Polynt increases composite prices on rising costs

MOSCOW (MRC) -- Polynt Composites has announced a price increase for resins for the composite materials industry, effective from January 15 in Europe, the Middle East and Africa (EMEA), said Chemweek.

In detail, the increase will be equal to 100 euros per ton for the entire range of unsaturated polyester resins and gelcoats, while for the vinylester ones it will reach 180 euros / ton. "Extraordinary rise" in raw material, logistics costs sees company impose third price hike since November 2020.

The increases - the Italian manufacturer said - are linked to extraordinary costs of raw materials and logistics. Similar increases were announced in December and entered into force on January 1st.

As MRC informed earlier, in early March, 2020, Polynt announced that all its sites and activities in Italy were running smoothly and according to plan, despite the news about the Italian situation related to the spreading of the coronavirus in the country.

Polynt runs two maleic anhydride (MA) plants in northern Italy, including Bergamo’s 36,000 tonne unit in Lombardy and Ravenna’s 60,000 tonne plant on the east coast. The bigger production line at Ravenna had been operating at a reduced rate since March 2019 due to technical issues, the firm previously said. A new reactor ordered is expected to be operational in 2021. Polynt also produces phthalic anhydride at Bergamo and its San Giovanni Valdarno site, as well as plasticizers at San Giovanni Valdarno.

Maleic anhydride is a feedstock for the production of tetrahydrofuran, tetrahydrophthalic anhydride, films and synthetic fibers, pharmaceuticals, detergents, plasticizers, maleic, succinic, fumaric and malic acids and a number of chemicals for agriculture.

Plasticizers are substances introduced into a polymeric material to give it elasticity and plasticity during processing and operation. In particular, plasticizers are used to produce polyvinyl chloride (PVC). The share of plasticizers used for the production of PVC products is about 80%.

As per MRC, despite the coronavirus pandemic, the demand for unmixed polyvinyl chloride (PVC) in Russia did not decrease at the end of 2020, but actually remained at the level a year earlier. At the same time, prices hit record highs and continue to rise.
MRC

MOSCOW (MRC) -- Methanex Corporation announced that it expects its Titan methanol facility (“Titan”) in Trinidad (875,000 annual operating capacity) will remain idled indefinitely, said Hydrocarbonprocessing.

As a result, the Company has made the decision to restructure its Trinidad operations to support a one-plant operation and reduce its Trinidad workforce by approximately 60 positions filled by employees and long-term contractors.

To date, the facility has not able to reach an agreement for an economic longer-term natural gas agreement and given that the economic recovery path remains uncertain the company believes it is prudent to reduce costs while continuing efforts to secure longer-term gas supply. The Atlas methanol facility (Methanex interest 63.1%) is not affected by the change and continues to operate as it is underpinned by a separate natural gas supply agreement that expires in 2024.

John Floren, President and CEO, Methanex Corporation, commented, “We remain committed to doing business in Trinidad and Tobago and we believe that we will be able to secure an economic longer-term natural gas agreement for Titan in the coming years. Our operations in Trinidad are well located to supply global methanol markets and are an important component of our global production network. We are taking the necessary steps to maintain Titan to ensure a safe and efficient restart of the plant when a longer-term gas agreement is reached."

As per MRC, Air Liquide said on Wednesday that it has agreed with Methanex Corp. to supply oxygen, nitrogen and utilities to its upcoming methanol plant expansion project at Geismar, Louisiana. Air Liquide will invest more than USD270 million in two new large air separation units (ASUs) and infrastructure assets connected to its Mississippi River pipeline, and significantly increase its production capacity in the US Gulf Coast region to serve Methanex and its other customers in the industrial basin that encompases Geismar and Baton Rouge.

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

According to MRC's ScanPlast report, Russia's estimated polyethylene (PE) consumption totalled 1,990,280 tonnes in the first eleven months of 2020, up by 1% year on year. Only high density polyethylene (HDPE) shipments increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 090,900 tonnes in the first eleven months of 2020 (calculated using the formula: production, minus exports, plus imports, excluding producers' inventories as of 1 January, 2020). Supply of exclusively PP random copolymer increased.
MRC

MOSCOW (MRC) -- China's crude oil throughput in November rose 3.2% on year, setting a record high on a daily basis, as a huge private refiner started trials of a new refining unit and state-owned refineries raised processing rates to meet annual targets, reported Reuters.

The country processed 58.35 million tonnes of crude oil last month, equivalent to 14.2 MMbpd, according to data from the National Bureau of Statistics (NBS) on 15 December, 2020.

That exceeded the October record of 14.09 MMbpd.

January-November throughput was 614.41 MMt, or 13.39 MMbpd, up 3.1% from the same period in 2019.

Zhejiang Petrochemical Corp in early November started a 200,000 bpd crude unit, in addition to its existing 400,000 bpd refining capacity in eastern China.

State-backed oil refineries also stepped up operation rates to meet solid demand for diesel and low-sulphur marine fuel.

According to data compiled by S&P Platts, the average crude throughput rate at Chinese state-controlled firms rose by 1 percentage point from October to 79.8% in November.

Meanwhile, PetroChina Co's Yunnan refinery shut a 260,000 bpd crude processing facility on Dec. 5 for a 50-day overhaul. Sinopec's Qingdao and Qilu facilities are scheduled to resume operations later this month after maintenance.

The NBS data also showed China's crude oil output in November at 15.96 million tonnes, or 3.88 MMbpd, up 1.2% from a year earlier.

Output for the first 11 months rose 1.6% to 180 million tonnes.

Natural gas output last month increased 11.8% from a year earlier to 16.9 billion cubic metres (bcm), the data showed, with January-to-November production jumping 9.3% on year to 170.2 bcm.

As MRC wrote previously, in January 2020, Zhejiang Petroleum & Chemical Co Ltd, one of two new major refineries built in China in 2019, started up the remaining units in the first phase of its refinery and petrochemical complex. The complex is situated in east China’s Zhoushan city. The company, 51% owned by private chemical group Zhejiang Rongsheng Holdings, said it ha started test production at ethylene, aromatics and other downstream facilities, without giving further details.

Zhejiang Petrochemical started a first 200,000 barrels per day (bpd) crude processing unit in late May, 2019, following on from the start of a 400,000-bpd refinery owned by another private chemical major Hengli Petrochemical. The newly started units at Zhejiang Petrochemical should include a second 200,000-bpd crude unit, a 1.2 million tonnes per year (tpy) ethylene unit and a 2 million tpy paraxylene unit, according to several industry sources with knowledge of the plant’s operations.

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

According to MRC's DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
MRC

MOSCOW (MRC) -- Clariant said in last week's presentation to analysts that talks for the previously announced sale of the company's pigments business will conclude in the coming weeks and an agreement is expected to be signed in the second quarter, according to Chemweek.

In addition, a reduction of the company's workforce by approximately 600, part of efficiency measures announced in February 2020, and a similar plan for its regional organizations and service units that will reduce Clariant’s workforce by a further 1,000, are on schedule, the company said.

Stephan Lynen, CFO at Clariant, said during the presentation that Clariant is in talks with potential buyers, including financial and industry companies, for the pigments business, and that the divestment is expected to close by the fourth quarter of 2021.

Conrad Keijzer, who assumed responsibility as Clariant’s new CEO on 1 January 2021, noted that restructuring the company is a priority and the workforce-reduction programs are on track and need to be completed.

Lynen said that the plan to reduce the company’s workforce by 600 is expected to be completed by the end of 2021. Meanwhile, the effects of the reorganization that will result in 1,000 job cuts, equivalent to about 6% of the company's total workforce - of which one third will be lost as a result of planned divestments - will be felt in 2021 and 2022, he said.

As MRC informed before, in October 2020, Clariant (Muttenz, Switzerland) announced the construction of a new state-of-the-art catalyst production site in China. This project represents a significant investment which further strengthens Clariant’s position in China and enhances its ability to support its customers in the country’s thriving petrochemicals industry.

The new facility will be primarily responsible for producing the Catofin catalyst for propane dehydrogenation, which is used in the production of olefins such as propylene. Thanks to its excellent reliability and productivity, Catofin delivers superior annual production output compared to alternative technologies, resulting in increased overall profitability for propylene producers, says the company. Construction at the Dushan Port Economic Development Zone in Jiaxing, Zhejiang Province was scheduled to commence in Q3 2020, and Clariant expects to be at full production capacity by 2022.

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

According to MRC's DataScope report, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints.
MRC

MOSCOW (MRC) -- The collapse in oil demand from the COVID-19 pandemic is hastening the reckoning for those refiners already struggling as new capacity overtakes demand, posing an existential threat to many, particularly Europe’s ageing plants, said Chemweek.

Even before the pandemic struck, which at its height destroyed over 20% of global oil demand, analysts expected global refining capacity would have to rationalize, particularly in Europe. According to consultants WoodMac, 1.4 million barrels per day, or around 9%, of refining capacity is under threat of rationalization in Europe in 2022-2023.

WoodMac declined to name specific refineries, but in a list sent to its clients and seen by Reuters, BP’s 377,000 bpd Rotterdam refinery, Total’s 102,000 bpd Grandpuits refinery in France and Petroineos’ 200,000 bpd Grangemouth refinery in Scotland were among 11 plants mentioned. The three companies did not immediately reply to a Reuters request for comment. Last week, energy trader Gunvor said it was considering mothballing its loss-making Belgian refinery.

Goldman Sachs expects global refinery utilization rates in 2021-2024 to be 3% lower relative to 2019, heightening competition and eventually leading to permanent plant closures in developed markets.It adds a “risk weight” to capacities beyond 2021, forecasting a 6 million bpd net capacity increase over the next five years, around 2 million bpd below the International Energy Agency’s forecast.

European refining has seen several waves of rationalizations, most recently in the wake of the 2008-2009 financial crisis. “In 2023 it could well be that two-thirds of the refineries in Europe don’t make any money, or lose money on a cash basis,” Alan Gelder VP Refining, Chemicals and Oil Markets at WoodMac said.

Strong labor unions are making refinery closures in many European countries difficult. Two of Europe’s biggest refiners, Total and Eni, have managed to shutdown some capacity in the past decade, and to turn some sites into biofuel operations.

Total, having already converted its La Mede refinery into making biofuels, is considering a second biofuel facility in France. Capacity on the U.S. Coast, Japan and some older, less sophisticated sites in Asia is also under threat, WoodMac says. “On the U.S. east coast, refiners that process lighter sweeter grades, like Trainer and Bayway, might be in trouble,” Kevin Waguespack, refinery consultant at Baker O’Brien said.

He added that the lack of access to cheap crude in the northeast was the U.S. region’s “Achilles heel”. “Less competitive European refineries have been in trouble and the pandemic will put another nail in the coffin for them,” said John Auers, a refining analyst at consultancy Turner, Mason & Co. “Even before the pandemic, the IMO was going to disadvantage some refiners that made a lot of fuel oil that couldn’t afford to make upgrades,” Auers said.

The International Maritime Organization (IMO) changed the rules on shipping fuel at the start of the year so that all ships can only burn fuel with a maximum 0.5% sulfur, unless they have sulphur-cleaning kits. At least one of the Australia’s four remaining refineries could close unless the government steps in as the pandemic hits demand, sources told Reuters.

As MRC informed earlier, Enel Green Power (EGP), the renewable energy subsidiary of Italy’s Enel Group, and Maire Tecnimont (Rome, Italy) have agreed to work together on the development and construction of a green hydrogen production plant in the US.

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

According to MRC's ScanPlast report, Russia's estimated polyethylene (PE) consumption totalled 1,990,280 tonnes in the first eleven months of 2020, up by 1% year on year. Only high density polyethylene (HDPE) shipments increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 090,900 tonnes in the first eleven months of 2020 (calculated using the formula: production, minus exports, plus imports, excluding producers' inventories as of 1 January, 2020). Supply of exclusively PP random copolymer increased.
MRC