Styrene monomer prices gain in Asia

On Wednesday, SM prices quoted higher in Asia, said Polymerupdate.

An industry source in Asia informed a Polymerupdate team member, "Prices were assessed higher amid healthy market sentiments in the Asian region."

On Wednesday, FOB Korea SM prices were assessed at the USD 1030-1040/mt levels, an increase of USD (+15/mt) from Tuesday's assessed levels.

CFR China SM prices on Wednesday were assessed at the USD 1040-1050/mt levels, a day on day rise of USD (+10/mt).

We remind, upstream benzene prices on Tuesday were assessed at the USD 885-895/mt FOB Korea levels, down USD (-5/mt) from Monday.

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Sinopec Shanghai Petrochemical Company said on Tuesday it will upgrade its operations by investing 21.31 billion yuan (USD2.91 bn), as per Reuters.

To maintain its capacity in crude oil processing and make other operational upgrades, the company will shut down existing 18 sets of oil refining devices and install new ones, it said.

The new installations will have a capacity to refine 1.20 million tons of ethylene per year, it added.

The company expects to complete the construction of the main project in a span of three years, subject to approval of its shareholders.

Sinopec Shanghai Petrochemical said the project will improve the variety and production capacity of its new material products and increase the production of raw materials.

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The United States has added Russian and Chinese companies to the Specially Designated Nationals and Blocked Persons (SDN) List that have participated in sanctions evasion schemes to render payments for goods, the U.S. Treasury Department's Office of Foreign Assets Control, which is responsible for sanctions enforcement, said in a press release on Wednesday, as per Interfax.

Russia and China are working to create regional clearing platforms (RCPs) in both countries to act as counterparties for cross-border payments and to facilitate non-cash settlements to pay for sanctioned goods, the U.S. Treasury Department confirms.

The department said that the sanctions evasion schemes involve major banks already on the SDN List, namely Sberbank , Alfa-Bank, Sovcombank , T-Bank , and Tochka Bank; as well as other Russian companies that were not previously subject to sanctions, namely Herbarium Office Management LLC (Herbarium), JSC Atlant Torg, Sigma Partners LLC, JSC Transactions and Settlements, Arcturus JSC, and Paylink Limited.

Herbarium was registered in February 2005. Evrofinance Mosnarbank owns 99.99% of Herbarium through its MNK-Invest LLC subsidiary, data in the Unified State Registry of Legal Entities (USRLE) indicate. Evrofinance Mosnarbank was added to the SDN List in the spring of 2019. Sanctions were also imposed against Herbarium CEO Andrei Prikhodko on Wednesday.

Other Russian companies added to the U.S. sanctions list were registered rather recently, namely Arcturus was established in August 2022, and Sigma Partners in July 2023. The remaining companies on the list were registered later, namely Atlant Torg in January last year, Transactions and Settlements in May 2024, and Paylink Limited in October 2024.

The China-based RCPs involved in the scheme include Anhui Hongsheng International Trade Co Ltd, Qingyuan Fo Feng Leda Supply Chain Service Co Ltd, Heilongjiang Shunsheng Economic And Trade Development Co Ltd, Qingdao Hezhi Business Service Co Ltd, Xinjiang Financial Import And Export Co Ltd, Hangzhou Xianghe Trading Co Ltd, Shaanxi Hongrun Jinhua Trading Co Ltd, Fujian Xinfuwang International Trade Co Ltd, and Jilin Province Shunda Trading Company Ltd.

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The leasing company that Avtovaz and Promsvyazbank (PSB) set up at the beginning of this year, Eurasia Auto Finance will enable Russia's leading carmaker to increase sales of commercial vehicles, for which it is preparing to launch a new brand, Avtovaz president Maxim Sokolov said, as per Interfax.

"In the period immediately after the New Year holidays, before the old New Year [January 14], a company was registered that will support our sales. This is a leasing company where Avtovaz is actively participating as a shareholder, together with our partner Promsvyazbank and our captive Auto Finance Bank - it is they who own shares in JSC LC Eurasia Auto Finance," Sokolov said at Avtovaz's annual press conference on Wednesday.

LC Eurasia Auto Finance was registered in Moscow on January 10 with charter capital of 125 million rubles, the Unified State Register of Legal Entities showed. The founders are not disclosed in the register.

"This company, even with today's high key rate, will enable our clients to use more flexible financial instruments. And I'm confident that sales of our commercial automobiles will increase significantly in 2025, in part thanks to the use of new leasing mechanisms," Sokolov said.

After the press conference, Sokolov also told reporters that Avtovaz is working on creating a new commercial vehicle brand under which it will sell its own existing commercial vehicles, such as the Lada Largus, and vehicles that might be developed with foreign partners.

"We'll see when we will already present the brand, if it comes to this, what model range to include in it. It's still premature to talk about this now. Work is underway, this work is in the final stage. The horizon is 2026," Sokolov said. Avtovaz sees growing demand for commercial vehicles in Russia, he said.

"The segment is underutilized, which is why a special effort was made to launch the Largus as a successful product in Avtovaz's line. We invested in the development of our subsidiary VIS-Avto, which is located in Togliatti, but not within the perimeter of the main plant, next to it, to develop its product line, which is now produced at the plant on the base of the Lada Granta and Lada Niva, and to increase production," Sokolov said.

"During the New Year holidays, painting operations were fully launched, and this indicates that a complete cycle model can essentially be used there. In other words, we will no longer ship vehicle kits there, but just bodies. And our colleagues will paint them, and fully assemble into new automobiles. And it is this plant that will be geared exclusively toward commercial vehicles. And it will be possible to develop this line there. This is how it's going to be - it's a matter of 2025-2026," Sokolov said.

Asked about the size of the vehicles Avtovaz wants to produce under the new brand, he said a final decision has not been made yet, but it will not be heavy duty vehicles. "The core is the line that we have now. And it might be expanded with a separately operating enterprise and cooperation on the product line with our partners," Sokolov said.

He did not name Avtovaz's possible partner in the project. "We are working with many of our partners, both in the country and abroad," he said.

"Regarding partners in the country, I primarily mean engineering teams. You've probably seen that our engineering center in St. Petersburg, which works with many engineering companies and design centers, is fully up and running. We have a contract with the St. Petersburg Stieglitz State Academy of Art and Design regarding industrial design," Sokolov said.

"And developing not just the product line, but also variations of brands, is also one area of our company's marketing. Particularly since we see the successful example of the Chinese market, where brand variety rules. We're following these trends, so we're exploring the issue of launching another separate brand that will, among other things, characterize our line of commercial vehicles," Sokolov said.

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CNOOC and Shell Petrochemicals Company Limited (CSPC), a joint venture between Shell Nanhai B.V. and CNOOC Petrochemicals Investment Ltd, has taken a final investment decision to expand its petrochemical complex in Daya Bay, Huizhou, south China, as per Hydrocarbonprocessing.

The expansion will include a third ethylene cracker with a planned capacity of 1.6 million tons per year of ethylene, a key building block to make plastics, and associated downstream derivatives units producing chemicals including linear alpha olefins.

This investment also includes a new facility which will produce 320,000 tons per year of high-performance specialty chemicals, such as polycarbonates and carbonate solvents, critical for everyday life.

Linear alpha olefins are used to produce detergent alcohol and synthetic lubricants base oil. Polycarbonates make impact-resistant plastics that can replace carbon-intensive steel, whilst carbonate solvents are used in lithium-ion batteries and are essential for the electric vehicles sector as well as energy storage.

The new facilities, primarily aimed at meeting domestic demand in China, will produce a range of chemicals that are widely used in the agriculture, industrial, construction, healthcare and consumer goods sectors.

This investment will contribute to CSPC’s competitiveness by extending its value chains, drive further integration with the existing site, and enable greater innovation capability to meet customer demand in the fast-growing Chinese market.

“For more than two decades, CSPC has provided high value products to the market, becoming one of the largest petrochemical joint ventures in China.” said Huibert Vigeveno, Shell’s Downstream, Renewables and Energy Solutions Director.

“This new investment is a key enabler to realize CSPC’s transformation strategy towards more premium and highly differentiated chemical products. It is consistent with Shell Chemicals & Products strategy to pursue targeted growth at advantaged locations. It also demonstrates our strong partnership with CNOOC.”

The expansion is expected to be completed in 2028.

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