Company News

March 31, 2020

India TDI Plant Update

GNFC undertakes unscheduled shutdown at TDI plant in India

MOSCOW (MRC) — Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC), has shut its toluene diisocyanate (TDI) units at Bharuch & Dahej, according to Apic-online.

A Polymerupdate source in India informed that, the company has halted operations at the units last week owing to a nation-wide lockdown caused by the COVID-19 outbreak. Further details on duration of the shutdown could not be ascertained.

Located in Gujarat, India, the Bharuch unit has a production capacity of 50,000 mt/year and the Dahej unit has a production capacity of 17,000 mt/year.

TDI is a chemical used in the production of polyurethanes, primarily for flexible foam applications including furniture, bedding and carpet underlay, as well as packaging applications. TDI is also used in the manufacture of coatings, sealants, adhesives and elastomers.

As MRC wrote previously, India lockdown adds uncertainty for polyvinyl chloride (PVC) exports. Last week India’s Prime Minister Narendra Modi announced a nationwide lockdown from Wednesday for 21 days in an effort to slow the spread of the coronavirus in the world’s second-most populous country, which has 1.3 billion people. The lockdown applies to ports, which will slow imports of all kinds of goods, including PVC, to a country that was dependent on PVC imports to meet demand before the pandemic gripped the globe.

According to MRC’s ScanPlast report, contrary to seasonal factors, Russian producers of unmixed PVC have maintained a high level of capacity utilisation. Russia’s overal PVC output totalled 91,700 tonnes in January 2020, up by 4% year on year. January production of unmixed PVC was 91,700 tonnes versus 87,760 tonnes in January 2019 and 81,400 tonnes in December 2019. Thus, despite relatively weak demand for resin from the domestic market, the average capacity utilisation exceeded 95% last month. Russia’s overall PVC production reached 975,000 tonnes in 2019, compared to 958,600 tonnes a year earlier.

Author:Margaret Volkova

http://www.mrcplast.com/news-news_open-368449.html

March 31, 2020

India TDI Plant Update

GNFC undertakes unscheduled shutdown at TDI plant in India

MOSCOW (MRC) — Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC), has shut its toluene diisocyanate (TDI) units at Bharuch & Dahej, according to Apic-online.

A Polymerupdate source in India informed that, the company has halted operations at the units last week owing to a nation-wide lockdown caused by the COVID-19 outbreak. Further details on duration of the shutdown could not be ascertained.

Located in Gujarat, India, the Bharuch unit has a production capacity of 50,000 mt/year and the Dahej unit has a production capacity of 17,000 mt/year.

TDI is a chemical used in the production of polyurethanes, primarily for flexible foam applications including furniture, bedding and carpet underlay, as well as packaging applications. TDI is also used in the manufacture of coatings, sealants, adhesives and elastomers.

As MRC wrote previously, India lockdown adds uncertainty for polyvinyl chloride (PVC) exports. Last week India’s Prime Minister Narendra Modi announced a nationwide lockdown from Wednesday for 21 days in an effort to slow the spread of the coronavirus in the world’s second-most populous country, which has 1.3 billion people. The lockdown applies to ports, which will slow imports of all kinds of goods, including PVC, to a country that was dependent on PVC imports to meet demand before the pandemic gripped the globe.

According to MRC’s ScanPlast report, contrary to seasonal factors, Russian producers of unmixed PVC have maintained a high level of capacity utilisation. Russia’s overal PVC output totalled 91,700 tonnes in January 2020, up by 4% year on year. January production of unmixed PVC was 91,700 tonnes versus 87,760 tonnes in January 2019 and 81,400 tonnes in December 2019. Thus, despite relatively weak demand for resin from the domestic market, the average capacity utilisation exceeded 95% last month. Russia’s overall PVC production reached 975,000 tonnes in 2019, compared to 958,600 tonnes a year earlier.

Author:Margaret Volkova

http://www.mrcplast.com/news-news_open-368449.html

March 31, 2020

LyondellBasell Slows Propylene Oxide Project

LyondellBasell to Slow Construction on PO/TBA Project

HOUSTON, March 30, 2020 /PRNewswire/ — LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, has informed the engineering and construction contractors it will slow construction of its world-scale propylene oxide (PO) and tertiary butyl alcohol (TBA) plant. The company is limiting non-essential activities at this time due to ongoing concerns related to the COVID-19 pandemic, including government orders designed to limit human contact.

“The COVID-19 pandemic is unprecedented and evolving. Because the PO/TBA site is currently under construction and not producing needed products yet, in the interest of health and safety we believe it is prudent to limit construction activities at this time,” said Torkel Rhenman, executive vice president, Intermediates & Derivatives (I&D). “We remain committed to the completion of this strategic investment incorporating our low-cost, next generation PO/TBA technology. Over the next several weeks, we will be working with our contractors and suppliers to develop a revised project timeline.”

LyondellBasell’s PO/TBA project broke ground in August 2018. Currently, the project is more than 30 percent complete with ongoing installation of key equipment and towers. The PO/TBA project has a split-facility design to optimize synergies between two existing LyondellBasell sites. A 140-acre PO/TBA plant is being built at the company’s Channelview, Texas facility, and an associated 34-acre ethers unit is being built at the company’s Bayport Complex in Pasadena, Texas. When complete, the PO/TBA plant will produce approximately 1 billion pounds (470,000 metric tons) of PO and 2.2 billion pounds (1 million metric tons) of TBA annually, which will serve the growing need for better insulation material, home comfort, cleaner fuels and other consumer applications.

This announcement does not impact LyondellBasell’s ongoing operations at Channelview or Bayport, which are designated as part of the United States’ critical infrastructure by the Department of Homeland Security.

https://lyondellbasell.mediaroom.com/index.php?s=43&item=1320

March 31, 2020

LyondellBasell Slows Propylene Oxide Project

LyondellBasell to Slow Construction on PO/TBA Project

HOUSTON, March 30, 2020 /PRNewswire/ — LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, has informed the engineering and construction contractors it will slow construction of its world-scale propylene oxide (PO) and tertiary butyl alcohol (TBA) plant. The company is limiting non-essential activities at this time due to ongoing concerns related to the COVID-19 pandemic, including government orders designed to limit human contact.

“The COVID-19 pandemic is unprecedented and evolving. Because the PO/TBA site is currently under construction and not producing needed products yet, in the interest of health and safety we believe it is prudent to limit construction activities at this time,” said Torkel Rhenman, executive vice president, Intermediates & Derivatives (I&D). “We remain committed to the completion of this strategic investment incorporating our low-cost, next generation PO/TBA technology. Over the next several weeks, we will be working with our contractors and suppliers to develop a revised project timeline.”

LyondellBasell’s PO/TBA project broke ground in August 2018. Currently, the project is more than 30 percent complete with ongoing installation of key equipment and towers. The PO/TBA project has a split-facility design to optimize synergies between two existing LyondellBasell sites. A 140-acre PO/TBA plant is being built at the company’s Channelview, Texas facility, and an associated 34-acre ethers unit is being built at the company’s Bayport Complex in Pasadena, Texas. When complete, the PO/TBA plant will produce approximately 1 billion pounds (470,000 metric tons) of PO and 2.2 billion pounds (1 million metric tons) of TBA annually, which will serve the growing need for better insulation material, home comfort, cleaner fuels and other consumer applications.

This announcement does not impact LyondellBasell’s ongoing operations at Channelview or Bayport, which are designated as part of the United States’ critical infrastructure by the Department of Homeland Security.

https://lyondellbasell.mediaroom.com/index.php?s=43&item=1320

March 30, 2020

BASF to Shutter Smaller TDI Unit in April

Europe toluene, MX sink past 14-year lows on crude coronavirus flop, weaker demand

Author: Vicky Ellis

2020/03/30

LONDON (ICIS)–European toluene and mixed xylenes (MX) spot prices crashed to 14- and 15-year lows last week, dragged by Eurobob gasoline dropping well below $200/tonne as coronavirus travel restrictions weakened petrol use and crude oil demand.

On Friday (27 march), the International Energy Agency (IEA)  forecast crude demand could fall as much as 20% over the coming months due to coronavirus.

Values for the sister products toluene and MX remain well below lows hit during the 2008 slump – and the lowest since the toluene and MX’s assessments began in 2006 and 2005, respectively.

Toluene was also pressured by a well-supplied market set to become lengthier, prompting premiums over gasoline to plunge in some instances, assessed at $60-110/tonne.

MX fared slightly differently, with supply slightly harder to find, which supported premiums over gasoline up to around $100-110/tonne.

TRUCK MARKET QUIET
European truck prices are mainly stable for the time being, with suppliers due to share new monthly prices in the week to come.

Trucks have been below €600/tonne in cases or slightly above on a delivered basis in others. On a FCA (free carrier) basis, they are at the mid-€500s/tonne.

Truck activity remains quiet as the distribution market fields enquiries for other products, such as isopropanol (IPA) and ethanol due to rising demand for hand sanitizer.

GLOBAL TRADE: DIFFICULT
Volatility in upstream pricing is challenging for traders checking global arbitrages daily for potential openings.

US arbitrage appears closed for toluene, limiting any outflows from Europe other than a possible structural or internal move for one producer, trading feedback suggests.

Asia is also not pulling either, despite being a high-priced region, since it should be well-catered to by local stocks.

Lengthy supply for toluene is a possibility for April as stable-to-soft chemical demand amid the uncertain economic environment could be amplified by the closure of BASF’s smaller toluene diisocyanate (TDI) plant in April, which could free up toluene in the German market.

Bulk prices for toluene dropped to $205-315/tonne and MX was down to $245-315/tonne, with these weekly ranges to Friday 27 March both on a FOB (free on board) Rotterdam basis.

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The main chemical use of toluene is to make benzene and xylenes. The product is also used as a solvent in paint thinners, nail polish remover and in the manufacturing of nylon and plastic bottles.

MX is a feedstock for paraxylene (PX) and orthoxylene (OX) production, while the solvent grade is a raw material for dye, organic pigment, perfume and medicines, as well as a general solvent for paint and agricultural pesticides.

Front page picture: Planes grounded at Frankfurt airport; the European aviation industry has come to standstill amid travel restrictions
Source: Thorsten Wagner/EPA-EFE/Shutterstock 

https://www.icis.com/explore/resources/news/2020/03/30/10487995/europe-toluene-mx-sink-past-14-year-lows-on-crude-coronavirus-flop-weaker-demand