Mitsui Chemicals expands mask component production in Japan

MOSCOW (MRC) -- Mitsui Chemicals, Inc. (Tokyo) announced the decision to have wholly owned subsidiary Sunrex Industry Co. Ltd. (President: KAWAHITO Koichiro) expand its production facilities for TEKNOROTE™ mask nose clamps, said the company.

This comes amid increased demand with mask-wearing now having become more common in the effort to contain novel coronavirus infections.

Through this move, the Mitsui Chemicals Group’s production capacity of mask nose clamps will rise by around 150 percent, reaching a level sufficient to supply 3 billion masks per year. Depending on mask demand trends going forward, Mitsui Chemicals will also consider making further expansions to its production facilities for mask nose clamps.

To help prevent the spread of the novel coronavirus, Mitsui Chemicals will continue to bolster its supply system not only for TEKNOROTE™ mask nose clamps but also for a range of other products, including SYNTEX™ MB nonwovens for masks and PS-105-GW nonwovens for use in isolation gowns.

As MRC informed before, Mitsui Prime Advanced Compounds Europe, a joint venture in which Mitsui Chemicals has 75%, Mitsui & Co. 15% and Prime Polymer Co. 10%, has commissioned its first polypropylene (PP) compounding plant in Europe. Located at the Chemelot Industrial Park at Geleen, Netherlands, the facility is designed to produce 30,000 metric tons/year of PP compounds.

According to MRC's ScanPlast report, PP shipments to the Russian market was 457,930 tonnes in January-May 2020 (calculated by the formula production minus export plus import). Deliveris of exclusively PP random copolymer increased.

Mitsui Chemicals is a leading manufacturer and supplier of value added specialty chemicals, plastics and materials for the automotive, healthcare, packaging, agricultural, building, and semiconductor and electronics markets. Mitsui Chemicals is a Japanese Chemicals company, a part of the Mitsui conglomerate. The company has a turnover of around 15 billion USD and has business interests in Japan, Europe, China, Southeast Asia and the USA. The company mainly deals in performance materials, petro and basic chemicals and functional polymeric materials.
MRC

MOSCOW (MRC) -- Eni, Versalis and COREPLA (the National Consortium for the Collection, Recycling and Recovery of Plastic Packaging) have signed an agreement that will see them pool their expertise to collect and recycle plastic packaging, with a particular focus on non-mechanically recyclable plasmix, as per Eni's press release.

The partnership aims to provide a practical and sustainable solution to the recovery of plastic packaging waste on a national scale. Over half of the plastic packaging collected from sorted bins in Italy is currently sent for mechanical recycling to make new products. The remaining portion of mixed post-consumer plastics that are not suitable for mechanical recycling, known as plasmix, now mainly ends up in cement plants, where it replaces fossil fuels, whilst some is used for energy recovery and the remainder sent to landfill. The agreement aims to launch a study plan that will exploit all the plasmix fractions available in the COREPLA chain. The partners will pool their respective expertise in the fields of gasification and chemical recycling by means of pyrolysis. Versalis is, in fact, in the process of designing a first chemical recycling plant using the pyrolysis technology and set to be built in Mantua, in addition to the various mechanical recycling initiatives that the company is spearheading.

A second agreement signed today by Eni and COREPLA aims to establish the feasibility of recovering end-of-life plastics at the innovative plants that Eni is looking into for the Venice bio-refinery, in Porto Marghera, and at the Livorno refinery, for the production of hydrogen and methanol obtained through gasification respectively. Gasification is a technological process for producing syngas that involves a thermal reaction at a controlled high temperature in an enclosed environment, meaning that there are no direct emissions out of chimneys. This takes place under temperature conditions that vitrify the pollutants and render them inert and stable.

COREPLA will make a vital contribution to determining the availability and composition of the plasmix managed through its chain at a national level, in conjunction with various companies specialising in the recovery sector, with a view to making it compatible with the various requirements of the technologies involved.

"The agreements signed with Eni and Versalis are part of a strategy aimed at the complete recovery of plastic» - explains COREPLA President Antonello Ciotti. «We want to be key players in driving a real circular economy that is based on practical and innovative projects, whilst also strengthening Italy’s leading position in an increasingly sustainable chemicals industry. This is a goal we've achieved through technological progress and constant innovation undertaken by Eni, which has this year successfully implemented a major conversion plan for its plants, as with Porto Marghera, with a long-term focus on effectively shaping a greener future. We firmly believe that this path will help us to further our goals and position COREPLA as ready to face new challenges".

"This agreement, which establishes synergies between our respective technological expertise and a wide-reaching industry alliance, will allow us to develop a circular model for plastics at a national level in order to get the very best value out of them even once they have become difficult to recycle mechanically. Today's waste is becoming a precious and sustainable raw material for tomorrow», claims Versalis CEO Daniele Ferrari.

"This agreement represents a further step that Eni is taking along the strategic pathway to decarbonizing its activities. We were the first in the world to turn traditional refineries into refineries that produce high-quality biofuels from used and frying oils, animal fats and other non-edible waste. The goal now is to become a leader in circular mobility products, such as hydrogen and methanol from raw materials that are difficult to recycle", explains Giuseppe Ricci, Chief Refining & Marketing Officer at Eni.

The agreement also provides for the extension of the RiVending project launched at Eni's offices in San Donato Milanese for the recycling of polystyrene stirrers and coffee cups from vending machines, which will now be extended to other Eni and Versalis offices and industrial sites.

The agreement signed today is part of a long-term strategy that will see Eni establish itself as a leader in the production and marketing of decarbonized products. The company is, in fact, adopting a strategic plan, the likes of which have never before been seen in the industry, that will allow it to cut 80% of absolute carbon emissions by 2050. Eni will produce more and more green energy by developing renewables, produce gas, LNG and hydrogen from gas and bio-based raw materials, stripped of CO2 by means of various sequestration and storage projects, and produce biofuels at its bio-refineries, as well as biofuels, methanol and hydrogen from waste and chemical products from renewables and secondary raw materials.

As MRC informed earlier, Italian oil major Eni is planning to create a division to focus on new energy solutions which could be headed by its CFO, as it steps up preparations for a decarbonised future.

We remind that none of the big oil companies currently meet U.N. targets to limit global warming despite the most ambitious targets set by Royal Dutch Shell and Eni.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 595,170 tonnes in the first five month of 2020, up by 10% year on year. Deliveries of all ethylene polymers, except for linear low density polyethylene (LLDPE), rose partially because of an increase in capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market was 457,930 tonnes in January-May 2020 (calculated by the formula production minus export plus import). Deliveris of exclusively PP random copolymer increased.
MRC

MOSCOW (MRC) -- Crude oil futures were trading higher in mid-morning trade in Asia June 26 after positive US economic data buoyed market sentiment about an improved demand outlook, despite fresh outbreaks of COVID-19, reported S&P Global.

At 10:15 am Singapore time (0215 GMT), 26 June, ICE Brent August crude futures were up 51 cents/b (1.24%) from the June 25 settle at USD41.56/b, while the NYMEX August light sweet crude contract was 45 cents/b (1.16%) higher at USD39.17/b.

A US Census Bureau report published June 25 showed that US durable goods orders jumped 15.8% in May, exceeding market expectations. Durable goods orders had contracted by more than 18% in April.

Meanwhile first time US unemployment filings fell to 1.48 million in the week ended June 20, the US Labor Department said, down from 1.51 million the week before. While US initial claims were higher than expected, it was the 12th consecutive week of decline in new claims.

However, a surging number of new coronavirus cases in the US continues to weigh on market sentiment. Data from the COVID Tracking Project showed there were 38,672 positive COVID-19 tests in the US on June 24, a new record high. White House economic adviser Larry Kudlow was quoted in media reports as saying: "There will be shutdowns in individual places or certain stores."

"With fresh outbreaks of COVID-19 in Texas, Florida and California, there is a real threat of this demand recovery stalling. Some states are quarantining travelers from these states and some have halted the reopening of businesses," ANZ analysts said in a note June 26.

On the supply front, resurgent demand and higher price levels could prompt US producers to bring capacity back online, increasing headwinds for crude futures in the near term.

An energy survey by the Dallas Fed published June 24 showed that while 71% of exploration and production firms had some oil production shut in or curtailed over June 10-18, more than a third expected to restart the majority of their production in June and another 20% in July.

"One oil-specific negative that could play out in the near term: despite the mini-correction this week, WTI remains comfortably in the price zone that may ease US production curtailments, which could mean more upward pressure on US inventories and oil sentiment in coming weeks," Stephen Innes, chief global markets analyst at AxiCorp, said in a note June 26.

US commercial crude stocks hit a record 540.82 million barrels in the week ended June 19, latest US Energy Information Administration data showed June 24.

As MRC informed before, 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 595,170 tonnes in the first five month of 2020, up by 10% year on year. Deliveries of all ethylene polymers, except for linear low density polyethylene (LLDPE), rose partially because of an increase in capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market was 457,930 tonnes in January-May 2020 (calculated by the formula production minus export plus import). Deliveris of exclusively PP random copolymer increased.
MRC

1. CVR Refining, HollyFrontier cut jobs at US refineries

MOSCOW (MRC) -- CVR Refining and HollyFrontier Corp have cut their workforce in recent weeks, reported Reuters with reference to three sources, as demand falls due to the ongoing coronavirus pandemic. In recent weeks CVR Refining has laid off approximately 50 salaried employees and HollyFrontier has cut at least 12 jobs, the sources said. HollyFrontier previously said it would lay off about 130 workers at its Cheyenne, Wyoming, refinery as it converts to a renewable diesel facility. CVR and HollyFrontier both declined to comment.


MRC

MOSCOW (MRC) -- US crude oil refining capacity grew by nearly 1 percent in 2019, or 173,650 barrels per day (bpd) to nearly 19 million bpd (MMbpd), a new record, reported Reuters with reference to a report released by the US Energy Information Administration (EIA).

The report on national refining capacity was assembled from reports filed by owners of the nation’s 135 refineries. The reports were filed by Jan. 1, 2020. They do not take into account reduced production levels because of the COVID-19 pandemic.

The number of total refineries was unchanged, but the number of idle plants grew by one to four, the EIA said.

Independent US refiner Marathon Petroleum Corp continues to be the nation’s largest. The combined throughput capacity of the company’s 16 refineries is 3.07 MMbpd, equal to 16% of the national total.

The increase in national capacity came from incremental growth in production capabilities at multiple plants across the country.

Marathon’s capacity grew by 42,285 bpd with increases at the company’s refineries in Garyville, Louisiana, and Catlettsburg, Kentucky, as well as other plants.

Fellow independent Valero Energy Corp, remains the nation’s second-largest refiner at 2.18 MMbpd.

Exxon Mobil Corp, one of the world’s largest corporations, is the third-largest refiner at 1.75 MMbpd. Exxon’s capacity grew by 15,200 bpd, all at the company’s Baton Rouge, Louisiana, refinery.

Phillips 66, also an independent refiner, is the nation’s fourth largest at 1.7 MMbpd.

Chevron Corp, PBF Energy, Royal Dutch Shell Plc, Citgo Petroleum Corp, BP Plc and Koch Industries’ Flint Hills Resources LP are the others among top 10 refiners.

Motiva Enterprises is the 11th largest refiner. Its only refinery is the nation’s largest in Port Arthur, Texas, with a capacity of 607,000 bpd.

The top 10 refiners are evenly divided between independents and integrated oil companies.

As MRC wrote before, Marathon Petroleum Corp will idle its 166,000 barrel-per-day (bpd)refinery in Martinez, California beginning April 27 in response to the coronavirus pandemic’s hit to demand for refined products.

Meanwhile, Marathon Petroleum Corp planned to operate the gasoline-producing fluidic catalytic cracker (FCC) at its 585,000 barrel-per-day (bpd) Galveston Bay Refinery in Texas City, Texas. The 140,000 bpd FCC restarted on 12 April, after repairs following a March 23 brief power outage that shut the unit.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 595,170 tonnes in the first five month of 2020, up by 10% year on year. Deliveries of all ethylene polymers, except for linear low density polyethylene (LLDPE), rose partially because of an increase in capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market was 457,930 tonnes in January-May 2020 (calculated by the formula production minus export plus import). Deliveris of exclusively PP random copolymer increased.
MRC