COVID-19 - News digest as of 29.09.2021

1. Trinseo introduces customized formaldehyde-free acrylic latex to support customer sustainability goals

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex, and rubber, has recently collaborated with a leading consumer materials customer to develop a formaldehyde-free acrylic latex for use in an environmentally friendly, artificial leather washable paper, as per the company's press release. Trinseo’s team of experts worked quickly and responsively to understand the application requirements and formulation challenges to develop a customized and cost-effective LIOGS solution that outperformed its competition. Even during the height of the COVID-19 pandemic, the collaboration moved rapidly. From scale-up after lab sampling to the first order, the conversion took place in just eight months. With the formaldehyde-free LIGOS solution in use, the company now benefits from roughly 10-15% savings on production costs.

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MOSCOW (MRC) -- Oil futures softened during mid-day trading in Europe Sept. 29 on the back of profit-taking, a stronger US dollar and an unexpected increase in US crude inventories, reported S&P Global.

At 1100 GMT, November ICE Brent futures were down 41 cents/b to USD78.68/b, while November NYMEX WTI futures lost 39 cents/b at USD74.90/b.

"Market observers attribute the price slide to profit-taking following the price surge beforehand. What is more, concerns are growing that rationing of electricity in China could put the brakes on industry there, and thus by extension on demand for oil and gas," said Carsten Fritsch, analyst energy, agriculture, precious metals at Commerzbank.

Meanwhile, a stronger US dollar may have placed additional pressure on the market, with the US dollar index (DXY) up 0.08% to 93.84 at 1100 GMT. A stronger dollar increases the relative expense of oil for buyers with non-US dollar currency, weakening demand.

Adding to the bearish sentiment was data from the American Petroleum Institute released Sept. 28, which showed US crude inventories unexpectedly increasing by 4.1 million barrels during the week ending Sept. 24.

The API report also showed gasoline inventories rising by nearly 3.6 million barrels and distillate stocks jumping by 2.5 million barrels. The market will now await the report by the US Energy Information Administration, due for publication Sept. 29, to draw more definitive conclusions. Should the EIA data correspond with the API figures, it would mark the first rise in crude inventories in eight weeks.

Market participants are now focused on the upcoming meeting of OPEC+ oil ministers scheduled next week, with expectations of an increase in production levels beyond the previously agreed 4 million b/d.

As MRC informed earlier in late August, 2021, US crude stocks dropped sharply while petroleum products supplied by refiners hit an all-time record despite the rise in coronavirus cases nationwide, the Energy Information Administration said. Crude inventories fell by 7.2 million barrels in the week to Aug. 27 to 425.4 million barrels, compared with analysts' expectations in a Reuters poll for a 3.1 million-barrel drop. Product supplied by refineries, a measure of demand, rose to 22.8 million barrels per day in the most recent week. That's a one-week record, and signals strength in consumption for diesel, gasoline and other fuels by consumers and exporters.

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.
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MOSCOW (MRC) -- Polypropylene (PP) imports into Russia increased by 16% year on year to about 165,800 tonnes in the first eight months of 2021. Propylene copolymers accounted for the main increase in imports, according to MRC's DataScope report.

Russian companies decreased external purchases of polypropylene in August, imports reached 20,400 tonnes against 23,200 tonnes a month earlier. Thus, overall PP imports into Russia reached 165,800 tonnes in January-August 2021, compared to 143,200 tonnes a year earlier.
Imports of all types of propylene polymers increased, with the largest increase in supply accounted for by propylene block copolymers (PP block copolymers).

Overall, the structure of PP imports by grades looked the following way over the stated period.

August imports of homopolymer PP were slightly less 6,900 tonnes versus 9,600 tonnes a month earlier, shipments of PP from Azerbaijan decreased significantly. Thus, overall imports of homopolymer PP totalled 61,400 tonnes in the first eight months of 2021, compared to 60,800 tonnes a year earlier.

August imports of PP block copolymers in Russia were about 7,300 tonnes against 6,600 tonnes in July on improved demand for injection moulding and pipe PP. Imports of PP block copolymers into Russia reached 50,100 tonnes in January-August 2021, compared to 38,300 tonnes a year earlier.

August imports of stat-copolymers of propylene (PP random copolymers) decreased to 3,000 tonnes from 3,400 tonnes a month earlier, with films products manufactures accounting for the main reduction in shipments. Overall imports of this grade of propylene copolymers were 27,700 tonnes in January-August 2021, compared to 23,400 tonnes a year earlier.

Russia's imports of other polymers of propylene for the period were about 23,400 tonnes in the first eight months of the year, compared with 20,700 tonnes year on year.

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MOSCOW (MRC) -- Royal Dutch Shell, the largest oil producer in the US Gulf of Mexico, tentatively plans the first restart of a production unit at its 230,611 barrel-per-day (bpd) Norco, Louisiana, refinery for mid-October, reported Reuters with reference to sources familiar with plant operations.

A Shell spokesman did not reply to a request for comment.

The refinery, located 21 miles (34 km) west of New Orleans, was shut on Aug. 28 ahead of the landfall of Hurricane Ida. The refinery was flooded and damaged as the powerful storm passed over the plant, the sources said.

Shell is working to restart the boiler at the refinery, which is necessary for internal power and to produce steam used in the production process, the sources said. The refinery began attempting to restart the boilers over the weekend.

The Norco refinery was one of nine in Louisiana shut by Hurricane Ida. All have returned to production except for the Shell refinery and Phillips 66's 255,600-bpd Alliance, Louisiana, refinery. Sources familiar with operations at the Alliance plant have said it requires months of repairs.

As MRC informed earlier, Royal Dutch Shell plans to reduce its refining and chemicals portfolio by more than half, it said in July 2020 without giving a precise timeframe. The move is part of the Anglo-Dutch company's plan to shrink its oil and gas business and expand its renewables and power division to reduce greenhouse gas emissions sharply by 2050.

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 1,396,960 tonnes in January-July 2021, up by 7% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 841,990 tonnes in the first seven months of 2021, up by 29% year on year. Supply of propylene homopolymers (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of statistical copolymers of propylene (PP random copolymers) subsided.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC

MOSCOW (MRC) -- The blast happened at Westlake Chemical's site in the city of Sulphur just after 11 pm on Monday night, Sept. 27, reported KPLC News.

It occurred during maintenance at the company's Petro Complex 2 Unit, which processes ethylene, according to spokesperson Joe Andrepont. But there has been no fire as a result of the accident.

AT least six people were injured after an explosion at the cracker in Louisiana with the capacity of 740,000 mt/year of ethylene, reports say. Four of the six have since been released from the hospital, according to company spokesperson Joe Andrepont.

All six people injured were contract employees working on a planned maintenance turnaround, Andrepont said.

The cause of the explosion remains unknown and an investigation into the incident remains ongoing.

As MRC informed earlier, a fire at Westlake Chemical’s Petro 1 Unit in Lake Charles, Louisiana was reported on 25 June, 2021, according to KPLC News with reference to company officials' statement. The fire has been quickly contained.

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 1,396,960 tonnes in January-July 2021, up by 7% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 841,990 tonnes in the first seven months of 2021, up by 29% year on year. Supply of propylene homopolymers (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas 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.
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