ELIX to Halt ABS Production in Spain for Repairs in December

ELIX Polymers, a leading Spanish polymer manufacturer, has outlined plans to initiate a temporary shutdown of its acrylonitrile butadiene styrene (ABS) plant located in Tarragona, Spain, starting from December 11, said Chemanalyst.

This temporary halt in production is scheduled for routine maintenance measures, aimed at ensuring the optimal functioning of the facility. The maintenance activities, critical for sustaining the plant's efficiency, are anticipated to span a period of ten days, with operations expected to resume by December 20.

This planned shutdown follows a previously conducted maintenance period earlier in the year. ELIX Polymers had temporarily ceased production at the ABS plant in Tarragona on May 2, implementing scheduled preventive measures. The maintenance activities, integral to the ongoing upkeep of the facility, were successfully concluded as planned on May 16.

ELIX Polymers, recognized for its extensive experience exceeding 35 years, stands as a major international player in the manufacturing of engineering plastics. The company specializes in producing acrylonitrile-butadiene-styrene (ABS), a versatile and widely used thermoplastic polymer. Beyond ABS production, ELIX Polymers also offers a range of high-quality polymer modifiers, primarily based on ABS and styrene-acrylonitrile (SAN). These modifiers play a crucial role in enhancing the properties of engineering plastics and PVC compositions, contributing to the development of advanced and specialized materials.

Import figures for ABS surged by 12% in the first eight months of 2023 compared to the same period in the previous year, amounting to 22.2 thousand tons as opposed to 19.7 thousand tons in 2022. South Korea emerged as a prominent supplier, accounting for 56% (12.5 thousand tons) during this period, a slight increase from the 54% (10.6 thousand tons) share in 2022. Following closely, China contributed significantly, representing 30% (6.6 thousand tons) of ABS imports from January to August 2023. Taiwan secured the third position with a share of 13% (3 thousand tons).

ELIX Polymers' decision to undertake routine maintenance aligns with industry best practices to ensure operational reliability and product quality. This strategic approach reflects the company's commitment to upholding stringent standards in polymer manufacturing. As the ABS market continues to witness growth and evolving dynamics, ELIX Polymers remains a key player, contributing to the advancement of engineering plastics and associated technologies.

ELIX Polymers' planned shutdown for ABS plant maintenance in Tarragona signifies a proactive commitment to operational excellence and industry leadership. The periodic maintenance measures are essential for sustaining the facility's productivity and aligning with the company's dedication to delivering high-quality engineering plastics to meet market demands. ELIX Polymers' versatile product portfolio and its contribution to the broader ABS market underscore its significance in the global polymer manufacturing landscape.

We remind, Exxon Mobil moved up the start date for a CDU overhaul at its 619,024-bpd Beaumont, Texas, refinery from August 2024 to June 2024, said people familiar with the company’s plans. Exxon continues to plan to shut the 65,000-bpd diesel-producing hydrocracker in January for an overhaul, during which the 80,000-bpd reformer will also be shut for work, according to the sources.

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Exxon Mobil moved up the start date for a CDU overhaul at its 619,024-bpd Beaumont, Texas, refinery from August 2024 to June 2024, said people familiar with the company’s plans, said Hydrocarbonprocessing.

Exxon continues to plan to shut the 65,000-bpd diesel-producing hydrocracker in January for an overhaul, during which the 80,000-bpd reformer will also be shut for work, according to the sources. Exxon spokesperson Lauren Kight declined to comment on Tuesday.

The 180,000-bpd Crude B CDU is scheduled to shut down for the overhaul in June, two months earlier than previously planned, the five sources said. Crude B is one of three CDUs breaking down crude oil at the start of the refining process to produce feedstocks for all other units at the refinery, which is the nation's second largest by capacity.

Crude B processes sour crude oil, a cheaper grade that requires processing for the higher levels of residual crude it produces compared with sweet crude. While the CDU is shut, the 100,000-bpd Vacuum B vacuum distillation unit (VDU) will also be shut for work, the sources said. Production on the refinery’s 60,000-bpd coker will be cut back while Crude B shut.

Unlike CDUs, which operate at atmospheric pressure, VDUs operate at vacuum pressure to break down residual crude oil into feedstocks for other production units. Cokers take residual crude from distillation units and break it down into motor fuel feedstocks or petroleum coke, which can be used as a coal substitute.

Hydrocrackers use a catalyst under high heat and pressure in the presence of hydrogen to convert gas oil into diesel and other motor fuels. Reformers convert refining byproducts into octane-boosting components added to unfinished gasoline to make premium grades.

We remind, ExxonMobil Corp. (Houston) said today it has started work on the first phase of a lithium production complex in southwest Arkansas and intends to become a leading global producer of lithium, said the company.
The company is targeting lithium production by 2027 and is “evaluating growth opportunities globally.” By 2030, ExxonMobil aims to be producing enough lithium to supply “well over 1 million electric vehicles [EVs] per year.” Demand for lithium is expected to quadruple by 2030, according to ExxonMobil. Demand is surging on rapid growth in EV and energy storage battery markets.

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Indonesia's state energy company Pertamina and U.S. oil majors Exxon Mobil and Chevron Corp are moving ahead with their discussions to invest in carbon capture facilities while Exxon eyes a petrochemical project in the country, said Hydrocarbonprocessing.

Pertamina and Exxon agreed to carry out further evaluations for $2 billion in investments in carbon capture and storage (CCS) facilities using two underground basins in the Java Sea, Pertamina said in a statement on Tuesday.

The CCS hub with Exxon has the potential to store at least 3 gigatons of carbon dioxide emitted by industries in Indonesia and the rest of the region, Pertamina Chief Executive Nicke Widyawati said.

Jack Williams, senior vice president at Exxon Mobil, said Exxon and Pertamina have the potential to reduce emissions and support economic growth in Indonesia.

The agreements were signed during Indonesian President Joko Widodo's visit to Washington to meet with U.S. President Joe Biden, ahead of the APEC meetings in San Francisco this week.

The deals show the Indonesian government and other stakeholders are "ready to utilize Indonesia's CCS potential for the advancement of low-carbon industries, investment and job creation for the Indonesian people," said Jodi Mahardi, a senior government official.

ndonesia wants to use its depleted hydrocarbon reservoirs for carbon storage and is finalizing a regulation that would open up storage schemes for carbon from abroad to be stored in the country.

The Southeast Asian country has storage capacity of 8 gigatons of carbon in the depleted reservoirs, while an additional 400 gigatons of capacity is available if it utilizes its saline aquifers.

During the same trip, Pertamina, through three of its units, also agreed to share information with Chevron to potentially develop either CCS or carbon capture utilization and storage (CCUS) sites in East Kalimantan.

The information may include geological and geophysical data, maps and commercial information, and other items. Pertamina, Chevron and the United Arab Emirates' Mubadala Energy also signed a joint study deal to explore geothermal potential in Indonesia's North Sulawesi.

A unit of Exxon also signed an initial deal with the Coordinating Ministry for Maritime and Investment Affairs to explore investment in a petrochemical project in Indonesia to produce polymers.

We remind, Indonesia's state energy company Pertamina and U.S. oil majors Exxon Mobil and Chevron Corp are moving ahead with their discussions to invest in carbon capture facilities while Exxon eyes a petrochemical project in the country. Pertamina and Exxon agreed to carry out further evaluations for $2 billion in investments in carbon capture and storage (CCS) facilities using two underground basins in the Java Sea, Pertamina said in a statement on Tuesday.

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Unigel, a significant player in Brazil's polystyrene (PS) production landscape, is gearing up to recommence its polystyrene manufacturing activities in Sao Jose dos Campos, Brazil, said Chemanalyst.

This strategic decision follows a temporary shutdown of the plant, which boasts an annual production capacity of 130 thousand tons of substation, initiated in July due to subdued market demand. Unigel is strategically timing the restart of operations to align with the escalating demand in the Brazilian polystyrene market, influenced by both seasonal factors and supply challenges.

The temporary halt in production in July was prompted by a period of low demand in the market, a circumstance that prompted Unigel to implement a strategic pause in its operations. With the plant's reinstatement, Unigel aims to capitalize on the evolving market dynamics and the heightened demand expected in the lead-up to the summer period in the region.

Notably, the Brazilian polystyrene market has encountered supply challenges in recent weeks, contributing to the urgency and importance of Unigel's decision to resume production. Additionally, Unigel's competitor, Innova, is currently operating at reduced capacity at its Manaus plant, attributing the decrease in output to logistical issues. This reduction in supply from Innova has further intensified the supply constraints in the market, creating an opportune moment for Unigel to re-enter the production landscape.

Earlier in the year, Unigel had temporarily closed its styrene production in Cubatao, Sao Paulo, Brazil, on June 12, for scheduled repairs. The styrene production facility, with an annual capacity of 120 thousand tons, underwent the shutdown for planned maintenance. While the exact duration of the repairs remains undisclosed, the decision was made for economic reasons.

The broader context of the Brazilian polystyrene and styrene plastics market reveals a notable increase in consumption. According to ScanPlast's analysis, the estimated consumption of polystyrene and styrene plastics in the initial eight months of the current year reached 379.32 thousand tons, reflecting a significant 7% growth compared to the same period last year.

Unigel and Videolar Innova emerge as the primary manufacturers of polystyrene in Brazil, occupying pivotal roles in shaping the dynamics of the domestic market. The strategic decisions and operational shifts undertaken by these major players significantly influence the overall supply-demand balance and market conditions.

Unigel's strategic move to resume polystyrene production in Sao Jose dos Campos underscores the company's responsiveness to market fluctuations and its proactive stance in leveraging opportunities. The decision to restart operations aligns with the changing dynamics of demand in the Brazilian polystyrene market, influenced by both seasonal patterns and supply challenges. Unigel's role, alongside other key players, continues to shape the trajectory of the Brazilian polystyrene and styrene plastics industry, contributing to its growth and resilience.

We remind, Unigel, the largest Brazilian manufacturer of nitrogen fertilizers, on Thursday announced the resumption of activities at a unit called Unigel Agro Sergipe, which produces urea and ammonia. The company said it scheduled the restart for September after a slight improvement in the outlook for the domestic petrochemical sector. The factory in Sergipe state was idled due to challenging market conditions, Unigel said. Another plant in Bahia state that was likewise idled will remain offline.


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Industry operating rates and margins fell to a record low in Q3, according to Indorama Ventures, as the Thailand-based producer announced a fall in as earnings amid the weak economy, said the company.

Despite a year-on-year drop, EBITDA compared to the previous quarter rose 1% on the back of inventory gains in its integrated oxides and derivatives segment and volume growth for its fibres business.
Indorama’s polyethylene terephthalate (PET) activities were hit by low integrated PET margins in China, high feedstock costs in Western markets and lower margins in Europe and Brazil due to import pressure.

Production and sales volumes fell 11% and 5% respectively in line with destocking from buyers and industry operating rates falling to around 70%, which Indorama said are likely at a record low for the industry. This also weighed on margins, which are also at the bottom.

Operating cash flow rose on a year prior, resulting in free cash flow (FCF) of $52m so far this year. This was negative previously on the back of steeper feedstock costs, higher inventory volumes and Indorama's acquisition of Oxiteno.

Although inflationary pressures are expected to cool and there has been a pick-up in China’s economy in Q3, macroeconomic volatility is expected to assuage any meaningful recovery for the rest of 2023.
Volumes are expected to improve in 2024 across all segments as destocking activity comes to an end. Indorama anticipates improved margins on a modest market recovery.

We remind, Indorama Ventures Public Company Limited, a global sustainable chemical company, today announces that it has recycled 100 billion post-consumer PET bottles since February 2011. This has diverted 2.1 million tons of waste from the environment and saved 2.9 million tons of carbon footprint from the product lifecycles. Demonstrating its commitment to support the establishment of a circular economy for PET, in the last ten years Indorama Ventures has spent more than $1 billion towards waste collection of used PET bottles.

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