Crude oil imports to rebound in November in Asia

Crude oil imports to rebound in November in Asia

MOSCOW (MRC) -- Asia's imports of crude oil are likely to have rebounded in November to the highest this year amid pre-winter buying by top consumers and despite widespread disquiet among buying countries over high prices, said Hydrocarbonprocessing.

Imports by the world's top-consuming region are estimated at 26.35 MMbpd for November by Refinitiv Oil Research, up strongly from October's 22.55 MMbpd. For most of the year Asia's imports of crude have lagged the prevailing global narrative of a recovery in demand and tight market supply, with these factors applying more to North America and Europe.

However, there are some factors at play that call into question whether China's resurgent November imports are a flash in the pan or the start of a renewed uptrend. Imports are likely to have been boosted by the government granting new quotas to some independent refiners, which had to be used by the end of the year.

This led to a flood of buying from the these refiners, especially of Russian ESPO crude, which saw spot premiums for the grade rise to their highest since January 2020. The premium of ESPO over Dubai crude reached $6.35 a bbl on Nov. 16, having climbed from a recent low of USD1.90 on Aug. 17.

However, it has subsequently dropped back to around $4.10 a bbl amid subdued interest from Chinese independents for January-loading cargoes. Another factor that may affect China's imports in the first quarter of next year is the potential for more oil to be sold from the Strategic Petroleum Reserve (SPR).

Beijing has so far been coy about its plans to join the U.S.-led release of crude stockpiles, saying on Wednesday that it was working on its own release according to its own needs. By not making a firm commitment to release crude from its SPR, China creates uncertainty in the market over its future import needs, although it's likely that Beijing will take some action as the messaging has been clear that the authorities believe oil prices are too high.

As per MRC, South Korea's crude oil imports in October rose 1.9% from a year earlier, reflecting the country's rising refinery run rates as Seoul rapidly eases COVID-19 restrictions, while major refiners plan to actively purchase spot cargoes from non-OPEC producers amid tight Middle Eastern supply. The world's fifth-biggest crude importer received 11.419 million mt, or 83.7 million barrels, of crude oil last month, compared with 82.14 million barrels imported a year earlier, data from the Korea Customs Service showed. The October imports were also up 6.4% from 78.63 million barrels received in September.

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 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.
MRC

BASF bundles renewable energy activities in new subsidiary in Europe

BASF bundles renewable energy activities in new subsidiary in Europe

MOSCOW (MRC) -- BASF is bundling its activities in renewable energies under the umbrella of BASF Renewable Energy GmbH as of January 1, 2022, according to Hydrocarbonprocessing.

The wholly owned subsidiary’s business activities will focus on supplying the BASF Group in Europe with electricity from renewable energies, electricity trading activities in Europe and global consulting for BASF and its Group companies in the field of renewable energies. The company is based in Ludwigshafen and will be managed by Horatio Evers, who was previously responsible for the development of renewable energies at BASF SE.

BASF expects that by gradually replacing electricity from fossil generation, from own production as well as purchase agreements, and scaling innovative, climate-friendly technologies to an industrial scale, its electricity consumption in Europe will increase from the current level of around 9 terawatt hours of electricity from fossil generation annually to the point where at least three to four times as much electricity from renewable sources will be needed to reach the net zero goal.

BASF Renewable Energy GmbH is tasked with supplying the European sites with these additional volumes in line with demand. To this end, it will initiate new additional projects to generate renewable energy from own production together with partners and conclude long-term supply agreements with energy producers, known as Power Purchase Agreements (PPAs).

Projects already underway to generate electricity from renewable energy sources include the participation in the Hollandse Kust Zuid wind farm with Vattenfall, as well as the wind farm planned with RWE in the German North Sea. Other major projects for the generation of electricity from renewable sources in Europe are under review or have already been initiated. In addition, BASF has recently signed a first long-term PPA for the supply of offshore wind in Europe with Orsted. Dr. Roland Merger continues to manage the wind farm projects with partners.

“As the leading company in the chemical industry, we are already one of the largest industrial electricity consumers in Europe. Due to the conversion to renewable energy as well as the launch of new, low-emission production processes based on electricity, our demand will increase significantly in the future,” said Horatio Evers, Managing Director of BASF Renewable Energy. “The reliable and efficient supply to BASF with sufficient quantities of electricity from renewable sources at competitive prices is necessary for the implementation of our goals and the achievement of the targeted climate neutrality. We are committed to a make-and-buy strategy in this regard.”

BASF has set a target to reduce its greenhouse gas emissions by 25% by 2030 compared with 2018 and to achieve net zero emissions by 2050.

As MRC reported earlier, BASF is strengthening its global catalyst development and helping customers to bring new products faster to the market. As part of this strategy, BASF is building a new pilot plant center at its Ludwigshafen site. The new Catalyst Development and Solids Processing Center will serve as a global hub for pilot-scale production and process innovations of chemical catalysts. The new building is scheduled for completion by mid-2024.

We remind that BASF aims is to electrify its production processes for basic chemicals, which are currently based on fossil fuels.

We also remind that in mid-February, BASF said it was restarting one of its steam crackers at its Ludwigshafen complex in Germany after operations were halted earlier that month due to a technical issue. The naphtha cracker produces ethylene and propylene, and is one of two crackers on the site. One has a production capacity of 420,000 metric tons/year, with the other"s capacity at 240,000 metric tons/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 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in the first nine months of 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
MRC

Borouge announces new PP and PE grades

Borouge announces new PP and PE grades

MOSCOW (MRC) -- One of this year's ArabPlast highlights was Borouge's announcement of seven new polypropylene (PP) and polyethylene (PE) grades added to its product mix, said the company.

These grades, six of which are targeted at packaging applications and one at infrastructure applications, are in line with the company's goal to support sustainability in the petrochemicals industry.

Borouge's senior vice president for Middle East, Africa, and export Khalfan Al Muhairi said in a statement: "We are excited to launch our innovative and newly developed polyolefin solutions that provide our customers in the packaging and infrastructure sectors with unique benefits to improve their production of better end-use products, enhance cost effectiveness, support their sustainability goals and unlock new opportunities and markets for them"

Borouge has previously signed several memorandums of understanding (MoU) with recycling companies, and is currently studying the integration of a carbon capture unit to their 2025 "Borouge 4" PE plant.

These high-performance, cost-efficient polyolefin grades, come at a time during which GCC oil and petrochemicals industries are focusing on cleaner, more sustainable production and circular economy integration.

As per MRC, Borouge, a joint venture between Borealis and Abu Dhabi National Oil company, plans to complete the construction of a fifth polypropylene (PP5) plant in Ruweis in 2021. The PP5 plant is under construction and will begin operations in mid-2021. This plant with a capacity of 450,000 tonnes of PP per year will be fully commissioned in 2022.

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 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.
MRC

Covestro will showcase innovative material solutions in Germany

Covestro will showcase innovative material solutions in Germany

MOSCOW (MRC) -- Covestro will showcase innovative material solutions for more sustainable future mobility at the combined trade show The Battery Show Europe and Electric & Hybrid Vehicle Technology Expo from November 30th to December 2nd, 2021 in Stuttgart, Germany, said the company.

The company is fully oriented towards the circular economy, focusing on an increased use of alternative raw materials and renewable energy as well as the development of innovative recycling technologies.

Demand for high-performance batteries is expected to grow rapidly in the coming years. Covestro brings extensive plastics processing expertise to the table and will showcase a battery module it has developed in-house at the show, allowing it to test its own materials. The company also performs CAE component simulations and provides support to customers with moldflow analyses and injection molding upon request.

The number of electric vehicles and plug-in hybrids is growing significantly, and with it the need for charging stations. There is a wide range of charging equipment on offer, from fixtures in parking lots to wall-mounted charging points in private homes.

Charging stations require materials that meet a number of often very specific requirements. They have to withstand all types of weather and also withstand attacks of vandalism well. Added to this are the wishes of the operators of charging stations, for example manufacturing by means of mass production as well as high functionality, lightness, toughness and good electrical insulation of the materials. And last but not least, they must be easy to shape in order to offer as much design freedom as possible.

Polycarbonates from the Makrolon® range and polycarbonate blends from the Bayblend® series meet all these requirements. Together with the mass-balanced products of the Makrolon® RE series, they play their part in further reducing the carbon footprint of this more sustainable form of propulsion.

We remind that Covestro closed the sale of its European polycarbonates (PC) sheets business to the Munich-based Serafin Group effective January 2, 2020. This includes key management and sales functions throughout Europe as well as production sites in Belgium and Italy.

As per MRC ScanPlast, the overall estimated consumption of polycarbonate (PC) granules (excluding imports and exports to/from Belarus) dropped in the first three quarters of 2021 by 15% year on year to 63,700 tonnes (75,300 tonnes a year earlier). And although in the extrusion grade sector, the market decreased by 21% year on year with consumption of 52,100 tonnes (65,600 tonnes a year earlier), it increased in the injection moulding sector by 43% year on year to 10,300 tonnes (7,200 tonnes a year earlier).

Covestro (formerly Bayer MaterialScience) is an independent subgroup within Bayer. It was created as part of the restructuring of Bayer AG from the former business group Bayer Polymers, with certain of its activities being spun off to Lanxess AG. Covestro manufactures and develops materials such as coatings, adhesives and sealants, polycarbonates (CDs, DVDs), polyurethanes (automotive seating, insulation for refrigerating appliances) etc. With 2020 sales of EUR 10.7 billion, Covestro has 33 production sites worldwide and employs approximately 16,500 people (calculated as full-time equivalents).
MRC

COVID-19 - News digest as of 25.11.2021

1. October crude imports to South Korea rise by 2%

MOSCOW (MRC) -- South Korea's crude oil imports in October rose 1.9% from a year earlier, reflecting the country's rising refinery run rates as Seoul rapidly eases COVID-19 restrictions, while major refiners plan to actively purchase spot cargoes from non-OPEC producers amid tight Middle Eastern supply, reported S&P Global. The world's fifth-biggest crude importer received 11.419 million mt, or 83.7 million barrels, of crude oil last month, compared with 82.14 million barrels imported a year earlier, data from the Korea Customs Service showed. The October imports were also up 6.4% from 78.63 million barrels received in September.


MRC