POLYPLASTIC spent 2,4 million Rb on coronavirus prevention in 2020

MOSCOW (MRC) -- The total amount of R&P POLYPLASTIC’s expenditures for activities on protecting its employees from COVID-19 and resisting further spread of coronavirus in 2020 equaled to over 2.4 million Rubles, said the company.

In total almost 1 400 pairs of gloves and 16 000 protection single use and reusable masks were purchased for the company’s production plants. R&P POLYPLASTIC compensated the cost of COVID-19 test to their employees and purchased express-tests. Industrial premises were cleaned with special means of disinfection, all public areas were equipped with antibacterial gels and sanitizers.

The cost of protective measures amounted to 1.8 million Rubles and in terms of equivalent amount for each worker – 3 292 Rubles/person. The amount is comparable to similar costs of petrochemical industry giants.

Moreover, R&P POLYPLASTIC allocated over half a million Rubles for combating coronavirus in its regions of presence handing over 10 thousand medical gloves and four oxygen concentrators to medical institutions of the Samara and Saratov regions.

As per MRC, POLYPLASTIC invests over 3.3 million Euros into expansion of production. Within the frame of a new investment project, R&P POLYPLASTIC – a Russian plastics producer – and KraussMaffei have recently concluded a contract for the delivery of two ZE 80 x 42D BluePower twin-screw extruders to extend the company's production capacity. Due to travel restrictions caused by the COVID-19 pandemic, both parties conducted the entire contract negotiations online remotely and signed the contract at the end of October. This contract further strengthens the long-standing, constructive and solution-oriented cooperation between R&P POLYPLASTIC and KraussMaffei.

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.
MRC

Most units shut at Marathon Galveston Bay Refinery due to cold weather

MOSCOW (MRC) -- Most units were shut on Sunday night and Monday morning at Marathon Petroleum Corp's 585,000 barrel-per-day Galveston Bay Refinery in Texas City, Texas, as temperatures plunged due to a Arctic cold front reaching the Gulf Coast, said sources familiar with plant operations, said Reuters.

Marathon plans to begin restarting units shut by the severe cold weather in the next few days as temperatures rise, which is not expected before Tuesday afternoon, the sources said. Units shut last week for a planned overhaul underway at the refinery, will remain shut.

As MRC informed previously, Marathon Petroleum Corp plans to operate the gasoline-producing fluidic catalytic cracker (FCC) at its 585,000 barrel-per-day (bpd) Galveston Bay Refinery in Texas City, Texas. The 140,000 bpd FCC restarted on Sunday, 12 April, after repairs following a March 23 brief power outage that shut the unit.

Propylene is the main feedstock for the production of polypropylene (PP).

According to MRC's DataScope report, last month, Russian companies actually kept the November volume of external PP purchases, imports amounted to 21,300 tonnes. Thus, overall PP imports into Russia reached 224,000 tonnes in January-December 2020, compared to 182,800 tonnes a year earlier. Purchasing of all grades of propylene polymers in foreign markets increased, with homopolymer PP imports accounting for the most noticeable rise.
MRC

OQ Chemicals declares global sales control for carboxylic acids, aldehydes

MOSCOW (MRC) -- Global sales control has been announced by OQ Chemicals (Monheim am Rhein, Germany) on all grades of its carboxylic acids and aldehydes, said Chemweek.

N-heptanoic acid, n-pelargonic acid, n-heptanal, n-nonanal, and n-undecanal have all been placed under sales control, effective immediately.

OQ says it has implemented the measure due primarily to strong demand and recent short-term raw material disruptions, as well as in order to prepare for a planned maintenance turnaround at the company’s production site at Bay City, Texas.

"OQ Chemicals will be evaluating all orders for the future supply of the products listed above to ensure that the company can maintain the reliability of supply for its long-term customers per contractual and other ongoing commitments," it says. Sales control will remain in place until further notice, it adds.

The company announced sales control for its US oxo intermediate products in late January due to increased demand and supply shortages for oxo intermediate products produced at its Bay City facility.

As MRC wrote before, in September 2020, OQ Chemicals entered into an agreement to license its advanced proprietary technology for the production of ethylene and propylene derivatives to Duqm Refinery and Petrochemicals Industries Company (DRPIC) in Oman. DRPIC, a joint venture between Oman Oil Company and Kuwait International Oil Company, is a planned grassroots petrochemical complex at Duqm, Oman. In all, DRPIC awarded twelve license packages to international licensors.

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).

OQ Chemicals, formerly Oxea, is a global manufacturer of oxo intermediates and oxo derivatives, such as alcohols, polyols, carboxylic acids, specialty esters, and amines. These products are used for the production of high-quality coatings, lubricants, cosmetics and pharmaceutical products, flavours and fragrances, printing inks and plastics. OQ Chemicals is part of OQ, an integrated energy company that delivers sustainability and business excellence. OQ operates in 16 countries and covers the entire value chain from exploration and production to the marketing and distribution of its products.
MRC

Sipchem restarts ethyl acetate plant at Jubail, Saudi Arabia

MOSCOW (MRC) -- Sahara International Petrochemical (Sipchem) has restarted its ethyl acetate plant, Sipchem Chemicals (SCC), after a scheduled turnaround, said Chemweek.

The turnaround at SCC, which was conducted on its 100,000 t/yr ethyl/butyl acetate swing unit, began on 1 February 2021.

Sipchem, a producer of methanol, polymers, and acetic acid, in 2019 merged its operations with fellow Saudi Arabia-based Sahara Petrochemicals, a supplier of polypropylene (PP). Since the merger, Sipchem has begun to operate a 468,000 t/yr propane dehydrogenation unit.

As MRC reported previously, Sipchem has recently restarted its PP and low density polyethylene (LDPE) plants in Jubail after completing the maintenance works. The turnarounds also began on 1 February, 2021, and lasted during approximately six days.

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). Supply of exclusively PP random copolymer increased.
MRC

Crude oil futures strengthen amid demand recovery hopes, supply tightness

MOSCOW (MRC) -- Crude oil futures strengthened during mid-morning trade in Asia Feb. 15 as the demand outlook brightened on hopes that the coronavirus pandemic is abating and on expectations of an upcoming stimulus package from the US, reported S&P Global.

The gains are also buoyed by the tightness in supply from OPEC+ production cuts and supplemented by disrupted production in the US.

At 10:52 am Singapore time (0252 GMT), the ICE Brent April contract was up by USD1.26/b (2.01%) from the Feb. 12 settle to USD63.68/b, while the March NYMEX light sweet crude contract was up USD1.26/b (2.11%) to USD60.73/b.

The progress made in combating the coronavirus pandemic globally contributed to the strong outlook for economic recovery across the broader financial markets, including oil.

"More countries and regions are easing lockdown measures with vaccine rollouts helping to contain the spread of the coronavirus," Margaret Yang, strategist at DailyFX, said in a Feb. 15 note.

"A marked decline in daily new infections painted a brighter outlook of economic recovery and normalization of business activity. A better-handled pandemic situation, alongside an impending Democratic fiscal stimulus package, have buoyed reflation hopes and led equity, crude oil and industrial metals higher," she added.

The US stimulus package, currently proposed at USD1.9 trillion, is making significant headway in its approval process, giving market participants hope for a smooth and speedy economic recovery in the US.

"A risk-on tone across markets continues to benefit commodity markets...with investors focused on the prospect of US stimulus measures boosting demand," ANZ analysts said in a Feb. 15 note.

Alongside bolstered expectations of demand recovery, supply side fundamentals are also providing support to the market, fueling the continued rally.

The OPEC+ alliance is maintaining supply curbs through the month, with Saudi Arabia reducing its production voluntarily by an additional 1 million b/d till March, which is clearing oil surplus in the market, according to analysts.

Furthermore, the risk of increased production from US shale oil companies amid rising oil prices has not materialized due to poor weather conditions in the region, making production difficult and keeping supply in the global markets tight.

"A barrage of a winter storm raging across the Permian Basin (is) resulting in crude streaming from those wells to slow or halt completely according to boots on the ground," Stephen Innes, chief global strategist at Axi, said in a Feb. 15 note.

As MRC informed previously, oil producers face an unprecedented challenge to balance supply and demand as factors including the pace and response to COVID-19 vaccines cloud the outlook, according to an official with International Energy Agency's (IEA) statement.

We remind that the COVID-19 outbreak has led to an unprecedented decline in demand affecting all sections of the Russian economy, which has impacted the demand for petrochemicals in the short-term. However, the pandemic triggered an increase in the demand for polymers in food packaging, and cleaning and hygiene products, according to GlobalData, a leading data and analytics company. With Russian petrochemical companies having the advantage of access to low-cost feedstock, and proximity to demand-rich Asian (primarily China) and European markets for the supply of petrochemical products, these companies appear to be well-positioned to derive full benefits from an improving market environment and global economy post-COVID-19, says GlobalData.

We also remind that in December 2020, Sibur, Gazprom Neft, and Uzbekneftegaz agreed to cooperate on potential investments in Uzbekistan including a major expansion of Uzbekneftegaz’s existing Shurtan Gas Chemical Complex (SGCC) and the proposed construction of a new gas chemicals facility. The signed cooperation agreement for the projects includes “the creation of a gas chemical complex using methanol-to-olefins (MTO) technology, and the expansion of the production capacity of the Shurtan Gas Chemical Complex”.

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). Supply of exclusively PP random copolymer increased.
MRC