Neftekhim Ltd resumed PP production

Neftekhim Ltd resumed PP production

MOSCOW (MRC) -- Kazakh Neftekhim Ltd, Kazakhstan's sole polypropylene (PP) producer, has resumed its PP production after the scheduled maintenance works, according to the ICIS-MRC Price report.

According to the clients of the plant, the Kazakh producer began to resume the production of PP on 25 October after carrying out planned maintenance works. The outage began on 27 September.

Neftekhim Ltd was commissioned in 2009. The company produces methyl tertiary butyl ether (MTBE) and polypropylene (PP). The plant's PP production with the capacity of 45,000 tonnes/year was launched in 2011; the plant did not have PP granulation unit then, polymer was produced in the form of powder, which limited its field of application.

LDPE prices reached another historical record in Russia at the end of October

LDPE prices reached another historical record in Russia at the end of October
MOSCOW (MRC) - Despite the low demand in the spot market and the end of turnarounds, Russian producers continue to raise prices for low density polyethylene (LDPE) for supplies to the domestic market. Last week, prices rose again by roubles (Rb) 1,000-7,000/tonne, according to ICIS-MRC Price Report.

Kazanorgsintez resumed LDPE production after a scheduled shutdown in mid-October, thereby completing the period of scheduled maintenance works of Russian producers this year. The supply of polyethylene increased in October in the spot market, but demand remained at a low level. At the same time, domestic producers increased LDPE prices further for supplies to the domestic market under the pressure of rising cost of raw materials and the situation on foreign markets.

Last week, polyethylene prices rose by Rb1,000-7,000/tonne, breaking another record. Demand for LDPE has remained low in the spot market since September, and is largely due to the another jump in prices.

Quite a lot of companies carry out their purchases of polymer within the framework of annual contracts, and almost completely refused from buying in the spot market due to a significant difference in price. The volume of LDPE imports to Russia decreased in October, in particular, the Belarusian producer Polymir almost halved its supplies to the Russian market.

Nevertheless, this factor did not affect the market balance, low demand offset everything. Nevertheless, despite low demand, spot prices from Russian producers continue to grow. Last week one of the producers raised prices by Rb7,000/tonne. That is why price offers for 158 PE reached Rb164,000/tonne CPT Moscow, including VAT.

Spot prices for the 108 LDPE have grown less significantly and so far do not exceed the level of Rb150,000/tonne CPT Moscow, including VAT.

BASF increased sales by 42% for the third quarter of 2021

BASF increased sales by 42% for the third quarter of 2021

MOSCOW (MRC) -- BASF swung to a third-quarter net profit of EUR1.25bn from a loss of EUR2.12bn in the same period of last year on the back of higher prices in all business segments, especially in chemicals, surface technologies and materials, said the company.

The projected sales volume for 2021 is 76-78 billion euros. EBIT, excluding one-time effects, rose to 1.9 billion euros, for the year the company expects this figure to be 7.5-8 billion euros.

Sales for the third quarter of 2021 were recorded at 19.7 billion euros, which is 5.9 billion euros more than in the same period last year. The company said in a statement that the growth is largely due to higher prices in all segments. Sales growth was also driven by a significant increase in sales volumes in virtually all segments.

“Thanks to the significant contribution of the Chemicals and Materials segments, total revenue in the third quarter of 2021 is comparable to the second quarter of 2021. Our downstream businesses continue to face continued increases in raw materials, energy and transportation costs. products in most of these businesses only partially offset the increased costs, ”said Martin Brudermuller, Chairman of the Board of Executive Directors of BASF SE.

One-time EBIT effects were minus EUR43 million in the third quarter of 2021. The costs are mainly related to restructuring measures, as well as disintegration and integration costs. Other income had a compensating effect. One-off effects in the previous year were minus EUR3.2bn, primarily due to lower asset values ??across all segments, as well as restructuring measures.

Compared to the third quarter of 2020, operating profit before depreciation, amortization and non-recurring effects (EBITDA excluding one-time effects) increased by 1.2 billion euros to 2.8 billion euros, and EBITDA increased by 1.7 billion euros up to 2.7 billion euros. Net profit amounted to 1.3 billion euros against a loss in the same period last year.

As per MRC, BASF, the world's petrochemical major, is strengthening its global catalyst development and helping customers to bring new products faster to the market. As part of this strategy, BASF is building a new pilot plant center at its Ludwigshafen site.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,396,960 tonnes in January-July 2021, up by 7% year on year. Shipments of all grades of ethylene polymers increased. At the same time, 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.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.

Trinseo raises October PMMA prices in Europe

Trinseo raises October PMMA prices 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 provided the following details regarding utility surcharges for Trinseo PMMA Resins and Sheets, as per the company's press release.

In order to continue ensuring normal production and service levels, Trinseo and its affiliates will implement, as of October 27, 2021, price surcharges to all deliveries of the following products in the EMEA region:

- ALTUGLAS acrylic resins and sheets - EUR350/mt;
- OROGLAS acrylic sheets - EUR350/mt.

These surcharges are in response to unprecedented and escalating pressure from energy prices, apply to all current agreements and contracts for deliveries as of October 27, 2021 and are subject to further potential adjustments linked to fluctuating energy prices.

As MRC reported earlier, in May, 2021, Trinseo announced the closing of the previously announced transaction to acquire Arkema’s polymethyl methacrylates (PMMA) business. PMMA is a transparent and rigid resin with a wide range of end uses that augments Trinseo’s existing offerings across several end markets including automotive, building and construction, medical and consumer electronics.

The main application, consuming approximately 75% MMA, is in the production of polymethyl methacrylate acrylic plastics (PMMA). Methyl methacrylate is also used to produce methyl methacrylate-butadiene-styrene copolymer (MBS), used as a modifier for polyvinyl chloride (PVC).

According to ICIS-MRC Price report, negotiations over Russian November PVC shipments have begun next week.
In fact, converters were severely affected by the global short supply and record high prices.

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.

COVID-19 - News digest as of 27.10.2021

1.Lifting of COVID-19 state of emergency to support Japanese gasoline demand in October

MOSCOW (MRC) -- Japan's decision to lift all of the COVID-19 state of emergency and priority measures at the end of September would support the country's ailing gasoline demand in October but market sources remained cautious about the speed of recovery, reported S&P Global. Japan decided to lift all of its state of emergency on 19 prefectures and its priority measures on eight prefectures on Sept. 30 following a significant drop in new infections. This has been the first time that Japan was not under any of COVID-19 state of emergency and priority measures since early April. "Japan's crude runs are expected to rise to 2.7 million b/d between November and January, up from 2.3 million b/d in October, as refiners gear up for winter heating demand, and this will be supportive for crude imports over the next few months," said JY Lim, oil markets adviser at S&P Global Analytics.