Ukraine increased import of injection moulding PET chips by 15% in January-June

MOSCOW (MRC) -- Imports of bottle grade polyethylene terephthalate (PET) in Ukraine grew by 15% year on year to 84,300 tonnes in January-June from 73,000 tonnes a year earlier. June imports of PET increased to 23,300 tonnes compared with 13,100 tonnes in May.
External supplies of material were at the level of 14,200 tonnes in June last year, according to MRC's Datascope.

The volume of supplies of bottle grade PET from China to Ukraine over the six months of the year fell almost two times: from 21,300 tonnes in January-June 2020 to 48,100 tonnes. Nevertheless, the supply of Chinese PET chips to the Ukrainian market last month increased and amounted to 17,500 tonnes against 5,300 tonnes a month earlier, compared to June last year, imports increased by three times.

The share of imports from China in the total volume amounted to 75% in June against 40% a month earlier and 36% in June 2020.
In the first H1, the share of Chinese material increased from 29% in the first H1 months of last year to 57%. The key suppliers of injection moulding Chinese PET chips to the Ukrainian market were producers Dragon, China Resources Chemicals and Yisheng Petrochemical.

At the same time, import of injection moulding PET chips from Lithuania decreased by 32% in the six months of this year and amounted to 29,300 tonnes. This figure was at 38,800 tonnes in January-June 2020. The volume of foreign deliveries from Lithuania to Ukraine decreased by 52% in June compared to May to 3,200 tonnes against 6,700 tonnes. In June of the previous year, imports of PET chips were 5,400 tonnes.

The volume of Lithuanian imports to the country in the total supply volume increased to 35% in he first six months of this year against 53% in January - June 2020. The main supplier of Lithuanian material is the manufacturer Neo Group (26,600 tonnes). The main buyers of Lithuanian bottled PET were Coca-Cola Beverages Ukraine Limited and Retal.

MRC

MOSCOW (MRC) -- Saudi Arabia, the world's top crude oil exporter, will supply full contractual volumes of August-loading crude to at least five Asian customers, sources with direct knowledge of the matter told Reuters.

However, the producer has turned down two of the buyers' requests for extra barrels, two of the sources said.

Saudi state energy company Saudi Aramco declined to comment on the matter.

Last week, the Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, failed to reach an agreement to increase output from August.

After the breakdown of talks, Saudi Arabia raised the August official selling prices (OSPs) of all crude grades it sells to Asia, setting flagship Arab light crude at USD2.70 a barrel above the Oman/Dubai average for Asia, up 80 cents from July. The price hike was slightly above an expected month-on-month increase of 65 cents a barrel on average from five refinery respondents surveyed by Reuters.

As MRC informed before, Saudi Arabia and the United Arab Emirates have just reached a compromise over OPEC+ policy, an OPEC+ source said, in a move that should unlock a deal to supply more crude to a tight oil market and cool soaring prices.

We remind that Mukesh Ambani, chairman and managing director of Reliance Industries Ltd (RIL), said in June he expects the company's deal with Saudi Aramco to materialise this year. Meanwhile, Yasir Al-Rumayyan, chairman of Saudi Aramco and the Governor of the Public Investment Fund, joined the board of Reliance as an independent director.

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) -- South Africa’s largest refinery SAPREF, a 50-50 joint venture of Shell Refining SA and BP Southern Africa, in the east coast port city of Durban has been temporarily shut down due as the country struggles with mass looting and the worst violence in years, reported Reuters with reference to an industry official's statement.

SAPREF has a nameplate capacity of 180,000 barrels per day and accounts for around 35% of the refining capacity in Africa’s most industrialised economy, a net importer of petroleum products.

As MRC informed previously, in April 2021, SAPREF let a contract to KBR Inc. to provide technology for an upgrade of the 33,000-b/d FCC unit at its 180,000-b/d refinery in Durban, South Africa. As part of the contract, KBR will license its Catalyst Regeneration technology as well as deliver basic engineering, detailed engineering, and proprietary equipment for the FCC regenerator project, which will enable SAPREF to improve the unit’s reliability and integrity by optimizing catalyst and air distribution.

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.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.

BP is one of the world's largest oil and gas companies, serving millions of customers every day in around 80 countries, and employing around 85,000 people. BP’s business segments are Upstream (oil and gas exploration & production), and Downstream (refining & marketing). Through these activities, BP provides fuel for transportation; energy for heat and light; services for motorists; and petrochemicals products for plastics, textiles and food packaging. It has strong positions in many of the world's hydrocarbon basins and strong market positions in key economies.
MRC

MOSCOW (MRC) -- OPEC stuck to its forecast for a strong recovery in world oil demand in the rest of 2021 and predicted oil use would rise in 2022 at similar to pre-pandemic rates, led by growth in the United States, China and India, reported Reuters.

The Organization of the Petroleum Exporting Countries said in its monthly report on Thursday that demand next year would rise by 3.4% to 99.86 million barrels per day (bpd), and would average more than 100 million bpd in the second half of 2022.

"Solid expectations exist for global economic growth in 2022," OPEC said. "These include improved containment of COVID-19, particularly in emerging and developing countries, which are forecast to spur oil demand to reach pre-pandemic levels in 2022."

The report reflects OPEC's confidence that demand will recover robustly from the pandemic, allowing the group and its allies to further ease record supply curbs made in 2020. Some analysts have said world oil demand may have peaked in 2019.

OPEC's report said 2019 demand averaged 99.98 million bpd. OPEC also maintained its prediction that demand would grow by 5.95 million bpd in 2021.

OPEC forecast oil demand in China and India would exceed pre-pandemic levels next year. It said the United States would make the biggest contribution to 2022 demand growth, although US oil use would stay just below 2019 levels.

World economic growth was expected to slow to 4.1% next year from 5.5% in 2021, still supported by government stimulus and with the outlook "depending primarily on COVID-19-related developments", OPEC said.

Oil was trading below USD74 a barrel after the OPEC report was released. The price has climbed more than 40% this year with the help of supply cuts by OPEC and its allies, a group known as OPEC+.

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) -- A US bankruptcy judge raised concerns that Limetree Bay refinery on the Virgin Islands may not have enough money to get through the early days of its Chapter 11 restructuring, reported Reuters.

"I'm very worried it's not enough money," Chief United States Bankruptcy Judge David R. Jones said during a hearing on Tuesday.

Jones, who is based in Houston and a veteran of a number of refinery restructuring in the southern district of Texas, added that his liquidity concerns are among the worst he has ever had.

The refinery is due to receive up to USD25 million in interim financing as it tries to restructure nearly USD2 billion in debt. Jones approved the financing.

As MRC wrote previously, Limetree filed for Chapter 11 protection on Monday after spending more than USD4 billion trying to restart the refinery on St. Croix. But lawyers for Limetree say the refinery needs at least USD150 million in funding to maintain operational capabilities, complete ongoing repairs and retrofitting, fund necessary repairs identified by the US Environmental Protection Agency and establish a reserve for potential expenses.

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