Solvay and Huatai expand hydrogen peroxide capacity in China to meet growing photovoltaic demand

Solvay and Huatai expand hydrogen peroxide capacity in China to meet growing photovoltaic demand

MRC -- Solvay and Huatai expand hydrogen peroxide capacity in China to meet growing photovoltaic demand. said the company.

Building on its existing partnership with Huatai Chemical, the strategic alliance will enable the site to produce 48 kilotons of photovoltaic-grade hydrogen peroxide annually by 2025. This strategic investment not only reinforces Solvay's worldwide market leadership but also positions it to efficiently meet the rising demand from the photovoltaic industry, further supporting the growth of the renewable energy sector in Northern China.

"In alignment with China’s ambitious carbon neutrality targets, our collaboration positions Solvay as a key contributor. Leveraging cutting-edge technologies and building on our established presence in the high-purity hydrogen peroxide market, this strategic partnership capitalizes on the rapid expansion of China’s photovoltaic market,” said Philippe Kehren, Solvay CEO. “This project highlights our commitment to sustainability and strengthens our capability to secure a more significant share of the thriving Chinese market, further enhancing our well-established industrial presence in the region."

"Our joint venture with Solvay is a testament to our commitment to innovation and sustainability. This expansion is not just about increasing capacity; it's about contributing significantly to China's carbon neutrality goals and the photovoltaic industry's growth. By boosting our site's capability, we are not only meeting the demands of a rapidly evolving market but also reinforcing our position as a key player in the renewable energy sector," said Mr. Wang Yukang, Chairman of the Huatai Chemicals Group.

Since 2010, Solvay and Huatai have been successfully operating a groundbreaking joint venture, which integrates Solvay's state-of-the-art hydrogen peroxide technology. Situated in the Dongying Technical and Economics Development Zone of the Shandong Province, this plant has strategically positioned Solvay at the heart of the dynamic Chinese market, which is recognized as the world's largest for Hydrogen Peroxide.

We remind, Solvay is partnering with transportation providers KIITOSIMEON and ADAMS LOGISTICS to reduce the carbon footprint of its facility in Voikkaa, Finland.

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PRefChem initiates tender for spot propylene batch with end-of-January shipment

PRefChem initiates tender for spot propylene batch with end-of-January shipment

MRC -- Pengerang Refining and Petrochemical (PRefChem), a collaborative venture between Malaysia's major petrochemical entity Petronas and the state-owned Saudi oil company Saudi Aramco, recently announced a tender on January 19, said Chemanalyst.

The tender is for the sale of a spot shipment of propylene with the intention of swift shipment scheduled for the conclusion of January. Specifically, the batch, totalling 5 thousand tons, is slated to be shipped from PRefChem's facility in Pengerang, located in Johor, Malaysia, on January 28-30.

The application period for this tender extended until January 22, at which point it concluded, indicating a swift turnaround in the procurement process. This development comes against the backdrop of a previous report that highlighted PRefChem's temporary production halt at the cracking unit in Pengerang on November 17. The shutdown was attributed to a technical breakdown, impacting the facility's capacity, which stands at 1.2 million tonnes of ethylene and 609 thousand tonnes of propylene annually. The cracker, essential for the petrochemical production process, was anticipated to remain non-operational for approximately one week to address and rectify the technical issues.

Pengerang Refining and Petrochemical (PRefChem) stands as a strategic alliance between two prominent national oil companies, namely Malaysia's state-owned Petroliam Nasional Berhad (Petronas) and Saudi Arabia's state-owned Saudi Aramco. The collaborative efforts manifest through equal interests in two joint ventures, initially named Pengerang Refining Company Sdn. Bhd. (formerly PRPC Refinery & Cracker Sdn Bhd) and Pengerang Petrochemical Company Sdn. Bhd. (formerly PRPC Polymers Sdn Bhd).

The joint venture's recent issuance of a tender for a spot shipment of propylene reveals a strategic move to manage and optimize their inventory amidst the evolving dynamics of the petrochemical industry. The rapid shipment schedule at the end of January indicates a proactive approach to market demands, potentially addressing the effects of the temporary production halt and ensuring a smooth continuity of supply.

As the application window for the tender closed on January 22, the company awaits responses from potential bidders, and the subsequent steps will involve the evaluation of proposals and the selection of a buyer for the specified propylene batch.

PRefChem's tender announcement underscores the agile nature of the petrochemical industry, where companies must navigate unexpected disruptions such as technical breakdowns and swiftly adapt to market conditions. The collaborative efforts of Petronas and Saudi Aramco in PRefChem exemplify the strategic partnerships that play a crucial role in the global energy landscape, leveraging synergies and expertise for sustainable growth and resilience in the face of challenges. Stakeholders will closely monitor developments in the aftermath of the tender announcement to gauge the impact on regional and global propylene markets and assess how PRefChem's strategies align with broader industry trends.

We remind, Hebei Haiwei Group, one of China's prominent petrochemical producers, implemented a temporary shutdown of propylene production at its propane dehydrogenation plant in Hebei Province, China, starting on January 13. This decision was made in order to facilitate scheduled maintenance activities at the facility. The duration of the closure, impacting the propane dehydrogenation unit with an annual production capacity of 500 thousand tons of propylene, remains unspecified at this time.

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US propylene market surges during January amidst PDH outage

US propylene market surges during January amidst PDH outage

MRC -- The US Propylene market experienced a turbulent January 2024, marked by relentless price hikes fueled by a confluence of factors, said Chemanalyst.

The trend, already bullish throughout December, gained further momentum due to a combination of limited supply and surging demand. While a scheduled maintenance shutdown at Enterprise Products Partners' Mont Belvieu plant contributed to the tight supply, the adverse effect was the December 4th outage of their newest 750,000 mt/year PDH unit. This unexpected event, triggered by an operational issue, sent shockwaves through the Propylene landscape. The sudden removal of a major production artery from the equation drastically reduced readily available Propylene, sending scarcity levels soaring.

As per the recent assessment, the Propylene market in the USA keeps on rising with a hike of 10% at the beginning of January 2024 due to supply constraints. Therefore, Propylene Polymer Grade DEL US Gulf assessed at 1090 USD/tonne with a surge of 100 USD during the third week of January 2024. This bullish trend was attributed to an outage of the PDH plant in Texas whose immediate impact was a tightening of supply with a major production artery suddenly out of commission, and readily available propylene dwindling.

Adding fuel to the fire, US Propane and Propylene inventories dipped below more than 90 million barrels for the first time in three months, according to data from the US Energy Information Administration. This declining stockpile further exacerbated the scarcity, creating a perfect storm for price hikes. The affected PDH units have hampered the production of Propylene, leading to a decrease in the overall supply. The magnitude of the impact depends on the duration of an outage which keeps on affecting the margins. As supply falls, the price of the product has skyrocketed during this timeframe. This reflects the increased demand for the limited available product, which is a vital feedstock for many downstream industries, especially Polypropylene production. A shortage of the product can lead to production slowdowns or shutdowns in these industries, impacting sectors like packaging, textiles, and automotive components. The spot export US Polypropylene market, heavily reliant on readily available Propylene and the tightened conditions, slowed movement, and skyrocketing prices became the new reality. This domino effect also intensified inflationary pressures across the industry, as cost burdens stemming from increased supplier prices for metals and plastics, coupled with higher transportation charges, cascaded down the chain.

As per ChemAnalyst, the price of Propylene in the US market is expected to sustain its uptrend throughout January 2024. While the immediate shock of the Enterprise outage may have subsided, its long-term effects continue to ripple through the Propylene landscape. The spot exports US Propylene market, though recovering from the initial shock, still grapples with the consequences of the disrupted supply chain. The unexpected outage, coupled with pre-existing scarcity and inflationary pressures, created a complex landscape with a bullish future.

We remind, Pengerang Refining and Petrochemical (PRefChem), a collaborative venture between Malaysia's major petrochemical entity Petronas and the state-owned Saudi oil company Saudi Aramco, recently announced a tender on January 19. The tender is for the sale of a spot shipment of propylene with the intention of swift shipment scheduled for the conclusion of January. Specifically, the batch, totalling 5 thousand tons, is slated to be shipped from PRefChem's facility in Pengerang, located in Johor, Malaysia, on January 28-30.

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China records 2.8% rise in plastic products production for December

China records 2.8% rise in plastic products production for December

MRC -- In December 2023, China witnessed a notable upswing in the production of plastic products, reaching approximately 6.98 million tons, said Chemanalyst.

This marked a 2.8% year-on-year increase and a 4.2% month-on-month growth. Reflecting on the entire year of 2023, the cumulative production of plastic products amounted to 74.89 million tons, showcasing a substantial 3.0% rise compared to the previous year.

The surge in output throughout 2023 marked a noteworthy rebound from the downturn experienced in 2022. The decline in production in the preceding year was attributed to the impact of COVID-related restrictions. However, as China progressively eased these restrictions in 2023, the plastic products industry experienced a resurgence, contributing to the positive growth observed throughout the year. It's worth noting that while the overall production increased, the year-on-year growth rate did exhibit a slowing trend.

The term "plastic products" in this context encompasses a diverse range of items manufactured through various processes such as extrusion, injection molding, blow molding, lamination, and more. These products are crafted using polymer compounds as the primary raw material. Additionally, the category includes items produced through the recycling of plastic. Notably, plastic shoes are excluded from this classification.

The revival in plastic products production aligns with broader economic trends, reflecting the resilience and adaptability of China's manufacturing sector. As the nation navigated the challenges posed by the global pandemic, the easing of restrictions and a renewed focus on industrial activities contributed to the recovery of plastic products manufacturing. The year-on-year growth, although moderated, signifies a positive trajectory for the industry.

Shifting focus to the international landscape, there is a pertinent mention of Russia's chemical product exports in the period from January to November 2023. According to data published by the Federal Customs Service (FCS), the export value of Russian chemical products during this period amounted to USD 24.9 billion. This figure represents a 34% decrease compared to the corresponding period in 2022 when the export value stood at USD 37.8 billion. The substantial decline in chemical product exports indicates a challenging period for Russia's chemical industry, possibly influenced by global economic dynamics and geopolitical factors.

In contrast, imports of chemical products during the same eleven-month period experienced a relatively modest decline of 1.2% compared to 2022, reaching a total of USD 51 billion. This data suggests a more resilient demand for chemical products in the importing nations, thereby contributing to a comparatively smaller contraction in import values.

We remind, Wayne, Pennsylvania-based TekniPlex Healthcare has joined forces with Alpek Polyester to introduce a groundbreaking pharmaceutical-grade polyethylene terephthalate (PET) blister film, incorporating 30 percent postconsumer recycled (PCR) monomers. This innovative collaboration aims to provide pharmaceutical companies with a fully recyclable blister pack option that aligns with stringent quality standards for product protection and consumer safety, while also contributing to environmental sustainability.

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Hebei Haiwei suspends propylene production in China

Hebei Haiwei suspends propylene production in China

MRC -- Hebei Haiwei Group, one of China's prominent petrochemical producers, implemented a temporary shutdown of propylene production at its propane dehydrogenation plant in Hebei Province, China, starting on January 13, said Chemanalyst.

This decision was made in order to facilitate scheduled maintenance activities at the facility. The duration of the closure, impacting the propane dehydrogenation unit with an annual production capacity of 500 thousand tons of propylene, remains unspecified at this time.

The propane dehydrogenation plant, a vital component of Hebei Haiwei's operations, plays a crucial role in the production of propylene, a key building block in the petrochemical industry. Propylene is widely utilized in the manufacturing of various products, including plastics, resins, and synthetic fibers. The suspension of production underscores the importance of proactive maintenance measures to ensure the reliability and efficiency of the plant's operations.

This is not the first instance of operational adjustments for Hebei Haiwei Group in recent times. Earlier reports indicated that on April 10, the company resumed polypropylene (PP) production at its facility in Hebei Province after completing unscheduled repairs. The PP production facility, with an annual capacity of 300 thousand tons, had undergone maintenance activities starting from February 15 of the same year. Polypropylene, a versatile polymer with numerous applications, is a key product in Hebei Haiwei's portfolio.

The ongoing commitment of Hebei Haiwei Group to maintenance practices highlights its dedication to ensuring the operational integrity and efficiency of its facilities. Scheduled maintenance plays a crucial role in sustaining the longevity of industrial assets and preventing unexpected disruptions in production. The temporary halt in propylene production aligns with industry best practices, emphasizing the proactive approach adopted by Hebei Haiwei to maintain the reliability of its propane dehydrogenation plant.

As a major petrochemical producer in China, Hebei Haiwei Group's operational dynamics are closely monitored within the industry. The temporary shutdown for maintenance underscores the intricate balance between meeting production demands and ensuring the long-term sustainability of industrial assets. The duration of the closure remains a point of interest, and industry stakeholders will be keenly observing updates from Hebei Haiwei Group regarding the resumption of propylene production.

Hebei Haiwei Group's decision to temporarily shut down propylene production for scheduled maintenance reflects the company's commitment to operational excellence and asset integrity. The propane dehydrogenation plant's role in producing propylene, a fundamental component in the petrochemical industry, underscores the significance of proactive maintenance measures. Hebei Haiwei Group's strategic approach to managing its facilities contributes to the resilience and efficiency of China's petrochemical sector, reinforcing its position as a key player in the country's industrial landscape. As the industry awaits further details on the duration of the closure, the incident serves as a reminder of the delicate balance between production demands and the imperative of sustaining long-term operational reliability.

We remind, Pengerang Refining and Petrochemical (PRefChem), a collaborative venture between Malaysia's major petrochemical entity Petronas and the state-owned Saudi oil company Saudi Aramco, recently announced a tender on January 19. The tender is for the sale of a spot shipment of propylene with the intention of swift shipment scheduled for the conclusion of January. Specifically, the batch, totalling 5 thousand tons, is slated to be shipped from PRefChem's facility in Pengerang, located in Johor, Malaysia, on January 28-30.

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