Index of chemical production in Russia rises by 8.2% in H1 2021

MOSCOW (MRC) -- Russia's output of chemical products rose in June 2021 by 10.2% year on year. However, production of basic chemicals increased year on year by 8.2% in the first six months of 2021, according to Rosstat's data.

According to the Federal State Statistics Service of the Russian Federation, polymers in primary forms and synthetic rubbers accounted for the greatest increase in the output in January-June 2021.

Production of benzene dropped to 108,000 tonnes in June 2021 from 119,000 tonnes a month earlier. Overall output of this product reached 695,900 tonnes over the stated period, down by 3.3% year on year.

June production of sodium hydroxide (caustic soda) was 103,000 tonnes (100% of the basic substance) versus 105,000 tonnes a month earlier. Overall output of caustic soda totalled 642,500 tonnes in the first half of 2021, down by 1.2% year on year.

2,120,000 tonnes of mineral fertilizers (in terms of 100% nutrients) were produced in June 2021 versus 2,283,000 tonnes a month earlier. Overall, Russian plants produced about 13,307,000 tonnes of fertilizers in January-June 2021, up by 7.4% year on year.

June production of polymers in primary form was 937,000 tonnes versus 956,000 tonnes in May. Overall output of polymers in primary form totalled 4,460,000 tonnes over the stated period, up by 12.8% year on year.

135,000 tonnes of synthetic rubbers were produced in June, compared to 130,000 tonnes a month earlier. Overall, Russian plants produced about 859,900 tonnes of synthetic rubbers in January-June 2021, up by 18.3% year on year.
MRC

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.

MRC

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.




MRC

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.
MRC

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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