Biaxplen summed up the results of the year

MOSCOW (MRC) - Biaxplen (part of SIBUR Holding) discussed the results of the year with clients, the company said in a statement.

During the meeting, the following topics were discussed: the state of the BOPP market in 2021 and the forecast of its development in 2022, the current state and future of customer service, the results of a customer satisfaction survey, changes in the company's trade policy and logistics, innovations in packaging, and much more. The meeting was attended by representatives of more than 30 companies of Biaxplen's clients and partners from Russia and the CIS countries.

The first part of the round table was devoted to changes in the polymer market and the forecast of its development. Georgy Martirosyan, Senior Marketing Manager of the Basic Polymers Directorate of SIBUR, in his speech described the change in the situation on the Russian FMCG product sales market over the past 3 years: a 4-fold increase in the share of discounters, a simplification of assortment and structures in flexible packaging, an increase in e-com sales in 2 times under the influence of a pandemic.

The main trends that will affect the packaging industry in the coming years are the demand for packaged products, a decrease in the costs of manufacturing packaging and supplying goods, the popularity of reusable packaging solutions, lighter portion packaging, the rapid growth of on-line trade and delivery, the preference for recyclable and recycled packaging solutions, increasing consumption of flexible packaging in the world.

Earlier it was reported that Biaxplen upgraded the extrusion lines produced by the German Bruckner, designed for the production of biaxially oriented films (BOPP films).

Earlier it was reported that in July Biaxplen developed a metallized film of the HBV.M brand, which has high barrier properties. The new brand will be produced at the Kursk plant Biaxplena. The production capacity will be 500 tons per year. The production launch of the film is scheduled for the second half of 2021.

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.

All five Biaxplen factories are certified according to the quality management system ISO 9001. The group's total BOPP film production capacity is over 160 thousand tons per year. The company is actively developing export supplies of films to the EU market.

Biaxplen is a subsidiary of the SIBUR petrochemical holding, the leader of BOPP in Russia. Production capacity - 180 thousand tons per year, 8 high-speed lines. Brand assortment - over 40 types. Production sites are located in five regions. The products are exported to 27 countries.
MRC

MOSCOW (MRC) -- Polypropylene (PP) imports into Russia rose in the first eleven month of 2021 by 12% year on year to 227,600 tonnes. Propylene copolymers accounted for the main increase in imports, according to MRC's DataScope report.

Russian companies reduced their PP purchases last month, imports were 17,500 tonnes versus 22,000 tonnes in October, imports of all grades of propylene polymers decreased. Thus, overall PP imports into Russia reached 227,600 tonnes in January-November 2021, compared to 202,700 tonnes a year earlier. Procurement of all grades of propylene copolymers in foreign markets increased, whereas imports of propylene homopolymers (homopolymer PP) decreased.

The overall structure of PP imports by grades looked the following way over the stated period.

November imports of homopolymer PP were slightly less than 6,000 tonnes versus 8,500 tonnes a month earlier, shipments from Azerbaijan and Turkmenistan fell significantly. Thus, overall imports of homopolymer PP totalled 83,400 tonnes in the first eleven months of 2021, compared to 85,400 tonnes a year earlier.

Last month's imports of propylene block-copolymers (PP block copolymers) were 6,400 tonnes versus 7,200 tonnes in October, demand for Asian PP subsided from Russian companies. Imports of PP block copolymers into Russia reached 69,800 tonnes over the stated period, compared to 53,800 tonnes a year earlier.

November imports of stat-copolymers of propylene (PP random copolymers) dropped to 1,800 tonnes from 3,100 tonnes a month earlier, with injection moulding and pipe grade products manufactures accounting for the main reduction in shipments. Overall imports of this grade of propylene copolymers were 37,200 tonnes in January-November 2021, compared to 33,200 tonnes a year earlier.

Imports of other propylene polymers totalled 37,100 tonnes over the stated period versus 30,300 tonnes a year earlier.

MRC

MOSCOW (MRC) -- Imports of polyethylene (PE) into Russia fell by 7% year on year to 544,600 tonnes in January-November 2021. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) accounted for the greatest decrease in imports, according to MRC's DataScope report.

November PE imports reached 57,800 tonnes versus 44,100 tonnes a month earlier, shipments of all grades of ethylene polymers increased. Overall PE imports totalled 544,600 tonnes in the first eleven months of 2021, compared to 586,300 tonnes a year earlier. HDPE and LLDPE accounted for the main reduction in imports, whereas shipments of ethylene copolymers and low density polyethylene (LDPE) increased.

The structure of PE imports by grades looked the following way over the stated period.

November HDPE imports rose to 24,800 tonnes from 18,400 tonnes a month earlier, PE shipments from Uzbekistan and South Korea increased. Overall imports of this PE grade totalled 202,700 tonnes in January-November 2021, down by 15% year on year. Film grade and blow moulding HDPE accounted for the main reduction in shipments.

Last month's LDPE imports exceeded 10,600 tonnes, whereas this figure was at 7,600 tonnes in October. Shipments from Belarus and Germany grew. Overall LDPE imports to Russia reached 109,700 tonnes in the first eleven months of 2021, up by 7% year on year.

November LLDPE imports reached 13,400 tonnes, compared to 9,900 tonnes a month earlier, purchases of film grade PE in South Korea decreased. Overall LLDPE imports totalled 135,000 tonnes in January-November 2021, down by 14% year on year.

Last month's imports of other ethylene polymers, including ethylene-vinyl-acetate (EVA), were 8,900 tonnes, compared to 8,200 tonnes in October. Overall imports of other ethylene polymers reached 97,200 tonnes over the stated period versus 89,500 tonnes a year earlier.

MRC

1. Crude oil prices mixed, US crude futures down after COVID-19 flight cancellations

MOSCOW (MRC) -- Oil prices were mixed on Monday, with Brent edging up while US crude futures slipped after airlines called off thousands of flights in the US over Christmas holidays amid surging COVID-19 infections, reported Hydrocarbonprocessing. US West Texas Intermediate crude futures fell 41 cents, or 0.6%, to USD73.38 a bbl by 0053 GMT. The contract did not trade on Friday because U.S. markets were closed for the Christmas holiday. Brent crude rose 40 cents, or 0.5%, to USD76.54 a bbl after settling down 0.92% on Friday. Both contracts jumped 3% to 4% last week after early data suggested that the Omicron variant of COVID-19 may cause a milder level of illness.


MRC

MOSCOW (MRC) -- Asia's cash premiums for jet fuel slipped to their lowest in more than three weeks on Friday, posting a weekly drop, as airlines continue to struggle with weak capacity amid Omicron-led travel restrictions, reported Reuters.

Cash premiums for jet fuel dropped to 28 cents per bbl to Singapore quotes on Friday, the lowest since Nov. 29. The differentials have shed nearly 63% this week.

"Jet fuel demand this year has been largely undermined by travel restrictions. Even with the re-opening of borders across several Asian countries in recent months, international air travels are still limited, and jet fuel demand recovery has been relatively weak," said Serena Huang, Asia lead analyst at Vortexa.

Asia's jet fuel refining margins are on track to double by end-2021 from the previous year, but traders and analysts say it would likely take until the middle of this decade for aviation demand to return to pre-COVID levels.

Just as vaccinations and re-opening of national borders raised hopes for a pick-up in air travel, the highly contagious COVID-19 Omicron variant emerged last month, prompting governments to impose lockdowns and travel curbs again.

The refining margins, also known as cracks, for jet fuel dipped to USD11.05 per bbl over Dubai crude during Asian trading hours, 34 cents lower from a day earlier.

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, EIA said in a monthly report earlier this year, a smaller decline than its previous forecast for a drop of 210,000 bpd.
MRC