EEC proposes to introduce anti-dumping duties on imports of HDPE from Uzbekistan

MOSCOW (MRC) - The Eurasian Economic Commission proposes to introduce an anti-dumping duty in respect of primary low-density polyethylene (HDPE) from Uzbekistan in the amount of 20.3% of the customs value for a period of 5 years, the ministry said.

So, on 27 July, 2020, the Eurasian Economic Commission launched an anti-dumping investigation against primary high-density polyethylene originating from the Republic of Uzbekistan.

The object of the investigation is primary polyethylene in solid primary forms with a specific gravity of 0.94 g / cm3 and more, originating from the Republic of Uzbekistan, classified by the EAEU TN VED code 3901 20 900 9.

The conclusions set out in the report indicate the presence of dumping imports of primary HDPE from the Republic of Uzbekistan and the resulting material damage to the EAEU economy.

The agency decided to start an anti-dumping investigation based on the results of consideration of an application filed on behalf of Nizhnekamskneftekhim (NKNKh, part of TAIF) and Kazanorgsintez (KOS, part of TAIF) and supported by the West Siberian Petrochemical Plant (ZapSibNeftekhim, part of SIBUR Holding).

The presence of dumped imports and the resulting damage to the EAEU economy sector is explained by the applicants by the fact that in 2019 primary high-density polyethylene from the Republic of Uzbekistan was supplied to the EAEU territory at dumping prices, that is, at prices below the normal cost in the domestic market of the Republic of Uzbekistan.

According to the applicants, the dumping margin for HDPE supplies in the EAEU exceeded the minimum allowable dumping margin and amounted to 29.2%. At the same time, against the background of an increase in HDPE consumption in the EAEU market (for the period from 2016 to 2019 by 18.1%, in 2019 compared to 2018 by 5.4%), there was a significant increase in the volume of HDPE imports from Uzbekistan for the period from 2016 to 2019 by 4.5 times, and in 2019 compared to 2018 by 21.9%, the rate of which significantly exceeded the growth rate of HDPE consumption in Russia.

The production of HDPE in Uzbekistan is carried out by the Uz-Kor Gas Chemial JV (Ustyurt Gas Chemical Complex, UGCC), which produces HDPE under a license from LOTTE Chemical (Korea) and the Shurtan Gas Chemical Complex (ShGKhK, SGCC).

According to the ICIS-MRC Price Report, Uz-Kor Gas Chemical has resumed its HDPE production facilities from 4 October after a planned shutdown for repairs. The preventive downtime was short and started on 4 September. At the same time, during October the enterprise will operate with reduced capacity utilization. The annual capacity is 386,000 tonnes.

Uz-Kor Gas Chemical was commissioned in 2016 and has production capacity for the production of ethylene 400 thousand tons per year, HDPE 387 thousand tons per year, propylene and polypropylene (PP) 83 thousand tons per year. Shurtan GCC has a production capacity for the production of HDPE and LLDPE in the amount of 125 thousand tons per year.
MRC

MOSCOW (MRC) -- Volgograd Kaustik, Russia's fourth largest polyvinyl chloride (PVC) producer, has resumed its production after the shutdown for a scheduled turnaround, according to ICIS-MRC Price report.

A plant's representative said the output of PVC began on 12 October after the scheduled maintenance works were finished. The outage was not long and lasted for 21 days. The plant's annual production capacity is 90,000 tonnes.

It is also worth noting that this is the last shutdown for a scheduled maintenance at Russian PVC plants in 2021. SayanskKhimPlast and Bashkir Soda Company shut their production capacities in June-July. RusVinyl does not plan to carry out maintenance works this year.

The holding company includes: JSC Kaustik is the principal plant of the group, manufactures basic products - caustic soda, chloroparaffins, synthetic hydrochloric acid, chlorine trademark, polyvinyl chloride, sodium hypochlorite, etc .; CJSC NikoMag - production of anti-icing materials, magnesium chloride, magnesium oxide and hydroxide; Zirax, Ltd. - production of high-purity reagents for various industries and JSC Poligran - the production of plastic compounds and rigid PVC compounds.
MRC

MOSCOW (MRC) -- Kazanorgsintez (part of TAIF Group) has completely resumed operations at its polyethylene (PE) production capacities after a scheduled turnaround, according to ICIS-MRC Price report.

The plant's customers said Kazanorgsintez had completely brought on-stream its low density polyethylene (LDPE) and high density polyethylene (HDPE) production capacities after the annual scheduled maintenance by 11 October. The outage was long and started on 14 September.

It is also worth noting that the last shutdown for repairs at Russian plants this year is planned for Stavrolen. The Budennovsk producer intends to shut down its HDPE production for a 36-day maintenance on 12 October. The plant's annual production capacity is 300,000 tonnes.

PJSC "Kazanorgsintez" (part of TAIF Group) is one of Russia's largest plants. Kazanorgsintez produces 40% of overall Russian polyethylene (PE) and is the country's largest exporter. To date, the plant produces PE, polycarbonate (PC), PE pipes, phenol, acetone, bisphenol A. Kazanorgsintez is Russia's only PC producer. It manufactures a total of 170 items of products. Kazanorgsintez's annual output is 1.6 million tonnes. The plant is Russia's largest producer of high density polyethylene (HDPE). The plant's annual HDPE production capacity is 540,000 tonnes and its annual LDPE capacity is 225,000 tonnes.
MRC

1. OMV raises its refinery utilisation by 6% in Q3 on downstream recovery

MOSCOW (MRC) -- Austrian oil and gas group OMV saw its indicative refining margins double and raised its refinery utilisation by 6% to 91% in the third quarter, as upstream production volumes weakened compared with the second quarter, reported S&P Global with reference to the company's statement on Oct. 8. In a trading statement, the Central European company put its European refining margin indicator for the quarter at USD4.43/b compared with USD2.21/b in the second quarter and just 87 cents/b in the third quarter of 2020. Its sales of fuel and other oil products were up 16% on the quarter at 4.66 million mt. The company's upstream production, of both liquids and gas, fell back slightly compared with the second quarter, to 198,000 b/d of oil equivalent and 272,000 boe/d respectively. Its gas production, a significant portion derived from Russia, was also down 3% on the year, however, its oil output was up 20% compared with a year earlier.


MRC

MOSCOW (MRC) -- Crude oil futures were lower in mid-morning trade in Asia Oct. 13 as investors awaited the release of weekly US stocks data for fresh pricing cues, reported S&P Global.

At 10:30 am Singapore time (0230 GMT), the ICE December Brent futures contract was down 61 cents/b (0.73%) from the previous close at USD82.81/b, while the NYMEX November light sweet crude contract was 58 cents/b (0.72%) lower at USD80.06/b.

The pause in the recent sustained rally could prompt profit taking, but that may also prompt buying on the dips by market participants anticipating more upside to emerge in the coming week.

Investors are awaiting the release of weekly US stocks data by the American Petroleum Institute later Oct. 13 and more definitive numbers by the US Energy Information Administration the following day for fresh pricing cues.

Analysts polled Oct. 11 by S&P Global were expecting the data to show a 500,000-barrel draw in US crude stocks to 420.4 million barrels for the week ended Oct. 8, which would run counter to seasonal trends; US inventories typically build as refinery runs slow with the onset of shoulder season maintenance.

ANZ research analysts in a note said that crude oil prices have ebbed and flowed as investors debate the impact of energy shortages in Asia and Europe, but there were growing expectations that high prices for gas and thermal coal were likely to boost demand for alternatives such as diesel and fuel oil.

Supply outlooks also remain constrained by the high gas and coal prices that raise the prospect of more switching to oil for power generation.

ANZ analysts referenced TotalEnergies CEO Patrick Pouyanne as saying that demand for fuel oil was soaring in parts of Asia as buyers turn away from gas, and also the IMF cautioning that threats to growth have increased amid rising costs for food and fuel.

As MRC informed before, US commercial crude stocks fell 3.48 million barrels to 413.96 million barrels in the week ended Sept. 17, to more than 8% below the five-year average, Energy Information Administration data showed. Stocks were last lower Oct. 5, 2018.

We remind that 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 also 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