Ukraine reduced PET imports by 4% in Q1 2016

MOSCOW (MRC) -- Imports of polyethylene terephthalate (PET) into the Ukrainian market dropped in the first quarter of 2016 by 4% year on year, totalling 26,400 tonnes, according to MRC DataScope report.


The share of Chinese PET reached 56% in Q1 imports. At the same time, imports from China grew by more than 2.4 times compared to the same quarter a year earlier to almost 15,000 tonnes.

Yisheng Petrochemical became China's largest PET supplier in the first quarter (5,400 tonnes versus 330 tonnes in Q1 2015). Imports of Jiangsu Sanfangxiang, Shanghai Hengyi Polyester and Zhejiang Wankai's grades also increased.

Imports of Lithuanian PET of NeoGroup were almost 9,000 tonnes, down by 16% compared to imports in the first quarter a year earlier.

Imports of Belarusian PET fell significantly. Ukraine imported 800 tonnes of Belarusian PET in the first quarter 2016 compared to 2,500 tonnes a year earlier. This year's lower supplies of Mogilevkhimvolokno's PET were due to the plant's shutdown in February-March and, as a consequence, the absence of exports.

MRC

SABIC extends profit slump with 13.2% Q1 drop

MOSCOW (MRC) -- Saudi Basic Industries Corp (SABIC), one of the world's largest petrochemicals groups, reported a 13.2% drop in first-quarter net profit, extending a profit slump but beating analysts' forecasts, reported ArabianBusiness.

SABIC made a net profit of 3.41 billion riyals (USD909.4 million) in the three months to Mar. 31, down from 3.93 billion riyals in the year-earlier period, the company said in a bourse statement.

Five analysts polled by Reuters had on average forecast that SABIC would make a quarterly profit of 2.84 billion riyals.

SABIC, which is 70 percent state-owned, attributed the profit fall to lower average sales prices, noting that the net loss for the metals segment amounted to 725 million riyals. It said the cost of sales dropped during the period.

Lower oil prices have adversely affected SABIC's earnings, with the company's profits falling in the six preceding quarters, Reuters data shows.

The company's results are closely tied to oil prices and global economic growth because its products -- plastics, fertilisers and metals - are used extensively in construction, agriculture, industry and the manufacturing of consumer goods.

From the first quarter of 2016, SABIC's total annual costs before minority interests will rise by around 5%.

We remind that, as MRC wrote previously, Sabic modified its Wilton cracker in the UK to enable it to use ethane feedstock imported from the US. The company aimed to complete the project by 2016.

Saudi Basic Industries Corporation (Sabic) ranks among the worldпїЅs top petrochemical companies. The company is among the worldпїЅs market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
MRC

Total European refining margin drops again in Q1

MOSCOW (MRC) -- French oil and gas company Total said that its refining margins in Europe had fallen to USD35.1/ton in the first quarter of the year, said Reuters.

Europe's biggest refiner still reported a European refining margins indicator (ERMI) of USD38.1/ton in the fourth quarter of 2015, a table showed on its website.

As MRC wrote previously, Total intends to invest EUR160m before 2016 to adapt its petrochemical platform in Carling, in the Lorraine region of eastern France, and to restore its competitiveness.

Besides, in April 2015, Total announced that its proposed new ethane cracker near its refinery in Port Arthur, Texas, is being designed to have a capacity of 1 million tpy.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
MRC

AkzoNobel increases net profit by 50% in Q1 2016 on higher sales

MOSCOW (MRC) -- Dutch paints maker AkzoNobel’s Q1 2016 net profit rose by 50% year on year to EUR240m on the back of higher sales volumes across its businesses, said the producer on its site.

"Volumes were up 2%, while adverse currency effects, price/mix and divestments resulted in revenue down 4%," the company said in a statement.

Revenue for the first three months of the year fell to EUR3.43bn, but operating profit was up 17% at EUR357m as margins improved to 10.4% from 8.5% in the previous corresponding period.

Excluding incidental items, operating profit (EBIT) increased by 9% to EUR334m in January-March 2016, reflecting continuous improvement initiatives and lower costs, partly offset by adverse currency effects.

"The market environment remains uncertain with challenging conditions in several countries and segments. Deflationary pressures and currency headwinds are expected to continue," AzkoNobel said.

As MRC wrote previously, in March 2015, AkzoNobel’s Specialty Chemicals business recently broke ground on a new alkoxylation facility in Ningbo, China, bringing the company’s total investment in the strategic multi-site to more than EUR400 million.

Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.
MRC

Formosa shuts No. 1 aromatics plant for maintenance in Taiwan

MOSCOW (MRC) -- Formosa Chemical and Fibre Corp (FCFC) has taken off-line its No. 1 aromatics plant for a maintenance turnaround, as per Apic-online.

A Polymerupdate source in Taiwan informed that the plant was shut early last week. The plant is likely to remain off-line for around 4 weeks.

Located in Mailiao, Taiwan, the aromatics plant has a benzene production capacity of 250,000 mt/year, toluene production capacity of 470,000 mt/years and isomer MX capacity of 100,000 mt/year.

As MRC informed previously, in August 2014, the US Environmental Protection Agency (EPA) issued three final GHG Prevention of Significant Deterioration construction permits for the Formosa Plastics facility in Point Comfort, Texas.
Formosa is expanding its chemical complex, located near Victoria, and taking three actions with its turbines unit, olefins unit and low-density polyethylene (LDPE) unit. According to the olefins GHG permit, a new ethane cracker and propane dehydrogenation (PDH) unit will have a combined capacity of 1.75 million tpy of "high-purity ethylene product". Meanwhile, the LDPE unit will have a a capacity of 625,500 tpy and be able to produce resin at different grades.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company's plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
MRC