Epsilyte raises EPS resin prices

MOSCOW (MRC) -- Epsilyte (The Woodlands, Texas), a leading North American producer of expandable polystyrene (EPS), says it is increasing prices for all EPS grades, effective as of 1 January 2021 or as contracts allow, reported Chemweek.

The price rise will be USD0.06/lb. The increase is necessary “based on supply and demand dynamics, and the need for the business to achieve reinvestment economics,” the EPS producer says.

As MRC informed before, in November 2020, private equity company Wynnchurch Capital acquired Drew Foam Companies for an undisclosed sum. Monticello, Arkansas-based Drew Foam makes custom fabricated and moulded EPS products for the packaging, building products and OEM/consumer end markets. It offers both fabricated block and shape moulding capabilities across four manufacturing facilities in the Southeast US.

According to MRC's ScanPlast report, October estimated EPS consumption in Russia was 10,310 tonnes versus 10,740 tonnes a month earlier. Russia's estimated EPS consumption was about 80,000 tonnes in January-October 2020, down by 4% year on year. In November, demand was moderate in the Russian EPS market, whereas in the second half of the month, there was a decrease in activity in the EPS market as compared to October. Domestic prices of Russian material were in the range of Rb98,000-111,000/tonne CPT Moscow, including VAT.

Epsilyte is owned by private equity firm Balmoral Funds (Los Angeles, California). Epsilyte is one of North America’s leading producers of expandable polystyrene resin. The company is focused on solving customer needs for efficient, high-R value EPS. This includes reducing energy usage in buildings, ensuring safe and healthy food through innovative packaging technology, and participating in infrastructure investment both in the United States and abroad. Epsilyte is a portfolio company of Balmoral Funds LLC.
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South Africa to review petroleum product supplies after refinery shutdown

MOSCOW (MRC) -- South Africa will urgently conduct an assessment of petroleum products supply, the Department of Mineral Resources and Energy said on Saturday after the country's second-largest crude oil refinery shut down following a fire, said Hydrocarbonprocessing.

The 120,000 barrel-per-day (bpd) Engen refinery in Durban, majority-owned by Malaysia's Petronas, ceased operations as investigations started into the cause of the fire on Friday. Engen said it was taking measures to ensure security of supply.

The refinery shutdown comes at a crucial time for South Africa as it looks to kickstart an economy walloped by the COVID-19 pandemic. The South African Petroleum Industry Association (SAPIA) warned in May that the country was facing a diesel shortage due to a spike in demand as restrictions on movement eased.

Africa's most advanced economy is a net importer of crude oil and petroleum products, with the local market consuming 11,142 million litres of petrol and 12,539 million litres of diesel in 2018, according to the SAPIA.

As MRC informed arlier, there was an explosion on Friday morning at Engen's oil refinery in Durban, police had not yet received reports about whether there had been injuries or deaths. An Engen spokesman told Reuters he would comment later in a statement. According to Engen's website, the Durban refinery has a crude refining capacity of 120,000 barrels per day.

As per MRC, in July, the country's third-biggest crude refinery, Astron Energy's 100,000 bpd plant, was hit by an explosion that killed two people and injured several others. The plant remains out of commission.

We remind that on 18 August, 2020, Chevron Corp reported a fire at its 112,229-barrel-per-day (bpd) Pasadena, Texas facility. "At this time, flames, smoke may be noticeable to the community. We are coordinating with local officials, and working to resolve the issue as soon as possible," the company reported on August, 19.

We also remind that US-based Phillips 66 remains open to developing another ethane cracker for its Chevron Phillips Chemical (CP Chem) joint venture, the refiner's CEO said in March 2018.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.
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LyondellBasell and SUEZ increase plastics recycling capacity

MOSCOW (MRC) -- LyondellBasell, one of the world's largest plastics, chemicals and refining companies and SUEZ, a world leader in environmental services, has jointly announced the acquisition of TIVACO, a plastics recycling company located in Blandain, Belgium, as per LyondellBasell's press release.

The company will become part of Quality Circular Polymers (QCP), the companies' existing 50/50 plastics recycling joint venture. With this transaction, QCP will increase its production capacity for recycled materials to approximately 55,000 tonnes per year.

LyondellBasell and SUEZ jointly announced the acquisition of TIVACO, a plastics recycling company located in Blandain, Belgium. The acquisition will increase production capacity for recycled materials at the companies' existing 50/50 plastics recycling joint venture, Quality Circular Polymers (QCP).

"This latest investment in QCP supports LyondellBasell's ambition to produce and market 2 million tons per year of recycled and renewable source-based polymers by 2030. Extending the plastics lifecycle through recovery, recycling and reuse not only eliminates waste but also produces a product with a lower CO2 footprint," said Richard Roudeix, Senior Vice President Olefins & Polyolefins, Europe, LyondellBasell. "This innovative approach is key to unlocking additional value from existing plastics while addressing brand owners' needs for sustainable products."

"We are thrilled to take a step forward with our long-term partner LyondellBasell. With the new acquisition,?we will together speed up the use of quality circular polymers in Europe and support industrial manufacturers' efforts to reach their environmental targets," commented Jean-Marc Boursier, SUEZ Group COO. "It also confirms SUEZ's ambition to become the world leader in environmental services by 2030."

The TIVACO facility operates five production lines capable of processing approximately 22,000 tonnes of recycled plastic per year. This acquisition builds on the companies' 2018 acquisition of QCP, a plastics recycling company in Geleen, the Netherlands which is capable of processing approximately 35,000 tonnes of material per year. Today, recycled materials from QCP can be found in consumer products including Samsonite's S'Cure ECO luggage collection.

QCP is committed to ending plastic waste in the environment. The joint venture leverages the two partners' respective strengths. SUEZ will utilize its leading-edge technology solutions in sorting and recycling to improve the preparation of materials to be recovered at QCP. LyondellBasell will apply its long-standing leadership in innovative plastic production technology, vast experience in product development and deep knowledge of important end markets such as consumer goods, where the company has a strong presence.

Both SUEZ and LyondellBasell are members of the Alliance to End Plastic Waste, a global, cross-value chain non-profit organization committed to ending plastic waste in the environment. The Alliance brings together a diverse network of resources and expertise to create and scale innovative solutions around the world.

As MRC reported earlier, in September 2020, LyondellBasell, the world’s largest licensor of polyolefin technologies, announced that Duqm Refinery and Petrochemical Industries Company LLC (DRPIC) hds selected LyondellBasell’s world-leading PP and high-density polyethylene (HDPE) technologies for a new facility.

The new plants will comprise of a PP plant that will utilize LyondellBasell’s Spheripol PP process technology to produce 280,000 metric tons per year (m.t./yr) of PP and a 480-m.t./yr high-density polyethylene (HDPE) plant which will utilize LyondellBasell’s Hostalen ACP process technology and will be built in Al Duqm, Oman.once again the trust investors and operators place in our leading polyolefin expertise."

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies.
MRC

COVID-19 - News digest as of 07.12.2020

1. Shell plans to complete Convent, Louisiana, refinery shutdown in 10 days

MOSCOW (MRC) -- Royal Dutch Shell Plc plans to complete the permanent shutdown of its 211,146 barrel-per-day (bpd) Convent, Louisiana, refinery within 10 days, reported Hydrocarbonprocessing with reference to sources familiar with the company’s plans. Shell spokesman Curtis Smith declined on Thursday to comment on the company’s timeline for idling the refinery. Shell has been unable to sell the refinery since putting it on the auction block in July. The plant became unprofitable in March as fuel demand was hammered in the COVID-19 pandemic. Shell said on Nov. 5 it would shut the refinery.


MRC

Crude oil futures rally as uncertainty over OPEC+ production plan eases

MOSCOW (MRC) -- Crude oil futures rose during mid-morning trade in Asia Dec. 4, extending overnight gains, as uncertainty over OPEC+ production plan abated after the alliance settled on a compromise deal that would see a gradual and deliberated increase in production quotas from 2021 onward, reporter S&P Global.

At 11 am Singapore time (0300 GMT), ICE Brent February contract was up 94 cents/b (2.05%) from the Dec. 3 settle to US49.65/b, while the January NYMEX light sweet crude contract was up 82 cents/b (1.8%) at US46.46/b.

Prior to this, clarity over the OPEC+ production had also propelled the Brent market 0.95% higher on Dec. 3 to settle at its highest level since March 5, with the WTI marker also rising 0.80% to settle just a shade under its most recent high on Nov. 25.

During its Dec. 3 meeting, OPEC+ increased the alliance's collective production quota by 500,000 b/d from January 2021, and decided to meet monthly to determine if further increases are warranted.

Each monthly adjustment, according to Russian energy minister Alexander Novak, will not exceed 500,000 b/d in either direction, with Iranian oil minister Bijan Zanganeh telling state media that this arrangement will persist until total production rise reaches 2 million b/d.

"This was a compromise deal designed to hold together the members who are faced with varying economic conditions and have conflicting agendas," Vandana Hari, CEO of Vanda Insights, said.

This production plan falls short of expectations, which were centered around a three-to-six month extension of the current 7.7 million b/d production cuts, but nevertheless placated the market, which had started to grow uneasy over reports of fractiousness within the alliance.

"This is a relief rally that we are seeing in crude prices more in response to what did not happen as compared to what was decided. The market is relieved that the two possibilities of a supply increase of 2 million b/d or even a complete breakdown of collaboration over the disagreements did not come to pass," Hari said.

Hari, however, noted that this arrangement will introduce more volatility to oil prices going forward, as each monthly meeting over the production cuts will create apprehension in the market, and repeated discussion over an issue this contentious may also threaten the unity of the alliance.

"As the market digests the full implications of this deal, the bullish mood that we are seeing right now will dissipate a little, and as the market looks beyond, the focus is going to settle back once again on the vaccine versus virus debate, and what impact these two factors will have on the oil demand in the immediate term."

As MRC invofmed 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% 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 PE and PP.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.
MRC