LyondellBasell to cut ties with Russian state-owned entities

LyondellBasell to cut ties with Russian state-owned entities

LyondellBasell Industries will turn down new business opportunities with Russian state-owned entities, and plans to discontinue existing business with those entities as well, said Plasticsnews.

Houston-based LyondellBasell also is donating 200,000 euros (USD220,000) to relief efforts in Ukraine. "We are closely monitoring the Russia-Ukraine situation as it continues to evolve," officials said in a statement sent to Plastics News. "LyondellBasell condemns the unprovoked attacks on Ukraine, and we are taking action to support the humanitarian efforts as a result of this conflict.

"In addition to abiding by all sanctions, effective immediately, LyondellBasell will not enter into any new business transactions or relationships, and to the extent legally possible, intends to discontinue business relationships with Russian state-owned entities. We are in the process of assessing how this will impact our operations, including feedstocks, utilities, supply chain providers, and customers."

Officials added that although LyondellBasell doesn't have operations in Ukraine, the firm has seen the rising number of refugees and dislocated families and is supporting the humanitarian crisis through its global corporate citizenship program, Advancing Good.

Half of LyondellBasell's donation will go to the United Nations High Commissioner for Refugees to provide shelter, emergency relief items, cash assistance and mental health support. The other half will go to the International Medical Corps to support their mobile medical units programs.

LyondellBasell ranks as a global leader in production of polyethylene and polypropylene resins and as North America's largest plastics compounder. The firm has operations in more than 100 countries — including Russian offices in Moscow and Togliatti — and posted sales of USD27.7 bn in 2020.

As MRC wrote earlier, in July, 2021, Neste and LyondellBasell announced a long-term commercial agreement under which LyondellBasell will source Neste RE, a feedstock from Neste that has been produced from 100% renewable feedstock from bio-based sources, such as waste and residue oils and fats. This feedstock will be processed through the cracker at LyondellBasell’s Wesseling, Germany, plant into polymers and sold under the CirculenRenew brand name.

As MRC informed earlier, three US subsidiaries of Dutch chemical giant LyondellBasell Industries N.V. (LBI) have agreed to make upgrades and perform compliance measures estimated to cost USD50 million to resolve allegations they violated the Clean Air Act and state air pollution control laws at six petrochemical manufacturing facilities located in Channelview, Corpus Christi, and LaPorte, Texas, and Clinton, Iowa, according to the Department of Justice and the US Environmental Protection Agency's (EPA) statement.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges, like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world"s largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named to Fortune Magazine"s list of the "World"s Most Admired Companies" for the third consecutive year.
MRC

Russian producers rolled over PVC prices for March

Russian producers rolled over PVC prices for March

Russian producers began negotiations over March shipments of Russian PVC at the end of last week. And, despite the significant devaluation of the rouble and the fall in imports, producers decided to keep February prices for March deliveries, according to the ICIS-MRC Price Report.

The growth of imports in January, a serious drop in prices in foreign markets and low demand forced Russian producers to reduce PVC prices for the domestic market in February. At the same time, the largest price reduction was for PVC with K70. And many buyers were hoping for a continuation of the downtrend in March.

And the last month has radically changed the situation on the market. The significant devaluation of the rouble brought down all hopes for PVC price reduction, but the producers did not rush to conclusions either, and in fact kept the suspension PVC prices for March and February. Demand for March delivery was mixed.

On the one hand, the seasonal factor suggests an increase in demand. On the other hand, because of economic factors, converters do not understand what March will be like. There was no shortage of PVC supply on the market yet, although import volumes have declined markedly in the last two weeks of February.

At the same time, imports are expected to be completely stopped in March on the back of a galloping devaluation.
The Central Bank raised the key rate from 9.5% to 20%, followed by commercial banks on new loans raised rates on average by 25%, mortgage rates also increased. It is highly likely that, taking into account the new interest rates on loans, the demand for finished PVC products will decrease.

So far, the situation with the demand for finished products was mixed. Some companies have planned a slight increase in capacity utilisation for March. Also, some converters reported an increased demand for finished products from their customers, but at the same time limits current sales. Some converters still fear that the new refinancing rates will have a negative impact on the demand for finished PVC products.

The devaluation of the rouble improved the export positions of Russian producers. But so far they prefer the domestic market. Also, the devaluation of the rouble led to a serious increase in the cost of additives for PVC processing. Some buyers have taken a break from additive purchases, which could negatively impact their PVC processing volumes.

At the same time, some large converters reported that they have at least a month's supply of additives to work with.
Chinese producers of acetylene PVC have slightly adjusted export prices this week. There was no real demand from Russian companies because of a serious devaluation of the rouble, the price of acetylene PVC will be at least 15% more expensive compared to Russian counterparts.

In addition, there were serious problems with logistics. Deals for March shipments of PVC with K64/67 were negotiated in the range of Rb170 000 - 177 000/tonne CPT Moscow, including VAT, , for volumes up to 500 tonnes. Prices of resin with K=70 were discussed at an average of Rb195,000-198,000/tonne CPT Moscow, including VAT.


MRC

Polymir shut down some of its PE production capacities for a scheduled turnaround

Polymir shut down some of its PE production capacities for a scheduled turnaround

Belarusian Polymir, part of JSC "Naftan", had to shut down part of its capacities of low density polyethylene (LDPE) due to problems with the sale of by-products, according to ICIS-MRC Price report.

According to the company's customers, last weekend the Belarusian producer was forced to stop production at the second line of LDPE production (158 PE). The outage is scheduled to last for one month. The second line's annual production capacity is 65,000 tonnes.

At the same time, it should be added that the temporary shutdown of part of the capacity will not affect the supply of PE from the Belarusian producer. There were sufficient stocks. It is also worth noting that Polymir intends to shut the first line of LDPE for a month in May for scheduled maintenance works, the second line will be shut for repairs in June, but at the same time, the shutdown will last a little more than 30 days.

Polymir (part of Naftan) is Belarus' largest petrochemical company, producing a wide range of chemical products, such as low density polyethylene (LDPE), acrylic fibers, products of organic synthesis, hydrocarbon fractions, etc. Polymir was founded in 1968.

The producer uses technologies of the largest foreign companies from Great Britain, Japan, Germany, Italy (Courtaulds, Asahi Chemical Co. Ltd, Kanematsu Gosho, SNIA BPD, etc.), as well as the developments of scientific research institutes and design institutes of the CIS countries.

The plant's annual production capacity is 130,000 tonnes.


MRC

PVC imports to Russia in January increased 10 times, exports decreased by more than 2 times

MRC) -- Imports of suspension polyvinyl chloride (SPVC) into Russia totalled about 5,8 tonnes in January, up 10 times year on year.
At the same time, export volumes decreased by 2.4 times, according to a MRC DataScope.

January PVC imports increased to 5,800 tonnes from 500 tonnes and 4,400 tonnes in January and December 2021, respectively. The main increase in PVC imports accounted for the producers from China. Overall PVC imports totalled 64,500 tonnes in 2021 versus 44,800 tonnes a year earlier.

Since the end of the third quarter, some Russian producers have significantly increased their export sales, but this year exports have declined. In January of this year, 9,700 tonnes of PVC were shipped for export (excluding the countries of the Customs Union) against 23,800 tonnes and 21,800 tonnes, respectively, in January and December a year earlier.

Overall exports for the all last year amounted to just over 217,800 tonnes against 195,000 tonnes in 2020.


MRC

Técnicas Reunidas and Axens to jointly promote CCS projects

Técnicas Reunidas and Axens to jointly promote CCS projects

Tecnicas Reunidas and Axens have signed a collaboration agreement to jointly promote carbon capture (CCS) projects and provide integrated solutions from the concept to the handover of the project, based on Axens technologies, according Hydrocarbonprocessing.

The two companies will work together to accelerate the transition to a zero-emission future by helping companies in energy-intensive industrial sectors, such as the chemical, steel, cement and paper industries, to reduce carbon emissions from their assets.

As MRC informed earlier, in January, 2022, SOCAR HQ held a ceremony to sign licensing and design agreements for the fluid catalytic cracking (FCC) unit between the Heydar Aliyev oil refinery (HAOR) and the French company Axens as part of the HAOR modernization and reconstruction project. It is worth noting that SOCAR and Axens have a long-term co-operation. At present, the diesel hydrotreatment, gasoline hydrotreatment and C4 (butane-butylene) hydrogenation units as part of the Heydar Aliyev refinery reconstruction project, as well as the C3 (propane-propylene) hydrogenation unit as part of the reconstruction works carried out at Azerkimya PU, the naphtha hydrotreatment, diesel hydrotreatment and kerosene hydrotreatment units at the STAR refinery built in Turkey are licensed by Axens.

Propylene is the main feedstock for the production of polypropylene (PP).

According to MRC's ScanPlast report, PP shipments to the Russian market totalled 1,494.280 tonnes, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas.shipments of PP random copolymers decreased significantly.
MRC