Ineos Styrolution Boosts ABS Prices in the US for March

In March, Ineos Styrolution, a subsidiary of the prominent European petrochemical producer Ineos, has made a notable decision to increase the prices of its Acrylonitrile Butadiene Styrene (ABS) products in the United States, said Chemanalyst.

The impetus behind this price adjustment stems from the escalating costs associated with the production and delivery of materials, a circumstance communicated to customers through an official letter from the manufacturer.

Specifically, Ineos Styrolution has outlined plans to implement an 8-cent per pound price hike for its Terluran ABS, Lustran Standard ABS, and Novodur ABS brand products in the U.S. market. This strategic move reflects the company's response to the dynamic economic landscape and the challenges posed by the fluctuating costs associated with the manufacturing and transportation of materials essential to ABS production.

A noteworthy development in Ineos Styrolution's global operations was previously reported, highlighting the initiation of acrylonitrile butadiene styrene (ABS) production in Ningbo, China. This significant venture represents a collaborative effort between Ineos Styrolution and the esteemed Chinese company Sinopec. The newly established plant in Ningbo boasts a nominal capacity of 600 thousand tons per year, underscoring the strategic importance of the Chinese market in the global petrochemical landscape.

The inception of Ineos Styrolution itself can be traced back to October 2011 when it was founded as Styrolution by two major players in the industry, BASF and Ineos. At its establishment, both companies held equal shares in this joint venture, leveraging their collective expertise in the production of styrene monomer, polystyrene, and various styrene-based products. However, in June 2014, Ineos executed a pivotal move by acquiring BASF's 50% stake in Styrolution, marking a significant shift in ownership dynamics. The transaction, valued at EUR 1.1 billion, culminated in Ineos becoming the sole proprietor of Styrolution. This strategic acquisition aligned with the terms of a shareholders' agreement forged in 2011, delineating the trajectory of ownership evolution.

In the global landscape, the initiation of ABS production in Ningbo, China, stands as a testament to Ineos Styrolution's strategic expansion into key markets. The joint project with Sinopec signifies collaborative efforts to meet the growing demand for ABS products in China, leveraging the strengths and resources of both entities. The substantial nominal capacity of the Ningbo plant positions it as a crucial asset in Ineos Styrolution's global production network.

As Ineos Styrolution navigates the complexities of the petrochemical industry, from strategic acquisitions to global expansions and price adjustments, its resilience and adaptability remain at the forefront. The ABS price increase in the U.S. underscores the company's commitment to maintaining a sustainable and competitive presence in the market. The ongoing evolution of Ineos Styrolution's operations will undoubtedly continue to shape its trajectory within the petrochemical landscape.

We remind, Ineos Inovyn, the chlorvinyls arm of UK-based chemical company Ineos, has announced that its PVC production operations in Jemeppe, Belgium, will be partly powered by solar energy starting this summer, said the company. The Jemeppe site is one of the largest PVC production facilities in Europe, with 420,000 tonnes supplied to sectors such as building, automotive, and piping every year.

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Geneva-based trading house Montfort Group is in discussion to sell part or all of its refining facility in the United Arab Emirates to the fuel oil arm of Chinese state giant Sinopec Corp, at least five industry sources told Reuters.

If reached, a deal would give Sinopec, the world's biggest refiner by capacity, a stronger foothold in the UAE's Fujairah market, which it entered last year amid plans to expand its global presence in the marine fuel market.

Sinopec is considering investment in the refining facility as it seeks to expand its sales at the world's third-largest bunker fuel hub, the sources added. Sinopec did not respond to a request for comment.

A Montfort spokesperson said the company and its partner in the refinery, Sheikh Ahmed Dalmook Al Maktoum, "remain fully committed" to the business.

"Of course, if we are approached by parties who wish to be involved in our refinery business, we are always willing to discuss such opportunities if we believe that it would enhance and grow our business," the spokesperson said.

Located in the port of Fujairah, the facility can process 65,000 barrels per day of crude, with capacity to sell over 30 million barrels of low-sulfur fuel oil to the shipping industry annually, according to Montfort.

Montfort acquired the crude oil processing and marine fuel trading business last year from Germany's Uniper Energy in a deal valued around $80 million. Montfort holds a Fujairah bunker supplier license under Montfort Trading FZE.

Sinopec opened an office in Dubai last year for marine fuel trading in Fujairah, though it does not have a bunker license there.

Sinopec Fuel Oil, the biggest marine bunker supplier at Chinese bunker hub Zhoushan, became the third-largest marine fuel supplier at the world's top bunker hub Singapore in 2023, while expanding its storage capacity in Asia.

The Chinese company has been looking to expand globally as slowing economic growth and rapid adoption of electric vehicles in the world's top auto market dents domestic demand.

We remind, Sinopec Corp announced on Tuesday that it has encountered substantial oil and gas flows in a pivotal exploration shale well located in southwest China. The Xingye-9 well, situated in the Liangping area of Chongqing municipality, is positioned within the gas-rich Sichuan basin. Sinopec has revealed that the well exhibited a daily production of 108.15 cubic meters of oil and 15,800 cubic meters of gas during its testing phase.

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Since early January 2024, U.S. refinery utilization has decreased 11%, falling as low as 81% during the two weeks ending February 9 and February 16, and briefly dropped below the five-year (2019–23) low, said Hydrocarbonprocessing.

Although U.S. retail average prices for gasoline and diesel are below 2023 prices for this time of year, decreasing regional inventories for the major U.S. refining regions increased retail prices for both fuels last month, according to our Gasoline and Diesel Fuel Update.

The sharp decline in refinery utilization is the result of reduced plant operations in both the Midwest and Gulf Coast regions and more intense seasonal patterns. The decline is also affecting inventories.

The U.S. Gulf Coast (PADD 3), the area with the largest drop in refinery utilization, has been the primary source of overall reduced U.S. refinery runs. Since the first week of January, U.S. Gulf Coast four-week average refinery utilization has decreased 14%, falling below 80% for the past two weeks. The reduced refinery runs are likely the result of weather-related issues stemming from cold temperatures, as well as planned maintenance. Weatherization against extreme cold is less common on the Gulf Coast compared with other regions, such as the Midwest, and a lack of winterization can contribute to power outages or damage to instruments, resulting in temporary shutdowns.

The current Gulf Coast refinery maintenance started earlier than normal and has had a larger impact on refinery operations. Trade press indicates maintenance shutdowns are underway at the Motiva Port Arthur and Marathon Galveston Bay refineries, which together account for about 7% of total U.S. capacity, or more than one million barrels per day of processing capacity. Planned refinery maintenance is typically seasonal and generally peaks during late February and March.

In the Midwest (PADD 2), bp’s refinery in Whiting, Indiana, (the largest refinery in the Midwest) was taken offline because of an unplanned outage. This outage is also a major source of reduced utilization nationwide and the driving force behind a 10% drop in Midwest regional refinery utilization since the first week in January.

We remind, Crude oil processing, or refinery runs, in China averaged 14.8 MM bpd in 2023, an all-time high. The record processing came as the economy and refinery capacity grew in China following the country’s COVID-19 pandemic responses in 2022. China has increased refinery capacity more than any other country in recent years, partially to meet the country’s transportation fuel needs but also to produce feedstocks for its petrochemical industry.

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South Korea's SK Chemicals Co. is targeting the US medical packaging market with its circular recycling materials, said Kedglobal.

Circular recycling is SK Chemicals' unique chemical recycling technology that involves turning discarded plastic into raw materials through depolymerization and then manufacturing recycled plastic using these materials.

SK Chemicals announced on Thursday that it will participate in the Medical Design & Manufacturing West (MD&M) 2024, a medical equipment and manufacturing exhibition held in Anaheim, California, from Feb. 6 to 8. MD&M is one of the major exhibitions in the US medical device and manufacturing industry.

At this exhibition, SK Chemicals will showcase not only copolyester, which has been applied to packaging used in medical settings such as mask shields and medical equipment storage containers but also materials with circular recycling technology, such as SKYPET CR and ECOTRIA CR.

In particular, the company aims to respond to the increasing demand for recycled plastics in the medical device industry by strengthening collaboration with Pacur LLC, a US medical packaging company. In the future, SK Chemicals and Pacur plan to develop products based on recycled materials such as SKYPET and ECOTRIA series.

"Pacur is a leading company in the US medical packaging sector, and this collaboration will be a cornerstone for enhancing sustainability in the medical packaging market," said Kim Eung Soo, Head of Green Materials Business at SK Chemicals.

"We will make more efforts to expand the supply of recycled materials in the market," he added.

We remind, South Korea's SK Chemicals Co. unveils recycled plastic LP records. The company announced on Thursday it has jointly developed the EcoRecord, an LP record made from 100% recycled plastic with Germany-based global music production company Sonopress.

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Crude oil processing, or refinery runs, in China averaged 14.8 MM bpd in 2023, an all-time high. The record processing came as the economy and refinery capacity grew in China following the country’s COVID-19 pandemic responses in 2022, said Hydrocarbonprocessing.

China has increased refinery capacity more than any other country in recent years, partially to meet the country’s transportation fuel needs but also to produce feedstocks for its petrochemical industry. Petrochemicals are the essential building blocks to produce plastics, resins, and fibers widely used in consumer goods, packaging, and textiles. In recent years, capacity additions in China have been integrated with petrochemical facilities, increasing production of petrochemical feedstocks such as naphtha and liquefied petroleum gases (LPG), which include propane and butane.

Naphtha is a light hydrocarbon that is further processed to blend into motor gasoline in essentially all U.S. refineries. Much of the petrochemical feedstock for U.S. petrochemical producers comes from ethane and LPG, which can be separated and sold from natural gas processing plants.

In contrast, many petrochemical producers in Europe and Asia use mostly naphtha (rather than ethane) and LPG as petrochemical feedstocks. Naphtha, LPG, and ethane are used to produce industrial chemicals such as ethylene, propylene, and paraxylene, which are ultimately converted into intermediate or end-use products. Developing integrated refining and petrochemical complexes provides flexibility for these facilities to shift production toward either transportation fuels or petrochemical feedstocks, depending on market conditions.

China’s growing petrochemical sector has made the country one of the world’s largest petrochemical producers. As a result, China’s petrochemical manufacturers need the increased naphtha and LPG produced from China’s refineries, even as China continues to import the two feedstocks.

We remind, Lotte Chemical Corp. announced that it has established artificial intelligence (AI) organizations tailored to the characteristics of its basic materials and advanced materials businesses to strengthen data-based research.

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