Indorama Ventures becomes first chemical company TCFD supporter reinforcing sustainability in Thailand

MOSCOW (MRC) -- Indorama Ventures Public Company Limited (IVL), a global chemical producer, has become a Task Force on Climate-Related Financial Disclosures (TCFD) Supporter, according to IVL's press release.

IVL is the first chemical company in Thailand and the second chemical company in Southeast Asia to become a TCFD supporter by volunteering to comply with TCFD recommendations and supporting their climate change agenda. Becoming an official Supporter cements the company's commitment towards and leadership in sustainability, embedding Environmental, Social and Governance (ESG) factors in IVL's business operations.

The TCFD was created in 2015 by the Financial Stability Board (FSB) to develop consistent climate-related financial risk disclosures for companies, banks, and investors when providing information to stakeholders. TCFD recommendations are globally recognized for climate-related risk management and disclosure from the perspective of financial institutions. IVL also conducts scenario analyses that adopt TCFD recommendations as guidelines for climate change strategy. These sensitivity analyses cover impacts on the company's productions, revenues and EBITDA.

Following the TCFD recommendations, IVL has applied the AQUEDUCT water risk atlas to forecast changes in future water stress and to identify sites that face the most significant risk of water demand and supply in the future. The results of these studies have been incorporated into the company's long-term adoption measures, which allow the management to make informed and lasting decisions for IVL's sustainability. Furthermore, transparent disclosures have enabled financial institutions, ESG funds, and investors to better access IVL's data, providing benefits such as having adequate information for investment decisions.

Dr. Deepak Parikh, Chief Strategy Officer at Indorama Ventures, said, "We are honored to be Thailand's first chemical company to become a TCFD Supporter as it is a leading global organization driving the climate change agenda. This reflects IVL's commitment to enhancing financial disclosures that improve business evaluation, create positive impact to sustainable investment and make economies more resilient and stable. The TCFD recommendations are recognized worldwide for risk management related to climate change and also a meaningful step in IVL's global sustainability."

As MRC reported earlier, in March 2020, Indorama Ventures Limited announced that the company decided to extend the pre-construction period of the purified terephthalic acid-polyethylene terephthalate (PTA-PET) plant in Corpus Christi, Texas through the end of 2020. Christi Polymers LLC (CCP), a joint venture among certain subsidiaries of Indorama Ventures Holding, Alpek and Far Eastern Investment (Holding) Limited was created to acquire and complete construction of an integrated PTA-PET plant in Corpus Christi. The completion of the project is expected to be in 2023.

According to MRC's ScanPlast report, May estimated PET consumption in Russia amounted to 70,170 tonnes, which corresponds to the level of consumption last year (70,450 tonnes). In total for the period January - May of this year, the estimated PET consumption in the Russian Federation amounted to 304,310 tonnes of material. This is 3% lower than the same indicator in 2019.

Indorama Ventures Public Company Limited, listed in Thailand, is one of the world's leading petrochemicals producers, a global manufacturing footprint with 59 sites in 20 countries across Africa, Asia, Europe and North America. The company's portfolio is comprises necessities and high value-added (HVA) categories of polymers, fibers, and packaging. Indorama Ventures has approx. 24,000 employees worldwide and consolidated revenue of USD 11.4 billion in 2019.
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MOSCOW (MRC) -- Imports of suspension polyvinyl chloride (SPVC) into Russia totalled 13,800 tonnes in the first half of 2020, up by 5% year on year, whereas exports grew by 7% year on year, according to MRC's DataScope report.

Last month's SPVC imports to Russia increased to 5,800 tonnes from 4,000 tonnes in May. Seasonal factors and upcoming shutdowns for maintenance at the largest Russian plants became the main reason for higher imports. Thus, overall imports totalled 13,800 tonnes in January-June 2020 versus 13,100 tonnes a year earlier.

US resin accounted for the main increase in imports, and purchasing of polymer in Europe also rose significantly.
Russian producers reduced their SPVC exports last month because of stronger demand from the domestic market. June exports of suspension did not exceed 16,400 tonnes, compared to 19,200 tonnes a month earlier. Thus, overall PVC exports totalled 110,400 tonnes in January-June 2020 versus 102,900 tonnes a year earlier.

MRC

1. IEA raises 2020 oil demand forecast but oil refining may fall more than IEA anticipates

The International Energy Agency (IEA) bumped up its 2020 oil demand forecast on Friday but warned that the spread of COVID-19 posed a risk to the outlook. But oil refining activity in 2020 is set to fall by more than the IEA anticipated last month and to grow less in 2021, reported Reuters with reference to its statement. The Paris-based IEA raised its forecast to 92.1 million barrels per day (bpd), up 400,000 bpd from its outlook last month, citing a smaller-than-expected second-quarter decline. "While the oil market has undoubtedly made progress ... the large, and in some countries, accelerating number of COVID-19 cases is a disturbing reminder that the pandemic is not under control and the risk to our market outlook is almost certainly to the downside," the IEA said in its monthly report.



MRC

MOSCOW (MRC) -- Crude oil futures were steady to lower in mid-morning trade in Asia July 8 as the market continued to be supported by compliance with OPEC+ production cuts, with further gains were capped by rising COVID-19 case counts in the US, reported S&P Global.

At 10 am Singapore time (0200 GMT), ICE Brent September crude futures were down 11 cents/b (0.26%) from the July 7 settle at USD42.97/b, while the NYMEX August light sweet crude contract was 11 cents/b (0.27%) lower at USD40.51/b.

The number of confirmed coronavirus cases in the US is nearing 3 million amid a surge in new infections across California, Texas, Florida and Arizona, latest data from John Hopkins University showed. Australia's second-largest city, Melbourne, has also re-imposed strict lockdown measures for six weeks after a spike in infections.

"Oil price rally runs on thin ice amid resurgence of COVID-19 cases," ANZ analysts said in a note July 8.

However expectations of further inventory withdrawals in the US and continued compliance with OPEC+ production cuts was keeping market sentiment positive, providing enough support to keep crude prices rangebound.

OPEC's crude output in June hit a three-decade low of 22.31 million b/d, according to an S&P Global Platts survey. This pushed the group's compliance to 106% of its committed production cuts, up from 85% in May, according to Platt's calculations.

"Without a significant shift in the narrative, price action is floundering as traders become more accustomed to minor retracements and rallies, while taking a more noticably defensive posture, not wanting to run with the bull or bear baton too far ahead of the oil market's immediate economic realities," AxiCorp chief global markets analyst Stephen Innes said in a note July 8.

The US Energy Information Administration in its monthly report published July 7 boosted its 2020 outlook for crude futures and US oil production on OPEC+ supply cuts and rising demand after many regions eased movement restrictions and lifted lockdowns in June.

The EIA now sees Brent prices averaging USD40.50/b in 2020 and expects output to average 11.63 million b/d in they year, up 70,000 b/d from its June forecast, and forecast global oil demand contraction will fall to 8.15 million b/d, down from 8.34 million b/d projected last month.

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

MOSCOW (MRC) -- Ningxia Baofeng Energy has taken off-stream its (methanol-to-olefins) MTO unit for a maintenance turnaround, as per Apic-online.

A Polymerupdate source in China informed that, the company halted operations at the unit on July 1, 2020. The unit is likely to remain shut till end-July, 2020.

Located at Yinchuan, Ningxia, China, the MTO unit has an ethylene production capacity of 300,000 mt/year and propylene capacity of 300,000 mt/year.

As MRC wrote previously, in June 2019, Johnson Matthey (JM) announced that Ningxia Baofeng Energy Group had "successfully" commissioned a new methanol plant at Ningxia Baofeng's 600,000-t/y coal-to-olefins complex in Ningxia Province, China. The 6,600-t/d methanol unit, based on technology from JM, utilizes syngas feedstock and combines advanced JM catalysts to produce stabilized methanol, which is used to produce olefins in a downstream facility.

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