Amcor has broken new ground in the Argentine dairy market

MOSCOW (MRC) -- Packaging supplier Amcor has broken new ground in the Argentine dairy market by developing the first fresh milk bottle made of transparent post-consumer recycled (PCR) PET resin, said Canplastics.

The custom-designed one-litre container for leading dairy maker Mastellone Hnos SA, headquartered in Buenos Aires, supports the positioning of the La Serenisima Original milk brand as a natural product while also delivering optimum shelf life and increased sustainability benefits.

Latin American dairy companies are increasingly using clear PET bottles to showcase freshness and premium quality. The cold-fill bottle contains 20 per cent PCR content. "In a market that has remained stagnant for several years, we’ve broken the rules by developing an entirely new format offering for fresh milk,” Martin Darmandrail, Amcor’s specialty containers director for Argentina, said. “We’ve shaken things up with a unique fresh milk package with the durability, freshness, performance, and sustainability benefits of PET."

The container includes a 38-mm finish and a HDPE screw cap from Bericap North America. A key technical challenge was limiting light exposure and preventing damage to the product. To preserve the contents, a special barrier was developed to help extend shelf life. The project builds on Amcor’s existing partnership with Mastellone Hnos – in October 2019, Amcor Rigid Packaging’s LATAM team worked with the brand to launch a shelf-stable, ultra-high temperature (UHT) white milk in aseptic, white-coloured PET bottles.

In the midst of today’s hygiene concerns, Amcor officials said, capped and sealed PET bottles keep beverages protected from pathogens, Amcor officials said. They’re also sealed to combat contamination and are re-sealable.

In Argentina, the new fresh milk product will be available in select metropolitan areas with broader distribution later.

As per MRC, Amcor retained the highest sustainability rating in the packaging sector and the second highest score possible from MSCI ESG. In 2020, Amcor a leading packaging company received a rating of AA in the MSCI ESG Ratings assessment. This rating is the highest in the packaging industry and is the second highest rating available. 2020 is the 4th year in a row that Amcor has achieved an AA rating - MSCI describes AA rated companies as ‘a company leading its industry in managing the most significant ESG risks and opportunities’.

According to ICIS-MRC Price Report, March formular prices of Russian PET were in the range of Rb90,000-105,000/tonne CPT Moscow, including VAT.

Amcor works with leading companies around the world to protect their products differentiate brands, besides improving value chains through a range of flexible and rigid packaging including specialty cartons, closures, and services. The company is focused on making packaging that is increasingly light-weighted, recyclable and reusable, and is made by using a rising amount of recycled content. Presently, Amcor has operations at 250 locations in 40-plus countries.
MRC

MOSCOW (MRC) -- Crude oil futures rose during mid-morning trade in Asia March 11 as bullish US products data from the Energy Information Administration negated a large build in US crude inventories, with the market also gaining support from the US Congress' approval for fiscal relief and the depreciation of the dollar, reported S&P Global.

At 11:08 am Singapore time (0308 GMT), the ICE Brent May contract was up by 53 cents/b (0.78%) from the March 10 settle to USD68.43/b, while the April NYMEX light sweet crude contract was up by 54 cents/b (0.84%) to USD64.98/b.

Data released by the EIA late March 10 showed a massive 13.8 million-barrel build in US crude inventories in the week ended March 5. The build pushed stocks to 498.4 million barrels, and at 6%, opened up the widest surplus to the five-year average since mid-January.

The build was larger than expected, as analysts surveyed by S&P Global Platts had forecast crude stocks to increase by only 2.7 million barrels. Regardless, the market barely flinched, and instead chose to focus its attention on the bullish products data.

According to the EIA, US gasoline inventories and distillate inventories plummeted, falling 11.8 million barrels and 5.5 million barrels, respectively.

The market was particularly reassured by indications of a rise in gasoline and distillate demand. Implied gasoline demand jumped by more than 7% on the week to 8.73 million b/d, the strongest since early November 2020, whereas implied distillate demand surged by more than 18% on the week to 4.49 million b/d, the strongest since November 2019.

"Overall (gasoline) demand was stronger, with apparent consumption hitting over 8 million b/d as vaccinations and better weather boosted road travel. In fact, congestion in New York is rising, while toll route traffic has risen the fastest since November 2019," ANZ analysts said in a March 11 note.

Sentiment in the market also received a boost after the US House of Representatives approved a USD1.9 trillion stimulus package on March 10, after the US Senate had voted in favor of the package on March 6.

The stimulus package is expected to increase oil and energy demand by expediting global economic recovery, according to Laurence Boone, the OECD's chief economist, who told the Financial Times that it will add 1% to global economic growth.

During the March 11 morning trade, oil prices were also buoyed by the depreciation in the US dollar, which analysts said was the result of muted US inflation data bringing stability to US bond yields, and improving risk sentiment in the market. At 10:54 am, the March contract for the US dollar index was down 0.184% from the March 10 close at 91.795.

"A weaker dollar on Wednesday (March 10) supported energy prices along with better (economic) data," Avtar Sandu, Philips Futures' senior commodities manager said in a March 11 note. Sandu said that strong February credit growth in China and a robust increase in January manufacturing in France constituted the economic data supporting oil.

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 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.
MRC

MOSCOW (MRC) -- Stamicarbon, the innovation and license company of Maire Tecnimont Group and Henan Xinlianxin Chemicals Group Co. Ltd. in China, have signed licensing and equipment supply contracts for a second Ultra-Low Energy grass root urea plant, said Hydrocarbonprocessing.

The virtual signing event had all the spirit of a traditional ceremony, despite participants connecting from different countries via videoconferencing.

The first plant ever designed with Stamicarbon’s innovative LAUNCH MELT™ Ultra-Low Energy design, is also licensed to this customer and is currently in commissioning at the site of their subsidiary Jiujiang Xinlianxin Fertilizer Co. Ltd. in Jiangxi province. This new contract, was signed even before the scheduled start-up of the first plant in February. It represents the third licensing project in five years between Henan Xinlianxin Chemicals Group and Stamicarbon. It started with a revamping project signed in 2016, followed by the first Ultra-Low Energy grass root plant in 2017 and this latest contract for their second Ultra-Low Energy plant in the final days of 2020.

Stamicarbon will deliver the Process Design Package and the proprietary high pressure equipment in Safurex® and associated services for both the urea melt plant and finishing by prilling. The urea plant with a Pool Reactor will have a capacity of 2334 mtpd and is expected to start up in 2023.

The urea melt plant will feature Stamicarbon’s innovative Ultra-Low Energy design, allowing for heat to be used three times (instead of two), bringing energy savings currently unrivalled by any competitor. Thus, showing Stamicarbon’s commitment towards innovation and technology development to realize sustainable fertilizer solutions. By significantly reducing both steam and cooling water consumption, the design also substantially reduces plant operating costs (OPEX). The Ultra-Low design is not only suitable for new plants, it can also be used as a powerful revamp tool for both CO2 stripping and conventional urea plants.

As per MRC, With effect from January 1, 2011, Stamicarbon, the licensing and IP Center of Maire Tecnimont S.p.A., acquired the Italian engineering company Noy Engineering from Tecnimont. With this acquisition the extensive licensing, innovation and customer service experience of Stamicarbon is combined with the polyester and polymerization technologies of Noy Engineering. Noy Engineering designs and builds plants worldwide, based on proprietary technologies. It has developed an extensive portfolio of Polymer technologies PA6.6 & PA6, PET and Acrylic. There are more than 100 plants already designed, constructed and in operation with Noy's technologies, which is equivalent to more than 1 million metric tons per year production installed worldwide.

As per MRC, Maire Tecnimont S.p.A. announced that its subsidiaries Tecnimont S.p.A. and KT - Kinetics Technology S.p.A. have signed with SOCAR’s subsidiary Heydar Aliyev Oil Refinery two Engineering, Procurement and Construction contracts, as part of the Modernization and Reconstruction of Heydar Aliyev Oil Refinery in Baku, Azerbaijan. SOCAR is the State Oil Company of Azerbaijan Republic. The overall contracts’ value equals to approximately USD 160 million.

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).
MRC

1. India asks refiners to diversify, cut reliance on Middle East oil after OPEC+ decision

MOSCOW (MRC) -- India has asked state refiners to speed up the diversification of oil imports to gradually cut their dependence on the Middle East after OPEC+ decided last week to largely continue production cuts in April, reported Reuters with reference to two sources. India, the world's third biggest oil importer and consumer, imports about 84% of its overall crude needs with over 60% of that coming from Middle Eastern countries, which are typically cheaper than those from the West. Most of the OPEC+ producers, led by world's top exporter Saudi Arabia, last week decided to extend most output curbs into April. India, hit hard by the soaring oil prices, has urged producers to ease output cuts and help the global economic recovery. In response, the Saudi energy minister told India to dip into strategic reserves filled with cheaper oil bought last year.


MRC

MOSCOW (MRC) -- Oil prices fell after a large jump in US crude inventories in the aftermath of last month's Texas winter storm, but price declines were limited due to an upbeat forecast for global economic recovery, reported Reuters.

Brent crude lost 30 cents, or 0.4%, at USD67.22 a barrel by 11:31 a.m. EST (1631 GMT) and US West Texas Intermediate crude shed 38 cents, or 0.6%, at USD63.63 a barrel.

US crude oil stocks jumped 13.8 million barrels last week, far exceeding forecasts for a 816,000-barrel rise, as the nation's oil industry continued to feel the effects of a winter storm mid-February that stalled refining and forced production shut-ins in Texas.

Producers appear to be coming back online faster than refiners, swelling inventories, analysts said.

Crude production rose to 10.9 million barrels per day, rebounding to near levels before the freeze, while refinery utilization rates jumped 13 percentage points, but that only brought overall capacity use to 69%, far below seasonal averages for this time of year.

“This could be a little bit of a headwind for prices because the production number is coming up faster than people thought,” said Phil Flynn, senior analyst at Price Futures Group in Chicago.

The pandemic-hit global economy is set to rebound with 5.6% growth this year and expand 4% next year, the Organisation for Economic Cooperation and Development (OECD) said in its interim economic outlook. Its previous forecast had been for growth of 4.2% this year.

"When it comes to lifting market sentiment, there is very little that can rival an upgrade to the post-COVID economic recovery," said Stephen Brennock of broker PVM.

Oil prices have been steadily rallying for several months as OPEC+ - consisting of the Organization of the Petroleum Exporting Countries and allies - kept supply curbs in place. After briefly touching USD70 per barrel earlier this week, Brent crude has edged off.

OPEC+ agreed last week to largely maintain production cuts in April.

Saudi Arabia's foreign minister said that the kingdom and Russia were keen for fair oil prices and will continue their cooperation in the framework of the OPEC+ group.

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 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.
MRC