Senege launched a new PET production technology

MOSCOW (MRC) -- The plant of new polymers Senege (part of the OP "Europlast") has launched the FTR (Flakes-to-Resine) technology, which has no analogues in Russia, which allows adding up to 35% of secondary raw materials to the primary to create food granules, said Europlast.

It is noted that upon reaching the design capacity, the plant will produce 130,000 tonnes of granules per year, involving about 35,000 tonnes of recycled PET bottles in the production cycle.

"After the launch of FTR, Senege became the second (after the Plarusa plastics processing plant, part of the Europlast holding) Russian plant producing food granules from recovered raw materials," the statement says.

General Director of the plant Maxim Tyurin noted that thanks to the FTR recycling technology, the company will significantly increase the production of granules containing recovered raw materials. “FTR will help meet the growing market demand for packaging using recycled materials. Packaging manufacturers will have an additional opportunity to meet environmental trends," he said.

As per ICIS-MRC Price Report, Senege will not have free spot volumes of material in the first half of next month, according to a representative of the producer. The contract prices of Russian plants for most buyers this month were in the range of Rb103,000-117,000/tonne CPT Moscow, including VAT.

Earlier it was said, this month, market participants still reported a shortage of polyethylene terephthalate (PET) volumes in Russia. Buyers purchased small volumes in the spot market. Producers had low level of stocks inventories as well. Large preform producers partially cover their raw material needs through imports of Chinese imports.

MRC

MOSCOW (MRC) - Deputies of the Verkhovna Rada of Ukraine adopted by 297 votes in the second reading the bill No. 2051-1 on restricting the use of plastic bags on the territory of Ukraine, according to a document published on the parliamentary portal.

Under the new rules, retail chains, food service establishments and service companies are banned from distributing ultra-thin plastic bags, thin plastic bags and oxo-folding plastic bags. For violation of this provision, a fine of UAH 1,700-3,400 is provided. For a repeated violation - UAH 3,400-8,500.

The bill provides that non-compliant packages that remain by January 1, 2023 must be disposed of at the expense of the economic entity that purchased them. "The law is aimed at reducing the use of plastic bags in Ukraine, limiting their distribution in order to improve the state of the environment and landscaping," the explanatory note says.

The law comes into force the next day after publication, and comes into effect six months after the date of entry into force.

Earlier it was reported that in November 2020, the Verkhovna Rada of Ukraine adopted in the first reading bill No. 2051-1, which is proposed to introduce a ban on the distribution of plastic bags in retail with a thickness of up to 50 microns from January 1, 2022.

Also, in March 2019, a ban on disposable plastic products was approved by the European Parliament. The EU expects to get rid of this type of plastic within two years.

According to MRC's DataScope, last month external supplies of PE to Ukraine amounted to 19,500 tonnes against 28,700 tonnes in March, local companies reduced the volume of purchases of all types of polyethylene except for ethylene copolymers due to record high prices for foreign markets. Thus, in January - April 2021, the total volume of external supplies of PE reached 83,500 tonnes against 90,900 tonnes a year earlier. External supplies of HDPE mainly decreased, while imports of other types of polyethylene increased.
MRC

MOSCOW (MRC) -- Synthos (Oswiecim, Poland) and Lummus Technology's Green Circle business have started collaborating to commercialize Synthos' biobutadiene technology. The first step of the commercialization program includes the development of a feasibility study for a biobutadiene plant with a production capacity of 20,000 tons per year, which will form the basis for an investment decision, according to Hydrocarbonprocessing.

"Sustainability is a key for Synthos' products portfolio development. We are keen to support our customers' needs with advanced Synthetic Rubber based on bio-derived butadiene," said Matteo Marchisio, Synthetic Rubbers and Tire Materials BU Director. "We believe that cooperation with Lummus Technology will effectively support our goals referring to renewable and bio-based butadiene. We want it to become the monomer for production of bio-rubber. This important development for Synthos will strengthen our sustainability offering and will provide our customers with a product that has a significantly reduced environmental footprint."

This cooperation will focus on the development and commercialization of a novel technology to process renewable bio-based feedstocks to produce value-added, more sustainable synthetic rubbers. Green Circle, a business entity owned by Lummus Technology, concentrates on economically and technically sound solutions for the comprehensive processing of solid wastes containing plastics; for processing various renewable bio-based feedstocks to value-added chemicals, polymers and fuels; and for the decarbonization of refinery and petrochemicals assets.

Synthos, as a leading supplier of rubbers for the production of tires, is now focusing on producing synthetic rubber from renewable raw materials, which can be achieved through production of biobutadiene from bioethanol. The technology that Lummus and Synthos will commercialize through this agreement to produce biobutadiene is very promising and expected to be the new standard for production of synthetic rubbers.

As MRC reported earlier, Synthos restarted its 185,000-metric tons/year emulsion styrene butadiene rubber (E-SBR) facility in Oswiecim in the second week of January, 2021, following a fire on 7 January.

Synthos produces 120,000 metric tons/year of styrene monomer (SM) and 105,000 metric tons/year of expandable polystyrene (EPS) at Oswiecim and it makes 50,000 metric tons/year of polystyrene (PS) at the site, according to IHS Markit data. The company also produces synthetic adhesives and latex. E-SBR is used in the production of various downstream items including car tires, conveyor belts, and footwear.

SM is the main feedstock for the production of PS.

According to MRC's ScanPlast report, Russia's overall estimated consumption of PS and styrene plastics rose in March 2021 by 24% year on year to 51,000 tonnes. The estimated consumption totalled 138,740 tonnes in the first three months of 2021, up by 15% year on year.

Synthos SA is one of the largest producers of petrochemical products in Poland and is the largest producer of emulsion rubbers in Europe. Besides, it is the third largest European EPS producer.
MRC

MOSCOW (MRC) -- BASF, the world's petrochemical major, has increased prices in North America for 1,4-Butanediol (BDO) and derivatives, as per the company's press release.

Thus, prices for the products mentioned above grew effective May 15, 2021 or as existing contracts permit, as follows: 1,4- Butanediol (BDO) - by USD0.15/lb; Gamma-Butyrolactone (GBL) - by USD0.15/lb; N-Methylpyrrolidone (NMP) - by USD0.15/lb; Tetrahydrofuran (THF) - USD0.25/lb; Polytetramethylene ether glycol (PolyTHF) - by USD0.25/lb.

BDO and its derivatives are used for producing engineering plastics, polyurethanes, pharmaceuticals, solvents and elastic spandex fibers.

As MRC reported earlier, Saudi chemical manufacturing company SABIC has signed a joint agreement with BASF and Linde to develop and demonstrate solutions for electrically heated steam cracker furnaces. The partners have already jointly worked on concepts to use renewable electricity instead of the fossil fuel gas typically used for the heating process. With this innovative approach focusing on one of the petrochemical industries’ core processes, the parties strive to offer a promising solution to significantly contribute to the reduction of CO2 emissions within the chemical industry.

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

According to MR''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.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
MRC

MOSCOW (MRC) -- State-backed Sinopec Corp. has started a 5.17 billion yuan (USD811 million) refinery upgrade at a subsidiary plant in eastern China that aims to produce cleaner fuels and boost output of higher-value chemicals, reported Reuters.

The investment in Yangtze Petrochemical Corp, in Nanjing city in the province of Jiangsu, covers eight key facilities, such as a 2.6-million-tonne-per-year residue hydrocracker and a 2.8 MMtpy catalytic cracker.

“While maintaining the same crude processing capacity and without increasing emissions of pollutants, the upgrade will raise output of premium quality refined fuel,” the state refiner said on social media.

Construction is set to be completed in 2023.

As MRC informed previously, Sinopec is ready to launch its first green hydrogen project in Inner Mongolia next year as part of an effort to help meet its goal of becoming China’s top hydrogen company by 2025.

We remind that Sinopec Engineering (Group) and ExxonMobil (Huizhou) Chemical (EMHCC) have recently entered into a BEPC (basic design, engineering, procurement and construction) contract for the proposed Huizhou Chemical Complex Project (Phase I). The main units of the project include a 1.6 million tonnes/year ethylene flexible feed steam cracker, downstream polymer and derivative units and utilities. The main product units include two performance polyethylene (PE) lines and two differentiated performance polypropylene (PP) lines.

Ethylene and propylene are the main feedstocks for the production of PE and PP, respectively.

According to MR''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.

China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group established in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec Group"s key business activities include the exploration and production of oil and natural gas, petrochemicals and other chemical products, oil refining.
MRC