Chemplast Sanmar to shut Cuddalore PVC plant for maintenance in late September

MOSCOW (MRC) -- Chemplast Sanmar is likely to undertake a planned shutdown at its Cuddalore polyvinyl chloride (PVC) unit this month, as per Apic-online.

A Polymerupdate source in India informed that the company is likely to start maintenance at the unit on September 27, 2020. The unit is expected to remain off-line for about 4-5 days.

Located in Tamil Nadu, India, the Cuddalore PVC unit has a production capacity of 300,000 mt/year.

As MRC reported earlier, the company last conducted a turnaround at this plant from 22 September, 2019, to 3 October, 2019.

According to MRC's ScanPlast report, Russia's overall PVC production reached 632,500 tonnes in the first seven months of 2020, which, in fact, corresponded to the last year's figure. Two producers managed to increase their PVC output.

Chemplast Sanmar Limited is a chemical company based in Chennai, Tamil Nadu. It is part of Sanmar Group which has businesses in Chemicals, Shipping, Engineering and Metals. It has a turnover of over Rs.65 billion and a presence in some 25 businesses, with manufacturing units spread over numerous locations in India.Chemplast Sanmar's manufacturing facilities are located at Mettur, Panruti, Cuddalore and Ponneri in Tamil Nadu, Shinoli in Maharashtra, and Karaikal in the Union Territory of Puducherry. It is a major manufacturer of PVC resins, chlorochemicals and piping systems. The Cuddalore PVC project commissioned in September 2009 is the largest such project to come up in Tamil Nadu. It's aggregate capacity of 235,000 tons makes it one of the largest PVC players in India.

Sasa Polyester Sanayi began producing PET at new plant in Turkey

MOSCOW (MRC) -- Sasa Polyester Sanayi began producing polyethylene Terephthalate (PET) in Adana, Turkey in mid-September, said Hibya.

Early stage capacity totalled 500 tonnes/day. The new plant can produce PET bottle, film and fibre grades and production will be distributed among the grades depending on the demand from the market. The new plant will have an effective capacity of 120,000 tonnes this year.

As it was written earlier, Sasa Polyester Sanayi signed a licence and technical service agreement with US-based nylon and fibre producer INVISTA, paving the way for the construction of a 1.5m tonne/year purified terephthalic acid (PTA) production facility. The project investment would amount to USD935m.

As per ICIS-MRC Price Report, demand continued to subside in the Russian polyethylene terephthalate (PET) market. Some sellers reported a decrease in spot market activity compared to the beginning of the month. Some Russian factories have free volumes of PET chips. On the other hand, a large PET preform producer reported that he had met its target sales of finished products in the current month and that consumption of finished products was quite high.

SASA, headquartered in Seyhan in Adana province, produces polyester staple fibres, specialty polymers and yarns.Its polyester production capacity at the end of 2019 was 700,000 tonne/year.

Celanese increases September prices of EVA emulsions in China

MOSCOW (MRC) -- Celanese Corporation, a global technology and specialty materials company, and a global leader in vinyl acetate ethylene (EVA) emulsions, has announced an increase in its September prices of vinyl acetate-based emulsions sold in China, as per the company's press release.

Thus, the company's prices of EVA emulsions rose by CNY300/mt for China, effective September 15, 2020, or as contracts otherwise allow.

The price increases above are for orders shipped immediately, or as contracts otherwise allow, and are incremental to any previously announced rises.

As MRC reported earlier, Celanese last raised its prices of EVA emulsions by CNY200/mt on 26 August, 2020.

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.

Dow Chemical to refinance debt

MOSCOW (MRC) -- Dow has recently announced plans to refinance up to USD1.8 billion in senior bonds, including a USD1.25 billion term loan and up to USD550 million in bonds previously issued by Dow and legacy companies Union Carbide and Rohm and Haas, reported Chemweek.

The debt that will be refinanced is mostly due in 2023, and have varying interest rates. The new bonds will be due in 2030 and 2050, and pricing has not been determined.

Part of the refinancing will entail the term loan, and part of it entails a cash tender offer for up to USD550 million in a series of bonds, with the tender offer expiring on 14 September.

“Dow is taking advantage of the low interest rate environment to extend maturities and keep interest costs low,” says John Rogers, senior vice president at Moody's Investors Service (New York, New York). “Credit metrics are likely to remain very weak relative to 2019 despite the expectation for a substantial improvement in performance in the back half of the year from second quarter levels.” Moody’s has rated the new bonds ‘Baa2.’

Fitch Ratings (New York, New York) rates the new debt ‘BBB+,’ reflecting “Dow's significant scale and diversification, relatively high margins, consistently strong cash flow generation and low cost position offset by its heightened exposure to hydrocarbons,” the ratings agency says. “Fitch believes Dow retains deleveraging capacity in a weaker macroeconomic environment,” it adds.

As MRC informed previously, Dow said its sites along the US Gulf Coast reported no major damage from Hurricane Laura. Dow’s sites in Sabine, Beaumont, Deer Park, La Porte, Bayport and Texas City, Texas shut down operations prior to Laura making landfall. Dow's Freeport, Texas site continued operating as did facilities across Louisiana. Dow said it has not identified any significant structural damage or flooding at any of the facilities.

We remind that Dow Chemical conducted a 45-day scheduled maintenance at its propane dehydrogenation (PDH)unit in Freeport, Texas, from 8 July, 2020. This PDH unit has the capacity of 750,000 mt/y of propylene.

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

According to MRC's ScanPlast report, Russia's overall PE production totalled 1,712,400 tonnes in the first seven months of 2020, up by 58% year on year. Linear low density polyethylene (LLDPE) accounted for the greatest increase in the output. At the same time, overall PP production in Russia increased in January-July 2020 by 24% year on year to 1,063,700 tonne. ZapSibNeftekhim accounted for the main increase in the output.

The Dow Chemical Company is an American multinational chemical corporation. Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.

PetroChina Ningxia completes turnaround at PP plant in China

MOSCOW (MRC) -- PetroChina Ningxia PC has brought on-stream its polypropylene (PP) plant following a turnaround, according to Apic-online.

A Polymerupdate source in China informed that, the company resumed operations at the plant on August 18, 2020. The plant was shut for maintenance on July 1, 2020.

Located at Yinchuan, China, the PP plant has a production capacity of 110,000 mt/year.

As MRC reported earlier, PetroChina has nearly doubled the amount of Russian crude being processed at its refinery in Dalian, the company’s biggest, since January 2018, as a new supply agreement had come into effect. The Dalian Petrochemical Corp, located in the northeast port city of Dalian, was expected to process 13 million tonnes, or 260,000 bpd of Russian pipeline crude in 2018, up by about 85 to 90 percent from the previous year’s level. Dalian has the capacity to process about 410,000 bpd of crude. The increase follows an agreement worked out between the Russian and Chinese governments under which Russia’s top oil producer Rosneft was to supply 30 million tonnes of ESPO Blend crude to PetroChina in 2018, or about 600,000 bpd. That would have represented an increase of 50 percent over 2017 volumes.

According to MRC's ScanPlast report, overall PP production in Russia increased in January-July 2020 by 24% year on year to 1,063,700 tonne. ZapSibNeftekhim accounted for the main increase in the output.

PetroChina Company Limited, is a Chinese oil and gas company and is the listed arm of state-owned China National Petroleum Corporation, headquartered in Dongcheng District, Beijing. It is China's biggest oil producer.