Output of products from polymers in Russia increases by 1.9% in 2019

MOSCOW (MRC) -- Russia's output of products from polymers grew in December 2019 by 2.5% year on year. However, this figure increased only by 1.9% year on year in 2019, reported MRC analysts.

According to the Russian Federal State Statistics Service, December production of unreinforced and non-combined films was 100,000 tonnes, compared to 101,700 tonnes a month earlier. Last year's output of films products grew by 8.8% year on year to 1,205,000 tonnes.

Last month's production of non-porous boards, sheets and films rose to 34,400 tonnes from 33,800 tonnes in November. Thus, overall output of these products reached 387,000 tonnes over the stated period, up by 11.8% year on year.

December production of non-porous boards, sheets and films was 24,900 tonnes, which equalled the figure a month earlier. Overall production of these products reached 277,000 tonnes in 2019, compared to 307,500 tonnes a year earlier.

December production of plastic bottles and flasks fell to 1,595,000 items from 1,668,000 items a month earlier. Overall output of these plastic products totalled 20,140,000,000 units last year, compared to 20,760,000,000 units a year earlier.

Last month's production of polymer pipes, hoses and fittings was 47,930 tonnes versus 49,750 tonnes in November. Overall production of these products totalled 618,000 tonnes over the stated period, up 4.8% year on year.

December production of sacks and bags from ethylene polymers reached 2,210,000,000 units, compared to 2,095,000,000 units a month earlier. Overall output of these plastic products totalled 25,628,000,000 units in 2019, compared to 27,403,000,000 units a year earlier.

Last month's production of linoleum and floor coverings was 8,890,000 square metres, compared to 13,230,000 square metres in November. Overall output of these products totalled 147,360,000 square metres in 2019 versus 131,800,000 square metres a year earlier.

December production of plastic windows and door blocks reached 1,956,000 square metres and 98,900 square metres, respectively, versus 2,203,000 square metres and 103,000 square metres a month earlier. Overall output of these plastic products totalled 24,825,000 square metres and 1,049,000 square metres, respectively, compared to 24,792,000 square metres and 1,215,000 square metres a year earlier.
MRC

Celanese initiates strategic expansion of global EVA capacity

MOSCOW (MRC) -- Celanese Corporation announced preliminary plans to expand its emulsion polymers derivatives business to extend the value of its global acetyl chain, as per Kemicalinfo.

"Building on a commitment to our global customer base to be the partner of choice by solving their most critical needs, Celanese will begin key investments in facility expansions as well as expand on our green technology product development to deliver on the global growth demands of our customers," said Todd Elliott, senior vice president, Acetyls.

Celanese is starting a debottlenecking project at its Nanjing VAE production facility of 20,000 metric tons per annum by 2022. Celanese will further expand EVA production capacity at its Nanjing facility by 65,000 metric tons per annum by adding a third EVA reactor by late 2022, taking the total Nanjing VAE capacity from 130,000 to 215,000 metric tons per annum. These expansion steps support emulsions growth plans in Asia through Celanese’s sustainable products and solutions in end uses such as redispersible powders and waterproofing.

Celanese is implementing a debottlenecking project of its Geleen VAE production unit of 20,000 metric tons per annum by 2021. Celanese will further expand EVA production capacity at its Geleen facility by 50,000 metric tons per annum with an additional EVA reactor by early 2023, taking the total Geleen EVA capacity from 130,000 to 200,000 metric tons per annum. This expansion will support growth while enhancing operating flexibility within the region.

In addition to the Geleen and Nanjing EVA expansions, further capacity unlocking projects have been evaluated to add an estimated 25,000 metric tons per annum in incremental capacities at other Celanese emulsions sites in all three operating regions. We expect this expansion program to be fully implemented by 2023.

Financial details of these capital efficient projects are not being disclosed at this time, and expansion plans will be implemented when operationally feasible and pending customary regulatory and permitting approvals.

As MRC reported earlier, Celanese raised its January VAM prices in Europe, Middle East and Africa by EUR100/mt.

According to MRC's DataScope report, November EVA imports to Russia dropped by 8,9% year on year to 3,440 tonnes from 3,780 tonnes in November 2018, and overall imports of this grade of ethylene copolymer into the Russian Federation decreased in January-November 2019 by 18,9% year on year to 35,95 tonnes (44,330 tonnes in the first eleven months of 2018).

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 7,700 employees worldwide and had 2018 net sales of USD7.2 billion.
MRC

Future US-China trade deal could fundamentally change Turkish polymer trade flows: sources

MOSCOW (MRC) -- Any future phases of the US-China trade deal could fundamentally change Turkish polymer trade flows, reported S&P Global with reference to Turkish traders' statement.

The Phase 1 trade deal signed mid-January between Washington and Beijing has had a minimal impact on tariffs, according to the American Chemistry Council. However, Turkish traders say any future trade deal phases may result in lower US volumes and greater Iranian volumes into the key Turkish polymer market.

"That is important the US-China agreement so more US material will go to China. Iran will get some problems with exports from this, they have not so many places to move material so Turkey will be increasingly important for Iranian material," a Turkish trader said.

Europe has been a major destination for US polymer production since China imposed retaliatory tariffs on selected US-origin goods in response to 2018 and 2019 US tariffs. US material accounted for some 16% of Turkish polyethylene imports through 2019 to November, with US LLDPE material some 28.9% or 141,160 mt of LLDPE imports, according to Turkish statistics agency Turkstat.

Chinese tariffs on US-origin material in 2018 caused competitively priced US material to be available in Turkey, providing greater competition for Iranian material. Iran's share of LLDPE imports by Turkey shrank to 9.59% in 2019 from 20.65% in 2016, according to Turkstat data.

Sources said Iran was facing further challenges caused by US sanctions and entities which trade with Iranian companies.

"The loser [from the deal] is Iran. It means more US material to the Far East so Iranian material cannot come so often to China. They will have to sell more to Turkey or Eastern Europe instead," a second trader said.

Traders said those dealing with Iranian producers were exercising extra caution due to the potential for further sanctions ahead.

"With the Iranian crisis there is limited information about Iranian producers. They are shipping existing orders, but for new orders sellers are hesitant to give offers as they do not know what material will still be coming with any new sanctions," a trader said.

Iran was a significant origin of Chinese polymer imports during 2019, with Iranian material accounting for some 18.63% or 1,352,787 mt of Chinese HDPE imports to November according to Chinese customs data. Iranian material also accounted for some 22.02% or 688,001 mt of Chinese LDPE imports, but market sources said this would be less affected by any trade deal due to lower US LDPE production.

China is set to remain the world's top demand center for polyethylene during the 2020s, according to S&P Global Platts Analytics, with demand in Asia projected to grow 5.3% a year in theregion up to 2027. The US is set to bring some 13.5 million mt/year of new polyethylene capacity online by 2029 to capitalize on increased volumes of cheap ethane from the US shale gas boom.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers.
MRC

HollyFrontier selects solution to reduce cost of compliance with renewable fuels blending

MOSCOW (MRC) -- HollyFrontier has chosen Haldor Topsoe’s HydroFlex™ sustainable renewable fuel technology to produce extremely clean renewable diesel from various feedstocks, as per Hydrocarbonprocessing.

Under the agreement with Artesia Renewable Diesel Company LLC, a subsidiary of HollyFrontier, Topsoe will license and supply basic engineering, proprietary equipment, catalysts, and technical services. The project is based on HydroFlex™, a world-leading, industry-proven Topsoe technology that produces renewable fuels, such as gasoline, diesel and sustainable aviation fuel, from all renewable feedstocks.

The contract was awarded after an in-depth feasibility study, involving competing technologies.

Every year, the United States Environmental Protection Agency (EPA) sets an annual quota for how much biofuel must be blended into gasoline and diesel sold in the US market. RIN (Renewable Identification Number) credits represent a volume of biofuel blended into fossil fuel and are used to ensure compliance with the quota. RIN credits can be traded, so companies that do not produce renewable fuels can buy RIN credits to meet their individual quota of renewable fuel.

"We are very proud that a market leader such as HollyFrontier has chosen HydroFlex™ for their strategic expansion into renewable fuels. HydroFlex™ is the preferred choice for refiners leading the industry transition into producing renewable fuels,” says Henrik Rasmussen, Vice President of Haldor Topsoe.

As MRC informed earlier, in August 2019, Haldor Topsoe, Mitsubishi Heavy Industries Engineering, and GTM ONE have signed a licence agreement for the design, construction, and operation of a 3000 tpd methanol plant based on Topsoe’s SynCOR MethanolTM technology. The plant will be erected at the Khimprom site in Volgograd, Russia.

HydroFlex™ can be deployed in both grassroots units and revamps for co-processing or stand-alone applications.
MRC

Chemicals production in Russia rose by 3.4% in 2019

MOSCOW (MRC) -- Russia's output of chemical products rose in December 2018 by 1.2% month on month.
Production of basic chemicals increased by 3.4% in 2019, according to Rosstat's data.

According to the Federal State Statistics Service of the Russian Federation, the largest increase in production volumes on an annualized basis accounted for polymers in primary form. Thus, 264 ,000 tonnes of ethylene were produced in December, compared to 255,000 tonnes a month earlier. Thus, 2,984,000 tonnes of this olefin were produced in January-December 2019, down by 0.2% year on year.

December production of benzene was 132,000 tonnes, compared to 134,000 tonnes a month earlier. Overall output of this product reached 1,470,000 tonnes over the stated period, down by 4.2%year on year.

December production of sodium hydroxide (caustic soda) was 110,000 tonnes (100% of the basic substance) versus 109,000 tonnes a month earlier. Overall output of caustic soda totalled 1,289,000 tonnes over the stated period, compared to 1,279,500 tonnes a year earlier.

1,931,000 tonnes of mineral fertilizers (in terms of 100% nutrients) were produced in December versus 1,953 mln tonnes a month earlier. Overall, Russian plants produced over 23,588,000 tonnes of fertilizers last year, up by 3.2% year on year.

Last month's production of polymers in primary form increased to 928,000 tonnes, up 24.3% from November. Such a high rate in December was due to an increase in production volumes at the new Zapsibneftekhim site.

Overall output of polymers in primary form totalled 8,759,000 tonnes over the stated period, up by 6.5% year on year.
MRC