Karpatneftekhim raises HDPE prices by USD90/tonne

MOSCOW (MRC) -- Karpatneftekhim (Kalush, Ivano-Frankivsk region), Ukraine's largest petrochemical plant, raised its high density polyethylene (HDPE) prices by USD90/tonne on 3 February for shipments to the domestic market, according to ICIS-MRC Price report.

The plant's customers said on Wednesday, the Ukrainian producer increased its HDPE prices for shipments to the domestic market by USD90/tonne from previous week. Prices started from USD1,270-1,280/tonne FCA, excluding VAT, for end-users. The price rise was primarily caused by higher feedstocks prices.

High prices in foreign markets also put a major pressure on prices in the county. Thus, European producers raised their February export prices by EUR150-220/tonne from January.

Karpatneftekhim is one of the largest enterprises of Ukraine's petrochemical complex. Currently, the plant can produce annually 300,000 tonnes of PVC, 200,000 tonnes of caustic soda, about 180,000 tonnes of chlorine, as well as 250,000 tonnes of ethylene and 100,000 tonnes of polyethylene.
MRC

MOSCOW (MRC) -- Corteva reports earnings of USD43 million for the seasonally weak fourth quarter, up from a loss of USD18 million in the year-ago quarter, on early seed sales in North America, reported Chemweek.

Adjusted earnings of USD0.04 cents per share were down 43% year-on-year (YOY) but beat the analysts’ consensus estimate for a loss of USD0.03/share, as reported by Zachs Investment Research. Net sales increased 7.5% YOY, to USD3.2 billion, as volumes increased 10% on adoption of new and differentiated crop protection products. Organic sales grew by double digits in North America, Latin America, and Asia Pacific. Early season sales in seed North America helped to offset currency impacts in Latin America.

“Our new and differentiated products contributed to solid top-line growth,” says Jim Collins, CEO. “We delivered progress in 2020 on key innovations and investments, such as the accelerated ramp-up of our Enlist™ system, which exceeded our initial expectations on US soybean acres in 2020. At the same time, we grew our position in key markets and regions during the year, and further strengthened our multi-channel, multi-brand strategy, including the launch of Brevant™ in the U.S. retail channel.”

Crop protection sales increased 13% YOY, to USD2.0 billion. Segment operating EBITDA was USD327 million, up from USD277 million in the fourth quarter of 2019. Favorable mix, volume gains and ongoing cost and productivity actions more than offset the negative impact of currency.

Seed sales were flat YOY, t USD1.2 billion. Volume increased 9%, but was offset by unfavorable currency impacts, particularly in Brazil. Segment operating EBITDA was a seasonal loss of USD47 million, compared to a loss of USD26 million in the fourth quarter of 2019.

Looking ahead, the company expects net sales of USD14.4-USD14.6 billion for full year 2021, which at the midpoint is 2% higher than 2020. Operating EBITDA is expected to be in the range of USD2.4 billion to USD2.5 billion, an increase of 15-20% compared 2020.

As MRC informed earlier, in late January 2020, DuPont de Nemours, Inc., Corteva, Inc. and The Chemours Company announced that they ha entered into a binding memorandum of understanding containing a settlement to resolve legal disputes originating from the 2015 spin-off of Chemours from E. I. du Pont de Nemours and Company (EID). Cmpanies aimed to establish a cost sharing arrangement and an escrow account to be used to support and manage potential future legacy per- and polyfluoroalkyl substances (PFAS) liabilities arising from events prior to 1 July 2015, the day the spin-off was completed.

We remind that DuPont is investing USD400 million in the production capacity of Tyvek nonwoven fabric made from high density polyethylene (HDPE) at its site in Luxembourg. A new building and a third work line at the production site will be constructed. The launch of new facilities is scheduled for 2021.

According to MRC's ScanPlast report, Russia's HDPE production totalled about 1,824,800 tonnes in 2020, up 90% year on year. ZapSibNeftekhim accounted for the main increase in the output,.
MRC

MOSCOW (MRC) -- Prices of polypropylene (PP) have been growing in the Russian market since early January on the back of situation in the foreign market. In the first week of February, prices for some grades of PP reached record levels, according to the ICIS-MRC Price Report.

In the previous years, PP prices became cheaper in January-February in the Russian market due to low seasonal demand and oversupply. The situation in the first two months of this year was completely different. High PP prices in some regions of the world and, as a result, a good export offers put serious pressure on PP prices in Russia.

Since the beginning of the year, prices of homopolymer PP have increased by more than 10%. European PP prices increased by more than EUR300/tonne in November-January, European producers intend to raise their February prices further. A similar situation is on the market in Turkey, during the same period the price of polymer increased on average by USD260/tonne.

It is the rapid rise in PP prices in a number of regions of the world in the past few months that pushes the largest producers to increase prices in the Russian market. Some Russian producers contract homopolymer PP for shipments to Europe at EUR1,150-1,170/tonne, FCA for February shipments.

Which is higher than the price level in the Russian market, even given the increase in early February. A week earlier, negotiations on February supply of polypropylene started in the spot market; some small sellers have volume restrictions. In particular, the supply of polymer produced by Ufaorgsintez is temporarily limited.

Due to the fire, Ufaorgsintez had to temporarily reduce the capacity utilisation. The import of polypropylene from Turkmenistan also decreased. Spot offers for the supply of homopolymer PP raffia in the first days of February started at Rb113,500tonne CPT Moscow, including VAT, whereas at the beginning of January the price of this PP did not exceed Rb104,500/tonne CPT Moscow, including VAT.

Some sellers of homopolymer PP raffia rose to Rb118,000/tonne CPT Moscow, including VAT this week. The situation is similar in the propylene copolymer market, with the greatest shortage seen in the injection moulding propylene copolymer segment.

Demand for PP subsided significantly is early February, many converters found it difficult to quickly accept new prices primarily because of the difficulty of passing the new cost of material to finished products.

MRC

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex binders and synthetic rubber, and its affiliate companies in Europe have announced a price increase for all polycarbonate (PC) grades in Europe, as per the company's press release.

Effective February 1, 2020, or as existing contract terms allow, the contract and spot PC prices for the products listed below increased as follows:

- CALIBRE PC resins - by EUR200 per metric ton.

As MRC informed earlier, Trinseo last raised its prices for all PC grades in Europe on 1 January 2021 by EUR300 per metric ton.

According to MRC's ScanPlast report, Russia's estimated consumption of PC granules (excluding imports and exports to/from Belarus) totalled 89,300 tonnes in 2020, up by 14% year on year (78,500 tonnes a year earlier).

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD3.8 billion in net sales in 2019, with 17 manufacturing sites around the world, and approximately 2,700 employees.
MRC

MOSCOW (MRC) -- The American Chemistry Council’s (ACC) Board of Directors today announced the approval of four new regular members as well as two Responsible Care Partner companies, reported Chemweek.

The regular members are Arcanum Infrastructure, LLC (Houston, Texas), CHEMRES (Princeton, New Jersey), EMD Performance Materials (Allentown, Pennsylvania), and Epsilyte LLC (Woodlands, Texas).

Arcanum Infrastructure manufactures Butene-1. CHEMRES is a specialized custom compounder, producing high-performance resins for medical devices and diagnostics, packaging, wire and cable, and industrial applications. EMD Performance Materials is a leader in semiconductor and electronics materials, display and surface solutions, and specialty gases. Epsilyte manufactures expandable polystyrene.

R&S Delivered (St. Louis, Missouri) and C Three Logistics (Newfield, New Jersey) were approved as Responsible Care Partner companies. R&S Delivered is a third-party logistics company specializing in chemical packaged goods in the less than truckload (LTL) and dry van transportation sector. C Three Logistics is a bulk chemical product motor carrier.

As MRC informed before, ACC’s chemical activity barometer (CAB), a leading economic indicator and composite index of industry activity, rose 1.5% in January, following a 1.3% increase in December, on a sequential three-month moving average (3MMA). The barometer was up 1.3% on a year-on-year (YOY) basis in January.

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.

Ethylene and propylene are feedstocks for producing 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, excluding producers' inventories as of 1 January, 2020).
MRC