MEGlobal has nominated September prices

MEGlobal has nominated September prices

MOSCOW (MRC) -- MEGlobal has nominated its September 2023 monoethylene glycol (MEG) Asian Contract Price (ACP) at USD810/tonne, stable from its August ACP, said the company.

The price is on a CFR (cost & freight) Asia basis.

We remind, MEGlobal has nominated its August 2023 monoethylene glycol (MEG) Asian Contract Price (ACP) at USD810/tonne, up by USD20/tonne from its July ACP.

SONGWON Industrial Group announces Q2/2023 fnancial results

SONGWON Industrial Group announces Q2/2023 fnancial results

MOSCOW (MRC) -- SONGWON Industrial Group published its Q2 and half-year financial results for the 2023 financial year, said Coatingworld.

Over the quarter, the Group achieved consolidated sales of 269,232 Million KRW marking a decrease in revenues over the same quarter of the previous year of 21.4% (342,735 Million KRW). Year-to-date (YTD), the Group realized consolidated sales of 536,399 Million KRW, representing a 21.3% decline over YTD June 2022 (681,168 Million KRW) and recorded a drop in net profit to 22,582 Million KRW (Q2/2022: 82,097 Million KRW). The Group’s gross profit margin achieved in Q2/2023 was 16.4% and YTD 15.9 % reflecting a decrease of 8.3%-points and 9.6%-points over the prior year comparable period.

As anticipated, geopolitical tensions, volatile economic conditions, and the downturn in demand across the various regions observed in Q1/2023 continued throughout Q2/2023, impeding the performance of SONGWON's Divisions.

Q2/2023 was sluggish for Division Industrial Chemicals due to a challenging market environment with aggressive pricing strategies and intense competition compounded by the low demand, lack of reliable customer forecasting and shorter visibility. Revenues fell by 23.7% to 198,774 Million KRW in Q2/2023, compared to the same period in 2022 (Q2/2022: 260,406 Million KRW). In the first six months of 2023, the Division reported a decline in sales of 22.5% (YTD: 394,721 Million KRW) over the previous year (YTD June 2022: 509,271 Million KRW).

In Q2/2023, increased product availability and fierce price competition, mainly from Asia as well as the ongoing Russia-Ukraine conflict negatively impacted Polymer Stabilizers. However, overall performance was stable and comparable to Q1/2023. Demand for Fuel and Lubricant Additives remained similar to Q1/2023 and volumes in Q2/2023 were also comparable with Q1/2023. Revenues were negatively affected by the declining raw material and freight costs applied to the previously implemented raw material pricing formula mechanisms. Coatings experienced a slow 2nd quarter due to higher market supply than demand. This led to further price reductions compared to Q1/2023 with additional price erosion caused by falling raw material prices.

For Division Performance Chemicals, the 2nd quarter remained comparable to the previous quarter with no significant changes. The Division achieved revenues of 70,458 Million KRW in Q2/2023, 14.4% lower than in the previous year (Q2/2022: 82,329 Million KRW). YTD, the Division achieved sales of 141,678 Million KRW, marking a 17.6% decline compared to the same reporting period in 2022 (YTD June 2022: 171,897 Million KRW).

Throughout Q2/2023, Tin Intermediates saw slight impfrovements in turnover, volumes, and margins, driven by high tin metal and end-product prices as well as signs of automotive market recovery in China and Europe. With no market recovery in Asia, the PVC market remained weak but sales outside of Asia positively impacted profitability. Stable raw material prices supported profitability for Solution Polyurethanes and Thermoplastic Polyurethanes in Q2/2023, but the continuing economic recession negatively affected customers' operations and stagnant demand in Korea has led to ongoing intense competition.

Faced with ongoing geopolitical uncertainty, inflationary pressures and a macroeconomic environment with low visibility, 2023 is proving to be a challenging year for the industry. Moving into Q3/2023, SONGWON expects continuing weak demand and further declines in raw material and logistics prices. Despite this, the Group is optimistic about the effectiveness of its actions to address market imbalances and the positive impact of new products on future revenues and profitability. SONGWON will continue to pursue its strategy, monitor global developments and prioritize customer needs. Looking to the next six months with caution, the company is confident that it is well-positioned to face emerging challenges and remain a reliable supplier to its customers.

We remind, Songwon appoints Omya to represent their PVC stabilizers SONGSTAB in Australia & New Zealand, said the company. This is an expansion of the strategic partnership of Omya with Songwon and also with their other business units, said the company.

Russian seaborne diesel exports rise by 7% in August

Russian seaborne diesel exports rise by 7% in August

MOSCOW (MRC) -- Russia's seaborne diesel and gasoil exports rose by 7% to about 1.7 million metric tons in the first 14 days of August from the same period in July on strong production volumes after seasonal refinery maintenance eased, data from traders and Refinitiv Eikon showed, said Reuters.

In August so far, Turkey remains the top destination for diesel exports from Russian ports, taking about 42% of total supplies, or nearly 720,000 metric tons, Refinitiv shipping data showed. Diesel loadings from Russia to Brazil totaled about 140,000 metric tons since the start of this month.

Among the leading Russian diesel importers to Africa in August, Refinitiv data showed Ghana (75,000 metric tons), Morocco (68,000 metric tons) and Togo (60,000 metric tons). No Russian diesel cargoes were seen heading to Saudi Arabia this month, with only one going to the kingdom in July, according to shipping data.

About 180,000 tons of Russian diesel are destined in August for ship-to-ship (STS) loadings near the Greek port of Kalamata. The final destinations for those volumes are as yet unknown, but usually those cargoes end up in Turkey and Middle East countries.

Another 230,000 tons of diesel loaded in Russian ports since the start of August do not yet have a confirmed destination. All the shipping data above are based on the date of cargo departure.

We remind, most Russian fuel exports from the Baltic and Black Sea regions are now pricing above a price cap set in February by a G7-led coalition designed to limit Moscow's revenues in the aftermath of its invasion of Ukraine.

EQUATE announced August MEG India contract price

EQUATE announced August MEG India contract price

MOSCOW (MRC) -- Global monoethylene glycol (MEG) producer EQUATE has nominated its August 2023 MEG India Contract Price (ICP) at USD472/tonne CFR (cost & freight) India Main Ports, said the company.

The August nomination was USD17/tonne higher than the July number.

We remind, EQUATE has nominated its June 2023 MEG India Contract Price (ICP) at USD501/tonne CFR (cost & freight) India Main Ports. The June nomination was USD7/tonne lower than the May number.

Texas sues Shell over massive fire at Houston chemical plant

Texas sues Shell over massive fire at Houston chemical plant

MOSCOW (MRC) -- Texas is suing Shell and is seeking more than USD1 million, alleging a fire at the oil giant’s Houston-area petrochemical plant damaged the environment, said WSJ.

The May 5 fire at the plant in the suburb of Deer Park resulted in nine workers being treated at and released from a hospital.

The lawsuit, filed Aug. 7 in Travis County by the Texas attorney general’s office, alleges air and water contamination and violations of state laws at the plant, including those of the Clean Air Act, the Solid Waste Disposal Act and the Water Code.

A Shell spokesperson said the company is aware of the lawsuit but does not comment on pending litigation. “The Deer Park chemicals facility remains in a recovery phase as we continue to investigate the cause of the fire and rebuild the damaged portion of the plant,” spokesperson Natalie Gunnell said.

The lawsuit contends that heavy black smoke contaminated the environment and that millions of gallons of water used to cool the areas and extinguish the flames were later discharged unlawfully into a lake, a stormwater pond and a wastewater treatment facility, making its way into the Houston Ship Channel.

“This is a lawsuit to enforce Texas laws enacted to safeguard the state’s air resources, human health and the environment against pollution and to protect the quality of water in the state,” it said. The fire started during routine maintenance work when oils and gases ignited, Harris County Sheriff Ed Gonzalez said at the time.

We remind, Shell (London) has agreed to pay nearly USD 10 mn (EUR 9.3 mn) for breaking emissions rules at its Monaca polyethylene complex in the US state of Pennsylvania, according to the office of governor Josh Shapiro, which said the resin maker had formally acknowledged the violations.