Denka to expand its styrenics plant production capacity due to Sulzer Chemtech key polymerization technologies

Denka to expand its styrenics plant production capacity due to Sulzer Chemtech key polymerization technologies

MOSCOW (MRC) -- Sulzer Chemtech Ltd. (Winterthur, Switzerland) has completed the delivery of key polymerization technologies to Denka’s styrenics resin plant in Singapore, according to Chemical Engineering.

This will allow the chemical manufacturer to quickly expand its production capacity. The company is now in a stronger position to promptly address the ever-increasing global market demands for polymers.

Denka’s latest production line features Sulzer Chemtech’s advanced processing equipment to maximize the conversion of melt into high-quality, homogeneous plastic with high throughput, while minimizing any thermal degradation.

Sulzer Chemtech completed the project one month ahead of the agreed delivery date thanks to its global network of engineering specialists that can be mobilized to support urgent process equipment needs. Even more, it was able to do that despite key challenges posed by the pandemic and while ensuring the safety and wellbeing of all teams involved.

As a result, Denka will be able to ramp up production at its facility, ultimately increasing its revenue. Furthermore, the company will be able to achieve these goals without growing its manufacturing footprint or investing considerable capital in the polymerization process.

As MRC reported earlier, in late 2020, Denka Singapore Co Ltd announced that it would discontinue the production of DENKA STYROL GPPS after 22 years in business. The production of the seven rades had been suspended by the end of November 2020. The final sales of these cargoes took place by the end of December 2020. Denka cited the cease of general purpose polystyrene (GPPS) production in order to optimize the overall operation of the plastic business.
Denka Singapore Co Ltd is one of the major polystyrene (PS) producers in the Southeast Asia region with an annual capacity of 200,000 tons of GPPS.

According to MRC's ScanPlast report, Russia's estimated consumption of polystyrene (PS) and styrene plastics totalled 187,320 tonnes in the first four months of 2021, up by 20% year on year. April estimated consumption of PS and styrene plastics in the country was 49,370 tonnes, up by 35% year on year (36,620 tonnes a year earlier).
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COVID-19 - News digest as of 01.07.2021

1. OPEC forecasts point to oil supply deficit from August to 2022 as economies recover from the pandemic

MOSCOW (MRC) -- OPEC's forecasts point to an oil supply deficit in August and in the rest of 2021 as economies recover from the pandemic, suggesting the group and its allies have room to raise output at a meeting this week, reported Reuters. The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, is returning 2.1 million barrels per day (bpd), about 2% of world output, to the market from May through July as part of a plan to ease last year's record output curbs. OPEC+ meets on Thursday to discuss supply for later months. With oil at its highest since 2018, sources say a further boost in August will be discussed, but some producers are wary about new demand setbacks and higher Iranian supply.

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Crude oil futures up in Asia on higher US stocks amid caution ahead of OPEC+ meeting

Crude oil futures up in Asia on higher US stocks amid caution ahead of OPEC+ meeting

MOSCOW (MRC) -- Crude oil futures were higher during mid-morning trade in Asia July 1 after the Energy Information Administration reported a large draw in US crude inventories, but the upside was capped by lackluster US products data and caution ahead of the OPEC+ meeting scheduled for later in the day, reporte S&P Global.

At 10:21 am Singapore time (0221 GMT), the ICE September Brent futures contract was up 30 cents/b (0.40%) from the previous settle at USD74.92/b, while the NYMEX August light sweet crude contract was 28 cents/b (0.38%) higher at USD73.75/b.

EIA data released late June 30 showed a headline US crude draw of 6.72 million barrels to 452.34 million barrels in the week ended June 25, almost 7% below the five-year average for this time of year and marking the sixth consecutive week of decline amid rising US refinery demand. Total US net crude inputs rose 190,000 b/d to average 16.3 million b/d in the week, while refinery utilization climbed 0.7 percentage points to 92.9% of total capacity, the highest since the week ended Jan. 3, 2020.

However the boost to global prices was limited, as the market had been expecting the large fall in crude inventories after the American Petroleum Institute a day earlier reported a 8.15 million-barrel draw for the same week, and the products data was lackluster. US gasoline inventories rose 1.52 million barrels to 241.57 million barrels in the week, while total product supplied for gasoline, the EIA's proxy for demand, slipped around 3% to a three-week low of 9.17 million b/d.

Distillate inventories slipped 870,000 barrels to 137.10 million barrels, even as implied demand rose 5.6% to 4.17 million b/d.

The relative stability in the market comes as investors await the OPEC+ meeting scheduled for later in the day, which was expected to provide guidance on the producer group's production quotas for August.

Analysts have said that given the demand-side risk posed by the resurgent spread of the Delta coronavirus variant, and with additional Iranian barrels potentially entering the market following a possible deal on the Joint Comprehensive Plan of Action, the coalition is likely to agree on a tempered increase of 500,000 b/d of oil production in August.

"Saudi Arabia remains cautious on demand and Iran nuclear talks, while Russia is more focused on regaining market share as demand rebounds," Platts Analytics said in a recent note. "However, with Brent already in the mid-USD70s, both will likely be committed to not overheating the market."

We remind that as MRC informed 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 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.
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Indian Oil purchases its first Guyanese oil

Indian Oil purchases its first Guyanese oil

MOSCOW (MRC) -- Indian Oil Corp, the country's top refiner, has made its first purchase of Guyana's Liza light sweet crude as it seeks to diversify its crude purchases, reported Reuters with reference to a source familiar with matter.

The 1 million-barrel cargo will set sail around July 4 on Greece-flagged tanker Militos for India's Paradip port, where it is set to arrive around August 8, according to Refinitiv data.

This would be a 'trial cargo', the source said, without giving details of pricing. The source said that India is in talks with Guyana's government for a term oil supply contract for state refiners.

IOC is the first Indian state refiner to buy Liza oil. Private refiner HPCL-Mittal Energy Ltd, a joint venture between state-run Hindustan Petroleum Corp (HPCL.NS) and steel tycoon L.N. Mittal, bought a million barrels of Liza grade in March.

IOC declined to immediately comment.

India, the world's third biggest oil importer and consumer, ships in more than 80% of its oil needs from overseas and relies heavily on the Middle East.

Earlier this year India asked state refiners to expedite the diversification of crude sources after the Organization of Petroleum Exporting Countries and its allies, also known as OPEC+ failed to ease supply curbs, leading to a spike in global oil prices. The state refiners - IOC, HPCL, Bharat Petroleum and Mangalore Refinery and Petrochemicals Ltd - together control about three-fifths of India's 5 million barrel per day refining capacity.

As MRC informed 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 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.
mrcpalst.com

PVC imports into Russia increased by 48% in January-May, exports down by 10%

MOSCOW (MRC) - Imports of suspension polyvinyl chloride (SPVC) in Russia reached about 14,600 tonnes in the first five months of the year, up 48% year on year. At the same time, exports decreased by 10%, according to MRC's DataScope report.

May SPVC imports to Russia increased to 4,900 tonnes from 2,100 tonnes in April. The lack of PVC from Russian producers and the upcoming shutdown for repairs led to another increase in imports. Overall imports totalled 14,600 tonnes in the first five months of 2021, compared to 9,900 tonnes a year earlier, with resin from China accounting for the main increase in imports.


In the past two months, prices on the domestic market have
exceeded export prices in a number of areas, as a result, Russian producers have reduced export sales.

May exports of suspension PVC from Russia were about 19,000 tonnes against 18,700 tonnes in April. Overall exports were 88,800 tonnes in January-May 2021 versus 98,800 tonnes a year earlier.


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