PTTGC to shut LDPE plant for turnaround in September

MOSCOW (MRC) -- PTT Global Chemical (PTTGC) is in plans to undertake a planned shutdown at its low density polyethylene (LDPE) plant in September, reported S&P Global with reference to a company source.

The plant is expected to remain shut for a turnaround for 24 days.

Located at Map Ta Phut in Thailand, the LDPE plant has a production capacity of 345,000 mt/year.

As MRC wrote before, PTTGC undertook a planned shutdown at its LDPE plant for turnaround on July 7, 2019. The plant remained shut for around 3 weeks.

PTT has a total capacity of 800,000 mt/year of high density polyethylene (HDPE), 345,000 mt/year of LDPE and 800,000 mt/year of LLDPE at the same site.

According to MRC's ScanPlast report, June estimated LDPE consumption in Russia grew to 55,260 tonnes from 45,490 tonnes a month earlier. Kazanorgsintez raised its PE output after a spring shutdown for a scheduled turnaround. Russia's estimated LDPE consumption rose to 291,270 tonnes in January-June 2020, up by 5% year on year. Russian producers raised their production, and LDPE imports also increased.

PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.
MRC

MOSCOW (MRC) -- Celanese Corporation, a global specialty materials company, has increased August list and off-list selling prices for Vinyl Acetate Monomer (VAM) sold in Europe, Middle East and Africa, as per the company's press release.

The price increase below is effective for orders shipped on or after August 14, 2020, or as contracts otherwise allow, and are incremental to any previously announced increases.

Thus, VAM prices rose by EUR100/mt for Europe, the Middle East & Africa.

As MRC reported earlier, Celanese last raised its VAM prices for the stated above regions on July 1, 2020, by the same amount of EUR100/mt.

According to MRC's DataScope report, June EVA imports to Russia fell by 22,5% year on year to 2,940 tonnes from 3,800 tonnes a year earlier, and overall imports of this grade of ethylene copolymer into the Russian Federation dropped in January-June 2020 by 8,16% year on year to 17,440 tonnes (18,980 tonnes a year earlier).

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 7,700 employees worldwide and had 2019 net sales of USD6.3 billion.
MRC

1. Ineos Styrolution Canada donates to Ontario mental health service organizations

MOSCOW (MRC) -- As demand increases for COVID-19 related mental health programs, material supplier Ineos Styrolution Canada been working with Ontario organizations St. Clair Child & Youth Services and Canadian Mental Health Association Lambton Kent to fund virtual, mental health programs for their community, said Canplastics. After the COVID-19 pandemic forced the cancellation of their Outreach Program, a cornerstone summer activity for “at-risk” children within the community, Ineos Styrolution Canada, delivered a USD10,000 grant through the Ineos Community Fund to St. Clair Child & Youth Services. This grant will used for the creation of virtual summer camps, ensuring that staff will have the ability to stay connected with families during challenging times.



MRC

MOSCOW (MRC) -- China’s refinery output jumped 12% in July from the same month a year earlier, hitting the highest on record for any single month, as several major state plants resumed operations after maintenance overhauls, said Hydrocarbonprocessing.

China processed 59.56 million tonnes of crude oil last month, according to data released by the National Bureau of Statistics (NBS) on Friday, equivalent to about 14.03 million barrels per day (bpd). Throughput for the first seven months totalled 378.65 million tonnes, or about 12.98 million bpd, up 2.3% from the same period a year ago.

Two of Sinopec Corp’s top plants - Zhenhai and Tianjin - and PetroChina’s Dalian plant resumed production after being off-line for months. But the elevated production came amid slowing demand for diesel and gasoline as severe floods hit provinces along the middle and lower reaches of Yangtze River for much of July, leading to brimming inventories and signalling potential cutbacks in fuel processing down the line.

Run rates at independent refineries across China have already fallen to around 70% this week from near 80% last month, according to China-based Longzhong consultancy. “Stocks were very high, near the highest levels seen in February when the country was worst hit by the coronavirus, as floods stalled road traffic and slowed down construction,” said Wang Zhao, senior analyst with Sublime Information Group, ahead of the data release.

The NBS data also showed China’s domestic crude oil output rose 0.6% last month compared with the same month a year ago to 16.46 million tonnes, or 3.88 million bpd. Output for the January-July period reached 113.5 million tonnes, up 1.4% over the year-ago period.

Meanwhile, natural gas output grew 4.8% last month from a year earlier to 14.2 billion cubic metres (bcm), and production for the first seven months of the year climbed 9.5% to 108.3 bcm.

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

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
MRC

MOSCOW (MRC) -- China’s Sinopec Corp has merged two subsidiary refineries in Guangdong, two company sources said, as the state refining giant looks to improve operations in the face of rising competition in South China, said Reuters.

The company in July combined the newly launched Zhongke refinery complex and a neighbouring old plant Dongxing Petrochemical, both based in the coastal city of Zhanjiang, and named the merged entity Zhongke Refining and Chemical Co.

Guangdong province is China’s top oil-consuming region. Sinopec alone operates nearly 1 million barrels per day (bpd) of refining capacity in the province and rival PetroChina is building a new 400,000 bpd refinery. “It’s part of Sinopec’s strategy to form regional refining hubs so to be more integrated into feedstock supply and crude oil purchases,” said one Sinopec official.

Both sources declined to be named due to company policy. Sinopec did not immediately respond to a request for comment. The new entity has a crude refining capacity of 300,000 bpd and is due to start a new 800,000 tonne per year ethylene complex in September at the Zhongke plant.

The older Dongxing plant, which operates a 100,000-bpd crude unit, has since 2017 become China’s leading processor of U.S. crude oil, mostly of low sulfur quality that fits the plant’s configuration, said a second official. Between 2017 and 2019, Dongxing processed about 15 million barrels of West Texas Intermediate crude, replacing some of its previous regular imports from West Africa.

After a lull in U.S. oil imports in 2019 due to souring relations with Washington, China since earlier this year has resumed U.S. oil purchases following the Phase 1 trade deal agreed in January. Dongxing is slated to receive 1 million barrels of WTI crude each month between June and October, the second source said. WTI crude typically gives a high yield of naphtha, a feedstock needed for the start-up of the Zhongke ethylene plant.

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

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
MRC