Sinopec aims to grab bigger share of fast-growing marine fuel market

MOSCOW (MRC) -- China's Sinopec Corp, the top Asian oil refiner, is offering its refineries incentives to boost their output of very low sulfur fuel oil (VLSFO) three sources with knowledge of the matter said, to grab a bigger share of the fast-growing marine fuel market, reported Reuters.

The company is crediting its refineries 150 yuan (USD23.35) for every ton of VLSFO they produce, they said.

The scheme, which started earlier this year, is aimed at motivating its plants to produce more VLSFO as a domestic diesel supply overhang idled some of the state oil firm's refining capacities, the sources said.

Sinopec declined to comment.

As MRC informed previously, Sinopec Engineering (Group) and ExxonMobil (Huizhou) Chemical (EMHCC) have recently entered into a BEPC (basic design, engineering, procurement and construction) contract for the proposed Huizhou Chemical Complex Project (Phase I). The main units of the project include a 1.6 million tonnes/year ethylene flexible feed steam cracker, downstream polymer and derivative units and utilities. The main product units include two performance polyethylene (PE) lines and two differentiated performance polypropylene (PP) lines.

Ethylene and propylene are the main feedstocks for the production of PE and PP, respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.

China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group established in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec Group"s key business activities include the exploration and production of oil and natural gas, petrochemicals and other chemical products, oil refining.
MRC

Linde India posts 13.2% increase in sales for Q1 CY2021

MOSCOW (MRC) -- Linde India Ltd., an Indian subsidiary of industrial gas manufacturer Linde Plc, has announced its results for the second quarter ended March 31, 2021, according to Kemicalinfo.

CY 2021 Q1 Results- QoQ: the company’s net profit grew 434% to Rs 303.23 crores (USD41.3 million) for the period ended March 31, 2021 as against net profit of Rs 56.8 crores (USD7.7 million) for the previous quarter.

Net sales dropped 7% to Rs 445.57 crores (USD60.7 million) during the period ended March 31, 2021 as compared to Rs 477.94 crores (USD65.1 million) during the previous quarter.

CY 2021 Q1 Results- YoY: the company’s net profit increased 677% to Rs 303.23 crores (USD41.3 million) for the period ended March 31, 2021 as against net profit of Rs 39.03 crores (USD5.3 million) for the the prior-year quarter.

Net sales grew 13.2% to Rs 445.57 crores (USD60.7 million) during the period ended March 31, 2021 as compared to Rs 393.79 crores (USD53.6 million) during the the prior-year quarter.

As MRC wrote before, in January, 2021, Linde said it will build, own, and operate the world’s largest proton exchange membrane (PEM) electrolyzer plant for the production of green hydrogen at the Leuna chemical complex in Germany.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.
MRC

PP prices decreased in Russia on stronger supply in late April

MOSCOW (MRC) - Russia's supply of polypropylene (PP) improved in the Russian market in the first half of April, and this factor halted the dynamic price growth that began in January. The increased supply will lead to price cuts in the second half of April. Also, the situation in foreign markets began to put pressure on PP prices in Russia, according to the ICIS-MRC Price Report.

Russian converters faced a limited supply of polypropylene from local producers in the first three months of the year.
The dynamic growth of polypropylene prices in Europe and Turkey also had an additional impact on the market.
As a result, PP prices had dynamically increased during this period and by the beginning of April it reached record levels.

But already in April, the supply of polypropylene on the Russian market increased, including from the largest seller.
Prices began to decline in Turkey, and there were also offers for the supply of polypropylene from Asia. And all these factors led to the beginning of the decline in PP prices in Russia.

Some Russian converters could not fully replenish their inventories of polypropylene in the first three months of the year due to lack of supply in the market. And the dynamic rise in prices further limited the ability to replenish stocks due to the limited working capital.

It is also worth noting that the situation with PP in Europe and Turkey had an additional affect prices in Russia; export prices of Russian polypropylene for shipments to these regions exceeded domestic prices in Russia. By the beginning of April, the situation with the availability of polypropylene in the Russian market had changed, the supply increased from the largest seller, while some converters limited their purchases.

Restrictions on purchases was a result of problems with working capital and hopes for an early decline in prices.
At the same time, the situation with prices in Turkey began to change, and Russian companies also began to receive offers for PP supplies from Asia, including China.

The growing supply of polypropylene in the market, low demand and cheap offers for imports, albeit with a rather long delivery time, began to put downward pressure on polypropylene prices in Russia. So, if at the beginning of April the prices of homopolymer PP significantly exceeded the level of Rb180,000/tonne CPT Moscow, including VAT at a number of sellers.

At the end of the month, some sellers cut their prices below the level of Rb170,000/tonne CPT Moscow, including VAT. At the same time, it should be noted that in the propylene copolymer market, the lack of supply of polypropylene remained during all April. And only for the May shipments, some sellers announced a slight price cut.
And some of the sellers practically rolled over April prices of propylene copolymers for May.
MRC

COVID-19 - News digest as of 12.05.2021

1. Limited flights and a COVID-19 cases in India will keep jet fuel demand below pre-pandemic levels

MOSCOW (MRC) -- Restrictions on long-distance flights and the surge in COVID-19 in India will keep jet fuel demand below pre-pandemic levels over the coming months, even as an easing of lockdown in some parts of the world boosts jet fuel demand, said Reuters. Vaccination success and reduced infection rates in Western countries are allowing travel to resume. It will, however, be dominated by short-haul flights, which account for almost two thirds of the total fuel used by the sector, but on average use around 35 times less fuel than long-haul flights, the International Energy Agency estimates. The result will be jet fuel demand of around 5.8 million barrels per day (bpd) this year, almost 30% higher than 2020, but below the 8 million bpd of 2019 before the pandemic struck, energy consultancy FGE says.

MRC

MEGlobal nominates ACP for June 2021 at USD830 per tonne

MOSCOW (MRC) -- MEGlobal has announced its Asian Contract Price (ACP) for monoethylene glycol (MEG) to be shipped in June 2021, according to the company's press release.

Thus, on 10 May, the company said ACP for MEG would be at USD830/MT CFR Asian main ports for arrival in June 2021, which corresponds to the previous month's level.

The June 2021 ACP reflects the short term supply/demand situation in the Asian market.

As MRC reported earlier, MEGlobal announced its May ACP for MEG at USD830/MT CFR Asian main ports, down by USD100/tonne from April 2021.

MEG is one of the main feedstocks for the production of polyethylene terephthalate (PET).

According to ICIS-MRC Price report, May formular prices for most contract customers were in the range of Rb103,000-117,000/tonne CPT Moscow, including VAT.

MEGlobal is a fully integrated supplier of monoethylene glycol (MEG) and diethylene glycol (DEG), collectively known as ethylene glycol (EG).
MRC