OQ Chemicals declares global sales control for carboxylic acids, aldehydes

MOSCOW (MRC) -- Global sales control has been announced by OQ Chemicals (Monheim am Rhein, Germany) on all grades of its carboxylic acids and aldehydes, said Chemweek.

N-heptanoic acid, n-pelargonic acid, n-heptanal, n-nonanal, and n-undecanal have all been placed under sales control, effective immediately.

OQ says it has implemented the measure due primarily to strong demand and recent short-term raw material disruptions, as well as in order to prepare for a planned maintenance turnaround at the company’s production site at Bay City, Texas.

"OQ Chemicals will be evaluating all orders for the future supply of the products listed above to ensure that the company can maintain the reliability of supply for its long-term customers per contractual and other ongoing commitments," it says. Sales control will remain in place until further notice, it adds.

The company announced sales control for its US oxo intermediate products in late January due to increased demand and supply shortages for oxo intermediate products produced at its Bay City facility.

As MRC wrote before, in September 2020, OQ Chemicals entered into an agreement to license its advanced proprietary technology for the production of ethylene and propylene derivatives to Duqm Refinery and Petrochemicals Industries Company (DRPIC) in Oman. DRPIC, a joint venture between Oman Oil Company and Kuwait International Oil Company, is a planned grassroots petrochemical complex at Duqm, Oman. In all, DRPIC awarded twelve license packages to international licensors.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 240,000 tonnes in 2020 (calculated using the formula: production, minus exports, plus imports, exluding producers' inventories as of 1 January, 2020).

OQ Chemicals, formerly Oxea, is a global manufacturer of oxo intermediates and oxo derivatives, such as alcohols, polyols, carboxylic acids, specialty esters, and amines. These products are used for the production of high-quality coatings, lubricants, cosmetics and pharmaceutical products, flavours and fragrances, printing inks and plastics. OQ Chemicals is part of OQ, an integrated energy company that delivers sustainability and business excellence. OQ operates in 16 countries and covers the entire value chain from exploration and production to the marketing and distribution of its products.
MRC

MOSCOW (MRC) -- Sahara International Petrochemical (Sipchem) has restarted its ethyl acetate plant, Sipchem Chemicals (SCC), after a scheduled turnaround, said Chemweek.

The turnaround at SCC, which was conducted on its 100,000 t/yr ethyl/butyl acetate swing unit, began on 1 February 2021.

Sipchem, a producer of methanol, polymers, and acetic acid, in 2019 merged its operations with fellow Saudi Arabia-based Sahara Petrochemicals, a supplier of polypropylene (PP). Since the merger, Sipchem has begun to operate a 468,000 t/yr propane dehydrogenation unit.

As MRC reported previously, Sipchem has recently restarted its PP and low density polyethylene (LDPE) plants in Jubail after completing the maintenance works. The turnarounds also began on 1 February, 2021, and lasted during approximately six days.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 240,000 tonnes in 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) -- Crude oil futures strengthened during mid-morning trade in Asia Feb. 15 as the demand outlook brightened on hopes that the coronavirus pandemic is abating and on expectations of an upcoming stimulus package from the US, reported S&P Global.

The gains are also buoyed by the tightness in supply from OPEC+ production cuts and supplemented by disrupted production in the US.

At 10:52 am Singapore time (0252 GMT), the ICE Brent April contract was up by USD1.26/b (2.01%) from the Feb. 12 settle to USD63.68/b, while the March NYMEX light sweet crude contract was up USD1.26/b (2.11%) to USD60.73/b.

The progress made in combating the coronavirus pandemic globally contributed to the strong outlook for economic recovery across the broader financial markets, including oil.

"More countries and regions are easing lockdown measures with vaccine rollouts helping to contain the spread of the coronavirus," Margaret Yang, strategist at DailyFX, said in a Feb. 15 note.

"A marked decline in daily new infections painted a brighter outlook of economic recovery and normalization of business activity. A better-handled pandemic situation, alongside an impending Democratic fiscal stimulus package, have buoyed reflation hopes and led equity, crude oil and industrial metals higher," she added.

The US stimulus package, currently proposed at USD1.9 trillion, is making significant headway in its approval process, giving market participants hope for a smooth and speedy economic recovery in the US.

"A risk-on tone across markets continues to benefit commodity markets...with investors focused on the prospect of US stimulus measures boosting demand," ANZ analysts said in a Feb. 15 note.

Alongside bolstered expectations of demand recovery, supply side fundamentals are also providing support to the market, fueling the continued rally.

The OPEC+ alliance is maintaining supply curbs through the month, with Saudi Arabia reducing its production voluntarily by an additional 1 million b/d till March, which is clearing oil surplus in the market, according to analysts.

Furthermore, the risk of increased production from US shale oil companies amid rising oil prices has not materialized due to poor weather conditions in the region, making production difficult and keeping supply in the global markets tight.

"A barrage of a winter storm raging across the Permian Basin (is) resulting in crude streaming from those wells to slow or halt completely according to boots on the ground," Stephen Innes, chief global strategist at Axi, said in a Feb. 15 note.

As MRC informed previously, oil producers face an unprecedented challenge to balance supply and demand as factors including the pace and response to COVID-19 vaccines cloud the outlook, according to an official with International Energy Agency's (IEA) statement.

We remind that the COVID-19 outbreak has led to an unprecedented decline in demand affecting all sections of the Russian economy, which has impacted the demand for petrochemicals in the short-term. However, the pandemic triggered an increase in the demand for polymers in food packaging, and cleaning and hygiene products, according to GlobalData, a leading data and analytics company. With Russian petrochemical companies having the advantage of access to low-cost feedstock, and proximity to demand-rich Asian (primarily China) and European markets for the supply of petrochemical products, these companies appear to be well-positioned to derive full benefits from an improving market environment and global economy post-COVID-19, says GlobalData.

We also remind that in December 2020, Sibur, Gazprom Neft, and Uzbekneftegaz agreed to cooperate on potential investments in Uzbekistan including a major expansion of Uzbekneftegaz’s existing Shurtan Gas Chemical Complex (SGCC) and the proposed construction of a new gas chemicals facility. The signed cooperation agreement for the projects includes “the creation of a gas chemical complex using methanol-to-olefins (MTO) technology, and the expansion of the production capacity of the Shurtan Gas Chemical Complex”.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 240,000 tonnes in 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) -- Polypropylene (PP) imports to the Ukrainian market totalled 8,800 tonnes in January 2021, down by 11% year on year. Shipments of all grades of propylene polymers decreased, according to a MRC's DataScope report.

January 2021 PP imports to Ukraine dropped to 8,800 tonnes from 9,900 tonnes and 10,900 tonnes in January and December 2020, respectively, local companies encountered major restrictions on shipments from suppliers in the Middle East and in Russia. Overall imports of propylene polymers reached 135,300 tonnes in 2020.

The supply structure by PP grades looked the following way over the stated period.

January imports of propylene homopolymers (homopolymer PP) to the Ukrainian market decreased due to restrictions on exports from sellers in the Middle East and Russia and were 6,800 tonnes, whereas these figures were about 7,800 tonnes and 8,000 tonnes in January an December 2020, respectively. Overall homopolymer PP imports reached 102,800 tonnes in 2020.

Last month's imports of block copolymers of propylene (PP block copolymers) were 900 tonnes, compared to 900 tonnes and 1,300 tonnes in January and December 2020, respectively. Overall, 13,600 tonnes of PP block copolymers were imported last year.

January imports of stat-copolymers of propylene (PP random copolymer) fell to 900 tonnes from 1,000 tonnes and 1,300 tonnes in January and December 2020, respectively. Overall imports of PP random copolymers reached 16,400 tonnes in 2020.

Overall imports of other propylene copolymers were about 138 tonnes over the stated period.

MRC

MOSCOW (MRC) -- US polymer producer Total Petrochemicals & Refining USA said that its production unit at La Porte, Texas, is now producing polypropylene (PP), the company said in a letter Feb. 11 seen by S&P Global Platts.

"Our production unit that resulted in our force majeure declaration is now producing prime product," the letter said.

The complex was under force majeure for copolymer polypropylene products since Dec. 17 and previously said the restart of the unit was on schedule for Feb. 6 and had moved it up to Jan. 31.

The company has also said previously that it expects to be back to normal production in early-April.

The plant has nameplate capacity totaling 1.15 million mt/year of PP, according to S&P Global Platts Analytics data. The letter indicated that the company is now producing prime product with its PP unit.

The company was not available for immediate comment Feb. 11.

As MRC reported earlier, in November 2019, Total disclosed that itis evaluating construction of a new gas cracker at its Deasan, South Korea, joint venture (JV) with Hanwha Chemical.

According to MRC's ScanPlast report, PP shipments to the Russian market reached 1 240,000 tonnes in 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.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
MRC