US Jan-Apr caustic soda exports drop by 2.4%

MOSCOW (MRC) -- US caustic soda exports in the first four months of 2021 declined nearly 2.4% compared with January-April 2020, reflecting continued fallout from production shutdowns forced by a deep freeze that hit the US Gulf Coast and much of the US in mid-February, reported S&P Global with reference to the latest US International Trade Commission (ITC) data.

The US shipped out 1.878 million mt of caustic soda in the January-April period, down from 1.92 million mt in the year-ago span, the data showed.

US chlor-alkali rates plunged to 59% in February, from 83% in January, when sustained subfreezing temperatures forced widespread petrochemical plant shutdowns, according to industry statistics. Caustic soda supply had been seen long before the freeze, but sudden shutdowns tightened supply.

After the freeze, caustic soda demand that had been sluggish since mid-2019 began rebounding as buyers sought to boost low inventories and growth in US COVID-19 vaccination rates spurred more economic activity.

Demand for printing paper, napkins, pint-sized milk cartons and other products made with caustic soda plunged in April 2020 when schools and offices closed, sending workers and students to work and learn from home.

US chlor-alkali rates fell to 68% in April 2020 from 90% in March that year, and remained in the low to mid 70% range from May through October. Rates surpassed 80% in November 2020 and stayed in the low 80% range until the freeze hit.

March chlor-alkali rates rose to 71% from February's 59%, and again to 80% in April, industry statistics show.

While US caustic soda exports fell slightly year on year, imports rose 8.2% to 331,297 mt from 306,027 mt in January-April 2020, the ITC data showed.

As MRC wrote before, in May 2021, American Westlake Chemical said it will soon sell "green" caustic soda, which emits 30% less carbon dioxide during its production. Westlake President and Chief Executive Officer Albert Chao said the company wants to obtain an environmental compliance certificate for the production of caustic soda using this technology in Europe. Green caustic soda has the same properties as regular sodium hydroxide. The difference lies in the use of renewable energy sources in the production process.

We remind that Russia's March production of sodium hydroxide (caustic soda) was 118,000 tonnes (100% of the main substance) versus 98,400 tonnes a month earlier. In the first quarter of 2021, overall output of caustic soda in Russia totalled 329,400 tonnes, down by 0.7% year on year.

The main caustic soda producers in the United States are Olin, Occidental Chemical, Westlake Chemical, Shintech, and Formosa Plastics.
MRC

MOSCOW (MRC) -- Tatneft and the Hungarian MOL Group have launched a project to build a plant for the production of rubber modified bitumen (RMB) at the TANECO complex, said the company.

The ceremony of starting the construction of a plant for the production of rubber-modified bitumen (RMB) with a capacity of 25,000 tonnes per season was held on June 6 in Nizhnekamsk.

The construction of the section is carried out using the technology of the Hungarian MOL Group at the Taneco oil complex and it is expected that it will also provide recycling of up to 500 thousand tires per year. The launch of the enterprise is scheduled for mid-2023. The total investment will amount to Rb1.2 bn.

The rubber-modified bitumen produced by the technology of the Hungarian company MOL is a product of innovative technology and combines the advantages of existing methods for the production of rubber bitumen. The project belongs to "green technologies" and reduces the negative impact on the environment.

It is assumed that the joint investment project of JSC TANECO and MOL Group will be a good contribution to the expansion of Russian-Hungarian cooperation at the regional level.

As it was said earlier, Tatneft will step up production in Kaliningrad. The company confirmed plans for the development of the Kaliningrad Ekopet plant. The acquisition of Ekopet will enable Tatneft to implement the plans for the development of the petrochemical business, taking into account the Company's goals of reducing greenhouse gas emissions along the entire value chain.

As per MRC ScanPlast, total estimated PET consumption increased by 15% in May compared to the same indicator a year earlier and amounted to 85,850 tonnes. Total estimated consumption amounted to 349,940 tonnes of PET in January-May 2021 in Russia, up 22% year on year.

Tatneft is one of the largest Russian oil companies today and is an internationally recognized vertically integrated holding. The industrial complex of the Company includes steadily developing enterprises of crude oil and gas production, petroleum refining, petrochemicals production, the tire-manufacturing complex, network of filling stations and services.
MRC

MOSCOW (MRC) -- Azelis, an innovation service provider in the specialty chemicals and food ingredients distribution industry, has made two acquisitions this month to date, both in South Korea, according to CHEManager.

The most recent agreement, announced on Jul. 14, is the proposed takeover of Seoul-headquartered Coseal, which specializes in the distribution, repackaging and blending of agricultural/horticultural surfactants.

This transaction is expected to close in the third quarter of 2021, when all of Coseal’s 45 employees, along with its owner and CEO Sang Jin Kang, will transfer to the Belgium-based distributor.

Nearly two weeks earlier, on Jul. 1, Azelis revealed it had purchased MH, a local distributor in the food ingredients market, providing the multinational specialty chemicals distribution group with a foothold in the food and health segment. Also headquartered in Seoul, MH is a family-owned business, supplying products such as gluten, starches, sweeteners and functional food ingredients.

Separately, Azelis completed the purchase of Vigon International on Jun. 2. Vigon is a leading US specialty distributor and manufacturer of ingredients for the flavors and fragrances market segments. The acquisition was first announced on May 5.

As MRC reported earlier, in June 2021, Azelis announced the extension of its distribution scope with CP Kelco in India, Indonesia, Malaysia and Thailand. CP Kelco’s product range is a significant addition to Azelis’ portfolio and the new agreement marks an important milestone in the strong and continuously developing collaboration between both companies globally.

We remind that 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 three months of 2021. Production of polymers in primary form was 958,000 tonnes versus 861,000 tonnes in March. Overall output of polymers in primary form totalled 2,740,000 tonnes in the first quarter of 2021, up by 8.5% year on year.

Azelis is a leading distributor of speciality chemicals and food ingredients present in over 50 countries across the globe with around 2,200 employees. Our knowledgeable teams of industry, market and technical experts are each dedicated to a specific market within Life Sciences and Industrial Chemicals.

MOSCOW (MRC) -- India's crude oil imports in June fell to their lowest in nine months, as refiners curtailed purchases amid higher fuel inventories due to low consumption and renewed coronavirus lockdowns in the previous two months, reported Reuters.

India, the world's third-biggest oil importer and consumer, shipped in about 3.9 million barrels per day (bpd) of crude last month, about 7% down from May, but 22% higher from year-ago levels, tanker arrival data obtained from trade sources showed.

India is the second major importer in Asia, after China, to post a slump in last month's crude imports.

After an uptick in India's fuel demand in February and March, the country's refiners cranked up crude processing and oil imports, said an Indian refining official who declined to be named as he is not authorised to speak to media. However, fuel demand fell sharply in April and May after the government imposed restrictions to curb a second wave of coronavirus, leaving refiners with high fuel inventories.

India's crude imports between April and June, however, rose 11.7% year-on-year to 4.1 million bpd as the lockdown curbs were not as severe as last year when COVID-19 first hit the nation, according to the data.

Last month, Iraq stayed as the top oil supplier to India, followed by Saudi Arabia. The United Arab Emirates climbed four notches to emerge as third-biggest supplier while Nigeria rose to No.4 from No.5 in May. The United States was at No.5, followed by Canada. The share of oil from the Middle East in India's imports rose to about 59% in June from 53% in the prior month, while that of other regions declined, data showed.

As MRC informed earlier, China's crude oil imports fell 3% from January to June versus a year earlier, in the first first-half contraction since 2013, as an import quota shortage, refinery maintenance and rising global prices curbed buying. Imports totalled 40.14 million tonnes last month, data released by the General Administration of Customs showed last Tuesday, equivalent to 9.77 million barrels per day (bpd).

We remind that 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 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.
MRC

MOSCOW (MRC) -- Nizhnekamskneftekhim plans to increase the production of polypropylene and polystyrene by 2.5 times in 2024, said the company.

Thus, the total volume of plastics production will reach more than 1.4 million tons, "the statement says. According to Anas Zakirov, head of the department for promoting system solutions at NKNKH, in order to increase the competitiveness and profitability of production, the enterprise has begun work on assessing its own capabilities for the production of small and medium-sized chemicals.

The largest petrochemical holdings in Russia - SIBUR and TAIF - in April announced plans to combine their assets. Within the framework of the merger, a company will be created on the basis of SIBUR Holding, in which the current shareholders of TAIF PSC will receive a 15% stake in exchange for the transfer of a controlling stake in a group consisting of petrochemical and energy enterprises. The remaining stake in TAIF can be subsequently purchased by the merged company. The merged company of SIBUR and TAIF will include the parent company of the Tatarstan group, as well as two of its chemical plants and an energy company, including NKH and KOS.

As per ICIS-MRC Price Report, Some market participants said demand and supply of Nizhnekamskneftekhim's material were generally balanced. There was no sharp surge in demand this month, despite a major price reduction. Prices of Nizhnekamskneftekhim's GPPS were in the range of roubles (Rb) 152,000-163,000/tonne, whereas HIPS prices were at Rb156,000-167,000/tonne CPT Moscow, including VAT. A major trader offered GPPS for sale at Rb155,000/tonne CPT Moscow, including VAT.

Nizhnekamskneftekhim is one of the largest petrochemical companies in Eastern Europe, occupying a leading position among domestic producers of synthetic rubbers, plastics and ethylene. The nomenclature of manufactured products includes more than 120 items. The products of the joint-stock company are exported to 50 countries in Europe, America and Southeast Asia. The share of exports in the total volume of production is about 50%.
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