BSK resumed PVC production

BSK resumed  PVC production

MOSCOW (MRC) -- Bashkir Soda Company (BSK, Sterlitamak) has resumed its polyvinyl chloride (PVC) production after the scheduled turnaround, according to the ICIS-MRC's Price Report.

According to a company representative, PVC production was resumed on Monday after stopping for preventive maintenance works. The outage was short and lasted for only two weeks. The plant's annual production capacity is 240,000 tonnes.

It is worth saying that the next shutdown for turnaround is scheduled at Kaustik Volgograd in September.
The annual capacity of the Volgograd producer is 90,000 tonnes.

According to MRC's ScanPlast, Baskhir Soda Company produced 23,300 tonnes of SPVC in June versus 23,800 tonnes a month earlier. The Baskhir plant's overall production of resin reached 140,500 tonnes in January-June 2021, up by 8% year on year.

JSC "Bashkir Soda Company" was founded in April 2013 by the takeover of JSC "Soda" to JSC "Kaustik". BSK is one of the largest chemical complexes in the country. The company ranks first in Russia in the production of soda ash and baking soda, and is also one of the leaders in the production of PVC, caustic soda and cable compounds.


MRC

COVID-19 - News digest as of 29.07.2021

1. SK Innovation sees refining margins to gradually improve in Q2 on stronger demand

MOSCOW (MRC) -- SK Innovation Co Ltd, the owner of South Korea's top refiner SK Energy, said refining margins were likely to gradually improve in the second quarter due to recovering demand as the impact of COVID-19 eases, according to Hydrocarbonprocessing. The company posted an operating profit of 503 billion won (USD444.88 million) in the January-March quarter, compared with an operating loss of 1.8 trillion won in the same period a year earlier. Revenue declined 16% to 9.2 trillion won from a year earlier. That compares with the 9.9 trillion won forecast of analysts in the Refinitiv SmartEstimate. "Despite the resurgence of COVID-19 in some regions and countries, as vaccinations in the United States and Europe continue, expectations about demand recovery are growing," Lee Dong-yeol, the head of SK Energy's corporate planning office, said in a earnings conference call.



MRC

Crude oil futures rise slightly in Asia supported on draw in EIA crude, product inventories and weaker dollar

MOSCOW (MRC) -- Crude oil futures were slightly higher during mid-morning trade in Asia July 29, supported by the Energy Information Administration's report of draws in US crude and product inventories, and by the depreciation of the US dollar following the conclusion of the Federal Open Market Committee's meeting, reported S&P Global.

At 10:55 am Singapore time (0255 GMT), the September ICE Brent futures contract was up 33 cents/b (0.44%) from the previous close at USD75.07/b, while the NYMEX September light sweet crude contract was 34 cents/b (0.47%) higher at USD72.73/b.

Data released from the EIA late July 28 showed US crude inventories falling 4.09 million barrels to 435.6 million barrels in the week ended July 23. The drawdown pushed inventories 7.1% behind the five-year average, leaving them at their lowest level since the week ended Jan. 31, 2020.

The headline crude draw, while supportive of sentiment, however, failed to spark a significant rally, as the market was already expecting a decline in inventories after the American Petroleum Institute, a day earlier, reported that crude inventories had fallen 4.73 million barrels in the same period.

The crude draw was also not underpinned by a significant improvement in fundamentals, with refinery input falling 130,000 b/d to 15.88 million b/d, the lowest since May. The draw was partly attributable to a slowdown in crude imports, which slid 590,000 b/d to 6.51 million b/d.

Downstream product inventories also recorded declines, with US gasoline falling 2.25 million barrels to 234.16 million barrels, and US distillate inventories falling 3.09 million barrels to 137.91 million barrels in the week ended July 23.

Total products supplied, EIA's proxy for demand, defied a surge in COVID-19 infections in the US to rise 2.63% week on week to 21.23 million b/d.

"Despite all the delta variant concerns, it seems that the hit to crude demand is minimal thus far," Edward Moya, senior market analyst at OANDA, said.

Oil prices were also supported by the depreciation of the US dollar, with the ICE dollar index trading at 92.19 at 10.51 am am Singapore time, 0.27% lower from the July 27 close. The depreciation in the US dollar came after the Federal Reserve reiterated its dovish stance following the FOMC meeting, emphasizing that the central bank has still not set a timeline to taper its asset purchase program.

As MRC informed earlier, Saudi Arabia, the world's top crude oil exporter, will supply full contractual volumes of August-loading crude to at least five Asian customers. However, Saudi Aramco has turned down two of the buyers' requests for extra barrels.

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

Vinnolit declares force majeure on SPVC supplies from its Knapsack plant

Vinnolit declares force majeure on SPVC supplies from its Knapsack plant

MOSCOW (MRC) -- European PVC producer Vinnolit has declared force majeure (FM) on shipments of suspension polyvinyl chloride (SPVC) from its plant in Knapsack, Germany because of technical issues caused by flooding in the region, reported NCT.

The force majeure was declared on 19 July, 2021.

At present, its is unknown when FM at this plant with the capacity of 160,000 mt/year of SPVC will be lifted.

As MRC informed earlier, in October, 2020, Vinnolit decided to close its 50,000 tons/year PVC plant in Schkopau, Germany due to the lack of profitability and the lack of long-term competitiveness of the location in the current environment.

According to MRC's ScanPlast report, Russia's overall production of unmixed PVC totalled 515,900 tonnes in the first half of 2021, up by 1% year on year. At the same time, two producers reduced their output.

Vinnolit company is a key player in the Russian market of emulsion.
MRC

Shintech running operations at its PVC complex in Louisiana at reduced rates after fire

Shintech running operations at its PVC complex in Louisiana at reduced rates after fire

MOSCOW (MRC) -- Shintech, a subsidiary of Shin-Etsu Chemical Co. and the largest US polyvinyl chloride (PVC) producer, has been running its PVC production capacities at Plaquemine, Louisiana, complex at reduced rates after fire, reported S&P Global with reference to market sources.

One unit with the capacity of 445,000 mt/year of PVC was shut on 2 July, 2021, after lightning struck and ignited a fire at a transformer at the site, and it still remained off-line in mid-July. The company's overall production capacity for PVC at its Plaquemine site is 1.606 mln mt/year.

Market sources said the interruption has reduced Shintech's August export volume availability,

As MRC informed earlier, in late Marchl, 2020, Shintech shut its PVC facility in Freeport, Texas for a turnaround. The complany ended maintenance works at its 1.4 million mt/year PVC complex in Freeport in early May, 2020.

According to MRC's ScanPlast report, Russia's overall production of unmixed PVC totalled 515,900 tonnes in the first half of 2021, up by 1% year on year. At the same time, two producers reduced their output.

Shintech Inc. is the world's largest producer of polyvinyl chloride (PVC). PVC is a general-use resin that is finding wide application in goods used in daily life and a significant number of industrial materials. Shintech is committed to operating safe and environmentally responsible facilities
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