Westlake lifts force majeure on PVC and VCM suppliers from its plants in North America

MOSCOW (MRC) -- Westlake Chemical, US petrochemical major, has lifted its force majeure (FM) on US polyvinyl chloride (PVC) and upstream vinyl chloride monomer (VCM), the company announced in a customer letter dated May 17 and seen by S&P Global.

The letter said the company was "formally lifting the systemwide force majeure condition for PVC and VCM manufactured and shipped from its North American operations that was originally declared on Feb. 19" as a result of mid-February's deep freeze that "resulted in a shutdown/curtailment of our plant operations."

The winter storm brought sustained subfreezing temperatures to the US Gulf Coast and much of the US, forcing widespread petrochemical shutdowns that included at least 57% of US PVC capacity.

As MRC informed earlier, Westlake Chemical also declared FM on Aug. 31, 2020, for all its North American PVC and VCM, which left it in force in mid-October, 2020. Westlake's shutdown of its Lake Charles complex has idled 38% of its US VCM production, resulting in two VCM plants with a combined capacity of 952,318 mt/year going offline. The complex also has three upstream chlor-alkali plants with a combined capacity of 1.27 million mt/year of chlorine and 1.36 million mt/year of caustic soda - 46% of the company's overall North American chlor-alkali capacity.

According to MRC's ScanPlast report, Russia's overall PVC production reached 346,100 tonnes in the first four months of 2021, down 1% year on year. All producers decreased production volumes over the reported period, with the exception of the Bashkir Soda Company.

Westlake Chemical Corporation is an international manufacturer and supplier of petrochemicals, polymers and building products with headquarters in Houston, Texas. The company's range of products includes: ethylene, polyethylene, styrene, propylene, chlor-alkali and derivative products, PVC suspension and specialty resins, PVC Compounds, and PVC building products including siding, pipe, fittings and specialty components, windows, fence, deck and film.
MRC

Indian Oil reduces crude processing to 84% as COVID-19 pandemic hits fuel demand

MOSCOW (MRC) -- Indian Oil Corp, India's top refiner, has cut crude processing to average at 84% of overall capacity from 96% in April as a devastating second wave of COVID-19 dented fuel demand, reported Reuters with reference to the company's chairman statement.

Domestic sales of gasoil and gasoline by Indian state refiners plunged by a fifth in the first half of May from a month earlier, preliminary data showed on Monday, as lockdowns to curb COVID-19 cases hit industrial activities and consumption.

"Demand destruction is there, which has also reflected in refinery runs... When it (fuel demand) will return to normalcy is a very difficult question to answer," Chairman SM Vaidya said, pinning recovery hopes on the country's vaccination drive against the pandemic.

The company, along with subsidiary Chennai Petroleum, controls about a third of India's 5 million-barrels-per-day (bpd) refining capacity.

In May last year, the state-owned refiner was operating its plants at an average 67%, Vaidya said.

Still, a surge in crude prices boosted inventory gains and gross refined margins (GRMs) at IOC, helping it report a net profit of 87.81 billion Indian rupees (USD1.20 billion) for the quarter ended March 31, against a loss of 51.85 billion rupees a year ago. Analysts were expecting a profit of 55.06 billion rupees, according to Refinitiv IBES data.

As MRC informed before, Technip Energies has been recently awarded a significant Engineering, Procurement, Construction and Commissioning (EPCC) contract by Indian Oil Corporation Limited (IOCL) for its BR9 Expansion Project in Barauni, Bihar, in the Eastern part of India. This EPCC contract covers the installation of a new Once-through Hydrocracker Unit (OHCU) of 1 million metric tonnes per annum (MMTPA) capacity, a Fuel Gas Treatment Unit (FGTU) and the associated facilities.

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 imports to Belarus down by 0.8% in Q1

MOSCOW (MRC) - Imports of polypropylene (PP) into Belarus decreased to about 26,900 tonnes in 2020, down 0.8% year on year, compared to the same period of 2020. The greatest increase in imports accounted for homopolymer PP, according to MRC DataScope.

March PP imports into Belarus rose to 10,200 tonnes from 9,100 tonnes a month earlier. Local companies increased their purchases of injection moulding propylene copolymers in Russia and in Middle East. Total PP imports into the country reached 26,900 tonnes in January - March, compared with 27,100 tonnes year on year. The demand only for homopolymer PP increased, but demand for propylene copolymers decreased.

The structure of PP imports by grades looked the following way over the stated period.

March imports of homopolymer PP increased to 6,900 tonnes from 6,700 tonnes a month earlier, purchases of injection moulding homopolymer PP in Russia increased. Overall imports of homopolymer PP reached 19,500 tonnes in the first three months of the year, up by 0.4% year on year.

March imports of propylene copolymers to Belarus were about 3,300 tonnes versus 2,400 tonnes a month earlier, local companies increased significantly their procurement of injection moulding block-copolymers of propylene (PP block copolymer) from Russian and Middle Eastern producers. Thus, overall imports of propylene copolymers reached 7,300 tonnes in January-March 2021, down by 4% year on year.


MRC

PVC imports to Belarus up by 39% in Q1 2021

MOSCOW (MRC) -- Overall imports of unmixed polyvinyl chloride (PVC) into Belarus totalled 14,300 tonnes in the first three months of 2021, up by 39% year on year, according to MRC's DataScope report.

According to the statistics committee of the Republic of Belarus, local converters raised their purchasing of PVC in March 2021 on the back of a seasonal growth in demand for finished products, total imports were 5,300 tonnes, whereas this figure was 4,900 tonnes a month earlier. Russian resin accounted for the main increase in procurement.

Thus, imports of unmixed PVC reached 14,300 tonnes in January-March 2021, compared to 10,300 tonnes a year earlier.
Russian producers with the share of about 92% of the Belarusian market were the key suppliers of resin to Belarus over the stated period. Germain producers were the second largest suppliers.

MRC

HPCL to fully start expanded Mumbai refinery by late June-July

MOSCOW (MRC) -- India's Hindustan Petroleum Corp.'s Mumbai refinery will start full scale operation at a higher capacity of 190,000 barrels per day (bpd) by end-June or in July, reported Reuters with reference to the company's chairman M. K. Surana's statement.

HPCL had fully shut the 150,000 bpd Mumbai refinery in western Maharashtra from April 1 for maintenance and capacity expansion, Surana said at a press conference to announce March quarter earnings.

"One crude unit of 3.5 million tonnes (70,000 bpd) is under commissioning and we are revamping the second unit to add capacity," he said. The state-run refiner aims to add 40,000 bpd capacity to the second crude unit.

He also said the company is operating its 166,000 bpd Vizag refinery in southern India at full capacity. Meanwhile, HPCL is in process of raising the capacity of the Vizag refinery to 300,000 bpd. Surana said the expansion will be completed in this fiscal year to March 2022 while the residue upgradation facility at the Vizag plant is also likely to be completed in 2022.

In addition, HPCL is building a 180,000 bpd refinery and petrochemical plant in desert state of Rajasthan.

As MRC informed previously, India's HPCL-Mittal Energy Limited, or HMEL, will start a new 500,000 mt/year polypropylene (PP) plant in Bhatinda in 2021. The company has an existing 440,000 mt/year PP unit at the same site.

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