AOC raises October prices of various resins for EMEA region

AOC raises October prices of various resins for EMEA region

MOSCOW (MRC) -- AOC Resins (Collierville, Tennessee) has announced a price increase for its entire portfolio of Unsaturated Polyester (UPR) and Epoxy Vinyl Ester (VE) resins, and its Neoxil Sizings & Binders products sold in Europe, Middle East and Africa (EMEA), as per the company's press release.

The price increase will take effect on October 1, or as soon as contracts allow, and will be EUR100-200 per ton (depending on resin chemistry).

The price rise was caused by steep increases in energy prices, fees for logistics services (increasing as a result of reduced capacity availability), and the cost of raw materials, sai AOC on its site.

“In addition, the availability of key raw materials from our contract suppliers has been severely hampered and we are continuing to have to resort to other, significantly more expensive, sources. This leaves us no choice but to further raise the prices of our products as a result, realizing that supply can continue to be somewhat irregular given these additional supply routes”, explains Fons Harbers, Vice President Marketing & Sales EMEA of AOC.

As MRC informed earlier, in October 2020, AOC, Kaprain and Spolchemie announced they had reached agreement on AOC acquiring the Unsaturated Polyester Resin (UPR) manufacturing operations located at the Spolchemie site in Usti nad Labem (Czech Republic). This footprint extension will allow AOC to further improve service and logistics to its customers in Central/ Eastern Europe as well as in Germany, and will make new products (e.g. based on recycled PET) available for customers around Europe.

According to MRC's ScanPlast report, the estimated PET consumption in Russia reached 59,050 tonnes in July, 2021, up by 9% year on year. Russia's overall PET consumption totalled 470,250 tonnes in the first seven months of 2021, up by 12% year on year.

AOC is the leading global supplier of specialty resins and materials utilized in a wide range of applications including Coatings and Protective Barriers, Colorants and Visual Effects, Adhesives and Specialties, and Composite resins. With strong capabilities worldwide in manufacturing and science, the company works closely with customers to deliver unrivaled quality, service, and reliability for today and create innovative solutions for tomorrow.

Trinseo and Indaver sign offtake agreement for recycled styrene

Trinseo and Indaver sign offtake agreement for recycled styrene

MOSCOW (MRC) -- Trinseo, a global materials solutions provider and manufacturer of plastics and latex binders, and Indaver, a leader in sustainable waste management in Europe, have signed an offtake agreement for recycled styrene (r-styrene), as per Trinseo's press release.

Under the terms of the agreement, Trinseo will buy a minimum of 50% of the r-styrene produced at Indaver for a 10-year period, following startup of the plant planned in 2023.

As with its other waste collection processes, Indaver will collect post-consumer polystyrene (PS), such as yogurt pots and single-use packaging, and recycle and produce the r-styrene through a proprietary depolymerization technology at its Antwerp, Belgium site. The r-styrene will then be sent to Trinseo’s Tessenderlo, Belgium site nearby and will be used to manufacture recycled PS resins for dairy packaging and other applications. Both the r-styrene and r-PS products will be ISCC Plus mass balance certified.

Recycled PS has the exact same properties as PS made with virgin fossil-based material. Because of the simple chemical structure of PS, infinite recycling has become a reality, and its purity makes it an ideal material for food packaging. Trinseo recently launched rPS, STYRON CO2RE CR55 PS Resins for food contact applications early this year. This particular product has been used to make the first yogurt pot made with a food contact compliant polystyrene recyclate for a leading European yogurt brand, which has been on shelves in France since May 2021.

Trinseo is active in creating innovative circular solutions by partnering with like-minded customers, suppliers, and stakeholders. The company believes circularity is the future and is committed to being part of the process. Indaver is committed to realizing a circular economy as well by creating value from wastes, with a strong focus on the elimination of impurities to guarantee high quality recycled products. Indaver has become a specialist over the last 10 years in reaching those high-quality specifications in its end products by innovative chemical processes. Both companies share a common drive to contribute to a circular economy through technological innovations and they have been exploring a mutually beneficial collaboration for the past three years.

As MRC reported earlier, Trinseo and its affiliate companies in Europe have also announced a price reduction for all polystyrene (PS) grades in Europe. Effective September 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 EUR65 per metric ton;
- STYRON and STYRON A-Tech and STYRON X- Tech and STYRON C- Tech high impact polystyrene grades (HIPS) - by EUR55 per metric ton;

According to ICIS-MRC Price report, in Russia, Nizhnekamskneftekhim raised its September selling HIPS an GPPS prices for most buyers by Rb700-750/tonne amid an increase in delivery costs. However, some market participants reported a price roll-over.

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.

Indaver is a European player in the waste industry with plants and operations in Belgium, the Netherlands, France, Germany, Portugal, Italy, Ireland and the United Kingdom. Indaver manages and treats industrial and household waste in specialist facilities for the (petro)chemical and pharmaceutical industry, waste collectors and governments. Indaver recovers valuable raw materials and energy from these treated waste streams. By doing so, Indaver is creating value from waste and helping to close the materials loop in a safe, low carbon and energy-efficient manner, which makes Indaver the ideal partner in the pursuit of a sustainable circular economy. In 2020, Indaver achieved a turnover of EUR600 million with approximately 1,900 staff throughout Europe.

COVID-19 - News digest as of 29.09.2021

1. Trinseo introduces customized formaldehyde-free acrylic latex to support customer sustainability goals

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex, and rubber, has recently collaborated with a leading consumer materials customer to develop a formaldehyde-free acrylic latex for use in an environmentally friendly, artificial leather washable paper, as per the company's press release. Trinseo’s team of experts worked quickly and responsively to understand the application requirements and formulation challenges to develop a customized and cost-effective LIOGS solution that outperformed its competition. Even during the height of the COVID-19 pandemic, the collaboration moved rapidly. From scale-up after lab sampling to the first order, the conversion took place in just eight months. With the formaldehyde-free LIGOS solution in use, the company now benefits from roughly 10-15% savings on production costs.


Crude oil futures retreat in Europe amid profit-taking, stronger US dollar and unexpectedly higher US inventories

Crude oil futures retreat in Europe amid profit-taking, stronger US dollar and unexpectedly higher US inventories

MOSCOW (MRC) -- Oil futures softened during mid-day trading in Europe Sept. 29 on the back of profit-taking, a stronger US dollar and an unexpected increase in US crude inventories, reported S&P Global.

At 1100 GMT, November ICE Brent futures were down 41 cents/b to USD78.68/b, while November NYMEX WTI futures lost 39 cents/b at USD74.90/b.

"Market observers attribute the price slide to profit-taking following the price surge beforehand. What is more, concerns are growing that rationing of electricity in China could put the brakes on industry there, and thus by extension on demand for oil and gas," said Carsten Fritsch, analyst energy, agriculture, precious metals at Commerzbank.

Meanwhile, a stronger US dollar may have placed additional pressure on the market, with the US dollar index (DXY) up 0.08% to 93.84 at 1100 GMT. A stronger dollar increases the relative expense of oil for buyers with non-US dollar currency, weakening demand.

Adding to the bearish sentiment was data from the American Petroleum Institute released Sept. 28, which showed US crude inventories unexpectedly increasing by 4.1 million barrels during the week ending Sept. 24.

The API report also showed gasoline inventories rising by nearly 3.6 million barrels and distillate stocks jumping by 2.5 million barrels. The market will now await the report by the US Energy Information Administration, due for publication Sept. 29, to draw more definitive conclusions. Should the EIA data correspond with the API figures, it would mark the first rise in crude inventories in eight weeks.

Market participants are now focused on the upcoming meeting of OPEC+ oil ministers scheduled next week, with expectations of an increase in production levels beyond the previously agreed 4 million b/d.

As MRC informed earlier in late August, 2021, US crude stocks dropped sharply while petroleum products supplied by refiners hit an all-time record despite the rise in coronavirus cases nationwide, the Energy Information Administration said. Crude inventories fell by 7.2 million barrels in the week to Aug. 27 to 425.4 million barrels, compared with analysts' expectations in a Reuters poll for a 3.1 million-barrel drop. Product supplied by refineries, a measure of demand, rose to 22.8 million barrels per day in the most recent week. That's a one-week record, and signals strength in consumption for diesel, gasoline and other fuels by consumers and exporters.

We remind that US crude oil production is expected to fall by 160,000 barrels per day (bpd) in 2021 to 11.12 million bpd, the US Energy Information Administration (EIA) said in a monthly report, a smaller decline than its previous forecast for a drop of 210,000 bpd.

PP imports in Russia grew by 16% in January-August

MOSCOW (MRC) -- Polypropylene (PP) imports into Russia increased by 16% year on year to about 165,800 tonnes in the first eight months of 2021. Propylene copolymers accounted for the main increase in imports, according to MRC's DataScope report.

Russian companies decreased external purchases of polypropylene in August, imports reached 20,400 tonnes against 23,200 tonnes a month earlier. Thus, overall PP imports into Russia reached 165,800 tonnes in January-August 2021, compared to 143,200 tonnes a year earlier.
Imports of all types of propylene polymers increased, with the largest increase in supply accounted for by propylene block copolymers (PP block copolymers).

Overall, the structure of PP imports by grades looked the following way over the stated period.

August imports of homopolymer PP were slightly less 6,900 tonnes versus 9,600 tonnes a month earlier, shipments of PP from Azerbaijan decreased significantly. Thus, overall imports of homopolymer PP totalled 61,400 tonnes in the first eight months of 2021, compared to 60,800 tonnes a year earlier.

August imports of PP block copolymers in Russia were about 7,300 tonnes against 6,600 tonnes in July on improved demand for injection moulding and pipe PP. Imports of PP block copolymers into Russia reached 50,100 tonnes in January-August 2021, compared to 38,300 tonnes a year earlier.

August imports of stat-copolymers of propylene (PP random copolymers) decreased to 3,000 tonnes from 3,400 tonnes a month earlier, with films products manufactures accounting for the main reduction in shipments. Overall imports of this grade of propylene copolymers were 27,700 tonnes in January-August 2021, compared to 23,400 tonnes a year earlier.

Russia's imports of other polymers of propylene for the period were about 23,400 tonnes in the first eight months of the year, compared with 20,700 tonnes year on year.