Kumho Petrochemical increasing capacity of synthetic rubber production in Ulsan

MOSCOW (MRC) -- Kumho Petrochemical has begun adding lines for acrylonitrile butadiene latex (NB latex) at its facility in Ulsan, South Korea, in order to increase synthetic rubber production capacity to 550,000 t/y, reported Apic-online with reference to a local source citing the company.

The expansion, scheduled for completion in March 2019, will help solidify the company's position as the "world's number one NB latex maker," said the report quoting a company official.

As MRC informed before, in H1 2016, Kumho P&B Chemicals (KPB) completed its phenol, acetone and cumene capacity expansion. KPB is one of the largest producers of benzene derivatives such as phenol, bisphenol-A (BPA), acetone and cumene in South Korea.

Before the expansion, the company operated two phenol/acetone units in Yeosu that were able to produce 380,000 mt/year of phenol 450,000 mt/year of BPA, 235,000 mt/year of acetone and 430,000 mt/year of cumene. With the completion of the capacity expansion, the company had added 300,000 mt/year of phenol, 470,000 mt/year of cumene and 185,000 mt/year of acetone by June 2016.

KPB is an offshore joint venture created by the joint investment of South Korea’s Kumho Petrochemical and Japan’s Nippon Steel Chemical Company in 1976.
MRC

MOSCOW (MRC) -- Argentina’s biodiesel industry is at risk after the European Union threatened to impose tariffs on imports from the South American country, following accusations that the nation unfairly subsidized its biofuel sector, reported Reuters.

The threat of tariffs has halted Argentine biofuel sales to the EU, industry sources told Reuters, adding that imposing a tax would leave 85 percent of the country’s biofuel exports without a viable market and may force suppliers to close shop.

Boasting major producers like Cargill and Bunge, Argentina is a leader in biodiesel exports. But the sector has suffered trade sanctions in the past after being accused of illegally benefiting from subsidized soybeans.

"It is very likely that Europe could apply anti-subsidy sanctions in two or three months. In that scenario, there is a high probability that production lines would stop," said Claudio Molina, Executive Director of the Argentina Association of Biofuels and Hydrogen.

The industry had previously avoided EU sanctions by redirecting its biodiesel shipments to other markets. But the sector, which recorded 1.2 billion dollars in revenue last year, can no longer redirect exports to the United States.

In late 2017, Washington imposed tariffs and stopped Argentine biodiesel imports after similar accusations of subsidies and “dumping."

The EU’s threat has already put a damper on sales to Europe, trimming Argentina’s biodiesel exports to no more than 700,000 tons this year, down from 1.65 million tons shipped in 2017, according to Argentina’s Chamber of Biofuels (CARBIO).

"Europe is a threat to us," CARBIO President Luis Zubizarreta said, adding that biodiesel plants can barely operate without the European market.

The EU’s investigation into the alleged subsidies began four months after it lost a case at the World Trade Organization in which it accused Argentina of dumping. Following the WTO ruling, the EU revoked duties that had blocked Argentine biodiesel imports to Europe for three years.

"It’s a bad situation since the chances that we will recover those external markets is low," said an industry source who asked not to be named.

In May, the Argentine government raised export taxes on biodiesel to 15 percent from 8 percent. The increase may also prove to hurt the industry, according to Zubizarreta.

The investigation could drag on for over a year, and sources say the EU is expected to levy provisional rates on biodiesel in the second half of 2018, contributing to a pessimistic outlook for the industry. Molina believes increasing domestic consumption may be the industry’s best option.

Argentine law currently mandates fuel providers use a 10 percent mixture of biodiesel in all diesel fuel sold to the public. The country used 1.17 million tons of biofuel last year, according to government data.

Increasing that mix to 12 percent while also using more biodiesel in power plants, public transport, and agricultural machinery could cover up to half of Argentina’s annual production capabilities of 4.4 million tonnes within three years, Molina said.

However, plans to raise mix quotas for publicly consumed biodiesel do not yet exist, a government source told Reuters.

"Sustaining the industry with an internal market of 1.1 million tonnes is practically impossible. If we do not have new export markets, we are just around the corner from starting to shut down production lines," said a source at a biodiesel exporting firm who wished to remain anonymous.
MRC

MOSCOW (MRC) -- A fire broke out at one of Kemaman Bitumen Company’s six crude oil tanks Thursday evening in the Teluk Kalong Industrial area, according to Hydrocarbonprocessing with reference to local news outlets.

The fire quickly spread to a second and third tank as fire crews worked to contain the fire, which left one person severely injured.

NST reports Rosli Muhamad, 42, sustained burns to his face and right hand.

"We believe the victim was carrying out maintenance work near the site of the incident," Terengganu Fire and Rescue Department director Azlimin Mat Noor said. "We are investigating the cause of the fire and damages sustained."

Noor said the first tank contained 4,800 liters of oil, the second 1,580 and the third 13,679 liters.

The company’s CEO Sanjay Groove said the fire was expected to be cleared within 48 hours.

Kemaman Bitumen Company Sdn Bhd (KBC) is a subsidiary of the Tipco Asphalt Group of Companies. KBC’s refinery in south-east Asia is designed to process heavy Naphthenic Crude Oils.
MRC

MOSCOW (MRC) - Asian oil refiners are racing to secure crude supplies in anticipation of an escalating trade war between the United States and China, and as Washington plans tough sanctions against Iran aimed at shutting the country out of oil markets, as per Hydrocarbonprocessing.

As part of a wave of retaliation for Friday's U.S. tariffs, China has threatened a 25 percent duty on imports of U.S. crude. Meanwhile, Washington's new sanctions against Tehran are due to kick in from November.

That double whammy is prompting Asian refiners to move swiftly, with South Korea leading the way. Under pressure from Washington, Seoul has halted all orders of Iranian oil, according to sources, even as it braces from spillover effects from the U.S.-China tit-for-tat on trade.

"As South Korea's economy heavily relies on trade, it won't be good for South Korea if the global economic slowdown happens because of a trade dispute between U.S and China," said Lee Dal-seok, senior researcher at the Korea Energy Economic Institute (KEEI).

In China, state media slammed U.S. President Donald Trump's government as a "gang of hoodlums", with officials vowing retaliation. Standing in the line of fire are U.S. crude supplies to China, which have surged from virtually zero before 2017 to 400,000 barrels per day (bpd) in July.

Although just 5 percent of China's overall crude imports, these supplies are worth USD1 billion a month at current prices - a figure that seems certain to fall should a duty be implemented.

U.S. crude oil is not on the list of 545 products the Chinese government has said it would immediately retaliate with in response to American duties.

However, crude oil is listed as a U.S. product that will receive an import tariff at an unspecified later date.

While no date has been set, industry participants expect the tariff to be levied. "The Chinese have to do the tit-for-tat, they have to retaliate," said John Driscoll, director of consultancy JTD Energy, adding that cutting U.S. crude imports was a means "of retaliating (against) the U.S. in a very substantial way".
MRC