SIBUR and BASF strengthen partnership on sustainable development

MOSCOW (MRC) -- On the margins of the meeting at SIBUR’s PolyLab R&D Centre, SIBUR, the largest petrochemical comples in Russia and Eastern Europe, and BASF, Geman petrochemical major, signed a Memorandum of Understanding (MOU) formalizing their partnership on sustainable development and circular economy agenda further to the companies’ environmental talks held back in June this year, as per SIBUR's press release.

The memorandum is set to strengthen the partners’ commitment to long-term sustainable development goals. BASF and SIBUR agreed to collaborate more closely on water efficiency, carbon footprint management and chemicals recycling along with joining forces in implementing international environmental initiatives.

The document was signed by Maxim Remchukov, Sustainable Development Director at SIBUR, and Christoph Roehrig, Head of BASF in Russia and the CIS.

Maxim Remchukov: "BASF has a long-standing expertise and experience in the field of circular economy, excelling in both achieving commercial success and demonstrating environmental and social responsibility. SIBUR is committed to sustainable business practices and is looking to implement the best initiatives and projects dedicated to this cause. We are certain that this partnership will create substantial synergies for both companies helping us to achieve our goals."

Christoph Roehrig: “BASF has been pursuing its sustainable growth strategy for as long as 25 years. The signing of this memorandum comes as a significant milestone for our company, and we are particularly delighted to have SIBUR - a recognized leader in the Russian petrochemical market - as our partner. I am confident that our joint initiatives and projects will make a real difference in improving the well-being of present and future generations."

As reported earlier, in late August 2019, SIBUR and BASF agreed to closely cooperate on sustainable development to share their best practices.

We remind that, as MRC informed before, in late November 2019, BASF broke ground on a USD10bn petrochemical complex in southern China, becoming the latest foreign company to increase its presence in the country as Beijing gradually relaxes restrictions on overseas investment. The BASF facility, in the city of Zhanjiang, is the first of its kind in China that will be fully owned by the company after Beijing allowed full foreign ownership of chemical “cracking” facilities used to produce plastics. BASF said the plant would produce 60,000 metric tonnes of plastic by 2022.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,724,670 tonnes in the first ten months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market in January-October 2019 totalled 1,066,520 tonnes, up by 7% year on year. Supply of block copolymers of propylene (PP block copolymer) and homopolymer of propylene (homopolymer PP) increased, demand for statistical copolymers (PP random copolymer) decreased.

SIBUR is the largest integrated petrochemicals company in Russia. The Group sells its petrochemical products on the Russian and international markets in two business segments: Olefins & Polyolefins (polypropylene, polyethylene, BOPP films, etc.) Plastics, Elastomers & Intermediates (synthetic rubbers, EPS, PET, etc.). SIBUR’s petrochemicals business utilises mainly own feedstock, which is produced by the Midstream segment using by-products purchased from oil and gas companies. More than 26,000 employees working in SIBUR contribute to the success of customers engaged in the chemical, fast moving consumer goods (FMCG), automotive, construction, energy and other industries in 80 countries worldwide. In 2018, SIBUR reported revenue of USD 9.1 billion and adjusted EBITDA of USD 3.3 billion.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.

SIBUR-Khimprom reduces December EPS prices for Ukrainian market by USD95/tonne

MOSCOW (MRC) -- SIBUR-Khimprom has sharply reduced its expandable polystyrene (EPS) prices for December shipments to Ukrainian buyers, according to ICIS-MRC Price report.

Thus, the reduction in prices of standard grades of material is USD95/tonne.

Thus, December prices of material for the Ukrainian market were at USD1,125/tonne FCA Voronezh, excluding VAT, this month.

Prices dropped not only for December shipments, but also for quantities that were delivered to Ukrainian customers in the last week of November. Some customers already received EPS at new prices at the end of last week.

Import prices of Russian EPS have fallen to the lowest level for all purchases of Russian material by Ukrainian buyers since 2012. Purchase prices of such material, including delivery to a converter's warehouse, will be about UAH36,500/tonne CPT Kiev, including VAT, on the back of the strengthening of the hryvnya exchange rate against the dollar.

SIBUR-Khimprom (part of SIBUR Holding) specializes in the processing of liquid hydrocarbons and is one of the leading Russian producers of a number of the most important petrochemical products. The company has three main production capacities: production of butyl alcohols and 2-ethylhexanol with a capacity of 160,000 tonnes per year, production of ethylbenzene (220,000 tonnes per year), styrene monomer (SM) production (135,000 tonnes per year) and polystyrene (PS) production (100,000 tonnes per year), ethylene and propylene unit, production of eco-friendly plasticizer DOTF (100,000 tonnes per year).

PVC imports to Kazakhstan up by 38% in Jan-Oct 2019

MOSCOW (MRC) -- Imports of unmixed polyvinyl chloride (PVC) into Kazakhstan rose in the first ten months of 2019 by 38% year on year to 51,800 tonnes, reported MRC analysts.

Demand for PVC increased from local companies in October, which was mostly caused by the further re-sale of polymer to Russia, and imports totalled 6,600 tonnes over the stated month versus 4,600 tonnes in September. Thus, overall imports of resin reached 51,800 tonnes in January-October 2019, compared to 37,500 tonnes a year earlier. It is also worth adding that such a significant increase in imports this year was caused by the further resale of resin to Russia.

Due to the geographical position, Chinese producers with the share of about 92% 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 3,900 tonnes over the stated period.


Trinseo took decision not to close PC plant in Stade

MOSCOW (MRC) -- Trinseo, following an evaluation of strategic alternatives for its polycarbonate production facility in Stade, Germany decided to continue operating the site for the "foreseeable" future, as per Petrochemical-news.

In the company's 3Q 2019 financial results, President and Chief Executive Frank Bozich noted that structural and raw material cost savings from the review of the Stade facility are expected to result in a "more sustainable"
economic future for the site.

The decision to save the plant, made after a study announced in May, was driven by the economics of supplying of PC to Trinseo’s high-yield compound processing business.

PC production at Stade is 145,000 tonne/year. About 40% of the production goes to the production of compounds.

According to ICIS-MRC Price report, last week, Russian market participants were waiting for information from Nizhnekamskneftekhim on next month's prices. Amid lower prices of material in foreign markets, Nizhnekamskneftekhim took a non-traditional approach to this month's pricing. December prices will decrease by Rb3,000/tonne and will roll over for January for those buyers that will contract PS quantities for two months in advance. For those buyers that will contract only December quantities, next month's prices will be reduced by only Rb1,000/tonne.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD4.6 billion in net sales in 2018, with 16 manufacturing sites around the world, and approximately 2,500 employees.


RusVinyl reduced December EPVC prices by Rb2,000/tonne

MOSCOW (MRC) - RusVinyl, the largest Russian producer of polyvinyl chloride (PVC, Nizhny Novgorod region, a joint venture of SIBUR holding and the Belgian Solvay group), reduced the prices of emulsion PVC for deliveries in December by Rb2,000/tonne, as per ICIS-MRC Price Report.

Thus, the prices of emulsion PVC from the producer for deliveries in December were reduced to the level of Rb106,000-107,000/tonne CPT Moscow, including VAT.

It was earlier said, negotiations over December shipments of suspension polyvinyl chloride (SPVC) began in the Russian market in the middle of last week. A seasonal decrease in demand for polyvinyl chloride (PVC) from the domestic market and large imports forced domestic producers to reduce November prices by Rb2,500-4,000/tonne from October.

December deals for Russian resin with K64/67 PVC were negotiated in the range of Rb71,000-74,000/tonne CPT Moscow, including VAT, for quantities of less than 500 tonnes. Prices for resin with K70 were by an average of Rb1,000/tonnes higher.

RusVinyl is one of the largest polyvinyl chloride production facilities in Russia and the world. RusVinyl's design capacity is 300,000 tonnes/year of suspension polyvinyl chloride (SPVC) and 30,000 tonnes/year of emulsion polyvinyl chloride (EPVC). Its caustic soda production capacity is 225,000 tonnes/year. Ethylene on RusVinyl is shipped from the SIBUR-Kstovo complex. Rock salt is delivered by water transport from the Astrakhan region and rail from Belarus.