ExxonMobil launches new Singapore cracker

MOSCOW (MRC) -- ExxonMobil’s chemical plant in Singapore is now producing ethylene from the facility’s second world-scale steam cracker, reported Hydrocarbonprocessing with reference to the company's announcement.

As MRC informed previously, ExxonMobil started operations at this ethylene steam crackers in Singapore in early 2013.

The expansion is integrated with the existing petrochemical plant.

Over the next few weeks, the petrochemical complex, powered by a 375-megawatt cogeneration plant, will increase production at its three polyethylene plants, two polypropylene plants, a specialty metallocene elastomers unit and the expanded oxo-alcohol and aromatics units.

"This expansion gives ExxonMobil unparalleled feedstock flexibility in the industry and positions the Singapore petrochemical complex well to serve growth markets from China to the Indian sub-continent and beyond," said Matthew Aguiar, chairman and managing director of ExxonMobil Asia Pacific.

ExxonMobil completed construction of the expansion in December 2012 and is producing commercial grades of new products, such as specialty metallocene elastomers, for the first time in the Asia Pacific region.

"We successfully completed the commissioning of the steam cracker and we are now focused on ensuring that the plant operates safely and reliably," said Georges Grosliere, venture executive and manufacturing director of the Singapore plant for ExxonMobil Chemical.

ExxonMobil has operated in Singapore for 120 years and is one of Singapore’s largest foreign manufacturing investors. The company has expanded refining and petrochemical production in Singapore to meet expected demand for transportation fuels and the chemicals used for plastics and other manufacturing across the Asia Pacific region.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3 percent of the world"s oil and about 2 percent of the world's energy. Exxon Mobil's first quarter 2013 earnings were USD9.5 billion, up 1% from the first quarter of 2012.
MRC

MOSCOW (MRC) -- In May, prices for Russian bottle PET in Russia remained stable and were supported by strong demand from domestic consumers of material, according to MRC Price report.

The increased buying activity of Russian companies and shortage of domestic spot PET volumes supported PET prices in May. In the first half of the summer, PET prices in Russia are most likely to remain the same with a possiblity of a further growth, said a Russian producer. The current PET price level will be maintained by the shortage of spot volumes in the domestic market on the back of stronger demand. In case of the expected hot summer, demand for feedstocks for PET preforms production might grow further, said a converter.

The shutdown for a scheduled turnaround at Bashkir plant Polief might result in an even greater shortage of Russian material. Also, the expected cutback in production at the Belarusian plant Mogilevkhimvolokno will reduce the availability of Belarusian PET in the Russian market this summer.

Meanwhile, the self-cost of PET granulate, bought in Asia a month earlier and already delivered to the Central Region, is by Rb4,500-5,500/tonne lower than the current spot price range of Russian granulate.

Export prices of Asian granulate for the CIS buyers have not changed either. Last week of May, purchase prices of Chinese PET were heard at USD1,410-1,420/tonne FOB China. The material of Korean PET producers was traditionally offered at more expensive prices. The price spread of Korean feedstock was heard at USD1,420-1,450/tonne FOB Korea.
MRC

MOSCOW (MRC) -- Oil output in Russia, the world's biggest producer, edged up 0.1% to 10.48 million barrels per day in May to reach a 2013 high thanks to production build-up by the top producer Rosneft, said Upstreamonline.

Russian May oil output stood at 44.328 million tonnes according to Energy Ministry data. However, natural gas production plunged 9% in May, month-on-month, on the back of output decline at state-owned Gazprom due to weak seasonal demand.

Revenues from oil and gas production account for about half of Russia's state budget and are closely watched as an indicator of the health of the country's USD2 trillion economy.

The oil production level matched last December's output and is shy of November's post-Soviet high of 10.50 million bpd. This was higher than 9.35 million bpd pumped last month by Saudi Arabia, which potentially can produce more than Russia but the kingdom is limited by Opec-inflicted quota to prop up crude prices.

On Friday, the Organization of the Petroleum Exporting Countries agreed to retain the group's 30 million bpd output target through the rest of the year.

Rosneft's crude production inched up 0.15% last month from April's level thanks to increasing output at its new Vankor field in East Siberia. Output levels at TNK-BP, which Rosneft acquired this year for USD55 billion, rose 0.4%.

Rosneft became the world's top listed crude producer after it bought TNK-BP with hydrocarbon production of 4.6 million barrels per day of oil equivalent.

The Energy Ministry published Rosneft's and TNK-BP data separately. Natural gas production fell to 1.7 billion cubic metres a day as Gazprom's output declined 11% to 1.18 Bcm a day.

As MRC wrote before, Rosneft and Mitsui have signed an agreement to jointly develop the massive Far East Petrochemical Company (FEPCO) project. The complex is expected to be started up in 2017.
MRC

MOSCOW (MRC) -- MRC news digest over the past week.

1. April production of PET in Russia decreased by 7%.

April production of polyethylene terephthalate (PET) in Russia fell by 7% and totalled 38,600 tonnes. In March, Russian makers produced about 41,300 tonnes. Last month, the decrease in production was seen at the facilities of the all four Russian factories. The demand in the Russian market of PET was strong on the back of seasonal factors and a lack of domestic granulate, which was offset by imports. Total imports of PET to Russia in April amounted to 24,600 tonnes, which made 60% of all the produced material in the country. MRC analysts expect that total Russian production of PET in May will also go down due to the scheduled maintenance of Sibur-PETF. Moreover, the scheduled turnaround of Bashkir Polief in summer will result in an acute shortage of PET in the Russian market.

2. Russian prices of LDPE down Rb1,000-3,000/tonne.

MOSCOW (MRC) -- After significant growth in March - April, prices of low density polyethylene (LDPE) in the Russian market decreased sharply in late May. The offers for 158 LDPE under the pressure of excess supply and low demand in the market last week dropped to Rb54,000-62,000/tonne FCA, including VAT. From the beginning of May, LDPE prices fell by Rb1,000-3,000/tonne. This year is different from the previous ones in the Russian market of LDPE. Traditionally LDPE prices in the Russian market have been growing since May amid rising seasonal demand and scheduled maintenance of Kazanorgsyntez in April. This year LDPE prices have been affected by two key factors. Firstly, the prolonged winter and short spring resulted in weaker demand for finished films from key consuming sectors (agriculture, food, construction, etc.). Secondly, the low prices of LDPE in foreign markets forced Russian producers to cut export sales.

3. Imports of titanium dioxide to Russia rose by 33%.

In April, imports of titanium dioxide (TiO2) to Russia increased by 33% year-on-year. Imports of titanium dioxide totalled almost 8,500 tonnes in April. In absolute terms, imports rose by 2,100 tonnes year-on-year. Regarding imports in March, purchasing volumes in foreign markets remained stable and were at a high level. Market sources believe that the rise in import volumes was caused by a seasonal factor. In addition, attractive prices of TiO2 contributed to the increase in purchases in foreign markets. Market players expected that after the rapid drop in prices for material, prices will go up in spring with the revival of consumer activity.

4. Capacity of Russian PET market grew by 13% in April.

In April calculated consumption of polyethylene terephthalate (PET) in Russia increased by 13% from March on the back of increase in imports of granulate. Thus, the calculated consumption of PET in Russia has been growing for the fourth consecutive month and follows the seasonal trend. April was no exception, and the upward trend continued. In April, the consumption of PET in Russia totalled 59,100 tonnes, up 6,600 from March, when in April 2012, the consumption of PET in Russia amounted to 58,100 tonnes. The reason for the increase in the market capacity in April was a good demand in the domestic market. Russian producers and converters reported a deficit of PET in the market. In April, the export of Russian PET also showed upward trends. The exports of PET from Russia grows a fourth consecutive month. In April Russia exported more than 4,000 tonnes of PET granulate. In March, this figure does not exceed 3,500 tonnes, when in January it was 1,300 tonnes. Total capacity of Russian PET market over the four months in 2013 amounted to 205,000 tonnes.

5. Output of olefins and aromatics in Russia dropped by 7%.

In April, Russian petrochemical plants reduced the production of olefins and aromatics by 7% from March. According to the Federal State Statistics Service, the output of olefins (ethylene and propylene) totalled 1,356,000 tonnes, the production volume of benzene and styrene totalled 145,300 tonnes. Last month, the total outpout of ethylene amounted to 229,000 tonnes, up 6% from March. In January-April, Russian petrochemical plants produced 917,000 tonnes of ethylene, up 20% year on year. The April output of propylene was 118,000 tonnes, while in March it made 119,000 tonnes. Over the four months of the year, production of propylene reached 440,000 tonnes, up 17% year on year. The output of benzene and styrene in April amounted to 86,800 tonnes and 58,500 tonnes, up 17% and 3% from March, respectively. Over the four months of the year, the production volume of benzene and styrene totalled 400,000 tonnes and 217,300 tonnes, respectively, an increase of 3.4% and 20.7% year on year, respectively.

6. Imports of polystyrene to Russia surged by 8% since early 2013.

Since the beginning of the year imports of polystyrene (PS) has exceeded 66,000 tonnes, up 8% year on year. Expandable polystyrene (EPS) accounts for the largest supply volume, namely 20,100 tonnes, down 20% year on year. In April, imports of PS to Russia were 19,790 tonnes, whereas EPS imports made 7,300 tonnes of material. Both key EPS suppliers to the Russian market - Loyal and BASF - have reduced their shipments to Russia compared to the same period in 2012. Meantime, Styrochem, which accounts for 2,310 tonnes in 2013 or 11.5% of the total EPS imports, increased deliveries by 20%. Imports of general purpose polystyrene (GPPS) in April virtually did not changed from March and reached 5,090 tonnes. Since early 2013 this index exceeded 18,000 tonnes, up 41% year on year. Styrolution still accounts for the largest share of supply, namely 62%. Despite a slight drop in ABS imports in April, this index has increased by 17% since the beginning of the year and totalled 12,400 tonnes of the material. Samsung Cheil, LG Chem and Styrolution, whose share in the structure of supplies accounts for 31%, 29% and 13%, respectively, preserve their positions of key ABS suppliers to the Russian market. Imports of high-impact polystyrene (HIPS) have come close to 10,000 tonnes from the beginning of the year, up 37% year on year. In April, imports of HIPS made 2,200 tonnes. Polimeri Europa, Styrolution and LG Chem account for the main share of the supply since early 2013.

7. Ukrainian imports of SPVC in April dropped by 16%.

Imports of suspension polyvinyl chloride (SPVC) to Ukraine in April decreased by 16% from March (down by 9,250 tonnes. The outage of Ukrainian producer Karpatneftekhim (group Lukoil) this year increased because of the dependence of the Ukrainian market of imports by half. Last month's deliveries of US SPVC to Ukraine fell by more than three times. The total imports of North American PVC to Ukrainian market made 2,250 tonnes, compared to 7,100 tonnes in March. Such a drastic reduction in the supply of US resin resulted from an increase in export prices in January - February. The reduction of US PVC supplies was partially offset by the deliveries from Europe, which in April totalled 6,400 tonnes, up 63% compared with the March figure. During the first four months of this year, the total volume of imports of SPVC to Ukraine made 38,100 tonnes, up 96% compared with the same period a year ago.

8. SIBUR begins trial production of polypropylene at its Tobolsk-Polymer complex.

SIBUR has begun integrated equipment testing at the propylene storage facility and trial production of the first polypropylene line at the company’s Tobolsk-Polymer complex, according to the commissioning timetable, reported the company on its site. This follows testing of the first production line at the extrusion plant and the polypropylene packaging and dispatch plant. Over the course of the next few months SIBUR will continue commissioning operations across all production facilities and expects to begin production at the complex by the end of 2013, once all approvals have been granted. SIBUR has notified the Federal Service for Environmental, Technological and Nuclear Supervision (Rostekhnadzor) that construction of the complex has been completed.

9. Prices of Asian PET suppliers remain stable.

Prices of Chinese and Korean bottle PET granulate for buyers in the CIS countries remain stable despite the volatility of terephthalic acid (PTA) and monoethylene glycol (MEG) prices. For the fifth consecutive week, Asian producers have not virtually changed their prices for export shipments. The price range, voiced by Russian converters last week, amounted to USD1,495-1,525/tonne DAP Moscow, excluding VAT. According to Ukrainian converters, PET prices were USD1,480-1,510/tonne CIF, including delivery to Odessa port and excluding VAT.

10. April imports of PET to Ukraine grew twofold.

In April, imports of polyethylene terephthalate (PET) to Ukraine increased more than twofold compared to the same month a year earlier. Ukraine's imports of granulate in April totalled about 30,000 tonnes, from 14,000 tonnes in April 2012. MRC analysts said that April PET imports has reached their maximum, starting from February 2008. One of the major market players said that the increase in imports resulted from the converters' positive expectations towards the current season. In general, over January-April 2013 imports of PET to Ukraine increased by 30% compared with the same period a year earlier. The imports of PET to Ukraine in January-April totalled 68,000 tonnes.

11. April PP imports to Ukraine dropped by 9%.

After a record-breaking performance in the first three months, imports of polypropylene (PP) to Ukraine fell to 10,900 tonnes in April. Despite low seasonal demand, some local company in late 2012-early 2013 rather actively contracted PP in the Middle East and Asia. But in April, high export prices in these regions and absence of shipments from the Romanian producer Rompetrol (planned shutdown for a turnaround) led to a drop in PP imports, in particular, of homopolymer polypropylene (homopolymer PP). Imports of homopolymer PP to Ukraine declined to 7,900 tonnes last month, while in March this index equalled more than 9,000 tonnes. At the same time, imports of injection moulding homopolymer PP fell by 75% in April due to discontinuation of shipments from Romania (Rompetrol) and Saudi Arabia (Natpet). Over the first four months of the year, imports of homopolymer PP to Ukraine totalled 36,400 tonnes, up 108% year on year. Overall, in January-April 2013, imports of PP and its copolymers to Ukraine totalled 46,500 tonnes, up 72% year on year. The main reason for the record import volumes has been the outage at the domestic producer - LINIK.

12. Estimated consumption of polystyrene in Russia increased by 20%.

In January-April 2013, the estimated consumption of polystyrene (excluding styrene plastics, including ABS) in Russia increased by 20% compared to the same period of 2012. Since the beginning of 2013 the Russian market of polystyrene (PS) styrene plastics has been growing, compare with 2012, and totaled 163,320 tonnes. In April 2013, this figure was 42,030 tonnes, up 17% from April 2012. The main increase in consumption showed expandable polystyrene (EPS). Estimated consumption EPS in January-April 2013 totaled 54,830 tonnes, up 32% compared to 2012. This significant increase in consumption resulted from the expansion EPS production in Perm, which from the beginning of 2013 totalled 40,440 tonnes. In May 2013 it is expected that the consumption of HIPS and GPPS and EPS made about 45,000 tonnes.

13. April output of caustic soda in Russia dropped by 5%.

In April, the output of caustic soda by Russian plants fell by 5% year on year. Thus, last month' total production of caustic soda in Russia amounted to 84,400 tonnes. In April 2012, this index equalled 89,770 tonnes. The decline in caustic soda production in April was registered at seven plants. Sibur-Neftekhim accounted for the largest decrease in tonnage terms, which amounted to about 4,000 tonnes. Overall, in January-April 2013, Russian plants produced 362,000 tonnes of caustic soda, down 1% year on year. The total production volumes of caustic soda in Russia for the first four months of 2012 amounted to 366,000 tonnes.

14. Price of Russian PS to be steady in June.

Russian producers of general purpose polystyrene (GPPS) and high impact polystyrene (HIPS) are going to keep the price stable, despite the expected increase in European price quotations. In May, the Russian producers of GPPS and HIPS have reduced the price for the domestic market on average by Rb2,500-3,500/tonne from April price level. Price offers from European producers were also attractive for Russian consumers after a few drops in April and May, which allowed them to increase imports. As per MRC analysists, Russian producers are going to rollover June PS price at the level of May, despite the expected increase in prices in Europe. The level of price for June, will be settled next week.

15. April PE imports to Ukraine rose by 45%.

After the March standstill, Ukrainian companies greatly increased volumes polyethylene (PE) imports in April. Total shipments amounted to 29,400 tonnes, up 45% from March. Excessive PE imports to Ukraine at the end of last year and in the first two months of this year made local companies reduce purchases from foreign markets to 20,300 tonnes in March. But in April, on the back of seasonal demand, many Ukrainian companies began to replenish actively their inventories. Imports grew for all PE grades. Overall, over the first four months of the year, HDPE imports to Ukraine totalled 45,500 tonnes, up 34% year on year. Such a serious increase in imports was largely due to the outage at Karpatneftekhim (group Lukoil), the Ukrainian manufacturer. In April, imports of high-density polyethylene (LDPE) rose to 8,500 tonnes after a major drop in March (about 6,000 tonnes). A major growth of imports (70%) in April was registered in the linear low-density polyethylene (LLDPE) market, shipments rose to 6,200 tonnes. Last month, local producers of stretch films increased their purchases significantly. In January-April 2013, LLDPE imports dropped by 5% to 19,500 tonnes. Imports of other polymers of ethylene amounted to slightly more than 1,000 tonnes in April. In January-April, shipments of these polymers totalled about 3,600 tonnes.
MRC