Global crude oil market anticipates strong recovery in demand, although Asia may fall behind

MOSCOW (MRC) -- The oil market is largely convinced that a strong recovery in demand is imminent, based on the view that the world is recovering from the coronavirus pandemic and economies are rebounding. Asia may be a late arrival to the impending crude oil party, reported Reuters.

Although this may be true for North America and Europe, the top oil-consuming region of Asia is looking somewhat less optimistic, with crude demand in top importers China and India presenting a mixed outlook.

China, the world's biggest crude buyer, looks set for another month of modest imports in May, as several refineries undergo scheduled maintenance.

India, Asia's second-biggest importer, also is on track to record a soft May import number, even before the impact of the current coronavirus wave on demand shows up in monthly purchases.

While these are both likely temporary factors, it does signal that the pick-up in Asia's crude oil demand may not be as rapid as what most analysts are expecting for the rest of the major consuming regions.

As MRC informed earlier, China's crude oil imports fell 3% from January to June versus a year earlier, in the first first-half contraction since 2013, as an import quota shortage, refinery maintenance and rising global prices curbed buying. Imports totalled 40.14 million tonnes last month, data released by the General Administration of Customs showed on Tuesday, equivalent to 9.77 million barrels per day (bpd).

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 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.
MRC

MOSCOW (MRC) -- BASF, the world's petrochemical major, will build a battery recycling prototype plant in Schwarzheide, Germany, at the site of its cathode active materials (CAM) plant, as per the company's press release.

The prototype recycling plant will allow for the development of operational procedures and optimization of technology to deliver superior returns of lithium, nickel, cobalt and manganese from end-of-life lithium-ion batteries as well as off spec material from cell producers and battery material producers.

With the expected rapid growth of the electric vehicle market, recycling provides competitive and sustainable access to relevant metals for cathode active materials. The extracted metals will be used to produce new cathode active materials and will enable a circular economy for the battery value chain.

This investment will create about 35 new production jobs, with startup planned for early 2023. Battery recycling is an important long-term market requirement in the electric vehicle market to reduce its CO2 footprint, as well as to meet stricter policy measures, expected under the proposed EU Battery Regulation, including recycling efficiencies and material recovery targets for nickel, cobalt and lithium.

The Schwarzheide production site is based in Eastern Germany in the federal state of Brandenburg. The investment in Schwarzheide reinforces BASF’s support of the European Commission’s agenda towards a European battery production value chain and is part of the “Important Project of Common European Interest (IPCEI)” approved by the European Commission on December 9, 2019, under the European Union State aid rules.

As MRC reported earlier, in June, 2021, Trinseo, a global materials company and manufacturer of plastics, latex binders, and synthetic rubber, and BASF, the world's petrochemical major, announced the intention to expand their businesses with the production of styrene monomer (SM) based on circular feedstock. Trinseo has procured first supplies of SM based on circular feedstock from BASF for use in its Solution-Styrene Butadiene Rubber (S-SBR) and polystyrene (PS) products. Trinseo supplies S-SBR to major tyre manufacturers while its PS products are used in applications such as food packaging and appliances. The first few customers have already processed the material, said the company.

According to MRC's ScanPlast report, Russia's estimated consumption of PS and styrene plastics totalled 236,110 tonnes in the first five months of 2021, up by 27% year on year (172,360 tonnes). May estimated consumption was 48,880 tonnes, up by 66% year on year.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
MRC

MOSCOW (MRC) -- The Polyolefins Company (TPC) has decided not to shut its low denisty polyethylene (LDPE) plant in Jurong Island, Singapore in mid-July 2021 for maintenance, according to CommoPlast with reference to market sources.

The turnaround at this plant with a capacity of 260,000 mt/year of LDPE was initially expected to last for 45 days.

TPC last conducted maintenance at its LDPE plant in Jurong Island in July 2018.

The company also operated polypropylene (PP) plant with the combined capacty of all lines of 680,000 mt/year of PP at the same site, where a major 45-day overhaul was scheduled to begin in mid-July. Only part of this plant would be shut during the time, according to a source close to the producer. Affected grades might include PP random copolymers and terpolymer, wherease the homo-PP line would remain operating.

The company's polyolefins plants in Singapore receive feedstock from No. 2 cracker of the Petrochemical Corporation of Singapore (PCS), which was also to be shut for 30 days of repairs in July.

According to MRC's ScanPlast report, May estimated LDPE consumption in Russia grew to 47,730 tonnes from 37,630 tonnes a month earlier. Russian producers increased their LDPE shipments to the domestic market by reducing exports. Russia's estimated LDPE consumption totalled about 235,610 tonnes in the first five months of 2021, up by only 1% year on year.
MRC

MOSCOW (MRC) -- China's June diesel exports rebounded from May and more than doubled from the same period last year, as refiners shipped out more surplus barrels amid record refinery production, according to Hydrocarbonprocessing.

Diesel shipments last month reached 2.36 million tons, versus 1.68 million tons in May and 1.04 million tons in June 2020, data from the General Administration of Customs showed on Sunday.

Chinese refineries processed at record rates in June as plants returned from maintenance and due to the start-up of a new crude unit at private mega refiner Zhejiang Petrochemical Corp in April.

Traders also rushed to bring in earlier booked cargoes of blending fuels - light cycle oil and mixed aromatic - before a new tax came into effect, adding to a domestic fuel surplus.

Jet kerosene exports also increased in June to 910,000 tons, the highest level since April 2020 and compared with 770,000 tons a year earlier. June gasoline exports were 1.45 million tons, down from 1.55 million tons in May but up 91% from June 2020.

For the first half of this year, diesel exports totalled 13.01 million tons, up 14.6% from the same period last year, while gasoline exports rose 21.3% to 9.56 million tons Sunday's data also showed China's June LNG imports were 6.72 million tonnes, easing from 7.03 million tons in May.

Imports in the first six months rose 27.8% on the year to 39.78 million tons, as companies extended strong purchases even after the peak-demand heating season ends in mid-March, helping push up Asian spot prices of the super-chilled fuel.

As MRC reported earlier, in April, 2021, Zhejiang Petrochemical Co Ltd (ZPC) started up its No. 2 cracker in Zhoushan, China, which is part of the company's phase 2 petrochemical project in the cournty. Thus, the cracker with an annual capacity of 1.4 million tons/year of ethylene and 700,000 tons/year of propylene began trial runs last week.

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 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.
MRC

MOSCOW (MRC) -- Specialty colourant supplier Chroma Color Corp. has appointed Shruti Singhal as its new CEO and member of the company board of directors, said Canplastics.

Singhal replaces outgoing Chroma CEO Tom Bolger, who served in the position for the past 16 years. "We have been fortunate to have Tom Bolger’s leadership throughout our investment which has seen the company deliver record breaking growth, the completion of seven acquisitions and the integration of those businesses which has expanded Chroma’s footprint and broadened offerings to our customers,” Chroma board chairman George Abd said. “While we will miss Tom’s leadership day to day, he will continue to work with Shruti and the company as we move forward."

Singhal has worked in North America and Europe, and has held positions of increasing management and executive responsibility with multinational companies including Henkel, Cognis (now BASF), Rohm & Haas, The Dow Chemical Co., Ashland, Solenis, and General Cable. Prior to joining Chroma, he most recently served as president for the DSM’s engineering materials business. He holds a master’s degree in chemical engineering from Drexel University, a bachelor’s degree in chemical engineering, and also completed the Global Marketing Management Program at The Wharton School at the University of Pennsylvania.

As per MRC, in a move to expand its product offerings, specialty colour and additive concentrate supplier Chroma Color Corp. has acquired Polymer Concentrates Inc. (PCI) of Clinton, Mass. The terms of the deal have not been disclosed. PCI develops and manufactures colour concentrates for the international plastics industry.

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 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.

Headquartered in McHenry, Ill., Chroma makes colour concentrates based on a variety of resins for several markets. The firm employs about 400 and has annual sales of more than US$160 million. In mid-2018, investment firm Arsenal Capital Partners combined Chroma with materials firms Carolina Color, Breen Color Concentrates, and Breen’s Hudson Color unit – which were all owned by Arsenal – to create the current Chromo firm.
MRC