Gasoline consumption nears pre-pandemic level in US

MOSCOW (MRC) -- U.S. traffic volumes have almost returned to pre-pandemic levels, helping normalise gasoline consumption as more businesses re-open, domestic leisure travel resumes and workers return to offices, said Hydrocarbonprocessing.

The volume of traffic on all roads was down by less than 4% in March compared with the same month two years ago, according to the Federal Highway Administration (“Traffic volume trends” FHWA, March 2021). Traffic levels had been down 41% in April 2020 at the height of the first wave of the pandemic and were still down 11% as recently as December 2020 during the second wave.

Car use likely increased further in April and May as social-distancing restrictions were relaxed and more service businesses and offices re-opened. More driving means more fuel consumption. The volume of gasoline supplied to the domestic market, a proxy for consumption, was down by just 4% at 8.9 million barrels per day in the four weeks to May 14 compared with the pre-pandemic five-year average of 9.3 million b/d.

The remaining driving and fuel deficits are likely to be erased over the third quarter as more employees return to central offices and domestic tourism recovers. The rapid normalisation of gasoline consumption has encouraged a strong resumption of motor fuel production, which is nearing pre-pandemic levels.

Refinery gasoline production is down by just 3% compared with the five years from 2015 to 2019, according to the Energy Information Administration (“Weekly petroleum status report”, EIA, May 19). The enormous surplus that accumulated during the pandemic's first wave has been absorbed. Inventories held at refineries, tank farms and in pipelines are back in line with the pre-COVID five-year average.

Jet fuel consumption is still severely affected by quarantine restrictions. But in the gasoline market the impact of the pandemic appears largely over, provided there is no resurgence of infections.

As per MRC, Countries around the world have reported steep falls in fuel demand as lockdowns to contain the spread of the novel coronavirus limit the movement of more than 4 billion people. U.S. fuel demand has dropped 28% in the last four weeks, the Energy Information Administration said on April 29. Overall finished motor gasoline demand is still down 44% over the past four weeks from the year-ago period, but a drawdown in stocks in the previous week suggests the consumption declines may be leveling off. Jet fuel demand was down 62%.

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) - Kazanorgsintez (KOS, part of the TAIF group) plans to reconstruct reactor B of the low-density polyethylene (HDPE) production and processing plant, Biznes Gazeta reports.

A public discussion will be held in Kazan on the assessment of the impact of this production on the environment. The meeting will take place on June 1 at the Kazan Petrochemical College at 23 Gudovantseva Street.

Earlier it was reported that Kazanorgsintez and NextChem together with MET Development, subsidiaries of Maire Tecnimont S.p.A. (Italy), signed a memorandum of understanding on the joint development of a project for a new plant for the production of biodegradable polymers in the Republic of Tatarstan. The project will use the know-how of NextChem and the capabilities of MET Developmen. In accordance with the agreement, Kazanorgsintez and Maire Tecnimont Group will jointly assess and analyze the possibility of building a plant for the production of biopolymers in Tatarstan. Maire Tecnimont Group will provide technological solutions and the best know-how for project design and implementation, building on its portfolio of projects.

In addition, according to the ICIS-MRC Price Report, Kazanorgsintez (KOS, part of the TAIF Group) has stopped part of its low-pressure polyethylene (LDPE) production facilities for scheduled preventive maintenance. On 16 April, KOS completely stopped LDPE production at the third stage for annual scheduled preventive maintenance. The annual capacity of LDPE production at the third stage is 140,000/tonne.

PJSC Kazanorgsintez is one of the largest enterprises in the Russian Federation (PJSC TAIF Group of Companies). It produces 40% of all Russian polyethylene and is its largest exporter. Currently, PE, polycarbonate (PC), polyethylene pipes, phenol, acetone, bisphenol A are produced. KOS is the only Russian PC manufacturer. There are 170 types of products in total. The annual production volume is 1.6 million tons. The enterprise is the largest producer of low-pressure polyethylene (HDPE) pipes in Russia. The annual production capacity of HDPE is 540,000 tonnes, and LDPE - 225,000 tonnes.
MRC

MOSCOW (MRC) -- OxyChem, the chemical division of Occidental Petroleum, left force majeure (FM) on polyvinyl chloride (PVC) supplies from its plants in North America in force as of 17 May, 2021, reported S&P Global with reference to the company's letter.

OxyChem, a major manufacturer of chlor-alkali and vinyl products, including chlorine, caustic soda, hydrochloric acid, ethylene dichloride (EDC), vinyl chloride monomer (VCM), and PVC at plants in Texas, Louisiana and Alabama, Tennessee, New Jersey and New York.

The total capacity of OxyChem's plants and subsidiaries for the production of chlorine and caustic soda is about 3 million mt/year, and its PVC production is almost 2 million mt/year.

The FM was declared on 15 February, 2021, due to the deep freeze that hit the region. The severe weather conditions affected then all Texas and western Louisiana facilities.

As MRC informed before, OxyChem had a seven-day PVC turnaround slated for April, 2020, at its plant in Pasadena, Texas, USA. This plant's production capacity is 1 million mt/year.

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.

Occidental Petroleum Corporation (OxyChem) is a California-based oil and gas exploration and production company with operations in the United States, the Middle East, North Africa, and South America. Oxychem is Oxy's Texas-based subsidiary which manufacture polyvinyl chloride (PVC) resins, chlorine and caustic soda used in plastics, pharmaceuticals and water treatment chemicals.
MRC

MOSCOW (MRC) -- German consumer goods group Henkel raised its full-year outlook after its adhesives business reported a strong first-quarter amid a faster-than-expected rebound in the automotive and electronics industries, said Reuters.

Henkel said it now expects 2021 sales to rise an organic 4-6%, up from a previous 2-5% forecast, while earnings per preferred share should rise in the high single-digit to mid-teens percentage range, from a previous 5-15% range.

The upper end of the earnings guidance is not limited to 15%, finance chief Marco Swoboda told analysts, adding that Henkel was seeing continued strong progress in adhesives. Henkel, which makes Schwarzkopf hair care products, said it expects the hair salon business will recover significantly as coronavirus lockdowns ease, while demand for cleaning products, which was boosted by the pandemic, should return to normal.

Fewer than 10% of hair salons are still closed, while Henkel has seen very good development in the U.S. market for professional haircare products since most salons have reopened there, Chief Executive Carsten Knobel said.

First-quarter sales rose an organic 7.7% to 4.97 billion euros ($5.97 billion), ahead of guidance the company gave on March 31, driven by a rise of 13% for its adhesives unit and 4.1% growth for the laundry and home care business. Henkel said sales of its glues to the automotive and electronics sectors both grew at double-digit rates, with sales strong in both emerging and mature markets.

Beiersdorf reported that its Tesa adhesives unit saw first-quarter sales jump 24%. Henkel sees possibilities to pass on higher raw material costs via price increases, especially for adhesives in the electronics industry, Knobel said.

Henkel said the detergents business, which competes with Procter & Gamble Co, performed well, with its Persil, Pril, Bref and Somat brands posting double-digit growth, helped by pandemic demand for household cleaning.

As MRC informed earlier, Henkel has provided a business update for the third quarter and says that, based on preliminary figures, its adhesive technologies business unit achieved positive organic sales growth of 1.3% in the quarter. All business areas in adhesive technologies showed a recovery in demand compared with the second quarter, the company says. Henkel notes that in the first nine months of 2020, adhesive technologies recorded a 6.8% decline in organic sales.

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) -- SIBUR took the sixth place in the rating of European companies responsible for pollution with disposable plastic, said Novayagazeta.

Australian charity Minderoo Foundation published a joint report with partner organizations, according to which more than half (55%) of disposable plastic in the world are in 20 companies. In the rating of European companies, the Russian petrochemical SIBUR was in sixth place.

In the overall rating of Plastic Waste Makers, the first place went to the American oil company ExxonMobil. It accounts for 5.9 mln tonnes of global waste. In second place is the Chinese oil and gas corporation Sinopec (5.3 mln tonnes), in third place is the Dow chemical company (5.5 mln tonnes), based in the United States.

Russian SIBUR took 32nd place in the overall rating of 100 companies (0.8 mln tonnes of plastic waste), Nizhnekamskneftekhim - 80 place (0.3 mln tonnes), Kazanorgsintez, 91 place (0.2 mln tonnes).

Among European manufacturers of disposable plastics, Sibur is in sixth place, Nizhnekamskneftekhim is in 13th place, Kazanorgsintez is in 22nd place.

The authors of the study concluded that the world's largest banks contribute to the planet's plastic pollution, as they finance companies. Experts estimate that the world's twenty largest banks, including Barclays, HSBC and Bank of America, have committed nearly USD30 billion since 2011 to plastic production.

The report also notes that in the next five years, plastic production in the world could grow by more than 30%, and for some companies - by 400%. The researchers emphasize that most of the single-use plastic waste will cause pollution in developing countries with poor waste management systems.

The authors of the study concluded that the world's largest banks contribute to the planet's plastic pollution, as they finance companies. Experts estimate that the world's twenty largest banks, including Barclays, HSBC and Bank of America, have committed nearly USD30 billion since 2011 to plastic production.

The report also notes that in the next five years, plastic production in the world could grow by more than 30 percent, and for some companies - by 400 percent. The researchers emphasize that most of the single-use plastic waste will cause pollution in developing countries with poor waste management systems.
MRC