Navoiazot to increase PVC production capacity

Navoiazot to increase PVC production capacity

MOSCOW (MRC) - The Navoiazot enterprise (Uzbekistan, part of Uzkimyosanoat) on 27 August started construction of the second stage of a polyvinyl chloride (PVC) plant, the press service of the President of the Republic of Uzbekistan reported.

The USD400 m project should increase the capacity for the production of suspension polyvinyl chloride from 100 to 220 thousand tons per year and caustic soda - from 75,000 to 165,000 tonnes.

The commissioning of the second stage of the PVC plant is scheduled for 2023. The general contractors of the project are the Turkish Tatarstan Trade House and the Chinese China National Chemical Engineering No.7 Construction.

The implementation of the projects will triple Navoiazot's sales volume - from USD150 m to USD410 m per year.

Earlier it was reported that Navoiazot put into operation a complex for the production of polyvinyl chloride, caustic soda and methanol at the end of 2019.

According to the ICIS-MRC Price Report, demand for PVC remained at a good level in Uzbekistan last week at the domestic auction, at the same time, prices decreased slightlyin the end of the auction. On Tuesday, a futures volume of PVC was drawn at the auction (one lot for 528 tonnes). As a result of weekly trading, 750 tonnes of acetylene PVC were sold against 750 tonnes a week earlier.

The Navoiazot enterprise was launched in 1964 and currently produces about half of all chemical products in the country. The company employs about 9000 engineers, technologists and workers. Two years ago, the enterprise launched a complex with a capacity of 100 thousand tons of polyvinyl chloride, 75 thousand tons of caustic soda and 300 thousand tons of methanol per year. But on the basis of the Navoiazot enterprise, it is planned to create a large integrated chemical-technological cluster on the basis of Navoiazot and the Electrochemical Plant.
MRC

Moody's upgrades Nizhnekamskneftekhim rating outlook from stable to positive

MOSCOW (MRC) - Moody's Investors Service has changed its outlook from "stable" to "positive" on the corporate rating (CFR) and probability of default rating (PDR) of Nizhnekamskneftekhim, the rating agency said.

At the same time, Moody's confirmed the company's CFR at 'B1' and PDR at 'B1-PD'. The outlook was changed to "positive" following the approval by the FAS of Russia of the proposed acquisition by SIBUR (Baa3 stable) of 100% of the voting shares of TAIF, which includes NKNKH, Kazanorgsintez and TGK-16. The combined enterprise will account for about 70% of all petrochemical production in Russia, and it will be one of the five largest world producers of polyolefins and rubbers.

The change in outlook to positive reflects Moody's expectation that the acquisition by SIUBR of a controlling stake in the company through TAIF will, over time, improve NKNK's credit profile through the integration of the two entities and lending support from a stronger parent company. The amount of credit ties and rating support will ultimately depend on the future organizational structure of the larger group, financial policy and the level of minority interests in the company.

As MRC informed earlier, PJSC "Nizhnekamskneftekhim" (NKNKh, part of TAIF) received 27.6 billion rubles in the first half of the year. net profit under the international financial system (IFRS) against 4.6 billion rubles. a year earlier. This is six times more than the same period last year. Revenue in the reporting period increased 1.7 times - up to Rb121.5 bn. Income from operating activities amounted to Rb30.3 bn against Rb10 a year earlier. Profit before tax rose to Rb34.6 bn against Rb5.8 bn in the same period last year.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased.

PJSC "Nizhnekamskneftekhim" (NKNKH) is one of the largest Russian producers of petrochemical products. The production complex of the company includes ten factories of the main production and ten departments (railway transport, main ethylene pipelines, etc.). NKNKh produces over 120 types of chemical products, including synthetic rubber, polyethylene, polypropylene, polystyrene, surfactants. Nizhnekamskneftekhim is part of TAIF Group.
MRC

Epsilyte raises September EPS prices on higher feedstock costs and current EPS supply and demand

Epsilyte raises September EPS prices on higher feedstock costs and current EPS supply and demand

MOSCOW (MRC) -- Epsilyte (The Woodlands, Texas), a leading North American producer of expandable polystyrene (EPS), has announced an increase in its prices for all EPS grades for September shipments on higher feedstock costs, said the company.

Thus, the price of the company's EPS grades will go up by 5 cents/pound (cts/lb) or USD110/tonne, effective 1 September, 2021 or as contracts allow.

Higher operational and supply chain costs, along with current EPS supply and demand dynamics, necessitate this adjustment.

As MRC reported earlier, Epsilyte increased its August EPS prices in the region by the same amount.

EPS is a rigid form of polystyrene (PS) used in insulation foams for the construction industry as well as for packaging.

According to ICIS-MRC Price report, in Russia, August prices for SIBUR-Khimprom and Plastk, Uzlobaya's material were in the range of Rb185,000-195,000/tonne CPT Moscow, including VAT. Russian plants' September prices still remained under negotiation, producers plan to announce them to market participants this week.

Epsilyte is owned by private equity firm Balmoral Funds (Los Angeles, California). Epsilyte is one of North America’s leading producers of expandable polystyrene resin. The company is focused on solving customer needs for efficient, high-R value EPS. This includes reducing energy usage in buildings, ensuring safe and healthy food through innovative packaging technology, and participating in infrastructure investment both in the United States and abroad.

COVID-19 - News digest as of 01.09.2021

1. Phillips 66 refinery sale offers test of investors views on pace of transition to electric vehicles

MOSCOW (MRC) -- US refiner Phillips 66's decision to market a Louisiana oil processing plant offers a key test of investors' views on the pace of the transition to electric vehicles, reported Reuters with reference to refinery industry experts. Phillips 66, the fourth largest US refiner, on Tuesday said it has put its 255,600 barrel per day (bpd) Alliance plant on the market, citing "the evolving energy landscape." The 50-year-old plant makes gasoline, diesel and jet fuel for US and Latin American markets. Reuters on Tuesday reported Phillips 66 is in talks with a potential buyer. A spokesman declined to comment, calling any talks confidential. Analysts said potential buyers may be willing to make a contrarian bet on motor fuel demand, pointing to private equity firms and rival Gulf Coast refiners Motiva Enterprises, Valero Energy Corp and PBF Energy.


MRC

Crude oil futures rise on tight US inventories and bullish demand sentiment in China

Crude oil futures rise on tight US inventories and bullish demand sentiment in China

MOSCOW (MRC) -- Crude oil futures were higher in mid-morning trade in Asia Sept. 1 amid the tightening of US inventories and bullish demand conditions in China, reported S&P Global.

At 11:15 am Singapore time (0315 GMT), the ICE November Brent futures contract was up 57 cents/b (0.79%) from the previous close at SD72.20/b, while the NYMEX October light sweet crude contract was 52 cents/b (0.75%) higher at USD69.02/b.

"The market is starting to digest the fact that the oil production outage is probably going to take some time in resuming, which will cause a tightening of crude inventory along with the rising demand, resulting in bullishness in the market," said Vandana Hari, CEO of Vanda Insights on Sept. 1, adding that China's appetite for crude oil seems to be recovering after successfully curbing the resurgence of delta variant.

Edward Moya, senior market analyst from OANDA noted there was optimism for crude demand across Europe as 70% of the adults in the EU are fully vaccinated.

In the offshore Gulf of Mexico, or GOM, roughly 1.7 million b/d of crude production remained offline Aug. 31, which is 94% of the total GOM output, the US Bureau of Safety and Environmental Enforcement noted. That was down slightly from 1.72 million b/d a day prior.

Meanwhile, the OPEC+ alliance is scheduled to meet Sept. 1 to decide whether to press on with plans to hike crude production by 400,000 b/d every month, as it is looking to eventually remove its output cuts implemented at the start of the pandemic.

As MRC informed previously, crude oil stockpiles fell modestly in early August, while gasoline inventories dipped to their lowest level since November, according to the US Energy Information Administration. Crude inventories fell by 447,000 barrels in the week to Aug. 6 to 438.8 million barrels, compared with analysts' expectations in a Reuters poll for a 1.3 million-barrel drop. Overall crude inventories have been on the decline for several weeks due to increased demand.

We remind that US crude oil production is expected to fall by 160,000 barrels per day (bpd) in 2021 to 11.12 million bpd, the US Energy Information Administration (EIA) said in a monthly report, a smaller decline than its previous forecast for a drop of 210,000 bpd.
MRC