BASF appoints new head for specialty chemicals trading division BTC Europe

MOSCOW (MRC) -- Jose Carlos Corral Montilla has succeeded Dr. Marko Grozdanovic to become BTC Europe’s new Managing Director and Vice President. The company is BASF’s European sales organisation which focuses on specialty chemicals, reported Process Worldwie.

Thus, as of November 1, 2020, Jose Carlos Corral Montilla has become the new Managing Director and Vice President of BTC Europe.

Montilla joined BASF in 1998. He started his career in Leather and Textile Chemicals at BASF Spain in Barcelona, where he held different positions in supply chain, sales and product management. In 2005, he moved to Germany to take over a role in Global Strategic Marketing for Leather Chemicals and became Head of Product Management for Leather Chemicals in North America and EMEA two years later.

After having transferred to Business Management Leather Chemicals in North America and EMEA in 2008, he became Director Global Marketing Leather Chemicals in Singapore in 2013. In his latest position, before assuming responsibility as Managing Director at BTC Europe, he worked as Director Global Product Management Plastic Additives, BASF East Asia, in Hong Kong.

“I am delighted to become a part of the BTC Europe team,” says Montilla. “The ability to connect with our customers, understand their needs and create value for them with passion and industry expertise is what drives us at BTC Europe. I am very much looking forward to grow and develop this business further at BTC Europe.”

Montilla studied Business Administration, Market Research and Advanced Industrial Marketing in Barcelona, Spain and Fontainebleau, France.

Montilla succeeds Dr. Marko Grozdanovic, who after four years at BTC Europe was appointed to Head of the Personal Care Europe regional business unit and new Managing Director of BASF Personal Care and Nutrition, effective October 1, 2020.

As MRC informed previously, German chemicals maker BASF said in early November it had put a project to build a petrochemicals complex in India worth up to USD4 billion on hold due to the economic uncertainty caused by the COVID-19 pandemic. BASF signed a memorandum of understanding with Abu Dhabi National Oil Company (ADNOC), Adani Group and Borealis AG in October 2019 to evaluate a collaboration to build the chemical site in Mundra, in India’s Gujarat state.

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.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
MRC

U.S. crude stocks soar 15 MMbbls amid record surge in net imports

MOSCOW (MRC) - U.S. crude oil stockpiles last week surged the most since April, jumping more than 15 million barrels, as imports rose and exports plunged, the Energy Information Administration said Reuters.

The unexpected supply build and record rise in net imports stunned the oil market, which has been weighed down by low demand due to the coronavirus pandemic. "It defies the math that is in the market, for sure," said Bob Yawger, director of Energy Futures at Mizuho in New York. "Do U.S. refiners, at a time when they're closing refineries, need to increase imports by a million barrels a day? That's ridiculous."

Crude inventories rose by 15.2 million barrels in the week to Dec. 4 to 503.2 million barrels, the EIA said, compared with analysts' expectations in a Reuters poll for a 1.4 million-barrel drop. Net crude imports rose by a record high of 2.7 million barrels per day, the EIA said. That boosted U.S. Gulf Coast stocks by 11.8 million barrels, the most in one week ever, according to EIA data.

U.S. crude exports plunged by 1.6 million bpd to just 1.8 million bpd, the lowest since 2018, while imports rose 1.08 million bpd. Crude markets gave up early gains on the news, with U.S. crude and global benchmark Brent changing course to trade lower. U.S. crude settled 8 cents lower at $45.52 a barrel, after touching a session low of $44.95 a barrel.

Gasoline and distillate stocks were also higher, causing U.S. gasoline futures to pare gains as heating oil futures turned negative. Gasoline stockpiles rose by 4.2 million barrels in the week to 237.9 million barrels, the EIA said, compared with expectations for a 2.3 million-barrel rise.

Distillate stockpiles, which include diesel and heating oil, rose by 5.2 million barrels in the week to 151.1 million barrels, versus expectations for a 1.4 million-barrel rise, the EIA data showed. Crude stocks at the Cushing, Oklahoma, delivery hub fell by 1.4 million barrels in the last week, EIA said. Refinery crude runs rose by 424,000 bpd, as refinery utilization rates rose by 1.7 percentage points, the EIA 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% 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

Huntsman ups Q4 guidance on broad gains

MOSCOW (MRC) -- Huntsman (The Woodlands, Texas) has updated its fourth-quarter outlook citing gains in all segments. The company now expects fourth-quarter adjusted EBITDA to increase 20–25% year-over-year (YOY), exceeding previous guidance, as per Chemweek.

Huntsman’s fourth-quarter 2019 adjusted EBITDA totaled USD182 million, down 12% YOY from USD207 million.

At the time of its third-quarter earnings release, Huntsman forecast fourth-quarter adjusted EBITDA in the polyurethanes segment “in line” with the third quarter’s USD156 million. The company now expects an increase of at least 20% owing to stronger than expected overall demand as well as higher methylene di-para-phenylene diisocyanate (MDI) component margins, particularly in Asia.

For the performance products segment, Huntsman has increased its adjusted EBITDA forecast from “near flat” versus the third quarter’s USD36 million to an increase of at least 15%, and for the advanced materials segment, from a slight decline from the third quarter’s USD25 million to “approximately in-line.”

Huntsman expects adjusted EBITDA in the textile effects segment to be “flat” versus the USD18 million turned in during the fourth quarter of 2019. That would represent a 125% increase over the 2020 third quarter’s USD$8 million.

As MRC reported earlier, Nanjing Jinling Huntsman, a joint venture between Huntsman and Sinopec Jinling, shut its propylene oxide plant in Nanjing (Nanjing, Jiangsu Province, China) on November 1 for scheduled maintenance. This plant with a capacity of 240,000 tonnes/year of propylene oxide was closed until approximately 25 November.

According to MRC's ScanPlast report, 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.

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately USD7 billion. The company's chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. The company operates more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions.
MRC

Linde, Snam to collaborate on clean hydrogen projects in Europe

MOSCOW (MRC) -- Linde announced it has signed a memorandum of understanding (MoU) with Snam to jointly develop clean hydrogen projects and related infrastructure in Europe. Snam, a world leading energy infrastructure company, owns and operates the largest natural gas transmission network in Europe, having approximately 42,000 kilometers of pipeline across the continent, said the company.

Linde and Snam will work together to promote key technologies along the hydrogen value chain and develop opportunities for joint investments in commercial projects in the areas of production, distribution, compression and storage.

"Hydrogen is expected to play a significant role in achieving the European Green Deal goals," said Steve Angel, Chief Executive Officer, Linde. "We are pleased to collaborate with Snam, a recognized leader at the forefront of the energy transition, in the development of the clean hydrogen economy in Europe."

"With this agreement, we combine the know-how and innovative capabilities of both Linde and Snam in order to contribute to scaling-up hydrogen and reaching climate goals, aligned with the European Hydrogen Strategy," said Marco Alvera, Chief Executive Officer, Snam. "The collaboration with one of the world's leading companies in the sector strengthens our role as operator along the hydrogen value chain and lays the foundation for new joint projects."

As MRC informed earlier, Linde has entered into a long-term agreement with Samsung Electronics to supply ultra-high purity industrial gases for the South Korean tech giant’s latest semiconductor facilities in Pyeongtaek, South Korea. Currently the main supplier of industrial gases to Samsung’s existing facilities in Pyeongtaek, Linde said this second agreement will see the company build, own and operate air separation plants in Samsung’s latest world-class manufacturing complex.

As MRC informed earlier, Linde GmbH and Shell have announced an exclusive collaboration agreement on ethane-oxidative dehydrogenation (E-ODH) technology for ethylene production. The catalytic process is an alternative route to ethane steam cracking, offering the potential of economic advantages, acetic acid co-production and significantly lower overall carbon footprint through electrification of power input.

Ethylene and propylene are feedstocks for producing 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 density 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.

Linde is a global leader in the production, processing, storage and distribution of hydrogen. It has the largest liquid hydrogen capacity and distribution system in the world. The company also operates the world's first high-purity hydrogen storage cavern coupled with an unrivaled pipeline network of circa 1,000 kilometers to reliably supply its customers. Linde has installed close to 200 hydrogen fueling stations and 80 hydrogen electrolysis plants worldwide. The company offers the latest electrolysis technology through its newly formed joint venture ITM Linde Electrolysis GmbH.

MRC

Sinopec-SK Wuhan Petrochemical to restart its cracker in Wuhan in H2 December

MOSCOW (MRC) -- SKGC's joint venture Sinopec-SK Wuhan Petrochemical plans to restart its naphtha-fed steam cracker in Wuhan in the second-half of December as scheduled after the turnaround and debottlenecking, reported S&P Global with reference to the source's statement.

The cracker was shut down in October, S&P Global Platts reported previously.

SK Wuhan's steam cracker is able to produce 800,000 mt/year of ethylene and 400,000 mt/year of propylene.

After the debottlenecking, the cracker's ethylene production capacity will be increased to 1.1 million mt/year and propylene capacity to 550,000 mt/year.

The company will add a new 60,000 mt/year butadiene unit at the plant.

As MRC informed earlier, South Korea's SK Global Chemical (SKGC) shut its small No. 1 naphtha-fed steam cracker in Ulsan permanently on Dec. 10 due to aging-related issues. The No. 1 steam cracker is able to produce 200,000 mt/year of ethylene and 140,000 mt/year of propylene. The company will keep normal operations of its No. 2 steam cracker at the same location.

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