Radici and Versalis switch feedstock logistics for Italy plant to rail

MOSCOW (MRC) -- Lower CO2 emissions, energy saving and greater safety - these are the key objectives of the new railway siding constructed on the Versalis plant site in Mantua and put into service a few weeks ago to transport KA oil to Radici Chimica SpA in Novara, according to Plastiker.

KA oil is one of the main chemical intermediates used in the production of adipic acid, which is then utilized in polyamide 6.6 production, the core business of Radici Chimica and the basis of subsequent RadiciGroup manufacturing processes for its plastics engineering and advanced textile solutions businesses. Versalis, Eni’s chemical subsidiary, produces KA oil in its Mantua plant from which RadiciGroup buys tens of thousands of tons per year.

Massimo De Petro, CPO for Strategic Materials and Logistics of RadiciGroup: “Before the railway siding was built, the intermediate went by truck from the Versalis site in Mantua to the nearby railway freight yard of Mantova Valdaro and then travelled by rail to Radici Chimica in Novara, where there has been a goods station on the premises for some time. On account of this new investment, we can now manage KA oil logistics solely by tank car, thus ensuring greater safety in the handling and transportation of the material.”

Construction work on the Versalis siding began in September 2019 and finished in March 2021. After the first trial loads, the siding became operational in mid-April. The goal is to reach maximum capacity by July and achieve full sustainability in the transport of a fundamental raw material for Radici Chimica’s operations.

As MRC reported earlier, there is more uncertainty over Versalis’ plans for its Porto Marghera, Italy cracker closure following local media reports that the company has taken the earlier declaration for a Spring 2022 stoppage, off the table, said the company in April, 2021.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.

Eni is an Italian multinational oil and gas company headquartered in Rome. It has operations in in 79 countries, and is currently Italy's largest industrial company. The Italian government owns a 30.3% golden share in the company, 3.93% held through the state Treasury and 26.37% held through the Cassa depositi e prestiti. Another 39.40% of the shares are held by BNP Paribas.
MRC

ACC CAB rises by 1,2% in May

MOSCOW (MRC) -- The Chemical Activity Barometer (CAB), a leading economic indicator created by the American Chemistry Council (ACC), increased 1.2% on a sequential three-month-moving-average (3MMA) basis in May, according to CISION with reference to ACC's statement.

This follows a 1.0% increase in April. The CAB was up 18.6% on a year-on-year (YOY) basis, as the year-ago period included the deep trough of the COVID-19 recession.

“The latest CAB reading is consistent with marked expansion of commerce, trade, and industry,” says Kevin Swift, chief economist at ACC.

In May, production-related indicators were positive. Despite some recent weakness in housing - a reflection of higher interest rates and prices as well as labor and supply-side constraints - trends in construction-related resins and related performance chemistry were solid. Aided by strength in automotive markets, resins and chemistry used in other durable goods were strong. Gains in plastic resins used in packaging and for consumer and institutional applications were positive. Performance chemistry for industry was largely positive. Exports were positive, while equity prices gained, reaching new records. Product and input prices were positive, as were inventory and other supply chain indicators.

As MRC informed before, Russia's output of chemical products rose in March 2021 by 5.4% year on year. Thus, production of basic chemicals increased year on year by 6.7% in the first moths months of 2021. March production of polymers in primary form was 958,000 tonnes versus 861,000 tonnes in February. Overall output of polymers in primary form totalled 2,740,000 tonnes over the stated period, up by 8.5% year on year.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.
MRC

Neste picks Technip for modification of its existing refinery and possible next world-scaler renewable products refinery in Rotterdam

MOSCOW (MRC) -- Technip Energies has been awarded two contracts by Neste for work on the development of their renewables production platform in Rotterdam, the Netherlands, as part of the existing Partnership Agreement between Neste and Technip Energies, accoriding to Hydrocarbonprocessing.

The first contract covers Engineering, Procurement services and Construction management (EPCM) for the modification of Neste's existing renewables production refinery in Rotterdam, the Netherlands, to enable production of Sustainable Aviation Fuel (SAF). The modifications to the refinery, an investment of approximately EUR190 million, will enable Neste to optionally produce up to 500,000 tons of SAF per annum as part of the existing capacity.

The second contract covers the Front-End Engineering and Design (FEED) for Neste's possible next world-scale renewable products refinery in Rotterdam. This contract is part of Neste’s preparations to enable a final investment decision by its Board of Directors, targeted for the end of 2021 or beginning of 2022.

The production process is based on Neste’s proprietary NEXBTL state-of-the-art technology, which allows the conversion of waste and residue feedstock into renewable products like renewable diesel, Sustainable Aviation Fuel and renewable solutions for the polymers and chemical industry.

As MRC reported earlier, Neste, Mitsui Chemicals, Inc. and Toyota Tsusho Corp. have announced they are joining forces to enable Japan’s first industrial-scale production of renewable plastics and chemicals from 100% bio-based hydrocarbons. In this collaboration, Mitsui Chemicals will use Neste RE, 100% bio-based hydrocarbons produced by Neste, to replace a part of the fossil feedstock in the production of a variety of plastics and chemicals at its crackers within Osaka Works during 2021.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.
MRC

Trinseo to sell synthetic rubber business to Synthos

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex binders and synthetic rubber, has announced today it has entered into a definitive agreement to sell its synthetic rubber business based in Schkopau, Germany to Synthos S.A. and its affiliates for an enterprise value of approximately USD491 million, comprised of USD449.4 million of cash and the assumption of approximately USD41.6 million of pension liabilities, as per the company's press release.

The expected net cash proceeds are approximately USD400 million after transaction-related costs and taxes.

The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in 2022.

The Business includes approximately 440 employees, mostly located in Schkopau, Germany, who are expected to join Synthos once the transaction closes. The transaction also includes the transfer of the associated Schkopau-based manufacturing and research and development facilities, as well as related intellectual property.

“In pursuing our transformation strategy toward becoming a higher margin and less cyclical specialty materials and sustainable solutions provider, we believe our best path is to focus on growth in Engineered Materials and CASE applications,” said Frank Bozich, Trinseo President and Chief Executive Officer. “Following the acquisition of Arkema’s PMMA business, the divestiture of Synthetic Rubber provides Trinseo with a stronger balance sheet and greater flexibility to pursue organic and acquisition growth opportunities.”

As MRC wrote before, recycled polystyrnee (PS) is just one of Trinseo’s sustainable materials aimed at circularity. The company also is involved with depolymerization with technology provided by partner, Recycling Technologies, and plans to build a dedicated plant at its Tessenderlo, Belgium location. This will be one of two PS recycling plants in Europe estimated to add a total of 30,000 tons of PS feedstock into the European marketplace. The plant is expected to start operating in 2023.

According to ICIS-MRC Price report, in Russia, Nizhnekamskneftekhim's PS prices remained unchanged in May. Prices of Nizhnekamskneftekhim's GPPS were in the range of Rb192,000-203,000/tonne, CPT Moscow, including VAT, whereas high impact polystyrene (HIPS) prices were at Rb196,000-207,000/tonne CPT Moscow, including VAT. At the same time, May prices of Penoplex's material fell by Rb15,000/tonne to Rb204,000-206,000/tonne CPT Moscow, including VAT.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD3.0 billion in net sales in 2020, with 17 manufacturing sites around the world, and approximately 2,600 employees.
MRC

COVID-19 - News digest as of 25.05.2021

1. U.S. refiners trying to maximize gasoline production amid rising prices

MOSCOW (MRC) -- U.S. gasoline prices are rising strongly, encouraging refineries to maximise gasoline production, even as they struggle with lacklustre demand for jet fuel due to international quarantine restrictions, said Hydrocarbonprocessing. Based on futures prices, gross margins for making gasoline from U.S. crude oil have surged to more than USD24 per barrel, up from just USD10 at the start of the year, and the highest level since 2015. Driving the rise in prices is a much faster recovery in demand for gasoline than for other oil products as economies reopen. Margins are now in the 84th percentile for all weeks since the start of 2006, giving refiners a strong incentive to maximise production, even as they hold back output of other fuels. Rising margins have pushed the average retail cost of gasoline above $3 per gallon, its highest level since 2014, according to nationwide pump prices compiled by the U.S. Energy Information Administration (EIA).


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