MEGlobal nominates ACP for October 2021 at USD880 per tonne

MEGlobal nominates ACP for October 2021 at USD880 per tonne

MOSCOW (MRC) -- MEGlobal has announced its Asian Contract Price (ACP) for monoethylene glycol (MEG) to be shipped in October 2021, according to the company's press release.

Thus, on 13 September, the company said ACP for MEG would be at USD880/MT CFR Asian main ports for arrival in October 2021, up by USD10/tonne from the previous month.

The October 2021 ACP reflects the short term supply/demand situation in the Asian market.

As MRC reported earlier, MEGlobal announced its September ACP for MEG at USD870/MT CFR Asian main ports, up by USD30/tonne from August.

MEG is one of the main feedstocks for the production of polyethylene terephthalate (PET).

According to ICIS-MRC Price report, the situation in the Russian PET chips market remained steady last week.
PET chips supply remained tight in the local market. Most producers were still able to provide only contract buyers with material.

MEGlobal is a fully integrated supplier of monoethylene glycol (MEG) and diethylene glycol (DEG), collectively known as ethylene glycol (EG).
MRC

Neste and Kinder Morgan to jointly create US storage and logistics hub for renewable fuels and feedstock for polymers and chemicals

Neste and Kinder Morgan to jointly create US storage and logistics hub for renewable fuels and feedstock for polymers and chemicals

MOSCOW (MRC) -- Kinder Morgan, one of North America’s largest energy infrastructure companies, is partnering with Neste, one of the leading providers of renewable and circular solutions, to create a premier domestic raw material storage and logistics hub in the United States, supporting increased production of renewable diesel, sustainable aviation fuel and renewable feedstock for polymers and chemicals, according to Hydrocarbonprocessing.

Upon completion of the project, Kinder Morgan’s Harvey, Louisiana facility will serve as the primary hub where Neste will store a variety of raw materials.

The project, which is supported by a long-term commercial commitment from Neste, is expected to commence operations in the first quarter of 2023. At Neste’s option, the facility can be further expanded.

“This clearly shows the positive role America’s existing energy infrastructure can play in creating a sustainable future and fighting climate change,” says Jeremy Baines, President of Neste US. “Neste and Kinder Morgan are transforming existing terminal assets into what can be considered green infrastructure, which will ultimately enable more American businesses and cities to power their fleets and supply chains with renewable fuels and other products.”

The commitment is one of Neste’s largest to date in the US, supporting a more resilient, flexible and sustainable supply chain that can keep pace with the company's growing production capacity and increasing global demand for lower-emission products. It enhances Neste’s leading position, building on the company’s more than 15-year head start in creating an end-to-end renewable product value chain.

In the long term, the project could also help improve the lifecycle climate benefits and competitiveness of Neste’s renewable products through more efficient and less carbon intensive supply chain operations. Renewable fuels offer an immediate way to reduce greenhouse gas emissions from aviation and heavy duty road transport in the US. Neste’s renewable feedstock for polymers and chemicals manufacturing can also significantly reduce the carbon footprint of the end products.

As MRC wrote before, earlier this month, Neste agreed to acquire 100% of Agri Trading, one of the largest independent renewable waste and residue fat and oil traders in the United States, and its affiliate entities. The transaction is subject to the completion of customary closing conditions and regulatory approval.

We remind that in July, 2021, Finnish Neste and LyondellBasell announced a long-term commercial agreement under which LyondellBasell will source Neste RE, a feedstock from Neste that has been produced from 100% renewable feedstock from bio-based sources, such as waste and residue oils and fats. This feedstock will be processed through the cracker at LyondellBasell’s Wesseling, Germany, plant into polymers and sold under the CirculenRenew brand name.

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.

Neste (Helsinki) creates solutions for combating climate change and accelerating a shift to a circular economy. The company refines waste, residues and innovative raw materials into renewable fuels and sustainable feedstock for plastics and other materials. The company is the world’s leading producer of renewable diesel and sustainable aviation fuel, developing chemical recycling to combat the plastic waste challenge. In 2020, Neste's revenue stood at EUR11.8 billion, with 94% of the company’s comparable operating profit coming from renewable products.
MRC

OPEC decreased global oil demand forecast for last quarter of 2021 due to Delta coronavirus

OPEC decreased global oil demand forecast for last quarter of 2021 due to Delta coronavirus

MOSCOW (MRC) -- OPEC trimmed its world oil demand forecast for the last quarter of 2021 due to the Delta coronavirus variant, saying a further recovery would be partially delayed until next year when consumption will exceed pre-pandemic rates, said Hydrocarbonprocessing.

The Organization of the Petroleum Exporting Countries (OPEC) said in a monthly report it expects oil demand to average 99.70 million barrels per day (bpd) in the fourth quarter of 2021, down 110,000 bpd from last month's forecast.

"The increased risk of COVID-19 cases primarily fueled by the Delta variant is clouding oil demand prospects going into the final quarter of the year," OPEC said in the report. "As a result, second-half 2021 oil demand has been adjusted slightly lower, partially delaying the oil demand recovery into first-half 2022."

Governments, companies and traders are closely monitoring the speed that oil demand recovers from last year's crash. A faster return could boost prices and challenge the view that the impact of the pandemic may curb consumption for longer or for good.

Despite the downward revision to the fourth-quarter, OPEC said world oil demand in the whole of 2021 would rise by 5.96 million bpd, virtually unchanged from last month. The growth forecast for 2022 was adjusted to 4.15 million bpd, compared to 3.28 million bpd in last month's report and an estimate of 4.2 million bpd given by OPEC sources during the group's last meeting on 1 Sept.

"The pace of recovery in oil demand is now assumed to be stronger and mostly taking place in 2022," OPEC said. "As vaccination rates rise, the COVID-19 pandemic is expected to be better managed and economic activities and mobility will firmly return to pre-COVID-19 levels."

As per MRC, US petroleum consumption recovered to pre-pandemic levels, but there has been a marked shift from consumer-facing sectors towards industry and freight transportation, mirroring the uneven economic recovery. The total volume of petroleum products supplied to domestic customers climbed to 20.1 million barrels per day (bpd) in May, according to the Energy Information Administration. Volumes were down by less than 300,000 bpd (1.4%) from the same month in 2019, before the COVID-19 pandemic, and were actually 200,000 bpd (1.1%) above the pre-pandemic five-year average for 2015-2019.

As MRC informed earlier, recyclers in Southeast Asia were heard operating with low capacity utilisation in the film grade high density polyethylene (HDPE) market due to COVID-19-led lockdown measures. Market sources also said persistent bottlenecks at ports in Asia and some maintenance-related plant closures are likely to hurt the supply of petrochemicals during the week of Aug. 30-Sept. 3.

We remind that Southeast Asian polyethylene terephthalate (PET) recycling companies will continue facing challenges with the availability of raw materials, due to the low collecting and processing rate, as a result of the COVID-19 pandemic.

According to MRC's ScanPlast report, June estimated HDPE consumption in Russia decreased to 125,900 tonnes from 128,300 tonnes a month earlier. Domestic producers raised their exports, while some producers' output decreased. Russia's overall HDPE shipments to the Russian market totalled 675,670 tonnes in the first six months of 2021, down by 6% year on year. Production increased by 12%, whereas imports fell by 33%.

MRC

Westlake Chemical restarting its PVC complexes in Louisiana post Hurricane Ida

Westlake Chemical restarting its PVC complexes in Louisiana post Hurricane Ida

MOSCOW (MRC) -- Westlake Chemical, US petrochemical major, has regained access to industrial gases needed to operate its polyvinyl chloride (PVC) complexes in Plaquemine and Geismar, reported S&P Global with reference to sources familiar with the companies' operations.

That access, plus restoration of electric power, allowed the company to begin restart activities.

Those sources said the restarts would be gradual, as PVC complexes, shut on 29 August in advance of Hurricane Ida, involve multiple plants that have to be restarted one by one while checking for any storm-related, as-yet-undiscovered damage.

The company operates the following plants at these complexes:

- Geismar capacity (tonnes/year): 358,000 caustic soda, 320,000 chlorine, 550,000 EDC, 500,000 PVC, 385,000 vinyl chloride (VCM;
- Plaquemine capacity (tonnes/year): 476,000 caustic soda, 425,000 chlorine, 1.21m EDC, 895,000 PVC, 750,000 VCM.

Besides, Westlake Chemical declared force majeure (FM) on PVC and VCM supplies on August 31, 2021, and on caustic soda deliveries on September 2, 2021.

As MRC informed earlier, Westlake Chemical has lifted its FM on US PVC and upstream VCM, the company announced in a customer letter dated May 17. The letter said the company was "formally lifting the systemwide force majeure condition for PVC and VCM manufactured and shipped from its North American operations that was originally declared on Feb. 19" as a result of mid-February's deep freeze that "resulted in a shutdown/curtailment of our plant operations."

According to MRC's ScanPlast report, Russia's overall production of unmixed PVC totalled 664,100 tonnes in the first eight months of 2021, up by 5% year on year. Three producers increased their output.

Westlake Chemical Corporation is an international manufacturer and supplier of petrochemicals, polymers and building products with headquarters in Houston, Texas. The company's range of products includes: ethylene, polyethylene, styrene, propylene, chlor-alkali and derivative products, PVC suspension and specialty resins, PVC Compounds, and PVC building products including siding, pipe, fittings and specialty components, windows, fence, deck and film.
MRC

Westlake completes acquisition of Dimex

Westlake completes acquisition of Dimex

MOSCOW (MRC) -- Westlake Chemical Corporation has announced that it has completed the acquisition of Dimex LLC, from Grey Mountain Partners, a private equity firm, as per the company's press release.

“The acquisition of Dimex underscores our longstanding commitment to stewardship of the environment and recycling, and to taking actions that contribute to a sustainable, circular economy,” said Robert Buesinger, Executive Vice President, Vinyl Products of Westlake Chemical Corporation. “We are at an important societal inflection point where consumers prefer and are willing to pay for products made with recyclable materials. Dimex produces a variety of consumer products made from post-industrial-recycled polyvinyl chloride (PVC), polyethylene (PE) and thermoplastic elastomer materials, which will make this transaction an important piece of Westlake’s growth trajectory and ESG commitment for a long time.”

According to a recent survey of 2,000 US consumers reported by Plastics Today, 59% of respondents appreciate buying items made with recycled materials and are willing to pay more for such products. Recycling reduces landfill waste and saves energy from plastics production.

Buesinger continued, “Dimex has over 30 years of experience and is one of the largest processors of recycled plastic materials in the United States. Dimex also supplies recycled flexible PVC and TPE compounds to other environmentally conscious manufacturers. Because Dimex uses its compounds in its own products, the company is uniquely positioned to understand its customers’ needs and to provide the engineering, manufacturing, and distribution capabilities to meet those needs quickly and effectively.”

Based in Marietta, Ohio, Dimex produces a range of consumer and building products, including landscape edging; industrial, home and office matting; marine dock edging; and masonry joint controls. Following its acquisition by Grey Mountain Partners in 2013, the company expanded its product development resources, which resulted in the introductions of No-Dig Landscape Edging®, MotionTex Fitness Equipment Mats, and GrillTex Under the Grill Protective Deck and Patio Mats. Over the last four years, Dimex has secured 29 US patents for its products.

In addition to providing products manufactured with post-industrial recycled materials, Dimex is engaged in research and development to advance additional opportunities to increase the use of recycled materials. The acquisition expands Westlake’s role in improving how plastic materials are sourced and produced to meet the growing demand for sustainable and durable consumer products.

As MRC reported earler, in July 2021, McDermott International, Ltd has been selected by LACC, LLC, a joint venture between Westlake Chemical Corporation and Lotte Chemical Corporation, to provide engineering, procurement and construction for a seventh heater addition to its LACC Ethane Cracker Facility in Westlake, La.

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.

Westlake Chemical Corporation is an international manufacturer and supplier of petrochemicals, polymers and building products with headquarters in Houston, Texas. The company's range of products includes: ethylene, polyethylene, styrene, propylene, chlor-alkali and derivative products, PVC suspension and specialty resins, PVC Compounds, and PVC building products including siding, pipe, fittings and specialty components, windows, fence, deck and film.
MRC