European PVC prices did not increase in CIS countries in September

MOSCOW (MRC) - Negotiations on the prices of European polyvinyl chloride (PVC) for September supplies to the markets of the CIS countries had started last week. Despite the decline in ethylene prices in the region, European producers have rolled over August export prices for the current month, and in some cases there has even been an increase of EUR15/tonne, according to the ICIS-MRC Price Report.

September contract price of ethylene was agreed down by EUR8/tonne from the previous month, which theoretically allows to talk about an decrease of EUR4/tonne in the net cost of PVC production compared with August. But in the conditions of a serious deficit in the region and a number of planned shutdowns for repairs in August - October, European producers decided to roll over the August export prices for September shipment. In some cases, buyers reported a price increase of EUR15/tonne.

Several producers will shut down their capacities for maintenance works in August-October; it was reported about unscheduled shutdowns of some plants in line with a decrease in supplies from the United States. All these factors negatively affect the export sales of European producers.

As a result, over the past two months, some buyers have reported an almost complete lack of PVC for them from some producers in Europe. Overall, deals for September shipments of suspension polyvinyl chloride (SPVC) to the CIS markets were discussed in the range of EUR1 440-1 500/tonne FCA, whereas the previous month's deals were negotiated at EUR1 390-1 460/tonne FCA.

MRC

MOSCOW (MRC) -- Russian petrochemicals giant SIBUR has recovered from the initial shock of the pandemic and is increasing its exports, mainly to Europe, thanks to surging demand for medical equipment, a senior executive told Reuters.

SIBUR, the largest petrochemicals producer in eastern Europe, is ramping up production following construction of the ZapSibNefteKhim plant in the Western Siberian city of Tobolsk and a merger with TAIF, yet to be completed.

Sergey Komyshan, executive director of SIBUR, told Reuters in comments cleared for publication on Wednesday that the company expects the ZapSib plant to produce two million tonnes of polymers, mostly polyethylene and polypropylene, this year.

The plant was launched in 2019 with annual capacity of 2.5 million tonnes of polymers. According to Komyshan, demand for petrochemicals has recovered after being hit by the pandemic.

"In the beginning, the medical sector helped a lot, (demand) for medical protective gear and packaging. They offset the losses in the areas such as carmaking and construction," he said, adding demand in the auto sector and construction was now back, too. "We saw a very robust growth, we have practically returned to normality."

The demand recovery means SIBUR is boosting its petrochemical exports to Europe. "We have more than doubled our supplies there, year on year, and we will continue to do so," Komyshan said, adding the bulk had gone to eastern Europe, Germany, France, Belgium, the Netherlands and Luxembourg.

"The most pronounced rise is in Turkey where we became the second player on the propylene market," he said, without providing details. Last year, SIBUR exported 1.44 million tonnes of polyethylene and polypropylene, up from 400,553 tonnes in 2019, thanks to the ZapSib plant.

Privately-owned SIBUR has a deal to sell up to one million tonnes of polyethylene a year to China's Sinopec from ZapSib.

As MRC reported, on 23 April of this year, SIBUR announced a merger with TAIF by exchanging 15% of its shares for 50% + 1 share in TAIF. The scope of the transaction includes only TAIF's petrochemical and generating companies. This merger will increase the scale of SIBUR's operations and strengthen its market leadership. SIBUR and TAIF expect to reach final terms and close the deal in the second half of 2021. TAIF together with SIBUR will spend more than 1 trillion rubles. for the implementation of joint projects. In total, the companies plan to implement over 30 projects.

As a result of the merger, the total capacity share of the new SIBUR-TAIF group will be 100% for the production of linear low-density polyethylene (LLDPE), 87.4% for polypropylene (PP), 80.8% for low-density polyethylene (HDPE), and for high-pressure polyethylene (LDPE) - 59.3%.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.

SIBUR manufactures and sells petrochemical products on the Russian and international markets in two business segments: olefins and polyolefins (polypropylene, polyethylene, BOPP, etc.), as well as plastics, elastomers and intermediate products (synthetic rubbers, expanded polystyrene, PET, etc.)
MRC

MOSCOW (MRC) -- Imports of suspension polyvinyl chloride (SPVC) into Ukraine fell in the first eight months of 2021 by 26% year on year, totalling 18,500 tonnes. Export sales of Ukrainian PVC rose by 17% year on year partially due to record high prices in a number of regions of the world, according to MRC's DatasScope report.

Last month's SPVC imports to the Ukrainian market decreased to 2,700 tonnes from 3,100 tonnes in July, Ukrainian companies reduced their shipments of polymer from China. Overall SPVC imports reached 18,500 tonnes in January-August 2021, compared to 25,100 tonnes a year earlier. Limited export quotas of European and North American producers were the main reason for such a major fall in imports.

European producers with the share of about 86% of the total imports over the stated period were the key suppliers of resin to the Ukrainian market.

Last month, Karpatneftekhim maintained its export sales at a good level, export sales of Ukrainian resin were 13,300 tonnes versus 13,600 tonnes in July. Overall, slightly less than 129,700 tonnes of PVC were shipped for export in the first eight months of 2021, compared to 111,000 tonnes a year earlier.

MRC

MOSCOW (MRC) -- The US Environmental Protection Agency dispatched a surveillance aircraft to an area in Louisiana hard hit by Hurricane Ida that includes a refinery where an apparent oil spill has been reported, according to Reuters.

The aircraft dispatched from Texas will gather data on the Phillips 66 refinery and other priority sites, an EPA spokesman told Reuters.

"EPA's ASPECT aircraft - the Agency's airborne real-time chemical and radiological detection, infrared and photographic imagery platform - has been activated to support the state of Louisiana," the spokesman said.

Phillips 66 said earlier that flooding had occurred at its Alliance Refinery and a sheen of unknown origin in some flooded areas of the refinery had been discovered.

"At this time, the sheen appears to be secured and contained within refinery grounds. Clean-up crews are on site. The incident was reported to the appropriate regulatory agencies upon discovery", the company said.

"A full post-storm assessment remains underway at the refinery. An investigation into the cause/origin of the sheen will be conducted. The refinery remains shut down", it added.

The Associated Press has also reported a possible spill near an offshore rig in the Gulf of Mexico after a review of aerial images of the disaster zone taken by the National Oceanic and Atmospheric Administration. The photographs appeared to show a miles-long brownish-black slick in the waters south of Port Fourchon, Louisiana.

The rig had Enterprise Offshore Drilling marked on its helipad. Enterprise Offshore Drilling said in a statement on its website that its rig had not suffered any damage or failure and that "no environmental discharges had occurred from our facility".

The Louisiana Oil Spill Coordinator's Office said that state regulators were still in the very early stages of responding to the environmental hazards brought by Ida.

As MRC informed earlier, Enterprise Products Partners has reported flaring at its propane dehydration, or PDH, unit in Mont Belvieu, Texas. According to the filing made public Aug. 10, the 750,000 mt/year PDH unit was shut down following a leak on Aug. 9.

Propylene is the main feedstock for the production of polypropylene (PP).

According to MRC's ScanPlast report, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.
MRC

MOSCOW (MRC) -- European Ineos Styrolution, a global leader in styrenics, has launched its first specialty acrylonitrile-butadiene-styrene (ABS) with recycled content, the company said Sept. 8.

The new specialty AMOBS grades, NovodurECO and Novodur ECO High Heat will contain up to 70% and 50% mechanically recycled post-consumer waste respectively.

The company states that the new products have identical mechanical properties to their virgin ABS counterparts, Novodur and Novodur High Heat and can be used as drop-in solutions in their respective applications.

The company already produces TerluranECO, a version of its general purpose ABS Terluran brand with a recycled ABS content of up to 70%.

As MRC reported earlier, in April 2021, INEOS Styrolution, Recycling Technologies and Trinseo announced that they had reached a significant milestone in their plans to build commercial polystyrene (PS) recycling plants in Europe. Recycling Technologies has been selected as the technology partner.

According to MRC's ScanPlast report, ABS imports into Russia grew in January-July 2021 by 33% year on year to 24,300 tonnes from 18,200 tonnes a year earlier. The share of South Korean shipments fell to 57% (13,700 tonnes) from 63% (11,400 tonnes) a year earlier.

INEOS Styrolution is the leading global styrenics supplier, with a focus on styrene monomer, polystyrene, ABS Standard and styrenic specialties. With world-class production facilities and more than 90 years of experience, INEOS Styrolution helps its customers succeed by offering solutions, designed to give them a competitive edge in their markets. At the same time, these innovative and sustainable best-in-class solutions help make the circular economy for styrenics a reality. The company provides styrenic applications for many everyday products across a broad range of industries, including automotive, electronics, household, construction, healthcare, packaging and toys/sports/leisure. In 2020, sales were at 4 billion euros. INEOS Styrolution employs approximately 3,600 people and operates 20 production sites in ten countries.

MRC