Verkhovna Rada of Ukraine registered a bill banning disposable plastic tableware

MOSCOW (MRC) - A bill banning the circulation of disposable plastic dishes, straws, cups and other products has been registered in the Verkhovna Rada of Ukraine, Epravda reports.

This is known from the bill №6077. The authors of the document explain that over the past 50 years, global plastic production has increased 20 times and according to forecasts, its volume will double by 2035, and by 2050 - four times. The same trend is observed in Ukraine.

Back in 2019, the EU adopted a Directive on the restriction of the circulation of certain disposable products and a ban on products made from oxo-degradable plastics. Most of the bloc countries have already adopted the relevant legislative changes.

In Ukraine, they want to follow a similar path - to limit the production, turnover and import of certain types of disposable plastic products and oxo-decomposable plastic products.

Also, the document introduces state market supervision of such products, liability for violation of requirements.

The following products are offered to prohibit: hygienic cotton swabs (except for medical purposes);
containers made of expanded polystyrene and expanded polystyrene; stirrers for drinks and straws;
sticks attached to balloons; plastic containers in the form of blister packs or take-away trays; plastic forks, knives, spoons, sticks.

Earlier it was reported that in June the Verkhovna Rada of Ukraine adopted in the second reading and in general a bill prohibiting the distribution of plastic bags other than biodegradable in stores and food outlets - companies have 9 months to adapt.

As per MRC's DataScope report, last month's PE imports to Ukraine grew to 25,900 tonnes from 23,400 tonnes in July, local companies increased their purchasing of low density polyethylene (LDPE) and linear low density polyethylene (LLDPE). At the same time, overall PE imports were 171,100 tonnes in January-August 2021, compared to 182,400 tonnes a year earlier. Imports of all PE grades decreased without exception, with LDPE accounting for the greatest reduction in shipments.
MRC

MOSCOW (MRC) - Voronezhsintezkauchuk Plant (VSK, SIBUR Holding) produced the millionth tonne of SBS polymers (styrene-butadiene-styrene) and became the first company in Russia to reach a record level in the production of this polymer, the company said.

SIBUR is the largest producer of SBS polymers in the country with a design capacity of 135,000 tonnes per year, which is 5% of the world SBS polymer market.

According to experts, 80% of federal highways are built and repaired with the use of PMB at the SBS. Binder grades PG with SBS will be used in the construction of the M12 Moscow-Kazan highway.

It is noted that the production of PMB using SBS polymers in Russia has grown 4 times over 5 years - up to 1.1 mln tonnes, of which the consumption of PMB at SBS in Russia has grown 3 times, and exports - 13 times (from 26,000 to 340,000 tonnes).

It is expected that in 2021 the consumption of PMB in Russia will amount to 0.8 mln tonnes, or 11% of the total consumption of road bitumen. In terms of the percentage of PMB consumption from the volume of road bitumen use, Russia is approaching the European average (12-17%).

SIBUR is currently focusing on the Safe and High-Quality Roads national project. The implementation of the project with the use of PMB at the SBS will allow solving a number of tasks of the national project and reaching the target benchmark for a turnaround time of at least 12 years, which will significantly increase the period of accident-free road conditions.

In 2013, Voronezhsintezkauchuk opened a new production of SBS polymers with a capacity of 50,000 tonnes per year, aimed at meeting, first of all, the needs of the domestic construction industry. In 2018, at Voronezhsintezkauchuk, with the support of the Government of the Voronezh Region, an investment project was launched to increase the production capacity of thermoplastic elastomers by another 50,000 tonnes per year.

Styrene is the main raw material for the production of polystyrene (PS).

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.

Voronezhsintezkauchuk is a Russian manufacturer of synthetic rubbers. Since 1998 it has been controlled by SIBUR, since 2012 SIBUR has been the 100% owner of the enterprise. It produces about 40 types of products.
MRC

MOSCOW (MRC) -- Polymir, part of JSC "Naftan", has shut down some of its low density polyethylene (LDPE) production capacities for a scheduled turnaround, according to ICIS-MRC Price report.

The plant's customers said the Belarusian producer took off-stream its second LDPE line (158 grade polyethylene) for scheduled repairs on 1 October. The outage will last for 30 days. And this is already the second shutdown for maintenance this year.

Polymir (part of Naftan) is Belarus' largest petrochemical company, producing a wide range of chemical products, such as low density polyethylene (LDPE), acrylic fibers, products of organic synthesis, hydrocarbon fractions, etc. Polymir was founded in 1968. The producer uses technologies of the largest foreign companies from Great Britain, Japan, Germany, Italy (Courtaulds, Asahi Chemical Co. Ltd, Kanematsu Gosho, SNIA BPD, etc.), as well as the developments of scientific research institutes and design institutes of the CIS countries. The plant's annual production capacity is 130,000 tonnes.
MRC

1. US crude, fuel inventories rise as production rebounded from recent storms

MOSCOW (MRC) -- US crude oil, gasoline and distillate inventories rose last week as the production rebounded from recent storms, reported Reuters with reference to the US Energy Information Administration's statement. Crude inventories rose by 4.6 MMb in the week to Sept. 24 to 418.5 MMb, EIA data showed, compared with analysts' expectations in a Reuters poll for a 1.7 MMb drop. The rebound came as US crude output jumped by 500,000 bpd to 11.1 MMbpd, a level consistent with activity before Hurricane Ida slammed into the US Gulf Coast about a month ago. Analysts consider weekly production data less reliable than monthly figures, which are released on a lagging basis.

MRC

MOSCOW (MRC) -- Crude oil futures were steady to lower in mid-morning trade in Asia Oct. 1 amid a stronger dollar, while the outlook remained bullish in the lead-up to an OPEC+ meeting scheduled for Oct. 4, reported S&P Global.

At 10:30 am Singapore time (0230 GMT), the ICE December Brent futures contract was down 14 cents/b (0.18%) from the previous close at USD78.17/b, while the NYMEX November light sweet crude contract was 12 cents/b (0.16%) lower at USD74.91/b.

Crude prices are entering into consolidation mode as energy traders await the OPEC+ meeting on output," OANDA Senior Market Analyst Edward Moya said in a note Oct. 1, adding the strengthening dollar was also impacting oil prices.

OPEC+ will meet Oct. 4 to discuss whether to expand its existing agreement of increasing production by 400,000 b/d. The group has recently come under pressure for capping its monthly production increases at 400,000 b/d amid an increase in global demand.

ING research analysts in a note Oct. 1 said it was safe to assume given the current environment that an increase of at least 400,000 b/d was guaranteed for November, adding the greater uncertainty was whether the group would be willing to ease production caps more aggressively.

The stronger dollar was adding headwinds to oil prices. The dollar index stood at 94.32 at 0230 GMT, up 0.1% from the previous close. A stronger dollar makes dollar-denominated assets such as oil more expensive for buyers holding foreign currency, thus dampening demand.

Despite the dip in crude oil prices in early Asian trade, several analysts noted that fundamental remained bullish. The Chinese government has asked state-owned energy companies to build and ensure adequate reserves to meet power needs for winter, which had seen crude prices end higher Sept. 30.

Reflecting similar sentiment, ANZ research analysts noted that refinery offtake continued to remain strong amid attractive margins, while China was preparing to buy more energy to avoid a supply crunch.

We remind that, as MRC wrote earlier, Japanese and Indian refiners said Sept. 28 they were cautiously optimistic about the regional oil demand reaching pre-pandemic levels, as the pace of recovery gains momentum due to lower COVID-19 infections, with India taking slightly longer to get there. Higher demand for fossil fuels gasoline and diesel was leading the recovery in Asia, with the consumption in some countries already past the pre-pandemic levels, but weak jet fuel demand was a drag.

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.
MRC