Reliance shares decline 3% after Q4 earnings

Reliance Industries reports a 24.8% rise year on year (YOY) in EBITDA for its oil-to-chemicals (O2C) business, to 142.4 billion Indian rupees (USD1.8 billion) in the fiscal fourth quarter ended 31 March, said the company.

Downstream product margins were negatively impacted by weak naphtha cracking economics and supply overhang in fiber intermediates. Quarterly sales rose 44.2% YOY to Rs1.4 trillion, due primarily to increased crude oil prices, it says.

Reliance’s O2C business includes refining, petrochemicals, fuel retailing through the Reliance BP Mobility business, aviation fuel, and bulk wholesale marketing.

In Reliance’s polymers business, domestic demand grew during the fourth quarter with the overall improvement in India’s economy and the easing of pandemic restrictions. Overall polymers demand improved by 3% YOY, which was 16% above pre-COVID pandemic levels. Polyethylene (PE) margins averaged USD325/metric ton compared with $539/metric ton the previous year. The sharp increase in naphtha prices resulted in unfavorable economics for naphtha-based crackers, it says. Naphtha prices averaged USD871/metric ton, up 23% quarter on quarter (QOQ).

As per MRC, Reliance Industries, operator of the world's biggest refining complex, may avoid buying Russian fuels for its plants following western sanctions on Moscow over its invasion of Ukraine.

As MRC informed before, in November 2021, Reliance Industries and Saudi Aramco decided to re-evaluate their agreement for the Middle Eastern producer to buy a stake in the refining and petrochemical business of India's biggest private refiner, and both companies would look at broader areas of cooperation due to the changing energy scenario.

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 2,487,450 tonnes in 2021, up by 13% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market totalled 1,494.280 tonnes, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas.shipments of PP random copolymers decreased significantly.

Reliance Industries is one of the world's largest producers of polymers. The company produces polypropylene, polyethylene and polyvinyl chloride and other petrochemical products.
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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 polystyrene (PS), acrylonitrile-butadiene-styrene (ABS) and acrylonitrile-styrene copolymer (SAN) in Europe, according to the company's press release as of May 4.

Effective May 1, 2022, or as existing contract terms allow, the contract and spot prices for the products listed below rose to reflect current market conditions as follows:

STYRON™ general purpose polystyrene grades (GPPS) by +90 Euro per metric ton
STYRON™ and STYRON™ A-TECH, STYRON™ C-TECH and STYRON™ X- TECH high impact polystyrene grades (HIPS) by +90 Euro per metric ton
MAGNUM™ ABS resins by +60 Euro per metric ton
TYRIL™ SAN resins by +60 Euro per metric ton

We remind, Trinseo last raised its prices for all PS, ABS and SAN grades on 1 April 2022, as stated below:

- STYRON general purpose polystyrene grades (GPPS) -- by EUR430 per metric ton;
- STYRON and STYRON A-Tech and STYRON X- Tech and STYRON C- Tech high impact polystyrene grades (HIPS) - by EUR430 per metric ton;
- MAGNUM ABS resins - by EUR430 per metric ton;
- TYRIL SAN resins - by EUR430 per metric ton.

As per ICIS-MRC Price Report, Russia's domestic expandable polystyrene (EPS) producers kept the prices of their material at the level of April, in early May. Plastik (Uzlovaya) significantly decreased the price of acrylonitrile butadiene styrene (ABS) for various buyers, this month.

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 $4.8 billion in net sales in 2021 and has 26 manufacturing sites and one recycling facility around the world and approximately 3,400 employees.

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CJ Bio, a division of South Korea-based CJ CheilJedang, has begun manufacturing PHA biopolyester at a newly commissioned facility located in Pasuruan, Indonesia, the company has announced.

With a rated capacity of 5,000 tonnes, the new facility will exclusively produce ‘amorphous’ PHAs (a-PHAs). Amorphous PHA , which has a low glass transition temperature (Tg), is a soft, rubbery version of PHA that offers fundamentally different performance opportunities than crystalline or semi-crystalline forms of PHA.

This material will be used as a modifier for other polymers and biopolymers to improve functional characteristics and biodegradability.

Polyhydroxyalkanoates are linear polyesters produced in nature through bacterial fermentation of sugars or lipids. They occur naturally in living cells from a 5-10% rate, which gives PHAs their excellent biodegradability. CJ BIO can increase PHA content up to 85% through bacterial strain and proprietary fermentation technology. The company employs advanced downstream technology for the extraction of PHA components and for the manufacture of specific products.

The technology also has the potential to develop building blocks for other performance materials made from non-fossil fuel sources. With the company’s first commercial production facility up and running a, CJ Bio shipped its first material in April of this year.

This new PHA manufacturing facility in Pasuruan is the culmination of decades of work that started at the company Metabolix in the early 2000s and which CJ Bio has been improving since it acquired Metabolix biopolymer assets in 2016. The company will continue to work of further expansion plans.

We remind, CJ CheilJedang is seeking to continue its success story in the United States, after the successful launch of its dumpling, by introducing ready-to-eat rice "hetbahn" to American consumers in August. Hetbahn, developed by CJ CheilJedang, is the best-selling pre-cooked rice product in the Korean market now in its 27th year. The company has been working on introducing a range of flavors that suit the American consumer palate for the last five years.
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Domo, a manufacturer of engineering and high performance materials has announced it will be investing millions of euros in updating and expanding the production capacity for high-performance Technyl polyamides over the coming years, said Sustainableplastics.

The company said that the investment was necessary to meet growing demand in the automotive, electrical & electronics, and industrial consumer goods industries, and to help build a sustainable future. Domo Chemicals acquired Solvay's performance polyamides business, including its Technyl brand, in 2020. It has been selling its Technyl polyamide products in China and elsewhere since February 1, 2022.

Demand for polyamide materials is currently booming, fuelled by the growing popularity of new energy vehicles - pure electric, hybrid and fuel cell vehicles. Moreover, rising demand for miniaturised circuit breakers, contactors, plug switches, and other components in the electrical and electronics and industrial consumer goods industries is further expanding the application potential for polyamide materials.

Domo is bundling its Domamid, Econamid and Thermec engineered material solution brands together under the Technyl brand to form a new Technyl high-performance polyamide family. The new family will also include Technyl 4 Earth, an environmentally friendly product based on recyclable materials and certified for CO2 reduction.
Asia is the fastest growing market for polyamides in the world, with the majority of that growth concentrated in China. Expanding the production capacity in China will contribute to establishing Domo Chemicals as a strong presence in that region and will help local manufacturers keep pace with emerging trends for more sustainable materials.

The facilities at the production site in Jiaxing, Zhejiang Province, will therefore be enlarged in three stages. The first stage saw the addition of 6,000 tons of capacity, which came on stream in March, bringing the plant’s total capacity to 14,000 tons of PA6 from April onwards.

A 35,000-ton new plant in Haiyan is being constructed, with completion due in the third quarter of 2023. The new plant represents an investment of more than 14 million euros (97 million yuan). Going forward, Domo will further expand the plant, gradually increasing its capacity to 50,000 tons. The new plant will be also produce Technyl 4 Earth for Domo’s global and local customers.

In addition to the expansion, the plant will also use renewable energy wherever possible, adopt advanced water and air treatment technologies to reduce water consumption and CO2 emissions, and fully comply with Health, Safety and Environmental Management System (HSE) regulations. Domo Chemicals will improve HSE compliance continuously and work closely with the local government, while partnering with key local and global customers to accelerate innovation and development across a wide range of industries.

As per MRC, Domo Chemicals, a global leader in engineered material solutions and fully integrated producer of PA6, announced today the successful delivery of 5 million tonnes of caprolactam at its Leuna site. The Leuna site has produced caprolactam in its facilities since 1942. This quantity is equivalent to approximately 225,000 truck loads. The German subsidiary DOMO Caproleuna has been producing caprolactam and polyamide at the site in the heart of Europe since 1994. During this period, production capacities have been gradually expanded to the current 176,000 metric tonnes per year.

Domo Caproleuna GmbH (Lein, Germany) produces nylon, nylon derivatives, and polypropylene. Domo Caproleuna GmbH was previously known as Caproleuna GmbH. Domo Caproleuna GmbH is a subsidiary of Domo Chemicals NV.
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LyondellBasell announced that Jiangsu Hongjing New Material Co. Ltd. will use its Lupotech T high-pressure polyethylene technology at a new facility, said the company.

The process technology will be used for two 200 kiloton per year (KTA) vinyl acetate copolymer (EVA) lines. The facility will be located in the Lianyungang, Jiangsu Province, P.R. of China.

“Demand for both EVA and low density polyethylene (LDPE) remains strong in the current dynamic market. In particular, higher value applications such as for solar panel lamination and encapsulant are in strong demand, driven mainly by the on-going energy transition,” said Neil Nadalin, Director Global Licensing and Services at LyondellBasell. Nadalin added, “The Lupotech T process, offering both lowest operating and balanced investment cost, is the technology of choice for our customers to produce both EVA and LDPE grades”.

Mr. Bai Wei, Chairman of Jiangsu Hongjing New Material Co., Ltd stated, “We gained within the Jiangsu Shenghong group companies a very pleasant experience with the LyondellBasell polyolefin technology offer in the field of high pressure technology. This is already the 4th and 5th polyolefin line based on LyondellBasell proprietary technology allowing us to produce superior polyolefin grades in high demand. Therefore, selecting LyondellBasell technology was a natural choice for expanding our production capacity with this additional project.”

Decades of experience in high-pressure application design makes the Lupotech T process the preferred technology for LDPE/EVA plant operators. High conversion rates, demonstrated high plant availability, and effective process heat integration are key attributes of the Lupotech T process, designed to ensure this technology’s on-going energy efficiency.

More than 13 million KTA of the Lupotech T process for LDPE/EVA production capacity has been licensed by LyondellBasell in over 70 lines around the world.

New licensees can take advantage of LyondellBasell’s in-house expertise of continuous production improvement, product development according to the latest environmental regulations and our knowhow in high pressure design, by optionally joining our Technical Service program.

As MRC wrote earlier, in July, 2021, Neste and LyondellBasell announced a long-term commercial agreement under which LyondellBasell will source Neste RE, a feedstock from Neste that has been produced from 100% renewable feedstock from bio-based sources, such as waste and residue oils and fats. This feedstock will be processed through the cracker at LyondellBasell’s Wesseling, Germany, plant into polymers and sold under the CirculenRenew brand name.

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 2,487,450 tonnes in 2021, up by 13% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market totalled 1,494.280 tonnes, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas shipments of PP random copolymers decreased significantly.
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