COVID-19 - News digest as of 31.01.2022

1. China 2022 crude imports may rise by 6-7% on new refineries, inventory refill

MOSCOW (MRC) -- China's crude oil imports could rebound by 6-7% this year, reversing 2021's rare decline as buyers step up purchases for new refining units and to replenish low inventories, reported Reuters with reference to analysts and oil company officials' statement. Robust demand from China, which accounts for a tenth of the global crude trade, would help underpin global oil prices, keeping supplies tight amid forecasts for a jump in crude prices. Demand recovery, however, is not expected until the second half of the year as China continues to combat COVID-19 outbreaks and limit production by smaller refiners.

MRC

MOSCOW (MRC) -- Contrary to many market participants' expectations, some Russian producers have announced an increase of Rb2,000-7,000/tonne from January in polyethylene (PE) and polypropylene (PP) prices for February deliveries, according to ICIS-MRC Price report.

Spot PE and PP prices in the Russian market peaked in December, and all producers announced a price reduction of Rb5,000-10,000/tonne for January shipments. On the back of weak demand and oversupply in January, many converters expected further price cuts for February deliveries as well. But contrary to their expectations, on Tuesday, some producers announced a price increase of Rb2,000-7,000/tonne depending on the polymer.

Butene linear low density polyethylene (LLDPE C4) accounted for the greatest price rise in the PE segment, prices of polymer with melt flow index (MFI) went up by Rb7,000/tonne from January. High density polyethylene (HDPE) prices grew by Rb2,000-3,000/tonne, whereas low density polyethylene (LDPE) prices virtually remained unchanged, with shrinkable film LDPE being the exception.

Prices of propylene homopolymers (homopolymer PP) rose by Rb5,000/tonne, and prices of propylene copolymers - by Rb2,000-3,000/tonne.

The increase in PE and PP prices is partially caused by the current depreciation of the rouble against the dollar and the euro.
MRC

MOSCOW (MRC) -- INEOS Styrolution (Frankfurt, Germany), a global leader in styrenics, has announced that two of its European production sites, namely Antwerp, Belgium and Ludwigshafen, Germany have received the ISCC PLUS certification from ISCC (International Sustainability & Carbon Certification), according to Chemical Engineering.

The certification announced paves the way for the audited production of recycling- and bio-attributed styrenics materials using a mass balance approach.

The ISCC PLUS certificate for Antwerp addresses bio-attributed and recycled-attributed ABS (acrylonitrile butadiene styrene), SBC (styrene-butadiene copolymers) and polystyrene (PS).

The respective certificate for Ludwigshafen addresses bio-attributed and recycled-attributed SMMA (styrene methyl methacrylate), SAN (styrene acrylonitrile copolymer) and ABS.

This announcement follows a recent announcement for ISCC PLUS certification of several INEOS Styrolution sites in the Americas. Further certifications for other European INEOS Styrolution production sites are expected soon.

Dr. Eike Jahnke, Vice President Specialties EMEA comments: “We are excited to receive the ISCC PLUS certifications since we will now be able to offer our customers sustainable styrenics solutions that meet all the stringent ISCC requirements. I am looking forward to having sustainable ECO solutions for our broad range of styrenics Specialty products.”

ISCC is an independent multi-stakeholder organization providing a globally applicable certification system for the sustainability of raw materials and products. It has been developed to meet the high demands regarding the implementation of environmentally, socially, and economically sustainable production.

As MRC reported earlier, in August 2021, INEOS Styrolution joined the US Plastics Pact in their support for collaborative, solution-driven initiatives intended to drive significant system change in the design, use, and reuse of plastics. The US Plastic Pact unites cross-sector approaches, setting a national strategy, and creating scalable solutions to create a path forward toward a circular economy for plastics in the United States by 2025.

We remind that in April 2021, INEOS Styrolution, Recycling Technologies and Trinseo announced that they had reached a significant milestone in their plans to build commercial polystyrene (PS) recycling plants in Europe. Recycling Technologies has been selected as the technology partner.

According to MRC's ScanPlast report, Russia's overall estimated consumption of PS and styrene plastics was 518,560 tonnes in January-November 2021, up by 14% year on year. November estimated consumption of PS and styrene plastics rose by 7% year on year, totalling 48,620 tonnes.

INEOS Styrolution is the leading global styrenics supplier, with a focus on styrene monomer, polystyrene, ABS Standard and styrenic specialties. With world-class production facilities and more than 90 years of experience, INEOS Styrolution helps its customers succeed by offering solutions, designed to give them a competitive edge in their markets. At the same time, these innovative and sustainable best-in-class solutions help make the circular economy for styrenics a reality. The company provides styrenic applications for many everyday products across a broad range of industries, including automotive, electronics, household, construction, healthcare, packaging and toys/sports/leisure. In 2020, sales were at 4 billion euros. INEOS Styrolution employs approximately 3,600 people and operates 20 production sites in ten countries.
MRC

MOSCOW (MRC) -- Imports of polyethylene (PE) into Russia decreased by 6% year on year to 602,500 tonnes in January-December 2021.
High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) accounted for the greatest decrease in imports, according to MRC's DataScope report.

December LLDPE imports practically remained at the previous month's level and were slightly over 57,900 tonnes. Overall imports of ethylene polymers totalled 602,500 tonnes in 2021, compared to 638,700 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 HDPE imports by grades looked the following way over the stated period.

December HDPE imports rose to 26,400 tonnes from 24,800 tonnes a month earlier, PE shipments from Europe an Uzbekistan increased.
Overall HDPE imports in the country grew to 229,100 tonnes in 2021, down by 11% year on year. Film grade and blow moulding HDPE accounted for the main reduction in shipments.

Last month's LDPE imports did not exceed 11,000 tonnes, whereas this figure was at 10,600 tonnes in November. Shipments from Belarus grew. Overall LDPE imports to Russia reached 120,700 tonnes in 2021, up by 8% year on year.

December LLDPE imports reached 12,400 tonnes, compared to 13,400 tonnes a month earlier, purchases of film grade PE in South Korea and Saudi Arabia decreased. Overall LLDPE imports totalled 147,400 tonnes in 2021, down by 14% year on year.


Last month, external deliveries of other ethylene polymers, including ethylene vinyl acetate (EVA), amounted to 8,100 tonnes against 8,900 tonnes in November. Overall imports of other ethylene polymers reached 97,200 tonnes over the stated period versus 89,500 tonnes a year earlier.

MRC

MOSCOW (MRC) -- Jieyang Petrochemical, part of Asia's largest oil and gas producer- PetroChina, may begin trial runs at its greenfield 400,000-bpd plant in southern Guangdong province in the third quarter of 2022, reported Reuters with reference to market sources.

PetroChina didn't immediately respond to requests for comment.

As MRC informed previously, PetroChina, Asia's largest oil and gas producer,aims to have oil, gas and green energies to each account for a third of its portfolio by 2035, as the Chinese oil major shifts toward a lower-carbon future.

We remind that in August, 2021, PetroChina Liaoyang Petrochemical Co Ltd , part of PetroChina, successfully started up its new polypropylene (PP) plant last week. Based in Liaoning City, Liaoyang Province, China, the new PP plant has a production capacity of 300,000 tons/year.

According to MRC's ScanPlast report, 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.

PetroChina Company Limited, is a Chinese oil and gas company and is the listed arm of state-owned China National Petroleum Corporation, headquartered in Dongcheng District, Beijing. It is China's biggest oil producer.
MRC