Huntsman appoints Phil Lister as CFO as of 1 July

Huntsman appoints Phil Lister as CFO as of 1 July

MOSCOW (MRC) -- Huntsman has appointed Phil Lister as executive vice president and Chief Financial Officer (CFO), effective 1 July, as per the company's press release.

He will replace longtime company veteran Sean Douglas, who resigned to accept a full-time calling to The Church of Jesus Christ of Latter-day Saints.

Lister began his career at Imperial Chemical, which Huntsman acquired in 1999. In his most recent role at Huntsman, Lister managed the company’s acquisition and dispositions. The company said that the transactions he oversaw have led to the execution of Huntsman key strategic initiatives.

These transactions, valued at more than USD3.5 billion, have resulted in a significant transformation of the company's portfolio.

"As the head of M&A, Phil has been instrumental in executing the company's portfolio management strategy. He has completed seven transactions in the past three years, that have allowed us to focus further downstream and on our specialty businesses, reduce our debt, strengthen our balance sheet, and improve our trading multiple,” said CEO Peter Huntsman.

As MRC reported before, in early April, 2021, Huntsman Corporation announced that Sean Douglas, 56, had notified the company he intends to resign as Executive Vice President and CFO. The effective date of Mr. Douglas' resignation will be July 1, 2021.

We remind that in late December, 2020, SK Capital Partners completed the acquisition of a 39.75% stake, roughly 42.4 million shares, in titanium dioxide maker Venator from Huntsman for roughly USD100 million. The deal includes a 30-month option for the purchase of Huntsman’s remaining approximate 9.5 million shares by SK at US2.15/share. Huntsman spun off Venator in a 2017 initial public offering.

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately USD7 billion. The company's chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. The company operates more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions.
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Grand Resource cuts capacity utilisation at two PP units in China on the electricity supply issue

Grand Resource cuts capacity utilisation at two PP units in China on the electricity supply issue

MOSCOW (MRC) -- Dongguan Grand Resource Science and Technology Co Ltd (JuZhengYuan) has cut operating rates at its two polypropylene (PP) units in Guangzhou due to the worsening electricity supply shortage in this region, according to CommoPlast with reference to market sources.

Thus, two PP lines with a combined capacity of 600,000 mt/year (300,000 mt/year each) have been running at 70% capacity since 2 June, 2021. And they will remain underutilised until further notice.

In the meantime, the upstream propane dehydrogenation (PDH) unit is not affected by the issue and would maintain a full operating rate, from which sources said that the company might be selling the excess propylene until the downstream PP production return to normal.

As MRC wrote before, Dongguan Grand Resource Science and Technology restarted its No.2 PP plant on January 16, 2020, following a turnaround. The plant was shut for maintenance on January 6, 2019.

According to MRC's ScanPlast report, 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.

Dongguan Grand Resource Science and Technology Co Ltd is owned by Juzhengyuan Energy (Shenzhen, Guangdong, China). On 26 October 2019, Dongguan Grand Resource’s (Dongguan, Guangdong, China) integrated complex for polypropylene production in Dongguan officially started up.
MRC

COVID-19 - News digest as of 04.06.2021

1. Indonesia biodiesel consumption down 8.2% in Jan-Apr 2021

MOSCOW (MRC) -- Indonesia's consumption of biodiesel fell by 8.2% year on year in the first four months of 2021, data from the country's producers' association showed, as transportation demand remained muted due to the coronavirus pandemic, reported Reuters. Domestic consumption of biodiesel was 2.669 million kilolitres in the January to April period, down from 2.907 million kilolitres last year, according to the Indonesian biodiesel producers' association (Aprobi). "Transportation movement has still not recovered to 2019 levels," Paulus Tjakrawan, vice chairman of Aprobi told Reuters.

MRC

Crude oil futures drop in Asia on mixed EIA data, stronger dollar

Crude oil futures drop in Asia on mixed EIA data, stronger dollar

MOSCOW (MRC) -- Crude oil futures were lower during mid-morning trade in Asia June 4 as the market used mixed data from the Energy Information Administration as an excuse to lock in profits following the recent surge in oil prices, while a stronger dollar provided further headwinds for the market, reported S&P Global.

At 11:06 am Singapore time (0306 GMT), the ICE Brent August contract was down 26 cents/b (0.36%) from the previous settle at USD71.05/b, while the July NYMEX light sweet crude contract was down 19 cents/b (0.28%) at USD68.62/b.

Data from the EIA released late June 3 was mixed, as it showed a draw in US commercial crude inventories, but builds in US product inventories.

Rising refinery demand coupled with lower production saw crude stocks fall 5.08 million barrels to 479.27 million barrels in the week ended May 28, the data showed. Crude stocks are at its lowest since the week ended Feb. 19, nearly 3% behind the five-year average.

US gasoline and distillate inventories, meanwhile, climbed 1.5 million barrels and 3.72 million barrels to 233.98 million barrels and 132.8 million barrels, respectively.

"After an impressive rally that saw oil prices settle near multi-year highs on June 3, market participants took the builds in the downstream product inventories as a reason to pause and lock-in their profits," Vandana Hari, CEO of Vanda Insights, told S&P Global Platts June 4.

Hari, however, added that the builds in gasoline and distillate inventories belied strong demand for these products in the US. Other analysts have echoed a similar view, and are in particular optimistic over the prospect of a surge in gasoline demand, as Americans are expected to unleash pent-up demand for travel on the roads during the country's ongoing summer driving season.

Adding downward pressure on the oil markets was the appreciation in the US dollar, which came as the US Federal Reserve announced plans to wind down the corporate bond portfolio it bought during the pandemic, lending credence to the notion that it is considering further policy unwinds.

We remind that, as MRC wrote earlier, Indian refiners, anticipating a lifting of US sanctions, plan to make space for the resumption of Iranian imports by reducing spot crude oil purchases in the second half of the year. The world"s third-largest oil consumer and importer halted imports from Tehran in 2019 after former US President Donald Trump withdrew from a 2015 accord and re-imposed sanctions on the OPEC producer over its disputed nuclear programme.

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 reduces June PS and SAN prices in Europe

Trinseo reduces June PS and SAN prices in Europe

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex binders, and synthetic rubber, and its affiliate companies in Europe, have announced a price decrease for all polystyrene (PS) and acrylonitrile-styrene copolymer (SAN) in Europe, according to the company's press release as of June 2.

Effective June 1, 2021, or as existing contract terms allow, the contract and spot prices for the products listed below went down as follows:

- STYRON general purpose polystyrene grades (GPPS) -- by EUR290 per metric ton;
- STYRON and STYRON A-Tech and STYRON X- Tech and STYRON C- Tech high impact polystyrene grades (HIPS) - by EUR290 per metric ton;
- TYRIL SAN resins - by EUR170 per metric ton.

As MRC informed before, Trinseo raised its prices for all PS, acrylonitrile-butadiene-styrene (ABS) and SAN grades on May 1, 2021, as stated below:

- STYRON GPPS -- by EUR105 per metric ton;
- STYRON and STYRON A-Tech and STYRON X- Tech and STYRON C- Tech HIPS - by EUR105 per metric ton;
- MAGNUM ABS resins - by EUR160 per metric ton
- TYRIL SAN resins - by EUR170 per metric ton.

According to ICIS-MRC Price report, Russian plants reduced their PS prices this month under the pressure from foreign markets and lower feedstock prices. Nizhnekamskneftekhim reduced its June prices of polymer by a larger amount than other plants.

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