Daqing Refining to restart PP plant in China

MOSCOW (MRC) -- Daqing Refining & Chemical is likely to restart a polypropylene (PP) plant, reported Apic-online.

A Polymerupdate source in China informed that the plant is planned to be restarted this weekend. It was shut for a maintenance turnaround.

Located in Heilongjiang province, China, the plant has a production capacity of 300,000 mt/year.

As MRC informed previously, Daqing Refining & Chemical already shut its PP plant for maintenance turnaround on August 9, 2013, for around 45 days.

Daqing Petrochemical, which is a main buyer of feedstock LPG from Daqing Refining & Chemical, shut its 600,000 tonne/year naphtha cracker for turnaround at the same time. Daqing Refining & Chemical has an 8m tonne/year refinery in northeast China’s Heilongjiang, with its secondary conversion capacity reaching 6m tonnes/year.
MRC

MOSCOW (MRC) -- Rhein Chemie is introducing Rhenowave, a new concept for controlling the quality of rubber compounds, reported the company on its site.

The compounds are analyzed during extrusion (for example during straining or shaping) in a pulse transmission process with the help of ultrasound waves. Nanoscale fillers such as carbon black and silica have particularly good damping properties for soundwaves in the range of 1 MHz to 20 MHz, so that the filler content can be determined with a precision of up to 1 phr. Unlike with many other analytical methods that use electromagnetic waves, carbon black does not disturb this process. As a result, even black compounds can be volumetrically analyzed.

Using a marker with a high density, e.g. zinc oxide, the distribution of Rhenogran AP additionally can be monitored. Rhenogran AP products are customer-specific additive packages made from crosslinking chemicals, and are polymer-bound, dust-free and easily dispersible.

Rhenowave is fast, both used alone or in combination with Rhenogran AP. Following the exit of the compound from the extruder, an assessment of the compound quality is performed within a few seconds (inline control). Where array technology is used, up to 100% of the compound can be analyzed. Small areas where compound quality is insufficient are recognized immediately rather than later in the product. Rhenowave can be used in a production scale of 1,000 kg/h and it is absolutely non-destructive.

As MRC wrote earlier, last summer, Lanxess’ Rhein Chemie business unit opened a new production facility at the Porto Feliz site in Brazil. There, Rhein Chemie produces Rhenoshape high-performance curing bladders, which are used in tire manufacture. Around 170,000 bladders can be produced annually in the new facility. The new plant is equiped with state-of-the-art production technology. The latest findings in bladder technology have been implemented.

Besides, at its new site in Lipezk, which was opened on 4 July, 2013, Rhein Chemie produces rubber additives and release agents for the Russian and CIS markets, especially for the automotive and tire industries.

Rhein Chemie develops, produces and sells additives, specialty chemicals and service products for the rubber, lubricant and plastics industries. In fiscal 2012 Rhein Chemie achieved sales of EUR344 million and has approximately 1,100 employees worldwide. The company is headquartered in Mannheim, Germany and has production facilities in Europe, Asia and North and South America. Rhein Chemie is a wholly owned subsidiary of the specialty chemicals group Lanxess, Leverkusen, Germany.
MRC

MOSCOW (MRC) - Offer price for polyethylene terephthalate (PET) in Kazakhstan increased by Tenge61 500/tonne (up 20%) on the back of sharp depreciation of the local currency, according to ICIS-MRC Price Report.

Last week Central bank of Kazakhstan stopped supporting national currency and the interference in the formation of the exchange rate of tenge.

Without the support from the Central bank of Kazakhstan, exchange rate of tenge against US dollar fell by 20% from Tenge 155 to Tenge 185.4 for USD1.

Last Monday price for Chinese PET was heard in the range Tenge 303,000-309,000/tonne CPT Astana, including VAT. Converters increased PET price to Tenge365,000-370,000/tonne CPT Astana, including VAT.

Sales of PET were frozen, as converters preferred to use their stock inventories, waiting for the stabilization of the financial market.

Market participants expect buying activity to be sluggish in the rest of February.
MRC

MOSCOW (MRC) -- The chances of HIP-Petrohemija’s survival should be sought in integrated development of the oil refinery’s and petrochemical processing, as it was concluded Wednesday, February 12, during the meeting held with the Serbian Government which was attended by Minister of Energetics Ms Zorana Mihajlovic and Minister of Finance Mr Lazar Krstic, their collaborators, general director of HIP-Petrohemija – Mr Velimir Unkovic, and representatives of the Independent Trade Union and Engineers and Technicians Trade Union, said the producer in its press-release.

It has been agreed that HIP-Petrohemija should prepare Planning and Analyses for Profitable Opeartions of the Company, and after that the representatives of the Serbian Government and competent ministries shall have another meeting with NIS and HIP-Petrohemija where the possibilities of cooperation between these two comapanies shall be discussed.

It has been concluded that the deadline for completing the company restructuring procedure shall be prolonged, and that the issue of gas supply to HIP-Petrohemija has to be urgently solved.

We remind that, as MRC reported previously, HIP-Petrohemija had approved the investment project in late August to increase the production capacity of HDPE, for the financing of which the company will allocate EUR2.4 million from its own resources.

NIS is one of the largest integrated oil and gas companies in South-Eastern Europe, engaged in exploration, production and refining of oil and gas, and marketing petroleum products. Major shareholders are Gazprom Neft (56.15%) and the Government of the Republic of Serbia. (29.88%). The rest of the shares are owned by minority shareholders.

HIP Petrohemija owns petrochemical complexes located in Pancevo, Elemir and Crepaja. The core business is the production of HDPE, LDPE and other petrochemical products. The annual production capacity of the company is 700,000 tonnes. As per MRC information, the HIP Petrohemija"s products are not significantly represented in the Russian and Ukrainian HDPE markets.
MRC

MOSCOW (MRC) -- Harsh winter in USA has wreaked havoc on the logistics of the petrochemical business in first few weeks of 2014, said Plastemart.

Heavy snow and freezing temperatures delayed delivery times by 7-10 days of railcars, trucks and barges during one of the roughest seasons in recent memory. Along with the Northeast and Midwest, the Gulf Coast has also been hit with colder-than-usual temperatures. The Gulf Coast, producing a significant portion of US petrochemicals, has been hit with ice, sleet and freezing temperatures in January and February.

Earlier this month, Equistar Chemicals declared a force majeure event for all North American polyethylene grades, citing logistical delays due to severe weather. Equistar, an arm of LyondellBasell, told customers it was evaluating the impact on transportation facilities and carriers, and warned customers they could experience delays in receiving shipments.

Their customers are not alone. Industry sources who buy and sell products throughout the petrochemical chain have said the wintry conditions have posed a challenge. Some PVC suppliers were heard working to time truck deliveries around winter storms. Diethylene glycol spot prices have moved higher in North America, according to sources, in part because railcar traffic from Canada has been slowed, and also because of heavier demand for glycols from antifreeze makers. And suppliers who rely on barges to get chemicals to customers have often found themselves having to contend with frozen stretches of river. Multiple chemical producers in the Midwest have also been heard implementing sales allocations, due largely to weather-related production issues. A US polypropylene trader noted that the winter weather is also impacting Americans' buying appetite for goods made from chemical-based materials, and as a result upstream domestic demand could be impacted.

The National Weather Service has predicted snow, showers and freezing temperatures for much of the eastern US in the coming days.
MRC