Asian Markets
October 12, 2023
Shell Fire at Singapore POSM Plant
Shell’s Singapore Petrochemical Unit Puts Out Fire; Styrene Impact Likely — OPIS Update
Provided by Dow Jones
Oct 11, 2023 9:39 AM EDT
Singapore’s Shell Jurong Island (SJI) has extinguished a fire that broke out at one of its petrochemical unit manufacturing site on Jurong Island, according to market sources.
The fire occurred at around 3:00 hours Singapore time on Oct.10 and was extinguished with no reported casualties, according to the source.
Market sources said that the fire would most likely impact Shell’s styrene monomer (SM) production.
“The specific impact of the styrene plant is still being evaluated by Shell. We will have to wait and see how serious the damages are,” said a China-based SM broker.
A Shell spokesperson confirmed the incident and said no injuries were reported.
“Our emergency response team is currently monitoring the situation closely. Safety is a key priority to Shell,” the spokesperson said.
At its site, SJI can produce a total of 1,040 million metric ton (mt) per year of SM and 490,000 mt/year propylene oxide (PO) between its two POSM lines, according to its website.
Operations at Shell’s cracker on the same site do not appear to have been disrupted, sources said.
“Besides PO and SM, there should be no disruption to the other chemical production,” added the SM broker.
This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.
–Reporting by Hazel Kumari, hkumari@opisnet.com; Editing by Hanwei Wu, hwu@opisnet.com
October 10, 2023
Chinese PMDI Import and Export Flows
China PMDI Import & Export in August 2023
PUdaily | Updated: October 5, 2023
PMDI Export
According to China customs data, in August 2023, China’s polymeric MDI exports were 96,700 tons, down 12.8% from the previous month and up 24.6% year-on-year. From January to August 2023, China’s polymeric MDI accumulated exports of 781,500 tons, compared with January to August last year, an increase of 12.2%.
Average export price:
The average export price of polymeric MDI in August was US $1,542/ton, down 32.1% year-on-year, the decline widened.
Table: China’s polymeric MDI export volume and average export price from January to August 2023
From January to August, the United States was the largest export destination of China’s polymeric MDI, and the cumulative PMDI export volume from China to the United States was 184 thousand tons, an increase of 8.4%. In August, PMDI export from China to the United States were 22.5 thousand tons, up 77.3% year-on-year and up 22.6% month-on-month. Secondly, the main destinations of China’s polymeric MDI from January to August are Russia, the Netherlands, Belgium and Turkey.
PMDI Import
According to China customs data, in August 2023, China’s polymeric MDI (including crude MDI) imports of 28.2 thousand tons, down 11.5% month-on-month, an increase of 66.8%. From January to August 2023, China’s aggregate MDI cumulative imports of 199 thousand tons, compared with January to August last year, an increase of 10.9%.
In August, China imported 8,238 tons of polymeric MDI from the Netherlands and 7,004 tons of polymeric MDI from Saudi Arabia. The polymeric MDI and crude MDI imported from Japan was 6,885 tons, and the 200 ktpa MDI facility of Tosoh Japan has shut down for maintenance from early September, so their supply to China market was tight again.
October 5, 2023
Tosoh Plans MDI Splitter in Vietnam
Japan’s Tosoh to build MDI splitter in Vietnam
Published date: 02 October 2023
Japanese petrochemical producer Tosoh plans to build a methylene diphenyl diisocyanate (MDI) splitter in south Vietnam’s Ba Ria–Vung Tau province, targeting to begin commercial operations by October 2026.
Tosoh plans to operate the splitter, which will have manufacturing capacity of 100,000 t/yr of monomeric and polymeric MDIs, using crude MDI as a feedstock. MDI is used as feedstock to produce polyurethane. It aims to start construction from November 2024 and complete the splitter by June 2026.
The company will bring the crude MDI from Japan to the splitter in Vietnam. Tosoh produces 400,000 t/yr of crude MDI at its Nanyo plant in south Japan’s Yamaguchi prefecture.
Tosoh has an 85,000 t/yr splitter in China and another at its Nanyo plant of undisclosed output capacity, although its said annual production is 400,000t. Its MDI production will be unchanged even after the launch of the Vietnamese splitter, as Tosoh plans to modify manufacturing in Japan and China based on demand.
It also plans to set up a wholly-owned subsidiary Tosoh Vietnam Polyurethane by January next year to enhance MDI sales in southeast Asia.
By Nanami Oki
September 28, 2023
HPPO Propylene Oxide Process Issues
Frequent Explosion Accidents: What are the Dangers of Hydrogen Peroxide?
PUdaily | Updated: September 21, 2023
Following the explosion occurred at the hydrogen peroxide production area of Luxi Chemical, a subsidiary of Sinochem Holdings, on May 1, which resulted in 9 deaths, 1 injury, and 1 person missing, another explosion occurred in the hydrogen peroxide workshop at Risun Chemical on September 14. It is the second major hydrogen peroxide accident that has occurred within China in 2023.
Why is hydrogen peroxide so dangerous?
Electrolysis, anthraquinone (AQ), isopropanol oxidation, electrochemical cathode reduction of oxygen, and auto-oxidation (AO) are commonly used in the production of hydrogen peroxide. The AQ method is currently the most mature method, and over 99% of hydrogen peroxide plants in China use this technology. The AQ process for hydrogen peroxide production has a high hazard coefficient. It involves using hazardous raw materials and going through hazardous processes to produce a hazardous product.
The first reaction in the production process of hydrogen peroxide, namely hydrogenation, is a hazardous chemical process that is subject to strict regulation. It has the following hazardous characteristics: (a) The reactants have explosiveness, and the explosion limit of hydrogen gas is 4-75%, making it highly flammable and explosive. (b) Hydrogenation is an exothermic reaction, and when hydrogen gas comes into contact with steel under high temperature and pressure, carbon molecules in the steel can react with hydrogen gas to form hydrocarbons, reducing the strength of the steel equipment and causing hydrogen embrittlement. (c) The regeneration and activation of catalysts can easily cause explosions. (d) The exhaust gas from the hydrogenation reaction contains unreacted hydrogen gas and other impurities, which can easily cause ignition or explosion during discharge. The second reaction in the hydrogen peroxide production – oxidation – is also a hazardous chemical process that is subject to strict regulation. It’s hazardous because that the peroxidation process has a strong risk of decomposition and explosion due to the presence of peroxide groups (-O-O-).
Hydrogen peroxide is currently an important raw material for the production of propylene oxide. The concentration of hydrogen peroxide products in China is mainly 27.5%. However, in recent years, there has been an increasing demand for high concentration products (>50%), as the use of high concentration hydrogen peroxide can effectively improve the production efficiency and product quality. The HPPO process often uses hydrogen peroxide with a concentration of 50% to 70%.
Currently, the key players in China’s HPPO-based propylene oxide industry are Jilin Shenhua and Sinopec Changling. In 2011, Jilin Shenhua introduced HPPO technology from Degussa and Uhde, with an investment of CNY 2.5 billion, and built the first and largest HPPO plant in China with a scheduled capacity of 300 ktpa. The plant started operations in July 2014. In 2013, Sinopec planned to adopt independently developed HPPO technology and invested about CNY 1.28 billion to build a 100 ktpa industrial plant at the company’s Changling Branch. The plant was completed in July 2014, and successful trial operation was conducted on December 6 of the same year. This marked Sinopec as the third company in the world to own the patent for producing propylene oxide using hydrogen peroxide technology, breaking the monopoly of foreign countries on this technology.
In addition to the aforementioned two producers, Taixing Yida Chemical (independent R&D), Qixiang Tengda (authorized by Evonik and ThyssenKrupp Uhde), Jincheng Petrochemical (independently developed by China Tianchen Engineering), and Jiahong New Material (using the process owned by China Catalyst Holding Co., Ltd) have also successfully operated their HPPO facilities in recent years. The current production capacity of HPPO (Hydrogen Peroxide to Propylene Oxide) plants in China has reached 1.55 mtpa.
However, the current stability of HPPO facilities is poor, with frequent shutdowns and maintenance issues. Although there are many newly completed or planned HPPO projects, there are still significant uncertainties and obstacles. The main reasons are as follows:
1) Inadequate hydrogen peroxide supply: Due to its unstable and highly explosive nature, hydrogen peroxide cannot be transported over long distances. It has a limited sales radius (300-500 km). Currently, hydrogen peroxide production in China is mainly concentrated in East China (63%), North China (6%), and Central China (14%), primarily located in chemical-intensive provinces such as Shandong, Hubei, Jiangsu, and Zhejiang. Southwest (4%), northwest (2%), and northeast (6%) regions have minimal production capacity, resulting in an imbalance between production layout and market size. On one hand, in some areas with concentrated downstream industries, there is a supply shortage of hydrogen peroxide, resulting in high transportation costs. On the other hand, some regions have excessive production facilities, with capacity far exceeding demand. Therefore, the issue of hydrogen peroxide supply needs to be addressed. The construction of new hydrogen peroxide plants requires sufficient hydrogen resources and faces difficulties in approval due to the classification of hydrogen peroxide as a hazardous chemical.
2) The production requires high-concentration hydrogen peroxide, while the preparation of high-concentration hydrogen peroxide presents certain difficulties. Currently, in Jilin Shenhua’s plant, the required 70% hydrogen peroxide is supplied by Evonik. The high cost leads to poor profitability of the plant.
3) In the HPPO process, hydrogen peroxide has high activity and can produce some aldehyde impurities during the production process, which can have an impact on downstream production.
September 12, 2023
Flexible Foam in Bangladesh
Foam industry firming up
Around 200 companies have entered the polyurethane foam industry of Bangladesh over the past 30 years. Photo: Collected
The market for polyurethane foam is growing in Bangladesh as the material is being increasingly used for making upholstered furniture as well as packaging and insulation, according to industry insiders.
For example, the automotive industry is contributing to the increased use as many car seats and door panels now incorporate foam fillings, they said.
As such, around 200 companies have entered the polyurethane foam industry over the past 30 years.
Besides, big companies like EuroAsia, Pran-RFL, Swan, Karmo, Bengal, Apex, Expo Group, Akhter, HomeTex, Hatil, and Classical Home have already established a firm grip on the market.
Pran-RFL Group entered the market in 2016 under the brand name “Comfy”.
The company produces several polyurethane foam products of varying density that have different uses.
These include soft and supper soft foam for mattresses and pillows, rigid foam for fridge insulation, flexible foam for footwear, and high-density foam for car accessories such as seats and panelling.
Kamruzzaman Kamal, director of marketing at Pran-RFL Group, said his company has grabbed about 15 percent of the market for foam products over the past seven years.
According to him, they have invested at least Tk 100 crore so far only for the manufacturing segment.
Kamal believes the business has potential for more branded companies to enter as demand has been increasing by about 10 percent annually for the past three decades.
Echoing the same, Shubhrajit Sarker, head of corporate at Euroasia, said the market for foam products is currently worth around Tk 360 crore annually.
Having entered the foam making business in 2015, Euroasia has grabbed a substantial share of the market since then by delivering quality products and after-sales service.
“By virtue of our quality and commitment, Euroasia has won the minds of customers as an authentic brand in Bangladesh,” Sarker added.
Referring to their market analysis, he said the overall demand for foam is worth Tk 30 crore per month.
Besides, the sector has so far created at least 1.5 lakh opportunities for direct and indirect employment.
But other than making furniture and footwear, foam is also used for packaging and insulation.
“So, the growth of e-commerce and subsequent rise in shipping of fragile products has further boosted the demand for foam packaging materials,” he said.
Furthermore, the construction industry in Bangladesh has witnessed a surge in foam usage for thermal insulation purposes, Hossain added.
Ali Hossain, general manager of Swan Foam, a leading foam manufacturer, said they have been in the business for more than 30 years and never compromised on quality.
According to him, there is no market data regarding the foam segment even though the material’s usage has been increasing in making furniture and other purposes.
Foam usage was once furniture centric but now, it is used in cars, fridges, footwear and more.
Also, the demand in rural areas has increased in line with the peoples’ growing purchasing power.
And while around 200 companies are currently involved with the business as it requires little investment, the quality of products made by most manufacturers is considerably limited, he added.
Selim H Rahman, chairman and managing director of Hatil, said they set up a foam production unit as a backward linkage industry so that they can ensure good quality materials in their furniture products.
However, this means that none of the foam produced at their unit is sold in the market.
According to him, the usage of foam is multidimensional, so the market is growing in line with the country’s economy.
Also, different sectors develop silently when a country’s economy develops like that of Bangladesh, which is not understood by the common people, Rahman added.
Quazi Anwarul Haque, proprietor of M/S RR Enterprise in the Baitul Mukarram area, said the foam making sector is unorganised as the market is still dominated by informal traders.
https://www.thedailystar.net/business/economy/news/foam-industry-firming-3401586
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