Synthos reduces November GPPS and HIPS prices for Ukrainian buyers

MOSCOW (MRC) -- Synthos SA, Poland's largest petrochemical producer, has reduced its November offer prices of general purpose polystyrene (GPPS) and high impact polystyrene (HIPS) for the Ukrainian market, according to ICIS-MRC Price report.

Thus, this month' GPPS shipments to Ukrainian buyers will be done at EUR1,080-1,100/tonne FCA Oswiecim, excluding VAT, whereas Polish producer's HIPS quantities will be sold in the region at EUR1,170-1,190/tonne, FCA Oswiecim, excluding VAT, in November.

As reported earlier, Nizhnekamskneftekhim (NKNH, part of the TAIF group) significantly reduced its HIPS and GPPS shipments to the Ukrainian market in November. Thus, some market participants said the plant would not ship HIPS and GPPS to Ukrainian traders. Moreover, a major increase in available quantities for Ukrainian buyers are not expected in December either.

Synthos SA is one of the largest producers of petrochemical products in Poland and is the largest producer of emulsion rubbers in Europe. Besides, it is the third largest European EPS producer.
MRC

MOSCOW (MRC) -- Overall imports of PC granules to the Ukrainian market rose in the first ten months of 2019 by 13% year on year to 3,300 tonnes, according to MRC's DataScope report.

This figure was 2,900 tonnes in January-October 2018.

Last month's imports of material to the Ukrainian market fell by 17% to 341 tonnes from 410 tonnes in September, with German and Dutch material accounting for the main decrease in shipments.

In terms of technology, the share of injection moulding PC grades decreased to 52% (1,700 tonnes) in January-October 2019 from 63% (1,800 tonnes) a year earlier. The share of extrusion grade PC grew significantly: from 15% (425 tonnes) of the total imports to 30% (980 tonnes), with the share of blow moulding grades decreasing by 3% to 19% and totalling 620 tonnes.

Covestro and Sabic with the share of about 84% of the total imports were the key suppliers of resin to the Ukrainian market in the first ten months of 2019.

Thus, imports of Covestro's PC to the Ukrainian market increased over the ten months of 2019 by 48% year on year: from 1,600 tonnes in January-October 2018 to 2,300 tonnes. Covestro's material accounted for 71% of the total PC imports to the country in the first ten months of 2019 versus 54% a year earlier. The company's shipments of material to Ukraine were 280 tonnes last month, compared to 230 tonnes in October 2018.

At the same time, Sabic's deliveries material fell in January-October 2019 by 37% year on year: from 690 tonnes to 440 tonnes. Sabic's PC granules accounted for 13% of the total imports to the country in the first ten months of 2019 versus 24% a year earlier.

MRC

MOSCOW (MRC) -- Imports of unmixed polyvinyl chloride (PVC) into Kazakhstan rose in the first nine months of 2019 by 31% year on year to 45,200 tonnes, reported MRC analysts.

Demand for PVC subsided from local companies in September, with imports of unmixed PVC remaining atypically high and totalling 4,600 tonnes in September versus 8,200 tonnes in August. Thus, overall imports of resin reached 45,200 tonnes in January-September 2019, compared to 32,300 tonnes a year earlier. At the same time, it is worth noting that such a substantial increase in imports was caused by the further resale of resin to Russia in the period of an acute shortage in July-September.

Due to the geographical position, Chinese producers with the share of about 94% of the local market over the stated period were the main PVC suppliers to Kazakhstan. Russia was the second largest PVC supplier, shipments of Russian resin reached 2,900 tonnes over the stated period.

MRC

MOSCOW (MRC) -- Qatar Petroleum said on Wednesday it had signed a 10-year Liquefied Petroleum Gas (LPG) supply agreement with China’s Wanhua Chemicals, reported Reuters.

The agreement is for the sale of approximately 800,000 metric tons per year of LPG over a period of 10 years, the firm said in a statement on Wednesday.

As it was reported earlier, China’s top petrochemical maker Wanhua Chemical Group aims to increase LPG imports to about 5.5 million mt in 2020 from 4 million mt this year as it procures feedstock from diversified sources ahead of new projects in Yantai and widens trading activities in Asia.

A 1 million mt/year ethylene integration project - phase two of its petrochemical project in northeast Shandong province - will be the first ethylene cracker to use LPG as feedstock globally and is set for commercial production in the second half of 2020. Together with associated downstream units and a nearby feedstock storage rock cavern with a capacity of 1.2 million cubic meters, the project is costing around Yuan 20 billion.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,589,580 tonnes in the first nine months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market was 976,790 tonnes in January-September 2019, up by 4% year on year. Shipments of PP block copolymer and homopolymer PP increased.
MRC

MOSCOW (MRC) -- Petronas Chemicals Group (Kuala Lumpur, Malaysia) has reported a massive drop in third-quarter profits and significantly lower sales, reported Chemweek.

Net profit declined to 558 million Malaysian ringgit (USD134.37 million) from RM1.332 billion in the year-earlier quarter. EBITDA decreased by 44% to RM915 million largely due to compressed margins, and sales were down 24.0% to RM3.67 billion. Commenting on the results, CEO Sazali Hamzah said, “Petrochemical product prices have stabilized but market outlook remains soft due to lower global GDP growth and expected additional capacities coming onstream, resulting in a long market. However, market fundamentals remain strong in the Asia Pacific region."

Sazali said that construction on PCG’s new plants at the Pengerang Integrated Complex (PIC) is nearing completion and the company remains on track to commence commercial operations by the end of the year. "We are now in the process of stabilizing the plants to deliver additional capacity of a new product range to meet our customers’ requirements." Saudi Aramco holds a 50% stake in PCG’s polyolefins complex within PIC and it also has a 50% stake in the upstream steam cracker, a joint venture with PCG’s parent, Petronas.

All PCG’s segments reported lower sales and profits. The olefins and derivatives business recorded net profit of RM232 million compared with RM762 million in the third quarter of 2018. Revenue in the segment was down 28% to RM2.281 billion. Fertilizers and methanol net profit declined from RM427 million to RM315 million, and revenue was 18% lower at RM1.381 billion.

PCG recorded plant utilization rates of 81%, an improvement from 79% in the corresponding quarter of 2018. Production and sales volumes were higher but product prices declined in tandem with declining crude oil price and softer market demand. The olefins and derivatives segment recorded plant utilization rates of 78% compared with 96% in the corresponding quarter, primarily due to higher statutory turnaround activities. Sales volume was lower in line with lower production.

The fertilizers and methanol business recorded an improvement in plant utilization rates to an average of 83%, up from 69% in the corresponding quarter mainly due to better plant performance and lower statutory turnaround activities.

PCG anticipates product prices for olefins and derivatives to stabilize in the fourth quarter on the back of supply limitation following planned regional turnarounds. The company also forecasts stabilization in fertilizers and methanol prices due to limited supply amid soft demand from the end products.

As MRC informed earlier, in early November 2019, Saudi Aramco approached Malaysian state energy company Petronas to participate in Aramco’s IPO, Petronas said, as the Middle Eastern oil giant seeks cornerstone investors for the listing.

Besides, we remind that Saudi Aramco, which temporarily lost half of its oil production following the September 14 attacks on two key oil facilities, is running its local refineries at full capacity and is forging ahead with plans to start up new refineries. The company is also starting up a joint venture refinery in Malaysia next year. According to Aramco's bond prospectus released in April, the refining and petrochemical joint venture with Petronas - the Malaysian national oil company - collectively known as PRefChem, was supposed to start this year.

The PRefChem joint venture includes a 300,000 b/d refinery, an integrated steam cracker with capacity to produce 1.3 million mt of ethylene located in Johor, Malaysia. Aramco was supposed to provide a significant portion of PRefChem's crude supply under a long-term supply agreement. Jazan and PrefChem will help Aramco reach a gross refining capacity of 5.6 million b/d, it said in the prospectus. The company currently owns and has stakes in four refineries abroad with a total refining capacity exceeding 2 million b/d.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,589,580 tonnes in the first nine months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market was 976,790 tonnes in January-September 2019, up by 4% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Saudi Aramco is an integrated oil and chemicals company, a global leader in hydrocarbon production, refining processes and distribution, as well as one of the largest global oil exporters. It manages proven reserves of crude oil and condensate estimated at 261.1bn barrels, and produces 9.54 million bbl daily. Headquartered in Dhahran, Saudi Arabia, the company employs over 61,000 staff in 77 countries.
MRC