Global demand for refining catalysts to reach USD4.7 B in 2020

MOSCOW (MRC) -- Global demand for the refining catalysts market, which includes catalysts used in fluid catalytic cracking (FCC), hydroprocessing, alkylation, reforming and other applications, is forecast to grow 3.6%/yr to USD4.7 B in 2020, said Hydrocarbonprocessing.

While global demand for refining catalysts in all applications will experience healthy growth, FCC catalysts will post the fastest growth and remain the largest market for refining catalysts by value. This forecast and other trends are presented in World Refining Catalysts, a new study from industry research firm The Freedonia Group.

The refining catalyst markets in developed countries are mature, with strong competition among catalyst manufacturers. To maintain and expand market share in these countries, manufacturers invest significant time and resources in the development of catalysts that can:
• Function at higher temperatures and pressures
• Lower costs by increasing crude oil feed rate or catalyst life
• Produce higher-quality end products.

The continued introduction of new catalysts will sustain growth in the mature markets of North America, Western Europe and Japan.

Additionally, the changing nature of the global crude oil supply, particularly the increased availability in the US of tight oil crudes that are lower in sulfur content, may restrain growth in hydrotreating catalyst consumption in more developed markets. Opportunities will exist, though, for catalysts that allow refiners flexibility in responding to the changing nature of the crude oil supply, according to the study.

In developing economies, rising per capita incomes and increasing rates of vehicle ownership have resulted in large gains in demand for motor vehicle fuels. The growth of manufacturing in these markets and the related need to transport goods have also supported growth in demand for vehicle fuels. As a result, refined products output in developing regions is expected to expand through the forecast period, supporting overall healthy gains in demand for refining catalysts, especially in the Asia-Pacific, Africa and Mideast regions.
MRC

South Korea hard line on Hanjin Shipping signals new attitude

MOSCOW (MRC) -- South Korea’s decision to withdraw support for its largest shipping company has sent shock waves through an ailing global industry. It also shows Seoul’s toughening stance when it comes to troubled firms, said The Wall Street Journal.

Hanjin Shipping Co.’s potential bankruptcy would be the largest container-shipping failure in history, dwarfing all previous carrier bankruptcies, says shipping consulting firm Alphaliner. Not knowing whether they would get paid, ports and handlers from South Korea to China, the U.S., Canada, Spain and elsewhere have refused to handle its cargo. That has stranded ships 45 ships at sea, according to the company, and more than half a million containers.

Berthing and unloading services for Hanjin ships resumed at South Korea’s main ports of Busan and Incheon on Friday after the government said port authorities would guarantee payments for service providers.

A Hanjin spokeswoman said the company also plans to take action in the U.S. and other countries, including filing for protection of assets, to prevent further seizure of ships.

With goods stuck on its ships, the company said Friday that it has been suspended from its CKYHE Alliance. Its Asian shipping partners are rushing to find alternative arrangements to ship electronics, clothing, furniture and other goods as retailers in the U.S. and Europe are stockpiling for the holidays and rivals are boosting freight rates.

South Korea’s LG Electronics Inc., the world’s No. 2 maker of TVs, said it is canceling orders with Hanjin and seeking alternative options. Hyundai Motor Co. and GM Korea Co. said they haven’t been affected by Hanjin because they use other shippers. Samsung Electronics Co. declined to comment.

The country’s financial regulator said it has asked Hyundai Merchant Marine Co. to deploy at least 13 of its ships to Hanjin’s U.S. and European routes before Sept. 7 to help ease cargo delays.
MRC

PCS shuts No. 2 cracker in Singapore for brief maintenance

MOSCOW (MRC) -- Petrochemical Corporation of Singapore (PCS) has taken off-stream its No. 2 cracker for a minor repair work, as per Apic-online.

A polymerupdate source in Singapore informed that the company has commenced the shutting process at the cracker. It is expected to remain off-line for a period of around 1 week.

Located at Pulau Merbau in Singapore, the No. 2 cracker has an ethylene production capacity of 655,000 mt/year and propylene production capacity of 350,000 mt/year.

As MRC wrote before, in April 2016, PCS said it plans to invest USD80 mln in new naphtha import facilities in Singapore, including storage tanks and a liquid berth to handle large vessels. PCS managing director A. Yonemura said the project was in response to the global trend of moving naphtha to larger vessels and will strengthen the companies import logistics, giving it better efficiencies.

PCS is jointly owned by Japan-Singapore Petrochemicals Company (led by Sumitomo Chemical), Qatar Petroleum International and Shell Petrochemicals (Singapore). Naphtha is currently stored in tanks leased from other companies. The new facilities will include storage tanks, a liquid berth capable of handling large vessels transporting naphtha and its associated facilities.

Petrochemical Corporation of Singapore (PCS) operates two crackers on Jurong Island, supplying petrochemical building blocks such as ethylene and propylene to industrial customers. The No. 1 cracker has a capacity of 474,000 mt/year of ethylene and 270,000 mt/year of propylene.
MRC

SABIC and SNCG agree on possible China chemical JV principles

MOSCOW (MRC) -- SABIC, along with Shenhua Ningxia Coal Industry Group Co. Ltd. (SNCG) and the government of the Ningxia Hui Autonomous Region of China, have agreed on a set of principles for cooperation in the further development of a potential joint venture (JV) between SABIC and SNCG to build a greenfield coal-to-chemicals complex, reported Hydrocarbonprocessing.

The facility will focus on highly-differentiated applications and segments through polymers derivatives.

The project will be located in the Ningxia Hui Autonomous Region. The agreement includes certain commitments from the Ningxia government to provide support and incentives to the project, while also providing a framework for coordination and cooperation between the three parties in connection with the project approval process.

Cooperation between the parties, with respect to the coal-to-chemicals project, contributes to the Chinese government’s "Belt & Road Initiative," expanding the economic ties and bilateral trade between Saudi Arabia and the People's Republic of China.

The project would leverage the shareholders’ respective best practices, operational experience, and technologies in the petrochemical industry.

The project would benefit from SABIC’s participation through the utilization of SABIC’s technologies, and access to SABIC’s global Technology & Innovation Centers would be provided for product development, technical support and application development programs. SABIC would also leverage its global marketing and customer service capabilities.

The project would also benefit from the participation of SNCG, which is an affiliate of Shenhua Group, one of the largest coal producers and suppliers in China, as well as a global coal-based, integrated energy and chemicals company.

A further benefit is the project’s location in the Ningxia Hui Autonomous Region, which is one of the largest coal-producing regions in China, and the incentives and support that will be provided by the Ningxia government.

As MRC reported earlier, in July 2016, SABIC and the Korean petrochemical company, SK Global Chemical, successfully concluded negotiations for a 50-50 joint venture that will purchase the unique Nexlene solution technology and a plant that manufactures a range of high-performance Ethylene/Alpha-Olefin copolymers products in Ulsan, Republic of Korea.

The joint venture holding company, SABIC SK Nexlene Company (SSNC) is headquartered in Singapore. Its wholly owned subsidiary, Korea Nexlene Company (KNC), owns the plant in Ulsan, which has an annual capacity of 230,000 tons. The parties intend to further expand capacity with the construction and operation of additional plants globally. The plant will produce metallocene based linear low-density polyethylene, polyolefin plastomers, and polyolefin elastomers to meet the growing needs of diverse industries such as flexible packaging, industrial and agricultural film, automotive, consumer products (footwear), medical, and construction.

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

Price offers for September PVC delivery in Russia are patchy

MOSCOW (MRC) -- Negotiations on Russian contract polyvinyl chloride (PVC) prices for September delivery have continued this week. Some producers have decreased prices, others insist on rollover the August prices, according to ICIS-MRC Price Report.

Negotiations on September prices of Russian suspension PVC (SPVC) for the domestic market started last week, but converters were in no hurry to agree on deals. Demand for resin remain strong from converters, but at the same time low season in the market of finished products is approaching. Producers' price offers for September delivery were mixed.

Prices for Russian PVC reached another historical record in August on the back of high demand and production problems at the some plants. RusVinyl plans to shut PVC production for two weeks turnaround in September, but this factor is, in the opinion of many market participants will not affect the market balance.

Russian K65/67 PVC market have been oversupplied since the second half of August due to a serious growth of imports from China. Russia's PVC imports are expected to remain high in September also while the "high season" in the market of finished PVC products is coming to an end.

Discussions for K64/67 PVC contracts are going in the range of Rb74,000-79,000/tonne CPT Moscow, including VAT.
Some producers are going to roll over August prices for September delivery.

Most producers have cut prices for K70 PVC. Negotiations for K70 PVC are done in the range of Rb78,500-80,000/tonne CPT Moscow, including VAT.
MRC