PVC imports to Russia down by 16% in Jan-Oct 2020, exports dropped by 1%

MOSCOW (MRC) -- Imports of suspension polyvinyl chloride (SPVC) into Russia totalled 38,500 tonnes in the first ten months of 2020, down by 16% year on year. At the same time, exports decrease by 1%, according to MRC's DataScope report.
Last month's SPVC imports to Russia fell to 2,300 tonnes from 4,200 tonnes. The devaluation of the rouble against the dollar and high prices of resin in foreign markets forced Russian companies to significantly reduce their imports. Thus, overall imports were 38,500 tonnes in January-October 2020, compared to 45,900 tonnes a year earlier, with resin from China and the United States accounting for the main reduction in imports. PVC shipments from these countries decreased by almost a third over the stated period.
At the same time, strong demand for resin from the domestic market allowed Russian producers to reduce their export sales. October exports of suspension did not exceed 10,000 tonnes (excluding shipments to Belarus and Kazakhstan) versus 11,300 tonnes a month earlier. Thus, overall PVC exports totalled 165,700 tonnes in January-October 2020, compared to 167,800 tonnes a year earlier.

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Sasol announces beneficial operation at its LDPE plant in Louisiana

MOSCOW (MRC) -- Sasol has announced its low density polyethylene (LDPE) plant reached beneficial operation on 15 November 2020, as per the company's press release.

The LDPE unit is the seventh and final Lake Charles Chemicals Complex unit to come online. The LCCP is now 100% complete with total capital expenditure forecast to be within the previously communicated guidance of USD12,8 billion.

“This milestone safely brings our Lake Charles Chemicals Project to a close and sets the stage for the next step in the evolution of our chemicals business,” said Sasol President and Chief Executive Officer Fleetwood Grobler. “The completion of this unit and its impending transition to our joint venture with LyondellBasell will accelerate our transformation to a more specialty chemicals-focused company with a strong presence of base chemicals in our portfolio.”

Sasol’s LDPE unit uses ExxonMobil technology and has a nameplate capacity of 420,000 tons per year (420 ktpa). LDPE is used to manufacture plastic bags, shrink wrap and stretch film, coatings for paper cups and cartons, container lids, squeezable bottles, and other applications. The beneficial operation of the final LCCP unit signals that 100% of total nameplate capacity of the LCCP is operational.

The LDPE unit is one of the three LCCP plants that will form part of the Sasol/LyondellBasell Louisiana Integrated Polyethylene joint venture.

To date, Sasol’s Lake Charles Chemicals Project has generated more than 800 full-time quality manufacturing jobs, with up to 6,500 people on site during construction, USD4 billion to Louisiana businesses and nearly USD200 million in local and state taxes.

As MRC reported earlier, Sasol said Sept. 21 the new LDPE plant, which had been slated to start up in early 2020 before it was damaged by fire during commissioning in January, did not sustain any significant storm impacts. And the company resumed commissioning the plant then.

According to MRC's ScanPlast report, September estimated LDPE consumption in Russia fell to 23,930 tonnes from 47,610 tonnes a month earlier. Russian producers reduced their domestic LDPE shipments due to shutdowns for maintenance at production capacities in Ufa, Tomsk and Kazan. Russia's estimated LDPE consumption totalled about 406,500 tonnes in January-September 2020, which virtually corresponded to the last year's figure.

Sasol is an international integrated chemicals and energy company that leverages technologies and the expertise of our 31 270 people working in 32 countries. The company develops and commercialises technologies, and builds and operates world-scale facilities to produce a range of high-value product stream, including liquid fuels, petrochemicals and low-carbon electricity.
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Borealis announces force majeure on Porvoo, Finland cracker operations

MOSCOW (MRC) -- Borealis has announced force majeure on its feedstocks and cracker supplies from its Porvoo, Finland cracker, which is expected to impact supply balance this week, reported S&P Global.

Thus, the force majeure was announced on 11 November at the company's 400,000 mt/year of ethylene and 223,000 mt/year of propylene cracker because of technical issue. The failure was outside of Borealis' scope of responsibility, a company spokesperson confirmed.

The cracker was shut down for repair works. Its restart is expected in early December.

As MRC informed earlier, Borealis announces that its new naphtha cavern in Porvoo, Finland has now been safely commissioned as of October 2020. Having invested around EUR25 million in the construction of this 80,000 m3 facility, Borealis can now source and store naphtha for its Porvoo operations from the global market in a more flexible, cost-efficient, and secure way. The cavern can also accommodate renewable naphtha, making it possible for Borealis customers in future to draw on certified renewable polypropylene (PP) and polyethylene (PE), as well as renewable base chemicals, ethylene, propylene and phenol.

We remind that the light-feed 625,000-metric tons/year Borealis steam cracker at Stenungsund, Sweden, is expected to restart operations in the fourth quarter this year after a fire broke out at the plant in May, 2020. The cracker has been under force majeure ever since after the blaze at the plant on 10 May, which was subsequently brought under control the following day.

Ethylene and propylene are feedstocks for producing PE and 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, excluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. With headquarters in Vienna, Austria, Borealis currently employs around 6,500 and operates in over 120 countries.
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Shenhua Xinjiang unexpectedly shut its PP plant in China

MOSCOW (MRC) -- Shenhua Xinjiang Mining Co (part of Shenhua Group) has unexpectedly shut down its polypropylene (PP) plant due to technical glitches on its pipeline, reported CommoPlast with reference to market sources.

Thus , the company's PP plant, based in Xinjiang, China and with the capacity of 450,000 tons/year, was taken off-stream on 11 November, 2020, an is expected to remain off-line for seven days.

Shenhua Xinjiang also operates low density polyethylene (LDPE) plant with the capacity of 300,000 tons/year at the same site. This unit was also shut on 11 November for the same reason.

As MRC wrote before, last year, the company conducted scheduled maintenance works at LDPE plant from 16 August to 24 September.

According to MRC's ScanPlast report, PP shipments to the Russian market reached 880,130 tonnes in the first nine months of 2020 (calculated using the formula: production minus exports plus imports, excluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

Shenhua Group Corporation Limited was a Chinese state-owned mining and energy company. Shenhua Group was founded in October 1995 under the auspices of the State Council of the People's Republic of China. It was the largest coal-producing company in China.
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Trinseo to keep Boehlen styrene plant

MOSCOW (MRC) -- Trinseo says feedstock supply issues that threatened the operation of its 300,000-metric tons/year styrene monomer (SM) plant in Boehlen, Germany, have been resolved, and the company is no longer “evaluating strategic options” for the asset, reported Chemweek.

“As part of this effort, a new raw material agreement was negotiated that is expected to make the plant economically feasible along with the added benefit of operational flexibility,” Trinseo says in its third-quarter earnings release.

In its first-quarter 2020 earnings release, issued in May, Trinseo said it had taken a USD38 million pre-tax charge for the impairment of “certain long-lived” assets in Boehlen and Schkopau, Germany. The company also said it had begun a consultation process with the Economic Council and Works Councils of Trinseo Deutschland regarding the disposition of the assets.

As MRC informed previously, Trinseo reports third-quarter net income of USD106 million, up from USD22 million in the year-ago quarter on higher margins in most segments and cost-reduction initiatives. Net income also included a USD50 million tax benefit. Revenue totaled USD752 million, down 18% year-over-year (YOY) from USD922 million on the pass-through of lower raw material costs. Sales volume was comparable YOY, says Trinseo, which cites strong demand recovery in automotive, tires, construction, and appliances. Adjusted earnings per share came to USD2.87, up from 67 cents in the year-ago quarter and well ahead of the average analyst estimate of USD1.86 as compiled by Refinitiv (New York).

SM is the main feedstock for the production of polystyrene (PS).

According to MRC's ScanPlast report, Russia's estimated consumption of PS and styrene plastics totalled 362,820 tonnes in the first nine months of 2020, down by 1% year on year. September total estimated PE consumption in Russia was 48,690 tonnes, up by 13% year on year.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD3.8 billion in net sales in 2019, with 17 manufacturing sites around the world, and approximately 2,700 employees.
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