The Netkanika received a loan to expand production of nonwovens

MOSCOW (MRC) - The Netkanika company (Moscow) received a preferential loan from the city in the amount of 300 million rubles, which is planned to be used to expand the production of nonwovens used for the production of personal protective equipment, the company said.

The total investment will amount to 429 million rubles, where 129 million rubles are the company's own funds, said Vladimir Yefimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.

The company will use the funds provided to expand the existing and create a new production of nonwovens with high barrier properties. The decision to issue a loan was made by the Moscow Fund for the Support of Industry and Entrepreneurship.

"We are grateful to the Moscow leadership for supporting the project aimed at increasing the output and expanding the range of nonwovens for the needs of children's and adult hygiene and medicine. The design has been completed, some of the main equipment has been delivered to the plant site, the work on the project is on schedule. Moscow enterprises already this year will receive additional volumes of nonwovens within the framework of the project, "added Rifkat Galimzyanov, General Director of Netkanika.

"It is expected that as a result of the project, the company's revenue will grow by more than 20% compared to 2020, and tax deductions to the capital budget during the loan period will exceed 240 million rubles. In addition, the company will create about 25 new jobs." , - said the head of the Department of Investment and Industrial Policy Alexander Prokhorov.

Earlier it was reported that SIBUR and Netkanika, a manufacturer of nonwovens based on polypropylene, signed a strategic cooperation agreement aimed at developing exports of polypropylene nonwovens produced by Netkanika from SIBUR's polypropylene.

According to the ScanPlast survey of MRC, PP supplies to the Russian market in January-May this year amounted to 607,890 tonnes, which is 33% more than the same indicator a year earlier. The supply of propylene homopolymer (PP-homo) and propylene block copolymer (PP-block) also increased. The supply of stat-copolymer propylene (PP-random) has declined.

"Netkanika" is one of the largest producers of nonwovens in the country, with an annual output of over 1 billion m2. The company produces spunbond, spunmelt and meltblown used for the production of children's and adult hygiene products, disposable personal protective equipment such as masks and protective clothing for medical personnel, mattresses and spring blocks, heat, moisture and windproof membranes. For production, the technological lines Reicofil R3 and Reicofil R4, manufactured and commissioned by the German company Reifenhauser GmbH, are used.
MRC

MOSCOW (MRC) -- The anti-dumping investigation against primary high-density polyethylene (low-density polyethylene, HDPE) imported from Uzbekistan to the territory of the Eurasian Economic Union (EAEU) has been extended until October 26, 2021, the EEC said.

The investigation was initiated by the companies of the TAIF group - Nizhnekamskneftekhim and Kazanorgsintez in July 2020.

The EEC documents say that according to the applicants, in 2019, primary high-density polyethylene was supplied from Uzbekistan to the territory of the EAEU at prices below the normal cost in the domestic market of the republic.

The dumping margin for HDPE supplies amounted to 29.2%. The delivery price also exceeded the weighted average prices for HDPE produced on the territory of the EAEU, Interfax reports.

The initiators of the investigation also noted that from 2016 to 2019, the rate of imports of HDPE from Uzbekistan exceeded the growth rate of demand for these products in the EAEU market. The growth of imports from Uzbekistan, combined with dumping, led to containment of the rise in HDPE prices in the EAEU from 2016 to 2018 and to a decrease in prices for it in the Union market in 2019 relative to 2018. This led to a deterioration in the production and financial and economic indicators of the industry, Russian companies noted.

According to the applicants, there is a threat of further growth in dumping supplies "due to the significant volume of production capacity" for the production of HDPE in Uzbekistan.

The production of HDPE in Uzbekistan is carried out by the Uz-Kor Gas Chemical JV (Ustyurt Gas Chemical Complex, UGCC), which produces HDPE under a license from LOTTE Chemical (Korea) and the Shurtan Gas Chemical Complex (ShGKhK, SGCC).

According to the ICIS-MRC Price Report, the supply of polyethylene increased in Uzbekistan at domestic auctions last week. At the same time, the main increase fell on LPNP С4, and there was no offer of pipe HDPE at the auction. Buying activity during the week was at a good level, while some types of PE fell in price.

Uz-Kor Gas Chemical was commissioned in 2016 and has production capacity for the production of ethylene 400 thousand tons per year, HDPE 387 thousand tons per year, propylene and polypropylene (PP) 83 thousand tons per year. Shurtan GCC has a production capacity for the production of HDPE and LLDPE in the amount of 125 thousand tons per year.
MRC

MOSCOW (MRC) -- Oil prices are sending mixed signals about the production-consumption balance in the second half of 2021 and early 2022, implying the market is currently tight but likely to see significantly more output in the near future, reported Reuters.

In the physical market, Brent’s five-week calendar spread is trading around USD1.50 per barrel, which puts it in the 93rd percentile for all trading days since 2010, confirming the market is currently short of crude.

In futures, Brent’s six-month spread is around USD3.70 per barrel, also in the 93rd percentile for all trading days since 1990, signalling traders expect inventories to remain below average.

But front-month futures prices have risen less than 10% over the last two months, implying traders anticipate substantially more crude could be made available to the market without much further increase.

The current mix of flat prices and spreads is consistent with the view OPEC+ will increase production significantly in the remainder of 2021 and early 2022 to satisfy increasing demand while keeping stocks relatively low.

As MRC wrote before, The OPEC+ producer group, on July 18, reached a deal to increase its production quotas by 400,000 b/d each month starting in August, amounting to a 2 million b/d total increase by the end of the year. The agreement also involved an extension of the coalition's supply management pact through to 2022. The OPEC+ resolution puts an end to an acrimonious spat between Saudi Arabia and the UAE, which had arisen after the UAE had objected to Saudi Arabia's plan to tie OPEC+ production increases to a lengthening of the supply management pact, insisting that its baseline production level, from which its quota is determined, be raised first.

We remind that 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) -- OQ Chemicals (Monheim am Rhein, Germany) has announced a price increase in North America and Mexico for trimethylolpropane (TMP), according to Coatings World.

The nominated price rise of USD0.10 per pound is due to supply and demand and is effective 1 August or as contracts allow.

The company announced several price increases in North America and Mexico in May and June for various oxo intermediate and polyols products due to unprecedented strong demand and limited availability.

As MRC reported earlier, in September 2020, OQ Chemicals entered into an agreement to license its advanced proprietary technology for the production of ethylene and propylene derivatives to Duqm Refinery and Petrochemicals Industries Company (DRPIC) in Oman. DRPIC, a joint venture between Oman Oil Company and Kuwait International Oil Company, is a planned grassroots petrochemical complex at Duqm, Oman. In all, DRPIC awarded twelve license packages to international licensors.

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.

OQ Chemicals, formerly Oxea, is a global manufacturer of oxo intermediates and oxo derivatives, such as alcohols, polyols, carboxylic acids, specialty esters, and amines. These products are used for the production of high-quality coatings, lubricants, cosmetics and pharmaceutical products, flavours and fragrances, printing inks and plastics. OQ Chemicals is part of OQ, an integrated energy company that delivers sustainability and business excellence. OQ operates in 16 countries and covers the entire value chain from exploration and production to the marketing and distribution of its products.
MRC

MOSCOW (MRC) - The Delta-Pak company (Rossosh, Voronezh region) plans to organize the production of fully recyclable polymeric combined polyethylene film (Full-PE), which is used for a wide range of food and non-food products, Interfax reports.

The project meets the objectives of the national project "Ecology" and the achievement of national development goals to create a comfortable and safe environment for life. During the implementation of the project, eight highly productive jobs will be created.

It is noted that the implementation of the project will increase labor productivity by 40%, including thanks to the IDF loan in the amount of 300 mln rubles. under the program "Labor productivity".

In total, the expert council of the Industrial Development Fund (VEB.RF Group) approved six loans for the implementation of projects in the Arkhangelsk, Pskov, Samara, Lipetsk, Voronezh and Sverdlovsk regions. The amount of loans from the IDF will be about 1.2 bn rubles, and the total budget for the implementation of projects - 1.9 bn rubles.

Previously, the company put into operation a five-layer extrusion-blown line with a unit for monoaxial orientation of films (MDO) manufactured by HOSOKAWA ALPINE.

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 density polyethylene (HDPE) shipments decreased.

LLC "Delta-pack" was registered in the Voronezh region in May 1999, its main activity is the production of other plastic products "not included in other groups, except for their plastic sealing devices." Authorized capital - 7.7 million rubles. At the end of 2020, the company's revenue amounted to RUB 1.1 billion, net profit - RUB 125.2 million. The general director and sole owner is Viktor Doroshevsky.
MRC