April prices of European PVC rose by three-digit amount for CIS markets

MOSCOW (MRC) -- Negotiations over prices of European polyvinyl chloride (PVC) for April shipments to the CIS countries began last week. A shortage continued to put a major pressure on European producers' export prices, in some cases, a price increase was EUR100/tonne from March, according to ICIS-MRC Price report.

The April contract price of ethylene was settled up by EUR40/tonne from the previous month, which theoretically allows to talk about an increase of EUR20/tonne in the net cost of PVC production. But in the past few months, the deficit was the determining factor in the market, and it was the shortage of polymer in the market that had led to a three-digit rise in export PVC prices. European producers announced an increase in export prices for the CIS countries in April by an average of EUR100/tonne.

Seasonal factors has started to play an increasing role in demand for PVC, many converters continue to gradually raise their capacity utilisation. But export quotas of European producers, on the contrary, decreased more and more with every passing month. Unstable operations at some producers' production capacities and strong demand led to an acute shortage of PVC in Europe.

Resin with K=58/70 accounted for the cutest shortage of export quotas. Many market participants could not fully meet their needs in this PVC from European producers. At the same time, it is often possible to agree on deliveries of no more than 50% of the submitted enquiry.

Overall, deals for April shipments of suspension polyvinyl chloride (SPVC) to the CIS markets were negotiated in the range of EUR1,185-1,245/tonne FCA, whereas the previous month's deals were discussed in the range of EUR1,085-1,145/tonne FCA.
MRC

LANXESS present two new heat-resistant yellow pigments for high-performance polymers

MOSCOW (MRC) -- LANXESS, specialty chemicals company, has expanded its Colortherm Yellow pigment range for heat-resistant high-performance plastics, as per the company's press release.

Two new inorganic yellow pigments are now available, namely Colortherm Yellow 5 and Colortherm Yellow 26.

Plastics can now be used in applications that would have been considered impossible just a few years ago. High-performance polymers with special physical or chemical properties are increasingly replacing metal, glass and ceramics. They are used for special applications in vehicles, electronics and process engineering as well as medical applications.

As the use of technical plastics in high-tech applications becomes more widespread, the requirement profile for the pigments used for coloring is also growing. In particular, the heat stability of the colorants is becoming a decisive quality factor. In the case of organic pigments, high processing temperatures often lead to accelerated decomposition; but inorganic alternatives can be subject to color variations at temperatures above 180 C.

For reliable yellow coloring of high-temperature polymers, LANXESS offers the modular Colortherm Yellow product range. It comprises the iron oxides Colortherm Yellow 5 and Colortherm Yellow 20 as well as Colortherm Yellow 26, Colortherm Yellow 30 and Colortherm Yellow 3950 zinc ferrites. The range covers not only the color spectrum of light, saturated yellow shades but also orange tones. Plastic formulations can thus be easily realized at processing temperatures of up to 300 C.

Due to their special manufacturing process, the color strength of the zinc ferrites Colortherm Yellow 26 and Colortherm Yellow 30 is up to 20 percent higher than comparable products. This means a corresponding lower level of pigment addition is required to color the plastic.

Thanks to an extensively equipped plastics technical center, LANXESS is able to provide customers with comprehensive advice in the use of its pigments. Its services also include analyzing thermal stability in customer-specific plastics applications.

As MRC reported earlier, LANXESS will enter the battery chemistry business with electrolyte production for lithium-ion batteries at its site in Leverkusen, Germany, beginning next year. The German chemicals company will produce electrolyte formulations for lithium-ion batteries "under the authorisation" of Guangzhou Tinci Materials Technology, a Chinese producer of battery materials that aims to become a regional supplier for battery cell manufacturers in Europe.

We remind that Russia's output of chemical products rose in February 2021 by 5.3% year on year. Thus, production of basic chemicals increased year on year by 7.5% in the first two months of 2021. February production of polymers in primary form was 861,000 tonnes versus 196,000 tonnes in January. Overall output of polymers in primary form totalled 1,770,000 tonnes in the first two months of 2021, up by 8.4% year on year.

LANXESS is a leading specialty chemicals company with about 19,200 employees in 25 countries. The company is currently represented at 74 production sites worldwide. The core business of Lanxess is the development, manufacturing and marketing of chemical intermediates, additives, specialty chemicals and plastics. Through Arlanxeo, the joint venture with Saudi Aramco, Lanxess is also a leading supplier of synthetic rubber.
MRC

BP expects to hit USD35 bn net debt target in Q1

MOSCOW (MRC) -- BP said it expected to hit its USD35 bn net debt target during the first quarter of 2021 after faster-than-expected progress on its disposals programme and a "strong" quarter driven by recovering oil prices, said the company.

The oil giant had said previously it expected to meet its debt forecast by the fourth quarter of 2021 at the earliest, down from a level of USD51.4 bn a year ago and USD38.9 bn at the end of 2020.

BP forecast raising USD4bn -USD6bn from disposals and said proceeds would now be at the upper end of this range, adding that 60% of surplus cash would be returned to shareholders via a buyback.

"This is a result of earlier than anticipated delivery of disposal proceeds combined with very strong business performance during the first quarter. We look forward to updating the market at our first quarter results, including further information on share buybacks," said chief executive Bernard Looney.

During the first quarter BP had received around USD4.7 bn in asset sales, including approximately USD2.4 bn from the completion of the sale of a 20% interest in Oman's Block 61 and $1bn as the final payment from the sale of its global petrochemicals business to INEOS.

It added that its target of USD25 bn of disposal proceeds between the second half of 2020 and 2025 was now underpinned by agreed or completed transactions of around USD14.7 bn with around USD10 bn of proceeds received.

As MRC informed earlier, Rosneft together with BP will develop the hydrogen business.
Together they will study the prospects for new projects using renewable energy sources (RES), as well as the use of technologies for capturing, utilizing and storing CO2. Earlier in Russia, Gazprom and Novatek spoke about their intention to create a hydrogen business and new technologies for the disposal of harmful emissions.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.


MRC

Trinseo raises April PC prices in Europe

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 April 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 EUR400 per metric ton.

As MRC informed earlier, Trinseo last raised its prices for all PC grades in Europe on 1 March 2021 by EUR600 per metric ton.

According to MRC's ScanPlast report, Russia's overall consumption of PC granules (excluding exports from Belarus) totalled 8,100 tonnes in January 2021, up by 20% year on year (6,800 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

Global chemical output rises by 1.4% in February

MOSCOW (MRC) -- Global chemical output rose by 1.4% in February, at a slightly slower pace than January, said American Chemistry Council (ACC).

The ACC’s Global Chemical Production Index (CPRI) measures the production volume of the chemical industry for 33 key nations, sub-regions, and regions, all aggregated to the world total. During February, output was weak in most regions, with chemical production increasing in the Commonwealth of Independent States and in the Asia-Pacific region.

Headline global production was up 14.4% year on year on a three-month moving average (3MMA) basis. Global output stood at 132% of its average 2012 levels. Global capacity rose 0.2% and was up 1.9% year on year. With improving production capacity utilisation in the global chemical industry rose one point to 89.2%, above February levels.

The effects of the mid-February freeze influenced chemical production in North America. Production fell by 3.3% in the region, with activity improved in Mexico and soft in Canada. Regional activity was down by 3.9% year on year with year-earlier declines in the US, Canada, and Mexico.

As MRC informed earlier, there has been a shortage of suspension polyvinyl chloride (SPVC) in the world since the end of last year, prices are breaking new historical records. The Russian market also does not stand aside from the global trends, producers intend to achieve a further rise in April prices, and in some cases, a price increase of Rb10,000/tonne and higher is being discussed.

As per MRC, Russia's output of chemical products rose in February 2021 by 5.3% year on year. Thus, production of basic chemicals increased year on year by 7.5% in the first two months of 2021. According to the Federal State Statistics Service of the Russian Federation, mineral fertilizers accounted for the greatest increase in the January-February output. Production of benzene dropped to 113,000 tonnes in February 2021, compared to 120,000 tonnes a month earlier. Overall output of this product reached 241,000 tonnes over the stated period, down by 7.5% year on year.
MRC