Chinese Zhongmei Yulin to start up new LDPE/EVA plant by mid-November

MOSCOW (MRC) -- Shaanxi Yanchang Zhongmei Yulin phase II new low density polyethylene (LDPE)/ethylene-vinyl-acetate (EVA) plant is slated to startup by the middle of November 2020, reported CommoPlast with reference to market sources.

Initially the company intened to begin the trial runs at this plant by November, 2020.

Based in Shaanxi, China, the LDPE/EVA swing plant has a production capacity of 300,000 tons/year. It is expected to startup with production of LDPE and then following by EVA.

A source closed to the company informed that EVA will be the core production focus for this plant, hence shall not be impacting much on PE market in China.

As reported earlier, Shaanxi Yanchang Zhongmei Yulin Energy and Chemical Co Ltd shut it’s polypropylene (PP) 2 and linear low density (LLDPE) units for scheduled turnaround on 1 August, 2016. Meanwhile, its MTO, PP1 and high density polyethylene (HDPE) units were shut on 8 August 2016. Based in Shaanxi, China, the company has a PP1, PP2, HDPE and LLDPE units each with a production capacity of 300,000 ton/year. The units are expected to remain off-stream for 45 days.

According to MRC's DataScope, September EVA imports to Russia fell by 30,32% year on year to 2,38 tonnes from 3,420 tonnes a year earlier, and overall imports of this grade of ethylene copolymer into the Russian Federation dropped in January-September 2020 by 9,85% year on year to 26,340 tonnes (29,220 tonnes a year earlier).
MRC

MOSCOW (MRC) -- A divided appeals court on Wednesday upheld a win for the University of Wyoming Research Corp. in a patent dispute with Chevron U.S.A. over a process for analyzing a tar-like substance found in fossil fuels, said Chemweek.

The 2-1 decision of the U.S. Court of Appeals for the Federal Circuit affirmed the Patent Trial and Appeal Board’s conclusion that dueling patent applications by Chevron and the university described the same process for analyzing the stability of asphaltenes, which can affect crude-oil yields and refinery operations.

As per MRC, Chevron Lummus Global (CLG) announced they have been awarded a contract by China's largest oil and gas producer and distributor, PetroChina Company Limited, for the supply of its proprietary ISOMIX-e reactor internals for two of their RDS units in Liaoning Province.

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.

Headquartered in San Ramon, California, Chevron Corporation is the the second-largest integrated energy company in the United States and among the largest corporations in the world. Chevron is involved in upstream activities including exploration and production, downstream activities including refining, marketing and transportation, and advanced energy technology. Chevron is also invested in power generation and gasification processes.
MRC

MOSCOW (MRC) -- Neste, a leading producer of renewable diesel and sustainable aviation fuel and a forerunner as a provider of renewable and circular solutions for the petrochemical industry, and LG Chem, South Korea’s largest diversified petrochemicals company and a leading manufacturer of lithium-ion batteries for energy solutions, have announced their aim to build a strategic long-term partnership to develop and grow the biopolymers and biochemicals market globally, and more specifically, in the LG Chem’s home market Korea, according to Hydrocarbonprocessing.

Thanks to the partnership, LG Chem will start replacing fossil feedstock commonly used in the manufacturing of polymers and chemicals with Neste Renewable Hydrocarbons in the upcoming months. This helps LG Chem to produce renewable polymers and chemicals to meet the increasing sustainability requirements and expectations of its customers – such as those producing polyolefin-based containers, packaging, hygiene products, and electronic materials – without compromising on quality, performance or recyclability of its products.

“We are delighted to start collaborating with LG Chem, a company with one of the most diverse polymers and chemicals offerings in the world, to make an increasing impact on the global industry’s transformation towards a circular bioeconomy. This cooperation enables us to further expand the portfolio of applications that can benefit from Neste’s renewable drop-in solutions”, says Mercedes Alonso, executive vice president, Renewable Polymers and Chemicals from Neste.

"LG Chem’s proprietary technology and significant market share of diverse chemical products and Neste’s sustainable solution based on renewable hydrocarbons, have come together in a partnership that will pave the way for sustainable growth in building a circular bioeconomy for both parties and also the global industry”, says Kug Lae Noh, executive vice president and the president of Petrochemicals Company from LG Chem.

Neste’s renewable hydrocarbons are produced entirely from traceable, bio-based raw materials, such as waste and residue oils and fats, providing a high-quality, more sustainable alternative to fossil feedstock.

As MRC reported earlier, LG Chem, a South Korean petrochemical major, has shut down its naphtha cracker in Yeosu following a fire. The company said a fire broke out at its central control room at the Yosu cracker complex at around midnight local time (15:00 GMT) on 5 November. The country's largest chemical company said it was in the process of figuring out the cause of the fire. The facility can process about 1.2 million tonnes of ethylene per year (tpy).The cracker shutdown is expected to last at least three weeks.

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

According to MRC"s ScanPlast report, Russia"s estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers" inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.
MRC

MOSCOW (MRC) -- Crude oil prices surged during the mid-morning trade in Asia Nov. 9, shadowing the movement in other risk assets, as uncertainty subsided over the US presidential election result, reported S&P Global.

At 10.21 am Singapore time (0221 GMT), ICE Brent January crude futures were up 99 cents/b (2.51%) from the Nov. 6 settle to USD40.44/b, while the NYMEX December light sweet crude contract was USD1/b (2.69%) higher at USD38.14/b.

The markers rose 3.98% and 3.77% in the week ended Nov. 6 as indications that the OPEC+ alliance could extend its current production cuts outweighed the uncertainty surrounding the the US elections. With Democrat Joe Biden declared winner of the 2020 race to the White House, oil resumed its uptrend.

"We are seeing sort of a sunshine effect caused by the provisional Biden victory, which is causing oil to rally this morning in line with the other risk assets and a weaker dollar," OANDA senior market analyst Jeffrey Halley told S&P Global Platts Nov. 9.

"The markets believe that the Biden administration will be more positive for international trade and could bring the US back into that framework, lifting global economic growth and providing a boost to global oil consumption," he added.

Strong economic data from China was adding to the uptrend, with customs data showing October exports were 11.4% higher on the year, Halley said.

AXI chief global market strategist Stephen Innes said in a Nov. 9 note: "Oil is trading a bit higher this morning in line with broader risk assets and a slightly weaker dollar as Joe Biden was declared the President, while on the data front, both the US jobs number and China's resilient exports number released over the weekend paint a better picture for the global growth outlook than expected."

However both analysts noted that market fundamentals remained bearish, with Innes adding that "what matters for oil is the pandemic and not the US election results."

With coronavirus infections in the US setting daily new records and the lockdowns in Europe likely to derail economic recovery, the outlook for oil demand remains bleak.

Against this gloomy backdrop, supply-side concerns were also heightened after Libya's National Oil Corp. reported Nov. 7 that Libya had doubled its oil output to 1 million b/d in the just over two weeks since its rival factions agreed to a peace deal on Oct. 23.

"Given the bearish fundamentals in the market, I am taking the rise in oil prices this morning with a pinch of salt. As far as I am concerned, oil remains a sell-on-rally asset for me," Halley said.

As MRC informed previously, global oil demand may have already peaked, according to BP's latest long-term energy outlook, as the COVID-19 pandemic kicks the world economy onto a weaker growth trajectory and accelerates the shift to cleaner fuels.

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.

And 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).

ccording to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC

MOSCOW (MRC) -- Odfjell (Bergen, Norway) reports net earnings of USD3.9 million for the third quarter of 2020, swinging to a profit from a net loss of USD1.1 million in the prior-year period, reported Chemweek.

The earnings are down, however, from USD30.9 million in the second quarter, reflecting a seasonal slowing of the chemical tanker market and a high number of vessel dry dockings in the third quarter, it says.

EBITDA rose 40% year on year (YOY) to USD71.7 million on sales that increased 6% to USD247.7 million, although both figures are down on the second quarter by 12% and 2%, respectively.

Despite the challenging macro environment, Odfjell continues to renew vessel contracts at higher rates compared to last year, “which is an encouraging sign,” says CEO Kristian Morch. “We expect the fourth quarter results to be in line with the third quarter,” he says.

Odfjell’s tankers business reported net earnings of USD2.6 million, swinging to profit from a loss of USD14.8 million a year earlier, but down sequentially from USD19.3 million in the second quarter. EBITDA of USD63.6 million was up almost USD20 million YOY but down USD10 million on the previous quarter, due mainly to lower tanker spot rates during the seasonal slowdown. The company shipped 3.1 million metric tons of product during the third quarter, in line with the second quarter. “The western hemisphere market improved relative to the previous quarter, while activity in the eastern hemisphere slowed down and has also been the area impacted the most by increased competition from swing tonnage operators,” Odfjell says. The global chemical tanker orderbook stands at 5.6% of the current fleet, with 16 new orders for chemical tanker vessels concluded during the quarter.

The International Monetary Fund’s (IMF) latest economic outlook has forecast an expected recovery in global GDP growth from a contraction of 4.4% in 2020 to growth of 5.2% in 2021, according to Morch. “IMF expects the speed of recovery to differ between regions, with large chemical importers like Europe and Asia to grow faster than the larger chemical exporters. This should lead to continued regional supply and demand imbalances, leading to continued stimuli for seaborne trade of chemicals,” he says.

Most industries requiring liquid chemicals have seen steady demand during the pandemic, with the exception of the automotive and construction industry, according to the company. “Continued recovery within construction and automotive are key to ensure that global inventory levels normalize, and growth rates climbs back to historical levels,” it states.

Odfjell is forecasting chemical tanker demand growth to average 3% between 2021 and 2023 relative to supply growth of 1% over the same period.

The company’s tank terminals business reported net earnings of USD1.5 million, down from USD13.2 million a year earlier and USD10.0 million lower than the second quarter of this year. EBITDA of USD7.8 million was up slightly both YOY and sequentially. Underlying demand for storage “continues to be strong” with an average commercial occupancy rate of 99% in the third quarter, it says. Activity levels at its terminals are rebounding, with the average total number of handlings up by approximately 16% compared to the second quarter, with throughput volumes showing signs of reaching normalized levels in the latter part of the third quarter, it adds.

Growth plans for its Houston tank terminal are on track, with Odfjell nearing a final investment decision on its Bay 13 expansion project, due onstream in 2022. The expansion represents an increase of 32,000 cu meters in storage capacity specifically for specialty chemicals, catering to truck, rail, ship, and barge modalities, it says. Subsequent phases of its Houston expansion plans are expected to come into operation from 2024 onwards, it adds.

As MRC informed earlier, in July, 2020, Odfjell (Bergen, Norway) says a significant expansion of its European chemicals storage capacity had been completed at the port of Antwerp, Belgium.

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

According to MRC's ScanPlast report, Russia"s estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers" inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC