Russian oil refineries cut gasoline output to 15-year low in May

MOSCOW (MRC) -- Russian oil refineries cut gasoline output to a 15-year low of 2.477 million tons in May amid a global deal to curb crude supplies and coronavirus-related lockdowns, energy ministry data and Reuters calculations showed.

They also showed that volumes of primary oil processing REF-RU-TPUT declined to a seven-year low of 21 million tons last month.

Demand for fuel has been dented by the economic fallout from the COVID-19 pandemic and lockdowns to combat it.

A global deal to cut oil production in order to bolster prices has also led to the decline in refining volumes.

The data showed primary oil processing volumes fell in May by 7.2% on a daily basis from April. Seasonal maintenance of refineries also led to lower output.

As MRC informed before, Russia may further cut overseas supplies of its Urals oil next month due to rising demand from domestic refineries as coronavirus-related restrictions ease.

We reminad that global oil consumption cut by up to a third in Q1 2020. What happens next in the oil market depends on how quickly and completely the global economy emerges from lockdown, and whether the recessionary hit lingers through the rest of this year and into 2021.

Earlier this year, BP said the deadly coronavirus outbreak could cut global oil demand growth by 40 per cent in 2020, putting pressure on Opec producers and Russia to curb supplies to keep prices in check.

We remind that, in September 2019, six world's major petrochemical companies in Flanders, Belgium, North Rhine-Westphalia, Germany, and the Netherlands (Trilateral Region) announced the creation of a consortium to jointly investigate how naphtha or gas steam crackers could be operated using renewable electricity instead of fossil fuels. The Cracker of the Future consortium, which includes BASF, Borealis, BP, LyondellBasell, SABIC and Total, aims to produce base chemicals while also significantly reducing carbon emissions. The companies agreed to invest in R&D and knowledge sharing as they assess the possibility of transitioning their base chemical production to renewable electricity.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 721,290 tonnes in the first four month of 2020, up by 4% year on year. Low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) shipments grew partially because of the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply exclusively of PP random copolymer increased.
MRC

MOSCOW (MRC) -- Jilin Petrochemical, has taken off-stream its No. 3 Methyl methacrylate (MMA) unit for a turnaround, as per Apic-online.

A Polymerupdate source in China informed that, the company started maintenance at the unit on June 15, 2020. The unit is expected to remain off-line for about two weeks.

Located in Jilin, China, the No. 3 MMA unit has a production capacity of 50,000 mt/year.

We remind that, as MRC reported earlier, Roehm has planned to take off-stream its MMA plant in June 2020. The company is likely to start turnaround at the plant on June 5, 2020. The plant is expected to remain under maintenance for about 10 days. Located in Wesseling, Germany, the plant has a production capacity of 95,000 mt/year.

The principal application, consuming approximately 75% of the MMA, is the manufacture of polymethyl methacrylate acrylic plastics (PMMA). Methyl methacrylate is also used for the production of the co-polymer methyl methacrylate-butadiene-styrene (MBS), used as a modifier for polyvinyl chloride (PVC).

According to MRC's DataScope report, exports of suspension polyvinyl chloride (SPVC) from Russia reached about 92,200 tonnes in the first five months of 2020, up by 10% year on year. At the same time, PVC imports to the country grew by 1% year on year. Last month's exports of Russian suspension (excluding shipments to the countries of the Customs Union ) were about 19,900 tonnes, compared to 23,600 tonnes in April. Thus, overall exports totalled 92,200 tonnes in the first five months of 2020 versus 83,800 tonnes a year earlier.
MRC

MOSCOW (MRC) -- Plastic additive manufacturer BASF has extended its dispersion portfolio at its facility in Huizhou, South China, said Packaging-gateway.

The expansion will enhance the company’s production capacities in Shanghai which caters the East China region.

This will not only allow the company to better cater the growing packaging markets in South China but also benefit the customers as lead-times decrease with increased proximity to material supply.

It will also see reduction in energy consumption and CO2 emissions. BASF Asia Pacific business management, resins and additives vice-president Sylvain Huguenard said: “Moving closer to our growing customer base in South China is part of our corporate strategy.

"It will improve our flexibility to better and quicker serve our customers, also help our customers reduce logistic costs and increase productivity. “Our customers in South China have appreciated the move and are working closely with us to qualify the products from the Huizhou plant."

We remind that BASF has restarted its No. 1 steam cracker following a maintenance turnaorund. Thus, the company resumed operations at the plant on September 30, 2019. The plant was shut for maintenance in mid-August, 2019. Located at Ludwigshafen in Germany, the No. 1 cracker has an ethylene production capacity of 235,000 mt/year and a propylene production capacity of 125,000 mt/year.

Ethylene and propylene are feedstocks for producing 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.

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. BASF generated sales of EUR59 billion in 2019.
MRC

MOSCOW (MRC) -- Ukraine's polypropylene (PP) imports to the Ukrainian market totalled 47,700 tonnes in the first five months of 2020, down by 16% year on year. Shipments of virtually all grades of propylene polymers decreased, according to a MRC's DataScope report.

May PP imports into Ukraine rose to 8,700 tonnes from 8,100 tonnes a month earlier, which was still lower than in the previous years. Overall imports of propylene polymers reached 47,700 tonnes in January-May 2020, compared to 56,500 tonnes a year earlier. Demand for all grades of propylene polymers decreased, but propylene block copolymers (PP block copolymers) accounted for the largest reduction.

The structure of PP imports by grades looked the following way over the stated period.

May imports of propylene homopolymers (homopolymer PP) to the Ukrainian market grew to 6,600 tonnes from 5,800 tonnes a month earlier, shipments of injection moulding homopolymer PP from Azerbaijan and Saudi Arabia were resumed after the pause in April. Overall imports of homopolymer PP imports totalled 37,000 tonnes in January-May 2020, compared to 44,100 tonnes a year earlier.

Last month's imports of PP block copolymers were slightly over 700 tonnes, compared to 800 tonnes in April, local companies reduced their purchasing of injection moulding PP. 4,100 tonnes of PP block copolymers were imported in the first five months of 2020 versus 5,400 tonnes a year ealier.

May imports of propylene statistical copolymers (PP random copolymer) remained at the level as of a month earlier, totalling 1,200 tonnes, local companies reduced their purchasing of pipe grade material, whereas demand for injection moulding PP random copolymer increased. Overall imports of PP random copolymer reached 5,800 tonnes in January-May 2020, compared to 6,400 tonnes a year earlier.

Overall imports of other propylene copolymers totalled slightly less than 800 tonnes over the stated period.

MRC

MOSCOW (MRC) -- Overall imports of unmixed polyvinyl chloride (PVC) into Belarus totalled 12,800 tonnes in the first four months of 2020, which corresponds to the same figure a year earlier, according to MRC's DataScope report.

According to the Statistical Committee of the Republic of Belarus, local converters reduced their purchasing of PVC in April 2020 under the pressure of weaker demand for finished products because of the coronavirus pandemic, overall imports totalled 2,600 tonnes versus 3,500 tonnes a month earlier.

Thus, imports of unmixed PVC into the country reached 12,800 tonnes in January-April 2020, which corresponds to the last year's figure.

Russian producers with the share of about 82% of the Belarusian market were the key suppliers of resin to Belarus over the stated period. Producers from Germany and Ukraine with the share of approximately 7% each were the second and third largest suppliers, respectively.

MRC