NKNK revenue in the first quarter increased by 44%

NKNK revenue in the first quarter increased by 44%

MOSCOW (MRC) - The revenue of Nizhnekamskneftekhim (NKNKH) in January-March set a new record of 54.9 billion rubles, according to BUSINESS Online.

The impressive results were achieved mainly due to the favorable situation on the world markets, and NKNK is forecast to have strong performance in the coming quarters already due to growing production amid recovery in demand for petrochemical products.

After the "covid" 2020, a number of economic sectors headed "north", recovering from a forced pause. Of the leading Tatarstan enterprises, it is worth highlighting, first of all, petrochemists, whose affairs after last year's fall are on the rise again. The revenue of the largest Russian manufacturer of synthetic rubbers Nizhnekamskneftekhim in the first quarter of 2020 increased by 44% to a record 54.9 billion rubles, follows from the statements of the joint-stock company.

Last year, 39% of the plant's proceeds came from synthetic rubbers, 33% - from plastics, 26% - from other petrochemical products and about 2% - from other products.

An extremely favorable situation for NKNK in the first quarter developed in the plastics market. Thus, the average value of the PPI-ST index, which reflects prices for large-scale plastics, increased by 1.5 times: from 87 thousand rubles per ton in January-March 2020 to 130 thousand rubles per ton in January-March 2021. Among the main reasons are the recovery of the world economy, the rise in world prices for plastics.

As for the situation on the rubber market, the fight against the pandemic and widespread lockdowns affected it in two ways. On the one hand, the shutdown of a number of car factories and the decline in business activity reduced the demand for tires of all stripes. On the other hand, there was an increased demand for rubber gloves and even a shortage of labor for the largest producer of natural rubber - Thailand.

In the first quarter of this year, the product line of NKNKh was supplemented with new thermoplastic elastomers, which are distinguished by their high strength and the possibility of repeated processing without harm to the environment. These materials are used for road paving, which improves the quality and durability of the asphalt. Also thermoplastic elastomer is used in the production of roofing materials.

In January, a new production of styrene-divinyl rubber (DSSK) was launched. The complex was built in 2019-2020.

NKNK's revenue growth was influenced not only by the recovery in demand for the company's products: synthetic rubbers, polymers, and other petrochemical products, but also by a significant rise in prices, especially in export markets. For example, prices for standard thermoplastics have almost doubled since the beginning of the year. A year ago, in the first quarter of 2020, there was a decline in the industry, while now it is on the rise. At the same time, domestic prices for raw materials and regulated tariffs for energy resources rose less noticeably.

The largest petrochemical holdings in Russia - SIBUR and TAIF - in April announced plans to combine their assets. Within the framework of the merger, a company will be created on the basis of SIBUR Holding, in which the current shareholders of TAIF PSC will receive a 15% stake in exchange for the transfer of a controlling stake in a group consisting of petrochemical and energy enterprises. The remaining stake in TAIF can be subsequently purchased by the merged company. The merged company of SIBUR and TAIF will include the parent company of the Tatarstan group, as well as two of its chemical plants and an energy company, including NKH and KOS.

According to the ICIS-MRC Price Report, Russian factories have reduced the cost of PS this month under pressure from external markets and the declining cost of raw materials. Nizhnekamskneftekhim has reduced the cost of the polymer by more than the rest of the plants.

PJSC "Nizhnekamskneftekhim" (NKNKH) is one of the largest Russian producers of petrochemical products. The production complex of the company includes ten factories of the main production and ten departments (railway transport, main ethylene pipelines, etc.). NKNKh produces over 120 types of chemical products, including synthetic rubber, polyethylene, polypropylene, polystyrene, surfactants. Nizhnekamskneftekhim is part of TAIF Group.
MRC

Reliance to invest over USD10 bln in clean energy over 3 years in pursuit to become net carbon zero company by 2035

Reliance to invest over USD10 bln in clean energy over 3 years in pursuit to become net carbon zero company by 2035

MOSCOW (MRC) -- India's Reliance Industries (RIL), operator of the world's biggest refining complex at Jamnagar in western India, will invest USD10.1 billion in clean energy over three years in a pursuit to become a net carbon zero company by 2035, reported Reuters.

Reliance's plan mirrors strategies of global oil majors such as Royal Dutch Shell Plc and BP Plc that have set a goal to become net zero carbon by 2050 amid pressure from investors and climate activists.

"The world is entering a new energy era, which is going to be highly disruptive. The age of fossil fuels, which powered economic growth globally for nearly three centuries, cannot continue much longer," Chairman Mukesh Ambani, Asia's richest man, said at a shareholder meeting on Thursday.

The oil-to-telecoms conglomerate will invest 600 billion rupees to build four 'giga factories' at Jamnagar for production of solar cells and module, energy storage batteries, fuel cells and green hydrogen, Ambani said. It will also invest 150 billion rupees in value chain and other partnerships relating to its new renewable energy business, he said, adding a transformation of legacy business into sustainable and net zero carbon business will provide growing returns over several decades.

Reliance will also build solar capacities of at least 100 gigawatts (GW) by 2030, accounting for over a fifth of India's target of installing 450 GW by the end of this decade.

Reliance's entry into the renewable energy business in India will put it in competition with companies such as Adani Green Energy Ltd and Goldman Sachs-backed ReNew Power.

As MRC informed before, amid a surging second wave of COVID-19 in the country, RIL has increased output of medical oxygen to 1,000 mt/day, making it India's largest producer of medical-grade liquid oxygen from a single location. Reliance ramped up production from near-zero to 1,000 tonnes per day and now produces over 11% of the country's oxygen demand. It has rallied its resources to meet the daily need of over 1 lakh people every day.

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 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.

Reliance Industries is one of the world's largest producers of polymers. The company produces polypropylene, polyethylene and polyvinyl chloride and other petrochemical products.
MRC

INEOS signs worldwide agreement to use Antea software for sites and businesses around the world to streamline compliance

INEOS signs worldwide agreement to use Antea software for sites and businesses around the world to streamline compliance

MOSCOW (MRC) -- Antea, a global leader for 32 years in risk-based asset integrity management (AIM) software with 3D digital twin integration, has officially entered into a worldwide frame agreement with leading chemical company, INEOS, according to Hydrocarbonprocessing.

INEOS sought a worldwide multi-business agreement that could provide RBI and IDMS software for sites and businesses around the world to streamline compliance. They determined the Antea Platform, with its certified API 581-compliant RBI and comprehensive IDMS module, to be a robust, reliable solution that adheres to their requirements.

The contract takes effect on April 1, 2021 and will be valid for at least 3 years. INEOS ultimately placed their faith in Antea for the fair pricing, globally trusted presence, extensive and flexible software functionalities, and professionalism of the team.

As MRC informed before, in January 2019, INEOS announced Antwerp as the location for its new petrochemical investment. The EUR3 billion investment will be the biggest ever made by INEOS and is first cracker to be built in Europe in 20 years. The investment is a game changer for the chemical sectors and will bring huge benefits to the Belgium and wider European economies.

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 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.

INEOS Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.
MRC

COVID-19 - News digest as of 24.06.2021

1. Manufacturing industry in Canada continues to lose millions because of border issues due Covid-19

MOSCOW (MRC) -- The survey was conducted by the Canadian Tooling & Machining Association (CTMA), in partnership with the Canadian Association of Moldmakers, (CAMM), Automate Canada, and the Niagara Industrial Association (NIA), said Canplastics. It was the second conducted by the groups to measure the effects of border closures due to the COVID-19 pandemic within the manufacturing industry. This updated study, which received 91 responses, was to compare the results to the previous survey about common border crossing issues that have been experienced by those in the industry, who have identified that many of their businesses rely on travel between the U.S. and Canada. The first survey was taken in December 2020.





MRC

Crude oil futures steady in Asia as EIA reports stock draw in line with API

Crude oil futures steady in Asia as EIA reports stock draw in line with API

MOSCOW (MRC) -- Crude oil futures were steady during the mid-morning trade in Asia June 24 on unchanged fundamentals, with the US Energy Information Administration's report of a draw in US crude inventories coming in line with earlier data released by the American Petroleum Institute, reported S&P Global.

At 10:14 am Singapore time (0214 GMT), the ICE August Brent futures contract was down 4 cents/b (0.05%) from the previous settle at USD75.15/b while the NYMEX August light sweet crude contract was down 3 cents/b (0.04%) at USD73.05/b.

EIA data released late June 23 showed US crude inventories falling by 7.61 million barrels to 459.06 million barrels in the week ended June 18. The draw, however, did not spur a rally during Asian trading, as it offered little new information, merely corroborating the American Petroleum Institute's earlier report of a 7.2 million-barrel draw.

The data also showed distillate stockpiles climbing 1.75 million barrels to 137.95 million barrels in the same period, with the build more bearish than the build of 992,000 barrels estimated by API data.

The EIA data, however, differed from the API in its estimate of the change in the US gasoline inventories. The EIA data showed an unexpected fall in US gasoline inventories of 2.93 million barrels to 240.05 million barrels in the week ended June 18. It was hence more bullish in this aspect than the API data, which had shown a 959,000-barrel rise in gasoline inventories in the same period.

The EIA data release feeds right into the demand recovery narrative that underpinned the recent rally in oil prices. Total products supplied, EIA's proxy for demand, ticked up nearly 1% to 20.75 million b/d in the week to June 18 and the closely watched gasoline products supplied metric rose commensurately to 9.44 million b/d, testing highs last seen in February 2020 prior to the first wave of pandemic lockdowns.

The uptick in gasoline demand comes as more Americans take to the road amid easing mobility restrictions and rising vaccination rates. Apple Mobility data showed that US driving activity jumped six percentage points to a fresh record of around 164% of the index's January 2020 baseline in the week ended June 18.

Analysts said that in addition to strong demand, leaner supply in the US was also offering support to the market.

Moving away from the US market, oil demand in Europe and key economies in Asia is also expected to strengthen, as these regions emerge from the shadow of pandemic lockdowns.

We remind that as MRC informed 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 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.
MRC