Global biodegradable polymer market to reach USD5.18 bln by 2020

MOSCOW (MRC) -- The global biodegradable polymer market was valued at around USD1.68 bln in 2014 and is expected to reach approximately USD5.18 bln in 2020, growing at a CAGR of slightly above 21% between 2015 and 2020, as per Plastemart with reference to Zion Market Research.

Polymers are compounds with a long chain of monomers formed by chemical reactions. Polymers are composed of a large number of repeating units and high molar mass. Biodegradable polymers are the polymers which can be broken down into simple, reusable, natural products after their intended purpose. Biodegradable polymers are non-toxic, environment-friendly, capable of maintaining integrity until degraded and their degradation rate can be controlled. Degradation of biodegradable polymers is mainly done with the help of micro organism. Biodegradable polymers after breakdown give the natural byproduct such as carbon dioxide, biomass, and water.

Rising demand for biodegradable and bio based products due to sustainable development policies and growing concern for use of environmentally friendly product is the main driver for the biodegradable polymer market. Government support to produce eco-friendly biodegradable polymer is also the key factor for the growth of the market. Escalating price of crude oil which is raw material for the production of the petroleum based polymer also helps in driving the demand of biodegradable polymers. However biodegradable polymers have few applications to replace synthetic petroleum based plastic materials and high manufacturing cost and failure in production of accurate biodegradable polymers may influence the market growth. Rising end-user applications and economical raw material price for biodegradable polymers are offering potential market opportunity in the years to come.

The biodegradable polymer market is segmented on the basis of type, application, and region. Polymers with hydrolyzable backbone, polymers with a carbon backbone and natural polymers are the types of biodegradable polymers. Polymers with a hydrolyzable backbone are classified as polyglycolic acid (PGA), polycaprolactone (PCL), polyamides, polyurethanes, others in which polyglycolic acid (PGA) is the widely used followed by polyamides and polyurethane. Polyvinyl alcohol (PVA) is one kind of polymers with a carbon backbone, whereas amylopectin, starch, amylose, chitin and chitosan and others are types of natural polymers. Starch based polymers are one of the leading segment due to easy availability, and extensive application in food packaging.

The biodegradable polymer has a broad range of applications in packaging, agriculture, and medicine. In a medical application, biodegradable polymers are used in the adhesive prevention, drugs delivery system, and surgical sutures. Further, biodegradable polymers are utilized in agriculture mulches, and starch based packaging, cellulose based packaging and PLA based packaging among others.

Geographically, Europe accounted for the majority of the market share for biodegradable polymers market in 2014. This was mainly due to a strong focus on green technology and manufacturing advancements in Germany and Netherlands. North America is anticipated to grow significantly during the estimated period, because of the awareness and increasing crude oil prices in this region. Further Asia Pacific is likely to accelerate the growth of the market due to growing industrialization in emerging economies like India and China.

Some top profiles in biodegradable polymer markets are Cortec group, Mitsui Chemicals, BASF, BIOTEC GmbH& Co, Cereplast, Metabolix Inc. and FP International among others. These market players are focusing on improved production techniques of biodegradable polymers through R&D to expand their applications.

As MRC wrote previously, the global bio-based polyethylene terephthalate (PET) market is expected to grow at 68.25% CAGR by 2019 as per a report by ReportsnReports. Bio-based PET is a biodegradable product made from materials such as monoethylene glycol (MEG) and terephthalic acid (PTA). About 30% of bio-based PETs are composed of monoethylene glycol (MEG), a product of sugarcane ethanol, and the rest is composed of purified terephthalic acid (PTA), a chemical-based product of crude oil.
MRC

MOSCOW (MRC) -- A fire broke out at a motor control center transformer at South Korean producer GS Caltex's refinery and petrochemical complex at Yeosu early Wednesday morning, reported Apic-online with reference to market sources.

This has led to the shutdown of the No. 2 continuous catalytic reformer, the sources added.

A source close to the company said that a Parex unit, which separates paraxylene from mixed xylenes, was also shut, while the toluene disproportionation unit and other toluene-to-PX units were operating as usual. If the No. 2 CCR, one of two CCRs, remains shut for a long time, the company would have to consider cutting the operating rates of the TDP unit and other toluene-to-PX units as well, the source said.

The company refused to comment, only saying that it was waiting for a detailed report from the plant management. It could only comment after receiving the report, the company source said.

As MRC informed before, in 2013, CB&I was awarded a contract by GS Caltex for the license, basic engineering and catalyst supply for a new paraxylene (PX) unit to be built in Yeosu, Korea. The unit will use the BP paraxylene technology, exclusively licensed by CB&I, and will have a world-scale design capacity. Start-up was expected in 2016.
MRC

MOSCOW (MRC) -- US oil refiner Marathon Petroleum Corp said on Thursday it would pay USD86 MM to settle lawsuits that allege injuries due to a January 2016 fire at its Galveston Bay, Texas refinery, as per Hydrocarbonprocessing.

The company recorded an USD86 MM charge in its second-quarter earnings statements as a result. On a per-share basis, the charge was about 10 cents.

The charge was higher than the USD40 MM or 5 cents per share Marathon last week said it would incur as a result of the expected settlement.

As MRC wrote previously, in January 2017, Praxair, Inc. signed a long-term contract to supply hydrogen to Marathon Petroleum Corporation’s refinery in Garyville, Louisiana. The company will use the hydrogen to support an ultra-low-sulfur diesel project planned for 2018. Marathon Petroleum is the third-largest transportation fuels refiner in the US and operates an integrated refining, marketing and transportation system in the Midwest, East, Southeast and Gulf Coast. The hydrogen will be supplied through Praxair’s extensive Southeast Louisiana pipeline network.

Marathon Oil Corporation is a United States-based oil and natural gas exploration and production company. Principal exploration activities are in the United States, Norway, Equatorial Guinea, Poland, Angola and Iraqi Kurdistan.
MRC

MOSCOW (MRC) -- Iraq's oil exports fell to 3.230 MMbpd in July from 3.273 MMbpd in June as no shipments were made from the northern Kirkuk field, the oil ministry said on Tuesday, according to Hydrocarbonprocessing.

The volume announced by the ministry accounts for shipments from the fields supervised by the central government in Baghdad, and does not include those from the autonomous Kurdish region in northern Iraq.

All the volumes sold in July came from the southern fields and none from Kirkuk, the only field supervised by the government in north, the statement said. In June, Iraq shipped 677,413 bbl from Kirkuk, an average of 22,000 bpd. The average sale price in July was USD43.80/bbl, generating USD4.386 B in revenue, the statement said. Iraq generated USD4.13 B from oil sales in June and sold its crude for USD42/bbl, the ministry said. Iraq is the second largest OPEC producer after Saudi Arabia.

As MRC informed before, in the first half of May 2017, Iraqi's oil ministry asked foreign companies and investors to bid for a project to build and operate a 300,000-bpd export-oriented refinery in Fao, near the southern city of Basra. Bidding documents provide for two investment models - build-own-operate and build-operate-transfer, said the ministry in a statement. They were available until May 31 and the bidding closed on Aug. 1d.

OPEC's second-largest oil producer after Saudi Arabia, Iraq's refining capacity was curtailed when Islamic State overran its largest oil processing plant in Baiji, north of Baghdad, in 2014.
MRC

MOSCOW (MRC) -- Azerbaijan's oil shipments via Russia jumped to 818,664 t in January-July this year from 559,065 t in the same period last year, reported Reuters with reference to state oil company SOCAR.

The increase was partly because SOCAR shipped no oil via the Baku-Novorossiisk pipeline in January and February last year, before resuming exports the following month after signing an agreement with Russian pipeline monopoly AK Transneft.

SOCAR aims to increase its shipments via Russia to 1.5 MMt this year. Last year it shipped 1.2 MMt, down 4.8% from 2015.

Azerbaijan sends only a small portion of its oil exports via Russia, using routes through Georgia and Turkey for the bulk of its crude shipments.

SOCAR's crude has a lower sulfur content than Russia's Urals blend. The company receives crude from Transneft to fill its loading slots at the Novorossiisk oil terminal.

As MRC wrote earlier, in October 2015, State Oil Co. of Azerbaijan Republic (SOCAR) subsidiary Azerikimya Production Union (PU) entered two units into operation at its ethylene and polyethylene (PE) plant in Sumgait, north of Baku. The company commissioned a 87,600-tonne/year (tpy) unit for the desulfurization of liquefied gas and a 120,000-tpy installation for the hydrogenation of butylene-butadiene fractions. Azerikimya also recently commissioned an isopropyl alcohol unit at the petrochemical plant, which produces 260,000 tpy of ethylene and PE.

SOCAR, which is keen on expanding operations in the retail oil products market abroad, is involved in exploring oil and gas fields, producing, processing, and transporting oil, gas, and gas condensate, marketing petroleum and petrochemical products in the domestic and international markets, and supplying natural gas to industry and the public in Azerbaijan. SOCAR Polymer is a subsidiary of SOCAR. The entity was formed at the end of 2013 to run investments at the Sumgait Chemical Industrial Park, a production park which intends to become a chemical hub in central Asia.
MRC