Ukraine made a decision to return the amounts of preliminary special duties on the import of polymers into the country

MOSCOW (MRC) - The Interdepartmental Commission on International Trade (ICMT) of Ukraine has considered the information of the Ministry of Economy of Ukraine on the action of special measures regarding the import of polymer materials to Ukraine, regardless of the country of origin and export, Uryadovy Courier reports.

In accordance with Article 11 of the Law of Ukraine "On the Application of Special Measures Regarding Import to Ukraine", the Commission considered and decided that the following should be returned:

1. The difference between the amount of the preliminary special duty paid at the rate of 18% in accordance with the decisions of 22.05.2020 No. SP-445/2020 / 4411-03 and of 22.06.2020 No. SP-451/2020 / 4411-03, and the amount the final special duty payable at the rate of 12.4% in accordance with the decision of November 20, 2020 No. SP-466/2020 / 4411-03 for suspension polyvinyl chloride, with the Fikentcher constant ranging from 64 to 69, which is classified by code 3904 10 00 00 according to UKTZED regardless of the country of origin and export.

2. The amount of the preliminary special duty paid at the rate of 18% during the period of validity of decisions dated 22.05.2020 No. SP-445/2020 / 4411-03 and dated 22.06.2020 No. SP-451/2020 / 4411-03, on goods, imports which did not harm the national manufacturer, which has such a description "Suspension polyvinyl chloride, with Fikentcher constant up to 63.9 and from 69.1, classified by code 3904 10 00 00 according to UKTZED, regardless of the country of origin and export."

The amounts of the preliminary special duty are subject to return in the presence of a quality certificate drawn up by the manufacturer of the goods or the conclusion of expert institutions in accordance with part three of Article 357 of the Customs Code of Ukraine, confirming the physical and chemical properties of the goods. The decision of the Commission dated April 23, 2021 No. SP-492/2021 / 4411-03 comes into force from the date of publication of this message.

In November last year, it was reported that the Interdepartmental Commission on International Trade (ICMT) of Ukraine changed the import duty on suspension polyvinyl chloride (SPVC) and high-density polyethylene (HDPE). So, based on the results of the meeting, it was decided to extend the special measures of 22 June, 2020 regarding the import of HDPE and PVC with some changes. Special measures are introduced for three years from the date of the duty in the amount of: from the date of application of the duty - 12.4%, 12 months after the application of the duty - 12%, 24 months after the application of the duty - 11.5%. The corresponding decision was made by MKMT on November 20 at the request of Karpatneftekhim LLC (Kalush, Ivano-Frankivsk region). It was noted that the import of these goods to Ukraine from a whole group of African, Asian and a number of island countries, as well as member countries of the European Free Trade Association (EFTA) and the CIS, except Russia, will not be subject to special duty.

According to Market Report's DataScope review, in March import supplies of SPVC to the Ukrainian market decreased to 1,700 tonnes against 2,100 tonnes, European manufacturers further reduced their export sales due to a shortage in the domestic market. At the end of January - March 2021, the total volume of suspension imports reached 6,400 tonnes against 11,500 tonnes a year earlier. Limited export quotas from European and North American producers were the main reason for such a serious drop in imports.
MRC

MOSCOW (MRC) -- LyondellBasell Industries N.V. (Rotterdam the Netherlands) announced another step towards its ambition to advance the circular economy by making virgin quality polymers from raw materials derived from plastic waste at its Wesseling, Germany, site, said Chemengonline.

Produced by the thermal conversion of plastic waste, this raw material is converted into ethylene and propylene in the LyondellBasell production facilities, and then processed into polypropylene (PP) and polyethylene (PE) in the downstream units for plastics production. The first use of raw material derived from plastic waste follows the company’s successful production of plastic materials made from renewable-based raw materials such as used cooking oil, which helps to reduce CO2 over the product life cycle and reduce the use of fossil-based raw materials.

"Advancing the circular economy requires definitive action and by consistently using these new raw materials in the production of polymers on a commercial scale, we are doing our part to help eliminate plastic waste and address climate change,” says Richard Roudeix, SVP Olefins & Polyolefins for Europe, Middle East, Africa and India. “We are expanding our range of sustainable solutions through our Circulen brand and the use of recycled content, offering our customers a way to use recycled polymers in a wide variety of applications."

The products made from recycled and renewable-based raw materials will be marketed by LyondellBasell under the Circulen brand name enabling brand owners to improve the sustainability of consumer products. They enable the production of high-quality plastics for strictly controlled applications such as food packaging and healthcare items. The LyondellBasell facilities manufacturing these products are certified according to the ISCC (International Sustainability & Carbon Certification) PLUS standard.

LyondellBasell has pledged to reduce CO2 emissions in its operations worldwide by 15% per ton of product produced by 2030 compared with 2015 levels, and produce and market two million metric tons per year of recycled or renewable-based polymers by 2030.

Additionally, LyondellBasell commissioned a pilot plant last year in Ferrara, Italy, to further develop its molecular recycling technology where plastic waste is converted into raw materials for the production of new plastics. The use of plastic waste under real-life conditions helps to further improve research efforts, the goal of which is to build a possible industrial-scale molecular recycling plant, which will further grow the use of raw material derived from plastic waste to produce new plastics.

These developments complement LyondellBasell’s activities in the field of mechanical recycling. Here, the Dutch joint venture Quality Circular Polymers (QCP) produces high-quality.

As per MRC, LyondellBasell, the world's largest polyolefins producer, has declared a force majeure (FM) on shipments of some polypropylene (PP) grades from its Ferrara plant in Italy as of May 3, according to NCT with reference to a source familiar with the issue. This plant is able to produce 285.000 tons/year of PP. At the time of press, no details were shared regarding the reason or duration of the FM.

According to MRC's ScanPlast report, 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.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies.
MRC

MOSCOW (MRC) -- Asahi Kasei’s net profit for the fiscal year ending March 2021 slumped by 23.2%, weighed down by weakness in its materials business, and as the company booked a one-off loss for the period, as per the Japanese producer's statement.

The materials segment was hit by global economic deterioration amid the coronavirus pandemic.

Sales for the segment declined by 9.3% year on year to Y991.2bn, with operating profit falling by 28% to Y66.5bn.

“Performance recovered from the second quarter with recovery of automotive-related markets and recovery of petrochemical market prices, but there was a significant impact from the pandemic especially in the first quarter,” Asahi Kasei said.

Meanwhile, the sharp decline in net income was caused by an extraordinary loss of Y22.3bn for the fiscal year 2020 incurred because of a semiconductor plant fire.

For the fiscal year ending March 2022, Asahi Kasei expects higher sales and operating income, backed by “significant recovery of performance in Material”, aided by improving automotive, petrochemicals and apparel-related markets.

As MRC informed before, in July 2019, Asahi Kasei decided to expand its plant for the artificial suede LamousTM in Nobeoka, Miyazaki Prefecture, Japan, by four million m2/year, increasing the total production capacity to 14 million m2/year upon completion in 2021.

Asahi Kasei Corporation is a multinational Japanese chemical company. Its main products are chemicals and materials science. It was founded in May 1931, using the paid in capital of Nobeoka Ammonia Fiber Co., Ltd, a Nobeoka, Miyazaki based producer of ammonia, nitric acid, and other chemicals. Now headquartered in Tokyo, with offices and plants across Japan, as well as China, Singapore, Thailand, USA and Germany.
MRC

MOSCOW (MRC) -- Efforts to get fuel supplies to areas in the United States facing shortages have been slowed because shipowners have mothballed US-flagged oil tankers that can make coastal voyages, reported Reuters with reference to shipping sources.

The shutdown of the Colonial Pipeline network to thwart a cyber attack has disrupted nearly half the East Coast's fuel supply and left parts of the southeast facing a severe shortage of gasoline and diesel. Colonial said it began to restart on Wednesday but warned it would take several days for fuel supply chain to return to normal.

One way to alleviate the shortage would be to transport fuel via ship from the refineries on the Gulf coast that make the fuel that typically goes through the pipeline. The ships could carry the fuel to the cities and states on the East Coast that need it.

Only US-flagged tankers are permitted to make voyages carrying US goods along the coastline of the United States, under legislation known as the Jones Act.

Several of the roughly 60 vessels in the US-flagged tanker fleet, which mostly include tankers and barges, have been taken out of service because of slow demand before the Colonial Pipeline shutdown, according to company executives and market sources. Idled tankers would take a minimum of 10 days to be restarted, said a spokesperson for Jones Act shipping company Overseas Shipholding Group Inc.

The US government is considering waiving the Jones Act restrictions under emergency measures so that more ships can make the journey.

Refiners and wholesalers have provisionally secured at least three foreign flagged vessels in the event a Jones Act waiver is issued by the US government, according to three sources familiar with the matter. "Nothing is moving yet it's all just in case," said one shipbroker.

Even with a Jones Act waiver and finding international ships to charter, only a few ports in the worst affected regions in the US Southeast, such as in Florida and Savannah, Georgia, are able to receive large tankers, experts said.

As MRC wrote previously, Valero Energy chartered an oil products' tanker for storage in the US Gulf Coast on 7 May amid a cyber attack that shut the Colonial pipeline, the biggest US fuel pipeline. The tanker, called the Nave Titan, is currently in the Mississippi River in southern Louisiana, according to Refinitiv Eikon shipping data. Nave Titan can hold up to 330,000 barrels of oil, according to the tanker data.

We remind that Marathon Petroleum, the largest US refiner, can meet its supply commitments for now but is working to find alternative ways to ship motor fuels to the eastern United States if the Colonial Pipeline shutdown is extended.

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

MOSCOW (MRC) -- US refiner Citgo was granted the second Jones Act waiver by the US government after a cyberattack shut the Colonial Pipeline, the biggest US fuel pipeline, late in the first week of May, reported Reuters with reference to two sources familiar with the matter.

At the same time, Valero received the first Jones Act waiver, Reuters reported yesterday.

Earlier Friday the US Department of Homeland Security said it approved a second Jones Act waiver request to a company to ease fuel supply constraints between Gulf Coast and East Coast ports, but did not name the company.

Citgo did not immediately respond to a request for comment.

As MRC wrote previously, Valero Energy chartered an oil products' tanker for storage in the US Gulf Coast on 7 May amid a cyber attack that shut the Colonial pipeline. The tanker, called the Nave Titan, was then in the Mississippi River in southern Louisiana, according to Refinitiv Eikon shipping data. Nave Titan can hold up to 330,000 barrels of oil, according to the tanker data.

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