COVID-19 - News digest as of 14.10.2021

1. Asia crude oil imports stay soft in September

MOSCOW (MRC) -- Despite a rally in crude oil prices to three-year highs, there is scant evidence that demand in the top importing region of Asia is recovering. In fact, imports across the region dropped in September from the previous month, as high prices and economic disruption from the coronavirus pandemic continued to affect fuel demand, reported Reuters. What there is early evidence of is that the major producers in the OPEC+ group of exporters are re-gaining market share lost due to their earlier output cuts, as they ramp up production and cut their official selling prices. Asia's crude imports were 22.99 MM barrels per day (bpd) in September, according to Refinitiv Oil Research, down from 23.24 MMbpd in August and only just above July's 22.61 MMbpd.


MRC

Crude oil futures steady-to-higher in Asia as surging gas prices to support bullish demand outlook

Crude oil futures steady-to-higher in Asia as surging gas prices to support bullish demand outlook

MOSCOW (MRC) -- Crude oil futures were steady to higher in mid-morning trade in Asia Oct. 14 as surging natural gas prices and bullish winter requirements continued to support the demand outlook, reported S&P Global.

At 10:25 am Singapore time (0225 GMT), the ICE December Brent futures contract was up 9 cents/b (0.11%) from the previous close at USD83.27/b, while the NYMEX November light sweet crude contract was 5 cents/b (0.06%) higher at USD80.49/b.

"Generally, there are still optimism surrounding oil prices as markets look toward the upcoming winter period to drive further demand. Near-term catalysts may include a pause in the US dollar rally, which declined from its one-year high yesterday, while markets continue to assess the impact of end-users switching to oil products from surging natural gas prices," IG market strategist Yeap Jun Rong told S&P Global Oct. 14.

OPEC+ in its closely-watched monthly market outlook Oct. 13 lowered its estimate for 2021 oil demand growth to 5.8 million b/d from its previous estimate of 5.9 million b/d.

"The slight revision lower was due to lower-than-expected consumption in the first three quarters of the year," ING research analysts said in a note Oct. 14, adding that OPEC still expected to see stronger demand in Q4, particularly given the potential for gas to oil switching.

However ANZ research analysts in an Oct. 14 note pointed out that while the spike in natural gas could boost petroleum use in areas such as power generation, it could also hurt demand in other areas such as refining.

Energy shortages in Europe continue to impact oil markets, with diesel futures in deep backwardation, driven by the switching to gasoil/diesel for power generation.

US crude inventories rose 5.2 million in the week ended Oct. 8, the American Petroleum Institute said in a weekly report late Oct. 13, defying analyst expectations of a 140,000-barrel draw. Gasoline inventories fell 4.6 million in the week and distillate stocks fell 2.7 million barrels, the API said.

As MRC informed before, US commercial crude stocks fell 3.48 million barrels to 413.96 million barrels in the week ended Sept. 17, to more than 8% below the five-year average, Energy Information Administration data showed. Stocks were last lower Oct. 5, 2018.

We remind that 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 also 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.
MRC

Trinseo enhances commitment to sustainability by appointing Francesca Reverberi as Chief Sustainability Officer

Trinseo enhances commitment to sustainability by appointing Francesca Reverberi as Chief Sustainability Officer

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics and latex binders, has announced that Francesca Reverberi will assume the newly created role of SVP and Chief Sustainability Officer, as per the company's press release as of 12 October.

Effective immediately, in this new role, Reverberi is responsible for enhancing Trinseo’s leadership position in sustainability by continuing to build out its portfolio of sustainable chemistries and driving its corporate and businesses strategies in this very important area. Reverberi is charged with propelling the company towards accomplishing its ambitious 2030 Sustainability Goals centered around increasing the sustainability of its product portfolio and operations, minimizing its impact on climate change, driving supplier responsibility, establishing a more sustainable workforce and building a strong sustainability reputation in the market.

“The creation of this new role of Chief Sustainability Officer and the appointment of Francesca to this inaugural role will bolster Trinseo’s already strong commitment to Sustainability,” said Frank Bozich, Trinseo President and Chief Executive Officer.

Francesca will remain as a member of Trinseo’s Management team and will continue to lead the synthetic rubber business until the sale to Synthos has been completed.

As MRC reported earlier, in May 2021, Trinseo entered into a definitive agreement to sell its synthetic rubber business based in Schkopau, Germany to Synthos S.A. and its affiliates for an enterprise value of approximately USD491 million, comprised of USD449.4 million of cash and the assumption of approximately USD41.6 million of pension liabilities. The expected net cash proceeds are approximately USD400 million after transaction-related costs and taxes. The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in 2022.

We remind that Trinseo and its affiliate companies in Europe have announced a price increase for all polystyrene (PS), acrylonitrile-butadiene-styrene (ABS) and acrylonitrile-styrene copolymer (SAN) in Europe. Effective October 1, 2021, or as existing contract terms allow, the contract and spot prices for the products listed below rose, as follows:

- STYRON general purpose polystyrene grades (GPPS) -- by EUR55 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;
- MAGNUM ABS resins - by EUR60 per metric ton;
- TYRIL SAN resins - by EUR45 per metric ton.

According to ICIS-MRC Price report, in Russia, October prices of Nizhnekamskneftekhim's GPPS were in the range of Rb152,750-163,700/tonne CPT Moscow, including VAT, and HIPS prices were at Rb156,750-167,700/tonne CPT Moscow, including VAT. Penoplex contracted its GPPS quantities at Rb169,000-171,000/tonne CPT Moscow, including VAT, in October, whereas last week's prices of Gazprom neftekhim Salavat's GPPS were heard at Rb152,500-156,500/tonne CPT Moscow, including VAT.

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.
MRC

PP imports to Ukraine decreased by 2% in January-September

MOSCOW (MRC) -- Ukraine's polypropylene (PP) imports totalled about 99,500 tonnes in January-September of this year, down 2% year on year. Only some grades of propylene copolymers imports have grown, according to MRC's DataScope.

September PP imports to Ukraine grew to 16,800 tonnes from 10,900 tonnes a month earlier, local companies increased their purchasing of propylene homopolymers (homopolymer PP) from Russia and Saudi Arabia. Overall imports of propylene polymers reached 99,500 tonnes in January-September 2021, compared to 101,200 tonnes a year earlier. The main decrease in imports accounted for homopolymer PP, while imports of some propylene copolymers increased.

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

September imports of homopolymer PP into the Ukrainian market increased to 13,100 tonnes, while a month earlier this figure was 8,000 tonnes. Producers from Russia and Saudi Arabia increased their export volumes. Thus, overall homopolymer PP imports reached 74,500 tonnes in the first nine months of 2021, down by 2% year on year.

Last month's imports of block copolymers of propylene (PP block copolymers) were about 1,700 tonnes, compared to 1,200 tonnes in August, a small increase in supplies of injection moulding PP block copolymers was seen. About 9,800 tonnes of PP block copolymers were imported in the nine months of this year, compared to 10,500 tonnes a year earlier.

September imports of statistical copolymers of propylene (PP random copolymers) rose to 1,700 tonnes from 1,500 tonnes a month earlier due to stronger demand for injection moulding PP. Total PP random copolymer imports to Ukraine reached 12,600 tonnes in the first nine months of the year, compared with 11,800 tonnes year on year.

Overall imports of other propylene copolymers totalled slightly over 2,600 tonnes over the stated period.


MRC

Trinseo raises October prices for PC/ABS grades in Europe

Trinseo raises October prices for PC/ABS grades in Europe

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex binders, and synthetic rubber, and its affiliate companies in Europe, have announced a price increase for all PULSE polycarbonate (PC)/ acrylonitrile-butadiene-styrene (ABS) in Europe, according to the company's press release.

Effective October 1, 2021, or as existing contract terms allow, the contract and spot prices for the products stated above rose by EUR300 per metric ton.

As MRC reported earlier, Trinseo last raised its prices for all PC grades in Europe on August 1, 2021 by EUR100 per metric ton.

According to ICIS-MRC Price report, in Russia, September prices of Kazanorgsintez's PC remained at the level of August - Rb300,000/tonne FCA, including VAT. The Russian producer did not adjust its October PC prices and maintained them at the previous five months' level.

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.
MRC