Central European and Russian chemical news-Jan-Oct 2021Crude pipeline tariffs & deliveries
Ukraine has announced that it plans to increase rates for the transit of Russian oil via the Druzhba pipeline by 18% in 2023. The local oil pipeline operator, Ukrtransnafta, stated that this was the result of increased costs resulting from the war in the country and the destroyed energy infrastructure. Oil is transported through Ukraine to the Czech Republic, Hungary and Slovakia. Tariffs are to increase by €2.1 per ton, to €13.6 compared to €11.5 from April last year and the price before that €8.6. The increase will be felt mostly by MOL and Orlen Unipetrol. Regarding the northern section of the Druzhba Belarus may also be willing to raise rates, following the example of Ukraine.
The southern branch of Druzhba pumps about 1-1.5 million tons of oil per month. In 2021 12 million tons were transported via this route, of which 5.2 million tons were received by Slovakia and 3.4 million tons each by the Czech Republic and Hungary.
Germany and Poland have signed a deal aimed at securing the supply of oil to the Schwedt refinery after ending reliance on Russian oil. Berlin aims to eliminate imports of oil from Russia and has for months been working with Poland to try secure supply for Schwedt, which provides 90% of Berlin's fuel.
Both sides want to ensure Polish refineries in Gdansk and Plock as well as German refineries in Schwedt and Leuna are adequately supplied with crude oil, ministers from both countries said in a joint declaration. This did not provide any details on how the supply to Schwedt would be guaranteed. Schwedt is currently under German trusteeship but belongs to Rosneft.
Croatia’s sole pipeline operator, JANAF, has signed a two-year contract with Serbia’s NIS, majority owned by Gazprom Neft, for transporting crude oil to Serbia, despite previously announcing it would halt such transport as the EU tightened restrictions on Russian oil imports. Under the deal, valid for 2023 and 2024, NIS reserved JANAF’s capacity for 6.2 million tons of crude. According to Croatian data, JANAF carried 2.3 million tons of crude to Hungary in 2021 but only 0.95 million in 2022, and Croatian officials say that Hungary has not expressed any formal interest in using the pipeline’s full capacity.
In South East Europe a plan to build the Bourgas-Alexandropoulos oil pipeline could be revived by Bulgaria which has been supported by Lukoil. Sofia abandoned the Bourgas-Alexandropoulos oil pipeline in 2011, following a local referendum over environmental concerns.
Central European ethylene production
Ethylene production in the four countries that comprise the Visegrad Group region fell in the third quarter in 2022. This was mainly due to maintenance, mainly conducted at MOL’s plants in Hungary and Slovakia. Production for the four countries totalled 293,600 tons in the period July to September 2022 against 389,200 tons in the second quarter and 405,700 tons in the same quarter in 2021. The second quarter in 2021 saw extended maintenance by PKN Orlen which resulted in a regional total production of 276,200 tons.
PKN Orlen-petrochemical production Jan-Oct 2022
PKN Orlen Production (unit-kilo tons)
|
Product
|
Jan-Oct 22
|
Jan-Oct 21
|
Ethylene
|
384.9
|
266.7
|
Propylene
|
352.8
|
271.0
|
Butadiene
|
53.0
|
32.3
|
Toluene
|
7.4
|
9.2
|
Phenol
|
36.0
|
37.7
|
Polyethylene
|
271.0
|
181.8
|
PVC
|
228.7
|
177.1
|
Polypropylene
|
274.5
|
240.6
|
PKN Orlen increased ethylene production in the first ten months in 2022 to 352,800 tons against 266,700 tons in the same period in 2021, whilst propylene rose from 271,000 tons to 352,800 tons.
The increase in olefin production enabled an increased in polymer production at Plock, including a rise in polyethylene output to 271,000 tons from 181,500 tons in January to October 2021 and for polypropylene from 240,600 tons to 274,500 tons. PVC production at Wloclawek increased from 177,100 tons to 228,700 tons.
Petrochemical margins for PKN Orlen remain relatively high despite the weaker performance in the third quarter. Positive margins help to offset the high energy costs which are affecting European petrochemical producers and represents one of the main concerns entering in 2023. PKN Orlen's model refining margin fell to $19.9 in November 2022 from $31.4 in October.
Central European propylene production
Propylene production in the Visegrad Group region fell slightly in the third quarter to 265,800 tons from 273,300 tons in the second quarter and 298,700 tons in the period July to September 2021. Despite the cracker shutdown at PKN Orlen in 2021 the production of propylene at the Metathesis plant helped reduce the impact of lower production of by-product propylene. Feedstock stability and energy costs will continue to represent the primary concerns at least for the first half of 2023.
MOL’s new propylene plant
MOL’s Olefin Capacity
|
Product
|
Ktpa
|
Ethylene
|
890
|
Propylene
|
550
|
Butadiene
|
130
|
Work has started on MOL’s new 100,000 tpa propylene plant at Tiszaujvaros where structures are being established by the construction company Merkbau Zrt. The propylene plant is being constructed on an area of about three hectares at the site of MOL Petrochemicals at Tiszaújváros. The plant will fit into the existing production infrastructure, providing raw materials for the polyol plant, thus expanding the company's chemical production capacity. MOL Petrochemicals' new propylene plant will significantly cover MOL's chemical raw material needs.
Central European propylene trade
In the first three quarters in 2022 MOL’s propylene export price rose to €1334 per ton against €1009 per ton in the same period in 2021. By volume exports fell in the first nine months to 58,666 tons versus 82.140 tons in January to September 2021, whilst due to the higher sales price meant revenues only dropped slightly to €76.215 million from €79.166 million. Spot prices of propylene rose 29% in the first quarter and then rose again in the second quarter before starting to soften in the third quarter. Exports to Slovakia are the main focus of Hungarian outward shipments of propylene, where volumes dropped from 74,400 tons in the first three quarters in 2021 to 50,500 tons in the same period in 2022. Propylene production by Slovnaft is not sufficient to maintain high utilisation rates for polypropylene and additional supplies need to be purchased.
Polish propylene imports Jan-Oct 2022
Polish Imports of Propylene (unit-kilo tons)
|
Country
|
Jan-Oct 22
|
Jan-Oct 21
|
Lithuania
|
0.000
|
6.415
|
Bulgaria
|
6.019
|
0.000
|
Croatia
|
5.905
|
0.000
|
Germany
|
49.158
|
76.522
|
Russia
|
23.132
|
41.519
|
Ukraine
|
19.020
|
55.838
|
Hungary
|
3.918
|
0.000
|
Others
|
5.849
|
0.012
|
Total
|
113.001
|
180.306
|
Imports of propylene into Poland dropped in the first ten months to 113,001 tons against 180,306 tons in the same period in 2021. This was due mostly to the higher production undertaken at Plock. Average prices increased from €902 per ton in January to October 2021 to €1290 per tons in the same period in 2022. Although propylene monomer has not been sanctioned by the EU, Russia has exported only small volumes to Poland in the past few months.
To compensate for the drop in imports from Russia due to sanctions and Ukraine where production was suspended following the Russian invasion, Poland started to receive deliveries from Bulgaria, Croatia and Hungary. The propylene from Bulgaria came from the Bourgas refinery which is owned by Lukoil and has somehow avoided the effects of sanctions even if it is a Russian company. Shipments from Croatia and Hungary were coordinated by MOL. Propylene production at INA’s Rijeka refinery in Croatia, which is a sub-division of MOL, started in late 2020 with a capacity of 84,000 tpa.
Polimery Police-propane agreement
Grupa Azoty Polyolefins has concluded a propane purchase agreement with Trafigura Pte. The value of benefits under the agreement will amount to approximately $250 million, in which supplies will secure over 50% of the company's demand for raw material in the period December 2022 to December 2024.
The plant with a production capacity of 0.5 million tpa of PP will soon be in the start-up phase. Along with the PP installation, the gas terminal will be launched. The first delivery from the US to the Police gas terminal arrived just before Christmas. The Guadalupe Explorer tanker delivered its 22,000 tons of propane to the port of Swinoujscie in northern Poland with the first cargo for Polimery Police.
Other recent developments that could help Polimery Police was the creation of the West Pomeranian Hydrogen Valley in November last year. Grupa Azoty, the largest producer of hydrogen in Poland, is strongly involved in the project.
Czech petrochemical trade, Jan-Oct 2022
Czech Petrochemical Exports (unit-kilo tons)
|
Product
|
Jan-Oct 22
|
Jan-Oct 21
|
Ethylene
|
11.094
|
19.725
|
Propylene
|
0.033
|
4.017
|
Butadiene
|
1.100
|
2.453
|
Benzene
|
30.256
|
39.211
|
Toluene
|
5.120
|
7.320
|
Ethylbenzene
|
92.081
|
106.783
|
Czech Imports of Propylene (unit-kilo tons)
|
Country
|
Jan-Oct 22
|
Jan-Oct 21
|
Germany
|
17.413
|
13.747
|
Poland
|
4.931
|
11.056
|
Romania
|
5.253
|
3.099
|
Russia
|
1.220
|
0.000
|
Slovakia
|
0.993
|
5.770
|
Ukraine
|
0.524
|
3.388
|
Others
|
1.002
|
0.104
|
Total
|
31.336
|
37.704
|
Propylene imports into the Czech Republic dropped from 37,804 tons in January to October 2021 to 31,336 tons in the same period this year. Costs of propylene imports rose to €47.525 million against €36.338 million, with average prices rising from €1168 per ton in 2021 to €1517 in 2022. Czech exports of ethylbenzene declined in the first ten months in 2022 to 92,081 tons from 106,783 tons in the same period in 2021. All the ethylbenzene was shipped from Kralupy to Oswiecim in Poland, all within the structures of the Synthos Group. Benzene imports are required to cover ethylbenzene production and amounted to 64,665 tons in January to October 2022. Imports were largely shipped from Poland
Ethylene exports from the Czech Republic amounted to 11,094 tons in the first ten months last year against 19,725 tons in the same period 2021 whilst ethylene imports rose from 3,194 tons to 16,034 tons. Germany supplied 15,898 tons to the Czech Republic in January to October 2022, supplied from the Boehlen plant to Litvinov.
Czech Petrochemical Imports (unit-kilo tons)
|
Product
|
Jan-Oct 22
|
Jan-Oct 21
|
Ethylene
|
16.034
|
3.194
|
Propylene
|
31.336
|
37.704
|
Butadiene
|
56.319
|
66.125
|
Benzene
|
64.665
|
65.986
|
Toluene
|
5.864
|
6.027
|
Styrene
|
13.407
|
57.195
|
Germany was the leading supplier of propylene to the Czech market in 2022, supplying 17,413 tons in the first ten months for €25.764 million. Other suppliers included Romania which shipped 5,251 tons from the Petromidia refinery for €7.528 million, followed by Poland shipping 4,931 tons for €6.155 million.
Czech imports of butadiene dropped from 66,125 tons in the first ten months in 2021 to 56,319 tons in the same period in 2022. Germany shipped 54,530 tons to the Czech market in January to October 2021, dropping to 46,637 tons in the same period in 2022.
Central European styrene trade
Polish Styrene Imports (unit-kilo tons)
|
Country
|
Jan-Oct 22
|
Jan-Oct 21
|
Belgium
|
8.251
|
7.048
|
Czech Republic
|
7.904
|
1.111
|
Finland
|
0.620
|
0.957
|
Netherlands
|
49.213
|
72.434
|
Germany
|
16.630
|
7.093
|
Others
|
1.938
|
1.854
|
Total
|
84.555
|
90.497
|
Czech Styrene Imports (unit-kilo tons)
|
Country
|
Jan-Oct 22
|
Jan-Oct 21
|
Belgium
|
1.694
|
16.287
|
Germany
|
0.180
|
3.059
|
Netherlands
|
9.441
|
34.900
|
Poland
|
1.724
|
2.918
|
Others
|
0.069
|
0.183
|
Total
|
13.407
|
57.195
|
Poland imported 84,555 tons of styrene in the first ten months in 2022 versus 90,497 tons in the same period last year. The Netherlands reduced shipments from 72,434 tons to 49,213 tons whilst imports from Germany rose from 7,093 tons to 16,630 tons.
Hungarian styrene imports (unit-kilo tons)
|
Country
|
Jan-Sep 22
|
Jan-Sep 21
|
Germany
|
3.846
|
0.363
|
Italy
|
66.410
|
73.280
|
Netherlands
|
2.062
|
2.799
|
Others
|
0.000
|
0.070
|
Total
|
72.318
|
76.512
|
Costs averaged €1591 per ton in the first ten months this year. The main importer of styrene monomer into Poland is Synthos which was fined in November by the European Commission for cartel arrangements for styrene purchases between 2016 and 2018.
Styrene imports into the Czech Republic saw a large drop in 2022, falling from 57,195 tons in January to October 2021 to 13,407 tons. At the same exports of styrene monomer from the Czech Republic increased from 1,019 tons in 2021 to 7,690 tons in January to October 2022.
The emergence of exports since August 2022 is largely connected with lower rubber production at Kralupy. In September Synthos stated that it was reducing its production of ESBR at Kralupy and Oswiecim due to high energy costs.
In Hungary imports of styrene monomer totalled 72,318 tons in the period January to September 2022 against 76,512 tons in the same period in 2021. Italy supplied 66,410 tons this year which is directed by Versalis to its polystyrene plant in Hungary, down from 73,280 tons in January to September 2021.
Polish polyolefin trade Jan-Oct 2022
Polish PP Exports (unit-kilo tons)
|
Type
|
Jan-Oct 22
|
Jan-Oct 21
|
PP homo
|
165.909
|
161.477
|
Polyisobutylene
|
0.263
|
0.478
|
Propylene copolymers
|
75.712
|
62.212
|
Other
|
5.107
|
2.847
|
Total
|
246.990
|
227.015
|
Polish PP Imports (unit-kilo tons)
|
Type
|
Jan-Oct 22
|
Jan-Oct 21
|
PP homo
|
512.793
|
608.154
|
Polyisobutylene
|
3.080
|
3.718
|
Propylene copolymers
|
249.797
|
275.727
|
Other
|
17.282
|
20.495
|
Total
|
782.953
|
908.094
|
Poland imported 512,793 tons of polypropylene homo grade in the first ten months in 2022 for a total value of €893.118 million. Russia provided 52,203 tons for €76.920 million, which was exceeded by Germany with 115.096 tons for €206,696. Imports from Russia were last undertaken in July following the imposition of EU sanctions. In 2021 Poland imported 155,805 tons of polypropylene homo grade from Russia for a total grade €198.656 million. Shipments from Russia accounted for 21% of total Polish imports.
Homo grade PP imports into Poland dropped from 608,154 tons in January to October 2021 partly due to higher production at Plock. Copolymer imports also fell from 275,727 tons to 249,797 tons, although price rises meant that costs rose from €459.485 million to €489.256 million. Germany was the largest supplier of propylene copolymers to the Polish market last year transporting 70,529 tons for €135.519 million.
Polish PE imports (unit-kilo tons)
|
Type
|
Jan-Oct 22
|
Jan-Oct 21
|
LDPE
|
238.361
|
284.309
|
LLDPE
|
203.252
|
185.778
|
HDPE
|
377,236
|
353.624
|
EVA
|
14.683
|
16.151
|
EAC
|
162.183
|
150.225
|
Other
|
51.103
|
35.760
|
Total
|
1117.299
|
1025.847
|
Exports of polypropylene homo grade from Poland amounted to 165,909 tons in the first ten months in 2022 for €233.331 million. The largest destination for Polish exports was Germany, taking 37,359 tons for €61.544 million.
In the polyethylene sector imports into Poland totalled 1.117 million tons in the first ten months in 2022 against exports of 292,719 tons. Import costs amounted to €2.012 billion in January to October 2022 against export revenues of €485.450 million.
Polish PE Exports (unit-kilo tons)
|
Type
|
Jan-Oct 22
|
Jan-Oct 21
|
LDPE
|
52.358
|
55.595
|
LLDPE
|
18.359
|
14.372
|
HDPE
|
197.582
|
172.183
|
EVA
|
3.052
|
1.882
|
EAC
|
17.237
|
17.972
|
Other
|
4.130
|
4.266
|
Total
|
292.719
|
225.197
|
LDPE and LLDPE comprised the largest category of imports, totalling 497,798 tons of which LLDPE amounted to 203,251 tons for €350.066 million. Imports of LLDPE were sourced mostly from West Europe, including France, the Netherlands and Germany. LDPE imports totalled 294,547 tons in the first ten months in 2022 for €542.342 million.
HDPE is the largest export category from Poland, shipping 197,582 tons in the first ten months in 2022 for €310.189 million. Imports still outstripped exports though, amounting to 377,236 tons in the first ten months for €636.022 million. Germany was the largest origin source of imports of HDPE into Poland last year and also the largest destination for exports.
Hungarian polyolefin exports Q1-Q3 2022
Hungarian Exports of Polymers (unit-kilo tons)
|
Product
|
Q1-Q3 22
|
Q1-Q3 21
|
LDPE
|
69.632
|
87.867
|
HDPE
|
151.472
|
196.578
|
EVA
|
0.087
|
0.074
|
EAO
|
0.279
|
2.599
|
Other PE
|
3.560
|
2.599
|
PP-Homo grade
|
80.887
|
76.410
|
Propylene Copolymers
|
65.914
|
80.634
|
Hungarian exports of HDPE dropped from 196,578 tons in the first three quarters in 2022 to 151,472 tons in the same period in 2021. LDPE exports declined from 87,867 tons to 69,632 tons. Polyethylene exports were affected by MOL’s lengthy maintenance undertaken in Q2 and Q3 2022. MOL reduced HDPE production at Tiszaujvaros in the first three quarters to 222,000 tons from 301,000 tons in the same period in 2021, which meant that exports dropped 68% of total production in 2021 to 65% in 2022.
Propylene copolymer exports from Hungary dropped from 80,634 tons to 65,914 tons but homo grade PP increased from 76,410 tons to 80,887 tons.
Czech polyethylene trade Jan-Oct 2022
Czech Polyethylene Exports (unit-kilo tons)
|
Product
|
Jan-Oct 22
|
Jan-Oct 21
|
LDPE
|
26.515
|
32.651
|
LLDPE
|
3.321
|
3.032
|
HDPE
|
301.857
|
274.803
|
EVA
|
2.720
|
5.057
|
Other
|
11.587
|
8.595
|
Total
|
346.000
|
324.138
|
|
|
|
Czech Polyethylene Imports (unit-kilo tons)
|
Product
|
Jan-Oct 22
|
Jan-Oct 21
|
LDPE
|
104.146
|
106.097
|
LLDPE
|
18.656
|
20.157
|
HDPE
|
101.260
|
117.406
|
EVA
|
8.270
|
6.712
|
Other
|
35.074
|
38.289
|
Total
|
267.406
|
288.661
|
Polyethylene and polypropylene values started to see some stability towards the end of 2022 with greater stability in the feedstock situation. Weakening demand fundamentals in the Central European region also exerted a bearish pressure on prices.
Polyethylene exports from the Czech Republic totalled 346,000 tons in the first ten months in 2022 against 324,100 tons in the same period in 2021.
Imports dropped slightly from 288,700 tons to 267,400 tons. HDPE exports increased from 274,800 tons to 301,900 tons whilst imports remain dropped from 117,400 tons to 101,300 tons. Export revenues rose from €462.3 million in the period January to October 2021 to €578.3 million in the same period in 2022, with HDPE revenues rising from €377.8 million to €477.2 million.
Polypropylene exports from Orlen Unipetrol dropped from 276,298 tons in the first ten months in 2021 to 259,503 tons in January to October in 2022 whilst values rose from $401.509 million to $456.298 million.
Butadiene trade Central Europe
MOL's Butadiene Exports (unit-kilo tons)
|
Country
|
Jan-Sep 22
|
Jan-Sep 21
|
Czech Republic
|
4.088
|
9.572
|
Germany
|
5.035
|
17.312
|
Poland
|
28.190
|
35.835
|
Russia
|
0.0
|
1.752
|
Total
|
37.313
|
64.571
|
Polish Butadiene Imports (unit-kilo tons)
|
Country
|
Jan-Oct 22
|
Jan-Oct 21
|
Austria
|
25.922
|
34.839
|
Czech Republic
|
0.952
|
5.076
|
France
|
3.439
|
0.000
|
Germany
|
19.034
|
0.000
|
Hungary
|
30.247
|
41.049
|
Others
|
0.005
|
0.000
|
Total
|
79.599
|
103.017
|
In the Central European region Hungary is the only net exporter with most countries dependent on imports. MOL’s butadiene exports dropped from 64,371 tons in the first three quarters in 2021 to 37,313 tons in the same period this year. Exports were down mostly due to lower production at Tiszaujvaros and internal processing.
Both Poland the Czech Republic are net importers of butadiene, with Synthos acting as the main buyer in both countries.
Czech imports of butadiene dropped from 52,814 tons in the first eight months in 2021 to 48,329 tons in the same period in 2022. Germany shipped 44,377 tons in January to August 2021, dropping to 41,613 tons in the same period in 2022.
Butadiene imports into Poland dropped from 103,017 tons in the first ten months in 2021 to 79,599 tons, the fall largely due to increased production at Plock. Demand for butadiene at Oswiecim was expected to fall in September and October due reduced production by Synthos to higher production costs. Synthos stated that it could no longer operate its ESBR production at full capacity due to unsustainable and unpredictable utility costs and was therefore reducing utilisation by around 30%.
In order to develop greater integration Synthos is working on its contract concluded with Air Liquide Engineering and Construction in 2021 in order to construct a new butadiene extraction unit at Plock with a capacity of 120,000 tpa. Furthermore, for 2026 Synthos is building project to build a 40,000 tpa bio-butadiene plant at Oswiecim. The project is aligned with Synthos goals to transition from the current 100% fossil-based to 100% bio-based synthetic rubber, in line with market requirements.
Central European rubber trade
After a gradual rise in synthetic rubber prices for the Central European region from the start of 2021 prices in the fourth quarter started seeing noticeable declines, partly due to feedstock factors and partly due to demand patterns. Synthetic rubber prices dipped in December as butadiene continued to fall in price, particularly affecting styrene butadiene rubber. Nitrile butadiene rubber was the only commodity where prices remained stable. Although synthetic rubber prices had risen above natural rubber prices for large parts of 2022, as illustrated in the graphic opposite, towards the end of the year the reverse trend was developing with natural rubber prices starting to rise.
Prices for synthetic rubber have come under pressure or at least stopped rising despite the introduction of EU sanctions on Russia which has traditionally been an important supplier to Central Europe. Those products affected mostly include butadiene rubber and particularly halogenated butyl rubber (HBR) where Russia has dominated most of the market share in Central Europe over the past decade. Poland had previously depended almost exclusively on Nizhnekamskneftekhim for supplies of HBR, purchasing 10,424 tons in the first ten months from a total 10,917 tons.
Polish Synthetic Rubber Imports (unit-kilo tons)
|
Product
|
Jan-Oct 22
|
Jan-Oct 21
|
ESBR
|
11.600
|
18.762
|
Block SBR
|
35.950
|
52.068
|
S-SBR
|
12.165
|
12.753
|
Butadiene Rubber
|
50.810
|
37.586
|
Butyl Rubber
|
3.134
|
2.835
|
HBR
|
12.433
|
14.214
|
NBR
|
11.919
|
12.923
|
Isoprene Rubber
|
26.704
|
32.193
|
EPDM
|
39.112
|
32.193
|
Others
|
103.759
|
80.264
|
Total
|
307.586
|
295.791
|
The Czech Republic has been slightly more diverse in suppliers of halogenated butyl rubber, but still imported 3,571 tons from Russia of the total 4,934 tons imported in January to October last year. From August to October specifically the Czech Republic imported only 286 tons of HBRs, none of which came from Russia, whilst 198 tons of the total 275 tons imported by Poland came from Russia.
Imports of butadiene rubber from Russia into Poland in the first eight months totalled 19,969 tons for €35.692 million, from a total of 50,729 tons for a total of €108.722 million. Imports from Russia for October amounted to 1,556 tons from a total of 6,209 tons, although the Russian sources should theoretically not be present. Butadiene rubber sources are far more diverse than halogenated butyl rubber as it is a much larger market by volume.
The Czech Republic imported a total of 25,603 tons of butadiene rubber in the period January to October 2022 for a total of €63.184 million, of which Russia supplied 10,199 tons for €19.892 million. The Czech Republic is much larger exporter of butadiene rubber, shipping 90,795 tons in the first ten months last year for €190.200 million, up from 88.192 tons in January to October 2021 for €135.619 million. The largest destination for Czech exports of butadiene rubber is India to where 19,261 tons was shipped in the first ten months in 2022 against 18,217 tons in the same period in 2021.
Hungarian Exports of Synthetic Rubber (unit-kilo tons)
|
Product
|
Q1-Q3 22
|
Q1-Q3 21
|
SBR
|
21.112
|
9.654
|
HBR
|
8.083
|
11.000
|
Hungary imported a total of 33,204 tons of butadiene rubber in the first nine months in 2022 for a total value of €69.805 million, of which Russia supplied 13,102 tons for €25.004 million. Imports of halogenated rubber totalled 11,133 tons in the period January to September 2022 for a total value of €31.116 million, of which Russia supplied 9,378 tons for €25.837 million.
Czech Exports of Butadiene Rubber (unit-kilo tons)
|
Country
|
Jan-Oct 22
|
Jan-Oct 21
|
China
|
1.819
|
1.944
|
Germany
|
4.531
|
2.594
|
Spain
|
2.866
|
1.505
|
France
|
4.495
|
4.178
|
Hungary
|
4.887
|
4.355
|
India
|
19.261
|
18.217
|
Italy
|
4.275
|
2.572
|
South Korea
|
4.510
|
6.002
|
Poland
|
12.489
|
12.251
|
Romania
|
2.955
|
2.001
|
Slovakia
|
8.100
|
8.892
|
Turkey
|
4.390
|
4.706
|
US
|
4.821
|
4.206
|
Serbia
|
2.935
|
1.291
|
South Africa
|
1.758
|
2.677
|
Others
|
6.704
|
10.803
|
Total
|
90.795
|
88.192
|
Whilst Poland and Hungary have traditionally purchased large volumes of halogenated butyl rubber (HBRs) from Nizhnekamskneftekhim it has also exported large volumes. Hungary exported 8,083 tons of HBRs in the first three quarters in 2022 for €22.890 million, thus accounting for 73% of the imported volumes. Hungarian exports were previously shipped to Germany, Italy, China, the US, etc but these trading links have now been broken.
Although Nizhnekamskneftekhim as the sole Russian producer of HBRs is selling less product to the EU, the impact has not yet been significant on production rates.
Synthos 2023 prospects
Rising electricity and gas prices, coupled with slowing economic growth and supply constraints, could translate into declining prices in the styrene market and tighter butadiene spreads. Although gas prices have fallen from the middle of the year and are forecast to fall further in 2023, those numbers will be at least three times higher than in 2021.
Synthos Production Oswiecim (unit-kilo tons)
|
Product
|
Jan-Oct 22
|
Jan-Oct 21
|
Polystyrene
|
58.6
|
58.8
|
EPS
|
85.1
|
89.7
|
Synthetic Rubber
|
225.1
|
230.2
|
In the first ten months in 2022 Synthos produced 225,100 tons of synthetic rubber at its Oswiecim plant against 230,200 tons in the same period in 2021. Following the reduction in capacity utilisation at its ESBR plants, total production of synthetic rubber by Synthos in Poland dropped to 17,100 tons in October which was the lowest volume since 2017.
The competitive position of Synthos is underpinned by an integrated production chain, which provides access to competitively priced feedstock, and self-sufficiency in electricity and steam in Poland and the Czech Republic.
Excluding operations in Germany, Synthos sources approximately 35% of butadiene needs from its jv with Unipetrol and around half of its styrene supply from Synthos Kralupy, and Synthos Dwory. A further 19% of butadiene is supplied by PKN Orlen and the benefits of integration will increase with ongoing investment in Plock.
Polish synthetic rubber trade, Jan-Oct 2022
Imports of synthetic rubber into Poland increased in the first ten months to 307,586 tons against 295,791 tons in the same period in 2021. Butadiene rubber imports rose from 37,856 tons to 50,810 tons and EPDM increased imports from 32,193 tons to 39,112 tons. Import costs for synthetic rubber increased from €607.387 million to €741.361 million in January to October 2022, including an increase in butadiene rubber costs from €58.551 million to €108.722 million and EPDM costs increased from €60.063 million to €86.757 million.
Polish Exports of ESBR (unit-kilo tons)
|
Country
|
Jan-Oct 22
|
Jan-Oct 21
|
Brazil
|
11.522
|
18.536
|
China
|
1.666
|
10.426
|
Czech Republic
|
1.769
|
1.593
|
Finland
|
2.490
|
1.928
|
France
|
2.788
|
3.290
|
Spain
|
8.161
|
4.113
|
Hong Kong
|
1.573
|
5.047
|
India
|
32.805
|
31.284
|
Japan
|
1.096
|
3.118
|
Germany
|
4.452
|
5.154
|
South Africa
|
9.437
|
9.832
|
Romania
|
1.511
|
2.804
|
Serbia
|
2.726
|
2.974
|
Thailand
|
1.698
|
5.547
|
Turkey
|
7.232
|
9.419
|
Hungary
|
3.752
|
3.132
|
Italy
|
2.283
|
5.196
|
Others
|
13.344
|
20.709
|
Total
|
110.306
|
144.103
|
Imports of synthetic rubber from Russia dropped sharply in the second half of 2022 due to sanctions, with halogenated butyl rubber most affected.
Synthetic rubber exports from Poland totalled 250,469 tons in the period January to October 2022 for revenues of €508.235 million. Volumes in 2022 dropped from 335,892 tons in the first ten months in 2021 for €521.484 million with prices rising from €1560 per ton to €2038 per ton.
ESBR exports amounted to 110,306 tons in the first ten months in 2022 dropping from 144,103 tons in January to October 2021. Only 8,143 tons was exported from Poland in October after Synthos reduced operating rates at Oswiecim in response to high energy costs. Average prices for ESBR increased in 2022 to €1982 per ton against €1496 per ton in the previous year.
The largest destination for Polish exports is India which rose from 31,284 tons to 32,805 tons followed by Brazil which dropped from 18,536 tons to 11,522 tons whilst China reduced inward shipments from 10,426 tons to 1,666 tons.
Polish organic chemical imports Jan-Oct 2022
Polish Organic Chemical Imports (unit-kilo tons)
|
Product
|
Jan-Oct 22
|
Jan-Oct 21
|
Acetic Acid
|
38.024
|
37.028
|
Acetone
|
6.000
|
9.255
|
Adipic Acid
|
9.700
|
8.734
|
Butadiene
|
91.075
|
102.691
|
DEG
|
20.422
|
23.437
|
DINP/DOP
|
18.644
|
18.833
|
Ethyl Acetate
|
12.534
|
19.292
|
Ethylbenzene
|
89.117
|
112.876
|
Ethylene Glycol
|
43.783
|
44.443
|
Ethylene Oxide
|
10.457
|
22.280
|
Isopropanol
|
9.224
|
9.652
|
Maleic Anhydride
|
10.845
|
13.068
|
Methanol
|
807.856
|
562.252
|
Propylene
|
113.030
|
199.306
|
Propylene Glycol
|
17.300
|
21.467
|
Propylene Oxide
|
1.830
|
4.191
|
VAM
|
14.853
|
16.522
|
In the first ten months in 2022 Polish trade in organic chemicals comprised €1.907 billion for exports and €4.304 billion in imports.
The largest increase in imports of organic chemicals this year has been for methanol where volumes rose to 807,856 tons in the first ten months in 2022 from 562,252 tons in the same period in 2021.
This significant rise was attributed directly to the war in Ukraine which has meant that Poland has been used as a transit route for Russian origin methanol for delivery to South East Europe. Aside methanol, most imported organic chemicals in the table opposite are consumed inside Poland.
Export revenues comprise less than 50% of import costs with few product areas where Poland maintains a net export position. PTA was one where export shipments totalled 351,374 tons in the first ten months in 2022 against 315,836 tons in the same period in 2021.
Polish aromatic chemical trade Jan-Oct 2022
Polish Imports of Aromatics (unit-kilo tons)
|
Product
|
Jan-Oct 22
|
Jan-Oct 21
|
Ethylbenzene
|
89.117
|
112.876
|
Paraxylene
|
34.150
|
70.771
|
Phenol
|
87.700
|
34.464
|
Phthalic Anhydride
|
26.887
|
30.709
|
PTA
|
1.864
|
58.416
|
Styrene
|
84.556
|
90.498
|
TDI
|
62.229
|
68.414
|
Toluene
|
20.047
|
19.528
|
In the aromatics sector phenol imports into Poland recorded a large increase in the first ten months to 87,700 tons, of which 14,106 tons came from Russia. Supplies from Russia have however now been sanctioned by the EU and from August no deliveries were made to Poland. In the period August to October Imports from Spain started to fill the gap left by Russian exporters.
Polish Phenol Imports (unit-kilo tons)
|
Country
|
Q4 21
|
Q1 22
|
Q2 22
|
Q3 22
|
Finland
|
1.815
|
2.288
|
3.838
|
2.705
|
Germany
|
5.444
|
15.948
|
16.641
|
15.252
|
Russia
|
3.376
|
8.534
|
4.949
|
1.332
|
Spain
|
0.649
|
0.123
|
0.147
|
2.642
|
Total
|
11.284
|
26.893
|
25.575
|
21.931
|
On a quarterly basis phenol imports amounted to 21,931 tons in the third quarter against 25,575 tons in the second quarter and 26,893 tons in the first quarter. Germany is the main supplier of phenol to the Polish market, shipping 15,252 tons in the third quarter.
In other product areas, styrene imports amounted to 84,556 tons in the period January to October 2022 versus 90,498 tons in 2021 whilst ethylbenzene imports dropped from 112,876 tons to 89,117 tons. Nearly all of the ethylbenzene imports come from the Czech Republic.
Paraxylene imports into Poland totalled 34,150 tons in the first ten months last year, down from 70,771 tons in January to October 2021. Russia’s last shipment of paraxylene to Poland took place in April, amounting to 3,251 tons and taking the total for the year to 6,905 tons. Imports from Russia were replaced last year by inward shipments from Turkey, which amounted to 7,552 tons for the first ten months. Overall, for the period January to October 2022 imports of paraxylene from France into Poland totalled 16,584 tons.
Caprolactam was previously exported commodity from Poland but due to increased processing has now become a marginal net importer. In the first ten months in 2022 imports of caprolactam totalled 8,896 tons for €23.921 million, nearly all of which came from Germany.
Poland is a major exporter of benzene shipping 142,294 tons in the first ten months in 2022 against 84,157 tons in January-October 2021. Germany and the Czech Republic were the two largest destinations for Polish exports in 2022.
Higher caprolactam prices Jan-Oct 2022
Spolana Caprolactam Exports (unit-kilo tons)
|
Country
|
Jan-Oct 22
|
Jan-Oct21
|
Belgium
|
5.437
|
4.478
|
Germany
|
7.509
|
12.627
|
Italy
|
12.792
|
12.888
|
Slovenia
|
3.043
|
2.902
|
Switzerland
|
2.246
|
1.592
|
Others
|
0.304
|
0.281
|
Total
|
31.330
|
34.769
|
Spolana exported 31,330 tons of caprolactam from the Czech Republic in the first ten months last year against 34,769 tons in the same period in 2021. Revenues from caprolactam exports increased from €62.308 million to €81.407 million, after average prices rose from €1792 per ton to €2612 per ton. Italy was the largest destination for Spolana’s exports in 2022, with volumes to Germany reduced from 12,627 tons in January to October 2021 to 7,509 tons.
Hungarian organic chemical trade 2022
Hungarian imports of acrylonitrile (unit-kilo tons)
|
Country
|
Jan-Sep 22
|
Jan-Sep 21
|
Belarus
|
0.000
|
2.724
|
Germany
|
1.999
|
0.000
|
France
|
6.017
|
4.270
|
Netherlands
|
19.912
|
17.057
|
Russia
|
1.985
|
0.965
|
Others
|
0.477
|
0.000
|
Total
|
30.390
|
25.015
|
Hungary exports a range of organic chemicals including propylene, isocyanates, maleic anhydride, etc, whilst imports include styrene, methanol, acrylonitrile, etc.
Hungarian aniline imports (unit-kilo tons)
|
Country
|
Jan-Sep 22
|
Jan-Sep 21
|
Belgium
|
11.716
|
4.162
|
China
|
0.000
|
71.658
|
Czech Republic
|
62.085
|
74.618
|
Others
|
0.000
|
2.654
|
Total
|
73.801
|
153.092
|
Acrylonitrile imports into Hungary increased in the first nine months to 30,390 tons against 25,015 tons in the same period in 2021. Costs increased from €43.082 million to €67.150 million. The largest supplier of acrylonitrile to Hungary in the first three quarters last year was the Netherlands, accounting for 19,912 tons for €48.532 million.
Aniline imports into Hungary dropped in the first three quarters in 2022 to 73,801 tons from 153,092 tons in the same period in 2021. Imports of aniline from China amounted to 71,658 tons in the first three quarters in 2021 but long-haul imports have stopped since the start-up of BorsodChem’s new aniline plant at Berente. Imports from BorsodChem’s Ostrava plant continue to be imported for MDI production in Hungary.
Hungarian maleic anhydride exports Q1-Q3 2022
Maleic anhydride export prices from Hungary averaged €2.281 per ton in the first three quarters in 2022 against €1.565 for the same period in 2021.
Revenues from sales of 15,988 tons in January to September 2022 totalled €35.116 million versus 14,136 tons in the same period in 2021 for €23.148 million. Poland was the largest consumer of Hungarian maleic anhydride which is produced at Szazhalombatta. Continuing high costs of freight and overall logistics problems gave rise to both import and export constraints. The European market continued to experience logistics problems caused by the pandemic.
Polish chemical and polymer imports from Russia
Imports of chemicals and polymers from Russia into Poland dropped in most product areas after July-August last year following the introduction of official sanctions by the EU, self-sanctioning by companies together with resulting logistical issues. Methanol shipments from Russia were one of the few product
Polish imports of chemicals & polymers from Russia
(unit-tons)
|
Product
|
Jan-Dec 21
|
Jan-Jul 22
|
Aug-Oct 22
|
Methanol
|
467.624
|
551.932
|
191.793
|
PP-homo
|
155.805
|
52.623
|
0.049
|
Propylene
|
48.512
|
22.433
|
0.000
|
Paraxylene
|
40.085
|
6.905
|
0.000
|
Isoprene rubber
|
37.821
|
21.446
|
3.003
|
HDPE
|
32.442
|
13.670
|
3.069
|
Butadiene rubber
|
18.254
|
16.022
|
2.041
|
Halogenated butyl rubber
|
14.474
|
10.226
|
1.322
|
LDPE
|
13.746
|
6.013
|
0.000
|
Phthalic anhydride
|
12.280
|
4.576
|
0.160
|
Phenol
|
9.746
|
14.105
|
0.000
|
areas that actually increased in the second half of 2022, with Poland increasing its role as a trading link to South East Europe. However, methanol will come under EU sanctions from 8 January and thus direct purchases from Russia will be no longer possible.
Polish PTA sales Jan-Oct 2022
Polish PTA Exports (unit-kilo tons)
|
Country
|
Jan-Oct 22
|
Jan-Oct 21
|
Belarus
|
4.409
|
10.198
|
Germany
|
281.180
|
274.202
|
Lithuania
|
33.382
|
21.227
|
Switzerland
|
6.275
|
3.797
|
Turkey
|
5.984
|
0.000
|
Others
|
20.144
|
6.411
|
Total
|
351.374
|
315.836
|
PTA exports from Poland amounted to 351,374 tons in the first ten months in 2022 against 315,836 tons in the same period in 2021. PTA imports into Poland dropped in the first ten months to 1,864 tons versus 37,975 tons in the same period last year. Due to higher production at Wloclawek Poland reduced imports of PTA in the first ten months to 1,864 tons against 58,416 tons in January to October 2021.
Average prices for Polish PTA exports amounted to €1035 per ton in the first ten months against €630 in the same period in 2021. Germany remained the main customer for Polish PTA, taking 281,180 tons in January to October 2022 against 274,202 tons in the same period in 2021. Lithuania was the second largest destination for PTA export shipments, taking 33,382 tons versus 21,227 tons.
Polish solvent imports, Jan-Oct 2022
Isopropanol imports rose from 9,652 tons in January-October 2021 to 9,224 tons in 2022s year, with Germany providing the largest volume of 2,387 tons. Russia supplied 671 tons in the first four months in 2022, but similarly to some other products trading has been phased out.
Acetic acid imports into Poland amounted to 38,024 tons in the first ten months in 2022 versus 37,028 tons in the same period in 2021. Import sources for 2022 included the UK with 13,027 tons for €15.248 million, the US with 10,118 tons for €12.332 million, and Germany with 6,487 tons for €7.817 million.
Ethyl acetate imports declined from 19,292 tons in January to October 2021 to 12,534 tons in 2022. Supplies were diversified between Belgium, Germany, UK and the Netherlands. Vinyl acetate imports dropped from 16,522 tons in January to October 2021 to 14,853 tons in 2022 for costs of €31.197 million.
Polish solvent exports, Jan-Oct 2022
Solvent exports from Poland are concentrated mostly on acetone and normal butyl acetate. Acetone exports in the first ten months in 2022 amounted to 15,749 tons against 14,894 tons in the same period in 2021. Exports in 2022 were spread largely though Europe, including the Czech Republic, Germany, Hungary, Italy and Romania.
N-butyl acetate export increased from 13,363 tons in January to October 2021 to 15,102 tons in the same period in 2022. Germany was the largest destination for Polish butyl acetate exports last year, amounting to 7,970 tons in January to October followed by Italy with 3,411 tons. N-butyl acetate is produced in Poland by Solvent Wistol at Oswiecim.
Central European isocyanates, Jan-Oct 2022
Czech MDI Imports (unit-kilo tons)
|
Country
|
Jan-Oct 22
|
Jan-Oct 21
|
China
|
2.538
|
2.232
|
Belgium
|
10.038
|
10.517
|
Germany
|
7.033
|
12.962
|
Hungary
|
6.625
|
6.328
|
Netherlands
|
3.063
|
2.197
|
Others
|
0.365
|
2.138
|
Total
|
29.662
|
36.374
|
MDI imports into the Czech Republic totalled 29,662 tons in the first ten months in 2022 against 36,374 tons in the same period in 2021. Total costs for MDI imports dropped from €85.456 million in January to October 2021 to €81.587 million in the same period in 2022, with average prices rising from €2330 per ton to €2725.
Polish TDI Imports (€ million)
|
Country
|
Jan-Oct 22
|
Jan-Oct 21
|
Belgium
|
4.195
|
2.522
|
Germany
|
44.475
|
46.812
|
Hungary
|
87.256
|
79.446
|
Netherlands
|
14.182
|
21.066
|
Saudi Arabia
|
6.957
|
7.165
|
South Korea
|
11.452
|
0.000
|
Others
|
10.381
|
15.513
|
Total
|
178.900
|
172.524
|
Ktons
|
62.470
|
66.842
|
Av price per ton
|
2864
|
2581
|
TDI imports into Poland amounted to 62,470 tons in the period January to October 202 against 66,842 tons in the same period in 2021. Average prices increased from €2581 per ton to €2861.
Hungary remained the largest supplier to the Polish market, shipping 30,763 tons versus 31,558 tons in January to October 2021 whilst Germany reduced shipments from 18,600 tons to 16,050 tons. South Korea started supplying TDI to Poland in 2022, shipping 4,212 tons for €11.452 million. Other important European markets for Hungarian TDI exports include Romania and Germany.
Polish MDI Imports (€ million)
|
Country
|
Jan-Oct 22
|
Jan-Oct 21
|
Germany
|
81.827
|
94.909
|
Netherlands
|
53.163
|
40.024
|
Hungary
|
83.373
|
87.568
|
Belgium
|
66.908
|
52.062
|
Saudi Arabia
|
6.606
|
8.137
|
Others
|
31.795
|
23.967
|
Total
|
323.672
|
306.666
|
Ktons
|
123.068
|
157.567
|
Av Price
|
2.630
|
1.946
|
Although European demand is faced by recessionary trends and slowly declining feedstock costs global capacity constraints may help to sustain prices.
MDI imports into Poland dropped from 157,567 tons in the first ten months in 2021 to 123,068 tons in the same period in 2021. Import sources were diversified largely between Germany, the Netherlands, Hungary and Belgium. Despite the fall in import volumes costs increased to €323.672 million against €306.666 million, increasing the average price from €2349 per ton to €2593 per ton in 2022.
In terms of price direction MDI numbers started softening towards the end of the third quarter, dropping from the peak of €2755.8 per ton in May to €2468.4 per ton in September. For the same month September in 2021 prices had climbed to €2696.9 per ton due to post-pandemic growth but with a very different picture in 2022 prices have started to drop slightly.
Feedstock costs are falling also but demand is key concern. Due to this factor Covestro has paused development of a $1.5 billion MDI plant project originally intended for the US, with short-term demand expectations weakening due to slowing global GDP growth. At the same time Covestro AG is going ahead with the construction of a new aniline plant at Antwerp. The plant is scheduled provisionally in early 2025. The expansion of aniline production is part of Covestro’s global MDI strategy. The aim is to strengthen the production network for MDI in view of a further increase in demand. In Brunsbüttel, Germany, Covestro already commissioned a new plant for the production of MDI using the particularly energy-efficient AdiP technology in 2020.
Central European methanol trade Jan-Oct 2022
Polish Methanol Exports (unit-kilo tons)
|
Country
|
Jan-Oct 22
|
Jan-Oct 21
|
Austria
|
63.880
|
22.371
|
Czech
|
65.786
|
51.832
|
Germany
|
99.614
|
73.997
|
Romania
|
40.362
|
0.000
|
Slovakia
|
44.498
|
3.499
|
Ukraine
|
15.181
|
0.402
|
Hungary
|
41.732
|
0.215
|
Others
|
10.873
|
0.484
|
Total
|
381.926
|
152.800
|
Exports of methanol from Poland totalled 381,926 tons in the first ten months in 2022 for €164.054 million, based on an average price of €434 per ton. This compares against 152,800 tons in the same period in 2021 for $55.179 million at an average price of €361 per ton.
Polish Methanol Imports (unit-kilo tons)
|
Country
|
Jan-Oct 22
|
Jan-Oct 21
|
Azerbaijan
|
1.138
|
0.000
|
Belarus
|
0.044
|
2.620
|
Finland
|
50.816
|
58.013
|
Lithuania
|
0.856
|
7.514
|
Germany
|
87.956
|
67.166
|
Netherlands
|
0.650
|
25.739
|
Norway
|
24.537
|
18.497
|
Russia
|
623.958
|
368.700
|
Others
|
9.227
|
11.418
|
Total
|
799.181
|
559.667
|
Av Price Per
|
372.600
|
343.000
|
The transformation in the market dynamics has been quite significant with Poland developing large market shares from virtually nothing in Slovakia, Hungary and Romania and increasing market shares in countries such as Germany, the Czech Republic and Austria. Ukraine has also started to purchase methanol from Poland with 15,181 tons purchased in the period June to October last year. Even if the price is higher than Russian sources Ukraine will prefer to buy from the other suppliers. Although Poland exported a record amount in 2022 and should be able to maintain some of the new buying links in South East Europe, the EU sanctions mean that Polish traders need to seek out alternative sources.
Imports of methanol into Poland totalled 799,181 tons in the first ten months in 2022 versus 559,667 tons in the same period in 2021. Costs totalled €178.813 million in January to October. The average price for Polish imports comprised €373 per ton in the first ten months this year, and for Russia in particular €372 per ton. From 8 January this year EU sanctions will apply to methanol from Russia and thus major changes are expected in the market structure in the next few months.
Czech Methanol Imports (unit-kilo tons)
|
Country
|
Jan-Oct 22
|
Jan-Oct 21
|
Germany
|
5.693
|
9.672
|
Russia
|
25.060
|
46.229
|
Poland
|
32.380
|
19.522
|
Others
|
1.202
|
1.667
|
Total
|
65.123
|
77.114
|
Av € per ton
|
471.294
|
359.027
|
Russia increased exports to Poland in the first ten months in 2022 to 623,958 tons from 368,700 tons. Norway increased shipments from 18,497 tons to 24,537 tons. Germany increased exports to Poland in the first ten months in 2022 to 87,956 tons from 67,166 tons in the same period last year.
Hungarian methanol imports (unit-kilo tons)
|
Country
|
Jan-Sep 22
|
Jan-Sep 21
|
Austria
|
1.285
|
2.773
|
Germany
|
8.961
|
1.467
|
Netherlands
|
6.233
|
1.776
|
Poland
|
14.702
|
0.309
|
Russia
|
10.763
|
36.465
|
Slovenia
|
3.044
|
0.457
|
Slovakia
|
11.881
|
31.137
|
Others
|
1.429
|
15.561
|
Total
|
58.298
|
89.946
|
Czech imports of methanol amounted to 65,123 tons in the first ten months in 2022 against 77,114 tons in the same period in 2021. Russia accounted for 25,060 tons in January-October 2022 against 46,229 tons in the same period last year, followed by Poland which increased from 19,522 tons to 32,380 tons. Prices per ton for methanol imports into the Czech Republic increased from €359 in the first ten months in 2021 to €471 this year.
Hungarian imports of methanol totalled 58,298 tons in the first nine months for a total cost of €27.258 million. Prices averaged €468 per ton in the first nine months against €328 per ton in the same period in 2021, when volumes were much higher at 89,946 tons for costs of €29.468 million. Imports from Russia fell from 36,465 tons in the first nine months in 2021 to 10,763 tons in the same period this year.
The drop in exports from Russia was due to war in Ukraine and the difficulties in shipping product by rail. The disruption to rail shipments has also affected imports from Slovakia where volumes declined from 31,187 tons to 11,881 tons and the opening of a new window to the north from Poland where imports increased from 309 tons in January to September 2021 to 14,702 tons.
Future for Russian chemicals industry
Russian chemical trade 2022
Imports of chemical products in 2022 into Russia are estimated to have fallen by around 20% against the imports of more than $30 billion In 2021. In many cases it is quite difficult to replace these falling imports. Most of the 79 products that were included in the sixth package of EU sanctions are not produced in Russia. Solving these shortages is only possible with the higher added value development of chemical technologies. Most of the advanced equipment has been imported for many decades in the absence of a proficient domestic chemical engineering sector.
An eighth package of EU sanctions against Russia was introduced on 5 October, including a new range of speciality chemicals but also widening the category of mainstream chemicals to include methanol which had previously been excluded. Methanol is the most important organic chemical exported from Russia by volume and value. Already products from the polymer and synthetic rubber sectors had been sanctioned by the EU in the fifth package, and the eight package has only expanded this list. Benzene is not included, but main derivatives such as caprolactam, phenol and styrene are included. Propylene monomer remains one of the few commodity chemicals in the organic sector which has not been placed under sanctions. Russia exports on average around 100,000 tpa of propylene.
|
Whilst Russia continues to attack Ukraine it is difficult to care what happens to Russian industry or the general economy. Even if Russia is driven out of Ukraine sanctions for the most part will probably stay in place until some sort of fairer political system or leadership is created. Self-sanctioning may be even harder to reverse as businesses that left Russia last year will have incurred significant losses and may want to see a more democratic form of government, or at least one more trustworthy.
Although the Russian chemical industry performed relatively well overall in 2022 taking into account the economy’s decoupling from Europe there are huge challenges ahead in 2023.
Capability of Russian chemical engineering
Russia inherited a relatively weak chemical engineering sector from the dissolution of the USSR and over the past three decades Russia has not prioritised its development. Under the USSR chemical engineering was seen as a secondary function to chemical R&D and many of the chemical plants constructed performed poorly against Western analogues. In the 1980s numerous licenses were purchased from the West to construct modern chemical plants which provides the basis for Russian technology imports which have predominated ever since. Ethylene plants in Russia that were built using Soviet or East European technology were revamped, modernised, recalibrated, etc to the point where all the original equipment has been replaced.
Russia’s chemical engineering sector is capable at this stage only able to use part of these resources. Russia’s largest petrochemical complex ZapSibNeftekhim uses licensed Ineos and LyondellBasell technologies simply because there is no domestic alternative. Accordingly, Russia does not produce the stainless steel at the quality required for petrochemical plants and thus it needs to be imported.
Chemical product industries face a double challenge in the need to fill the commodity deficit that have arisen as a result of the departure of Western companies and the limited raw material base. The solution to these problems lies in a competent investment policy, the development of integrated logistics solutions, and the development of a research base. These points have been made before though with impact.
|
This ranges from developing logistics for new markets to finding vital components for the production processes. In some production cycles at Russian chemical plants Western reagents or catalysts are difficult to replace, even though that might constitute as little as 1% of total costs. Some of the sanctioned fine chemicals or speciality products have been identified for production inside Russia but these plans can take several years to implement.
Moreover, the launch of production does not mean that the needs for a particular product will be fully satisfied by Russia’s own production and that imports will no longer be needed. All of this of course is based on the assumption that Russia is not likely to change for many years, even if Putin is ousted there are no signs that the mindset of the next Russian leadership would be more conciliatory or perhaps less paranoid.
In the short term any slowdown or problems for the Russian chemical industry may be seen in the context of helping to accelerate the end of Russia’s presence in Ukraine, whilst on the long term it is not beneficial globally for Russia to disappear from the supply chain map. The main consequence of recent events was the complete disappearance from the Russian market of Eastern European raw materials, which previously accounted for about 90% of all kaolin clays consumed in physical volumes.
Russian Petrochemical Production
(unit-kilo tons)
|
Product
|
Jan-Oct 22
|
Jan-Oct 21
|
Ethylene
|
3,613.0
|
3,614.7
|
Propylene
|
2,267.2
|
2,507.7
|
Benzene
|
982.0
|
1,054.1
|
Styrene
|
588.9
|
591.8
|
Phenol
|
190.1
|
218.3
|
Russian petrochemical production Jan-Oct 2022
Russian ethylene production decreased slightly in the first ten months from 3.615 million tons in 2021 to 3.613 million tons in the same period in 2022, whilst propylene dropped from 2.508 million tons to 2.267 million tons. Demand for olefins for the production of derivatives came under pressure in the third quarter, as the impact of sanctions feed through to the market.
Russian polymer production Jan-Oct 2022
Russian Polymer Production
(unit-kilo tons)
|
Product
|
Jan-Oct 22
|
Jan-Oct 21
|
Plastics in Bulk
|
8,561.0
|
9,072.0
|
Polyethylene
|
2,867.0
|
2,866.0
|
Polystyrene
|
482.3
|
457.6
|
PVC
|
816.2
|
840.1
|
Polyamide
|
140.3
|
164.7
|
Synthetic Rubber
|
1,271.0
|
1,414.0
|
Synthetic Fibres
|
157.1
|
167.2
|
Polyethylene production in Russia followed ethylene production trends closely and edged slightly higher from 2.866 million tons in January to October 2021 against 2.867 million tons in the same period in 2022. Synthetic rubber was the product most affected in 2022 from the closure of European market for categories such as butadiene rubber and butyl rubbers. Hence, production fell from 1.414 million tons from January to October 2021 to 1.271 million tons.
Russian Base Chemical Production
(unit-kilo tons)
|
Product
|
Jan-Oct 22
|
Jan-Oct 21
|
Caustic Soda
|
1,054.5
|
1,067.1
|
Soda Ash
|
2,903.0
|
2,816.0
|
Ammonia
|
14,100.0
|
16,600.0
|
Nitrogen Fertilisers
|
9,766.0
|
9,373.0
|
Phosphate Fertilisers
|
3,527.0
|
3,504.0
|
Potash Fertilisers
|
6,139.0
|
8,906.0
|
Components, additives for Russian base chemicals production
Production of chemicals and polymers could become more difficult in 2023 as producers are required to replace key components for technical processes that are only available in countries that have imposed sanctions. Last year producers were largely dependent on usage of stockpiles of additives, catalysts, etc, but some of these supplies are running out and may prove hard to replace. Where replacements from China and Turkey are available prices have increased from suppliers in those countries.
Nizhnekamskneftekhim-EP 600 project
The launch date of the new EP-600 complex at Nizhnekamskneftekhim has been reset to 2024 from the original completion date of 2023, which was disrupted by the loss of contractor. In July 2022 SIBUR decided to terminate the contract with Gemont, the Russian subsidiary of the Turkish Gemont, as the general contractor for the construction of the EP-600 complex. At the end of 2022 the project was estimated at around 70% of the construction schedule.
|
Completion date for Amur Gas Chemical Complex moved to 2026
SIBUR has moved its completion date for the Amur Gas Chemical Complex near Svobodny in the Russian Far East from Q2 2024 to sometime in 2026. Even this date is provisional at this stage; SIBUR’s shareholders are linked to the Kremlin and tries to provide public statements that suggest all is well. However, there are non-SIBUR sources that suggest replacing Linde and Maire Tecnimont from the Amur project may be beyond SIBUR.
Since the introduction of sanctions in 2022 the departure of Linde from the construction of the Amur Gas Chemical Complex the project has slowed down in view of some large technical challenges. Equipment deliveries by river have been slower also, with the first batch this delayed from May to August. The first vessel started its river journey from the port of De-Kastri on 5 August, weighing 2,370 tons and originating from China.
Although most of the equipment for the Amur Gas Chemical Complex is fully available, the speed of installation of the pyrolysis unit is moving more slowly than before and reconfiguration is required for many aspects of the production facilities. The construction was set up to be synchronized with the gradual reaching full capacity of Gazprom's Amur GPP, which will supply ethane and LPG. With accurate information scarce it is not clear if these delays are holding up completion of the Amur Gas Processing Plant as the chemical complex was originally a key part of the construction plan.
Russian ethylene production, Jan-Oct 2022
Russian Ethylene Production (unit-kilo tons)
|
Producer
|
Jan-Oct 22
|
Jan-Oct 21
|
Angarsk Polymer Plant
|
173.1
|
168.6
|
Kazanorgsintez
|
513.7
|
461.0
|
Stavrolen
|
268.3
|
270.9
|
Nizhnekamskneftekhim
|
546.0
|
502.3
|
Novokuibyshevsk Petrochemical
|
34.4
|
38.9
|
Gazprom n Salavat
|
273.2
|
252.6
|
SIBUR-Kstovo
|
301.2
|
311.3
|
SIBUR-Khimprom
|
46.3
|
44.7
|
Tomskneftekhim
|
216.7
|
244.7
|
Ufaorgsintez
|
77.4
|
74.6
|
ZapSibNeftekhim
|
1162.7
|
1245.0
|
Total
|
3613.0
|
3614.7
|
Russian ethylene production totalled 3.613 million tons in the first ten months in 2022 against 3.615 million tons in the same period in 2021. Supply currently appears to be exceeding demand, with producers under pressure to reduce prices for merchant ethylene in the Volga-Urals region. ZapSibNeftekhim at Tobolsk produced 1.163 million tons in January to October 2022 down from 1.245 million tons in 2021.
Other plants compensated for the lower production at Tobolsk. In Tatarstan Nizhnekamskneftekhim produced 546,000 tons of ethylene against 546,000 tons in 2021 whilst Kazanorgsintez increased from 461,000 tons to 513,700 tons.
Other important ethylene producers included SIBUR-Kstovo which produced 301,200 tons versus 311,300 tons. In Bashkortostan Gazprom neftekhim Salavat increased production from 252,600 tons to 273,200 tons, whilst Ufaorgsintez increased production from 74,600 tons to 77,400 tons. Stavrolen at Budyennovsk reduced ethylene production to 268,300 tons against 270,900 tons in the first ten months in 2021.
SIBUR-Neftekhim, ethylene oxide
SIBUR-Neftekhim expects to receive state support to expand capacities for the production of ethylene oxide and glycols at Dzerzhinsk in the Nizhniy Novgorod region. The company is reconstructing the production of ethylene oxide and glycols to increase its capacity to 1,067 tons per day. The productivity for equivalent ethylene oxide will be increased by 18.6% to 355.670 tpa, and for commercial ethylene oxide by 29% to 168,000 tpa. The production capacity of SIBUR-Neftekhim, as of July 2021, amounted to 130,000 tpa of ethylene oxide, 320,500 tpa of glycols, in addition to 35,500 tpa of acrylic acid.
|
Tomskneftekhim completed scheduled stop repairs in September and is switching to an increased overhaul interval from a two-year to a four-year cycle. Investments in the modernisation of equipment amounted to about 1 billion roubles. During the stoppage, Tomskneftekhim continued to implement digital tools, such as an ultrasonic detector for detecting leakage of gas media and video surveillance systems.
Ethylene glycol market in Russia
The ethylene glycol market in Russia has undergone significant changes in the past year as a side-effect of Russia’s invasion of Ukraine. Both exports and imports have been affected by sanctions, coupled with logistical difficulties resulting from port difficulties, etc.
SIBUR-Neftekhim Glycols Production 2021
|
Product
|
Volume (ktpa)
|
MEG
|
247
|
DEG
|
29
|
TEG
|
1.5
|
PEG
|
0.850
|
Until the Russian invasion and occupation SABIC’s MEG deliveries had been shipped to Kaliningrad for Ekopet’s PET production for several years, but now Ekopet has been forced to purchase from domestic sources and SIBUR-Neftekhim in particular. When Ekopet could not receive MEG from SABIC. SIBUR-Neftekhim quickly replaced the Saudis, establishing monthly deliveries of up to 6,000 tons of the product.
Instead of exporting MEG, SIBUR-Neftekhim is now focused on the domestic market where it is now the major supplier. Ethylene glycols and ethylene oxide from SIBUR-Neftekhim allow supply capabilities even to unplanned large customers.
In the medium term, SIBUR's Dzerzhinsk site will remain the main production plant for ethylene glycol products for the domestic market. Together with plants at Nizhnekamskneftekhim and Kazanorgsintez Russian capacity for ethylene glycols ranges between 400-450,000 tpa. SIBUR-Neftekhim provides about two thirds of the total volume of ethylene glycols produced in the country. This includes MEG, diethylene glycol, triethylene glycol and polyglycols (DEG, TEG, PEG), as well as ethylene oxide. The latter, in addition to being the raw material for glycols, is sold separately.
Russian propylene production, sales and exports, Jan-Oct 2022
Russian Propylene Production (unit-kilo tons)
|
Producer
|
Jan-Oct 22
|
Jan-Oct 21
|
Angarsk Polymer Plant
|
94.5
|
93.1
|
Kazanorgsintez
|
41.3
|
38.3
|
Lukoil-NNOS
|
234.1
|
210.6
|
Stavrolen
|
124.2
|
108.6
|
Nizhnekamskneftekhim
|
268.0
|
248.8
|
Novokuibyshevsk
|
24.2
|
53.1
|
Omsk Kaucuk
|
43.1
|
28.5
|
Polyom
|
151.7
|
158.6
|
Gazprom Neftekhim Salavat
|
119.9
|
98.0
|
SIBUR Kstovo
|
130.7
|
149.1
|
SIBUR-Khimprom
|
68.1
|
51.6
|
Tomskneftekhim
|
112.5
|
131.1
|
SIBUR Tobolsk
|
0.0
|
3.0
|
Ufaorgsintez
|
123.3
|
139.0
|
ZapSibNeftekhim
|
726.3
|
996.3
|
Total
|
2262.0
|
2507.7
|
Russian propylene production amounted to 2.262 million tons in the first ten months in 2022 against 2.508 million tons in the same period in 2021. The combined ZapSibNeftekhim and SIBUR Tobolsk plants reduced production from 999,300 tons in the first ten months in 2021 to 726,300 tons in 2022, the decline occurring due to extended maintenance. In Tatarstan Nizhnekamskneftekhim produced 268,000 tons of propylene in the first ten months in 2022 whilst Kazanorgsintez increased production from 38,300 tons to 41,300 tons.
Russian Propylene Exports (unit-kilo tons)
|
Producer
|
Jan-Oct 22
|
Jan-Oct 21
|
Lukoil-NNOS
|
60.4
|
78.0
|
SIBUR-Kstovo
|
10.6
|
15.4
|
Angarsk Polymer Plant
|
13.8
|
4.2
|
Stavrolen
|
18.7
|
29.7
|
Total
|
103.4
|
127.3
|
In Bashkortostan Gazprom neftekhim Salavat produced 119,900 tons of propylene versus 98,000 tons whilst Ufaorgsintez reduced production from 139,000 tons to 123,300 tons.
Russian Propylene Domestic Sales (unit-kilo tons)
|
Company
|
Jan-Oct 22
|
Jan-Oct 21
|
Angarsk Polymer Plant
|
23.7
|
30.5
|
SIBUR-Kstovo
|
104.6
|
110.8
|
Lukoil-NNOS
|
146.3
|
129.9
|
Stavrolen
|
25.7
|
3.6
|
Others
|
15.1
|
1.6
|
Total
|
328.6
|
277.8
|
In the Nizhny Novgorod region SIBUR-Kstovo reduced production of propylene from 149,100 tons to 130,700 tons in 2022. Lukoil-NNOS at Kstovo increased production from 210,600 tons to 234,100 tons.
Russian propylene sales Jan-Oct 2022
Russian Propylene Domestic Purchases
(unit-kilo tons)
|
Consumer
|
Jan-Oct 22
|
Jan-Oct 21
|
Saratovorgsintez
|
138.4
|
117.0
|
Volzhskiy Orgsintez
|
9.7
|
8.6
|
Akrilat
|
20.0
|
5.2
|
SIBUR-Khimprom
|
31.8
|
43.5
|
Omsk-Kaucuk
|
5.5
|
12.4
|
Tomskneftekhim
|
2.2
|
3.3
|
ZapSibNeftekhim
|
90.0
|
53.6
|
Ufaorgsintez
|
10.7
|
8.3
|
Khimprom Kemerovo
|
6.1
|
5.6
|
Plant of Synthetic Alcohol
|
4.0
|
8.2
|
Others
|
7.6
|
0.8
|
Total
|
328.6
|
277.8
|
Propylene exports from Russia amounted to 103,400 tons in the first ten months in 2022 against 127,300 tons in the same period in 2021. Lukoil-NNOS reduced export shipments from 78,000 tons to 60,400 tons whilst SIBUR-Kstovo shipped 10,600 tons against 15,400 tons in January-October 2021.
Russian sales of propylene on the domestic merchant market amounted 328,600 tons in the first ten months in 2022 against 277,800 tons in the same period in 2021. The largest propylene supplier to the domestic market was Lukoil-NNOS, shipping 146,300 tons against 129,900 tons in January to October 2021. In the first ten months in 2022 ZapSibNeftekhim purchased 90,000 tons of propylene on the merchant market against 53,600 tons in the same period in 2021.
Russia’s largest merchant consumer Saratovorgsintez increased purchases of merchant propylene from 117,000 tons last year when the acrylonitrile plant underwent an extended shutdown to 138,400 tons, and SIBUR-Khimprom at Perm reduced purchases from 43,500 tons to 31,800 tons.
Russian polyethylene production Jan-Oct 2022
Russian polyethylene production totalled 2.867 million tons in the first ten months in 2022 against 2.866 million tons in the same period in 2021. Even though export activity to the EU countries was strong until July last year production was lower due to outages, particularly ZapSibNeftekhim at Tobolsk.
SIBUR share of polyolefins in total revenues
ZapSibNeftekhim increases production of polyethylene pipe grade
ZapSibNeftekhim reported an increase in the third quarter this year by 40% in the production of raw materials for the production of polyethylene pipes. By the end of 2022, SIBUR reported that the volume of production of all pipe grades of polymers rose by just over 50%. Furthermore as SIBUR reports, after passing the brand certification ZapSibNeftekhim will be able to produce up to 40,000 tpa of pipe grade polyethylene.
|
Polyethylene and polypropylene accounted for around 26% and 12% of SIBUR's respective revenues in 2022. ZapSibNeftekhim (part of Sibur) has commissioned an additional activator of chromium catalysts involved in the production of polyethylene. Subsequently, the company will be able to increase the production of high-tech grades of polyethylene by around 60% to 232,000 tpa. SIBUR also launched the production of a new brand of black pipe polyethylene. Grade PE 100 RC which is resistant to crack propagation.
Russian HDPE exports to China Jan-Oct 2022
Exports of HDPE from Russia to China fell in value terms from $294.9 million in the first ten months in 2021 to $209.6 million in the same period in 2022, with Russia’s share dropping from 4.8% of total Chinese imports to 3.3%. Although volumes into China were down overall Russian exporters lost some market share to other producers, largely from the Middle East.
Over 2022 China’s HDPE and LLDPE markets have been in the midst of their lowest levels of growth for at least two decades. Thus, any gains for Russian polyethylene producers from extra sales to the EU and Turkey in 2022 were offset by the drop in purchases from China.
Russian imports of polyethylene from South Korea Jan-Oct 2022
Russian imports of polyethylene from South Korea totalled 100,685 tons in the first ten months in 2022 against 78,550 tons in the same period in 2021, with average cost prices rising from $1547 per ton to $1669. Imports rose from South Korea last year due to lower shipments from Europe. South Korea was the largest supplier of LLDPE to Russia in 2021, providing 39.4% of the total 61,000 tons of imported product. Other suppliers included Finland with 24% and the US with 15%, but volumes from both of those sources have declined this year.
Polyethyene and gas processing project at Ust Luga
The timing of the project for the construction of a complex for the processing of ethane-containing gas (KPEG) in Ust-Luga has been shifted due to the exit of Linde. KPEG is a project undertaken by Rusgazvydobuvannya and Gazprom in the Leningrad Region. The main technological processes are combined at one site from primary gas processing with the separation of valuable components to the production of LNG and the production of polymers.
Capacities for Gas Processing and Gas Chemicals at Ust Luga
|
Product
|
Capacity
|
Gas processing
|
45 bcm
|
LNG
|
13 million tpa
|
Ethane
|
3.8 million tpa
|
LPG
|
2.4 million tpa
|
Pentane-hexane fraction
|
0.2 million tpa
|
Polyethylene (various grades)
|
3 million tpa
|
KPEG was initially intended to comprise Russia's largest gas processing enterprise (45 billion cubic metres per annum) and the largest LNG plant in Europe (13 million tpa), as well as the world's largest single polyethylene production capacity (up to 3 million tpa).
Due to the withdrawal of Linde finding another technology supplier is imperative for the survival of the project. The decision on financing is awaiting clarification based on finding a new licensor. Even though power sources and other units are being installed at the Ust Luga site for a gas processing and gas chemical complex there are doubts whether the entire project can be completed.
Originally it was planned to launch the first stages of the gas processing plant and the LNG plant for liquefying natural gas in late 2023 and late 2024. No new time limits have been set but if there is any prospect of completion 2027 is about the earliest date for completion.
Licensed technology from Linde has been sanctioned which is difficult to replace, and thus whilst officially these projects are proceeding to schedule at the very least, they are likely to incur long delays from the original 2024 target. In the meantime, Ruskhimalliance, a joint venture of Gazprom and Rusgazvydobuvannya, filed an application with the Arbitration Court of St. Petersburg and the Leningrad Region to protect property interests in relation to Linde. That application has since been withdrawn, but it indicates the difficulties faced in undertaking this project which are directly the result of Russia’s unprovoked invasion of Ukraine.
EU sanctions for more plastic products to take effect on 8 January 2023
The European Union, as part of the eighth package of sanctions against Russia, banned from early in 2023 the import of primary polymers and products, including plates, sheets, films, tapes, pipes, hoses, etc. In 2021 Russia supplied a total of $948 million worth of these materials to Europe (an average of $80 million per month). The largest category of exports consisted of polymers $327 million, and in second place plates, sheets, films and tapes of plastics ($109 million). In accordance with the new European sanctions, the export of such products can continue until 8 January 2023 under contracts concluded by 7 October 2022.
|
Russian polypropylene trade Jan-Oct 2022
South Korean Exports of Propylene Copolymers to Russia
|
|
Jan-Oct 22
|
Jan-Oct 21
|
Ktons
|
27.262
|
33.977
|
$ million
|
45.192
|
56.593
|
Russian imports of propylene copolymers from South Korea dropped in the first ten months to 27,262 tons from 33,077 tons in the same period in 2021. This is attributed to partly lower demand inside the Russian market and also a reorientation of Russian polypropylene producers towards the domestic market.
Russian producers are trying to compensate for sanctions and reduce dependency on other polypropylene imports for a wide range of industries and applications such as automotive, food packaging, etc.
The emergence of Azerbaijan as a copolymer supplier in 2021 has helped to reduce the impact of lost EU suppliers. Azerbaijan can produce up to 30,000 tpa of copolymers whilst Russian imports totalled 117,000 tons in 2021 of which EU suppliers provided around 33%.
SIBUR established the domestic market as its chief priority SIBUR for 2022 but as sanctions on sales to EU take effect the group is looking to develop new external markets. The group hopes to increase exports to the countries of East Asia and South East Asia but needs to create transit points and distribution centres.
Bashneft increases paraxylene capacity
Bashneft (part of Rosneft) has increased the production of paraxylene and orthoxylene at the Ufaneftekhim refinery after replacing the mineral adsorbent with a synthetic adsorbent of a new generation. Paraxylene capacity has been raised from 165,000 tpa to 260,000 tpa. In 2016, Bashneft and SIBUR signed an agreement which entails that the Ufaneftekhim refinery supplies at least 120,000 tpa of paraxylene until 2036.
Ekopet raw materials
PTA imports from China continue to provide the main basis for feedstock supplies for Ekopet at Kaliningrad. Realistically there are not many alternatives. Regarding MEG supplies the Ekopet plant has been unable to receive MEG from SABIC since last spring, which until Russia invaded Ukraine had been the traditional supplier over the past few years. SIBUR-Neftekhim promptly replaced the Saudis by setting up monthly deliveries of up to 6,000 tons of the product.
Russian PET market and imports from China
The Russian PET market in 2022 experienced a trend where domestic companies were forced to develop than expected in order to replace international brands. Russia remains a net importer of PET, with China providing over 80% of imports. Russia imported 194,000 tons of PET from China in 2021 for $195 million, and whilst in 2022 volumes declined slightly values increased due to increased prices. An important trend in the consumer market is the fall in incomes of the population which may affect consumption this year.
Russian PET recycling and impact on PET market
Primary PET consumption in Russia is yet to show an impact from recycling in terms of volume mainly because recycled PET is being used in other areas of polymer production rather than PET bottles. Its main feature is of environmental benefit. In September last year Polief started to produce Vivilen rPET from secondary raw materials and after reaching its design capacity, the company will be able to produce up to 144,000 tpa of such granules.
The reconfiguration of the Polief plant will increase its total capacity to 254,000 tons, thereby providing the domestic market with an additional 34,000 tpa and helping to meet the demand of local processors. Production of 34,000 tpa of flex is equivalent to around 1.7 billion used plastic bottles. Raw materials for the production of flex and its involvement in the granule Vivilen rPET can only be plastic transparent blue bottles from under the drinks, which undergo special processing.
PET-flex consumption market in Russia is estimated at 200-220,000 tpa of secondary raw materials. Due to the low volumes of collection and processing of secondary raw materials, the cost of such raw materials in Russia is higher than abroad. Regional operators have developed certain approaches to the selection of bottles that can be sent for recycling. For example, suitable bottles are processed at waste sorting complexes, as a rule, sorted by colour, and illiquid fractions (PET household chemicals) are also extracted from the PET container stream. The collected bottle in bales is sent for processing to flex suppliers.
Russian rubber production and consumption Jan-Oct 2022
Russian production of synthetic rubber dropped to 1.271 million tons in the first ten months in 2022 from 1.414 million tons in the same period in 2021. Production has declined since the introduction of EU sanctions. October production levels stabilised after the declines in the summer months but was still down on the same month last year.
Russian exports of synthetic rubber
The US International Trade Commission (USITC) announced that it will not impose anti-dumping duties on butadiene-styrene rubbers from Russia and the Czech Republic. The USITC decided that the sale of these products in the US at current prices does not cause material damage to American industry.
As Russian exports of butadiene rubber and halogenated rubber to Central Europe are affected by logistics and sanctions, other regions such as China and Asia become more important for these products. Although not falling under EU sanctions, isoprene rubber exports to China from Nizhnekamskneftekhim have risen sharply last year by values and volume. Exports of halogenated butyl rubber to China also rose in 2022 as Nizhnekamskneftekhim tried to compensate for the loss of European business with more sales in the East.
Nizhnekamskneftekhim-supply concerns
Russian leading producers of Synthetic Rubber
|
Country
|
2021 (ktons)
|
2021 (%)
|
Nizhnekamskneftekhim
|
704
|
47
|
Voronezhsintezkaucuk
|
346
|
23
|
Togliattikaucuk
|
197
|
13
|
Others
|
220
|
17
|
Total
|
1550
|
100
|
After an incident at the synthetic rubber complex in mid-December at Nizhnekamskneftekhim, the market raised fears of a possible decrease in the supply of products for the domestic market and for exports to China. However, partly due to the problems encountered with European exports Nizhnekamskneftekhim had built up a reasonable inventory of isoprene rubbers and thus the market probably was not expected to recognise any shortages during the repairs. In addition, Nizhnekamskneftekhim itself reported the availability of warehouse stocks and the imminent launch of reserve capacities.
Nizhnekamskneftekhim is the largest producer of synthetic rubber in Russia, and isoprene rubber in the world. Production in 2022 amounted to 704,000 tons which accounted for 47% of total Russian production. The second place is occupied by Voronezhsintezkaucuk with 23% or 346,000 tons and thirdly Togliattikaucuk which produced 197,000 tons or 13% of total production. Other producers included the Sterlitamak based where isoprene rubber and SBR are produced, the Krasnoyarsk Synthetic Rubber Plant which produces nitrile butadiene rubber and Efremov Synthetic Rubber Plant which produces polyisobutylene rubber.
Russian methanol production Jan-Oct 2022
Russian Methanol Production
(unit-kilo tons)
|
Producer
|
Jan-Oct 22
|
Jan-Oct 21
|
Shchekinoazot
|
1273.9
|
814.4
|
Gazprom Methanol
|
573.1
|
688.8
|
Metafrax Chemicals
|
966.0
|
989.0
|
Akron
|
79.9
|
86.8
|
Azot Novomoskovsk
|
191.9
|
213.3
|
Angarsk Petrochemical
|
24.7
|
25.4
|
Azot Nevinnomyssk
|
96.0
|
106.7
|
Tomet
|
404.9
|
546.6
|
Ammoni
|
82.6
|
99.1
|
Totals
|
3693.2
|
3570.2
|
Russia produced 3.693 million tons of methanol in the first ten months in 2022 against 3.570 million tons in the same period in 2021. Metafrax Chemicals at Gubakha produced 966,000 tons against 989,000 tons in January-October 2021, whilst Gazprom Methanol at Tomsk reduced production from 688,800 tons to 573,100 tons.
Russian Methanol Exports by Producer
(unit-kilo tons)
|
Producer
|
Jan-Oct 22
|
Jan-Oct 21
|
Azot Nevinnomyssk
|
4.5
|
5.1
|
Azot Novomoskovsk
|
70.3
|
78.1
|
Akron
|
4.9
|
6.8
|
Metafrax Chemicals
|
382.5
|
337.3
|
Gazprom Methanol
|
230.4
|
349.9
|
Tomet
|
120.2
|
198.1
|
Shchekinoazot
|
941.9
|
563.1
|
Ammoni
|
1.5
|
0.1
|
Total
|
1756.1
|
1538.5
|
Tomet reduced production from 546,600 tons to 404,900 tons in January to October 2022 whilst Shchekinoazot increased production from 814,400 tons to 1.274 million tons. Shchekinoazot was the only Russian producer to increase production last year.
Also, in the Tula Oblast Azot at Novomoskovsk reduced production from 213,300 tons to 191,900 tons. Ammoni in Tatarstan reduced methanol production from 99,100 tons in the first ten months in 2021 to 82,600 tons in the same period this year.
Russian methanol exports, Jan-Oct 2022
Russian Methanol Exports by Destination
|
Country
|
Jan-Oct 22
|
Jan-Oct 21
|
Belarus
|
200.728
|
105.820
|
China
|
81.552
|
0.000
|
Finland
|
631.998
|
656.956
|
Kazakhstan
|
31.959
|
19.971
|
Latvia
|
60.943
|
8.544
|
Lithuania
|
50.959
|
70.866
|
Netherlands
|
137.072
|
111.304
|
Poland
|
379.279
|
251.035
|
Romania
|
26.488
|
67.762
|
Slovakia
|
49.035
|
185.856
|
Turkey
|
96.885
|
6.423
|
Ukraine
|
11.916
|
49.937
|
Others
|
0.677
|
7.026
|
Total
|
1769.656
|
1543.613
|
Russian producer exports of methanol rose from 1.539 million tons in the first ten months in 2021 to 1.756 million tons in January to October 2022. Tomet exported 120,200 tons of methanol in the first ten months down from 198,100 tons in the same period in 2021.
Metafrax Chemicals increased exports from 337,300 tons in January to October 2021 to 382,500 tons in 2022 whilst Gazprom Methanol reduced exports from 349,900 tons to 230,400 tons. The largest Russian exporter in the first ten months was Shchekinoazot shipping 941,900 tons versus 563,100 tons in January to October 2021.
Destination figures for methanol exports comprised 1.770 million tons for the first ten months versus 1.544 million tons last year. Finland accounted for 631,998 tons of Russian methanol exports in the first ten months against 656,956 tons in the same period in 2021. Poland increased deliveries from Russia from 251,035 tons to 379,279 tons whilst exports to the Netherlands rose from 111,304 tons to 137,072 tons. The overall rise in exports to the Netherlands was due to higher production and transhipment in 2022 from Tomet at Togliatti but these shipments stopped in the second half of the year. Direct exports to Hungary, Romania, Slovakia and Ukraine stopped earlier in 2022. Most of the methanol purchases made by those countries last year started in Poland. The largest Ukrainian purchaser Ukrgasvydobuvannya (which uses methanol in the extraction and transportation of gas) has stressed that the product has to be of non-Russian origin. From 8 January onwards Polish traders will be unable to access Russian methanol due to the introduction of EU sanctions.
Market overview & sanctions
The introduction of sanctions by the EU against Russian methanol exports states that all transactions for contracts concluded prior and to 7 October 2022 need to be completed by 8 January 2023. This would clearly be a major setback for Russian producers, and the overall Russian market which is heavily dependent on exports to the European countries. On average around 70% of exports are directed monthly to the EU. It is not feasible to be able to replace this trade, at least in the short term and probably even the medium term considering the geographical locations of the plants. New destinations for Russian exports this year have included China and Turkey, but volumes to both countries are limited by logistical hurdles. Most plants in Russia are located in the western parts of the country that make selling to China or the Far East difficult logistically and economically.
The share of the country’s methanol exports to the EU remained significant last year measured against total exports, despite the situation in Ukraine. Although dropping to 58.9% of total exports in July, shipments to the EU rebounded in August following a resumption of deliveries to Finland. European markets provide the best profitability for Russian producers, the shortest lead-times, etc, but self-sanctioning has turned away some consumers particularly where alternative sources are available. Polish traders became very active in 2022 in sourcing Russian methanol for redistribution in Central and South East Europe.
Russian methanol exports and prospects for 2023
For the first ten months the Russian methanol market performed relatively under the conditions of war, sanctions and difficulties in doing business generally.
Domestic demand has held up on the surface, but consumption is showing signs of slowing and together with internal processing cannot provide a substitute for export activity. Production at Russian methanol plants weakened over the summer due to shutdowns, notably Metafrax. Although August saw higher volumes the industry is now faced with challenges in the face of EU sanctions.
Russian Methanol Supply/Demand Balance
(unit-kilo tons)
|
|
Jan-Oct 22
|
Jan-Oct 21
|
Production
|
3693.2
|
3570.2
|
Exports
|
1754.0
|
1416.8
|
Domestic
|
1325.3
|
1344.2
|
Market Balance
|
613.9
|
809.3
|
Russian Methanol Domestic Sales (unit-kilo tons)
|
Producer
|
Jan-Oct 22
|
Jan-Oct 21
|
Azot Nevinnomyssk
|
16.1
|
19.3
|
Azot Novomoskovsk
|
111.7
|
133.4
|
Metafrax Chemicals
|
344.0
|
358.1
|
Gazprom Methanol
|
294.9
|
309.2
|
Tomet
|
275.1
|
311.1
|
Shchekinoazot
|
240.0
|
155.2
|
Ammoni (Mendeleevsk)
|
42.1
|
57.5
|
Total
|
1323.8
|
1343.9
|
Shchekinoazot is the methanol producer most vulnerable to restrictions on exports to the EU. Overall, the company exported 73.7% of its production in the first ten months in 2022, with Poland receiving the largest amount of its exports by rail. Shchekinoazot does use methanol for formaldehyde and resin derivative production, but this accounts for only a small percentage of its market sales. New units for formaldehyde derivatives are planned to start construction shortly, but If exports fall as expected the company will most probably have to shut at least one of its three plants.
Metafrax Chemicals exported 44.9% of its production in the first eight months in 2022. Although still important the company also processes large volumes internally in addition to selling on the domestic merchant market. In the event of reduced exports or restrictions to exports Metafrax will most probably adjust its utilisation rate downwards. To what degree would depend on how the domestic market performs.
Metafrax completion of paraformaldehyde plant
Metafrax Chemicals has completed the construction and installation of the paraformaldehyde unit at Gubakha. Commissioning and preparation of the facility for commissioning are underway. The production capacity of the plant is 30,000 tpa. The unit will produce paraformaldehyde intended for the manufacture of plastics, paints, resins, adhesives, and insulating materials. The product is also widely used in the production of chipboard and MDF, in the manufacture of herbicides in agriculture and antiseptics in animal husbandry. Most of the paraformaldehyde production is intended for sale on the domestic market. Paraformaldehyde has been listed under EU sanctions.
Shchekinoazot delayed formalin project
The timing of the Shchekinoazot project has been delayed for the construction of the second unit of concentrated low-methane formalin KMMF-110, with a capacity of 110,000 tpa and the production of urea and melamine-formaldehyde resins KMFS-220, with a capacity of 220,000 tpa. The largest part of the main equipment has arrived from Shanghai, but the project is being delayed over market uncertainties even if the builders have already begun to install the foundation for the reactor of the formalin installation.
Russian methanol domestic sales, Jan-Oct 2022
Russian Methanol Purchases by Consumer
(unit-kilo tons)
|
Consumer
|
Jan-Oct 22
|
Jan-Oct 21
|
Nizhnekamskneftekhim
|
230.7
|
260.2
|
Togliattikaucuk
|
50.5
|
99.6
|
Uralorgsintez
|
52.5
|
49.7
|
SIBUR-Khimprom
|
1.5
|
19.4
|
SIBUR Tobolsk
|
37.3
|
34.3
|
Omsk Kaucuk
|
86.5
|
72.7
|
Novokuibyshevsk NPZ
|
24.5
|
29.9
|
Uralkhimplast
|
15.9
|
19.3
|
Slavneft-Yanos
|
10.8
|
12.9
|
Metadynea
|
57.8
|
80.3
|
Kronospan
|
76.5
|
97.1
|
Gazprom
|
197.6
|
152.4
|
Khimsintez
|
34.9
|
29.0
|
Volzhsky Orgsintez
|
46.1
|
15.1
|
Togliattiazot
|
104.9
|
66.2
|
Others
|
295.7
|
305.2
|
Total
|
1323.7
|
1343.3
|
Merchant sales of methanol on the Russian domestic market amounted to 1.324 million tons in the first ten months in 2022 against 1.344 million tons in the same period in 2021. Tomet reduced sales from 311,100 tons to 275,100 tons whilst Gazprom Methanol reduced sales from 309,200 tons to 294,900 tons. Metafrax Chemicals reduced shipments to the domestic market from 358,100 tons in January to October 2021 to 344,000 tons in the same period in 2022.
Nizhnekamskneftekhim recorded a slight fall in methanol purchases in the first ten months from 260,200 tons to 230,700 tons whilst Gazprom increased purchases from 152,400 tons to 197,600 tons. Nearly all of the methanol purchases made by Gazprom come from its subsidiary Gazprom Methanol. Togliattikaucuk reduced methanol purchases from 99,600 tons in January to October 2021 to 50,500 tons, the drop being mainly due to lower MTBE production.
In the sector for urea-formaldehyde resins Kronospan bought 76,500 tons of methanol against 97,100 tons in January to October 2021 and Metadynea reduced purchases from 80,300 tons to 47,700 tons. Uralkhimplast at Nizhniy Tagil reduced methanol purchases for resin production from 19,300 tons to 15,900 tons. Khimsintez increased purchases of methanol from 29,000 tons in the first ten months last year to 34,900 tons in January to October 2022. Khimsintez is focused on the production of chemical products for technical purposes including formalin and synthetic resins.
Russian butanol production Jan-Oct 2022
Russian N-Butanol Production (unit-kilo tons)
|
Producer
|
Jan-Oct 22
|
Jan-Oct 21
|
Angarsk Petrochemical company
|
26.4
|
21.8
|
Azot Nevinnomyssk
|
14.5
|
12.0
|
Gazprom neftekhim Salavat
|
56.9
|
43.4
|
SIBUR-Khimprom, Perm
|
25.1
|
23.6
|
Total
|
122.9
|
100.8
|
|
|
|
Russian Isobutanol Production (unit-kilo tons)
|
Producer
|
Jan-Oct 22
|
Jan-Oct 21
|
Angarsk Petrochemical Company
|
18.5
|
13.5
|
Gazprom neftekhim Salavat
|
28.1
|
24.6
|
SIBUR-Khimprom, Perm
|
47.6
|
29.9
|
Total
|
94.3
|
68.0
|
Russian normal butanol production rose from 100,800 tons in the first ten months in 2021 to 122,900 tons in the same period in 2022. Gazprom neftekhim Salavat was the largest Russian producer, increasing production from 43,400 tons to 56,900 tons in January to October 2022.
Isobutanol production in Russia increased from 68,000 tons in the first ten months in 2021 to 94,300 tons in 2022. SIBUR-Khimprom increased production in the first ten months from 29,900 tons in 2021 to 47,600 tons.
Production of butanols increased last year due to the higher internal processing whilst the merchant market remained sluggish. Consumption of paints in Russia remains weak following the exodus of foreign producers.
Russian plasticizer market Jan-Oct 2022
DOTP and DOP import shipments into Russia continue to fall and only DINP remains above a thousand tons per month. Imports of DINP amounted to 18,046 tons in January to October 2022 whilst DOTP imports amounted to 4,898 tons and DOP 1,757 tons. Over half of the of the imports are being sourced from South Korea where previously they were supplied mostly from European companies. The main feature of the market in 2022 was the change in supply sources from Central and West European sellers to sources from Turkey, South Korea and China.
Russian acetone market Jan-Oct 2022
Russian Acetone Production (unit-kilo tons)
|
Producer
|
Jan-Oct 22
|
Jan-Oct 21
|
Ufaorgsintez
|
27.2
|
38.2
|
Kazanorgsintez
|
42.4
|
41.9
|
Novokuibyshevsk Petrochemical
|
25.5
|
33.8
|
Omsk Kaucuk
|
23.3
|
23.5
|
Total
|
118.4
|
137.4
|
Russian acetone production amounted to 118,400 tons in the first ten months in 2022 against 137,400 tons in the same period in 2021. Omsk Kaucuk produced 23,300 tons of acetone against 23,500 tons whilst Kazanorgsintez increased production from 41,900 tons to 42,400 tons. Novokuibyshevsk Petrochemical Combine reduced production from 33,800 tons to 25,500 tons.
Russian ethyl acetate imports, Jan-Oct 2022
Russian Ethyl Acetate Imports (unit-kilo tons)
|
Company
|
Jan-Oct 22
|
Jan-Oct 21
|
Laxmi Organics Industries
|
248.2
|
2697.8
|
Ineos
|
334.2
|
956.7
|
Others
|
714.02
|
1636.1
|
Total
|
1,296.2
|
5290.7
|
Ethyl acetate imports into Russia dropped by 75.5% in the first ten months in 2022, dropping from 5,290 tons in January to October 2021 to 1,296 tons. From January to October 2022, Ineos supplied 334 tons against 925 tons in the same period last year. The major distributor in the domestic market Ruskhimset did not purchase from Ineos so far this year. Imports increased from the second quarter onwards from Turkey and Uzbekistan in order to compensate for the loss of Western suppliers.
The domestic market for paints and varnishes in Russia witnessed a fall in demand during 2022, and at the same time manufacturers producers are affected by the lack of individual raw materials for the production of coatings. The exit of some European companies from the Russian market also had an impact on the decline in sales figures.
Azerbaijan Polyolefin Revenues ($ million)
|
|
Jan-Oct 22
|
Jan-Oct 21
|
Polyethylene
|
76.9
|
80.2
|
Polypropylene
|
81.3
|
94.0
|
SOCAR Methanol Jan-Oct 2022
Azerbaijan Methanol Market (unit-kilo tons)
|
|
Jan-Oct 22
|
Jan-Oct 21
|
Production
|
449.3
|
291.4
|
Exports
|
409.3
|
252.5
|
SOCAR Methanol produced 449,300 tons of methanol in the first ten months in 2022, which is 54.2% times higher than in the same period in 2021. Methanol exports from Azerbaijan totalled 409,281 tons in the first ten months for a total value of $112.892 million.
The share of methanol in the total volume of exports from Azerbaijan amounted to 4.73% of non-oil product exports. Inventory is held at around 40,000 tons at the start of each month.
Turkmenistan tender for methanol project
Turkmengaz has re-announced an international tender for the construction of a gas chemical plant for the production of methanol and ammonia. Other products include methyldiethanolamine, diethylene glycol and triethylene glycol. The project investment is planned to be located at the Bagadzha gas condensate field in the Lebap velayat in north-east Turkmenistan.
|
Kazakh methanol project West Kazakhstan
Efforts have been made to revive a previous project for the production of methanol in the West Kazakhstan region. Kazakh government has in contact with Chinese companies CITIC Construction and China Huanqiu Contracting & Engineering (Shanghai). As a consequence Kazakh company Zhaik Petroleum signed an EPC contract in December with these Chinese companies. The framework of this contract describes plans to build a gas chemical complex for the production of methanol with a capacity of 130,000 tpa. The total cost of the project is estimated at $140 million.
After construction of the methanol project, it is planned to implement the second stage of the project for the production of ammonia and urea. KazAzot is considering plans to construct a new ammonia-urea complex on the territory of the FEZ in the Mangystau region. The project includes the production of ammonia with 660,000 tpa nitric acid 395,000 tpa; urea 577,000 tpa and ammonium nitrate 500,000 tpa.
Kazakh PTA-PET complex
A feasibility study has been completed for the construction of a PTA-PET complex in the Atyrau region, using the paraxylene from the existing 496,000 tpa plant at the refinery. Around $1 billion has been estimated for the project costs and negotiations are underway with potential strategic partners. Project capacities include 600,000 tpa of PTA and 430,000 tpa of PET. Construction of the plant is aimed for 2023-2024 with start-up earmarked for 2026-2027.
Butadiene project Kazakhstan
The first stage of construction and installation work has begun at the site of the new Kazakh-Russian butadiene production plant in Kazakhstan. KazMunayGaz and Tatneft established a jv Butadien in 2021 to implement a project to create a butadiene rubber production site with a completion date of 2025. At the moment, design work is underway and technology licensors have been involved.
The estimated production capacity is 186,000 tpa of butadiene rubbers and 170,000 tpa of isobutane. The plant will produce five different types of products including styrene-butadiene-styrene-rubber, divinyl-styrene synthetic rubber, butadiene, and isobutane-isobutylene fraction. In November 2022, Butadien signed a butane purchase and sale agreement with Tengizchevroil for feedstocks. The supply volume will be 380,000 tpa of butane. The launch of production is scheduled for 2026 on the territory of the National Industrial Petrochemical Technopark in the Atyrau region.
Kazakh polyethylene project-Chevron Phillips
KazMunaiGaz and Chevron Phillips Chemical signed a license and design agreements for the delayed polyethylene project in Kazakhstan, which is to be located near Atyrau. The contract involves the development of project documentation for the production of polyethylene using MarTECH® ADL technology and the provision of an appropriate license for the production of the first line of 625,000 tpa. Technology from Chevron Phillips Chemical will allow the Kazakh plant to produce a wide range of products, including premium high-density polyethylene.
Kazakhstan polypropylene production and sales
Kazakhstan Petrochemical Industries had produced 23,000 tons of polypropylene by 1 December. The company has been forced to refute allegations that it has been selling polypropylene from other suppliers, particularly SIBUR.
|
For the second 625,000 tpa plant negotiations with another licensor are reported to be close to completion. Thus, the aim is to construct two technological installations as part of one single complex with a total capacity of 1.250 million tpa. 2027 has been set as a provisional start-up date for the whole complex.
PKN Orlen-carbon neutral targets
As part of the group target to achieve emission neutrality by 2050 PKN Orlen has set intermediatory indicators for 2030 for reducing CO2 emissions from its current refining and petrochemical assets by 20% and emissions from power generation by 33%. The emission neutrality strategy announced by PKN Orlen is focused on four pillars comprising energy efficiency in production, zero- and low-emission power generation, and alternative fuels and green financing.
Orlen Unipetrol-carbon neutral targets
Following the guidelines set by PKN Orlen, Orlen Unipetrol has established its own wants to be carbon neutral by 2050. The goal is to achieve the production of advanced biofuels from renewable sources, chemical recycling, hydrogen economy and Industry 4.0. Orlen Unipetrol is looking for partners who will help towards a responsible transition to a carbon-neutral future. The cooperation will give start-ups, small and medium-sized companies the opportunity to verify their ideas and technologies, gain new contacts, establish cooperation and also possible financial support worth up to millions of euros.
|
By 2030, PKN Orlen intends to invest more than zl 25 billion in projects that will promote environmental impacts and open the group up to new business models. One target is to increase the production of biofuels by around 500,000 tpa by 2030, with major investments at the Trzebinia and Jedlice refineries.
The focus of the company’s efforts designed to build new business areas will be on the development of low and zero-emission energy generation sources, including both offshore and onshore wind power as well as solar photovoltaics. The Orlen Group also intends to develop hydrogen technologies and expand its distribution network for alternative fuels. The funding for the projects to be implemented under the carbon neutrality strategy will be partly obtained through the issuance of Green and Sustainable Bonds by Orlen Group on the European capital market.
Due to investments made so far in the energy efficiency at refineries at Plock, Litvinov and Mazeikiai over 80% of PKN Orlen’s CO2 emissions in this segment are now covered by free allowances. The group is also in the preparatory phase for the construction of a 600 kg/h hydrogen hub at Wloclawek, which is aimed to give the company the leading position on the Polish market of hydrogen fuels used in transport.
Polish hydrogen production targets
Polish Hydrogen Market 2020
|
Company
|
Share of Polish Market
|
Production raw material
|
Grupa Azoty
|
42%
|
Natural gas
|
PKN Orlen
|
14%
|
Natural gas
|
Grupa Lotos
|
14%
|
Natural gas
|
JSW S. A
|
23%
|
Coke oven gas
|
Grupa Azoty is the largest producer of hydrogen in Poland, producing around 420,000 tons from fossil fuels. In order that Poland achieves carbon neutrality by 2050 producers of hydrogen will need to convert to green routes to production which involves usage of renewables. PKN Orlen produced around 14% of Polish hydrogen in 2020 or 145,000 tons, and aims to increase production through its Wloclawek and other hubs as part of its Hydrogen Eagle programme
Orlen’s first hydrogen investment took place at the end of 2021 at the Trzebinia refinery, where it is offering high-purity hydrogen to power fuel cells. The annual production of hydrogen at Trzebinia will amount to 16 million Nm3 of which around 75% will be used to produce propylene glycol.
Grupa Azoty is the largest Polish producer of hydrogen at present and intends to increase production through a by-product of propane dehydrogenation (PDH) at Police which will be then supplied to the group’s fertiliser capacities nearby. Two of Grupa Azoty's hydrogen projects have been included in the list of projects of the European Association for Clean Hydrogen. The proposed projects cover several areas of hydrogen economy including hydrogen production, ammonia production, as well as hydrogen production for transport. Hydrogen produced in Grupa Azoty's factories, largely for its own chemical synthesis is produced from natural gas and used in the synthesis of ammonia, but from year to year more and more hydrogen is sold to external partners (currently about 600 tpa).
PKN Orlen-Synthos Green Energy
PKN Orlen and Synthos Green Energy have signed an investment agreement establishing a joint venture Orlen Synthos Green Energy. Its aim will be to prepare and commercialise the technology of small SMR nuclear reactors in Poland. According to Orlen's calculations, the creation of the BWRX-300 reactor takes only about a third of the time needed to build a traditional large nuclear power plant. In addition, construction costs can be about 30% lower than in the case of conventional nuclear projects. PKN Orlen and Synthos Green Energy will each have 50% of shares in the joint venture.
Petrochemical production PKN Orlen Jan-Oct 2021
PKN Orlen Production
(unit-kilo tons)
|
Product
|
Jan-Oct 21
|
Jan-Oct 20
|
Ethylene
|
266.7
|
407.5
|
Propylene
|
271.0
|
375.9
|
Butadiene
|
32.3
|
50.1
|
Toluene
|
9.2
|
8.8
|
Phenol
|
37.7
|
36.0
|
Polyethylene
|
180.8
|
290.8
|
PVC
|
240.6
|
286.9
|
Polypropylene
|
177.1
|
243.2
|
PKN Orlen’s production of ethylene fell from 407,500 tons to 266,700 tons whilst propylene fell from 375,900 tons to 271,000 tons. Lower ethylene and propylene production impacted on subsidiary production at BOP for polyolefins and Anwil for PVC.
Polish propylene imports, Jan-Oct 2021
Polish Propylene Imports (unit-kilo tons)
|
Country
|
Jan-Oct 21
|
Jan-Oct 20
|
Lithuania
|
6.415
|
18.793
|
Germany
|
95.178
|
10.108
|
Russia
|
47.609
|
19.705
|
Ukraine
|
68.226
|
63.199
|
Others
|
4.025
|
5.273
|
Total
|
221.453
|
117.077
|
Propylene imports into Poland amounted to 221,453 tons in the first ten months in 2021 against 117,077 tons in the same period in 2020. Lower propylene production from the cracker by PKN Orlen was the cause of higher imports last year. Germany supplied 95,178 tons of propylene to the Polish market in January to October 2021, up from 10,108 tons, followed by Ukraine which supplied 68,226 tons against 63,199 tons. Propylene import costs for Poland averaged €891 per ton in the first ten months. Exports of propylene out of Poland increased in 2021 to 44,700 tons from 23,400 tons in January to October 2020.
PCC Rokita-PCC Exol ethoxylates and polyols
PCC Rokita and PCC Exol have decided to invest around zl 351 million (€76.3 million) into an installation combining the production of ethoxylates and polyols. The new installation will increase the range of environmentally friendly products and is expected to be ready in mid-2026.
Orlen Unipetrol-dicyclopentadiene project
Orlen Unipetrol received delivery of a giant distillation column in December, which will be used in a new unit for the production of dicyclopentadiene (DCPD) at Litvinov. The investment amounts to around €33 million. There is currently a DCPD generation capacity deficit in Europe and demand could increase by another 20% by 2030. Liquid hydrocarbon or DCPD will be produced by a technology developed by the group's researchers in cooperation with the University of Chemistry and Technology in Prague. The product will be used in the automotive industry, construction, electrical engineering, medicine and pharmacy.
|
The ethoxylate-polyol installation is to be constructed in the chemical industrial park at Brzeg Dolny by PCC BD, where partners PCC Exol and PCC Rokita each possess 50% of shares. shares. The adopted technological solutions and its versatility of the new installation will enable quick adaptation of the product portfolio to dynamically changing market needs. The capacity of the installation is expected to range from 50,000 tpa to 55,000 tpa. The installation is to produce a range of ethoxylates, polyether polyols and other ethoxylated products, Including biodegradable products. The installation will use ethylene oxide supplied by PKN Orlen. Due to the fact that ethylene oxide has a lower carbon footprint than propylene oxide, some products will have a lower carbon footprint.
PCC Exol Expansions 2021
|
Product
|
Ktpa
|
Oxyalates
|
10.0
|
Phosphorous esters
|
2.0
|
ETE-2
|
80.0
|
In 2021 PCC Exol decided to proceed with the investment into the expansion of the ETE-2 Plant at Plock (Ethoxylation II). After its completion, the assumed average potential production capacity of the plant is to be doubled and amount to about 80,000 tpa.
After the completion of these investments, the company's nominal production capacity will increase approximately to 184,000 tpa compared to the current number of around 137,000 tpa. PCC Exol started out as a separate company with a capacity of 100,000 tpa. PCC Exol undertakes production at two locations at Brzeg Dolny and Plock, comprising a total of five plants including factories Ethoxylation I and II, Sulphated I and II and Formulations Industrial. The current production potential of the company is 137,000 tpa, including 102,000 tpa at Brzeg Dolny and 35,000 tpa at Plock.
NIS receives approval in bid for Petrohemija
Serbian Chemical Exports (unit-kilo tons)
|
Product
|
Jan-Sep 21
|
Jan-Sep 20
|
Polyethylene
|
91.5
|
70.3
|
Polypropylene
|
20.2
|
9.5
|
Styrene Butadiene Rubber
|
14.8
|
13.3
|
Methanol
|
86.9
|
75.3
|
Acetic Acid
|
52.6
|
70.2
|
Serbia has agreed terms on the sale of HIP Petrohemija to local oil and gas company NIS. The Serbian government owns a 75.27% stake in the capital of HIP Petrohemija at present, whilst NIS owns 20.86%, Lukoil 3.09%, and the remainder is in the hands of smaller shareholders. A total of 10% of the costs of Petrohemija depends on the price of gas, and thus the government can only see Gazprom Neft as the only supplier.
NIS placed the sole bid in October for the government tender for selecting a strategic partner in HIP Petrohemija. The strategic partner intends to inject €150 million ($168 million) in the capital of HIP Petrohemija, acquiring a stake of up to 90% in the company's capital.
Ciech to reduce costs of soda ash production
Ciech’s soda ash plant at Inowroclaw is undergoing preparations to install a new method of ammonia absorption in the production process, intended to improve the efficiency of the use of raw materials. Ciech is the second largest producer of soda ash and purified soda in the European Union, the largest producer of brewed salt in Poland, and the largest supplier of sodium silicates in Europe. Ciech operates plants in Poland, Germany and Romania and employs over 3,000 people throughout the EU.
Ciech Selected Revenues (€ million)
|
Product group
|
Jan-Sep 21
|
Jan-Sep 20
|
Dense soda ash
|
166.4
|
180.7
|
Light soda ash
|
53.5
|
41.9
|
Sodium bicarbonate
|
33.9
|
30.2
|
Agro products
|
73.6
|
57.8
|
Polyurethane foams
|
61.0
|
38.8
|
Sodium silicates
|
34.2
|
27.1
|
Total
|
524.0
|
461.1
|
The four business segments of Soda, Agro, Foams, and Silicates generate in total more than 90% of the Ciech Group’s sales revenues. Sales of soda segment products accounted for 65,5% of sales in 2021. Despite a successful 2021 the Ciech Group is now facing rising prices of raw materials and in order to maintain margins it will be necessary to increase prices. In addition to rising raw material costs high gas and energy costs are pressing Ciech to revaluate all aspects of soda ash production.
Synthos-Trinseo conclusion
Synthos Group completed the acquisition of the plant from Trinseo at Schkopau in eastern Germany at the start of December. The acquisition of the Schkopau plant Synthos will strengthen its position by becoming the second largest global synthetic rubber producer. After the acquisition, Synthos' production capacity in the area of synthetic rubbers (ESBR+PBR+SSBR) will increase to over 800,000 tpa.
Synthos production and trade Jan-Oct 2021
Synthos Production (unit-kilo tons)
|
Product
|
Jan-Oct 21
|
Jan-Oct 20
|
Polystyrene
|
177.1
|
243.2
|
EPS
|
240.6
|
286.9
|
Synthetic Rubber
|
230.2
|
233.1
|
Synthos Feedstock Imports 2021
|
Product
|
Unit-ktons
|
€ mil
|
Butadiene
|
102.7
|
92.7
|
Ethylbenzene
|
112.7
|
109.4
|
Styrene
|
90.5
|
97.5
|
Synthos produced 230,200 tons of synthetic rubber in the first ten months in 2021 against 233,100 tons in the same period last year. Synthetic rubber demand in Poland increased in the tyre sector in the first ten months, rising from 347,000 tons in 2020 to 444,700 tons in 2021. Synthos imported 90,500 tons of styrene monomer in the first ten months in 2021 versus 84,000 tons in the same period in 2020. Ethylbenzene imports increased from 42,100 tons to 112,700 tons.
PKN Orlen-PTA & paraxylene trade Jan-Oct 2021
Polish Imports of Paraxylene
(unit-kilo tons)
|
Country
|
Jan-Oct 21
|
Jan-Oct 20
|
France
|
21.223
|
0.0
|
India
|
11.201
|
0.0
|
Germany
|
0.0
|
3.506
|
Russia
|
38.347
|
8.990
|
Total
|
70.800
|
12.406
|
Paraxylene imports into Poland amounted to 70,800 tons in the period January to October 2021 against 12,406 tons in the same period in 2020. The main suppliers to Poland in January to October 2021 included Russia with 38,347 tons, France with 21,223 tons and India 11,201 tons.
Polish Exports of PTA (unit-kilo tons)
|
Country
|
Jan-Oct 21
|
Jan-Oct 20
|
Belarus
|
11.1
|
24.1
|
Germany
|
274.0
|
250.5
|
Lithuania
|
20.5
|
9.3
|
Switzerland
|
3.8
|
6.0
|
Others
|
5.4
|
17.4
|
Total
|
315.8
|
326.4
|
PKN Orlen’s exports of PTA in the first ten months amounted to 315,800 tons against 326,392 tons in the same period in 2020. Shipments to Germany increased to 274,000 tons from 250,500 tons in January to October 2020. Other destinations for Polish PTA include Lithuania and Belarus, with volumes rising in 2021 to Lithuania and dropping for Belarus. Imports of PTA into Poland rose to 57,900 tons in the first ten months in 2021 against 30,800 tons in the same period in 2020. The Netherlands was the largest supplier last year.
Czech petrochemical trade, Jan-Oct 2021
Butadiene imports into the Czech Republic totalled 66,125 tons in the first ten months in 2021 versus 48,288 tons in the same period in 2020. For other monomers, propylene imports in the first ten months rose from 35,996 tons to 36,006 tons whilst styrene imports rose from 44,242 tons to 57,195 tons. Benzene imports increased to 57,987 tons. Regarding export activity, the Czech Republic increased benzene shipments in the first ten months to 39,211 tons from 20,838 tons whilst ethylbenzene exports rose from 76,979 tons to 106,783 tons. All of the ethylbenzene is exported to Poland.
Czech Petrochemical Imports
(unit-kilo tons)
|
Product
|
Jan-Oct 21
|
Jan-Oct 20
|
Ethylene
|
3.194
|
3.209
|
Propylene
|
36.006
|
35.966
|
Butadiene
|
66.125
|
48.288
|
Benzene
|
57.987
|
57.170
|
Toluene
|
6.027
|
4.548
|
Styrene
|
57.195
|
44.242
|
Central European isocyanate imports, Jan-Oct 2021
Polish TDI Imports
(unit-kilo tons)
|
Country
|
Jan-Oct 21
|
Jan-Oct 20
|
Germany
|
17.175
|
23.200
|
Netherlands
|
9.450
|
10.200
|
Hungary
|
31.654
|
26.300
|
Saudi Arabia
|
2.887
|
4.900
|
Others
|
8.902
|
2.300
|
Total
|
69.067
|
66.900
|
MDI imports into the Czech Republic totalled 36,320 tons in the period January to October 2021 up from 28,590 tons in the same period in 2020. Import costs rose in the first ten months in 2021 to €85.453 million against €40.612 million in the period January to October 2020. TDI imports into the Czech Republic rose from 5,325 tons in January to October 2020 for €16.071 million to 5,939 tons in the same period in 2021 for €18.834 million. TDI imports into Poland amounted to 69,067 tons in the first ten months in 2021 against 66,900 tons in the same period in 2020. Costs of imports in the first ten months in 2021 totalled €172.946 million, equating to €2504 per ton. Germany and Hungary were the two largest suppliers providing 17,175 tons and 31,654 tons in January-October 2021 respectively.
Central European methanol trade, Jan-Oct 2021
Polish Methanol Imports (unit-kilo tons)
|
Country
|
Jan-Oct 21
|
Jan-Oct 20
|
Belarus
|
2.620
|
9.100
|
Finland
|
58.013
|
53.807
|
Lithuania
|
7.514
|
7.500
|
Germany
|
67.166
|
5.800
|
Netherlands
|
25.739
|
0.000
|
Norway
|
18.497
|
37.400
|
Russia
|
368.700
|
435.300
|
Others
|
15.120
|
64.333
|
Total
|
563.369
|
613.240
|
Polish methanol imports amounted to 563,369 tons in the first ten months in 2021 from 613,240 tons in the same period in 2020 whilst exports fell from 104,600 tons to 95,000 tons. As a non-producer Poland re-exports methanol to Austria, the Czech Republic and Germany. Russia is the major supplier to the Polish market and reduced shipments to 435,300 tons in January to October 2020 from 368,700 tons in the same period in 2021. Prices of methanol in Poland averaged €307.3 per ton in the first ten months, almost double the average prices recorded in 2020.
Major consumers of methanol in Poland include formaldehyde resin producers Lerg and Kronospan. Czech imports of methanol increased from 75,432 tons in the first ten months in 2020 to 77,246 tons in 2021, with supplies from Russia rising from 31,520 tons to 46,229 tons. Imports from Poland dropped from 28,443 tons to 19,522 tons and from Germany to 9,672 tons from 12,686 tons.
Russian polyethylene and trade Jan-Oct 2021
Russian Polyethylene Trade (unit-kilo tons)
|
Category
|
Jan-Oct 21
|
Jan-Oct 20
|
Exports
|
1086
|
686
|
Imports
|
519
|
571
|
Russian polyethylene production rose 8% in the first ten months to 2.646 million tons against 2.449 million tons in 2020. HDPE production rose by 7% to 1.618 million tons whilst LDPE exports rose 3% to 533,000 tons. LLDPE production increased from 424,200 tons to 494.600 tons.
Exports of polyethylene from Russia totalled 1.086 million tons in the first ten months in 2021 for $1.260 billion. Russian HDPE exports amounted to 694,000 tons in the first ten months in 2021 for $743 million against 586,000 tons in the same period in 2020 for $441 million. China was the largest destination for Russian HDPE, amounting to 354,000 tons against 384,000 tons in the first ten months in 2020. For total polyethylene exports shipments to China decreased from 562,000 tons in January to October 2020 to 539,000 tons.
Russian Polyethylene Trade (unit-$ million)
|
Category
|
Jan-Oct 21
|
Jan-Oct 20
|
Exports
|
1260
|
888
|
Imports
|
914
|
660
|
Imports of polyethylene to Russia decreased by 11% in January-October 2021 and amounted to 519,000 tons against 571,000 tons in the same period in 2020. The leading importers in 2021 comprised South Korea, Germany and Belarus.
Russian HDPE Production (unit-kilo tons)
|
Producer
|
Jan-Oct 21
|
Jan-Oct 20
|
Kazanorgsintez
|
308.6
|
428.8
|
Stavrolen
|
247.7
|
263.9
|
Gazprom neftekhim Salavat
|
78.1
|
102.9
|
ZapSibNeftekhim
|
984.1
|
728.5
|
Total
|
1618.5
|
1524.1
|
HDPE imports amounted to 181,000 tons in the first ten months, which is 23% down from the 225,000 tons in 2021. Film grade and blow moulding HDPE accounted for the main reduction in shipments. LDPE imports amounted to 164,000 tons in the first ten months against 159,000 tons in the same period in 2020.
Russian HDPE production, Jan-Oct 2021
Russian LLDPE Production
(unit-kilo tons)
|
Producer
|
Jan-Oct 21
|
Jan-Oct 20
|
Kazanorgsintez
|
34.4
|
19.5
|
Nizhnekamskneftekhim
|
183.6
|
180.3
|
ZapSibNeftekhim
|
272.6
|
224.4
|
Total
|
490.6
|
424.2
|
Russian HDPE production totalled 1.619 million tons in the first ten months in 2021 against 1.524 million tons in the same period in 2020. ZapSibNeftekhim increased production by 35% to 984,100 tons, whilst Kazanorgsintez reduced production by 24% to 308,600 tons. Stavrolen reduced production by 7% to 247,700 tons and Gazprom neftekhim Salavat fell by 25% to 78,100 tons.
Russian LLDPE production, Jan-Oct 2021
Russian Polypropylene Production (unit-kilo tons)
|
Producer
|
Jan-Oct 21
|
Jan-Oct 20
|
Ufaorgsintez
|
98.5
|
97.7
|
Stavrolen
|
96.2
|
89.4
|
Neftekhimya
|
124.1
|
124.3
|
Nizhnekamskneftekhim
|
178.9
|
182.5
|
Polyom
|
166.8
|
150.5
|
Tomskneftekhim
|
127.9
|
123.5
|
SIBUR-Tobolsk
|
0.0
|
404.5
|
ZapSibNeftekhim
|
900.3
|
357.0
|
Total
|
1692.7
|
1529.4
|
Russian LLDPE production totalled 490,600 tons against 424,200 tons in the same period in 2020. ZapSibNeftekhim increased production by 21% to 272,600 tons whilst Nizhnekamskneftekhim increased production by 4% to 187,600 tons. Kazanorgsintez for the first ten months in 2021 produced 34.400 tons of LLDPE against 19,500 tons a year earlier.
Russian polypropylene production and trade, Jan-Oct 2021
In the first ten months of 2021 Russian polypropylene production increased by 11% to 1.693 million tons against 1.529 million tons a year earlier.
SIBUR Tobolsk/ZapSibNeftekhim at Tobolsk complex increased by 18% to 900,300 tons. Polyom at Omsk increased production by 11% to 166,800 tons, whilst Nizhnekamskneftekhim produced 178,900 tons against 182,500 tons. Sales of plastics for Nizhnekamskneftekhim are projected to decline by 3% in 2021 to 714,000 tons, including due to a decrease in polypropylene sales by 8.7%, to 188,000 tons against the background of a high base last year. Sales of polyethylene will fall by 0.9% to 219,000 tons, and polystyrene and ABS plastics to 308,000 tons (by 0.3%).
Tomskneftekhim increased production by 4% to 127,900 tons, whilst Ufaorgsintez increased from 97,700 tons to 98,500 tons. NPP Neftekhimya at Kapotnya produced 124,100 tons down from124,300 tons and Stavrolen increased production by 7% to 96,200 tons.
Russian Polypropylene Trade (unit-kilo tons)
|
Category
|
Jan-Oct 21
|
Jan-Oct 20
|
Exports
|
677.0
|
600.0
|
Imports
|
248.0
|
291.0
|
Regarding outages, Ufaorgsintez shut its polypropylene production for a scheduled maintenance on 3 September for around ten days. Polyom at Omsk will take off-stream its production with the capacity of 230,000 tpa for a two-week maintenance on 28 September. Stavrolen shut its 120,000 tpa polypropylene plant on 22 October with for 26 days.
Russian exports of polypropylene rose from 600,000 tons in the first ten months in 2020 to 677,000 tons in the same period in 2021, with revenues rising from $538.0 million to $923.0 million. Homopolymer shipments accounted for 640,000 tons in 2021, thus comprising 91.8% of total exports.
Russian Polypropylene Trade (unit-$ million)
|
Category
|
Jan-Oct 21
|
Jan-Oct 20
|
Exports
|
923.0
|
538.0
|
Imports
|
462.0
|
217.0
|
Imports of polypropylene into Russia in the first ten months amounted to 248,000 tons against 291,000 tons in the same period in 2020. Import costs rose from $217.0 million to $462.0 million. Homopolymer imports increased to 61,400 tons against 60,800 tons.
Russian PVC Production
(unit-kilo tons)
|
Producer
|
Jan-Oct 21
|
Jan-Oct 20
|
Bashkir Soda
|
222.3
|
221.3
|
Kaustik
|
63.3
|
62.7
|
RusVinyl
|
289.2
|
276.6
|
Sayanskkhimplast
|
253.4
|
244.5
|
Total
|
828.2
|
805.1
|
Imports of propylene copolymers rose from 72,300 tons to 93,700 tons whilst stat copolymer imports increased from 23,400 tons to 27,700 tons. External supplies of other propylene polymers amounted to 26,700 tons against 20,700 tons in January to October 2020. Despite the expansion of Russian production of polypropylene in the past two years, there is still a dependency of Russian converters on imports of copolymers.
Russian PVC market Jan-Oct 2021
Russian production of PVC amounted to 828,200 tons in the first ten months against 805,100 tons in the same period in 2020. RusVinyl produced 289,200 tons against 276,600 tons for the same period in 2020 whilst Sayanskkhimplast increased production from 243,800 tons to 253,400 tons. Bashkir Soda Company increased production slightly to 222,300 tons whilst Kaustik at Volgograd rose slightly to 63,300 tons. Russian PVC exports fell from 173,000 tons in the first ten months in 2020 to 169,000 tons in the same period in 2021, whilst imports rose from 138,000 tons to 179,000 tons.
Russian Polycarbonate Trade (unit-kilo tons)
|
Category
|
Jan-Oct 21
|
Jan-Oct 20
|
Exports
|
25.5
|
18.0
|
Imports
|
16.5
|
33.0
|
Kazanorgsintez to complete polycarbonate expansion in 2022
Kazanorgsintez in 2022 will complete the modernisation of equipment for the production of polycarbonates, which will allow reaching a capacity of 100,000 tpa.
Russian Polycarbonate Trade (unit-$ million)
|
Category
|
Jan-Oct 21
|
Jan-Oct 20
|
Exports
|
80.3
|
26.0
|
Imports
|
55.4
|
65.8
|
Currently the plant is operating at around 90,000 tpa. The completion of modernisation will be carried out at the plant to reduce electricity consumption and emissions of harmful substances into the atmosphere. Polycarbonate exports from Russia increased from 18,000 tons in the first ten months in 2020 to 25,500 tons in the same period in 2021, whilst imports dropped from 33,000 tons to 16,500 tons.
Russian paraxylene trade Jan-Oct 2021
Russian Paraxylene Exports (unit-kilo tons)
|
Producer
|
Jan-Oct 21
|
Jan-Oct 20
|
Gazprom Neft
|
41.0
|
79.9
|
Kirishinefteorgsintez
|
35.9
|
37.4
|
Ufaneftekhim
|
0.0
|
11.4
|
Total
|
76.9
|
128.7
|
Russian paraxylene exports amounted to 76,900 tons in the first ten months in 2021 against 128,700 tons in the same period in 2020. Average prices per ton for Russian exports increased from $475.5 in 2020 to $674.6 in the first ten months in 2021.
Paraxylene export prices and PTA import prices for the Russian market generally follow the same trajectory although did go in different directions in October.
Exports of paraxylene from Russia in the first ten months were divided between Belarus (6,100 tons for $5.2 million) and Finland (70,000 tons for $44.3 million).
Paraxylene supply was restricted in the fourth quarter after Ufaneftekhim started an extended shutdown on 10 August and is expected to last 90-100 days. Gazprom Neft from the Omsk refinery has redirected most of its production to the Polief PTA plant in Bashkortostan, although it is not yet clear if the Kirishi plant will supply Polief.
At the end of September, supplies of paraxylene from Kazakhstan began to the Polief plant but volumes were limited by the low production at Atyrau. Besides deliveries from Kazakhstan supplies of paraxylene delivered by sea transport to Polief started in October. Shipments are being carried out from the Latvian terminal Ovi at Riga; the volume of the consignment will be approximately 10,000 tons. Paraxylene may also be imported from Asia in order to maintain PTA production at Blagoveshchensk.
Russian PTA imports, Jan-Oct 2021
Russian PTA Imports by Country
(unit-kilo tons)
|
Country
|
Jan-Oct
|
Jan-Oct 20
|
Belgium
|
15.0
|
8.0
|
China
|
225.0
|
220.0
|
South Korea
|
0.0
|
7.0
|
Poland
|
0.0
|
3.0
|
Others
|
0.4
|
1.9
|
Total
|
240.3
|
239.9
|
PTA imports into Russia amounted to 240,300 tons in the first ten months in 2021 versus 239,900 tons in the same period in 2020. China shipped 240,300 tons of PTA to Russia in the period January to October 2021 against 239,900 tons in the same period in 2020. Average prices for PTA imports into Russia amounted to $661.7 per ton in January to October 2021 against $579.9 per ton in the same period in 2020.
Ekopet-PTA imports 2021
Russian PTA Imports by region (unit-kilo tons)
|
Region
|
Jan-Oct 21
|
Jan-Oct 20
|
Kaliningrad
|
162.5
|
158.8
|
Moscow
|
77.4
|
78.6
|
Others
|
0.4
|
2.6
|
Total
|
240.3
|
239.9
|
Ekopet Imports of MEG
|
Volume
|
Jan-Oct 21
|
Jan-Oct 20
|
Kilo tons
|
63.7
|
59.0
|
Value
|
Jan-Oct 21
|
Jan-Oct 20
|
$ million
|
59.0
|
29.5
|
Tatneft’s subsidiary Ekopet at Kaliningrad imported 162,500 tons of PTA in the first ten months in 2021 against 158,800 tons in the same period last year. Costs for PTA purchases amounted to $108.8 million for PTA purchases in the first ten months from $87.7 million in January to October 2020.
China was the main supplier of PTA to Ekopet last year with MEG supplied from Saudi Arabia. Imports of PTA from China to the Kaliningrad region amounted to 152,000 tons in the first ten months in 2021 for a total cost of $97.6 million followed by Belgium with 11,000 tons for $9.2 million. Imports of MEG to the Kaliningrad region rose from 59,000 tons in the period January to October 2020 to 63,700 tons in the same period in 2021. Import costs rose from $29.5 million to $59.0 million.
Polief-PTA production
Taneko-paraxylene & PTA projects
The aromatics production complex at Taneko is planned to be launched in December 2022. The main products will be benzene, toluene and paraxylene. The intention is to use the paraxylene as a feedstock for PTA for which the capacity size is yet to be decided.
|
PTA production at Blagoveshchensk totalled 234,315 tons in the first ten months in 2021 against 186,000 tons in the same period in 2020. Higher production of PTA at Polief enabled its owning group SIBUR to export small volumes in 2021. Polief’s capacity for the production of PTA is 350,000 tpa and PET 252,000 tpa.
Polief-green energy
The first photovoltaic module of the solar power plant has been installed at Polief. The design capacity of the power plant is about 4.9 MW, which is 7.1% of the capacity of all operating solar power plants in Bashkortostan. The readiness of the object at this stage of construction has reached 80%. It is planned to complete the construction of the SPP and integrate it into the energy supply chain of the plant in early 2022. The project will significantly increase the share of "green" electricity in the energy balance of the enterprise and reduce the carbon footprint of PTA production.
Russian PET Imports
(unit-kilo tons)
|
Country
|
Jan-Oct 21
|
Jan-Oct 20
|
Belarus
|
6.2
|
5.4
|
China
|
147.0
|
109.0
|
Lithuania
|
10.2
|
7.8
|
Vietnam
|
3.8
|
0.2
|
Others
|
7.6
|
1.1
|
Total
|
175.0
|
127.0
|
Russian PET consumption & trade Jan-Oct 2021
In the first ten months in 2021, 661,830 tons of PET were processed Russia which is 13% more than in the same period in 2020. The production of PET increased to 611,800 tons in 2020 against 550,400 tons a year earlier. The consumption of the product also increased to 732,000 tons which is 30,500 tons of more than 2019. In total, in the Russian Federation in 2020, the production of bottled PET amounted to 579,600 tons, which is 3% higher than in 2019.
PET imports into Russia amounted to 175,000 tons in the first ten months in 2021, compared to 127,000 tons in the same period in 2020 with China acting as the dominant supplier in both years. Exports of PET from Russia amounted to 27,000 tons in the first ten months, up from 24,600 tons. Ekopet accounted for 84.6% of exports in 2021. Russian PET exports in 2020 increased by 60.7% compared to 2019 and amounted to 32,400 tons. The share of the Ekopet plant in the volume of exports was 74.1%, and Polief (SIBUR Holding) 25.8%. The main consumers of Russian PET exports in 2020 included Belarus, the US and Uzbekistan.
PET recycling Russia
Other recycling projects in Russia
Other recycling plants are being constructed in the Moscow area this year, firstly by the Russian company EcoLine-Vtorplast which is being designed to process 60,200 tpa of plastics for recycling which will be turned into 120,000 tpa of plastic containers. Another project in the Moscow region includes the expected launch in the second half of 2022 of a polymer processing plant with a capacity of up to 43,000 tpa including PET. This project is being managed by a company called RT-Invest. (belonging to Rostec) in the Moscow region. The plant will consist of four clusters which comprises a bottle PET processing complex.
|
Russian PET producers are striving to utilise recycled PET in their manufacturing processes, with the Senezh plant at Solnechnogorsk near Moscow increasing usage of recycled materials by 2.5 times in 2021 over 2020. Market demand for environmentally friendly packaging is growing from not only foreign customers but also domestic companies. The Senezh plant previously launched FTR (flakes-to-resin) technology for the growing demand for recovered raw materials. Upon reaching its design capacity, the plant will produce 130,000 tpa involving about 35 thousand tons of recycled PET bottles in the production cycle.
Tatneft is studying the issue of organising processing of secondary PET at the Ekopet site in the Kaliningrad region and aims to start in 2022. In Bashkortostan Polief is to start using secondary PET in 2022, aiming to use around 34,000 tpa which will form only a small percentage of total capacity. Polief will produce PET granules with a content of up to 25% of secondary raw materials.
The company will need to source most of its recycled PET from other parts of Russia as currently the collection of used PET bottles in the Republic of Bashkortostan is rated at only around 4,000 tpa. Potential collection rates could rise to around 20,000 tpa if the appropriate measures for collection and sorting are introduced.
Russian benzene production Jan-Oct 2021
Russian Benzene Production (unit-kilo tons)
|
Producer
|
Jan-Oct 21
|
Jan-Oct 20
|
Angarsk Polymer Plant
|
68.8
|
68.1
|
Gazprom Neft
|
87.4
|
80.3
|
LUKoil-Neftekhim
|
0.0
|
24.4
|
LUKoil-Permnefteorgsintez
|
38.3
|
40.0
|
Magnitogorsk MK
|
29.4
|
35.2
|
Nizhnekamskneftekhim
|
235.3
|
233.8
|
Novolipetsk MK
|
7.5
|
0.7
|
Gazprom neftekhim Salavat
|
148.2
|
164.9
|
Severstal
|
27.1
|
28.8
|
SIBUR-Holding
|
74.8
|
59.1
|
Slavneft-Yaroslavlorgsintez
|
53.9
|
56.0
|
Surgutneftegaz
|
11.5
|
53.3
|
Ryazan RN Holding
|
28.9
|
27.7
|
Ufaneftekhim
|
56.2
|
74.0
|
Ural Steel
|
7.5
|
8.3
|
Uralorgsintez
|
76.4
|
71.9
|
Zapsib
|
53.8
|
52.4
|
Novokuibyshevsk Petrochemical
|
16.8
|
13.0
|
Total
|
1021.7
|
1091.9
|
Russian benzene production totalled 1.022 million tons in the first ten months in 2021 versus 1.092 million tons in the same period in 2020. Nizhnekamskneftekhim produced 235,300 tons against 233,800 tons whilst Gazprom neftekhim Salavat reduced production from 164,900 tons to 148,200 tons. Gazprom Neft at the Omsk refinery increased production from 80,300 tons to 87,400 tons and Uralorgsintez increased production from 71,900 tons to 76,400 tons.
Russian Benzene Sales (unit-kilo tons)
|
Producer
|
Jan-Oct 21
|
Jan-Oct 20
|
Angarsk Polymer Plant
|
39.0
|
44.5
|
SIBUR-Kstovo
|
72.5
|
64.9
|
Severstal
|
27.9
|
28.4
|
Uralorgsintez
|
74.1
|
69.8
|
Kirishinefteorgsintez
|
2.7
|
5.9
|
West Siberian MC
|
53.6
|
51.3
|
Ryazan NPZ
|
25.9
|
23.7
|
Slavneft-Yanos
|
53.4
|
49.9
|
Gazprom Neft (Omsk)
|
81.8
|
56.0
|
Gazprom n Salavat
|
31.3
|
24.0
|
Stavrolen
|
0.0
|
24.4
|
Nizhnekamskneftekhim
|
13.6
|
21.7
|
Ufaneftekhim
|
0.2
|
7.3
|
Karpatneftekhim
|
14.4
|
5.3
|
Ukrtatnafta
|
2.1
|
0.0
|
Naftan
|
25.1
|
11.5
|
Atyrau
|
6.2
|
26.3
|
Novolipetsk MK
|
5.1
|
0.0
|
Chelyabinsk MK
|
13.5
|
8.9
|
Altay-Koks
|
3.0
|
18.7
|
Koks
|
24.3
|
17.6
|
Magnitogorsk MK
|
30.9
|
37.7
|
Nizhny Tagil MK
|
7.1
|
13.7
|
Ural Steel
|
2.0
|
0.4
|
Total
|
610.0
|
612.0
|
Sales of benzene on the Russian domestic market, including imports, amounted to 610,000 tons versus 612,000 tons in the same ten months in 2020. A number of factors contributed to the lower sales volumes on the domestic market last year including plant outages and increased internal processing.
SIBUR-Kstovo increased sales from 64,900 tons in the first ten months in January to October 2020 to 72,500 tons in the same period in 2021, whilst Stavrolen at Budyennovsk did not produce benzene in the first ten months in 2021 after shipping 24,400 tons in January to October last year. Severstal shipped 27,900 tons against 28,400 tons in 2020.
Exports of benzene amounted to 31,831 tons in the first ten months against 69,460 tons in January to October 2020. Exports this year have been affected by the long-term repairs taking place at the Kirishi plant which started in March and continued to the end of 2021.
Railway supplies of benzene from abroad to the Russian market increased in October by 3,300 tons compared to September, to a total of 12,400 tons. Russian consumers increased purchases of imported benzene due to a shortage of product in the domestic market caused by repairs at a number of domestic plants.
The Atyrau refinery in Kazakhstan reduced benzene sales on the Russian market to 6,200 tons in the first ten months in 2021 against 26,300 tons in the same period in 2020. The Atyrau refinery encountered technical problems in the first quarter which has since restricted exports of benzene and paraxylene.
The Belarussian refineries increased deliveries to the Russian market to 25,100 tons in the first ten months in 2021 against 11,500 tons in January to October 2020 whilst from Ukraine Karpatneftekhim increased shipments from 5,300 tons to 14,400 tons. Overall Belarus supplied 27,458 tons of benzene to the Russian market in the first ten months for $24.772 million whilst Ukraine supplied 28,121 tons for $29.046 million.
For caprolactam producers Kuibyshevazot reduced benzene purchases from 138,000 tons to 125,300 tons in January to October this year whilst Azot at Kemerovo increased purchases from 91,800 tons to 104,600 tons. Shchekinoazot reduced purchases from 66,700 tons to 57,900 tons.
For the production of cumene Kazanorgsintez purchased 52,000 tons of benzene in January to October 2021, versus 54,800 tons in the same period in 2020. Kazanorgsintez buys benzene from a range of suppliers including Nizhnekamskneftekhim. Other phenol producers included Omsk Kaucuk which increased purchases from 23,600 tons to 28,600 tons and Novokuibyshevsk Petrochemical which reduced from 44,000 tons to 38,200 tons. In the styrene sector SIBUR-Khimprom at Perm purchased 90,500 tons of benzene in January-October 2021 against 78,500 tons in the same period in 2020.
Russian caprolactam production, Jan-Oct 2021
Russian Caprolactam Production
(unit-kilo tons)
|
Producer
|
Jan-Oct 21
|
Jan-Oct 20
|
Kuibyshevazot
|
163.2
|
154.9
|
Shchekinoazot
|
47.4
|
49.2
|
SDS Azot
|
96.4
|
93.3
|
Total
|
307.0
|
297.4
|
Russian caprolactam production amounted to 307,000 tons in January to October 2021 against 297,400 tons in the same period in 2020. Kuibyshevazot increased caprolactam production from 154,900 tons to 163,200 tons whilst SDS Azot at Kemerovo increased production from 93,300 tons to 96,400 tons. Caprolactam exports from Russia fell from 196,700 tons to 136,400 tons in the first ten months in 2021. Kuibyshevazot reduced exports from 50,200 tons in the period January to October 2020 to 17,000 tons in 2021, following the increase in polyamide capacity, whilst SDS Azot at Kemerovo reduced exports from 101,200 tons to 71,600 tons.
Russian orthoxylene domestic sales Jan-Oct 2021
Russian Orthoxylene Domestic Sales
(unit-kilo tons
|
Producer
|
Jan-Oct 21
|
Jan-Oct 20
|
Gazprom Neft
|
114.3
|
66.6
|
Ufaneftekhim
|
30.2
|
53.7
|
Kirishinefteorgsintez
|
25.0
|
15.7
|
Total
|
169.4
|
115.6
|
Orthoxylene domestic sales on the Russian market rose in the first ten months in 2021 to 139,400 tons from 115,600 tons in the same period in 2020. Gazprom Neft increased shipments to 114,300 tons against 66,600 tons in the same period in 2020 whilst Ufaneftekhim reduced sales from 53,700 tons to 30,200 tons. Kirishinefteorgsintez increased domestic sales from 15,700 tons to 25,000 tons in January to October 2021.
Russian phenol market, Jan-Oct 2021
Russian Phenol Production (unit-kilo tons)
|
Producer
|
Jan-Oct 21
|
Jan-Oct 20
|
Ufaorgsintez
|
61.0
|
50.7
|
Kazanorgsintez
|
64.8
|
60.1
|
Novokuibyshevsk Petrochemical
|
54.6
|
58.2
|
Omsk Kaucuk, Omsk
|
37.9
|
25.1
|
Total
|
218.3
|
194.1
|
Russian Domestic Market Phenol Sales by Supplier
(unit-kilo tons)
|
Producer
|
Jan-Oct 21
|
Jan-Oct 20
|
Omsk Kaucuk
|
33.0
|
18.8
|
Novokuibyshevsk Petrochemical
|
41.3
|
47.6
|
Kazanorgsintez
|
0.0
|
0.1
|
Ufaorgsintez
|
50.4
|
28.9
|
Total
|
124.7
|
95.4
|
Russian Phenol Exports (unit-kilo tons)
|
Producer
|
Jan-Oct 21
|
Jan-Oct 20
|
Omsk Kaucuk
|
12.2
|
5.8
|
Ufaorgsintez
|
11.3
|
0.0
|
NNK
|
4.0
|
23.1
|
Total
|
27.5
|
28.9
|
Russian phenol production amounted to 218,300 tons in the first ten months in 2021 against 194,100 tons in the same period in 2020. Novokuibyshevsk Petrochemical produced 54.600 tons of phenol against 58,200 tons in 2020 whilst Ufaorgsintez increased production from 50.700 tons to 61,000 tons. Kazanorgsintez increased production from 60,100 tons to 64,800 tons. Omsk Kaucuk produced 37,900 tons against 25,100 tons. The modernisation of cumene production at Omsk has led to a reduction in the volume of pollutant emissions into the atmosphere by more than 85%.
Phenol sales on the domestic market rose in the first ten months in 2021 to 124,700 tons against 95,400 tons in the same period in 2020. Omsk Kaucuk increased sales from 18,800 tons to 33,000 tons whilst Ufaorgsintez increased from 28,900 tons to 50,400 tons. Regarding export activity, shipments amounted to 27,500 tons in the first ten months in 2021 against 28,900 tons in January to October 2020, including 12,200 tons from Omsk Kaucuk and 11,300 tons from Ufaorgsintez.
Russian rubber production and market balance Jan-Oct 2021
Russian Synthetic & Natural Rubber Market
(unit-kilo tons)
|
|
Jan-Oct 21
|
Jan-Oct 20
|
Production
|
1414.0
|
1244.0
|
Exports
|
921.8
|
775.0
|
Imports
|
193.5
|
166.2
|
Supply/Demand Balance
|
685.7
|
635.2
|
Synthetic rubber production in Russia totalled 1.414 million tons in the first ten months in 2021 against 1.244 million tons in the same period in 2020. Both exports and imports of rubber increased in 2021 whilst overall domestic consumption of rubber amounted to 685,700 tons versus 635,200 tons in the first ten months in 2020.
Russian synthetic rubber exports, Jan-Oct 2021
Russian Synthetic Exports by Destination
(unit-kilo tons)
|
Country
|
Jan-Oct 21
|
Jan-Oct 20
|
Belarus
|
28.5
|
25.7
|
Brazil
|
25.8
|
21.0
|
China
|
133.1
|
183.4
|
Czech
|
27.9
|
22.4
|
Germany
|
32.5
|
28.8
|
Hungary
|
42.7
|
25.6
|
India
|
90.1
|
77.6
|
Mexico
|
36.3
|
21.4
|
Poland
|
99.7
|
68.3
|
Romania
|
33.5
|
24.5
|
Serbia
|
12.7
|
11.7
|
Slovakia
|
32.1
|
27.3
|
Turkey
|
78.1
|
47.6
|
Ukraine
|
24.3
|
14.4
|
US
|
48.1
|
27.8
|
Others
|
176.4
|
152.7
|
Total
|
921.8
|
780.2
|
Russian exports of synthetic rubber amounted to 921,800 tons in the first ten months in 2021, up from 780,200 tons in the same period in 2020. Average prices for Russian synthetic rubber exports rose from $1406 per ton in January to October 2020 to $1693 in the same period in 2021.
Exports to China amounted to 133,100 tons in the first ten months in 2021 against 183,400 tons in the same period in 2020. This was followed by Poland, rising from 53,300 tons to 78,600 tons, and India rising from 68,300 tons to 99,700 tons. In terms of revenues Russian rubber exports to China totalled $211.9 million in the first ten months from $196.6 million whilst to Poland revenues increased from $94.8 million to $173.1 million.
Russian Synthetic Rubber Exports
(unit-kilo tons)
|
Product
|
Jan-Oct 21
|
Jan-Oct 20
|
E-SBR
|
42.3
|
26.7
|
Block
|
66.3
|
46.2
|
SSBR
|
11.3
|
6.3
|
SBR
|
99.9
|
105.7
|
Polybutadiene
|
213.2
|
180.3
|
Butyl rubber
|
105.9
|
103.7
|
Halogenated butyl
|
112.4
|
99.7
|
NBR
|
32.9
|
27.2
|
Isoprene
|
227.2
|
167.8
|
Others
|
10.5
|
16.6
|
Total
|
921.8
|
780.2
|
Isoprene rubber exports increased from 93,600 tons to 128,600 tons whilst polybutadiene exports increased from 180,300 tons to 213,200 tons. As a result of higher volumes and prices, revenues from synthetic rubber exports rose in total from $969.3 million in January to October 2020 to $1537.1 million in January to October 2021.
Nizhnekamskneftekhim-rubber exports Jan-Oct 2021
Nizhnekamskneftekhim’s exports of synthetic rubbers rose in the first ten months to 510,000 tons from 436,300 tons in the same period in 2020. Isoprene rubber exports from Nizhnekamsk rose from 138,500 tons to 176,200 tons whilst butadiene rubber exports increased from 124,500 tons to 154,100 tons.
Revenues from synthetic rubber exports rose from $587.6 million to $878.5 million. Nizhnekamskneftekhim forecast that revenue from rubber sales would comprise around 37% of total revenues in 2021 followed by 36% for plastics and 27% for other petrochemicals.
For the full year of 2021 Nizhnekamskneftekhim expected sales of rubbers to finish at around 686,000 tons, thus an increase of 16.7% over 2020. In the structure of the company’s sales synthetic rubber accounted for 41% of Nizhnekamskneftekhim’s revenues in 2020 followed by plastics with 34%. The main share in the structure of sales of synthetic rubbers is in Europe 35.4%, Asia 31.4%, and North America 10.7%. Feedstocks for synthetic rubber production at Nizhnekamsk comprise a balance between NGLS delivered by pipeline from the Minnibayevo Gas Processing Plant and C4s purchased on the open market from other olefin producers such as Kazanorgsintez, Stavrolen and Gazprom neftekhim Salavat.
Nizhnekamskneftekhim Rubber Exports (unit-kilo tons)
|
Product
|
Jan-Oct 21
|
Jan-Oct 20
|
Isoprene Rubber
|
176.2
|
138.5
|
Butyl Rubber
|
56.5
|
63.4
|
HBR
|
112.4
|
99.6
|
Polybutadiene
|
154.1
|
124.5
|
Others
|
10.9
|
10.3
|
Total
|
510.0
|
436.3
|
Nizhnekamskneftekhim Rubber Exports ($ million)
|
Product
|
Jan-Oct 21
|
Jan-Oct 20
|
Isoprene Rubber
|
278.9
|
181.4
|
Butyl Rubber
|
95.7
|
81.9
|
HBR
|
247.1
|
193.4
|
Polybutadiene
|
224.6
|
130.8
|
Others
|
32.2
|
13.8
|
Total
|
878.5
|
587.6
|
Nizhnekamskneftekhim-isoprene rubbers
Isoprene export revenues for Nizhnekamskneftekhim jumped to $278.9 million from $181.4 million in January to October 2020. Nizhnekamskneftekhim reduced its share in the global isoprene rubber market from 43.9% to 37.8% in 2020 but remained the global leader in production.
Nizhnekamskneftekhim-butyl rubbers
Nizhnekamskneftekhim increased exports of halogenated butyl rubber to 112,400 tons in the first ten months in 2021 against 99,600 tons in the same period in 2020, with revenues rising from $193.4 million to $247.1 million. Butyl rubber export revenues rose from $81.9 million to $95.7 million, although volumes dropped in the first ten months to 56,500 tons against 63,400 tons in January to October 2020. Nizhnekamskneftekhim’s share in the global butyl rubber market decreased from 17.5% to 16.3% in 2020, and for the global butadiene rubber market from 5.3% to 4.7%.
Nizhnekamskneftekhim plans to complete the modernisation of halogenated butyl rubber production by 1 October 2022, which will increase production to 200,000 tpa. The expansion was previously targeted for July but has been delayed by various bottlenecks. Nizhnekamskneftekhim is the only producer of halogenated butyl rubber in Russia with a capacity of 150,000 tpa and the new extension will comprise 50,000 tpa. Modernisation plans involve the replacement of used equipment with modern and more productive parts.
Togliattikaucuk exports Jan-Oct 2021
Togliattikaucuk Rubber Exports (unit-kilo tons)
|
Product
|
Jan-Oct 21
|
Jan-Oct 20
|
Isoprene Rubber
|
15.7
|
2.3
|
Butyl Rubber
|
49.2
|
34.9
|
SBR
|
39.9
|
25.6
|
Others
|
2.7
|
0.2
|
Total
|
107.6
|
63.0
|
Togliattikaucuk Rubber Exports ($ million)
|
Product
|
Jan-Oct 21
|
Jan-Oct 20
|
Isoprene Rubber
|
21.9
|
4.9
|
Butyl Rubber
|
73.4
|
55.2
|
SBR
|
56.6
|
29.1
|
Others
|
4.8
|
0.3
|
Total
|
156.6
|
89.5
|
Togliattikaucuk exported 107,600 tons of synthetic rubber in the first ten months in 2021 against 63,000 tons in the same period in 2020. Butyl rubber exports rose from 34,900 tons to 49,200 tons which led to increased revenues of $73.4 million against $55.2 million. Overall export revenues from synthetic rubber increased from $89.5 million in January to October 2020 to $156.6 million in the same period in 2021.
Togliattikaucuk is implementing a long-term comprehensive programme of measures aimed at reducing the impact on the environment. In order to reduce the carbon footprint, the company is applying a number of measures including tackling of emissions, turning waste into products, increasing the quality of wastewater treatment combined with resource saving.
Tatneft expects the new rubber projects at Togliattikaucuk to start construction this year. Licensing and engineering agreements were signed with Versalis in 2021. Projects include installations for butadiene-nitrile rubber and butadiene-styrene carbonylated latex, consisting respective capacities of 70,000 tpa and 30,000 tpa. Tatneft is also starting a project this year in Kazakhstan for the production of butadiene rubbers in Kazakhstan.
Russian methanol production Jan-Oct 2021
Russian Methanol Production
(unit-kilo tons)
|
Producer
|
Jan-Oct 21
|
Jan-Oct 20
|
Shchekinoazot
|
814.4
|
816.0
|
Gazprom Methanol
|
688.8
|
699.3
|
Metafrax
|
989.0
|
937.8
|
Akron
|
86.8
|
80.3
|
Azot, Novomoskovsk
|
213.3
|
173.8
|
Angarsk Petrochemical
|
25.4
|
45.9
|
Azot, Nevinnomyssk
|
106.7
|
101.9
|
Tomet
|
546.6
|
750.4
|
Ammoni
|
99.1
|
83.7
|
Totals
|
3570.2
|
3689.0
|
Russia produced 3.570 million tons of methanol in the first ten months in 2021 against 3.689 million tons in same period in 2020. The decline was due primarily to the lower production from Tomet, which fell from a total of 750,400 tons in January-October 2020 to 546,600 tons in the same period this year. At the end of 2021 Tomet placed a tender for 50 railway tanks for transportation of methanol in order to replace older rolling stock.
Metafrax produced 989,000 tons of methanol in the first ten months in 2021 against 937,800 tons in the same period in 2020, followed by Shchekinoazot dropping from 816,000 tons to 814,400 tons and Gazprom Methanol which dropped from 699,300 tons to 688,800 tons.
Russian Methanol Exports by Producer
(unit-kilo tons)
|
Producer
|
Jan-Oct 21
|
Jan-Oct 20
|
Azot Nevinnomyssk
|
5.1
|
5.2
|
Azot Novomoskovsk
|
78.1
|
62.1
|
Akron
|
6.8
|
12.9
|
Metafrax
|
337.3
|
426.9
|
Gazprom Methanol
|
349.9
|
401.0
|
Tomet
|
198.1
|
316.3
|
Shchekinoazot
|
563.1
|
600.9
|
Ammoni
|
0.1
|
5.5
|
Total
|
1538.5
|
1830.8
|
The two plants which are owned by the Evrokhim Group produced 213,300 tons at Novomoskovsk and 86,800 tons at Nevinnomyssk respectively. Ammoni in Tatarstan increased methanol production from 83,700 tons in January to October 2020 to 99,100 tons.
Tomet faced pressure on methanol production safety following an extended inspection in the period from 29 October to 15 November. Production is located at the Togliattiazot site where 42 violations of industrial safety requirements were revealed. Operation of equipment was decreed not to meet the requirements of industrial safety rules.
Tomet has a capacity of 950,000 tpa of which 40% of which is exported. Tomet intends to eliminate the comments made by Rostekhnadzor in time and to prevent the delay in the production of methanol.
Russian methanol exports, Jan-Oct 2021
Export shipments of Russian methanol from producers totalled 1.539 million tons in the first ten months in 2021 against 1.831 million tons in the same period last year. Average prices of Russian exports rose from $193 per ton in January-October 2020 to $325 in the same period in 2021. Tomet reduced exports from 316,300 tons in January to October 2020 to 198,100 tons in the same period in 2021 although other producers compensated with higher volumes partly to take advantage of higher prices.
Russian Methanol Export Destinations (unit-kilo tons)
|
Country
|
Jan-Oct 21
|
Jan-Oct 20
|
Belarus
|
105.8
|
93.8
|
Finland
|
657.0
|
840.6
|
Germany
|
1.9
|
1.9
|
Kazakhstan
|
20.0
|
33.0
|
Latvia
|
8.5
|
11.2
|
Lithuania
|
70.9
|
69.2
|
Netherlands
|
111.3
|
174.0
|
Poland
|
251.0
|
319.4
|
Romania
|
67.8
|
58.4
|
Slovakia
|
185.9
|
113.4
|
Spain
|
0.0
|
5.5
|
Turkey
|
6.4
|
26.8
|
UK
|
0.0
|
46.1
|
Ukraine
|
49.9
|
31.8
|
Others
|
5.8
|
16.6
|
Total
|
1542.1
|
1841.5
|
Metafrax exported 337.300 tons of methanol in the first ten months in 2021 versus 426,900 tons in the same period in 2020, whilst Gazprom Methanol (Sibmetakhim) reduced shipments from 335,400 tons to 401,000 tons. Shchekinoazot, Russia’s current largest exporter of methanol, reduced shipments from 600,900 tons to 563,100 tons in January-October 2021.
Finland accounted for 657,000 tons of Russian methanol exports in the first ten months in 2021 against 840,600 tons in the same period in 2020. The largest Central European destination for Russian methanol exports is Poland which accounted for 251,000 tons in the first ten months in 2021 against 319,400 tons in 2020. Metafrax and Gazprom Methanol are the main exporters via the Finnish ports, using the infrastructure established in the Soviet era, whilst Shchekinoazot started using the new terminal at Kotka in October. The company is expected to seek out other markets in 2022 from Kotka following the start-up of the M-500 plant.
The major destinations for methanol exports from Shchekinoazot include Belarus, Poland and Slovakia, using a number of routes. In 2021 Shchekinoazot and the Fertilog Group commissioned a new terminal, Tanking Terminal Kotka (TTK), at the port of the Finnish port of Kotka which is intended for usage for the overflow of methanol produced through the new M-500 plant. TTC has the facility to store 28,000 tons of methanol at a time, whilst providing a high rate of discharge of cargo from tanks and a high rate of loading of ships on two berths. The cargo turnover of the new terminal is up to 600,000 tpa of methanol.
Russian methanol domestic sales, Jan-Oct 2021
Russian Methanol Domestic Sales (unit-kilo tons)
|
Producer
|
Jan-Oct 21
|
Jan-Oct 20
|
Azot Nevinnomyssk
|
19.3
|
13.2
|
Azot Novomoskovsk
|
133.4
|
114.2
|
Metafrax
|
358.1
|
261.5
|
Gazprom Methanol
|
309.2
|
253.4
|
Tomet
|
311.1
|
359.1
|
Shchekinoazot
|
155.2
|
124.8
|
Ammoni (Mendeleevsk)
|
57.5
|
47.8
|
Total
|
1343.9
|
1173.9
|
Due to the increasing number of deaths and poisonings through illegal alcohol using substances such as methanol the Ministry of Internal Affairs of Russia is exploring the possibility of transferring responsibility for Russian methanol production to Rospotrebnadzor. The Ministry of Internal Affairs noted that for the illegal circulation of methanol and methanol-containing liquids, as well as the manufacture, storage and sale of products based on them, dangerous to life and health consumers, the criminal liability may be toughened. Proposals for these initiatives can be enshrined in the draft resolution of the government of the Russian Federation.
Russian Methanol Domestic Buyers (unit-kilo tons)
|
Consumer
|
Jan-Oct 21
|
Jan-Oct 20
|
Nizhnekamskneftekhim
|
260.2
|
170.0
|
Togliattikaucuk
|
103.8
|
112.9
|
Uralorgsintez
|
49.7
|
56.1
|
SIBUR-Khimprom
|
19.4
|
15.0
|
SIBUR Tobolsk
|
34.3
|
36.0
|
Omsk Kaucuk
|
72.7
|
68.5
|
Novokuibyshevsk NPZ
|
29.9
|
34.8
|
Uralkhimplast
|
19.3
|
16.5
|
Slavneft-Yanos
|
11.1
|
9.6
|
Metadynea
|
80.3
|
63.5
|
Kronospan
|
97.1
|
76.9
|
Gazprom
|
152.4
|
104.5
|
Khimsintez
|
29.0
|
10.8
|
Volzhsky Orgsintez
|
15.1
|
8.5
|
Others
|
369.5
|
398.8
|
Total
|
1343.9
|
1182.5
|
Producers have sought to clarify that there is no connection with mass methanol production and illegal alcohol containing methanol and thus should be excluded from tight control. However the federal authorities are facing a huge problem and are considering all options in order to try and stem these cases.
Sales of methanol on the Russian domestic market amounted to 1.344 million tons in the first ten months in 2021 against 1.174 million tons in the same period in 2020. Despite a drop in sales by Tomet from 359,100 tons to 311,100 tons, sales from several other producers increased.
Metafrax increased domestic merchant sales from 261,500 tons to 358,100 tons whilst Gazprom Methanol (Sibmetakhim) increased shipments to domestic customers to 309,200 tons from 253,400 tons.
Shchekinoazot increased merchant domestic sales from 124,800 tons to 155,200 tons and in Ammoni was able to increase sales from 47,800 tons to 57,500 tons.
Purchases of Methanol by Nizhnekamskneftekhim
(unit-kilo tons)
|
Producer
|
Jan-Oct 21
|
Jan-Oct 20
|
Azot Novomoskovsk
|
2.5
|
0.0
|
Metafrax
|
158.8
|
109.0
|
Gazprom Methanol
|
7.2
|
0.0
|
Shchekinoazot
|
27.8
|
4.7
|
Tomet
|
49.8
|
29.6
|
Ammoni
|
14.1
|
26.7
|
Total
|
260.2
|
170.0
|
Nizhnekamskneftekhim increased methanol merchant purchases from 170,000 tons in the first ten months in 2020 to 260,200 tons in the same period in 2021. The rise in purchases was due mainly to increased production of isoprene monomer.
Togliattikaucuk, which is owned by Tatneft, purchased 103,800 tons of methanol in the first ten months against 112,900 tons in the same period in 2020. Gazprom increased purchases of methanol for gas hydrates in Siberia from 104,500 tons in January-October 2020 to 152,400 tons in 2021. Most of the methanol purchased by Gazprom is sourced from Gazprom Methanol.
Russian Formaldehyde Production
(unit-kilo tons)
|
Producer
|
Oct-21
|
Sep 21
|
Pigment
|
3.6
|
1.9
|
Shchekinoazot
|
3.3
|
3.1
|
Akron
|
10.5
|
15.5
|
Metafrax
|
24.7
|
36.3
|
Sverdlov Plant
|
2.2
|
2.0
|
Khimsintez
|
5.1
|
5.3
|
Uralkhimplast
|
4.6
|
4.5
|
Nizhnekamskneftekhim
|
4.9
|
4.4
|
Gazprom Methanol
|
6.1
|
6.4
|
Metadynea
|
4.9
|
1.7
|
Total
|
70.0
|
81.1
|
In the formaldehyde resin sector Metadynea increased methanol purchases from 63,500 tons to 80,500 tons whilst Kronospan increased purchases from 76,900 tons to 96,100 tons. The Novomoskovsk methanol plant is the major supplier to both Metadynea and Kronospan. Uralkhimplast purchased 19,300 tons of methanol in the first ten months in 2021 against 16,500 tons in 2020, most of which was supplied by Metafrax. Khimsintez increased purchases from 10,800 tons to 29,000 tons.
In the second half of November, the cost of methanol on the Russian market remained in the range of 40,000-42,000 roubles per ton (hereinafter, including VAT), in the Central FD its cost is 41,500-43,500 roubles per ton. On 21 November at Shchekinoazot, a ten-day repair began at the methanol plant installation M-450, although the market was compensated due to the launch of the new M-500 plant. The M-450 plant was down for two weeks in order to replace the catalyst.
Metafrax Chemicals-second paraformaldehyde line
Metafrax Chemicals may build the second stage of paraformaldehyde production at the site at Gubakha. Metafrax Chemicals began construction of a paraformaldehyde production unit with a capacity of 30,000 tpa in May 2021. The company will produce a solid product in the form of granules that have no restrictions on the duration of transportation and shelf life. The company plans to produce paraformaldehyde grade A, intended for the manufacture of plastics, paints, resins, adhesives, insulating materials. The product is widely used in the production of chipboard and MDF as a binding polymer. The same species is intended for the production of herbicides in agriculture and antiseptics in animal husbandry.
Ammoni-2 construction and methanol expansion
Ammoni plans to build the second stage of its investment programme in Tatarstan by the end of 2027. A new complex consisting of modern energy-saving units of ammonia, methanol and urea will be built on a site adjacent to the existing Ammoni plant by the end of 2027 and will increase the output of marketable products by more than 2.6 times. The production capacity will comprise 1.2 million tpa for ammonia, 500,000 tpa of methanol and 1.4 million tpa of urea, and investment costs will amount to around €1.5 billion. The current Ammoni-1 plant comprises capacities of 717,500 tpa for ammonia and urea, and for methanol 233,800 tpa.
Regarding gas feedstocks a new pipeline is required to supply around 1.1 billion cubic metres per annum to the site. This will be dependent on an agreement between Ammoni’s owners SDS Azot at Kemerovo and Gazprom. At this stage the existing Ammoni complex produces methanol mostly for the domestic market for formaldehyde and rubber consumers, but the construction of the new complex is seen in the context of energy transition. In particular, both ammonia and methanol are considered as form options for storing and transporting hydrogen both for hydrogen energy and for transport that will use hydrogen as fuel.
Nakhodka methanol project approval
Nakhodka Mineral Fertiliser Plant (NZMU) received a positive conclusion in December from the state examination. The relevant conclusions were given by the Rosprirodnadzor.
This means that the main element of the future production of methanol in Nakhodka meets the environmental requirements established by the legislation of the Russian Federation. All infrastructure facilities of the NZMU received positive opinions: including treatment facilities for household wastewater, a marine terminal and a methanol production plant.
NZMU is an anchor resident of the territory of advanced development (TOR) Petrochemical. The general designer for the project for the construction of the methanol plant of the Nakhodka Mineral Fertiliser Plant (NZMU) is the GIAP group of companies.
The construction of the first stage of the chemical project began in September 2021. The capacity of the first stage is 1.8 million tpa of methanol and the second is 3 million tpa urea. The commissioning of the methanol plant is scheduled for the third quarter of 2023
|
AEON Volgograd methanol project-design
The start of the project for the production of methanol on the basis of the former Khimprom plant in the Kirov district of Volgograd is scheduled for mid-2022. The design stage is close to completion before moving to the approval stage which would enable construction to start. The plant is to be constructed with a capacity of 1.0 million tpa and is required to correlate with the current legislation in both industrial safety and environmental protection.
A main environmental challenge regards the sludge reservoir for Khimprom and needs to be completely cleaned and restored before construction can start. The main investor in this project AEON Corporation has put its case forward that the impact on the environment will be minimised and the new methanol plant will be completely different from the former industrial giant Khimprom which was forced to close in 2014.
Marubeni and Mitsubishi are supporting the project in terms of sales and construction, whilst Haldor Topsoe will provide the license, basic engineering, catalysts and proprietary hardware for methanol production.
The total investment costs for the Volgograd methanol project have been estimated at around $900 million. In addition to methanol AEON is developing a promising project to produce bioprotein from gas. This is pure protein that can be used as a substitute for fish flour for animal feed, which is an extension of "green" technologies and reducing the load on seas.
Environmental challenges for Indiga methanol project
The Indiga methanol project proposed by Ruskhim carries high environmental risks and will require a comprehensive study before being allowed to proceed. According to Russian standards for conducting environmental impact assessment (EIA), such complex infrastructure projects need to examine all aspects such as drilling sites, processing enterprises and transport infrastructure.
The Pechora River is already experiencing a powerful negative pressure from industrial development in the Komi Republic, and this the new project is expected to only increase the negative impact on river ecosystems. This will lead to new threats to aquatic biological resources.
Unlike the Skovorodino methanol project under construction in the Russian Far East the Indiga methanol project in the Yamal region will have to be undertaken almost from scratch. This not only involves the construction of a pipeline linking the plant to raw materials but also either the construction of a methanol terminal at Indiga that would allow exports, or alternative rail connections.
Russian butanol production Jan-Oct 2021
Russian N-Butanol Production (unit-kilo tons)
|
|
Jan-Oct 21
|
Jan-Oct 20
|
Angarsk Petrochemical Company
|
21.8
|
23.8
|
Azot, Nevinnomyssk
|
12.0
|
14.5
|
Gazprom neftekhim Salavat
|
43.4
|
52.2
|
SIBUR-Khimprom, Perm
|
23.6
|
25.0
|
Total
|
100.8
|
115.4
|
|
|
|
Russian Isobutanols Production (unit-kilo tons)
|
|
Jan-Oct 21
|
Jan-Oct 20
|
Angarsk Petrochemical Company
|
13.5
|
15.6
|
Gazprom neftekhim Salavat
|
24.6
|
25.5
|
SIBUR-Khimprom, Perm
|
29.9
|
40.1
|
Total
|
68.0
|
81.1
|
Russian normal butanol production totalled 100,800 tons in January to October 2021, against 115,400 tons in the same period in 2020. Gazprom neftekhim Salavat was the largest Russian producer, producing 43,400 tons against 52,200 tons in January to October 2020.
Isobutanol production in Russia dropped from 81,100 tons last year to 68,000 tons in January to October 2021. Gazprom neftekhim Salavat reduced production to 24,600 tons from 25,500 tons, and SIBUR-Khimprom reduced from 40,100 tons to 29,900 tons.
Russian domestic butanol sales, Jan-Oct 2021
Russian Butanol Consumption (unit-kilo tons)
|
Consumer
|
Jan-Oct 21
|
Jan-Oct 20
|
Akrilat
|
15.5
|
16.6
|
Dimitrievsky Chemical
|
13.3
|
12.3
|
Volzhskiy Orgsintez
|
6.6
|
6.7
|
Roshalsky Plant of Plasticizers
|
3.4
|
1.4
|
Others
|
13.5
|
15.8
|
Total
|
52.2
|
52.5
|
Russian Butanol Domestic Sales (unit-kilo tons)
|
Producer
|
Jan-Oct 21
|
Jan-Oct 20
|
Gazprom n Salavat
|
5.4
|
6.4
|
SIBUR-Khimprom
|
17.5
|
19.9
|
Angarsk Petrochemical Company
|
24.8
|
21.3
|
Azot Nevinnomyssk
|
0.3
|
2.3
|
Totals
|
48.1
|
50.0
|
Merchant normal butanol sales on the Russian domestic market dropped slightly in the first ten months in 2021 to 52,200 tons from 52,500 tons in the same period in 2020. The largest butanol buyer was Akrilat at Dzerzhinsk which took 15,500 tons down from 16,600 tons and unchanged from last year whilst Dimitrievsky Chemical increased purchases slightly from 13,300 tons to 12,300 tons. Angarsk Petrochemical was the largest supplier of normal butanols in the first ten months shipping 24,800 tons versus 21,300 tons in the same period in 2020 whilst SIBUR-Khimprom reduced sales from 19,900 tons to 17,500 tons. Both SIBUR-Khimprom and Gazprom neftekhim Salavat direct almost the entire volume of n-butanol produced to internal processing.
Russian acetone production & exports, Jan-Oct 2021
Russian Acetone Production (unit-kilo tons)
|
Producer
|
Jan-Oct 21
|
Jan-Oct 20
|
Ufaorgsintez
|
38.2
|
29.6
|
Kazanorgsintez
|
41.9
|
41.5
|
Novokuibyshevsk Petrochemical
|
33.8
|
35.9
|
Omsk Kaucuk
|
23.5
|
20.3
|
Total
|
137.4
|
127.4
|
Russian acetone production amounted to 137,400 tons in the first ten months tons in 2021 against 127,400 tons in the same period in 2020. Omsk Kaucuk produced 23,500 tons of acetone up from 20,300 tons in the same period in 2020 due to technical problems. Conversely, Ufaorgsintez increased production from 29,600 tons to 38,200 tons whilst Kazanorgsintez reduced from 41,900 tons to 41,500 tons.
Russian Acetone Exports (unit-kilo tons)
|
Country
|
Jan-Oct 21
|
Jan-Oct 20
|
Belarus
|
9.4
|
8.5
|
Netherlands
|
25.6
|
11.9
|
Turkey
|
5.7
|
7.2
|
Lithuania
|
1.4
|
1.0
|
Latvia
|
8.5
|
1.2
|
Others
|
7.0
|
10.6
|
Total
|
57.6
|
40.4
|
Exports of acetone from Russia amounted to 57,600 tons in the first ten months in 2021 against 40,400 tons in the same period in 2020. The Netherlands was the major destination for Russian acetone exports in the first ten months this year, accounting for 25,600 tons, followed by Belarus with 9,400 tons.
Russian plasticizer market Jan-Oct 2021
2021 was marked by record high prices of plasticizers in the Russian market in that from January to October, the cost of domestic dioctyl phthalate increased by almost 58%, and dioctyl terephthalate by 30%. At the same time after prices had peaked in the middle of the year some market softening was seen in the fourth quarter. Kamteks-Khimprom at Perm was forced to stop production of DOP in mid-2021 due to the high cost of 2-EH which it needs to import.
Production and consumption of DOF and DOTP in Russia
(unit-kilo tons)
|
Indicators
|
Jan-Oct 21
|
Jan-Oct 20
|
2020
|
Production
|
112.6
|
109.3
|
132,9
|
Export
|
13.9
|
16.7
|
19,2
|
Import
|
14.3
|
11.7
|
14,6
|
Market capacity
|
113,1
|
104,3
|
128,3
|
Share of exports in production
|
12%
|
15%
|
14%
|
Share of imports in consumption
|
13%
|
11%
|
11%
|
Gazprom neftekhim Salavat produced 27,800 tons of DOP in January to October 2021, which is 11% more than in the same period in 2020.
SIBUR produced 84,800 tons of DOTP which was unchanged from 2020 but reduced exports by 17% to 13,900 tons whilst imports rose by 23%.
Russian Ethyl Acetate Imports (unit-kilo tons)
|
Company
|
Jan-Oct 21
|
Jan-Oct 20
|
Laxmi Organics Industries
|
3.4
|
4.1
|
Ineos
|
1.3
|
1.5
|
Rhodia Brasil
|
0.7
|
0.8
|
KH Chemicals
|
0.3
|
0.0
|
IOL Chemicals And Pharmaceuticals
|
0.2
|
0.9
|
Artha Mineral
|
0.1
|
0.0
|
Anhui Ruibai
|
0.1
|
0.0
|
Sasol Chemie
|
0.1
|
0.2
|
Solventis
|
0.1
|
0.0
|
Others
|
0.3
|
0.2
|
Total
|
6.5
|
7.6
|
Tatneft suspends maleic anhydride project
Tatneft has decided to suspend the construction of the maleic anhydride project after assessing capital investments, market conditions, etc. At the end of 2021 Tatneft concluded that the payback of the project does not meet initial expectations. The project was planned for a site at the Minnibayevo Gas Processing Plant. SIBUR is well advanced with its own maleic project at Tobolsk. This plant of 45,000 tpa capacity is close to completion.
Metadynea-propylene glycol
Metafrax-melamine expansion
Metafrax Group plans to double its planned melamine production capacity to 80,000 tpa by 2025. Metafrax Chemicals signed a memorandum of understanding with the Swiss Casale SA, which involves the construction of a plant for 40,000 tpa of melamine at Gubakha. Casale will receive an EPC contract.
The domestic Russian melamine market is estimated at about 60,000 tpa. The commissioning of the second 40,000 tpa melamine line at Gubakha is scheduled for 2025, the cost of the project is estimated at €270 million. The new melamine production will be fully integrated with the ammonia-urea-melamine facilities, the first project of which should be completed in 2022. Commissioning of the second melamine facility combined with additional ammonia and urea capacity is scheduled for the second half of 2025.
|
Metadynea (part of Metafrax Group) signed a license agreement and a contract for the basic design of the production complex of low-tonnage chemical products with Air Liquide Engineering and Construction. The contract provides for the basic design of a complex for the production of low-tonnage chemical products including bio-propylene glycol (BIO-MPG) and glycerine at the Orekhovo-Zuyevo site.
The complex is to be designed using a unique technology for the synthesis of BIO-IPG from glycerol, developed and patented by BASF. The design of the complex is planned to be completed in 2022, and Metadynea intends to launch production at the end of 2024.
The total investment of Metafrax Group in the project may amount to more than 5 billion roubles with a capacity of up to 30,000 tpa. The Metadynea project involves the production of a product completely from biodegradable raw materials, renewable sources of plant origin. The Metadynea project will be able to almost completely cover the Russian market.
Volzhsky Orgsintez-potassium butyl xanthate
Volzhsky Orgsintez and GIAP signed a contract for the development of project documentation for the construction of a new production of potassium butyl xanthate. The production capacity will be 20,000 tpa. Construction is scheduled to begin in 2022. Volzhsky Orgsintez currently operates a plant for the production of potassium butyl xanthate with a capacity of 26,500 tpa. Potassium butyl xanthate is a flotation reagent used in the enrichment of ores of heavy, non-ferrous, noble and rare metals, native copper as a reagent-collector.
Russian TDI-MDI imports, Jan-Oct
Russian TDI Imports (unit-kilo tons)
|
Country
|
Jan-Oct 21
|
Jan-Oct 20
|
Belgium
|
0.963
|
0.367
|
China
|
15.388
|
3.977
|
France
|
0.782
|
0.118
|
Germany
|
4.955
|
11.849
|
Hungary
|
6.597
|
7.700
|
Netherlands
|
1.572
|
1.700
|
Saudi Arabia
|
2.440
|
6.331
|
South Korea
|
12.432
|
5.283
|
Turkey
|
0.256
|
0.326
|
US
|
4.375
|
1.100
|
Others
|
0.102
|
3.300
|
Total
|
50.410
|
43.177
|
Russian TDI imports amounted to 50,410 tons in the first ten months in 2021 against 43,177 tons in the same period in 2020. Values of Russian TDI imports rose from a total of $70.758 million in January to October 2020 to $129.502 million in the same period in 2021, with average prices per ton rising from $1691 to $2577.
Russian TDI Imports ($ million)
|
Country
|
Jan-Oct 21
|
Jan-Oct 20
|
Belgium
|
3.119
|
2.455
|
China
|
37.380
|
5.809
|
France
|
2.171
|
1.185
|
Germany
|
13.414
|
17.100
|
Hungary
|
19.506
|
15.000
|
Netherlands
|
3.683
|
2.371
|
Saudi Arabia
|
6.897
|
12.567
|
South Korea
|
29.293
|
6.371
|
Turkey
|
1.121
|
0.765
|
UK
|
0.252
|
0.001
|
US
|
10.948
|
15.111
|
Others
|
0.311
|
0.000
|
Total
|
129.502
|
70.758
|
China supplied 15,388 tons to Russia in the first ten months in 2021 against 3,977 tons in the same period in 2020, whilst Hungary reduced shipments from 7,700 tons to 6,597 tons. Germany reduced sales of TDI to Russia to 4,955 tons from 11,849 tons and Saudi Arabia reduced shipments from 6,331 tons to 2,440 tons.
MDI imports into Russia rose to 153,423 tons in January to October 2021 from 129,790 tons in the same period in 2020. Values of Russian MDI imports amounted to $372.918 million in the first ten months rising more than double from the $187.426 million in the same period last year. Values were boosted by the increase in both volumes imported and average prices per ton which rose from $1351 to $2385.
The Netherlands shipped 32,493 tons of MDI to Russia in the first ten months in 2021 against 25,692 tons in the same period in 2020, whilst Saudi Arabia increased shipments from 34,857 tons to 37,061 tons. Germany and Belgium are also major suppliers to the Russian market. China was the source of imports of 35,885 tons in the first ten months last year from 29,201 tons in the preceding ten months. From the larger import sources of MDI Saudi Arabia supplied shipments to Russia in the first ten months at $2297 per ton, Netherlands at $1948 per ton and China at $2860 per ton.
Russian Imports of MDI
(unit-kilo tons)
|
Country
|
Jan-Oct 21
|
Jan-Oct 20
|
Belgium
|
17.602
|
13.344
|
China
|
35.885
|
29.201
|
Germany
|
16.079
|
18.015
|
Hungary
|
4.437
|
3.114
|
Japan
|
1.87
|
1.595
|
Netherlands
|
32.493
|
25.692
|
Portugal
|
3.616
|
2.414
|
Saudi Arabia
|
37.061
|
34.857
|
South Korea
|
2.362
|
0.97
|
Others
|
2.018
|
0.588
|
Total
|
153.423
|
129.79
|
The largest region for Russian MDI imports remains the Vladimir Oblast where there are a number of polyurethane manufacturers followed by Moscow, Tatarstan and Lipetsk. Shipments of MDI to the Vladimir Oblast accounted for 60,942 tons in the period January to October 2021 for $134.446 million which accounted for 40% of Russian imports and 36% of value.
Prices for both TDI and MDI were holding third quarter levels in the fourth quarter but can also be forced higher due to feedstock costs driven by high crude. Logistical issues are impacting on chemical producers globally with Europe in particular facing supply side bottlenecks. This is affecting the market in some cases in raw material or finished product deliveries and it appears that there is no real sign of the logistics conundrum improving at least until into 2022.
In China, overall supply in October was relatively tight as most of the major pure MDI plants were operating at around 75%. Lianheng’s MDI plant in Shanghai was running at a low level, while other major producers in China were operating as normal. TDI availability from China was affected by a force majeure at Cangzhou Dahua’s 140,000 tpa plant at the start of October.
Ukrainian polymer imports & production, Jan-Oct 2021
Ukrainian Polymer Imports
(unit-kilo tons)
|
Product
|
Jan-Oct 21
|
Jan-Oct 20
|
PVC
|
18.5
|
25.1
|
LDPE
|
52.3
|
57.0
|
LLDPE
|
50.8
|
52.0
|
HDPE
|
55.4
|
66.6
|
Polypropylene
|
82.7
|
88.7
|
Polyethylene imports into Ukraine amounted to 220,400 tons in the period January to October 2021 against 224,900 tons a year earlier. HDPE imports amounted to 74,400 tons against 80,900 tons for the same period in 2020, whilst LDPE imports dropped by 2% to 65,700 tons. LLDPE imports was unchanged at 50,800 tons and other imports rose from 10,000 tons to 12,600 tons.
Polypropylene imports into the Ukrainian market amounted to 113,300 tons in January to October 2021 against 113,000 tons in the same period in 2020. The total supply of polypropylene homo grade amounted to 81,400 tons, which is 10% less than in 2020, whilst imports of propylene block copolymers dropped from 11,400 tons to 11,000 tons. Imports of random copolymers increased from 12,900 tons to 14,900 tons. The total volume of supplies of other propylene copolymers amounted to just over 2,300 tons.
In the first ten months of this year, PVC imports into Ukraine dropped by 21% to 22,900 tons against 25,100 tons. Export sales of PVC, produced by Karpatneftekhim, increased by 18% compared to last year from 136,300 tons to 160,200 tons.
Karpatneftekhim Jan-Oct 2021
Karpatneftekhim Petrochemical Exports
(unit-kilo tons)
|
Product
|
Jan-Oct 21
|
Jan-Oct 20
|
Propylene
|
85.2
|
80.3
|
Benzene
|
69.2
|
57.2
|
Karpatneftekhim exported 85,200 tons of propylene in the first ten months in 2021 against 80,300 tons in the same period in 2020, whilst benzene imports rose from 57,200 tons to 69,200 tons. The largest share of propylene shipments was exported to Poland.
Karpatneftekhim examining project for thermoplastic elastomers
Karpatneftekhim is considering the possibility of building a production of styrene-butadiene-styrene thermoplastic with a capacity of up to 50,000 tpa. The company sent a corresponding request to engineering companies to receive proposals on production technology and design. The company plans to use butadiene for the production of TEP from its own pyrolysis unit.
Styrene-butadiene-styrene known as thermoplastic elastomers are used as additives to asphalt concrete pavement and roofing materials. The key features of TEP include high compatibility with road and roof bitumen, an optimal balance of mechanical strength and elasticity, as well as the possibility of repeated processing without deterioration of quality characteristics. Karpatneftekhim already produces C4s as a by-product of olefin production which would form the feedstock base for the new plant.
Ukrainian methanol imports, Jan-Oct 2021
Ukrainian methanol imports
(unit-kilo tons)
|
upplier
|
Aug-21
|
Sep-21
|
Oct 21
|
Metafrax Chemicals
|
1.1
|
1.6
|
4.3
|
Shchekinoazot
|
3.2
|
2.6
|
2.6
|
Others
|
0.1
|
0.3
|
0.0
|
Total
|
4.3
|
4.5
|
6.9
|
Imports of methanol into Ukraine increased in October to 6,892 tons against 4,514 tons in September with Metafrax Chemicals increasing deliveries from 1,598 tons to 4,267 tons. Overall methanol imports into Ukraine amounted to 69,160 tons in the first ten months in 2021 against 60,500 tons in the same period in 2020.
One of the largest Ukrainian methanol consumers Ukrgasvydobuvannya has entered into an agreement for the supply of methanol in the volume of 14,700 tons from December 2021 to December 2022 with AGTG SA (Switzerland). Methanol produced by Shchekinoazot, and Metafrax Chemicals will be supplied to the customer's gas production departments by rail on DAP terms at an indicative price of €449.85 per ton.
Mogilevkhimvolokno paraxylene and methanol purchases 2022
Belarussian imports of methanol (ktons)
|
Russian company
|
Transit point
|
Sept 21
|
Oct 21
|
Azot Novomoskovsk
|
Zadneprovskaya
|
4.03
|
7.24
|
Azot Nevinnomyssk
|
Zadneprovskaya
|
0.24
|
0.0
|
Shchekinoazot
|
Zadneprovskaya
|
3.11
|
4.13
|
Shchekinoazot
|
Lyshchitsy
|
10.4
|
8.38
|
Shchekinoazot
|
Postavi
|
0.13
|
0.06
|
Shchekinoazot
|
Rechitsa
|
0.65
|
0.78
|
Gazprom Methanol
|
Osipovichi-1
|
0.0
|
0.06
|
Total
|
|
18.6
|
24.7
|
Mogilevkhimvolokno undertook two raw material tenders in October for paraxylene and methanol deliveries in 2022. Up to 75,000 tons of paraxylene are required next year, delivered in volumes of 19,500 tons for the first, third and fourth quarters and 16,500 tons for the second quarter. Mogilevkhimvolokno has also placed a tender for 6.000 tons of methanol to be supplied in 2022.
Kazakh petrochemical investments 2022 and future
The 500,000 tpa polypropylene plant is expected to start in the first half of 2022 after progress had achieved 96% of the project schedule by the end of 2021. The polypropylene project marks the first major polymer investment in Kazakhstan which is to be followed by polyethylene as soon as KazMunaiGaz can decide upon a partner. Other polymer and chemical projects being undertaken include the construction of a PET plant in the Atyrau region with a capacity of 430,000 tpa and a plant for the production of methanol in the West Kazakhstan region, with a capacity of 130,000 tpa.
Tatneft-KazMunayGaz butadiene jv
Tatneft and KazMunayGaz signed a corporate agreement on the activities of the jv Butadien LLP for the for the production of butadiene rubbers. The launch of production is scheduled for 2026 on the territory of the FEZ National Industrial Petrochemical Technopark" in the Atyrau region in Kazakhstan. The planned capacity of the enterprise is up to 180,000 tpa of butadiene and butadiene rubbers.
The shares of KazMunayGaz and Tatneft in the project are 25% and 75% respectively. Tentatively, the cost of the project is estimated at about $1 billion, and the parties are considering options for financing the project, including through borrowed funds. It is assumed that raw materials will be supplied from the Tengiz and Korolev fields of Kazakhstan. Finished products are planned to be sent to the tyre plant in the Karaganda region, as well as for export.
Aromatics production at Atyrau refinery dropped in 2021
The Atyrau Refinery reduced the production of production of benzene in the first ten months to 6,500 tons against 40,200 tons in the same period in 2020, whilst paraxylene dropped from 140,600 tons to 38,200 tons.
Over the full year the targets for the planned production of benzene and paraxylene were reduced five times over 2020 from 246,000 tons to 55,300 tons. The reasons for the decline include electricity failures at the refinery at the start of 2021 and then later in the year the focus of the refinery on fuel production at the expense of aromatics production.
Kazakh methanol import tenders 2022
In December the Atyrau Refinery announced a tender for the purchase of 13,991 tons of methanol for 2022. Delivery is required in batches of 520 tons for the whole year. The amount sought for 2022 is double last year’s volume which dropped due to the unstable operation of the plant. Oil company KazMunayTeniz announced a tender in December for the purchase of 61.644 tons of methanol for delivery in 2022. Applications for participation in the tender were being accepted until late December.
Shipments of the product from Russia in January-November decreased by half compared to the same period in 2020, by 7.7 thousand tons, to 7.5 thousand tons, according to operational data of railway freight forwarders. Suppliers of methanol were Metafrax Chemicals (4.4 thousand tons) and Shchekinoazot (3.1 thousand tons). For the whole of 2020, the refinery received 16,800 tons of methanol.
Kazakh polymer imports Jan-Oct 2021
Kazakh Polymer Imports (unit-kilo tons)
|
Product
|
Jan-Oct 21
|
Jan-Oct 20
|
HDPE
|
103.8
|
123.5
|
LDPE
|
18.7
|
22.1
|
LLDPE
|
9.0
|
10.5
|
PP
|
37.3
|
33.3
|
PVC
|
59.1
|
47.4
|
In January-October 2021, imports of polypropylene to Kazakhstan increased by 12% compared to the same period in 2020 to 37,300 tons against 33,300 tons. Homopolymer imports amounted to 26,500 tons in January to October 2021 against 26,300 tons, whilst imports of propylene copolymers increased from 7,000 tons to 10,800 tons. Exports of polypropylene grew more significantly by 34%, rising from 19,300 tons to 26,500 tons.
In the first ten months in 2021, imports of polyethylene to Kazakhstan decreased by 15% to 131,500 tons against 154,000 tons in the same period in 2020. HDPE imports amounted to 103,800 tons, which is 19% lower whilst LDPE dropped 18% to 18,700 tons. LLDPE imports dropped by 17% to 9,000 tons.
Summary archives from Last year :
|