Haldia Petrochemicals declares force majeure on supplies from its petchem complex in Haldia

MOSCOW (MRC) -- India's private-sector Haldia Petrochemicals (HPL) declared force majeure on supplies on 23 March, a day before the lockdown announcement in the country, reported Argus.

The Indian government announced a complete lockdown from midnight 25 March for 21 days

HPL's cracker complex is expected to close soon, and it is unclear when operations will resume. HPL's sister firm, purified terephthalic acid (PTA) producer MCPI, which has around 1.27mn t/yr of capacity in West Bengal, has also declared force majeure and is expected to completely shut down operations.

HPL operates a cracker with nameplate capacity of 700,000 t/yr of ethylene, 340,000 t/yr of propylene, 150,000 t/yr of benzene, 100,000 t/yr of butadiene and 98,000 t/yr of methyl tert-butyl ether (MTBE). The producer also has 350,000 t/yr polypropylene, 345,000 t/yr high-density polyethylene (HDPE) and swing 365,000 t/yr linear low-density polyethylene (LLDPE) production lines.

As MRC wrote before, on 20 September 2019, a major fire broke out at Haldia Petrochemicals’ cracker in India. The company's plant restarted operations in early October, 2019, after a nearly 10-day closure caused by a September 20 fire that had claimed the lives of two employees.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).

Haldia Petrochemicals Ltd is a modern naphtha based petrochemical complex at Haldia, West Bengal, India. Haldia has played the role of a catalyst in emergence of more than 500 downstream processing industries in West Bengal with a capacity to process more than 3,50,000 TPA of polymers, among which are PE and PP.
MRC

MOSCOW (MRC) -- Shandong Chambroad Petrochemicals, has taken its No.1 propylene unit off-stream for a turnaround, according to Apic-online.

A Polymerupdate source in China informed that, the company has started maintenance at the plant on March 25, 2020. The plant is likely to resume production on May 8, 2020.

Located at Shandong province of China, the No. 1 plant has a production capacity of 125,000 mt/year.

As MRC informed before, in September 2018, LyondellBasell announced that Shandong Chambroad Petrochemicals Co. Ltd., (Shandong Chambroad), had selected the LyondellBasell Hostalen "Advance Cascade Process" (Hostalen ACP) technology. The low-pressure slurry process technology will be used for a 350KTA high-density polyethylene (HDPE) unit to be built in their petrochemical complex in Binzhou city, Shandong province, P.R. China.

Propylene is the main feedstock for producing polypropylene (PP).

According to MRC's ScanPlast report, PP shipments to the Russian market were 127,240 tonnes in January 2020, up by 33% year on year. ZapSibNeftekhim's homopolymer PP accounted for the main increase in shipments.

Shandong Chambroad Petrochemicals Co.,Ltd is founded in 1988,whose predecessor is Boxing lubricating oil factory.After more than 20 years of trails and hardships,Chambroad has now developed into a large-scale private petrochamical enterprise intergrating petroleum refining and chemical industry. Besides, Chambroad has successively been awarded "one of top 500 manufacturing enterprise of China" and "one of top 500 chemical enterprise of China".
MRC

MOSCOW (MRC) -- Sinopec Mitsui Chemicals, is presently running its Bisphenol A (BPA) plant at curtailed capacity levels, according to Apic-online.

A Polymerupdate source in China informed that, the company cut down run rates at its plant, to around 80-85% of production capacity levels on March 18, 2020. The lower run rates has been attributed to shortage of feedstock.

Located at Shanghai, China, the plant has a production capacity of 120,000 mt/year.

As MRC reported earlier, Sinopec Mitsui Chemicals Co undertook a planned shutdown for maintenance at its BPA plant in China on August 16, 2018. The plant remained shut until mid-September 2018. Located in Shanghai, China the plant has a production capacity of 120.000 mt/year.

BPA is the main feedstock for the production of polycarbonate (PC).

According to MRC's ScanPlast report, Russia's overall consumption of PC granules (excluding exports from Belarus) totalled 6,700 tonnes in January 2020, up by 43% year on year (4,300 tonnes a year earlier).

Shanghai Sinopec Mitsui Chemicals Co. Ltd. manufactures and distributes chemical products. The company produces and sells bisphenol A and other related chemical products.
MRC

MOSCOW (MRC) -- Hungarian MOL Group has started production of hand and surface sanitizers to offer protection against the coronavirus, Trend reports citing the company.

'Lubricants producer and MOL Group member MOL Lub Ltd. has shifted production of a windshield washer production line at its Almasfuzito plant in only one week. The unit is operating 24/7, in three shifts, producing a daily volume of around 50,000 liters – allowing MOL to contribute to the global fight against COVID-19,' the company said.

The formulas for the two new products have been created on the basis of WHO recommendations, and have been tested and approved by the National Institute of Pharmacy and Nutrition in record time in light of the COVID-19 situation. The ethanol for producing the hand sanitizer has been sourced from Hungary. These new hygienic products are thus being sourced from, and manufactured by, Hungarian firms.

MOL Lub has already shipped the first manufactured volumes to state institutions playing a key role in the fight against coronavirus (e.g., hospitals, waste management companies, public utilities) as directed by the Operative Group set up by the Hungarian government. Production and shipping will be continuous.

MOL Lub is also working to make these products available at its retail outlets to all Hungarians to help ease current shortages.

MOL Hygi is available in 2-liter recyclable plastic bottles for the time being but will also come in smaller sizes as of next month.

MOL Group is also starting production of the sanitizers in Slovakia and Croatia. INA, the Croatian member of the Group, will be producing 50,000 liters of sanitizer for now. In Slovakia, production of the sanitizer was launched at VURUP, also a member of MOL Group.

As MRC informed before, MOL Petrochemicals Company (formerly known as TVK, part of the MOL Group), the only Hungarian producer of olefins and polyolefins, announced force majeure on the supply of polypropylene (PP) from plant No. 4 at the petrochemical complex in Tiszaujvaros (Tiszaujvaros, Hungary) on 23 September 2019.

According to MRC's ScanPlast report, PP shipments to the Russian market were 127,240 tonnes in January 2020, up by 33% year on year. ZapSibNeftekhim's homopolymer PP accounted for the main increase in shipments.

MOL Hungarian Oil and Gas PLC is an integrated oil and gas company. The Company produces crude oil, petroleum products, bitumens, lubricants and natural gas. MOL owns and operates refineries, oil and gas pipelines, service stations, and natural gas storage facilities.
MRC

MOSCOW (MRC) -- At least three car plants in Russia plant to suspend operations to prevent the spread of the coronavirus while they also struggle with a lack of components, reported S&P Global.

Volkswagen Group Rus, a Russian distribution and production unit of German automobile manufacturer Volkswagen ,will suspend operations at its plants in Kaluga and Nizhniy Novgordo from March 30 through April 10 due to a lack of components supplied from European plants, the company's spokeswoman told S&P Global Platts Wednesday.

Last year, the combined of the plants was 215,000 cars.

French multinational vehicle manufacturer Groupe PSA said it will suspend output at its plant in Kaluga region over April 1-10, citing the spread of COVID-19 in Russia and globally, the closure of major European car plants, the suspension of component supplies worldwide, potential risks for employees and the Russian government's recommendations.

Volkswagen Group Rus and Groupe PSA's Russian sites together provided roughly 13% of the country's overall car output in 2019. The latter saw output fall 2.5% year on year to 1.5 million cars, according to Russian automotive analyst Autostat.

New car sales in Russia this year are expected to be lower than the 1.6 million-1.7 million sold in 2019, mostly due to sharp depreciation of the ruble in February-March and expected subsequent weakening of solvent demand and car price inflation, both direct consequences of the currency depreciation.

Forecasts for new car sales this year point to a decline of 5%-15%, according to Autostat.

Steel demand from the auto industry may decline by 200,000-300,000 mt given that about 900 kg of steel goes into making one car.

Polypropylene (PP), polycarbonate (PC) and acrylonitrile-butadiene-styrene (ABS) are used in the production of automotive components.

According to MRC's ScanPlast report, PP shipments to the Russian market were 127,240 tonnes in January 2020, up by 33% year on year. ZapSibNeftekhim's homopolymer PP accounted for the main increase in shipments. At the same time, overall ABS imports to the Russian market decreased in the first month of 2020 by 16% year on year to 2,300 tonnes, according to MRC's DataScope report. This figure was at 2,750 tonnes in January 2019. Imports of material dropped by 6% from 2,440 tonnes a month earlier. ABS imports to the country have continued to decline for the third month in a row.
MRC