OMV European refineries operated with 83% capacity utilisation in H1 2021

MOSCOW (MRC) -- Austria-based OMV reported utilization of 83% at its European refineries in H1, 2021, down by 3% on the year yet "relatively resilient in light of the COVID-19 impact," reported S&P Global.

It expects the utilization rates at its European refineries to remain at the 2020 level this year. Last year its refineries reported 86% utilization. The company's refineries in Europe ran at 85% utilization in Q2, up from 81% in the year-ago quarter.

OMV Petrom said its Petrobrazi refinery operated at 93% utilization in H1 2021, compared with 92% in the year-ago period and "significantly above the European average". Its Q2 utilization was 91%, compared with 89% in Q2 20. The 2021 utilization rate is expected above 95% compared with 92% in 2020.

As MRC wrote before, OMV is investing EUR40 million (USD48 million) to expand and modernize a steam cracker and associated units at its refining and petrochemicals complex at Burghausen, Germany. The upgrade will increase the site’s ethylene and propylene production capacity by 50,000 metric tons/year. Following a planned turnaround of the refinery, the revamped cracker and petchem units are expected to start operations in the third quarter of 2022. Initial groundwork is already underway ahead of the upgrade.

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.

OMV produces and markets oil and gas, innovative energy and high-end petrochemical solutions – in a responsible way. With Group sales of EUR 23 bn and a workforce of around 20,000 employees in 2019, OMV Aktiengesellschaft is one of Austria’s largest listed industrial companies.
MRC

MOSCOW (MRC) -- Shintech, a subsidiary of Shin-Etsu Chemical Co. and the largest US polyvinyl chloride (PVC) producer, has replaced a damaged transformer at its Plaquemine, Louisiana, complex and the units were running at normal rates on July 26, reported S&P Global with reference to sources familiar with company operations.

One of two transformers at the complex was hit by lightning and caught fire July 2, prompting the company to shut multiple units. Thus, one unit with the capacity of 445,000 mt/year of PVC was shut on 2 July, 2021.

Shintech slowly restarted shut plants days later, but ran them at reduced rates while working to replace the damaged transformer, the sources said.

At present, all the works are completed, and all the units "now back in full running," one of the sources said.

Shintech did not respond to a request for comment.

The company's overall production capacity for PVC at its Plaquemine site is 1.606 mln mt/year.

Market sources said earlier that 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
MRC

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex binders, and synthetic rubber, and its affiliate companies in Europe, have announced a price increase for all polystyrene (PS), acrylonitrile-butadiene-styrene (ABS) and acrylonitrile-styrene copolymer (SAN) in Europe, according to the company's press release as of August 3.

Effective August 1, 2021, or as existing contract terms allow, the contract and spot prices for the products listed below rose, as follows:

- STYRON general purpose polystyrene grades (GPPS) -- by EUR45 per metric ton;
- STYRON and STYRON A-Tech and STYRON X- Tech and STYRON C- Tech high impact polystyrene grades (HIPS) - by EUR60 per metric ton;
- MAGNUM ABS resins - by EUR130 per metric ton;
- TYRIL SAN resins - by EUR90 per metric ton.

As MRC reported earlier, Trinseo reduced its prices for PS grades on July 1, 2021, as stated below:

- STYRON GPPS -- by EUR190 per metric ton;
- STYRON and STYRON A-Tech and STYRON X- Tech and STYRON C- Tech HIPS - by EUR170 per metric ton.

According to ICIS-MRC Price report, Russian market players expected August prices for Nizhnekamskneftekhim's material to be announced last week. By the end of last week, Nizhnekamskneftekhim reported a reduction of Rb5,000/tonne in its next month's PS prices, said several major market players.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD3.0 billion in net sales in 2020, with 17 manufacturing sites around the world, and approximately 2,600 employees.
MRC

1. Phillips 66 posts first profit in a year on rebound of fuel demand due to easing of pandemic-related travel curbs

MOSCOW (MRC) -- US refiner Phillips 66 posted an adjusted quarterly profit, its first in a year, benefiting from a rebound in fuel demand due to the easing of pandemic-related travel curbs, reported Reuters. Adjusted earnings came in at USD329 million, or 74 cents per share, for the three months ended June 30, compared with a loss of USD509 million, or USD1.16 per share, in the first quarter.

MRC

MOSCOW (MRC) -- Crude oil prices settled lower Aug. 3 as the continued spread of COVID-19 stoked concerns of demand-destroying mobility restrictions in Asia, reported S&P Global.

NYMEX September WTI settled down 70 cents at USD70.56/b and ICE October Brent declined 48 cents to USD72.41/b.

The rapid spread of delta variant of the coronavirus in Asia has stoked concerns that governments in the region could act quickly to institute new mobility restrictions. The Chinese government in July instituted mandatory quarantines at major ports, causing shipping backlogs and dislocations in the marine fuel oil market.

Market participants were preparing for a similar slate of measures in response to this latest outbreak. Airlines have canceled flights on certain routes, and mobility restrictions have been introduced in cities like Beijing.

NYMEX September RBOB settled down 39 points at USD2.2708/gal and September ULSD declined 94 points to USD2.1264/gal.

"While there remains plenty of cause for optimism - and I'm sure that will dominate more in the months ahead -- there's seemingly more focus on the delta spread, especially in China, the patches of softness appearing in the data and the risk of the Fed tapering too soon," OANDA senior market analyst Craig Erlam said in a note. "The manufacturing PMIs seem to have been the catalyst for the uncertainty this week, with both China and the US producing worse than expected prints."

The PMI data "feed into the narrative of peak growth and with the China data coming at a time of rising COVID cases, potentially darker days ahead," Erlam added. Data released Aug. 1 showed that China's Purchasing Manager's Index fell from 50.9 in June to 50.4 in July, as its economy struggles with extreme weather and a resurgence in COVID-19 infections.

Meanwhile, data from the Institute of Supply Management showed a slowdown in US manufacturing activity, with national factory activity falling from 60.6 in June to 59.5 in July, its lowest since January.

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