Fujian Meide Petrochemical postpones start-up of its new PDH unit in Fujian to end-November

MOSCOW (MRC) -- China's Fujian Meide Petrochemical, a wholly owned subsidiary of China Flexible Packing Group,
is expected to start up its newly-built propane dehydrogenation (PDH) plant in Jiangyin, Fujian province, by the end of this month, reported S&P Global with reference to market sources.

The new PDH with the capacity of 660,000 mt/year was originally scheduled to start up in the first half of February, 2020, then - in the second half of February. High cost of feedstock propane was the cause of the delay.

Afterwards, the company postponed the start until June and then - until July, afterwards - until September and then delayed the start-up to October, 2020.

Separately, no maintenance was heard scheduled at the company's existing PDH plants in October this year.

Propylene is the main feedstock for the production of polypropylene (PP).

According to MRC's ScanPlast report, 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.
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Air Products earnings lower on COVID impacts

MOSCOW (MRC) -- Air Products reported net income of USD495 million for its fiscal fourth quarter ended 30 September, down 5% year-on-year (YOY) on lower merchant volumes due to COVID-19 impacts, said Chemweek.

Sales were USD2.32 billion, up 2% YOY as 2% higher pricing and 1% favorable currency more than offset 1% lower energy pass-through. Reported adjusted earnings were USD2.19, down 4% YOY and 4 cts below analyst estimates as reported by Zacks Investment Research.

Volume overall was roughly flat YOY as plant startups, acquisitions and increased sales of equipment offset shortfalls attributable to COVID-19. Volumes were up 8% sequentially from second-quarter levels on sale of equipment and improved merchant volumes as economies began to improve.

Air Products said it would not provide fiscal 2021 earnings or capital spending guidance, citing uncertainty related to a “deepening” COVID crisis. "We are not shying away from guidance, but we are being very open that we just don't know as we sit here today in terms of what the course of economic activity will be," said Air Products chairman and CEO Seifi Ghasemi. Air Products gases revenues are split 52% onsite and 48% merchant. The "onsite business is doing well and we expect this to continue," Ghasemi said. Merchant business performance is mixed by region. Asia merchant volumes are roughly at pre-pandemic levels through the quarter so far, while Europe is down 5%-10%, and the Americas are down 5%, Ghasemi said.

Americas segment sales were USD912 million, down 3% YOY. Segment adjusted EBITDA of USD411 million was flat as higher pricing and a hydrogen acquisition were offset by lower volumes and higher planned maintenance activities. Volume was down 3% YOY and up 7% sequentially from the second quarter. Air Products says existing onsite business, about two-thirds of Americas sales, remains stable but COVID 19 has hurt merchant volumes.

Asia segment sales were USD714 million, down 2% YOY. Adjusted EBITDA was USD330 million down 7%. Asia volumes decreased 5% YOY due to continuing adverse effects of COVID-19, the impact of a customer outage, and the end of a short-term contract that contributed to prior-year results.

Europe, Mideast, and Africa (EMEA) sales were USD505 million, up 3% YOY. Adjusted EBITDA was USD200 million, up 4% YOY due to higher pricing and favorable currency, partially offset by lower volumes and increased costs. EMEA volumes were flat YOY despite weaker merchant demand.

As MRC reported earlier, in December 2014, SIBUR-Khimprom (a subsidiary of SIBUR Holding) and Air Products entered into an agreement to build a new air separation unit in Perm and to supply the facility with locally produced gases. The unit came on-stream in 2016. After the commissioning Air Products will supply industrial gases for SIBUR-Khimprom over the next 20 years.

As MRC informed earlier, Air Liquide finalised an agreement with Sasol to acquire the biggest oxygen production site in the world with a plan to reduce its carbon dioxide (CO2) emissions by 30%. After the announcement on July 29, the international major industry gas company has now entered into a business purchase agreement with Sasol to acquire the oxygen production site in Secunda, South Africa.

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.

Air Products is a world-leading industrial gases company in operation for nearly 80 years. Focused on serving energy, environment and emerging markets, the Company provides essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemical, metals, electronics, manufacturing, and food and beverage. Air Products is also the global leader in the supply of liquefied natural gas process technology and equipment. The Company develops, engineers, builds, owns and operates some of the world's largest industrial gas projects, including gasification projects that sustainably convert abundant natural resources into syngas for the production of high-value power, fuels and chemicals.
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Standard Hydrogen Canada signs agreement to convert waste into clean-burning hydrogen

MOSCOW (MRC) -- Standard Hydrogen Company, Inc. announced signed a joint venture agreement with EnfraWaste to create a new corporation called Standard Hydrogen Canada, Inc., said the company.

As part of the agreement, Standard Hydrogen Canada will initially produce more than 140 metric tonnes of zero-emission hydrogen daily from non-recyclable plastics. Toronto-based EnfraWaste and Standard Hydrogen Company will each own 50% of the new entity, a corporation licensed to build and deploy hydrogen plants throughout Canada.

"This landmark agreement keeps massive amounts of non-recyclable plastics out of Canada's landfills and sets the stage for a hydrogen economy in the country since the volume of hydrogen Standard Hydrogen Canada aims to produce will be enough to fuel four million cars per day," said Alan Mintzer, Standard Hydrogen CEO. "Standard Hydrogen Canada becomes the pioneer in providing low-cost hydrogen fuel."

Standard Hydrogen reactors produce white hydrogen--a new category offering a zero-emission, waste-to-energy (WTE) solution for the private sector, infrastructure and government. The reactors will produce hydrogen cleanly and inexpensively by turning non-recyclable plastics into pure hydrogen fuel and valuable carbon products, all without producing any greenhouse gases. This patented process has the potential to clean the land and waterways while eliminating most of the waste being dumped into landfills.

EnfraWaste helps a broad spectrum of manufacturing organizations around the globe lower costs, mitigate risks and environmental issues with WTE solutions. The company has contracts to handle non-recyclable plastics and hydrocarbons with a multinational consumer goods corporation and other companies.

The joint venture between EnfraWaste and Standard Hydrogen anticipates initially converting more than 1,000 metric tonnes of post-manufacturing plastics in southern Ontario daily, commencing in the third quarter of 2021. When the operation is at full-capacity, distributed hydrogen-conversion plants will handle more than 180,000 metric tonnes of material each day or enough to create nearly 25 million kilograms of hydrogen fuel daily.

"This low-cost hydrogen fuel will be able to power industrial and commercial operations as well as every type of transportation without any emissions," said Martin Vroegh, EnfraWaste Executive Director. "We are excited about this pollution-free solution to clean the planet and mine non-recyclable plastic from landfills."

EnfraWaste specialises in mitigating risks and lowering costs of WTE solutions and is contracted to handle non-recyclable plastics and hydrocarbons with several companies including a multinational consumer goods corporation.

As MRC informed earlier, Standard Hydrogen Company, Inc. announced a technology breakthrough in the quest for inexpensive hydrogen by turning garbage into pure zero-emission hydrogen fuel. This patented process has the potential to clean the land and waterways while eliminating most of the waste being dumped into landfills.

We also remind, chemical recycler Plastic Energy has teamed up with consumer products major Nestle on a study for a commercial large-scale plastics recycling facility in the UK. Nestle UK and Ireland has partnered with chemical recycling company Plastic Energy to develop a recycling plant in the UK. The two companies will explore the scope for the first-commercial large-scale facility of its kind in the country.

As per MRC, Russia's output of products from polymers grew in September 2020 by 6.6% year on year.
However, this figure increased by 0.9% year on year in the first nine months of 2020. According to the Russian Federal State Statistics Service, September production of unreinforced and non-combined films dropped to 117,600 tonnes from 126,300 tonnes a month earlier. Output of films products grew in January-September 2020 by 8.2% year on year to 980,700 tonnes.

Standard Hydrogen Company Inc. is an innovative, breakthrough company that developed and patented technology to economically split hydrogen sulfide into pure hydrogen and sulfur. The company’s process requires no precious metal catalysts and requires little to no maintenance.
MRC

North America chemical rail weakens slightly

MOSCOW (MRC) -- Chemical railcar traffic in North America continues to make up the year-to-date deficit with 2019 while holding firm versus 2018, reported Chemweek.

Volume for the year through 7 November was down 3.8% from 2019 and down 5.5% from 2018, compared to declines of 4.0% and 5.5%, respectively, for the year through 31 October. On a four-week basis, volume was up 0.4% from 2019 and down 4.4% from 2018 (chart), weakening slightly from the previous week, when the respective figures were up 0.8% and down 3.2%.

Volume for the week totaled 44,039 carloads, up 1.8% year-over-year (YOY) and up 2.0% from the previous week, according to data released by the Association of American Railroads (AAR).

Chemical railcar traffic in the United States contributed 32,636 carloads to the total, up 5.9% YOY and up 6.9% from the previous week. For the year to date, US chemical railcar traffic is down 4.6%.

Canadian chemical rail traffic totaled 10,468 carloads, down 9.5% YOY and down 10.2% from the previous week. For the year to date, Canadian chemical railcar traffic is down 1.9%.

Chemical railcar traffic in Mexico totaled 935 carloads, a YOY increase of 6.7% and a sequential decrease of 4.0%. For the year to date, Mexican chemical railcar traffic is down 4.1%.

As MRC informed earlier, 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.

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

Sadara Chemical Q3 losses fall 65%

MOSCOW (MRC) -- Sadara Chemical Company’s net losses for the third-quarter (Q3) of 2020 fell by 65.5% yearly to SAR 513,705, reported Chemweek.

The decline in Q3-20 losses was driven by a growth in sales and a rise in average selling prices for products, according to a bourse filing on Wednesday.

Revenue for the July-September period of 2020 amounted to SAR 2.8 million, an annual rise of 15.2%.

During the period from January to September of the year, the losses were down by 17.6% on an annual basis to SAR 3.2 million.

As MRC wrote earlier, Sadara Basic Services Company cut run rates at 350,000 mt/year low density polyethylene (LDPE) and 750,000 mt/year of high density/linear low density polyethylene (HDPE/LLDPE) swing units, in Jubail by 16%, due to the Saudi oil facility attack that happened on September 14, 2019, which reduced the company's supply of feedstock.

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 HDPE shipments increased.

Sadara Chemical is a USD20 billion petrochemical joint venture between national oil giant Saudi Aramco and Dow Chemical.
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