OxyChem force majeure on PVC supply remains in force in early June

MOSCOW (MRC) -- OxyChem, the chemical division of Occidental Petroleum, left force majeure (FM) on polyvinyl chloride (PVC) supplies from its plants in North America in force as of 2 June, 2021, reported S&P Global with reference to the company's letter.

OxyChem, a major manufacturer of chlor-alkali and vinyl products, including chlorine, caustic soda, hydrochloric acid, ethylene dichloride (EDC), vinyl chloride monomer (VCM), and PVC at plants in Texas, Louisiana and Alabama, Tennessee, New Jersey and New York.

The total capacity of OxyChem's plants and subsidiaries for the production of chlorine and caustic soda is about 3 million mt/year, and its PVC production is almost 2 million mt/year.

The FM was declared on 15 February, 2021, due to the deep freeze that hit the region. The severe weather conditions affected then all Texas and western Louisiana facilities.

As MRC informed before, OxyChem had a seven-day PVC turnaround slated for April, 2020, at its plant in Pasadena, Texas, USA. This plant's production capacity is 1 million mt/year.

According to MRC's ScanPlast report, Russia's overall PVC production reached 346,100 tonnes in the first four months of 2021, down 1% year on year. All producers decreased production volumes over the reported period, with the exception of the Bashkir Soda Company.

Occidental Petroleum Corporation (OxyChem) is a California-based oil and gas exploration and production company with operations in the United States, the Middle East, North Africa, and South America. Oxychem is Oxy's Texas-based subsidiary which manufacture polyvinyl chloride (PVC) resins, chlorine and caustic soda used in plastics, pharmaceuticals and water treatment chemicals.
MRC

MOSCOW (MRC) -- Formosa Plastics USA, part of Formosa Petrochemical, left force majeure (FM) on polyvinyl chloride (PVC) supplies from its plants in North America in force as of 2 June, 2021, reported S&P Global with reference to the company's letter.

The FM was declared on 15 February, 2021, due to the deep freeze that hit the region. The severe weather conditions affected then all Texas and western Louisiana facilities.

As MRC informed before, in March, 2020, Formosa Plastics was emerging from a turnaround at its 798,000 mt/year PVC plant and upstream 753,000 mt/year vinyl chloride monomer unit at its Point Comfort, Texas, complex.

According to MRC's ScanPlast report, Russia's overall PVC production reached 346,100 tonnes in the first four months of 2021, down 1% year on year. All producers decreased production volumes over the reported period, with the exception of the Bashkir Soda Company.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company"s plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
MRC

1. Crude oil futures drop in Asia amid softening demand cues from independent Chinese refineries

MOSCOW (MRC) -- Crude oil futures dipped during mid-morning Asian trade June 8, amid softening demand cues from independent Chinese refineries, even as strong demand indicators from the West and slow progress in US-Iran nuclear talks, which could lift sanctions on Iranian crude, continue to support sentiment, reported S&P Global. At 11.05am Singapore time (0305 GMT), the ICE Brent August contract was down 66 cents/b (0.92%) from the previous settle at USD70.83/b, while the July NYMEX light sweet crude contract was down 63 cents/b (0.91%) at USD68.60/b. Ongoing investigations into China's independent refining sector regarding the illegal trade of government issued crude oil import quotas, as well as destocking activity amid strong crude prices, have resulting in easing demand.


MRC

MOSCOW (MRC) -- Westlake Chemical, a US petrochemical major, has declared force majeure (FM) on chlorine production at its 300,000 mt/year chlor-alkali plant in Natrium, West Virginia, according to a customer letter seen 2 June by S&P Global.

The letter, dated June 1, said its chlor-alkali production at the plant had been "directly and adversely impacted due to the sudden and unanticipated failure of a critical piece of processing equipment," resulting in limited chlorine availability to customers.

The letter also said Westlake could not predict how long the FM would remain in effect. The company did not respond to a request for comment.

Westlake also declared force majeure May 18 on membrane-grade caustic soda after a third-party brine pipeline burst that serves the company's Geismar, Louisiana, complex. The pipeline was repaired May 24.

Caustic soda, a key feedstock for alumina and pulp and paper industries, is a byproduct of chlorine production.

As MRC informed before, Westlake Chemical lifted its FM on US polyvinyl chloride (PVC) and upstream vinyl chloride monomer (VCM) on May 17, 2021. The letter said the company was "formally lifting the systemwide force majeure condition for PVC and VCM manufactured and shipped from its North American operations that was originally declared on Feb. 19" as a result of mid-February's deep freeze that "resulted in a shutdown/curtailment of our plant operations."

According to MRC's ScanPlast report, Russia's overall PVC production reached 346,100 tonnes in the first four months of 2021, down 1% year on year. All producers decreased production volumes over the reported period, with the exception of the Bashkir Soda Company.

Westlake Chemical Corporation is an international manufacturer and supplier of petrochemicals, polymers and building products with headquarters in Houston, Texas. The company's range of products includes: ethylene, polyethylene, styrene, propylene, chlor-alkali and derivative products, PVC suspension and specialty resins, PVC Compounds, and PVC building products including siding, pipe, fittings and specialty components, windows, fence, deck and film.
MRC

MOSCOW (MRC) -- Overall production of unmixed polyvinyl chloride (PVC) totalled 432,100 tonnes in the first five months of 2021, which virtually corresponds to the last year's figure. At the same time, two producers reduced their output, according to MRC's ScanPlast report.

May production of unmixed PVC in Russia was 86,100 tonnes versus 86,600 tonnes a month earlier, RusVinyl decreased its capacity utilisation. Overall output of polymer totalled 432,100 tonnes in May 2021, which corresponds the last year's figure. Two producers reduced their output, whereas Bashkir Soda Company and Kaustik, Volgograd managed to increase their production of resin.

The structure of PVC production by plants looked the following way over the stated period.

RusVinyl produced 28,100 tonnes of PVC in May, with emulsion polyvinyl chloride (EPVC) accounting for 2,600 tonnes, compared to 29,100 tonnes a month earlier. RusVinyl's overall output of resin reached 145,400 tonnes in the first five months of 2021, compared to 149,100 tonnes a year earlier.

SayanskKhimPlast maintained high capacity utilisation last month and produced 26,500 tonnes of suspension polyvinyl chloride (SPVC), which corresponds to the April figure. The Sayansk plant managed to produce 133,500 tonnes of PVC in January-May 2021, compared to 137,300 tonnes a year earlier.

Bashkir Soda Company produced 23,800 tonnes in May, maintaining the previous month's level. The Baskhir plant's overall production of resin reached 117,300 tonnes in January-May 2021, up by 2% year on year.

Kaustik, Volgograd produced 7,700 tonnes of SPVC last month, whereas this figure was 7,200 tonnes a year earlier. The plant's overall production of resin reached 36,000 tonnes in January-May 2021 versus 30,600 tonnes a year earlier.

MRC