Price of styrene rose again in Europe

In March 2024, the price of styrene rose again sharply - the base contract jumped by EUR222 per tonne - leading to further increases in the prices of polystyrene, expanded polystyrene and ABS, said Kunststoffweb.

For polystyrene, price increases were often at or just below the full monomer increase, while for EPS the increases were only slightly lower. ABS prices also rose sharply as suppliers typically demanded that composites costs, which increased by around EUR150/t, be fully included in the price and sometimes - especially for extrusion materials - a little more.

Already weak demand has fallen further due to sharp increases in prices. Processors are trying to ride out the current boom by not ordering more product than is absolutely necessary. They will probably have to wait until at least April. At the beginning of the second quarter, the price of SM increased again, although “only” by EUR44/tonne. Processors are now hoping for an improvement in the situation in May.

We remind, SIBUR is considering the possibility of implementing a polystyrene production project with capacity of 250,000 tonnes per year with completion of construction no later than 2028. Earlier, the company's executive director Alexander Petrov said that several options are being considered for processing ethylene produced at the EP-600 complex under construction at Nizhnekamskneftekhim , including production of styrene and polystyrene.

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INVISTA, an industry leader in the nylon 6,6 and polypropylene value chains, today announced its intent to explore strategic alternatives for its nylon fibers business, said the company.

This includes INVISTA’s fiber-focused portfolio: airbag and industrial fibers, the CORDURA® businesses, and five supporting global manufacturing locations: Seaford, Delaware; Martinsville, Virginia; Kingston, Ontario, Canada; Gloucester, UK; and Qingpu, China.

“Consistent with our Principle Based Management™ business philosophy, INVISTA continuously assesses the external value of assets to make sure they are owned by the company best positioned to grow the business,” said Francis Murphy, INVISTA President and CEO. “Nylon fibers is a great business, and we believe there are other companies with different focus and capabilities that could create even greater value with those assets. If, however, through this process, we find that other companies don’t value it more highly, we’ll continue to operate the business.”

Regardless of a potential transaction to divest its nylon fibers business, INVISTA will continue supplying its global nylon and propylene value chain customers with intermediates, polymers and specialty chemicals. If INVISTA were to proceed, it would also result in a simplification and strengthened focus on its long-term competitive positions in the upstream nylon and propylene value chain businesses.

The nylon fiber assets are a major part of the current INVISTA footprint, and it would be premature to speculate on the final structure of a potential deal. Details of the business and exploration process are confidential. INVISTA has engaged Barclays as Exclusive Financial Advisor during this exploration process.

We remind, INVISTA’s site in Victoria, Texas, has achieved Gold Certified Wildlife Habitat Council Conservation Certification® for its commitment to environmental stewardship and conservation efforts. Wildlife Habitat Council (WHC) promotes and certifies habitat conservation and management on corporate lands through partnerships and education.

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Russia's Orsk oil refinery, which has halted output after widespread floods, declared force majeure on fuel supplies from April 8, according to Hydrocarbonprocessing.

Russia's oil refineries were already struggling with Ukrainian drone attacks and technical outages, forcing the country to ban gasoline exports, with some exceptions, for half a year from March 1.

Forteinvest said the plant had been shut to avoid ecological risks and ensure labor safety. Last year the refinery processed 4.5 MMt of oil.

Floods engulfed cities and towns across Russia and Kazakhstan on Wednesday after Europe's third-longest river burst its banks, forcing about 110,000 people to evacuate and swamping parts of the Russian city of Orenburg.

Upstream on the Ural, which flows into Kazakhstan, floodwaters burst through an embankment dam in the city of Orsk on Friday.

Russia's energy ministry played down the force majeure, saying it was not consequential for the market, RIA news agency reported, as most of the Orsk refinery units had already been shut for planned maintenance before the floods.

It said just 0.1% of the planned motor fuel production for April in Russia would be affected.

Forteinvest said in emailed comments separately that the Orsk refinery was still dispatching fuel from its stockpiles "for the needs of the region".

"Forteinvest company does not forfeit its obligations but warns that the timing of product shipments may be delayed," it said.

We remind, Russian oil producer Lukoil expects its damaged CDU-6 primary unit and catalytic cracker at the NORSI oil refinery to return to operations in the second quarter following seasonal maintenance, a company source said on Wednesday. The source also said that the damaged CDU-5 unit at the Volgograd refinery was put back into work on Feb. 21 and was now working in line with its designed capacity.

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The Association of American Railroads (AAR) today reported U.S. rail traffic for the week ending April 6, 2024, said AAR.

For this week, total U.S. weekly rail traffic was 450,142 carloads and intermodal units, up 1.6 percent compared with the same week last year.

Total carloads for the week ending April 6 were 209,142 carloads, down 4.5 percent compared with the same week in 2023, while U.S. weekly intermodal volume was 241,000 containers and trailers, up 7.6 percent compared to 2023.

Six of the 10 carload commodity groups posted an increase compared with the same week in 2023. They included grain, up 3,221 carloads, to 22,000; motor vehicles and parts, up 1,983 carloads, to 16,315; and chemicals, up 1,574 carloads, to 31,907. Commodity groups that posted decreases compared with the same week in 2023 included coal, down 15,107 carloads, to 46,688; nonmetallic minerals, down 2,078 carloads, to 29,540; and metallic ores and metals, down 848 carloads, to 19,403.

For the first 14 weeks of 2024, U.S. railroads reported cumulative volume of 2,982,969 carloads, down 4.2 percent from the same point last year; and 3,509,647 intermodal units, up 9.0 percent from last year. Total combined U.S. traffic for the first 14 weeks of 2024 was 6,492,616 carloads and intermodal units, an increase of 2.5 percent compared to last year.

North American rail volume for the week ending April 6, 2024, on 10 reporting U.S., Canadian and Mexican railroads totaled 321,182 carloads, down 1.3 percent compared with the same week last year, and 326,417 intermodal units, up 11.2 percent compared with last year. Total combined weekly rail traffic in North America was 647,599 carloads and intermodal units, up 4.6 percent. North American rail volume for the first 14 weeks of 2024 was 9,127,511 carloads and intermodal units, up 2.2 percent compared with 2023.

We remind, U.S. railroads originated 866,865 carloads in March 2024, down 3.5 percent, or 31,101 carloads, from March 2023. U.S. railroads also originated 1,022,321 containers and trailers in March 2024, up 11.7 percent, or 106,903 units, from the same month last year. Combined U.S. carload and intermodal originations in March 2024 were 1,889,186, up 4.2 percent, or 75,802 carloads and intermodal units from March 2023.

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Russian oil producer Lukoil expects its damaged CDU-6 primary unit and catalytic cracker at the NORSI oil refinery to return to operations in the second quarter following seasonal maintenance, said Hydrocarbonprocessing.

The source also said that the damaged CDU-5 unit at the Volgograd refinery was put back into work on Feb. 21 and was now working in line with its designed capacity.

Lukoil did not immediately reply to a request for comment.

The Volgograd oil refinery, the largest in southern Russia, was attacked by a drone in early February.

The NORSI oil refinery suffered technical outages in January and was subjected to a drone attack in March. NORSI refines about 15.8 million tons of crude a year, or 5.8% of Russia's total refined crude.

Russia and Ukraine have both used drones to strike critical infrastructure, military installations and troop concentrations in their more than two-year conflict, with Kyiv hitting Russian refineries and energy facilities in recent months.

We remind, Lukoil has acquired a 50% stake in Kalamkas-Khazar Operating LLP (KKO) for $200 million, according to the 2023 financial report of Kazakhstan's National Company KazMunayGas (KMG). On February 9, 2023, KMG and Lukoil PJSC signed a purchase and sale agreement for a 50% share of KKO, a subsidiary of KMG, the holder of a contract for the production of hydrocarbons at the Kalamkas-Sea, Khazar and Auezov subsoil blocks located in the Kazakh sector of the Caspian Sea, according to the report.

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