Output of products from polymers in Russia up by 3.4% in Jan-April 2020

MOSCOW (MRC) -- Russia's output of products from polymers grew in April 2020 by 11.2% year on year due to quarantine restrictions. However, this figure increased by 3.4% year on year in the first four months of 2020, reported MRC analysts.

According to the Russian Federal State Statistics Service, April production of unreinforced and non-combined films decreased to 107,000 tonnes from 110,400 tonnes a month earlier. Output of films products grew in the first four months of 2020 by 12.5% year on year to 402,800 tonnes.

Last month's production of non-porous boards, sheets and films dropped to 32,800 tonnes from 34,200 tonnes in March. Thus, overall output of these products reached 127,400 tonnes in January-April 2020, up by 5.7% year on year.

April production of porous boards, sheets and films was 20,200 tonnes, down by 1.6% month on month. Overall output of these products reached 84,500 tonnes in the first four months of 2020, compared to 80,000 tonnes a year earlier.

April production of plastic bottles and flasks grew to 2,06 bn items from 1,796 bn items a month earlier. Overall output of these plastic products totalled 6,961,000,000 units over the stated period, compared to 6,731,000,000 units a year earlier.

Last month's production of polymer pipes, hoses and fittings was 52,800 tonnes versus 53,900 tonnes in March.
Overall output of these products was 193,700 tonnes in January-April 2020, up by 21.2% year on year.

April production of sacks and bags from ethylene polymers reached 2,419,000,000 units, compared to 2,277,000,000 units a month earlier. Overall output of these plastic products totalled 9,130,000,000 units in the first four months of 2020, compared to 7,956,000,000 units a year earlier.

Last month's production of linoleum and floor coverings was 6,700,000 square metres, compared to 11,900,000 square metres in March. Overall output of these products totalled 40,000,000 square metres over the stated period versus 41,700,000 square metres a year earlier.

April production of plastic windows and door blocks reached 1,521,000 square metres and 64,300 square metres, respectively, versus 1,814,000 square metres and 68,400 square metres a month earlier. Overall output of these plastic products totalled 7,045,000 square metres and 261,800,000 square metres, respectively, compared to 5,841,000 square metres and 266,400 square metres a year earlier.

MRC

MOSCOW (MRC) -- Dow developed and commercialized a new formulated post-consumer recycled (PCR) plastic resin designed for collation shrink film applications in Asia Pacific, said the company.

The new resin is designed with 40 percent PCR content which creates a film with performance comparable to those made with virgin resins. The product, XUS 60921.01, is made with recycled plastics collected domestically within China through Dow’s strategic recycling partners and is made at Dow’s external manufacturing site in Nanjing, China.

"This new resin is helping to make a circular economy for plastics a reality, all without compromising on the performance that brand owners and consumers require,” said Bambang Candra, Asia Pacific commercial vice president, Dow. “As a material science company, we have the responsibility to bring these products to market to prevent plastics from becoming waste in the environment."

The growing demand for e-commerce will require durable, efficient packaging that can protect products throughout their supply chains while producing minimal waste for consumers. Dow’s new formulated PCR resin can provide brands and consumers with comparable performance to collation shrink film made with virgin resins to ensure products are delivered safely while also reducing the amount of plastic waste ending up in our environment.

The resin is designed to be used as 100 percent of the core layer of collation shrink applications and will enable the development of film with 13 – 24 percent recycled content. The new formulated PCR resin also reduces carbon dioxide and energy footprints helping converters, brand owners and retailers meet their sustainability goals, while also giving a new end-of-life to plastics that otherwise would have become waste.

"Developing new end markets for plastic waste will help incentivize collection and recycling, enabling more recycled products to be developed while reducing the amount of plastics entering our environment,” said Suny Markose, Asia Pacific commercial recycling director for Dow.

The new offering is part of Dow’s comprehensive strategy to develop a circular economy for plastics by focusing on integrating recycled content into product offerings.

As MRC informed earlier, in mid-May 2020, USA based Dow Chemical announced plans to shut three polyethylene (PE) plants in the USA and Argentina to avoid piling inventories amid sluggish global demand conditions due to the COVID-19 related lockdown.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 557,060 tonnes in the first three month of 2020, up by 7% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments rose because of the increased capacity utilisation at ZapSibNeftekhim. Demand for LDPE subsided.

The Dow Chemical Company is an American multinational chemical corporation headquartered in Midland, Michigan, United States. Dow is a large producer of plastics, including polystyrene (PS), polyurethane, polyethylene, polypropylene, and synthetic rubber.
MRC

MOSCOW (MRC) -- Dioctyl terephthalate (DOTP) made at SIBUR-Khimprom in Perm has been certified under the European Pharmacopoeia standards for the medical and pharmacological industries, said the company.

The corresponding certificate allowed SIBUR to expand into the segment of medical compounds abroad. Given the COVID-19 pandemic and enormous rise in demand for disposable protective medical items and equipment, many processors have switched from technical compounds to medical ones.

For instance, a Serbian company that is also a customer of SIBUR started producing medical compounds for surgical masks to be used by hospital staff treating coronavirus patients. The mask body is made from a medical compound based on SIBUR's PVC and DOTP. Such masks come with a replaceable filter and can be used up to five times. In May, they have been shipped to the UK, Croatia, Montenegro, Bulgaria and Romania.

An Eastern European company has set up one of its production lines to make medical compounds using SIBUR’s DOTP. Following successful tests in a customer laboratory, the compound is now being supplied to ventilator mask manufacturers in Western Europe.

In Russia, DOTP is a popular product that has been replacing the previously-used DOP plasticiser thanks to its superior medical properties, such as zero phthalate content, low volatility, and absence of smell. For example, it is used to make plastic containers for transfusion of blood and its components. The Russian-made medical compound and items based on it have been certified by the country's Federal Service for Surveillance in Healthcare (Roszdravnadzor), which attests to the high quality of SIBUR's DOTP plasticiser. Medical items produced in Russia using this plasticiser have gained incredible traction, especially amid the pandemic. SIBUR plans to promote the use of DOTP in medical items, building on its European success.

As MRC informed earlier, SIBUR Holdinghas shut its polyethylene (PE) plants for a planned maintenance since 23 May 2020. Based in Russia, the turnaround includes both old and new PE plants of SIBUR which consists of Tomskneftekhim with 270,000 tons/year of low density polyethylene (LDPE) unit, as well as ZapSibNeftekhim with a 700,000 tons/year high density polyethylene (HDPE) unit and 800,000 tons/year linear low density polyethylene (LLDPE)/HDPE swing plant. All PE plants are expected to remain off-stream for about 20 days.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 557,060 tonnes in the first three month of 2020, up by 7% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments rose because of the increased capacity utilisation at ZapSibNeftekhim. Demand for LDPE subsided. At the same time, PP shipments to the Russian market was 267,630 tonnes in January-March 2020, down 20% year on year. Homopolymer PP and PP block copolymers accounted for the main decrease in imports.

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.
MRC

MOSCOW (MRC) -- ExxonMobil and INNIO have signed a long-term extension to their global lubricant collaboration agreement for INNIO’s Jenbacher Type 2, 3, 4, 6 and 9 natural gas engines, said Hydrocarbonprocessing.

Working side by side, the companies will draw on their joint expertise in meeting the evolving needs of natural gas engine lubrication, resulting in the release of a new co-branded gas engine oil and other products in the future.

"We’re pleased to build on our co-engineering working relationship with ExxonMobil,” said Andreas Lippert, Chief Technology Officer at INNIO Group. “Together, we continue to co-develop a range of high-performance gas engine oil technologies for our reliable and highly efficient Jenbacher Type 2, 3, 4, 6 and 9 natural gas engines, helping our customers achieve their business goals in the global energy transformation."

"This collaboration with INNIO enables us to further strengthen our understanding of the application issues that customers face, in order to develop the right lubrication solution,” said Henning Feller, EAME Sales Manager Finished Lubricants.

"By combining our lubrication expertise with INNIO’s 90 years of gas engine innovation expertise, we can achieve one shared goal: to help INNIO’s Jenbacher gas engine customers improve their operational reliability, productivity, profitability and sustainability."

As MRC informed before, in September 2019, ExxonMobil announced plans to spend GBP140 million over the next two years in an additional investment program at its Fife ethylene plant, which has a capacity of more than 800,000 t/y.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 557,060 tonnes in the first three month of 2020, up by 7% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments rose because of the increased capacity utilisation at ZapSibNeftekhim. Demand for LDPE subsided. At the same time, PP shipments to the Russian market was 267,630 tonnes in January-March 2020, down 20% year on year. Homopolymer PP and PP block copolymers accounted for the main decrease in imports.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC

MOSCOW (MRC) -- Japan's estimated gasoline demand in May fell to the lowest monthly level in 37 years as consumers refrained from traveling at the beginning of the month, a period when driving activity typically peaks due to public holidays, reported S&P Global.

Local refiners and traders remained cautious on the gasoline demand recovery prospect in June as people may not actively go out amid concerns over the coronavirus infection despite the recent lifting of the state of emergency.
"We expect the coronavirus pandemic to have an impact [on the gasoline demand] for around a year and the demand is likely to continue making large drops from a year ago," a trader said Thursday. "With the summer demand season approaching, we expect to see a gradual demand recovery."

Japan on May 25 lifted the remaining state of emergency measures for Tokyo, Chiba, Saitama, Kanagawa in the east and Hokkaido in the north, ahead of their May 31 expiry after the state of emergency was first declared April 7.

"The lifting of the last five prefectures from the state of emergency early this week should provide some support to gasoil demand as they account for about a third of the country's GDP," S&P Global Platts Analytics said in a note on Wednesday. "Still, our current base case assumes a contraction in 2020 GDP by 4.5% and gasoil demand is likely to stay weak."

While Japanese refiners are keeping their gasoline output relatively short over the ailing domestic demand, at least one refiner said it does not rule out the possibility of importing the motor fuel should the recovery exceed its expectations.

"Following the lifting of the state of emergency, we expect the (gasoline) demand to recover gradually from June," a source with the Japanese refiner said Thursday. "We do not expect to see a need for imports from a V-shape recovery but we do not rule out an option for the product import if the demand recovery exceeds our expectation."

Japan's gasoline demand in May is estimated at 2.92 million kl, or 592,459 b/d, down 27% year on year, with gasoil demand estimated down 11% year on year to 2.4 million kl, or 486,952 b/d, JXTG Nippon Oil & Energy, the country's largest refiner, said Thursday.

That would put gasoline demand at the lowest for the month since 1983, when domestic gasoline sales stood at 2.88 million kl, and gasoil demand at the lowest for the month since 2010, when sales stood at 2.37 million kl, according to the Ministry of Economy, Trade and Industry data.

JXTG attributed the drop in gasoline demand to the state of emergency measures that had requested the public to refrain from going out during the Golden Week national holidays over late April to early May. The gasoil demand also slid as the restraint measures reduced the fuel demand for public buses and construction activity.

Specifically over the Golden Week national holidays, Japanese gasoline demand plunged 34% year on year while gasoil demand increased slightly from a year earlier because of greater demand for home delivery despite less demand for holiday travel, according to Tsutomu Sugimori, president of JXTG Holdings, the parent of the refining unit.

A potential increase in Japanese appetite for imports is considered supportive to the Asian gasoline complex, with buyers potentially looking to purchase barrels in the wider region to fill their requirements, market sources said.

South Korean refiners – which are the nearest source of cargoes for Japan -- are slated to go into a period of heavy maintenance in June.

"Hopefully the increased demand will spill over to here (Singapore), and help us absorb some supply," a Singapore-based source said. Of late, the Asian gasoline complex has seen a fresh wave of bearishness as participants questioned the extent of the regional demand recovery.

The FOB Singapore 92 RON gasoline crack against front-month ICE Brent crude futures was even assessed at minus $1.89/b at the 0830 GMT Asian close Wednesday, despite momentarily recovering to positive territory on March 19 and March 20, according to Platts data.

The Asian gasoil market has rebounded from record lows, with the strength primarily stemming from tighter supply balances in the region. As such, traders said the region is able to tackle excess supplies by slowly digesting volumes thanks to the bursts of demand that have emerged following the rollback of some coronavirus-related containment measures in Asian countries.

At the Asian close Wednesday, the cash differential for FOB Singapore 10 ppm sulfur gasoil cargoes was assessed up 31 cents/b at a two-month high of minus 29 cents/b to the Mean of Platts Singapore gasoil assessments.

As MRC wrote before, JXTG Nippon Oil and Energy is in plans to restart its cracker following an unplanned outage. The company is likely to resume operations at the cracker this week. The cracker was shut owing to technical issues on May 4, 2020. Located at Kawasaki in Japan, the cracker has an ethylene production capacity of 460,000 mt/year and propylene production capacity of 235,000 mt/year.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 557,060 tonnes in the first three month of 2020, up by 7% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments rose because of the increased capacity utilisation at ZapSibNeftekhim. Demand for LDPE subsided. At the same time, PP shipments to the Russian market was 267,630 tonnes in January-March 2020, down 20% year on year. Homopolymer PP and PP block copolymers accounted for the main decrease in imports.
MRC