Arkema opened UV photocuring tech centre in the UK

Arkema opened UV photocuring tech centre in the UK

MOSCOW (MRC) -- Arkema opened a specialised coatings centre dedicated to UV technology in Wetherby, UK, said the company.

The centre has opened in the wake of Arkema’s 2019 acquisition of photoinitiator supplier and developer Lambson, which has been integrated into the photocurable specialties business of Sartomer – the French major’s curing technologies line.

This cutting-edge laboratory will complement the existing network of research and application centers dedicated to Arkema’s Coating Solutions so that to Arkema’s performance additives. These additives enhance the Group’s expertise in many areas and play an essential role in the design and development of innovative products, and new applications in the fields of Coatings, Adhesives, and Advanced Materials.

The centre will be used to develop solvent-free photocuring technologies bespoke to customers and partners, particularly for use in the electronics, 3D printing, inks, adhesives and high-performance coatings markets.

Photoinitiators are molecules used in the curing process to produce protective coatings, adhesives and printing inks for applications in the automotive, electronic, and food packaging industries.

As per MRC, Trinseo completed the EUR1.14 bln acquisition of Arkema's PMMA business. The EUR1.14 bln deal was announced in December and was expected to be completed by mid-2021.

The main sector consuming approximately 75% of MMA is the production of polymethyl methacrylate acrylic plastics (PMMA). Methyl methacrylate is also used to produce methyl methacrylate-butadiene-styrene copolymer (MBS), used as a modifier for polyvinyl chloride (PVC).

According to MRC's ScanPlast, the total volume of unblended PVC production in Russia amounted to 259,400 tonnes in the first quarter of this year, which is 3% less than the same indicator a year earlier. All manufacturers showed a decrease in output volumes.

Arkema is one of the world's leading chemical manufacturers headquartered in Colombes (near Paris, France). Founded in 2004 as a result of the restructuring of the French oil company Total, Arkema, with a turnover of EUR6.5 billion, has operations in 40 countries, 10 research centers around the world, and 85 plants in Europe, North America and Asia.
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COVID-19 - News digest as of 03.06.2021

1. Crude oil futures increase in Asia on large API crude draw, favourable demand outlooks

MOSCOW (MRC) -- Crude oil futures were higher during midmorning trade in Asia June 3 as the American Petroleum Institute reported a large draw in crude inventories, reinforcing the narrative that fundamentals in the US are improving, while Europe reopening provided further support to the market, reported S&P Global. At 11:07 am Singapore time (0307 GMT), the ICE August Brent crude contract was up 52 cents/b (0.76%) from the previous settle at USD71.87/b while the NYMEX July light sweet crude contract was up 50 cents/b (0.73%) at USD69.33/b. Data from the API showed a massive 5.36 million barrels draw in US crude inventories in the week ended May 28. This fueled the crude price rally in morning Asia trading, even though the API data also showed that US gasoline and distillate inventories rose 2.51 million barrels and 1.59 million barrels, respectively, in the same period.

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Crude oil futures increase in Asia on large API crude draw, favourable demand outlooks

Crude oil futures increase in Asia on large API crude draw, favourable demand outlooks

MOSCOW (MRC) -- Crude oil futures were higher during midmorning trade in Asia June 3 as the American Petroleum Institute reported a large draw in crude inventories, reinforcing the narrative that fundamentals in the US are improving, while Europe reopening provided further support to the market, reported S&P Global.

At 11:07 am Singapore time (0307 GMT), the ICE August Brent crude contract was up 52 cents/b (0.76%) from the previous settle at USD71.87/b while the NYMEX July light sweet crude contract was up 50 cents/b (0.73%) at USD69.33/b.

Data from the API showed a massive 5.36 million barrels draw in US crude inventories in the week ended May 28. This fueled the crude price rally in morning Asia trading, even though the API data also showed that US gasoline and distillate inventories rose 2.51 million barrels and 1.59 million barrels, respectively, in the same period.

The rise in downstream product inventories did not faze the market, which expected demand in the US to remain robust as the country's economy continues to fire on all cylinders. Furthermore, with the Memorial Day holiday kick-starting the summer driving season, gasoline demand is expected to benefit from pent-up demand for road travel.

Even prior to the Memorial Day holiday, US gasoline demand was already on an uptrend, with ANZ analysts saying in a June 3 note that data from Descartes Labs, a geospatial intelligence company, showed the country's gasoline demand had hit its highest level in the week ended May 29 since the pandemic began.

Meanwhile, Europe's reopening also augured improved oil demand. Major European economies, including the UK, Germany, France and Italy, are expected to see lockdown restrictions eased further through June. However, ANZ analysts have warned that a recovery remains patchy as the resurgence of the pandemic in Asia has led to protracted mobility restrictions, which are sapping oil demand.

As MRC wrote earlier, Indian refiners, anticipating a lifting of US sanctions, plan to make space for the resumption of Iranian imports by reducing spot crude oil purchases in the second half of the year. The world"s third-largest oil consumer and importer halted imports from Tehran in 2019 after former US President Donald Trump withdrew from a 2015 accord and re-imposed sanctions on the OPEC producer over its disputed nuclear programme.

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.
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Lotte Chemical declares FM on MEG shipments from its plant in Louisiana after storm

Lotte Chemical declares FM on MEG shipments from its plant in Louisiana after storm

MOSCOW (MRC) -- Lotte Chemical USA, a joint venture (40:60) of the Malaysian company Lotte Chemical Titan and its parent company Lotte Chemical Corporation, has declared force majeure (FM) on monoethylene glycol (MEG) and other products produced at its Louisiana complex after an electrical equipment failure, according to a customer letter seen by S&P Global Platts on May 27.

The letter said the company prepared for heavy storms that hit Lake Charles and other areas along the Texas and Louisiana coasts the week of May 17, but on May 21, "critical electrical equipment" failed and prompted an unexpected plant shutdown. Thus, the FM was declared on May 22.

The letter said further that initial assessments showed that torrential rain caused the failure, which severed electricity supply to critical process equipment.

Lotte operates a 700,000 mt/year MEG plant in Lake Charles that started up in January 2019. The force majeure declaration affects MEG, diethylene glycol (DEG) and triethylene glycol (TEG) production at the Lake Charles site, the letter said.

Market sources said Lotte was expected to restart its operations by May 31. The swift force majeure declaration indicated the company had limited MEG/DEG/TEG stocks when the shutdown occurred.

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

According to MRC's ScanPlast report, the estimated PET consumption in Russia reached 64,750 tonnes in March 2021, which corresponds to the previous year's figure (64,520 tonnes). Russia's estimated PET consumption decreased in January-March 2021 by 5% year on year to 182,300 tonnes.
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Ufaorgsintez shuts some of its PE production capacities for maintenance

MOSCOW (MRC) -- Ufaorgsintez (UOS, Bashneft’s petrochemical asset) has shut down operations at some of its low density polyethylene (LDPE) production capacities for a scheduled turnaround, according to ICIS-MRC Price report.

The plant's customers said UOS shut its second LDPE line (158 grade and 153 grade polyethylene - PE) for a scheduled maintenance on 1 June. The outage of the second PE line will be short and will take only a week. The first LDPE line (108 grae PE) will be shut for scheduled maintenance works in September.

Ufaorgsintez's overall LDPE and polypropylene (PP) production capacities are 90,000 and 120,000 tonnes per year, respectively.

It is also worth noting that Angarsk Polymers Plant and Tomskneftekhim will shut down their LDPE production capacities for turnarounds in June.

PJSC Ufaorgsintez produces phenol, acetone, synthetic ethylene-propylene rubber, high and low pressure polyethylene, polypropylene, more than 30 types of petrochemical products and over 25 consumer products.
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