Milliken acquires Encapsys LLC

MOSCOW (MRC) -- Milliken has acquired microencapsulation firm Encapsys from the Cypress Performance Group, the US specialty chemicals company announced in its press-release.

Encapsys makes technology to produce a polymeric shell around a core material at micron level to create capsules, used in applications across industries to improve sustainability of active materials.

Wisconsin-based Encapsys will be integrated into Milliken without interrupting services, including relationships with existing suppliers and customers.

“Encapsys brings a unique combination of innovation, science and technology to the Milliken team,” adds Cindy Boiter, executive vice president and president of Milliken’s Chemical Business. “Enhancing our portfolio of specialty chemicals with global reach, this acquisition will accelerate sustainable solutions for the markets and customers we serve.”

As Encapsys integrates into Milliken, daily operations will continue without interruption, including relationships with existing suppliers and customers. Headquartered in Appleton, Wis., Encapsys is a leader in microencapsulation technologies, which put a uniform polymeric shell around a core material at the micron level to create capsules. Microencapsulation has applications across industries and helps companies achieve more sustainable products by advancing responsible consumption and efficient delivery of active materials.

We also remind that at Hispack 2018 trade fair in Spain, Milliken Chemical showcased containers of NX UltraClear polypropylene (PP) made using its Millad NX 8000 clarifier, and highlighted why that material is the preferred solution for packaging.

According to MRC's ScanPlast report, 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.

Milliken is an innovation company that has been exploring, discovering, and creating ways to enhance people’s lives since 1865. The company creates coatings, specialty chemicals, and advanced additive and colorant technologies that transform the way we experience products from automotive plastics to children's art supplies.
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1. Asia Distillates-Jet margins drop but still near multi-month highs

MOSCOW (MRC) -- Asia's jet fuel refining margins slipped to USD13.42 a barrel on Friday, but were just 8 cents shy of a near two-year high reached in the previous week, reported Reuters with reference to Refinitiv data in Eikon. This came as oil prices hit a fresh three-year high on Friday, climbing above USD85 a barrel on forecasts of a supply deficit over the next few months as rocketing gas and coal prices stoke a switch to oil products. Asian refining margins for jet fuel have climbed in October to their highest levels since January 2020 as air travel demand recovers in Asia, according to analysts and Refinitiv data. Asia-Pacific nations, home to some of the world's strictest pandemic-related travel rules, are gradually easing border restrictions resulting in a surge in flight bookings and travel enquiries.



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MOSCOW (MRC) -- Crude oil futures retreated further from multi-year highs in mid-morning trade in Asia Oct. 19 after a mixed overnight session, with sentiment bruised by a slew of reports suggesting that the global economic recovery was slowing down, reported S&P Global.

At 10:30 am Singapore time (0230 GMT), the ICE December Brent futures contract was down 4 cents/b (0.05%) from the previous close at USD84.29/b, while the NYMEX November light sweet crude contract fell 5 cents/b (0.06%) at USD82.39/b.

Investor confidence took a hit overnight after data showed US industrial production fell by 1.3% on the month in September, much weaker than the expected 0.1% rise. In addition, China's economy grew by a relatively paltry 4.9% in the third quarter from a year earlier, down from a 7.9% growth in the second quarter.

The weak economic data contributed to both contracts pulling back overnight from multi-year highs to end the day mixed. The front-month ICE Brent contract settled lower by 53 cents/b from a three-year high reached earlier in the session, while the front-month NYMEX crude contract settled up 16 cents/b, retreating from a seven-year high intra-day.

"The US industrial/manufacturing slowdown in September was a lot greater than anyone anticipated. Higher commodity prices, prolonged shutdowns in activity due to hurricane season, and the global chip shortage are having a greater impact on the economy," said OANDA Senior Market Analyst Edward Moya.

"This weakness has continued in early morning trading today. A fall in US industrial production in September would have not helped sentiment, along with weaker GDP numbers from China," said ING analysts Warren Patterson and Wenyu Yao in a note.

While most analysts believe the near-term outlook for crude prices remains bullish, there are signs US production is beginning to ramp up as producers respond to the quick run-up in prices over 2021.

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.
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MOSCOW (MRC) -- India's Nayara Energy hopes to operate its 400,000 barrels per day (bpd) refinery in western India at close to 100% capacity in 2021 as fuel demand is picking up, according to Hydrocarbonprocessing with reference to Chief Executive Alois Virag's statement at APPEC 2021 conference.

Nayara, part owned by Russian oil major Rosneft, cut rates at its Vadinar refinery in Gujarat state last year.

India's fuel demand is likely to rise by 9%-11% as the economy in India is "steered towards higher growth" after the easing of the second wave of COVID-19, he said.

As MRC reported earlier, PKN Orlen (Plock, Poland), the country’s largest petrochemicals producer, will receive 3.6 million tons of crude oil per year from Russia’s Rosneft under a new two-year supply contract signed in March, 2021. Rosneft suspended oil deliveries to Poland in February after failing to agree on new contract terms with PKN Orlen when the previous agreement expired on January 31. The previous deal had envisaged deliveries of 5.4 million to 6.6 million tons a year.

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.
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MOSCOW (MRC) -- Hanwha General Chemicals, the chemical affiliate of Hanwha Group, has recently announced a new company name, “Hanwha Impact,” as it seeks to shift its identity to focus on future-oriented, green business fields, according to The Korea Herald.

The new name reflects its new vision to “create a positive impact on humanity and the earth through technological innovations,” explained the company.

To execute the vision, Hanwha Impact will increase what it called “impact investing,” investing in companies that try to make a positive impact on the society and environment.

Hanwha is looking into hydrogen-fueled vehicles, next-generation data storage technologies for sustainable infrastructure and bio-related IT projects that help improve human health, among others, it added.

Established in 1974, then as a Samsung Group company, Hanwha General Chemical was the first company in South Korea to localize production of purified terephthalic acid, or PTA, a primary component for many types of polyester.

Aiming to transform into a green energy firm, with a particular focus on hydrogen, the firm has recently acquired two firms - Power Systems Manufacturing in the United States and Thomassen Energy in the Netherlands - which holds hydrogen-based energy conversion solutions, considered more environmentally benign than traditional energy systems.

Hanwha Impact was among the four former Samsung Group companies acquired by Hanwha Group in the 2015 mega deal, worth nearly 2 trillion won (USD1.73 billion). Hanwha Group acquired 24.1% of Hanwha Impact’s remaining shares for 1 trillion won in June this year.

As MRC reported earlier, in July 2020, Lotte Chemical and Hanwha General Chemical entered into an agreement, in which Hanwha will supply 450,000 t/y of PTA to Lotte, effective July. In order to meet its supply obligation, Hanwha restarted PTA production at its No. 2 plant in Ulsan, S. Korea, which had been idle. Hanwha owns Korea's "largest" PTA facility with a capacity of 2-million t/y, Lotte noted.

PTA is used to produce polyethylene terephthalate (PET), which is used in the manufacturing of plastic bottles, films, packaging containers, in the textile and food industries.

According to MRC's ScanPlast report, the total estimated PET consumption in Russia reached 65,350 tonnes in August, 2021,, up by 19% year on year. Russia's overall estimated PET consumption increased in the first eight months of 2021 by 12% year on year to 535,610 tonnes.
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