PP imports to Ukraine dropped by 3% in Q1 2021

MOSCOW (MRC) -- Ukraine's polypropylene (PP) imports totalled about 30,000 tonnes in January-March of this year, down 3% year on year.
The supply of all grades of propylene polymers decreased, with the exception of propylene block copolymers (PP block copolymers), according to the DataScope Report.

March PP imports into Ukraine increased to 10,700 tonnes from 10,500 tonnes a month earlier. The main increase accounted for the procurement of propylene copolymers, while imports of homopolymer PP declined. Overall imports of propylene polymers reached 30,000 tonnes in January-March 2021, compared to 31,000 tonnes a year earlier.

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

Last month's imports of homopolymer PP to the Ukrainian market decreased due to export restrictions from producers from Azerbaijan and Saudi Arabia and amounted to 7,700 tonnes, while in February this figure was about 8,800 tonnes. Thus, overall homopolymer PP imports reached 23,300 tonnes in the first three months of 2021, down 5% year on year.

Last month's imports of block propylene copolymers (PP block copolymers) were about 1,400 tonnes, compared to 600 tonnes in February.
About 3,000 tonnes of PP block copolymers were imported in Q1, compared to2,700 tonnes a year earlier. March PP random copolymers imports increased to 1,200 tonnes from 800 tonnes a month earlier, supplies of pipe polypropylene increased.

Overall imports of PP random copolymer reached 2,900 tonnes in the first three months of 2021 versus 3,400 tonnes a year earlier. Overall imports of other propylene copolymers were less than 800 tonnes over the stated period.

MRC

MOSCOW (MRC) -- Overall polyethylene (PE) imports into the Ukrainian market reached 63,600 tonnes in the first three months of 2021, down by 6% year on year. High density polyethylene (HDPE) accounted for the main decrease in imports, according to MRC's DataScope report.

Last month's PE imports to Ukraine were 28,700 tonnes versus 17,700 tonnes in February, local companies increased their purchases of all PE grades. Thus, overall PE imports reached 63,600 tonnes in January-March 2021, compared to 39,900 tonnes a year earlier. HDPE imports decreased significantly, whereas imports of other PE grades increased.

The structure of PE imports by grades looked the following way over the stated period.

Last month's HDPE imports were 9,000 tonnes, compared to 5,800 tonnes in February, Ukrainian companies increased their purchases of extrusion blow moulding (EBM) PE. Overall HDPE imports totalled 19,600 tonnes in the first three months of 2021 versus 27,500 tonnes a year earlier.

March imports of low-density polyethylene (LDPE) were 8,800 tonnes versus 5,500 tonnes a month earlier, Ukrainian companies raised theipurchasessi Belarus and Russia. Overall LDPE imports reached 20,400 tonnes over the stated period, which corresponded to the last year's figure.

Last month's imports of linear low density polyethylene (LLDPE) were 9,500 tonnes, compared to 5,800 tonnes in February, shipments of film grade LLDPE from Saudi Arabia increased. Overall LLDPE imports reached 20,000 tonnes in the first three months of 2021, compared to 16,700 tonnes a year earlier.

Imports of other PE grades, including ethylene-vinyl-acetate (EVA), totalled 3,200 tonnes over the stated period, compared to 2,900 tonnes a year earlier.

MRC

MOSCOW (MRC) -- Mitsubishi Heavy Industries, Ltd. (MHI)has announced that it has invested in Starfire Energy Inc, a US developer of modular chemical plants for green ammonia and hydrogen production, according to Kemicalinfo with reference to the company's statement.

The partnership with the Colorado-based company will “advance the development of commercial scale applications to decarbonise ammonia production and unlock its potential as a zero-carbon energy carrier”, MHI said in a news release. “The investment has been executed through MHI America, joining a consortium of investors, including AP Ventures, Chevron Technology Ventures, New Energy Technologies and Osaka Gas USA.”

As per the company's press release ammonia is a solution with an energy density comparable to fossil fuels and higher than Li-ion batteries, compressed or liquid hydrogen. Ammonia can be stored and transported, leveraging established infrastructure and shipping networks. It can be used directly as a fuel or it can be ‘cracked’, and its hydrogen harvested, to provide a means of hydrogen storage and transportation.

Starfire Energy’s ‘Rapid Ramp NH3’ ammonia synthesis technology produces zero carbon ammonia using only renewable energy, air and water as inputs. The modular solution is sized to connect directly with renewable energy production, providing a scalable, distributed source of zero carbon ammonia. The company has also developed their carbon-free fire, a system to crack ammonia back into hydrogen, providing an efficient means of green hydrogen storage and transportation.

We remind that, as MRC informed before, Mitsubishi Chemical Corp (MCC) consolidated its headquarter functions for its global methyl methacrylate (MMA) business in Singapore, and renamed its major MMA subsidiaries to Mitsubishi Chemical Methacrylates, effective 1 April, 2021. The move is aimed at optimising the company's global product supply network by utilising digital technologies that connect regional production, costs and supply and demand.

We also remind that in December 2020, Mitsubishi Chemical acquired a greenfield property at a large integrated site in Geismar, Louisiana, and plans to advance its feasibility study for the design and construction of a 350,000-metric tons/year MMA plant. The plant will be the third and largest to employ the Alpha production technology developed by subsidiary Lucite. The company earlier in March this year announced its intent to build the plant.

The main application, consuming approximately 75% MMA, is in the production of polymethyl methacrylate acrylic plastics (PMMA). Methyl methacrylate is also used to produce methyl methacrylate-butadiene-styrene copolymer (MBS), used as a modifier for polyvinyl chloride (PVC).

According to MRC's ScanPlast report, Russia's overall PVC production reached 259,400 tonnes in the first three months of 2021, down by 3% year on year. All producers reduced their output over the stated period.
MRC

MOSCOW (MRC) -- Advanced Petrochemical's net profit increased by 64.4% year on year to Saudi Riyal (SR) 171m in the first quarter of the year amid higher polypropylene sales, said the company.

Th company reported revenue at SR632 mln, Gross profit SR207 mln, Operational profit SR164 mln, Net profit SR171 mln.

PP sales prices rose by 36% year on year in the quarter ending 31 March 2021. The increase in net profit was despite the decrease in sales volumes by 13% year on year in the first quarter of 2021.

The first-quarter net profit also includes SR16m share of profit on investment in SK Advanced Co in South Korea compared to a loss of SR18m losses for the same quarter of the last year.

As per MRC, Advanced Petrochemical Co. announced April 11, 2021, that operations at its polypropylene plant resumed as of March 28, 2021, and operations at its propylene plant restarted as of April 11, 2021, after the completion of scheduled maintenance works.

According to MRC's ScanPlast report, 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) -- ExxonMobil, the US energy major, is considering whether to close down its Slagen oil refinery in Norway, which has a capacity to process 120,000 barrels of crude per day, turning the site into an import terminal, reported Reuters with reference to the company's statement.

The refinery at Slagentangen near Toensberg in south-east Norway was built in 1961 and process crude oil from the North Sea, exporting about 60% of the output, according to Exxon.

It was too early to say when a final decision would be made, the company’s Esso unit in Norway said. “In practise it means that we would stop producing oil products at the refinery and instead we will import them,” Esso spokeswoman Anne Fougner said.

“Refineries in Europe operate in an increasingly challenging market, characterized by falling demand and strong competition, leading to overcapacity in the market,” Esso said in a statement.

As MRC wrote previously, ExxonMobil has shut its aromatics plant in Rotterdam-Botlek, Netherlands, for a six-week maintenance in March-April 2021. This turnaround is part of a larger repairs program at ExxonMobil"s interconnected 191,000-b/d Botlek refinery and Rotterdam aromatics plant beginning in the first quarter. The Rotterdam aromatics plant is one of the largest aromatics production facilities globally and produces pure aromatics such as benzene, orthoxylene, paraxylene (PX), and cyclohexane.

Benzene is a feedstock for the production of styrene monomer (SM), which, in its turn, is a feedstock for manufacturing polystyrene (PS).

According to MRC"s ScanPlast report, January 2021 estimated consumption of PS and styrene plastics in Russia rose by 12% year on year, totalling 45,640 tonnes. The estimated consumption increased year on year for all PS grades.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world"s oil and about 2% of the world"s energy.
MRC