Azelis to acquire personal care products distributor in China

MOSCOW (MRC) -- Azelis is delighted to announce that it has signed an agreement to acquire 100% of the shares of Ixom’s Bronson and Jacobs Hong Kong Ltd business and its fully owned subsidiary in Shanghai (Bronson and Jacobs China), said the company.

Bronson and Jacobs China, specialized in the distribution of personal care ingredients and predominantly for skin care, represents many global principals, and has offices in Hong Kong, Shanghai and Guangzhou. The office in Guangzhou houses a personal care lab.

The acquisition of Bronson and Jacobs China, following on the acquisition of CosBond in April 2020, will additionally strengthen Azelis’ footprint in the Chinese personal care market. It will also enable Azelis to better serve several key multinational customers in China. Growth in China, the second largest economy worldwide, is a prime strategic objective for Azelis. The transaction, consistent with Azelis' corporate strategy of complementing organic growth with strategic acquisitions, is expected to close within two months.

The acquisition of Bronson and Jacobs China illustrates the support provided by EQT since the initial acquisition of Azelis. EQT is confident that the expanded range of services and global reach provided by this acquisition will continue to bring benefits to customers and principals of the combined group.

As MRC informed earlier, Azelis has opened a new application and training center in Istanbul, Turkey. This center will service the Turkish food, personal care and pharma markets and will offer product advice, formulation development and technical research. Next to that, it will host customer meetings, interactive formulation workshops, supplier meetings and internal technical trainings.

We remind that Russia's output of chemical products rose in September 2020 by 6.7% year on year. At the same time, production of basic chemicals increased by 6.1% year on year in the first nine months of 2020, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-September output. Last month's production of primary polymers decreased to 852,000 tonnes from 888,000 tonnes in August due to shutdowns in Tomsk, Ufa and Kazan. Overall output of polymers in primary form totalled 7,480,000 tonnes over the stated period, up by 16.4% year on year.
MRC

MOSCOW (MRC) -- Reliance Industries (RIL) is on track to restart its polypropylene (PP) unit in Jamnagar, India as the company is completing the 20 days maintenance works, reported CommoPlast.

The unit was taken offline on 15 October and would come back online on 5 November 2020.

The plant has an annual capacity of 480,000 tons/year.

As MRC informed earlier, in September 2020, RIL released a detailed plan to carve out its oil-to-chemicals business into a separate entity for a potential stake sale. As per the scheme, RIL’s oil-to-chemicals (O2C) assets, including its refining, petrochemicals, fuel retail (majority interest only) and bulk wholesale marketing businesses, along with its assets and liabilities, will be transferred to a new unit. The new unit will include the refining and petrochemical plants and manufacturing assets at RIL’s Jamnagar, Dahej, Hazira, Nagothane, Vadodara, Patalganga, Silvassa, Barabanki and Hosiarpur locations.

It will also include all assets relating to RIL’s ongoing refinery and petrochemical projects that are being commissioned or near completion, the company said. RIL had officially announced its proposal to transfer its oil-to-chemicals (O2C) business to a separate entity in April.

According to MRC's ScanPlast report, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

Reliance Industries is one of the world's largest producers of polymers. Thus, the company produces among others polypropylene, polyethylene and polyvinyl chloride.
MRC

MOSCOW (MRC) -- Crude oil futures were higher day on day in European morning trading Oct. 27, but slightly down from levels in earlier Asian trading, with the market reflecting on lost production of both crude and products in the Gulf of Mexico as a result of Hurricane Zeta, reported S&P Global.

At 1214 GMT, the ICE December Brent crude futures was up 20 cents/b from the Oct. 26 settle at USD40.65/b while the NYMEX December light sweet crude contract was 25 cents/b higher at USD38.81/b.

The 27th named storm in this year's Atlantic hurricane season is expected to make landfall in the US on the morning of Oct. 28, the country's National Hurricane Center has said. BP, Equinor and Chevron were among those who'd suspended production at offshore oilfields in the gulf, while Shell said it hadn't done so. "We are likely to see further production shut in the coming days," ING wrote in a note.

The Bureau of Safety and Environmental Enforcement has said almost 294,000 b/d of production is shut in, which represents 16% of total production in the Gulf of Mexico. Zeta is expected to strengthen into a hurricane later on Oct. 26 and make an initial landfall near Mexico's Yucatan Peninsula before entering the central Gulf and making a second landfall as early as Oct. 28 near southeastern Louisiana, according to the hurricane center. The subsequent risk of refinery closures means that many market participants are prepared for this session's price rise to be reversed.

"The situation on the oil market remains confusing and ominous," wrote Commerzbank in a research note, drawing attention to possible demand destruction from "refinery closures and transport restrictions" that could be the next result of Hurricane Zeta.

Moreover, the growth of COVID-19 cases in Europe and the US means that traders are circumspect about any rise in crude prices, especially given the previously stated intention of OPEC+ to relax output cuts from January.

"If there is little improvement in the demand picture, there will likely be growing pressure on OPEC+ to rollover current cuts into next year," wrote ING.

With nine days remaining until the US presidential election, commodity, bond and equity markets are all examining possible policy changes in the world's biggest economy.

Commerzbank said a victory for Joe Biden could be both negative and positive for oil prices in the longer term. Among bearish signals for oil, Commerzbank named the Democrat candidate's commitment to alternative energy, as well his position toward Iran, which could pave the way for the major producer to be reintegrated into the oil market. However, decisive victory for the Democrats could also provide a boost to prices if it accelerated fiscal stimulus measures or if Biden restricts US shale oil.

As MRC reported earlier, Chevron Phillips Chemical, part of Chevron Corporation, still has not lifted force majeure on its polyethylene (PE) products after assessing the impact of Hurricane Laura to its Gulf Coast PE operations. The force majeure circumstances were declared on 1 September, 2020. CP Chem operates a 420,000 mt/year high-density polyethylene (HDPE) plant in Orange, Texas, and an 855,000 mt/year cracker in Port Arthur. The company plans to minimize the impact of the event and return to full PE deliveries as soon as possible.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE). At the same time, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC

MOSCOW (MRC) -- PTT Global Chemical (PTTGC) might start up the newly constructed cracker in Map Ta Phut, Thailand this December, reported CommoPlast with reference to market sources.

The company kickstarted the project in early 2018 as part of PTTGC’s USD4.5 billion projects to “retrofit” its Map Ta Phut site.

The new cracker operates on flexible feeds, primarily to utilize the surplus naphtha from its refinery. The unit has an annual capacity of 500,000 tons/year of ethylene and 261,000 tons/year of propylene.

As MRC wrote previously, PTTGC fully restarted its No. 2 cracker in Map Ta Phut by end-February, 2020, after a planned turnaround. The cracker was shut for maintenance on January 20, 2020. Located at Map Ta Phut, Thailand, the No. 2 cracker has an ethylene production capacity of 400,000 mt/year.

The company also operates No. 1 cracker at the same site with a capacity of 515,000 tonnes of ethylene and 310,000 tonnes of propylene per year, which was also shut on 23 January, 2020, for a 40-day turnaround.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE). At the same time, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

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) -- Reliance Industries (RIL) is scheduled to restart the low density polyetylene (LDPE) plant in Gujarat on 28 October following brief maintenance, according to CommoPlast.

The unit was taken off-line on 25 October 2020.

The LDPE line has an annual capacity of 400,000 tons/year.

“Due to the short shutdown, there is virtually no impact on the supply,” a source close to the producer informed.

As MRC reported earlier, in September 2020, RIL released a detailed plan to carve out its oil-to-chemicals business into a separate entity for a potential stake sale. As per the scheme, RIL’s oil-to-chemicals (O2C) assets, including its refining, petrochemicals, fuel retail (majority interest only) and bulk wholesale marketing businesses, along with its assets and liabilities, will be transferred to a new unit. The new unit will include the refining and petrochemical plants and manufacturing assets at RIL’s Jamnagar, Dahej, Hazira, Nagothane, Vadodara, Patalganga, Silvassa, Barabanki and Hosiarpur locations.

It will also include all assets relating to RIL’s ongoing refinery and petrochemical projects that are being commissioned or near completion, the company said. RIL had officially announced its proposal to transfer its oil-to-chemicals (O2C) business to a separate entity in April.

According to MRC's ScanPlast report, August estimated LDPE consumption in Russia rose to 48,460 tonnes from 43,380 tonnes a month earlier. Russian producers reduced their export LDPE shipments. Russia' estimated LDPE consumption rose to 383,500 tonnes in January-August 2020, up by 6% year on year. Despite the long outages, LDPE production increased, and imports also rose.

Reliance Industries is one of the world's largest producers of polymers. Thus, the company produces among others polypropylene, polyethylene and polyvinyl chloride.
MRC