COVID-19 - News digest as of 10.02.2022

1. Evergreen acquires two more PET recycling plants and expands capacities to meet stronger demand

MOSCOW (MRC) -- To meet growing demand, polyethylene terephthalate (PET) reclaimer Evergreen has recently bought a pair of facilities and added another extruder to an expansion project, according to Plastics Recysling Update. A plastics recycling and manufacturing company owned by The Sterling Group, Evergreen had a single facility in Clyde, Ohio in January 2021. It bought CarbonLite’s first PET recycling facility in Riverside, Calif. in May 2021 after CarbonLite filed for bankruptcy. Evergreen announced Feb. 9 that it purchased UltrePET in Albany, N.Y. and Novapet in Amherst, Nova Scotia, in November 2021. UltrePET, now named Evergreen Albany, and Novapet, now named Evergreen Amherst, were acquired from wTe Corp. The acquisitions will allow Evergreen to expand its overall production capacity from about 40 million pounds a year to 147 million pounds of food-grade RPET.

MRC

PVC production decreased by 3% in January in Russia

MOSCOW (MRC) -- Overall production of polyvinyl chloride (PVC) reached 87,100 tonnes in 2021, down by 3% year on year.
Three producers slightly decreased their output, according to MRC's ScanPlast report.

January output of unmixed PVC came close to the level of 87,100 tonnes against 89,800 tonnes and 88,400 tonnes in January and December a year earlier; three producers decreased production volumes. Overall output of polymer totalled 1,007,000 tonnes in 2021 versus 976,300 tonnes a year earlier.

The structure of PVC production by plants looked the following way over the stated period.

RusVinyl (joint venture of SIBUR and SolVin) produced a little less 30,700 tonnes of PVC in January, with about 2,500 tonnes of which accounted for emulsion polyvinyl chloride (EPVC), compared to 30,600 tonnes in January and 30,600 tonnes in December 2021. RusViny's overall PVC output reached 349,400 tonnes last year.

SayanskKhimPlast produced slightly less than 27,700 tonnes of suspension PVC (SPVC), compared to 27,900 tonnes in January and December last year. Total PVC production at SayanskKhimPlast in 2021 was 309,300 tonnes 2021.

Bashkir Soda Company (BSC) in the first month of the year produced about 21,300 tonnes against 23,500 tonnes and 22,900 tonnes in January and December last year. Total PVC production at Bashkir Soda Company in 2021 reached 268,200 tonnes.

Kaustik (Volgograd) last month seriously increased its capacity utilisation and produced slightly less than 7,500 tonnes of suspension PVC against 7,400 tonnes and 7,000 tonnes in January and December last year. The plant's overall output of PVC reached 80,300 tonnes in 2021.

MRC

European producers roll over January PVC prices for February for CIS markets

European producers roll over January PVC prices for February for CIS markets

MOSCOW (MRC) -- Negotiations over prices of European polyvinyl chloride (PVC) for February shipments to the CIS countries began late last week. The price of ethylene rose significantly in the region. However, European producers rolled over their January export PVC prices for February shipments, and in some cases, there were even a slight reduction, according to ICIS-MRC Price report.

The February contract price of ethylene was agreed up by EUR67,5/tonne from the previous month, which theoretically allows to talk about an increase of EUR34/tonne in the net cost of PVC production. But with global supply rising and prices falling in a number of the key export destinations, European suppliers are not considering price hikes. Most producers rolled over their January export PVC prices for February shipments, and only in a few cases, prices dropped by EUR10/tonne.

Since last November, the global availability of PVC has been gradually increasing. Suppliers of North American PVC began to enter the European and CIS markets more actively, whereas prices constantly decreased. Difficulties with maritime logistics remained, which negatively affected delivery times. But this factor faded into the background.

For a number of export destinations, it is increasingly difficult for European producers to maintain high prices, despite the growth in feedstock prices and electricity in the region. In February, European producers are trying to maintain their prices in the range of EUR1,640-1,710/tonne FCA for the CIS markets.

At the same time, it should be noted that PVC prices for shipments from the USA slumped again in February Thus, offer prices fell down to USD1,600/tonne CFR and lower.
MRC

North American weekly chem railcar traffic flat year on year

North American weekly chem railcar traffic flat year on year

MOSCOW (MRC) -- North American chemical railcar traffic came in flat year on year for the week ended 5 February, following four weeks of declines, according to the latest data from the Association of American Railroads (AAR).

A 1% increase in the US was offset by declines in Canada and Mexico. For the five weeks of 2022 ended 5 February, North American chemical rail traffic was down 2.4% year on year to 231,266 railcar loadings.

With the exception of coal and non-metallic minerals, shipments are down in all the major commodities categories so far this year.

In the US, chemical railcar loadings represent about 20% of chemical transportation by tonnage, with trucks, barges and pipelines carrying the rest. In Canada, producers rely on rail to ship more than 70% of their products, with some exclusively using rail.

As per MRC, North American chemical railcar traffic fell by 3.3% year on year for the week ended 15 January, as a small increase in US shipments was more than offset by declines in Canada and Mexico. The decline followed a 6.7% decline in the previous week, ended 8 January. For the first two weeks of 2022, ended 15 January, North American chemical railcar loadings were down 5.0% year on year to 91,437.

As per MRC, North American chemical railcar traffic for the week ended 8 January fell by 6.7% year on year to 45,325 loadings, with decreases in all three countries - the US, Canada and Mexico. In the US, chemical railcar loadings represent about 20% of chemical transportation by tonnage, with trucks, barges and pipelines carrying the rest. In Canada, producers rely on rail to ship more than 70% of their products, with some exclusively using rail.
MRC

Evergreen acquires two more PET recycling plants and expands capacities to meet stronger demand

Evergreen acquires two more PET recycling plants and expands capacities to meet stronger demand

MOSCOW (MRC) -- To meet growing demand, polyethylene terephthalate (PET) reclaimer Evergreen has recently bought a pair of facilities and added another extruder to an expansion project, according to Plastics Recysling Update.

A plastics recycling and manufacturing company owned by The Sterling Group, Evergreen had a single facility in Clyde, Ohio in January 2021. It bought CarbonLite’s first PET recycling facility in Riverside, Calif. in May 2021 after CarbonLite filed for bankruptcy.

Evergreen announced Feb. 9 that it purchased UltrePET in Albany, N.Y. and Novapet in Amherst, Nova Scotia, in November 2021. UltrePET, now named Evergreen Albany, and Novapet, now named Evergreen Amherst, were acquired from wTe Corp. The acquisitions will allow Evergreen to expand its overall production capacity from about 40 million pounds a year to 147 million pounds of food-grade RPET.

An expansion project at the original Clyde location, scheduled to be finished in June 2022, will increase production capacity further, to over 217 million pounds per year. The project will add a 54,000-square-foot building to the existing 238,000-square-foot facility.

Evergreen General Manager Greg Johnson said the company has spent a total of USD200 million on the acquisitions and expansion. The Ohio expansion was originally just going to add a single new extruder, but the company recently decided to add another for a total of four extruders at the facility.

CEO and President Omar Abuaita said the company is looking to continue to expand in the RPET space and “secure the supply for the bales, which is fairly important in today’s RPET world.”

Evergreen’s expansion as of late has been supported by investments. The American Beverage Association (ABA), Ohio Beverage Association and investment firm Closed Loop Partners put a combined USD5 million into the Ohio project.

Johnson said Evergreen spends “a lot of time innovating and upgrading our processes to try to produce not only the best PET, but customized recycled PET that can meet the varying demand of our different customers.”

COVID-19 did not have a big effect on Evergreen after the initial few months of 2020 when “nobody wanted to touch a bottle,” Abuaita said.

“Things are back to normal but normal is not a good thing,” he said. “Our collection system is broken. It’s not sustainable, not with the demand.”

As MRC reported earlier, in October 2020, Pactiv Evergreen announced a new goal that by 2030, 100% of its products will be made with recycled, recyclable or renewable materials.

According to MRC's ScanPlast report, the estimated PET consumption in Russia remained steady year on year in December 2021. December estimate PET consumption was 67,880 tonnes (67,710 tonnes in December 2020).
Russia's overall estimated PET consumption totalled 805,470 tonnes in 2021, up by 13% year on year (714,760 tonnes in 2020).
MRC