SABIC plans to restart the currently idled cracker at Wilton Teesside

SABIC plans to restart the currently idled cracker at Wilton Teesside

MOSCOW (MRC) -- Saudi petrochemicals major SABIC is to restart its Wilton, UK steam cracker after an GDP850m investment, said the company.

With nameplate capacity to produce 865,000 /t of ethylene, alongside 415,000 t/y of propylene, the cracker first commissioned by erstwhile chemical conglomerate ICI in 1979 is Europe’s second largest. Originally run on liquid naphtha, it was later modified to handle both liquid and gas feedstock, including ethane, naphtha, propane and butane.

After being shut down for maintenance a year ago and not restarted, the facility’s future looked in doubt, and several other plants at the Teesside complex, where production activity has been subdued in recent years, had been expected to close.

Local officials, who reportedly negotiated with SABIC and Aramco to help secure the site’s future, said the new investment in the cracker will create hundreds of jobs and support “thousands more.” No update on the fate of the other plants has yet been forthcoming. SABIC also operates an LDPE plant at Wilton.

As MRC informed before, the British government said that Saudi petrochemical firm Saudi Basic Industries Corp (SABIC), the world's fourth-biggest petrochemicals firm, would invest nearly 1 billion pounds (USD1.37 billion) at its Teesside facility in northeast England with the aim of decarbonisation.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

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.

Saudi Basic Industries Corporation (SABIC) ranks among the world's top petrochemical companies. The company is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.

Trinseo raises November PC prices in Europe

Trinseo raises November PC 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 announced a price increase for all polycarbonate (PC) grades in Europe, as per the company's press release.

Effective November 1, 2021, or as existing contract terms allow, the contract and spot PC prices for the products listed below increased as follows:

- CALIBRE PC resins - by EUR300 per metric ton.

The present price increase is in response to unprecedented and escalating pressure from energy prices and apply to all current agreements and contracts for deliveries as of November 1, 2021 and are subject to further potential adjustments linked to fluctuating energy prices.

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 MRC's ScanPlast report, Russia's consumption of PC granules (excluding imports and exports to Belarus) decreased by 14% and reached 62,000 tonnes in January-August 2021 against 72,100 tonnes in the same period of 2020.

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 USD3.8 billion in net sales in 2019, with 17 manufacturing sites around the world, and approximately 2,700 employees.

COVID-19 - News digest as of 01.11.2021

1. Sinopec net profits up 149% in Jan-Sep on recovering demand

MOSCOW (MRC) -- Sinopec posted a net profit increase of 148.5% in the first nine months amid strengthening crude and firming products demand, the company said. In accordance with IFRS, net profit attributable to shareholders of the Company was RMB 60.755 billion, increased 148.5%. Basic earnings per share were RMB 0.502. In accordance with CASs, the Company's operating income in the first three quarters was RMB 2.0034 trillion, up by 29.0% year on year. Net profit attributable to equity shareholders of the Company reached RMB 59.892 billion.


Crude oil futures down in Asia amid weak economic data in China and announcement of release of state oil product reserves

Crude oil futures down in Asia amid weak economic data in China and announcement of release of state oil product reserves

MOSCOW (MRC) -- Crude oil futures dipped in mid-morning trade in Asia Nov. 1 following weak economic data out of China and Beijing's announcement that it would release state oil product reserves to the domestic market, reported S&P Global.

At 11:01 am Singapore time (0301 GMT), the ICE January Brent futures contract was down 23 cents/b (0.27%) from the previous close at US83.49/b, while the NYMEX December light sweet crude contract fell 41 cents/b (0.49%) at USD83.16/b.

"Oil markets got off to a rocky start after weak weekend official China PMI releases," said OANDA senior market analyst Jeffrey Halley.

China's manufacturing PMI fell to 49.2 in October from 49.6 in September -- its second straight month of decline, data from the National Bureau of Statistics showed Oct. 31. Any number below 50 indicates a contraction of activity.

IG market strategist Yeap Jun Rong said the figures underscored the fragility of the global economic recovery underway.

"PMI figures out of China over the weekend continue to highlight the weakness in economic conditions. A confluence of risk factors continues to be reflected on the Chinese economy, such as the global supply chain shortages and ongoing energy crisis," Yeap said.

China's National Food and Strategic Reserves Administration said Oct. 31. that it will release state oil product reserves to the domestic market to offset a supply shortage and stabilize prices in certain regions. The announcement shows the government's efforts to ensure domestic supplies and to control inflation by capping energy prices. It did not announce the volume to be released or targeted regions.

Latest Commitments of Traders data from the US Commodity Futures Trading Commission showed investors have turned sour on the outlook for oil prices, with speculative net longs in the NYMEX oil contract posting its first decline in four weeks as of Oct. 26. Speculative net longs in the NYMEX contract fell by 5,992 lots to 340,844 in the week to Oct. 26, CFTC data showed.

OANDA's Halley said oil prices will struggle to trade higher this week amid a slew of key dates and economic releases, including an OPEC+ meeting on Nov. 4 and a meeting of the US Federal Reserve's Open Market Committee on Nov. 3.

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.

Novvia Group acquires packaging distributor Fox Valley Containers

Novvia Group acquires packaging distributor Fox Valley Containers

MOSCOW (MRC) -- Global rigid container and life sciences packaging distributor Novvia Group has acquired Fox Valley Containers Inc., a distributor of plastic, metal, corrugated, and glass packaging products, said Canplastics.

The financial terms of the private transaction were not disclosed. Headquartered in Crystal Lake, Ill., Fox Valley is a distributor of cans, pails, drums, bottles, jars, and other rigid packaging products. The company has five warehouse locations throughout the Upper U.S. Midwest.

The existing Fox Valley management team will remain in place to drive the company’s next phase of growth, Novvia officials said in an Oct. 25 news release.

"Fox Valley has long enjoyed a leading reputation in its markets, and we are thrilled to welcome the company’s employees, customers, and suppliers to the Novvia family,” said Sarah Macdonald, CEO of Novvia. “Our partnership with Fox Valley represents the latest step in Novvia’s ongoing effort to continually augment our capabilities in order to deliver a world-class value proposition to our customers."

As it was informed earlier, a group of U.S.-based packaging suppliers all owned by private equity firm Kelso & Co. have united to form a new holding company called the Novvia Group. The companies – Inmark, C.L. Smith, Silver Spur and Container Supply – will serve as a new national stocking distributor for both domestic and international customers.

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.

Novvia is headquartered in St. Louis, Mo.