Avient beats estimates on solid demand, masterbatches acquisition

MOSCOW (MRC) -- Avient, formerly PolyOne, has reported fourth-quarter net income from continuing operations of USD74.2 million, up from USD6.4 million, on net sales up 51% year-on-year (YOY), to USD997.0 million, according to Chemweek.

Earnings totaled 52 cents/share, up 73% YOY and ahead of analysts’ consensus estimate of 45 cents/share, as reported by Refinitiv (New York, New York). The inclusion of the former Clariant masterbatches business boosted results, as did strength in healthcare, packaging and consumer markets.

“Every segment and end market grew over the prior year fourth quarter,” says Avient chairman and CEO Robert Patterson.

Colors, additives and inks segment sales more than doubled YOY, to USD525.8 million from USD226.7 million, on the inclusion of Clariant’s masterbatches business, while segment operating income also more than doubled, to USD57.5 million from USD27.2 million. This was mainly because of the inclusion of the former Clariant masterbatches business, the acquisition of which closed on 1 July.

Distribution segment sales increased 12% YOY, to USD305.1 million, while segment operating income was up 6%, to USD18.0 million. Specialty engineered materials segment sales increased 7.4% YOY, to USD190.6 million, while segment operating income grew 61.7%, to USD30.4 million.

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) -- Carbon black manufacturer Orion Engineered Carbons (Houston, Texas) says it will raise prices by 20% globally for acetylene black after a period of investment in its production plant in France “to better serve the growing market demand for acetylene black used in lithium-ion (Li-on) battery production,” reported Chemweek.

The price increase takes effect on 1 March 2021 or as contracts allow.

Following Orion’s acquisition from LyondellBasell in 2018 of the plant at Berre l’Etang, France, the company has “adjusted the facility’s strategic focus,” which required new investment, it says. “The company has also been confronted with rising costs for packaging, transportation, and environmental obligations,” it adds.

Acetylene black is an ultra-pure specialty carbon black distinguished by its high electrical and thermal conductivity, and is used in applications such as Li-on batteries and high-end electrical cables.

As MRC informed earlier, in late 2015, Orion Engineered Carbons acquired Evonik's 52% stake, and DEG's 15% stake, in Qingdao Evonik Chemical (QECC). QECC is a carbon black joint-venture established by Evonik, DEG and Jiaozhou Finance Investment Center in 1994, in Qingdao, China.

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.

Orion Engineered Carbons is a worldwide supplier of Carbon Black. The company offers standard and high-performance products for Coatings, Printing Inks, Polymers, Rubber and other applications. Our high-quality Gas Blacks, Furnace Blacks and Specialty Carbon Blacks tint, colorize and enhance the performance of plastics, paints and coatings, inks and toners, adhesives and sealants, tires, and manufactured rubber goods such as automotive belts and hoses.
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MOSCOW (MRC) -- Lanxess has taken another major step on the road to climate neutrality: the specialty chemicals company inaugurated a nitrous oxide reduction plant at its site in Antwerp on February 10, Belgium, said the company.

The plant breaks down around 500 metric tons of nitrous oxide per year, which is equivalent to the climate impact of 150,000 metric tons of CO2. Lanxess has invested around EUR 10 million in its construction. A second plant is scheduled to start up in 2023 and is expected to eliminate a further 300,000 tons of CO2 equivalents (CO2e).

"We are committed to the Paris Agreement to limit global warming to less than two degrees Celsius. The new nitrous oxide reduction plant in Antwerp is a key building block in LANXESS becoming climate-neutral by 2040,” explained LANXESS Board of Management member Hubert Fink. At the same time, he highlighted the economic benefits of the climate protection measures, saying that “Climate protection is a business case for us. On the one hand, we are becoming an even more sustainable partner for our customers. On the other, we are reducing our costs because we need fewer certificates from the European Emissions Trading System and use less energy thanks to innovative technologies."

As per MRC, Lanxess is continuing the systematic expansion of its production for synthetic iron oxide pigments. The company is the only supplier worldwide to produce these pigments using the Laux process.

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, excluding producers' inventories as of 1 January, 2020).
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MOSCOW (MRC) -- Rohm (Darmstadt, Germany) says the methacrylates market is facing “a global shortage of several petrochemical raw materials” as a result of global business and service disruptions, which could lead to extended product lead and delivery times, reported Chemweek.

The company says its methacrylates monomer team is “currently addressing a number of challenges” and that it remains in close contact with its suppliers in order to “effectively manage supply and continue production” of its product portfolio for customers.

Rohm says in its latest market update it is monitoring and managing “external constraints in intercontinental logistics, including container shipping shortages, and limited availability of packaging materials.” Seasonal high water levels at the Rhine river in Europe have put “additional stress on the supply chain of raw materials and finished goods,” it says.

The company’s logistics and supply chain teams are “working hard to secure supply by accessing the resources of our global production network,” it says, adding that working closely with its customers and having open communication are “key to keeping the methacrylates industry supplied during these turbulent times.”

However, Rohm warns that “despite all efforts, extended lead and delivery times may occur. In such cases, details will be communicated as early as possible.”

Earlier this week Rohm announced a price increase for its polymethyl methacrylate (PMMA) products in Europe due to a sharp rise in raw material costs. In January it also put methyl methacrylate (MMA) and all its other methacrylate monomer products in Europe on sales control with immediate effect due to a shortage of raw materials.

In December it also highlighted a tightening of the MMA market, with “prices surging in Asia and continuously firming in Europe” on strong demand, combined with production and supply issues and rising prices for feedstocks such as acetone.

“The most salient issue for the MMA industry is not demand but feedstock availability, which affects costs and operating rates. The European acetone market has gone through a volatile first few weeks of 2021, with acute tightness developing across Europe that has brought big spikes in spot pricing,” according to IHS Markit’s latest Global Acrylates and Superabsorbent Polymer monthly market report.

As MRC informed previously, Rohm plans to carry out a scheduled turnaround in September 2021 of its methacrylate monomers plant at Worms, Germany. No specific date or duration for the planned maintenance program has been given. The company announced in early January a series of scheduled shutdowns for four of its methyl methacrylate (MMA) and methacrylate monomer facilities in the first half of 2021, including one planned for 10–22 March also at its Worms plant. The other plants planned for turnaround in the first six months of the year are in Wesseling, Germany; Shanghai, China; and Fortier, Louisiana.

The principal application, consuming approximately 75% of the MMA, is the manufacture of polymethyl methacrylate acrylic plastics (PMMA). Methyl methacrylate is also used for the production of the co-polymer methyl methacrylate-butadiene-styrene (MBS), used as a modifier for polyvinyl chloride (PVC).

According to MRC's DataScope report, imports of suspension polyvinyl chloride (SPVC) into Russia totalled about 40,800 tonnes in 2020, down by 20% year on year. At the same time, exports decreased by 6%. December SPVC imports to Russia dropped to 0,600 tonnes from 1,600 tonnes in November. High PVC prices in foreign markets and a seasonal decline in demand in the last two months had put serious pressure on import purchases of PVC from Russian companies.
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MOSCOW (MRC) -- SIMONA AG has completed the acquisition of a 70 per cent interest in MT Plastik AS, Duzce, Turkey, by closing the transaction effective from 1 February 2021, said the company.

Due to the tragic death of one of the owners of MT Plastik, Tufan Kalkan, the closing process had been delayed (cf. release of 21 Dec. 2020).

In future, the company will trade under the name of SIMONA PLASTECH. In making this acquisition, SIMONA aims to become a market leader in the business segment of PVC foam sheets with regard to quality, breadth of product range and market share.

The acquisition of MT Plastik will add new and established products to the portfolio and unlock potential in the field of construction and advertising applications under the umbrella of the newly formed Advertisement and Building Industry business line.

As it was written earlier, on 9 November 2020, SIMONA AG had announced that it was planning to acquire the majority interest in the Turkish market leader for PVC foam sheets, MT Plastik AS, Duzce, Turkey, and that the transaction was to be closed by 31 December 2020.

Asc per MRC, negotiations over prices of European polyvinyl chloride (PVC) for February shipments to the CIS countries began last week. Traditionally for the past several months, European producers announced another increase in export PVC prices - by EUR60/tonne and higher - due to higher feedstocks prices.
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