As MRC informed previously, in March 2018, Chevron Phillips Chemical, part of Chevron Corp, successfully introduced feedstock and commenced operations of a new ethane cracker at its Cedar Bayou facility in Baytown, Texas. At peak production, the unit will produce 1.5 million metric tons/3.3 billion lbs. per year. This unit is one of the largest and most energy efficient crackers in the world. In September 2017, the company announced the successful commissioning and start-up of two new Marlex polyethylene (PE) units in Old Ocean, Texas, based on the company’s proprietary MarTech technologies. Together, these assets form the bulk of the company’s US Gulf Coast Petrochemicals Project (USGCPP), which was first announced in 2011.

Ethylene and propylene are feedstocks for producing 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.

Headquartered in San Ramon, California, Chevron Corporation is the the second-largest integrated energy company in the United States and among the largest corporations in the world. Chevron is involved in upstream activities including exploration and production, downstream activities including refining, marketing and transportation, and advanced energy technology. Chevron is also invested in power generation and gasification processes.
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1. Reliance Industries shares fall nearly 5% as COVID-19 hits oil business

MOSCOW (MRC) -- Shares of Reliance Industries Ltd fell as much as 4.7% in early trade on Monday after the Indian conglomerate posted a sharp drop in quarterly revenue from its dominant oil-to-chemicals business, reported Hydrocarbonprocessing. Reliance, which operates the world’s largest refining complex, said on Friday revenue from its oil-to-chemicals division fell nearly 30% in the three months ended Dec. 31. Total revenue slid 21% to 1.24 trillion rupees, and the company said its operations and revenue during the period were impacted by the COVID-19 pandemic.


MRC

MOSCOW (MRC) -- A fire at Ufaorgsintez (a subsidiary of ANK Bashneft, part of PJSC "NK Rosneft") did not lead to a shutdown of low density polyethylene (LDPE) and polypropylene (PP) production capacities, according to ICIS-MRC Price report.

On 25 January, two containers with a methane-hydrogen fraction caught fire at the Ufa plant, and the blaze was extinguished in the morning of 26 January. The plant's customers said the fire was not critical for polymer production. PP production has been operating normally, whereas the LDPE production has temporarily reduced its capacity utilisation, thus, production of 158 grade polyethylene (PE) was suspended.

As MRC reported earlier, Ufaorgsintez resumed PP production on 13 October, 2020 after the shutdown for a scheduled maintenance. The outage was quite long and started on 12 September. Ufaorgsintez's overall PP production capacities are 120,000 tonnes/year.

Ufaorgsintez is one of the largest Russian plants specializing in the large-scale production of high-quality organic synthesis products and polymer materials, providing about 30% of phenol produced in Russia, 15% of polyethylene and 8% of polypropylene. The company occupies a leading position in the country as regards the output of acetone and is the only manufacturer of rubber with dicyclopentanediene, and now also with ethylidene norbornene.
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