PVC imports to Russia up by 25% in H1 2021, exports down by 12%

MOSCOW (MRC) -- Imports of suspension polyvinyl chloride (SPVC) into Russia totalled about 20,000 tonnes in the first six months of 2021, up by 25% year on year. At the same time, exports decrease by 12%, according to MRC's DataScope report.

Last month's SPVC imports to Russia were 5,000 tonnes versus 5,300 tonnes in May. Despite an acute shortage of resin in the domestic market, Russian companies were unable to multiply their imports, because the key suppliers are Chinese producers, and they have major export restrictions.

Overall imports reached 20,000 tonnes in the first six months of 2021, compared to 16,000 tonnes a year earlier, with resin from China accounting for the main increase in imports.


June record high PVC prices in the domestic market forced some producers to significantly reduce their export sales. 12,000 tonnes of PVC were exported in June versus 22,900 tonnes a month earlier. Overall exports totalled 104,700 tonnes in January-June 2021, compared to 119,700 tonnes a year earlier.

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COVID-19 - News digest as of 02.08.2021

1. Valero Q2 operating income fell 72%

MOSCOW (MRC) -- Valero Energy Corp said its adjusted profit rose in the second quarter from the previous three-month period, as fuel consumption improved with the easing of coronavirus-related travel restrictions, said Hydrocarbonprocessing. Adjusted net income attributable to Valero stockholders was USD197 million, or 48 cents per share, for the three months ended June 30, compared with USD140 million, or 34 cents per share, in the prior quarter. Valero's Q2 operating income fell 72% year on year as sales growth was outpaced by an increase in total cost of sales.




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Crude oil futures down in Asia amid concerns over the resurgent spread of COVID-19

Crude oil futures down in Asia amid concerns over the resurgent spread of COVID-19

MOSCOW (MRC) -- Crude oil futures fell in mid-morning trade in Asia Aug. 2 amid concerns over the resurgent spread of COVID-19, after the weekend brought a slew of reports of rising cases in China and parts of Southeast Asia, reported S&P Global.

At 10:55 am Singapore time (0255 GMT), the ICE October Brent futures contract was down USD1.08/b (1.43%) from the previous close at USD74.33/b, while the NYMEX September light sweet crude contract was 96 cents/b (1.30%) lower at USD72.99/b.

China on Aug. 1 reported 75 new COVID-19 cases, up from 55 the day before and the country's highest daily total in months. Authorities are now scrambling to contain outbreaks of the delta variant in several tourism-heavy cities, including Hainan Island and Zhangjiajie in Hunan province.

More than 1 million people have been placed under lockdown in Zhangjiajie, according to news reports.

"The weekend brought more discouraging headlines over the spread of the delta variant," said Vandana Hari of Vanda Insights.

"Especially worrisome for oil markets is the resurgence in China. It is the second largest oil consumer in the world and for many months, it has managed to keep COVID-19 in check until now," Hari added.

Lockdowns were also announced or extended in other parts of Asia, including Australia, Thailand and the Philippines.
The recent outbreaks will dampen hopes by investors that the global vaccination drive will keep the COVID-19 situation in check, analysts said.

"Clearly, COVID-19 still poses a risk to the demand recovery, particularly in countries where vaccination rates are still low," ING analysts Warren Patterson and Wenyu Yao said in a note.

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.
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Sinopec Qilu to shut LLDPE plants in China for scheduled maintenance

Sinopec Qilu to shut LLDPE plants in China for scheduled maintenance

MOSCOW (MRC) - Sinopec Qilu Petrochemical, a subsidiary of one of the world's largest energy and chemical companies - Sinopec, plans to shut down four linear low density polyethylene (LLDPE) plants in Tianjin in northeast China for scheduled repairs on 10 August, 202q, according to CommoPlast.

It is expected that the turnaround at these plants, which can produce 70,000 mt/year (No. 1 plant), 70,000 mt/year (No. 2 plant), 140,000 mt/year (No. 3 plant) and 250,000 mt/year (No. 4 plant) of LLDPE, will last for about 50 days.

As MRC reported earlier, the company took off-stream its No. 3 LLDPE plant for unscheduled repairs from 2 to 11 June, 2020.

According to MRC's ScanPlast report, May LLDPE shipments to the Russian market slumped to 35,120 tonnes from 57,110 tonnes a year earlier. Producers reduced their PE production, and exports increased. Russia's overall LLDPE shipments were 168,190 tonnes in January-May 2021, up by 6% year on year. Films producers accounted for the main increase in demand.

Sinopec corp. is one of the world's largest integrated energy and chemical companies. Business Sinopec Corp. includes oil and gas exploration, production and transportation of oil and gas, oil refining, petrochemical production, production of mineral fertilizers and other chemical products. In terms of refining capacity, Sinopec Corp. ranks second in the world, in terms of ethylene capacity - fourth.
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PureCycle to invest USD440 mln in rPP plant in Georgia, USA

PureCycle to invest USD440 mln in rPP plant in Georgia, USA

MOSCOW (MRC) -- PureCycle Technologies, Inc., the innovative recycled polypropylene (PP) producer, has reached an agreement with The Augusta Economic Development Authority to build its first US cluster facility to produce ultra-pure recycled polypropylene (rPP) from waste PP, according to BF.

The 200-acre location in Augusta Corporate Park will create over 80 manufacturing jobs with an initial USD440 million investment to primarily fund three lines of 130 million pounds of capacity during Phase 1 of the project. Augusta-Richmond County was selected based on feed and product delivery supply-chain efficiencies, community support, a skilled labor market, and Georgia’s business-friendly environment.

“We’re delighted to be working with the Augusta Economic Development Authority to establish our next polypropylene purification facility,” said PureCycle CEO Mike Otworth. “Demand for high quality recycled polypropylene is continuing to outpace supply as brands seek sustainable materials for their products. Our Augusta operation will be pivotal in our quest to help solve for the plastics waste crisis.”

PureCycle uses licensed proprietary technology to recycle waste PP into ultra-pure recycled-PP for applications spanning consumer goods, automotive, building and construction, and industrial uses. The company can process a wide range of waste PP with varying levels of contamination.

The Augusta plant will enhance PureCycle’s ability to deliver product at scale with a robust process designed to produce 130mm pounds per year, per processing line, with expansion capacity to construct up to 5 processing lines within Augusta Corporate Park. The company plans to reach one billion pounds of production across its network by 2025, where it will produce virgin-like rPP from PP.

Construction of the company’s flagship Ironton, OH recycling facility is well underway and has already pre-sold more than 20 years of output.

As MRC reported earlier, in May 2020, Total has signed an agreement with PureCycle Technologies to develop a strategic partnership in plastic recycling. As part of the agreement, Total undertakes to purchase part of the output of PureCycle Technologies’ future facility in the United States and to assess the interest of developing a new plant together in Europe. PureCycle Technologies uses an innovative, patented technology to separate color, odor and any other contaminants from plastic waste feedstock to transform it into virgin-like rPP. The company, which was to begin construction on its first plant in Ohio (USA) last year, will produce 48,000 tons of rPP.

According to MRC's ScanPlast report, 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.
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