Crude oil futures steady to lower in Asia on weaker dollar and positive outlook

MOSCOW (MRC) -- Crude oil futures were steady to lower during mid-morning Asia trade Sept. 3 following overnight gains, amid the retreat in the US dollar and as remnants of Hurricane Ida continued to shut US terminals in the East Coast, reported S&P Global.

At 12:19 pm Singapore time (0419 GMT), the ICE November Brent futures contract was down 1 cent/b (0.01%) from the previous close at USD73.02/b while the NYMEX October light sweet crude contract was down 14 cents/b (0.2%) at USD69.85/b.

"Crude prices seem to be volatile this morning, hovering between the green and red zone," Vandana Hari, CEO of Vanda Insights told Platts Sept 3.

"However, on a boarder perspective, the market seems to be on a positive note, supported by the bullish data from the Energy Information Administration and retreat of the dollar," Hari said, adding that the market is also awaiting further cues as production outages from the impact of Hurricane Ida will be prolonged, but overall fundamental seems to be bullish.

The latest Energy Information Administration data released late Sept. 2 showed that US crude inventories fell 7.2 million barrels to 425.4 million barrels for the week ended Aug. 27, bringing inventories to roughly 6% below the five-year seasonal average.

At 11:57 am Singapore time, the ICE US Dollar Index fell to 92.21, down from the previous close of 92.23 and on pace to close at its weakest since July 29.

Meanwhile, the latest data released by the US Department of Labor showed that weekly initial jobless claims stood at 340,000 for the week ended Aug. 28, marking its lowest since the start of the pandemic in mid-March 2020.
Jobless claims totaled 340,000 for the week ended Aug. 28, compared with market estimates of 345,000.

Elsewhere, the remnants of Hurricane Ida has resulted in historic flash flooding along the US' East Coast, shutting terminals in the area, with some regions receiving up to 10 inches of rainfall already, according to the US National Weather Service on Sept. 2.

"Refiners are struggling getting power back, but optimism is that things should mostly be back to normal in a few weeks," Oanda's senior market analyst Edward Moya said in a Sept. 3 note.

As MRC informed earlier, ExxonMobil said it has been restarting its 517,700 b/d refinery at Baton Rouge, Louisiana, after it was shut down ahead of Hurricane Ida.

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 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.
MRC

Trinseo reduces September PS prices in Europe

Trinseo reduces September PS prices in Europe

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 reduction for all polystyrene (PS) grades in Europe, according to the company's press release as of September 2.

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

- STYRON general purpose polystyrene grades (GPPS) -- by EUR65 per metric ton;
- STYRON and STYRON A-Tech and STYRON X- Tech and STYRON C- Tech high impact polystyrene grades (HIPS) - by EUR55 per metric ton;

As MRC reported earlier, Trinseo raised its prices for its PS grades, acrylonitrile-butadiene-styrene (ABS) and acrylonitrile-styrene copolymer (SAN) on August 1, 2021, as stated below:

- STYRON GPPS -- by EUR45 per metric ton;
- STYRON and STYRON A-Tech and STYRON X- Tech and STYRON C- Tech HIPS - by EUR60 per metric ton;
- MAGNUM ABS resins - by EUR130 per metric ton;
- TYRIL SAN resins - by EUR90 per metric ton.

According to ICIS-MRC Price report, in Russia, Nizhnekamskneftekhim raised its September selling HIPS an GPPS prices for most buyers by Rb700-750/tonne amid an increase in delivery costs. However, some market participants reported a price roll-over.

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

LDPE prices increased in the first week of September in Russia

LDPE prices increased in the first week of September in Russia

MOSCOW (MRC) - Scheduled maintenance works at Russian producers of low density polyethylene (LDPE) result in an imbalance between supply and demand in the market. Tight supply also puts pressure on prices, the main sellers announced a price increase of roubles (Rb) 2,000-7,000/tonne for in September, according to the ICIS-MRC Price Report.

A limited supply of LDPE from Russian producers was reported by many converters back in August. Supply of LDPE will become even tighter in September due to the planned shutdowns for the repair of facilities in Ufa and Kazan.
Also in the past few weeks, problems with road transport have worsened, and transportation costs have increased.
Because of this LDPE prices increased in early September by Rb2,000/tonne and more.

Gazprom neftekhim Salavat shut its LDPE capacities for the annual scheduled maintenance works from 20 July; the turnaround was originally planned for 30 days. But due to objective factors, the turnaround continues to this day, and new launch dates are not yet known.

Ufaorgsintez began a sequential shutdown for the repair of the capacities of the first LDPE line (PE 108) from 1 September, which will take a little less than two weeks according to the plan. However, the biggest loss for the market in the autumn is the shutdown of Kazanorgsintez's facilities for the turnaround, which will start on 15 September and will last a little less than a month. It is the second largest LDPE manufacturer in Russia.

This week's spot offer prices of 108 grade LDPE has started from Rb144,500/tonne CPT Moscow, including VAT, PE 108 prices increased to Rb149,000/tonne CPT Moscow, including VAT.
MRC

ExxonMobil restarting Baton Rouge, Louisiana refinery shut ahead of Hurricane Ida

ExxonMobil restarting Baton Rouge, Louisiana refinery shut ahead of Hurricane Ida

MOSCOW (MRC) -- ExxonMobil said it was restarting its 517,700 b/d refinery at Baton Rouge, Louisiana, after it was shut down ahead of Hurricane Ida, reported S&P Global with reference to a company spokesperson's statement Sept. 1.

"The Baton Rouge refinery, chemical plant and other ExxonMobil Baton Rouge facilities are safely progressing restart procedures. Our facilities did not sustain any significant damage during the hurricane," said Julie King, ExxonMobil company spokesperson via email.

The refinery was shut down ahead of Hurricane Ida, which made landfall on Aug. 29 as a Category 4 hurricane at Port Fourchon, Louisiana, about 100 miles south of New Orleans.

As MRC informed earlier, Shell found evidence of building damage at its 230,611-bpd Norco, Louisiana refinery. Sources familiar with plant operations said damage had been found at the Norco refinery but did not know the extent of the damage or time needed to make the repairs. Shell is awaiting the restoration of external electrical power to the Norco refining and chemical plant complex.

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 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC

S&P raises Braskem to investment grade

S&P raises Braskem to investment grade

MOSCOW (MRC) -- Braskem recently announced that the rating agency S&P Global Ratings (S&P) raised the company's global scale risk level to BBB-, with a stable outlook, said the company.

According to the statement, the agency highlighted that the upgrade of the rating to investment grade reflects the considerable improvement in profitability and cash generation indicators, the company's commitment to leverage and the expectation that Braskem will continue to benefit from the highs petrochemical spreads in the coming quarters.

"The company reinforces its continuous commitment to financial rigidity and maintenance of a solid cash position, maintaining a very long indebtedness profile", says the document.

As MRC informed before, Braskem is no longer pursuing a petrochemical project, which would have included an ethane cracker, in West Virginia. And the company is seeking to sell the land that would have housed the cracker. The project, announced in 2013, had been on Braskem's back burner for several years.

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 density 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.

Braskem S.A. produces petrochemicals and generates electricity. The Company produces ethylene, propylene, benzene, toluene, xylenes, butadiene, butene, isoprene, dicyclopentediene, MTBE, caprolactam, ammonium sulfate, cyclohexene, polyethylene theraphtalat, polyethylene, and polyvinyl chloride (PVC).
MRC