IMF lowered its forecast for Russia GDP growth in 2022 to 2.8%

MOSCOW (MRC) -- The International Monetary Fund (IMF) continued to lower its estimate for Russian economic growth in 2022 to 2.8% from expected 2.9% in October, 3.1% - in July and 3.8%, which it estimated growth in April last year, reported Interfax.

In 2023, as the IMF expects, the growth of the Russian economy will be 2.1% (previously - 2%).

The fund explains the slight decrease in the forecast for Russia this year by a weak harvest and the passage of the third wave worse than expected.

The assessment of this year's global economic growth was reduced somewhat more significantly - from 4.9% to 4.4%. Such a forecast is given in the World Economic Outlook Update, published by the IMF on Tuesday. The forecast for 2023 increased by 0.2 p.p. - up to 3.8%.

The report notes that the global economy enters 2022 in a weaker position than previously expected. As the Omicron variant of COVID-19 spread, countries reintroduced restrictions on movement. Rising energy prices and supply disruptions led to higher-than-expected inflation, especially, in the US and many emerging and developing economies. However, the fund notes that the forecast is based on a reduction in adverse health effects to low levels in most countries by the end of 2022, assuming vaccination rates improve worldwide and treatments become more effective.

The fund's forecast for the growth of the Russian economy in 2022 is slightly lower than the Ministry of Economic Development's estimate for this year - 3% and is in the range of the Bank of Russia - 2.0-3.0%.

As reported earlier Russia's GDP growth in 2022 will slow to 2.4% and in 2023 - to 1.8%, according to the World Bank (WB) report "World Economic Outlook", published in January.
MRC

BPCL starts up superabsorbent polymer demonstration plant at its Kochi refinery

BPCL starts up superabsorbent polymer demonstration plant at its Kochi refinery

MOSCOW (MRC) -- Bharat Petroleum Corporation Ltd (BPCL) has set up a superabsorbent polymer (SAP) technology demonstration plant of 200 tonnes per annum at the Kochi Refinery, according to Kemicalinfo.

The plant was inaugurated by BPCL’s executive director in-charge (refineries) Sanjay Khanna, in the presence of other officials.

Using the in-house acrylic acid as feedstock, SAP technology is used in various hygiene products such as diapers and other incontinence products. The technology was developed by the R&D wing of BPCL for production of hygiene-grade SAP, officials said.

The polymerisation reactor and the drying units were shifted from BPCL’s Corporate Research & Development Centre at Noida. Other units like feed preparation unit, milling, coating and packing units were indigenously engineered and procured by the project team. The project was completed in just seven months.

SAP is a polymer that can absorb and retain extremely large amounts of a liquid relative to its own mass. Therefore, superabsorbent polymer is one of the key components in sanitary napkins, baby diapers, under-pads and adult diapers.

As MRC reported earlier, BPCL said in May, 2021, it can buy up to 2 million tons of crude oil from Iran if sanctions are lifted and terms are attractive.

We remind that in April, 2020, BPCL shipped the first consignment of acrylic acid from its Propylene Derivative Petrochemical (PDP) complex at Kochi Refinery. Acrylic Acid is one of the six niche petrochemical products produced in the new PDP Complex at Kochi Refinery.

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 2,265,290 tonnes in the first eleven months of 2021, up by 14% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.
MRC

Curacao expects to receive final proposals in leasing oil refinery by late February

Curacao expects to receive final proposals in leasing oil refinery by late February

MOSCOW (MRC) -- Curacao expects to receive final proposals from companies interested in leasing its 330,000 bpd oil refinery by the end of February, the latest attempt to restart the plant after Venezuela's PDVSA ceased operations there in 2018, reported Reuters.

A committee to find a company interested in operating the Caribbean facility late last year selected a short list of firms willing to move ahead with a proposal, Curacao's state-run Refineria di Korsou (RdK) said in a press release on Friday.

"These companies are currently conducting evaluations... Site visits at the refinery and the (neighboring) terminal located at Bullenbaai should also be expected to take place during the upcoming weeks," the statement said.

RdK did not disclose the names of companies interested.

In May 2021, the refinery said it had reached an agreement with CORC B.V. to operate the plant and the oil terminal, but the pact fell apart amid negotiations on fiscal terms.

Prior deals with industrial conglomerate Klesch Group and oil firm SPS Drilling E&P to operate the refinery and lease a portion of the 15-MM-bbl terminal respectively were also terminated over disagreements about terms and fees.

A payment dispute between PDVSA and US oil producer ConocoPhillips led to the plant being idled in 2018, and the Venezuelan company's long-term lease expired at the end of 2019. Attempts to resume operations have failed since.

As MRC wrote previously, Venezuelan petrochemicals produced by joint ventures between state-run chemical firm Pequiven and foreign partners arrived in the United States in November, 2021, despite Washington's efforts to limit trade with the OPEC oil and gas producer. At least two cargoes of methanol, a widely used industrial product whose prices have soared this year, have discharged at Houston area ports since October amid a rapid expansion of the South American country's global sales of petrochemicals and oil byproducts, according to tanker tracking and US customs data.

From January to October, 2021, PDVSA and Pequiven exported about 1.75 MM tons of petrochemicals and byproducts, putting the trade on track this year to double the 1.03 MM tons exported for the whole of 2020, according to the internal data.

According to MR''s ScanPlast report, Russia's estimated PE consumption totalled 2,265,290 tonnes in the first eleven months of 2021, up by 14% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.
MRC

PPG Industries unveiles increase in Q4 Iicome

PPG Industries unveiles increase in Q4 Iicome

MOSCOW (MRC) -- PPG Industries Inc. (PPG) revealed a profit for its fourth quarter that increased from the same period last year, according to the company's statement.

The company's bottom line totaled USD286 million, or USD1.20 per share. This compares with USD272 million, or USD1.14 per share, in last year's fourth quarter.

Excluding items, PPG Industries Inc. reported adjusted earnings of USD298 million or USD1.26 per share for the period.

The company's revenue for the quarter rose 11.4% to USD4.19 billion from USD3.76 billion last year.

PPG Industries Inc. earnings at a glance (GAAP): Earnings (Q4): USD286 Mln. vs. USD272 Mln. last year. -EPS (Q4): USD1.20 vs. USD1.14 last year. -Revenue (Q4): USD4.19 Bln vs. USD3.76 Bln last year.

As MRC reported earlier, in June 2021, PPG announced an expansion of its coatings manufacturing capacity in Europe for packaging applications. The investments at sites in The Netherlands and Poland will support growing customer demand in the region for the latest generation of coatings for aluminum and steel cans used in packaging for beverage, food and personal care items. The projects include a further expansion of the company’s location in Tiel, The Netherlands, which will increase the plant’s production capacity for PPG INNOVEL non-BPA internal coatings for beverage cans by 30%. Expected to be completed in the first quarter of 2022, the project follows a 50% expansion completed at the end of 2020.

BPA is the main feedstock for the production of polycarbonate (PC).

According to MRC's ScanPlast report, Russia's estimated consumption of PC granules (excluding imports and exports to/from Belarus) decreased in the first eleven months of 2021 by 11% year on year due to a major fall of imports and higher exports. Thus, overall estimated consumption totalled 74,300 tonnes in January-November 2021 versus 83,600 tonnes a year earlier.

PPG Industries Inc. is an international American company manufacturing paints and varnishes, chemicals, optical components, specialty materials, glass and fiberglass. The company includes over 150 production units and representative offices in more than 60 countries around the world. PPG is one of the 500 largest US corporations by sales.
MRC

Tank Holding acquires rotomolder Dutchland Plastics

Tank Holding acquires rotomolder Dutchland Plastics

MOSCOW (MRC) -- Tank Holding, said to be North America’s largest rotational molder, has acquired Wisconsin-based rotomolder Dutchland Plastics LLC for an undisclosed amount, said Canplastics.

Dutchland makes high-volume rotationally molded products including kayaks, coolers, playground equipment, and furniture at manufacturing sites in Oostburg, Wis., and Canastota, N.Y.

"Dutchland brings significant volume and capacity to our rotational molding platform,” Tank CEO Greg Wade said. “They have valuable long-term customer relationships and strengthens an important part of Tank Holding’s overall growth strategy."

Wade also noted that Dutchland’s two plants “complement the locations of our other facilities, which provides customers more options to optimize capability, capacity, and logistics." The Dutchland purchase is Tank’s sixth in the past year.

As per MRC, Tank Holding, the parent company of intermediate bulk container (IBC) manufacturer Snyder Industries, has acquired the IBC manufacturing assets from material handling container provider Hoover Ferguson.

We remind, private equity firm Olympus Partners has acquired Tank Holding Corp., said to be the largest rotational molder in North America. The terms of the deal have not been disclosed.

Tank, which includes the brands of Norwesco, Snyder Industries, Bonar Plastics, Bushman, Chem-tainer, Meese, Stratis Pallets, and Dura-Cast, is owned by Olympus Partners and the management team, and currently operates 39 manufacturing plant locations and employs over 1,500 people throughout North America, prior to the Dutchland acquisition.
MRC