Kazanorgsintez partially shut PE production

Kazanorgsintez partially shut PE production

MOSCOW (MRC) -- Kazanorgsintez (part of TAIF Group) has partially shut its polyethylene (PE) production capacities because of technical issues, according to ICIS-MRC Price report.

The plant's customers said Kazanorgsintez had partially taken on-stream its low density polyethylene (LDPE) and high density polyethylene (HDPE) production capacities by 21 October due to technical problems. The outage was unplanned, the dates of resumption of full capacity utilisation has not been announced yet.

It is also worth noting that Stavrolen shut its HDPE production on 12 October for scheduled repairs. The Budennovsk producer plans to resume its PE production on 17 November. The plant's annual production capacity is 300,000 tonnes.

PJSC "Kazanorgsintez" (part of TAIF Group) is one of Russia's largest plants. Kazanorgsintez produces 40% of overall Russian polyethylene (PE) and is the country's largest exporter. To date, the plant produces PE, polycarbonate (PC), PE pipes, phenol, acetone, bisphenol A. Kazanorgsintez is Russia's only PC producer. It manufactures a total of 170 items of products. Kazanorgsintez's annual output is 1.6 million tonnes. The plant is Russia's largest producer of high density polyethylene (HDPE). The plant's annual HDPE production capacity is 540,000 tonnes and its annual LDPE capacity is 225,000 tonnes.
MRC

Pertamina delays restart of its PP plant in Indonesia after scheduled turnaround

Pertamina delays restart of its PP plant in Indonesia after scheduled turnaround

MOSCOW (MRC) -- Indonesia's PT Pertamina has postponed the resumptions of operations at its sole polypropylene (PP) plant in Plaju, South Sumatera after a scheduled maintenance because of an upstream issue, according to CommoPlast.

The outage at the company's 47,000 mt/year of PP plant began on 16 September and was to last for about 17 days. Thus, this plant was initially scheduled to resume operations on 3 October, 2021. Then the company delayed its restart to 10 October.

As MRC informed before, Pertamina was forced to take its PP unit in West Java off-line on 26 June, 2020, following an unspecified technical glitch at the upstream RFCC unit that cause a disruption of the propylene feeds. The PP plant was brought back on-line on 7-8 July, 2020. The RFCC unit produces 45,000 tons of propylene annually, while the PP plant has a capacity of 45,000 tons/year.

According to MRC's ScanPlast report, PP shipments to the Russian market were 841,990 tonnes in the first seven months of 2021, up by 29% year on year. Supply of propylene homopolymers (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of statistical copolymers of propylene (PP random copolymers) subsided.

Pertamina is an Indonesian state-owned oil and natural gas corporation based in Jakarta. It was created in August 1968 by the merger of Pertamin (established 1961) and Permina (established 1957). Pertamina is the world's largest producer and exporter of liquefied natural gas (LNG).
MRC

COVID-19 - News digest as of 22.10.2021

1. Petrobras reports mixed Q3 2021 production figures

MOSCOW (MRC) -- Brazil's state-run oil company Petrobras, formally known as Petroleo Brasileiro SA, posted mixed production figures on Wednesday as the state-run oil company ramps up output at some major oilfields while also jettisoning a number of legacy production assets as part of a wider divestment drive, reported Reuters. In a securities filing, Petroleo Brasileiro SA said it produced 2.83 MM barrels of oil equivalent per day in the third quarter, up 1.2% in quarterly terms, but down 4.1% from the same period last yr. Crude production came in at 2.269 MM barrels per day (bpd), a 1.9% increase in quarterly terms and a 4% decrease from the third quarter of 2020. Among the highlights of the quarter, the company said, was the entrance into operation of the Carioca, a type of massive offshore platform known as an FPSO, in the deepwater Sepia field. The firm also has begun commercially producing gas at its P-69 platform in the Tupi field, Petrobras said.


MRC

Crude oil futures drop in Asia as pandemic concerns weigh on demand outlook

Crude oil futures drop in Asia as pandemic concerns weigh on demand outlook

MOSCOW (MRC) -- Crude oil futures were lower during mid-morning trade in Asia Oct. 22, as sentiment was impacted by pandemic concerns which could weigh on demand outlook, reported S&P Global.

At 11:15 am Singapore time (0315 GMT), the ICE December Brent futures contract was down 36 cents/b (0.43%) from the previous close at USD84.25/b, while the NYMEX November light sweet crude contract fell 29 cents/b (0.35%) at USD82.21/b.

Oil prices slid after Russia announced the implementation of pandemic-related restrictions in Moscow as COVID-19 infections and deaths have spiked. Russian president Vladimir Putin Oct. 20 approved a "non-working week" from Oct. 30-Nov. 7 to help slow the spread of the virus.

"Crude oil prices lost momentum as sentiment was hurt by concerns that the emergence of restrictions and lockdowns in Russia and eastern Europe due to rising coronavirus cases could threaten the global economic recovery and crude oil demand," ANZ research analysts said Oct 22.

Brent crude had traded as high as USD86.10/b late Oct. 21 before falling off this high, similar to what had occurred on Oct. 18, when the contract surged to USD86.04/b before settling lower on the day.

NYMEX November ULSD fell 1.48 cents to USD2.5343/gal, while November RBOB dipped 2.13 cents to USD2.4588/gal. Despite this fall, some analysts remain bullish about the outlook for the market.

We remind that, as MRC ifnormed earlier, the Indian company Nayara Energy, 49.13% of which is owned by Russia's largest state oil company - Rosneft, has launched a USD750 million petrochemical development program. Nayara Energy has the second largest refinery in India with a capacity of 20 million tons per year. The Indian company has already launched a refinery development program: within the first stage, it is planned to build units for the production of polypropylene (PP) with a capacity of up to 450,000 tonnes per year.

According to MRC's ScanPlast report, PP shipments to the Russian market were 989,570 tonnes in the first eight months of 2021, up by 30% year on year. Deliveries of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas shipments of injection moulding PP random copolymers decreased significantly.
MRC

Dow reports strong Q3 2021 results

Dow reports strong Q3 2021 results

MOSCOW (MRC) -- Dow Chemical (Midland, Michigan), the world's petrochemical major, said it delivered sequential and year-over-year top- and bottom-line growth for its third quarter, as per the company's press release.

Volume increased 2%, driven by gains in Packaging & Specialty Plastics and Performance Materials & Coatings. The company generated higher cash flow from operations and achieved sales growth across all segments and geographies, during the quarter. Gross debt was reduced by more than USD1.1 billion in the quarter.

Looking ahead, the company said it is well-positioned to increase earnings, cash flow and returns as it decarbonize footprint and achieve 2030 and 2050 carbon emissions reduction targets.

"We continue to see robust end-market demand that is expected to extend into 2022, coupled with near-term logistics constraints and low inventory levels across our value chains," said Jim Fitterling, CEO.

Third quarter operating earnings per share was USD2.75, compared to USD0.50 in the year-ago period. On average, 21 analysts polled by Thomson Reuters expected the company to report profit per share of USD2.56, for the quarter. Analysts' estimates typically exclude special items. Operating EBIT improved to USD2.89 billion from USD761 million. Net income to common stockholders was USD1.68 billion or USD2.23 per share compared to a loss of USD25 million or USD0.04 per share.

Net sales were USD14.8 billion, up 53% versus from last year, with gains in all operating segments and regions. Analysts expected revenue of USD14.25 billion, for the quarter. Packaging & Specialty Plastics segment net sales were USD7.7 billion, up 69% from prior year.

As MRC informed previously, earlier this month, Dow and Haldor Topsoe partnered to promote the circular economy. About 300 million tons of plastic waste is produced every year on a global scale. The partnership between Dow and Topsoe marks a new initiative to efficiently convert waste plastics to circular plastics, keeping them out of the environment and responsibly reclaiming their value. Plans include Dow to proceed with the design and engineering for a 10,000 ton per year market development unit using Haldor Topsoe’s PureStepTM technology to purify pyrolysis oil feedstock derived from waste plastics for use in circular products.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,638,370 tonnes in the first eight months of 2021, up by 10% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 989,570 tonnes in the first eight months of 2021, up by 30% year on year. Deliveries of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas shipments of injection moulding PP random copolymers decreased significantly.

Dow combines global breadth, asset integration and scale, focused innovation and leading business positions to achieve profitable growth. The Company's ambition is to become the most innovative, customer centric, inclusive and sustainable materials science company, with a purpose to deliver a sustainable future for the world through our materials science expertise and collaboration with our partners. Dow's portfolio of plastics, industrial intermediates, coatings and silicones businesses delivers a broad range of differentiated science-based products and solutions for its customers in high-growth market segments, such as packaging, infrastructure, mobility and consumer care. Dow operates 106 manufacturing sites in 31 countries and employs approximately 35,700 people. Dow delivered sales of approximately USD39 bn in 2020.
MRC