Contents of CIREC Monthly News, 25 May 2021
Russian chemical production, Jan-Mar 2021
Russian Chemical Production
(unit-kilo tons)
|
Product
|
Jan-Mar 21
|
Jan-Mar 20
|
Caustic Soda
|
329.4
|
330.0
|
Soda Ash
|
874.0
|
887.0
|
Ethylene
|
1,134.2
|
1,084.5
|
Propylene
|
784.8
|
694.7
|
Benzene
|
356.2
|
392.0
|
Xylenes
|
144.0
|
120.5
|
Styrene
|
202.5
|
176.3
|
Phenol
|
64.7
|
64.7
|
Ammonia
|
5,200.0
|
5,100.0
|
Nitrogen Fertilisers
|
2,951.0
|
2,854.0
|
Phosphate Fertilisers
|
1,086.0
|
1,075.0
|
Potash Fertilisers
|
2,737.0
|
2,469.0
|
Plastics in Bulk
|
2,728.0
|
2,520.0
|
Polyethylene
|
897.0
|
829.0
|
Polystyrene
|
146.9
|
137.3
|
PVC
|
278.7
|
282.2
|
Polypropylene
|
532.3
|
483.3
|
Polyamide
|
49.9
|
47.1
|
Synthetic Rubber
|
447.0
|
404.0
|
Synthetic Fibres
|
50.1
|
37.2
|
Russian chemical production rose 6.7% in the first quarter in 2021 over the same period in 2020, with the largest rise seen in the output of mineral fertilisers. Ethylene production increased from 1.085 million tons in the first quarter last year to 1.134 million tons this year whilst propylene rose from 694,700 tons to 784,800 tons.
The production of polymers increased to 2.728 million tons from 2.520 million tons in January to March 2020 including a rise in polyethylene production from 829,000 tons to 897,000 tons. More than half of the olefin and polyolefin production in in Russia is undertaken by plants belonging to the SIBUR and TAIF groups which now appear to be on the cusp of a large-scale merger. If fully undertaken, the transaction should have a significant impact on future production trends and project investment.
Russian plants produced 447,000 tons of synthetic rubber in the first quarter, which is 10.2% more than in the same period in 2020. Rubber markets have improved in the first quarter in terms of volume demand although margins remain tight.
In the base chemical sector Russian ammonia production rose from 5.1 million tons in the first quarter in 2020 to 5.2 million tons in the same period this year. Caustic soda production amounted to 329,400 tons against 330,000 tons in 2020 whilst soda ash dropped from 887,000 tons to 874,000 tons. Fertiliser production rose 12% in the first quarter to 6.743 million tons.
Russian chemical trade, Jan-Mar 2021
Russian Chemical and Chemical Product Values ($ million)
|
Product Category
|
Exports Q1 21
|
Exports Q1 20
|
Imports Q1 21
|
Imports Q1 20
|
Inorganic chemicals
|
729.6
|
674.7
|
702.9
|
683.3
|
Organic chemicals
|
756.8
|
758.3
|
1364.0
|
1175.4
|
Pharmaceuticals
|
319.0
|
221.1
|
3129.9
|
1678.7
|
Fertilisers
|
2094.3
|
1483.2
|
48.7
|
41.3
|
Dyes, pigments
|
76.1
|
81.2
|
436.2
|
403.2
|
Oils and resinoids
|
211.7
|
264.9
|
814.3
|
799.0
|
Surface-active agents
|
140.8
|
126.6
|
372.5
|
351.5
|
Glues; enzymes
|
13.3
|
12.1
|
185.0
|
168.9
|
Explosives
|
34.8
|
12.1
|
6.9
|
6.4
|
Photographic
|
3.4
|
3.2
|
61.2
|
64.5
|
Misc. chemicals
|
232.2
|
246.9
|
946.9
|
911.2
|
Total
|
4611.9
|
3884.3
|
8068.5
|
6283.4
|
Exports of chemical products from Russia in January-March 2021 increased by 24.8% in value terms, in physical terms by 21.9% compared to the same period last year. Revenues from fertilisers rose by 29.5% from $1.483 billion to $2.094 billion. Imports of organic chemicals into Russia rose from $1.175 billion in the first quarter in 2020 to $1.364 billion in 2021 whilst export values of organic chemicals increased slightly from $758.3 million to $758.8 million.
The share of CIS countries accounted for 14% of Russian chemical exports and the rest of the world accounted for 86%. As part of Russia’s total export structure, the share of chemical products in the first quarter amounted to 7.5%. This compares against 6.1% in the same period in 2020.
Methanol exports from Russia dropped in the first quarter to 483,400 tons against 593,400 tons, with the decline attributed mainly to the lower production by Tomet. Despite lower volumes methanol prices were higher in the first quarter. Propylene exports from Russia amounted to 20,700 tons in the first quarter against 16,200 tons in the first three months in 2020. Lukoil-NNOS reduced export shipments from 12,800 tons to 7,600 tons whilst the Angarsk Polymer Plant shipped 10,300 tons against zero last year. Propylene exports from Russian producers amounted to 62,900 tons in 2020 against 60,600 tons in 2019, but these shipments could be phased out if Lukoil-NNOS goes ahead with its polypropylene project at the Kstovo refinery.
Imports of benzene amounted to 10,100 tons in the first quarter versus 9,500 tons in the same period in 2020. Shchekinoazot has been the major importer of benzene from Belarus this year due to geographical proximity, whilst Kuibyshevazot is currently importing from Ukraine and Kazakhstan. Benzene exports from Russia declined from 28,500 tons in the first quarter in 2020 to 13,700 tons in the same period in 2021. The only oil-based benzene producer to export was Kirishinefteorgsintez which shipped 6,900 tons in the first quarter down from 7,900 tons. Russian phenol exports were constrained by lower production at Omsk Kaucuk.
Russian Aggregate Trade in Plastics
|
Period
|
Exports ktons
|
Exports $ mil
|
Imports ktons
|
Imports $ mil
|
Q1 21
|
949.5
|
1201.4
|
897.7
|
2480.0
|
Q1 20
|
598.5
|
766.6
|
883.0
|
2135.6
|
*For breakdown of statistics or specific product enquiries please contact us
|
Caprolactam and paraxylene are two other organic chemical products where Russian exports are undertaken due to the lack of domestic processing capacity. For organic chemical imports PTA is the currently the most important product in Russia, followed by MEG and TDI. MEG imports are almost entirely sourced from Saudi Arabia, of which nearly all is sent to Kaliningrad.
In the plastics sector Russian exports rose from 598,632 tons in the first quarter in 2020 to 949,498 tons in the same period in 2021. Values of plastics’ exports rose from $766.638 million to $1201.360 million. The significant rise in exports of bulk plastics was down almost exclusively to ZapSibNeftekhim and the rise in polyethylene shipments from SIBUR.
Outline of SIBUR-TAIF merger
Main Chemical Assets of SIBUR-TAIF
|
Company
|
Location
|
Kazanorgsintez
|
Kazan
|
Nizhnekamskneftekhim
|
Nizhnekamsk
|
SIBUR-Kstovo
|
Kstovo
|
SIBUR-Khimprom
|
Perm
|
SIBUR-Tobolsk
|
Tobolsk
|
Voronezhsintezkaucuk
|
Voronezh
|
ZapSibNeftekhim
|
Tobolsk
|
SIBUR and Taif recently announced the start of a merger of the two groups on 23 April 2021 which symbolises possibly the most significant development in the Russian chemical industry for more than twenty years. The merger, assuming it is approved and goes ahead as envisaged, has represented a possible option for both groups over the past decade. At present the two groups remain competitors on the domestic market but have considerably less influence in global context. Taking a broad range of factors into account such as economies of scale, the future direction of oil prices, global competition, etc SIBUR and TAIF have decided to merge largely as a marriage of convenience.
The TAIF Group possesses a unique product portfolio and technologies that, together with SIBUR's competencies, will allow the combined company to implement an ambitious growth programme. The combination of assets and professional teams are intended to increase the productivity of leading petrochemical enterprises and significantly strengthen the position of the Russian petrochemical industry in the global market.
Share agreements for SIBUR-TAIF merger
Existing TAIF shareholders will receive a 15% stake in SIBUR Holding in exchange for the transfer of a controlling interest in TAIF’s group of petrochemical and energy companies. The remaining stake in TAIF can be subsequently purchased by the combined company. The deal will be closed subject to completion of the relevant corporate procedures and receipt of necessary regulatory approvals. The principle of the merger envisages that a company will be created on the basis of SIBUR Holding. The deal is expected to be completed by the end of Q3 2021.
Background reasons for TAIF joining with SIBUR
The attraction of the merger from SIBUR’s perspective is fairly straightforward in that gains control of Nizhnekamskneftekhim, the largest and most diverse petrochemical complex in Russia. From the perspective of TAIF, the start-up of the ZapSibNeftekhim complex at Tobolsk, combined with SIBURs existing plants and other projects, has meant that Tatarstan is starting to lose its dominant position in the domestic chemical industry. It has forced Tatarstan’s chemical holdings TAIF and Tatneft to examine their own structure and product direction.
Kazanorgsintez and Nizhnekamskneftekhim ultimately cannot compete against SIBUR due to its feedstock base and there is a case put forward for higher added value products. SIBUR is considering the strategic advantage of the Tatar Republic to lie in the orientation towards the production of structural plastics, composite materials, and small-tonnage chemistry.
Feedstock advantage of SIBUR-TAIF merger
The proposed merger of SIBUR and TAIF groups is intended to facilitate more efficient distribution of feedstock to ensure full capacity utilisation and further development of the petrochemical cluster in Tatarstan. The new company is expected to continue with funding for TAIF’s approved capex programme and development of the group’s assets, bringing together TAIF’s business management expertise and strength in human capital to all of the combined group’s entities.
SIBUR may need to sell assets
SIBUR may be required to sell a number of assets at the request of Federal Antimonopoly Service (FAS) in order to complete the merger with TAIF. SIBUR may own types of business that FAS deems inappropriate as part of the combined company.
Which assets will be deemed appropriate to offload may depend on an in-depth analysis by the FAS. In particular, questions could be raised whether the combined ethylene capacity of SIBUR and TAIF of 73% of total Russian capacity would be excessive. Current ethylene capacity does not include the new 600,000 tpa cracker under construction at Nizhnekamskneftekhim nor the 2.3 million tpa cracker for the Amur Gas Chemical Complex where construction is in the early stages.
Amur Gas Chemical Complex-logistics of delivery equipment
The first cargoes to be delivered to the Svobodny site for the construction site of the Amur Gas Chemical Complex are to be delivered this summer involving columns for pyrolysis weighing almost 1500 tons. In June, the barge will start its journey along the Amur and Zeya rivers.
Deliveries will be made using a specially designed barge called Tomsk with a capacity of 5,700 tons. The barge is being built at the Damen Yichang shipyard in China in order to deliver large cargoes along the Amur and Zeya rivers for the Amur Gas Chemical Complex. Specifications of the barge size include length of 111.75 metres, width of 26 metres and height of 3.8 metres high, with the full capacity 5,700 tons. The barge is designed so that when transporting heavy columns its precipitation allows one metre for unhindered passage along the fairway of the shallow river Zeya with a guaranteed depth of 1.1 metres. Also, the barge is equipped with a ballast system for safe passage under bridges if necessary.
Amur Gas Chemical Complex
main products
|
Product
|
Capacity
|
Ethylene
|
2.3 million tpa
|
Polyethylene
|
2.3 million tpa
|
Polypropylene
|
400,000 tpa
|
After passing all the necessary tests and certifications in China the barge will go to the port of Masan in South Korea, where a large-capacity cargo will be loaded. The ship, with its barge and column fixed on it, will go to the Russian port of De-Kastri from where the barge with a column will begin its journey along the rivers Amur and Zeya to the construction site of the Amur Gas Chemical Complex. It will be delivered to a temporary berth on the 212 kilometre of the river Zeya and unloaded. Then the barge will go for the next cargo. The barge will be able to use this route from May until September. The estimated completion date for construction of the Amur Gas Chemical Complex and start-up work is 2024.
Environmental issues in construction of Amur Gas Chemical Complex
Environmental issues form a kay part in the planning for construction for the Amur Gas Chemical Complex. Waste-free production technologies are being created which means that almost all the drains generated in the production process will be cleaned up and returned to the technology.
The AGCC's design decisions include activities aimed at conserving biodiversity, such as the installation of animal and bird protection devices in the perimeter of the complex, torch-setting devices for the protection of animals and birds, and fish protection devices on the water intake in order to preserve young fish. The production of its own concrete with an output of 220 cubic metres of concrete solution per hour has already been launched for the AGCC saving on the need to source concrete from other sources.
|
Currently, the engineering preparation of this site is being completed, the territory will be fenced, and reinforced concrete slabs will be laid. The volume of deliveries to the Amur Gas Chemical Complex site will begin to increase starting in June. In 2021, more than 58,000 tons of cargo for the construction of pyrolysis and polymer plants are being prepared, including 12,300 tons of oversized equipment more than 50 columns.
A temporary customs control zone has been set up at the construction site of the Amur Gas Chemical Complex. With the creation of a temporary customs control zone in the Amur Gas Chemical Complex, the equipment needed for the construction of the complex will undergo customs clearance and declaration directly on the territory of the future enterprise. This will reduce the time required by customs operations, which is important for meeting the schedule of construction and installation work.
Feedstocks Amur Gas Chemical Complex
Amur Gas Processing Plant
main products
|
Product
|
Capacity
|
Ethane
|
2.5 million tpa
|
Propane
|
1.0 million tpa
|
Butane
|
500,000 tpa
|
Pentane-hexane
|
200,000 tpa
|
SIBUR’s Amur Gas Chemical Complex will rely on feedstock arrangements with Gazprom for LPGs and ethane. Gazprom plans to process 42 billion cubic metres of natural gas at the Amur GPP which will produce 1.5 million tpa of LPGs (1 million tpa of propane and 500,000 tpa of butane), 2.5 million tpa of ethane, 200,000 tpa of pentane-hexane fraction and 60 million cubic metres of helium. Gazprom is constructing the Amur GPP as part of the infrastructure of the Power of Siberia pipeline, designed to export gas to China.
Nizhnekamskneftekhim-ethylene project update
Nizhnekamskneftekhim pyrolysis unit
main characteristics
|
Licensor
|
Linde
|
Contract management
|
Gemont
|
Capacity
|
Ethylene 600 ktpa including six furnaces
|
Capacity
|
Propylene 272.8 ktpa
|
Naphtha Processing
|
1.798,500 million tpa
|
Equipment deliveries 2020
|
264 units
|
The construction process for the new 600,000 tpa ethylene plant at Nizhnekamskneftekhim was stopped for a few weeks in late April following so-called violations. The government safety body Rostekhnadzor uncovered numerous faults following an unannounced visit to the site in March, culminating in court proceedings against Nizhnekamskneftekhim’s owners TAIF. Project construction was suspended whilst the court evaluated the findings which could mean some delays on meeting the scheduled dates for completion.
Lummus Technology has been awarded a master licensor contract by Nizhnekamskneftekhim to supply the technologies for new ethylbenzene, styrene, ethylene dimerization, and olefins conversion units to be built as part of an expansion of an olefins production facility at Nizhnekamsk. The contract work scope includes the technology licenses and basic engineering for the new plants. The units are planned to produce 250,000 tpa of ethylbenzene using EBOne technology, 250,000 tpa of styrene via the Classic SM process, and 150,000 tpa of polymer-grade propylene via olefins metathesis chemistry using ethylene dimerization (DIMER) and olefins conversion technologies (OCT).
Nizhnekamskneftekhim-six new furnaces and naphtha
The installation of six furnaces has begun at the EP-600 plant under construction of Nizhnekamskneftekhim. The furnaces consist of two radiant sections and one common conversion part. Five of the high-performance furnaces will be operational with one kept in reserve. The five furnaces will process up to a total of 226 tons of naphtha per hour. The installation of pyrolysis furnaces at Nizhnekamsk is expected to take several months. In addition to the 600,000 tpa of ethylene the new cracker will be able to produce 272,800 tpa of propylene.
SIBUR financial and production overview Q1 2021
SIBUR’s financial performance
(billion roubles)
|
|
Q1 21
|
Q1 20
|
Total Revenues
|
173,384
|
120,671
|
EBITDA margin
|
42.0%
|
31.0%
|
EBITDA by segment
|
Olefins and Polyolefins
|
36,523
|
10,970
|
Plastics, Elastomers and Intermediates
|
11,673
|
2,136
|
Midstream
|
28,664
|
23,491
|
Profit for the year
|
42,813
|
(52,281)
|
SIBUR revenues Q1 2021
SIBUR’s revenue increased in the first quarter by 12.8% to 173.4 billion roubles, up from 153.7 billion roubles in the fourth quarter and 120.7 billion roubles in the first quarter last year. Revenue in the olefins and polyolefins segment increased by 27.7% to 74.1 billion roubles due mostly to the rise in production at ZapSibNeftekhim, resulting in a sectoral EBITDA of 36.523 billion roubles against 10.970 billion roubles in 2020.
SIBUR Feedstock Costs (billion roubles)
|
Product
|
Q1 21
|
% of costs
|
Q1 20
|
% of costs
|
NGLs
|
30,000
|
66.4%
|
15,707
|
50.2%
|
APG
|
7,049
|
15.6%
|
7,991
|
25.5%
|
Paraxylene
|
2,076
|
4.6%
|
945
|
3.0%
|
Benzene
|
1,326
|
2.9%
|
1,108
|
3.
|
Total feedstock costs
|
45,158
|
100.0%
|
31,309
|
100.0%
|
SIBUR’s operating costs increased slightly by quarter-on-quarter to 115.6 billion roubles from 113.9 billion roubles in the period October-December 2020. Higher costs were driven mainly by an increase in feedstock expenses amid higher purchasing volumes of raw NGL and naphtha and higher prices. Paraxylene costs more than doubled due to higher purchases.
SIBUR’s operating results Q1 2021
SIBUR’s Olefins-Polyolefin Production (unit-kilo tons)
|
Product
|
Q1 21
|
Q4 20
|
Q1 20
|
Polyethylene
|
437.3
|
414.6
|
328.3
|
BOPP
|
34.8
|
39.3
|
36.3
|
Ethylene
|
537.6
|
531.7
|
443.9
|
Propylene
|
359.1
|
355.6
|
280.5
|
SIBUR’s Revenues in Olefins-Polyolefins (billion roubles)
|
Product
|
Q1 21
|
Q4 20
|
Q1 20
|
Polyethylene
|
35.996
|
27.293
|
7.582
|
BOPP
|
5.271
|
4.930
|
4.230
|
Ethylene
|
2.192
|
1.772
|
1.689
|
Other Polymers
|
652
|
712
|
911
|
EBITDA
|
36.523
|
28.253
|
10.970
|
EBITDA Margin
|
42.7%
|
41%
|
27.1%
|
SIBUR increased sales of most of its petrochemical products in the first quarter compared with Q4 2020. Polypropylene sales in the first quarter increased by 10.3% to 321,000 tons, and polyethylene sales increased by 11% to 434,000 tons. Sales of plastics and organic synthesis products decreased from 209,000 tpa in Q4 2020 to 203,000 tons. Sales of elastomers remained unchanged from the previous quarter at 109,000 tons.
In Q1 2021, EBITDA in the olefins and polyolefins segment amounted to 36.5 billion roubles, up 29.3% quarter on-quarter and up 232.9% year-on-year. This growth was mainly due to an increase in polypropylene and polyethylene production at ZapSibNeftekhim.
The production of olefins and polyolefins increased by 2.5% as ZapSibNeftekhim reached its design capacity utilisation rate. External sales of olefins and polyolefins rose 9.1% to 844,500 tons quarter-on-quarter due to increased production volumes and sales of existing stockpiles from ZapSibNeftekhim. Domestic sales increased by 51.4% and amounted to 380,500 tons. In Q1 2021, SIBUR’s polyethylene and polypropylene segment’s EBITDA amounted to 11.7 billion roubles, 41% higher than in Q4 2020 and more than five times higher than a year earlier. The midstream segment’s EBITDA increased by 29.1% quarter-on-quarter to 28.7 billion roubles, primarily due to positive price dynamics for LPG and naphtha amid rising oil prices. As a result, the segment’s EBITDA margin was 39.5%, up 4.3% quarter-on-quarter.
SIBUR’s Feedstock Production (unit-mil tons)
|
Product
|
Q1 21
|
Q4 20
|
Q1 20
|
LPG
|
1.588
|
1.639
|
1.652
|
Natural Gas
|
4.189
|
4.443
|
4.988
|
Naphtha
|
0.342
|
0.367
|
0.378
|
Crude NGL
|
1.173
|
1.238
|
1.335
|
For petrochemical production SIBUR increased PTA in the first quarter this year to 80,200 tons against 47,300 tons in January to March 2020, whilst butadiene production increased from 55,300 tons to 74,400 tons.
SIBUR’s Feedstock Sales (unit-mil tons)
|
Product
|
Q1 21
|
Q4 20
|
Q1 20
|
LPG
|
0.669
|
0.759
|
1026.4
|
Natural Gas
|
3.964
|
4.252
|
4.738
|
Naphtha
|
0.224
|
0.183
|
0.298
|
Regarding feedstocks SIBUR’s production of LPGs at the plants in West Siberia totalled 1.588 million tons in the first quarter against 1.652 million tons in the same period in 2020.
Russian Ethylene Production (unit-kilo tons)
|
Producer
|
Jan-Mar 21
|
Jan-Mar 20
|
Angarsk Polymer Plant
|
58.0
|
59.5
|
Kazanorgsintez
|
146.5
|
167.0
|
Stavrolen
|
87.4
|
87.3
|
Nizhnekamskneftekhim
|
161.2
|
164.1
|
Novokuibyshevsk Petrochemical
|
14.4
|
17.2
|
Gazprom N Salavat
|
93.6
|
97.8
|
SIBUR-Kstovo
|
99.9
|
112.0
|
SIBUR-Khimprom
|
22.7
|
14.6
|
Tomskneftekhim
|
73.7
|
70.2
|
Ufaorgsintez
|
20.8
|
33.2
|
ZapSibNeftekhim
|
364.0
|
261.6
|
Total
|
1142.2
|
1084.5
|
LPG merchant sales by SIBUR dropped from 1.026 million tons in the first quarter last year to 669,100 tons in the first quarter in 2021. The reduction was due to the higher internal usage at Tobolsk. ZapSibNeftekhim achieved its full design capacity at the end of 2020 whilst the average utilisation rate over the 12-month period was 82%. SIBUR’s polyethylene sales increased fivefold to 1.3 million tons; polypropylene sales increased by 51.7% to 1.1 million tons.
Russian ethylene production, Jan-Mar 2021
Russian ethylene production totalled 1.142 million tons in the first quarter in 2021 against 1.086 million tons in the same period in 2020. SIBUR’s group production increased from 443,000 tons to 537,000 tons. ZapSibNeftekhim produced 364,000 tons in January to March up from 261,600 tons from January to March 2020. In the first three months in 2021 Nizhnekamskneftekhim produced 161,200 tons against 164,100 tons in the first quarter in 2020 whilst Kazanorgsintez dropped from 167,000 tons to 146,500 tons.
Russian Propylene Production (unit-kilo tons)
|
Producer
|
Jan-Mar 21
|
Jan-Mar 20
|
Angarsk Polymer Plant
|
32.8
|
32.7
|
Kazanorgsintez
|
12.1
|
12.9
|
Lukoil-NNOS
|
49.8
|
69.3
|
Stavrolen
|
34.9
|
32.6
|
Nizhnekamskneftekhim
|
81.0
|
80.7
|
Novokuibyshevsk Petrochemical
|
10.2
|
11.4
|
Omsk Kaucuk
|
3.1
|
13.8
|
Polyom
|
48.6
|
47.3
|
Gazprom n Salavat
|
41.3
|
42.3
|
SIBUR Kstovo
|
45.3
|
48.7
|
SIBUR-Khimprom
|
15.2
|
16.4
|
Tomskneftekhim
|
39.4
|
40.3
|
Ufaorgsintez
|
45.3
|
50.3
|
ZapSibNeftekhim
|
325.7
|
196.2
|
Total
|
784.8
|
694.7
|
Other important ethylene producers in the first quarter included SIBUR-Kstovo which produced 99,900 tons versus 112,000 tons and Gazprom neftekhim Salavat which produced 93,600 tons against 97,800 tons. In terms of feedstocks, ZapSibNeftekhim relies on LPGs delivered from the gas processing plants in West Siberia, whilst Kazanorgsintez relies heavily on ethane feedstock supplies from the Orenburg and Minnibayevo gas plants but also needs to purchase other hydrocarbons.
Propane supplies are purchased by Kazanorgsintez mostly from Uralorgsintez and SIBUR-Novatek at Tobolsk, usually in volumes of 8-10,000 tons per month.
From 11 September to 1 October 2021, Nizhnekamskneftekhim's ethylene plant will undergo repair work. The production of ethylene, propylene, benzene and some derivatives of these products will be reduced if not stopped during the repair period.
Russian propylene production, sales and exports, Jan-Mar 2021
Russian Propylene Domestic Sales (unit-kilo tons)
|
Company
|
Jan-Mar 21
|
Jan-Mar 20
|
Angarsk Polymer Plant
|
12.8
|
21.1
|
SIBUR-Kstovo
|
36.6
|
39.8
|
Lukoil-NNOS
|
41.7
|
42.7
|
Others
|
3.0
|
2.4
|
Total
|
93.5
|
105.0
|
Russian propylene production amounted to 784,800 tons in the first three months in 2021 against 694,700 tons in the same period in 2020. The increase was due largely to the cumulative effect of the start-up of the plant at ZapSibNeftekhim at Tobolsk. The combined ZapSibNeftekhim and SIBUR Tobolsk plants increased production from 196,200 tons in the first three months in 2020 to 325,700 tons in the same period in 2021. Overall SIBUR Group production of propylene rose from 280,600 tons to 359,100 tons.
In Tatarstan Nizhnekamskneftekhim produced 81,000 tons of propylene in the first quarter against 80,700 tons last year whilst Kazanorgsintez reduced production from 12,900 tons to 12,100 tons.
Main Russian Propylene Domestic Purchases (unit-kilo tons)
|
Consumer
|
Jan-Mar 21
|
Jan-Mar 20
|
Saratovorgsintez
|
46.1
|
49.4
|
Volzhskiy Orgsintez
|
3.1
|
2.9
|
Akrilat
|
0.0
|
0.4
|
SIBUR-Khimprom
|
12.0
|
13.6
|
Omsk-Kaucuk
|
0.7
|
8.8
|
Tomskneftekhim
|
0.6
|
2.1
|
SIBUR Tobolsk
|
18.6
|
41.0
|
Moscow Refinery
|
1.2
|
2.0
|
Novokuibyshevsk Petrochemical
|
1.7
|
0.0
|
Khimprom Kemerovo
|
1.2
|
0.7
|
Plant of Synthetic Alcohol
|
5.7
|
2.4
|
Ufaorgsintez
|
3.5
|
1.5
|
Total
|
94.5
|
126.6
|
In Bashkortostan Gazprom neftekhim Salavat produced 41,300 tons of propylene against 42,300 tons whilst Ufaorgsintez reduced production from 50,300 tons to 45,300 tons. In the Nizhny Novgorod region SIBUR-Kstovo reduced production of propylene from 48,700 tons to 45,300 tons in January to March 2021, whilst due to maintenance Lukoil-NNOS reduced production from 69,300 tons to 49,800 tons.
Russian sales of propylene on the domestic merchant market amounted to 94,500 tons in the first three months in 2021 against 126,600 tons in the same period last year. Production at ZapSibNeftekhim was consumed internally in the production of polypropylene. The largest propylene supplier to the domestic market in the first quarter was Lukoil-NNOS, shipping 41,700 tons against 42,700 tons followed by SIBUR-Kstovo which reduced from 39,800 tons to 36,600 tons.
Russian Propylene Exports (unit-kilo tons)
|
Producer
|
Jan-Mar 21
|
Jan-Mar 21
|
Lukoil-NNOS
|
7.6
|
12.8
|
SIBUR-Kstovo
|
2.8
|
3.4
|
Angarsk Polymer Plant
|
10.3
|
0.0
|
Stavrolen
|
0.0
|
0.1
|
Total
|
20.7
|
16.2
|
Russian Styrene Production (unit-kilo tons)
|
Producer
|
Jan-Mar 21
|
Jan-Mar 20
|
Nizhnekamskneftekhim
|
80.9
|
80.0
|
Angarsk Polymer Plant
|
11.2
|
10.6
|
SIBUR-Khimprom
|
36.0
|
35.2
|
Gazprom n Salavat
|
52.9
|
38.0
|
Plastik, Uzlovaya
|
21.5
|
13.5
|
Total
|
202.5
|
177.3
|
SIBUR-Tobolsk reduced merchant propylene purchases from 41,000 tons in January to March 2020 to 18,600 tons in the same period this year. Saratovorgsintez reduced purchases of merchant propylene from 49,400 tons to 46,100 tons due to lower availability from Lukoil-NNOS. The Plant of Synthetic Alcohol at Orsk supplements propylene purchases for the production of isopropyl alcohol through the purchase of propane-propylene fractions.
Propylene exports from Russia amounted to 20,700 tons in the first quarter against 16,200 tons in the first three months in 2020. Whilst Lukoil-NNOS reduced export shipments from 12,800 tons to 7,600 tons the Angarsk Polymer Plant shipped 10,300 tons against zero last year. Revenues from propylene exports jumped from $9.3 million in the first quarter to $18.3 million in January to March 2021, most of which came from sales to China from the Angarsk Polymer Plant.
Russian polyethylene production and trade, Jan-Mar 2021
Russian HDPE Production (unit-kilo tons)
|
Producer
|
Jan-Mar 21
|
Jan-Mar 20
|
Kazanorgsintez
|
107.3
|
141.0
|
Stavrolen
|
80.8
|
70.0
|
Gazprom neftekhim Salavat
|
27.6
|
33.0
|
ZapSibNeftekhim
|
290.0
|
167.1
|
Total
|
505.7
|
411.1
|
In the first three months of 2021 Russian HDPE production totalled 505,800 tons, 15% more than in 2020 when it totalled 439,400 tons. ZapSibNeftehim increased HDPE production by 48% to 290,000 tons, whilst Kazanorgsintez reduced production by 18% to 107,300 tons. Stavrolen increased production to 80,800 tons whilst Gazprom neftekhim Salavat dropped by 9% to 27,300 tons.
Russian HDPE Exports
|
Quarter
|
Ktons
|
$ million
|
Q1 20
|
54.0
|
49.7
|
Q2 20
|
143.3
|
101.9
|
Q3 20
|
285.4
|
21.1
|
Q4 20
|
199.1
|
154.5
|
Q1 21
|
222.6
|
191.9
|
HDPE exports from Russia totalled 222,600 tons in the first quarter in 2021 for $191.9 million compared to 54,000 tons in the first quarter in 2020 for $49.7 million.
Polyethylene production of all grades totalled 823,700 tons in the first quarter, which is 12% more than in the same period in 2020 when it totalled 734,700 tons. Production in March amounted to 283,900 tons against 252,600 tons in February. In January-March Russian production of LLDPE increased to 139,700 tons against 122,100 tons whilst LDPE production rose 3% to 178,200 tons.
Russian polypropylene production, Jan-Mar 2021
Russian Polypropylene Production (unit-kilo tons)
|
Producer
|
Jan-Mar 21
|
Jan-Mar 20
|
Ufaorgsintez
|
32.8
|
31.1
|
Stavrolen
|
31.9
|
29.4
|
Neftekhimya
|
37.4
|
34.9
|
Nizhnekamskneftekhim
|
54.2
|
53.1
|
Polyom
|
51.9
|
48.6
|
Tomskneftekhim
|
38.6
|
38.6
|
SIBUR-Tobolsk
|
0.0
|
113.1
|
ZapSibNeftekhim
|
285.9
|
116.4
|
Total
|
532.7
|
465.2
|
Russian production of polypropylene increased to 532,700 tons in the first quarter against 465,200 tons in the same period in 2020.
ZapSibNeftekhim, together with the merged SIBUR-Tobolsk plant, produced a total of 285,900 tons in the first three months which was 27% up overall. Polyom at Omsk increased production by 1% to 51,900 tons whilst Nizhnekamskneftekhim reduced production from 55,200 tons to 54.200 tons. Tomskneftekhim produced 38,600 tons in January-March 2020, up 2%. Ufaorgsintez reduced production by 3% to 32,800, whilst Neftekhimya increased by 1% to 37,400 tons. Stavrolen at Budyennovsk increased by 6% to 31,900 tons. Russian homo grade polypropylene exports totalled 166,088 tons in the first quarter this year yielding $184.428 million and propylene copolymers 8,654 tons for $12.653 million.
SIBUR polyolefins Jan-Mar 2021
SIBUR’s Tobolsk Polyolefin Hub Q1 2021
(unit-kilo tons)
|
Production
|
652
|
Domestic sales
|
247
|
CIS
|
32
|
China
|
159
|
Europe
|
79
|
Turkey
|
65
|
Other
|
49
|
SIBUR’s revenue in the olefins and polyolefins sector rose by 139.4% in the first quarter in 2021. The result was largely due to higher polyethylene and polypropylene sales facilitated by a higher utilisation rate at ZapSibNeftekhim.
The olefin and polyolefin segment’s EBITDA margin for SIBUR rose to 42.7% versus 27.1% for the same period in 2020. SIBUR’s revenues from sales of polyethylene increased in the first quarter to 35.996 billion roubles against 7.562 billion roubles in Q1 2020 whilst polypropylene revenues rose from 16.324 billion roubles to 29.761 billion roubles. SIBUR’s polyethylene sales increased so significantly due to the higher HDPE and LLDPE production at ZapSibNeftekhim, mainly in a rise in export activity.
Production of polyethylene by SIBUR increased from 328,300 tons in the first three months in 2020 to
SIBUR Polyolefins (unit-kilo tons)
|
Production
|
Jan-Mar 21
|
Jan-Mar 20
|
Polyethylene
|
437.3
|
328.3
|
Polypropylene
|
326.1
|
269.2
|
Purchases from third parties
|
37.3
|
37.6
|
Total
|
800.7
|
635.0
|
|
|
|
Total Sales
|
Jan-Mar 21
|
Jan-Mar 20
|
Polyethylene
|
434.3
|
132.5
|
Polypropylene
|
321.2
|
242.6
|
Total
|
755.5
|
375.0
|
|
|
|
Domestic Sales
|
Jan-Mar 21
|
Jan-Mar 20
|
Polyethylene
|
159.8
|
43.2
|
Polypropylene
|
149.8
|
116.2
|
Total
|
309.6
|
159.4
|
|
|
|
Export Sales
|
Jan-Mar 21
|
Jan-Mar 20
|
Polyethylene
|
274.5
|
89.3
|
Polypropylene
|
171.4
|
126.4
|
Total
|
445.9
|
215.7
|
437,300 tons in the same quarter this year whilst polypropylene rose from 269,200 tons to 326,100 tons. Polypropylene production rose for SIBUR from 813,200 tons in 2019 to 1.107 million tons in 2020.
The share of export sales increased to 65.2% of total polyethylene revenue from 33.7% in 2020, while 34.8% and 66.3%, respectively, were derived from domestic sales.
The Tobolsk division for SIBUR accounted for 652,000 tons of production of polyolefins in the first quarter, from the total of 800,000 tons. SIBUR sold 247,000 tons of polyolefins on the domestic market in January to March 2021, whilst another 159,000 tons was sold to the Chinese market.
Russian PVC production and trade, Jan-Mar 2021
Russian PVC Production (unit-kilo tons)
|
Producer
|
Jan-Mar 21
|
Jan-Mar 20
|
Bashkir Soda
|
69.7
|
69.7
|
Kaustik
|
21.7
|
22.0
|
RusVinyl
|
92.4
|
92.2
|
Sayanskkhimplast
|
80.5
|
83.2
|
Total
|
264.3
|
267.1
|
The production of PVC in the first quarter decreased by 3% in annual terms and amounted to 259,400 tons. RusVinyl produced 88,200 tons of PVC in the first quarter, Sayanskhimplast produced 80,500 tons, Bashkir soda company (BSK) produced 69,700 tons and Kaustik (Volgograd) 21,100 tons.
PVC imports rose to 7,500 tons in the first quarter in 2021 against 3,200 tons in the same period in 2020 whilst exports rose from 48,700 tons to 55,400 tons.
Paraxylene-PTA-PET
Russian Paraxylene Exports (unit-kilo tons)
|
Producer
|
Jan-Mar 21
|
Jan-Mar 21
|
Gazprom Neft
|
16.0
|
15.4
|
Kirishinefteorgsintez
|
13.9
|
4.0
|
Ufaneftekhim
|
0.0
|
4.0
|
Total
|
29.9
|
23.3
|
Russian paraxylene trade Jan-Mar 2021
Export shipments of Russian paraxylene in the first quarter totalled 29,900 tons in the first quarter in 2021 against 23,300 same period in 2020. Exports rose despite the increase in PTA production at Polief and increased paraxylene purchases made by SIBUR. However, traders believe that if the current volume of purchases by Polief is maintained, paraxylene exports from Russia in 2021 will be lower than in 2020. Paraxylene exports to Finland from Russia increased from 18,400 tons in the first quarter last year to 28,600 tons in the same period in 2021.
SIBUR's PTA and PET Production (unit-kilo tons)
|
Product
|
Jan-Mar 21
|
Jan-Mar 20
|
Paraxylene Purchases
|
52.7
|
28.6
|
PTA Production
|
80.2
|
47.3
|
PTA Domestic Sales
|
0.7
|
0.2
|
PTA Exports
|
5.4
|
0.0
|
PET Production
|
71.3
|
59.1
|
PET Domestic Sales
|
69.8
|
59.0
|
PET Exports
|
0.7
|
0.4
|
Regarding the domestic market SIBUR purchased 52,700 tons of paraxylene in the first quarter in 2021 against 28,600 tons in the same period in 2020.
Costs of paraxylene purchases rose from 945 million roubles in January to March 2020 to 2.076 billion roubles this year, thus raising the share of paraxylene in total feedstock costs from 3% to 4.6%. SIBUR’s main feedstock purchase is NGLs which accounted got 66.4% of costs in the first quarter against 50.2% in the same period in 2020.
Russian PTA production, Jan-Mar 2021
SIBUR’s PTA production at Blagoveshchensk increased in the first quarter in 2021 to 80,200 tons versus 47,300 tons in the same period in 2020. In addition to producing PTA for the domestic market, where PET production increased from 59,100 tons to 71,300 tons SIBUR exported 5,400 tons of PTA. Most of the PTA produced by Polief was consumed internally whilst most of the exports were sent to Belarus. PTA capacity at Polief was increased in 2019 by 78,000 tpa to a total of 350,000 tpa.
Russian PTA imports, Jan-Mar 2021
Russian PTA Imports by Country
(unit-kilo tons)
|
Country
|
Jan-Mar 21
|
Jan-Mar 21
|
Belgium
|
0.0
|
5.0
|
China
|
65.2
|
62.0
|
South Korea
|
0.0
|
5.0
|
Others
|
0.0
|
1.9
|
Total
|
65.2
|
73.9
|
PTA imports into Russia totalled 65,200 tons in the first three months in 2021 against 73,900 tons in the same period in 2019. China has been the sole source of PTA imports so far in 2021, increasing shipments from 62,000 tons in the first three months last year for $50 million to 65,200 tons for $34.2 million.
Average prices for PTA imports into Russia amounted to $594 per ton in January to March 2020 against $676 per ton in the same period in 2020. Prices rose sharply in March this year to $660 per ton.
Ekopet at Kaliningrad accounted for 64.6% of imports over the first three months in 2021, paying $92.7 million in value against $174.2 million in the same period last year.
Ekopet-raw material shortages
Russian PTA Imports by region (unit=kilo tons)
|
Region
|
Jan-Mar 21
|
Jan-Mar 20
|
Kaliningrad
|
45.0
|
34.5
|
Moscow
|
20.2
|
32.9
|
Tyumen
|
0.0
|
2.5
|
Others
|
0.0
|
4.0
|
Total
|
65.2
|
73.9
|
Ekopet produced PET at close to full capacity of 220,000 tpa between March and May despite the problems encountered with the supply of raw materials in recent months. A new container system has been introduced this enabling shipment loads of up to 2,650 tons of PTA. In principle this route was claimed to be deliverable in shorter time than by sea which typically takes around 58 days. However, the rail system of deliveries has been held up by technical and bureaucratic procedures in China.
The rail journey starts from Dalian in China before moving to Zabaykalsk on the Sino-Russian border and then transiting through Russia and Latvia before arriving at the Kaliningrad. The effects of COVID mean that all wagons have to be checked before they can travel. At the same time sea deliveries have been held up by the global lack of containers, particularly following the blockage in the Suez Canal.
Regarding MEG Ekopet imports nearly all of its requirements from SABIC in Saudi Arabia. MEG is produced at Nizhnekamskneftekhim, but it is economically more profitable for us to buy cheaper MEG abroad. Ekopet accounted for almost all of the 17,200 tons of MEG imported into Russia in the first quarter this year.
Other challenges to Ekopet include competition with Chinese PET producers and the uncertain price situation in the domestic market. This year Ekopet has launched a new brand EKOPET 64 Film Grade for the production of BOPET-film. The Ekopet group includes three legal entities: an industrial complex, a trading house, and an industrial park BaltTechProm (Baltic Industrial Park). The plant of Ekopet was commissioned in 2011 (initial design capacity of 220,000 tpa of PET) and manufactures products under the Ekopet trademark, intended for the production of bottles, as well as other types of packaging for food and non-food purposes.
Russian PET trade, Jan-Mar 2021
Russian PET Imports (unit-kilo tons)
|
Country
|
Q1 21
|
Q1 20
|
China
|
28.0
|
28.3
|
Lithuania
|
2.8
|
4.8
|
Others
|
5.3
|
3.9
|
Total
|
36.1
|
37.0
|
PET imports into Russia amounted to 36,100 tons in the first quarter in 2021, compared to 37,000 tons last year with China the dominant supplier. Exports of PET from Russia amounted to 6,200 tons in the first three months, up from 791 tons. Ekopet accounted for 91% of exports this year.
Imports of PET to Russia in 2020 amounted to 149,900 tons against 160,000 tons in 2019. Around 84.0% of all imports were accounted for by Chinese brands of PET, which totalled 129,000 tons in 2020. Lithuania's share of total imports approached 6.2% in 2020 at 8,002 tons which is 9.1% more than in 2019.
Russian PET Imports from China 2020
|
Company
|
Kilo tons
|
% of imports
|
Yisheng Dahua
|
43.2
|
38.3
|
Sinopec Yizheng Chemical Fibre
|
13.3
|
11.8
|
Guangdong IVL PET
|
10.0
|
8.8
|
The main suppliers of PET to the Russian market in 2020 included Yisheng Dahua, Sinopec Yizheng Chemical Fibre and Guangdong IVL PET Polymer. Yisheng Dahua Petrochemical supplied 43,200 tons to Russia in 2020, Sinopec Yizheng Chemical Fibre reduced its shipments by 36.9% to 13,300 tons. Guangdong IVL PET Polymer's supply fell by 28.2% compared to 2019 and amounted to 10,000 tons.
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 plant in Bashkortostan starts construction
Construction of a workshop for the production of green PET pellets started at the end of April by Polief in Bashkortostan. The launch of the line is scheduled for completion and start-up in the first half of 2022. The design target envisages pellets containing up to 25% of recycled materials for packaging manufacturers.
The long-term objective is to increase the proportion of secondary PET content without losing quality. In the first year of operation around 34,000 tons of recycled materials are expected to be processed in the production cycle. By mid-2022 SIBUR hopes that it will be possible to use recycled polymer packaging from PET in the company's processes. This method implies the "splitting" of polymers and allows the use of polymer raw materials repeatedly.
Currently, the collection of used PET bottles in the Republic of Bashkortostan is rated at only around 4,000 tpa. Forecasts have been made that the region has the potential to rise to 20,000 tpa if the appropriate measures for collection and sorting are introduced. Polief possesses capacities for PTA at 350,000 tpa and PET at 219,000 tpa.
Russian benzene production Jan-Oct 2020
Russian Benzene Production (unit-kilo tons)
|
Producer
|
Jan-Mar 21
|
Jan-Mar 20
|
Angarsk Polymer Plant
|
24.3
|
24.2
|
Gazprom Neft
|
26.0
|
33.9
|
LUKoil-Neftekhim
|
0.0
|
19.0
|
LUKoil-Permnefteorgsintez
|
14.1
|
15.2
|
Magnitogorsk MK
|
10.5
|
12.2
|
Nizhnekamskneftekhim
|
76.0
|
76.8
|
Novolipetsk MK
|
0.7
|
0.6
|
Gazprom n Salavat
|
51.4
|
57.1
|
Severstal
|
7.4
|
9.1
|
SIBUR-Holding
|
21.4
|
27.0
|
Slavneft-Yaroslavlorgsintez
|
18.1
|
17.6
|
Kirishinefteorgsintez
|
11.3
|
13.4
|
Ryazan RN Holding
|
9.4
|
10.9
|
Ufaneftekhim
|
25.0
|
23.9
|
Ural Steel
|
2.5
|
3.2
|
Uralorgsintez
|
25.0
|
23.2
|
Zapsib
|
18.2
|
18.6
|
Novokuibyshevsk Petrochemical
|
5.5
|
5.0
|
Total
|
346.8
|
391.1
|
Russian benzene production declined slightly in the first three months in 2021 to 346,800 tons from 391,100 tons in Q1 2020. Nizhnekamskneftekhim reduced benzene production from 76,800 tons to 76,000 tons, whilst Gazprom neftekhim Salavat reduced production from 57,100 tons to 51,400 tons. Rosneft’s benzene plants at Angarsk, Novokuibyshevsk, Ufa and Ryazan produced a combined total of 64,100 tons which was the same as in January to March 2020, whilst Gazprom Neft at Omsk reduced benzene production from 33,900 tons to 26,000 tons.
Russian Benzene Sales (unit-kilo tons)
|
Company
|
Jan-Mar 21
|
Jan-Mar 20
|
Angarsk Polymer Plant
|
14.8
|
15.5
|
SIBUR-Kstovo
|
18.7
|
24.7
|
Severstal
|
8.1
|
9.0
|
Uralorgsintez
|
22.9
|
21.0
|
Kirishinefteorgsintez
|
2.7
|
1.8
|
West Siberian MC
|
16.2
|
18.7
|
Ryazan NPZ
|
8.2
|
9.9
|
Slavneft-Yanos
|
17.6
|
17.6
|
Gazprom Neft (Omsk)
|
22.1
|
21.6
|
Gazprom n Salavat
|
7.9
|
11.2
|
Stavrolen
|
0.0
|
18.1
|
Nizhnekamskneftekhim
|
6.1
|
6.9
|
Ufaneftekhim
|
0.2
|
0.9
|
Karpatneftekhim
|
0.0
|
1.5
|
Atyrau
|
7.6
|
0.0
|
Chelyabinsk MK
|
3.4
|
1.3
|
Altay-Koks
|
2.4
|
9.7
|
Koks
|
7.0
|
7.3
|
Magnitogorsk MK
|
10.9
|
13.0
|
Nizhny Tagil MK
|
2.8
|
5.0
|
Ural Steel
|
0.5
|
0.0
|
Full Total
|
182.7
|
222.6
|
Regarding domestic merchant sales, Russian producers and importers shipped 182,700 tons in the first three months this year against 222,600 tons in the same period in 2020. Since the second half of 2020 benzene stocks have come under greater pressure from maintenance outages which were carried out at several plants.
SIBUR-Kstovo reduced shipments to the merchant market from 24,700 tons in January to March 2020 to 18,700 tons in the same period in 2021, whilst Gazprom Neft at Omsk increased shipments slightly from 21,600 tons to 22,100 tons. Imports of benzene amounted to 10,100 tons in the first versus 9,500 tons in the same period in 2020. In Tatarstan TAIF buys benzene from Naftan in Belarus for delivery to Kazanorgsintez, where benzene is used to produce Bisphenol A. Overall, Shchekinoazot has been the major importer of benzene from Belarus this year due to geographical proximity.
Benzene exports from Russia declined from 28,500 tons in the first quarter in 2020 to 13,700 tons in the same period in 2021. The only oil-based benzene producer to export was Kirishinefteorgsintez which shipped 6,900 tons in the first quarter down from 7,900 tons.
Kuibyshevazot reduced benzene purchases from 49,300 tons to 39,300 tons in the first three months whilst Azot at Kemerovo increased purchases to 37,000 tons from 34,200 tons. For the production of cumene Kazanorgsintez purchased a total of 19,700 tons of benzene in January to March 2021, versus 20,000 tons in the same period in 2020, whilst Omsk Kaucuk reduced purchases from 14,400 tons to 700 tons.
Nizhnekamskneftekhim will double the production of benzene following the construction of the new EP-600 cracker. The extra benzene be sold mostly to Kazanorgsintez for cumene and Bisphenol A production whilst any remaining quantities will be exported. Capacity of benzene at Nizhnekamskneftekhim will comprise 245,600 tons raising total capacity to 510,000 tpa.
Russian caprolactam production, Jan-Mar 2021
Russian Caprolactam Production (unit-kilo tons)
|
Producer
|
Jan-Mar 21
|
Jan-Mar 20
|
Kuibyshevazot
|
47.1
|
52.0
|
Shchekinoazot
|
13.3
|
14.7
|
SDS Azot
|
33.9
|
32.6
|
Total
|
94.3
|
99.3
|
Russian caprolactam production amounted to 94,300 tons in January to March 2021 against 99,300 tons in the same period in 2020. Kuibyshevazot reduced production from 52,000 tons to 47,100 tons whilst SDS Azot at Kemerovo increased production to 33,900 tons from 32,600 tons.
Russian orthoxylene market, Jan-Mar 2021
Russian Orthoxylene Domestic Sales (unit-kilo tons)
|
Producer
|
Jan-Mar 21
|
Jan-Mar 20
|
Gazprom Neft
|
25.6
|
28.1
|
Ufaneftekhim
|
10.4
|
22.1
|
Kirishinefteorgsintez
|
10.3
|
0.1
|
Total
|
46.2
|
50.2
|
Russian Phthalic Anhydride Production (unit-kilo tons)
|
Producer
|
Jan-Mar 21
|
Jan-Mar 20
|
Gazprom neftekhim Salavat
|
3.5
|
2.5
|
Kamteks
|
24.3
|
23.4
|
Roshalsky Plasticizer Plant
|
2.5
|
0.0
|
Total
|
30.3
|
25.9
|
Orthoxylene domestic sales in Russia amounted to 46,200 tons in the first three months in 2021 against 50,200 tons in the same period in 2020. Gazprom Neft reduced domestic shipments from 28,100 tons to 25,600 tons whilst Ufaneftekhim reduced shipments from 22,100 tons to 10,400 tons. Kirishinefteorgsintez reduced exports of orthoxylene from 0,100 tons to 10,300 tons. On the domestic market Kamteks-Khimprom reduced purchases of orthoxylene in the first three months in 2020 from 21,300 tons to 19,800 tons in the same period in 2021.
Russian toluene production, Jan-Mar 2021
Russian Toluene Production (unit-kilo tons)
|
Producer
|
Jan-Mar 21
|
Jan-Mar 20
|
Kinef
|
6.5
|
6.3
|
Gazprom n Salavat
|
10.4
|
4.5
|
Slavneft-Yanos
|
10.4
|
10.9
|
LUKoil-Perm
|
11.3
|
8.2
|
Gazprom Neft
|
15.2
|
25.4
|
RN Holding
|
10.0
|
13.7
|
Ufaneftekhim
|
5.9
|
12.0
|
Others
|
7.8
|
3.9
|
Total
|
77.5
|
85.0
|
Toluene production in Russia totalled 77,500 tons in the first quarter in 2021 against 85,000 tons in the same period last year. Domestic merchant sales rose from 35,000 tons in January to March 2020 to 41,000 tons in 2021 with the remainder of production going mostly into internal processing for fuels and only a small amount of exports.
Russian phenol market, Jan-Mar 2021
Russian Phenol Production (unit-kilo tons)
|
Producer
|
Jan-Mar 21
|
Jan-Mar 20
|
Ufaorgsintez
|
19.2
|
16.4
|
Kazanorgsintez
|
21.1
|
19.7
|
Novokuibyshevsk Petrochemical
|
19.1
|
19.3
|
Omsk Kaucuk, Omsk
|
5.2
|
13.2
|
Total
|
64.7
|
68.6
|
Russian phenol production dropped from 68,600 tons in the first three months in 2020 to 64,700 tons in the same period in 2021. Novokuibyshevsk Petrochemical produced 19,100 tons of phenol against 19,300 tons whilst Ufaorgsintez increased production from 16,400 tons to 19,200 tons. Kazanorgsintez increased slightly from 19,700 tons to 21,700 tons. Omsk Kaucuk reduced production from 13,200 tons in the first three months in 2020 to 5,200 tons due to technical problems, forcing imports of 2,410 tons of cumene in March.
Sales of phenol on the Russian domestic market amounted to 33,800 tons in the first quarter in 2021, up from 29,900 tons. Omsk Kaucuk supplied 4,400 tons to the domestic market, Ufaorgsintez supplied 15,800 tons and Novokuibyshevsk Petrochemical 13,800 tons. Exports of phenol amounted to 6,400 tons in the first quarter against 4,500 tons in January to March 2020. Omsk Kaucuk is currently in the process of restarting the full cumene chain after maintenance.
Sales of phenol on the Russian domestic market amounted to 33,800 tons in the first quarter in 2021, up from 29,900 tons. Omsk Kaucuk supplied 4,400 tons to the domestic market, Ufaorgsintez supplied 15,800 tons and Novokuibyshevsk Petrochemical 13,800 tons. Exports of phenol amounted to 6,400 tons in the first quarter against 4,500 tons in January to March 2020. Omsk Kaucuk is currently in the process of restarting the full cumene chain after maintenance. The start-up of the new plant for isopropyl alcohol at Omsk has been more difficult than envisaged, particularly in regard to selling to new customers.
Russian synthetic rubber feedstocks, Jan-Mar 2021
Russian C4 Purchases (unit-kilo tons)
|
Consumer
|
Jan-Mar 21
|
Jan-Mar 20
|
Omsk Kaucuk
|
22.8
|
25.1
|
Nizhnekamskneftekhim
|
48.5
|
28.2
|
Togliattikaucuk
|
45.5
|
62.9
|
Others
|
5.8
|
2.9
|
Total
|
122.6
|
119.1
|
C4 rail shipments to the Russian market amounted to 122,600 tons in the first quarter this year against 119,100 tons in the same period in 2020. For the first three months of 2021, 48,500 tons of C4s were shipped to Nizhnekamsk against 28,200 tons in 2020 whilst Togliattikaucuk reduced purchases from 62,900 tons to 45,500 tons.
C4 imports from Azerbaijan to the Russian market increased in the first quarter to 13,700 tons from 9,400 tons. Deliveries from Naftan in Belarus increased from 4,600 tons to 19,200 tons. The largest domestic suppliers to the market included Tomskneftekhim and SIBUR-Kstovo which both sold 22,900 tons in the first quarter this year.
Russian C4 Supplies (unit-kilo tons)
|
Supplier
|
Jan-Mar 21
|
Jan-Mar 20
|
Angarsk Polymer
|
3.3
|
5.4
|
Kazanorgsintez
|
10.5
|
12.9
|
Stavrolen
|
18.4
|
17.4
|
SIBUR-Kstovo
|
22.9
|
27.4
|
Gazprom neftekhim Salavat
|
8.9
|
10.8
|
Tomskneftekhim
|
22.9
|
21.8
|
Ufaorgsintez
|
2.7
|
9.2
|
Naftan (Belarus)
|
19.2
|
4.6
|
Azerkhimya
|
13.7
|
9.4
|
Others
|
0.2
|
0.9
|
Total
|
122.7
|
119.1
|
Russian rubber production and market balance Q1 2021
Synthetic rubber production in Russia totalled 447,000 tons in the first three months in 2021 against 404,000 tons in the same period in 2020. Both exports and imports of rubber declined last year whilst overall domestic consumption of rubber amounted to 225,100 tons versus 237,900 tons in the first three months in 2020.
Russian Synthetic and Natural Rubber Market (unit-kilo tons)
|
|
Jan-Mar 21
|
Jan-Mar 20
|
Production
|
447.0
|
404.0
|
Exports
|
273.5
|
214.9
|
Imports
|
51.6
|
48.8
|
Supply/Demand Balance
|
225.1
|
237.9
|
The Ministry of Finance of the Russian Federation proposes to introduce a reverse excise tax on synthetic rubber which could be worth 3,660 roubles ($50) per ton for from the start of 2022. The purpose of the reverse excise tax is to try and attract more investments into the industry and create additional conditions for the modernisation of plants.
Russian tyre production, Jan-Mar 2021
Russian Tyre Production (unit-kilo tons)
|
Product
|
Jan-Mar 21
|
Jan-Mar 20
|
Car Tyres
|
87.3
|
77.0
|
Lorry tyres
|
13.8
|
14.2
|
Agricultural tyres
|
3.3
|
3.2
|
Total
|
104.4
|
94.4
|
Russian manufacturers increased tyre production by 8.4% to 15.5 million units in the first quarter compared to the same period last year. Production of tyres in March increased by 13.9% to 5.9 million units. This included 4.2 million units passenger cars which was 22.6% more than in March 2020.
Production of tyres for buses, trolleybuses and trucks decreased by 6% to 624,000 units in March compared to March 2020. The production of similar products for agricultural machinery increased by 0.2% compared to March 2020, amounting to 157,000 pieces.
Russian synthetic rubber exports, Jan-Mar 2021
Russian Synthetic Rubber Exports (unit-kilo tons)
|
Product
|
Jan-Mar 21
|
Jan-Mar 20
|
E-SBR
|
11.9
|
9.7
|
Block
|
20.7
|
11.8
|
SSBR
|
1.2
|
1.4
|
SBR
|
30.4
|
19.2
|
Polybutadiene
|
67.9
|
53.3
|
Butyl rubber
|
29.6
|
25.5
|
Halogenated butyl
|
33.5
|
33.9
|
NBR
|
9.8
|
7.9
|
Isoprene
|
66.6
|
50.3
|
Others
|
1.9
|
1.2
|
Total
|
273.5
|
214.2
|
Russian exports of synthetic rubber amounted to 273,500 tons in the first quarter in 2021, up from 214,200 tons in the same period in 2020. Average prices for Russian synthetic rubber exports dropped from $1805 per ton in January to March 2020 to $1425 in the same period in 2021. Thus, despite higher volumes prices revenues from synthetic rubber exports dropped from $396 million to $388 million in January to March 2021.
Major Destinations for Russian Synthetic Exports
(unit-kilo tons)
|
Country
|
Jan-Mar 21
|
Jan-Mar 20
|
China
|
37.4
|
30.9
|
India
|
28.6
|
21.9
|
Poland
|
34.2
|
25.7
|
Turkey
|
26.4
|
13.1
|
Regarding shipment destinations China represented the largest market for Russian rubber exporters in the first three months in 2021, accounting for 37,400 tons against 30,900 tons in the same period in 2020. This was followed by Poland taking 34,200 tons against 25,700 tons and India with 28,600 tons versus 21,900 tons.
Nizhnekamskneftekhim-rubber exports, Jan-Mar 2021
Nizhnekamskneftekhim’s exports of synthetic rubbers rose in the first three months to 162,100 tons against 130,800 tons in the same period in 2020. Isoprene rubber exports amounted to 55,700 tons against 41,300 tons last year whilst exports of halogenated butyl rubber fell from 33,900 tons to 33,600 tons.
Nizhnekamskneftekhim Rubber Exports (unit-kilo tons)
|
Product
|
Jan-Mar 21
|
Jan-Mar 20
|
Isoprene Rubber
|
55.7
|
41.3
|
Butyl Rubber
|
17.7
|
18.4
|
HBR
|
33.6
|
33.9
|
Polybutadiene
|
52.6
|
37.0
|
Others
|
2.5
|
0.3
|
Total
|
162.1
|
130.8
|
Nizhnekamskneftekhim is preparing for the expansion of halogenated butyl rubber capacity. The project envisages the construction of a modern rubber discharge and drying plant by the Swiss firm Welding Engineers. It includes the use of a system to clean spent air from rubber dust.
Nizhnekamskneftekhim reduced its share in the global isoprene rubber market from 43.9% to 37.8% by the end of 2020 but remained the global leader in production. The company'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%.
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%.
SIBUR synthetic rubber production and exports Q1 2021
SIBUR-Synthetic Rubber Production (unit-kilo tons)
|
|
Jan-Mar 21
|
Jan-Mar 20
|
Commodity Rubber
|
57.8
|
49.8
|
Speciality Rubber
|
12.0
|
11.2
|
Thermoplastic elastomers
|
32.8
|
24.0
|
3rd part purchases
|
23.0
|
31.2
|
Total
|
125.5
|
116.2
|
|
|
|
SIBUR-Synthetic Rubber Domestic Sales (unit-kilo tons)
|
|
Jan-Mar 21
|
Jan-Mar 20
|
Commodity Rubber
|
23.2
|
24.8
|
Speciality Rubber
|
2.3
|
2.3
|
Thermoplastic elastomers
|
10.3
|
4.6
|
Total
|
35.9
|
31.7
|
|
|
|
SIBUR-Synthetic Rubber Export Sales (unit-kilo tons)
|
|
Jan-Mar 21
|
Jan-Mar 20
|
Commodity Rubber
|
40.7
|
43.0
|
Speciality Rubber
|
11.7
|
22.3
|
Thermoplastic elastomers
|
19.8
|
9.6
|
Total
|
72.2
|
74.9
|
SIBUR’s sales of synthetic rubber, including thermoplastic elastomers, rose from 10.022 billion roubles in the first quarter last year to 12.458 billion roubles in Q1 2021. The rubber division accounted for 7.2% of SIBUR’s total revenues in the first quarter.
Domestic sales’ values for SIBUR’s rubber division rose from 2.201 billion roubles to 2.428 billion roubles whilst exports rose from 3.638 billion roubles to 4.457 billion roubles.
Sales of thermoplastic elastomers from the Voronezh plant rose from 1.644 billion roubles in January to March 2020 to 3.590 billion roubles in 2021. From this total domestic sales rose from 505 million roubles to 1.326 billion roubles and exports rose from 1.139 billion roubles to 2.264 billion roubles. By volume sales of thermoplastic elastomers increased from 4,600 tons to 10,300 tons on the domestic market and exports rose from 9,600 tons to 19,800 tons. Production increased from 24,000 tons to 32,800 tons.
Togliattikaucuk-rubber exports, Jan-Mar 2021
Togliattikaucuk Rubber Exports (unit-kilo tons)
|
Product
|
Jan-Mar 21
|
Jan-Mar 20
|
Isoprene Rubber
|
4.7
|
1.3
|
Butyl Rubber
|
11.9
|
7.1
|
SBR
|
9.2
|
4.3
|
Others
|
0.2
|
0.5
|
Total
|
25.7
|
12.8
|
Togliattikaucuk exported a total of 25,700 tons of synthetic rubber in the first three months in 2021 against 12,800 tons in the same period in 2020. Isoprene rubber exports rose from 1,300 tons to 4,700 tons, whilst butyl rubber increased from 7,100 tons to 11,900 tons and SBR exports rose from 4,300 tons to 9,200 tons.
Russian methanol production Jan-Mar 2021
Russian Methanol Production
(unit-kilo tons)
|
Producer
|
Jan-Mar 21
|
Jan-Mar 20
|
Shchekinoazot
|
249.4
|
250.5
|
Sibmetakhim
|
253.5
|
247.0
|
Metafrax
|
314.2
|
313.0
|
Akron
|
26.0
|
27.5
|
Azot, Novomoskovsk
|
74.8
|
76.6
|
Angarsk Petrochemical
|
11.6
|
17.3
|
Azot, Nevinnomyssk
|
28.6
|
33.6
|
Tomet
|
128.0
|
234.8
|
Ammoni
|
35.9
|
29.9
|
Totals
|
1121.9
|
1230.1
|
Russia produced 1.122 million tons of methanol in the first three months in 2021 against 1.230 million tons in same period in 2020. Metafrax produced 314,200 tons of methanol against 313,000 tons in January-March 2020 whilst Sibmetakhim (Gazprom Methanol) at Tomsk increased production from 247,000 tons to 253,500 tons. Due to the operation of only one line Tomet produced 128,000 tons of methanol in the first quarter against 234,800 tons in Q1 2020. Tomet remains under control of bankruptcy management as part of the legal proceedings involving creditors.
Shchekinoazot stabilised production volumes in the first quarter at 249,400 tons against 250,500 tons in January to March 2020. Ammoni in Tatarstan increased methanol production from 29,900 tons in the first three months in 2020 to 35,900 tons for the same period in 2021.
Russian methanol exports, Jan-Mar 2021
Russian Methanol Exports by Producer
(unit-kilo tons)
|
Producer
|
Jan-Mar 21
|
Jan-Mar 20
|
Azot Nevinnomyssk
|
2.3
|
0.0
|
Azot Novomoskovsk
|
23.9
|
22.2
|
Akron
|
2.0
|
4.0
|
Metafrax
|
116.4
|
138.6
|
Sibmetakhim
|
122.3
|
129.2
|
Tomet
|
36.7
|
100.8
|
Shchekinoazot
|
179.8
|
198.7
|
Ammoni
|
0.0
|
0.0
|
Total
|
483.4
|
593.4
|
Export shipments of Russian methanol totalled 483,400 tons in the period January to March 2021 against 593,400 tons in the same period in 2020. The average ratio of exports as a share of production achieved 49% over the three-month period in 2020. Tomet reduced exports from 100,800 tons in the first quarter in 2020 to 36,700 tons this period this year, whilst declines by other producers were much smaller.
Russian Methanol Export Destinations (unit-kilo tons)
|
Country
|
Jan-Mar 21
|
Jan-Mar 20
|
Belarus
|
30.5
|
20.4
|
Finland
|
262.8
|
250.6
|
Kazakhstan
|
5.6
|
13.7
|
Latvia
|
4.6
|
2.8
|
Lithuania
|
25.0
|
18.3
|
Netherlands
|
18.3
|
44.3
|
Poland
|
75.6
|
87.9
|
Romania
|
17.3
|
20.9
|
Slovakia
|
60.3
|
44.2
|
Turkey
|
5.1
|
8.8
|
UK
|
0.0
|
14.0
|
Ukraine
|
16.0
|
10.4
|
Others
|
4.9
|
1.0
|
Total
|
527.1
|
543.5
|
The imbalance in the market created by the lower production at Tomet affected volumes available for export. Metafrax reduced exports from 138,600 tons in the first three months in 2020 to 116,400 tons in the same period in 2020 whilst Sibmetakhim reduced exports from 129,200 tons to 122,300 tons. The largest Russian exporter was Shchekinoazot shipping 179,800 tons versus 198,700 tons in January to March 2020.
The main destination for Russian methanol exports remains Finland where volumes totalled 262,800 tons in the first three months against 250,600 tons in the same period in 2020. Poland reduced shipments from Russia to 75,600 tons in January to March 2021 against 87,900 tons in the same period in 2020, whilst Slovakia increased volumes from 44,200 tons to 60,300 tons. Romania reduced imports from Russia from 20,900 tons to 17,300 tons in January to March 2021.
Russian methanol domestic sales, Jan-Mar 2021
Merchant sales of methanol on the Russian domestic market amounted to 446,800 tons in the first three months in 2021 against 412,100 tons in the same period in 2020. Despite only line one operating line at Tomet sales from the Togliatti plant still amounted to 87,700 tons in the first quarter against 122,300 tons last year. Sibmetakhim or Gazprom Methanol increased domestic shipments from 100,100 tons to 121,900 tons whilst Shchekinoazot increased domestic sales from 32,000 tons to 49,500 tons.
Russian Methanol Domestic Sales (unit-kilo tons)
|
Producer
|
Jan-Mar 21
|
Jan-Mar 20
|
Azot Nevinnomyssk
|
4.4
|
5.5
|
Azot Novomoskovsk
|
48.7
|
48.5
|
Metafrax
|
110.5
|
91.6
|
Sibmetakhim
|
121.9
|
100.1
|
Tomet
|
87.7
|
122.3
|
Shchekinoazot
|
49.5
|
32.0
|
Ammoni (Mendeleevsk)
|
24.1
|
12.0
|
Total
|
446.8
|
412.1
|
Russian Methanol Domestic Buyers (unit-kilo tons)
|
Consumer
|
Jan-Mar 21
|
Jan-Mar 20
|
Nizhnekamskneftekhim
|
90.5
|
58.2
|
Togliattikaucuk
|
29.7
|
39.7
|
Uralorgsintez
|
17.8
|
19.2
|
SIBUR-Khimprom
|
3.9
|
5.3
|
SIBUR Tobolsk
|
7.9
|
11.6
|
Ektos-Volga
|
1.6
|
16.2
|
Omsk Kaucuk
|
21.1
|
22.2
|
Novokuibyshevsk NPZ
|
10.1
|
13.0
|
Uralkhimplast
|
5.6
|
5.5
|
Slavneft-Yanos
|
3.0
|
1.9
|
Metadynea
|
26.2
|
20.7
|
Kronospan
|
31.7
|
23.4
|
Gazprom
|
50.2
|
46.1
|
Khimsintez
|
4.5
|
3.0
|
Volzhsky Orgsintez
|
2.4
|
3.0
|
Others
|
141.1
|
123.1
|
Total
|
447.4
|
412.1
|
Metafrax increased shipments to the domestic market from 91,600 tons to 110,500 tons. Metafrax supplied 31,900 tons to Nizhnekamskneftekhim to support higher isoprene production. Overall Nizhnekamskneftekhim increased purchases of merchant methanol from 58,200 tons in January to March 2020 to 90,500 tons in the same period in 2021 whilst Togliattikaucuk reduced purchases from 39,700 tons to 29,700 tons. Gazprom increased purchases of methanol for gas hydrates in Siberia from 50,200 tons in the first three months in 2021. Both Kronospan and Metadynea increased methanol purchases in the first quarter for resin production but methanol consumption for several MTBE producers dropped.
Evrokhim buys new freight cars for methanol
United Wagon Company (OVK) has been commissioned to supply 109 new tank Tikhvin cars for Evrokhim for the transportation of methanol. The shipment of the batch is planned by the end of August this year. The new wagons are to be used at the Novomoskovsk methanol plant. This follows the purchase of another 60 wagons in 2019.
Tank car model 15-6880 possesses increased carrying capacity (73 tons) make it possible to load almost 2 tons more into the wagon than into a traditional analogue. Due to the increased loading, the tariff component of the empty run of the wagon is reduced, which ultimately leads to a reduction in the cost of transporting one ton of cargo.
The Tikhvin tank car was launched by United Wagon Company in 2015 and was characterized by improved technical and economic parameters. Advantages of the new car included a longer length and extended turnaround times, which provide a decrease in the cost of the wagon's life cycle by almost three times. The use of these tanks allows exporters to decrease railway transport and maintenance expenses, benefitting the company's finances. The overhaul runs of the tank car have been increased to 1 million km (or around eight years), and the service life runs up to 32 years as opposed to 24 years for older cars. Metafrax also uses the Tikhvin wagon, initially purchasing 105 cars in 2015.
Russian butanol production Jan-Mar 2021
Russian N-Butanol Production (unit-kilo tons)
|
Producer
|
Jan-Mar 21
|
Jan-Mar 20
|
Angarsk Petrochemical company
|
8.0
|
7.5
|
Azot Nevinnomyssk
|
3.8
|
4.9
|
Gazprom neftekhim Salavat
|
18.5
|
16.6
|
SIBUR-Khimprom, Perm
|
7.0
|
8.7
|
Total
|
37.3
|
37.8
|
|
|
|
Russian Isobutanols Production (unit-kilo tons)
|
Producer
|
Jan-Mar 21
|
Jan-Mar 20
|
Angarsk Petrochemical company
|
4.1
|
3.6
|
Gazprom neftekhim Salavat
|
8.8
|
9.3
|
SIBUR-Khimprom, Perm
|
7.1
|
14.0
|
Total
|
20.0
|
26.9
|
Russian normal butanol production totalled 37,300 tons in January to March 2021, against 37,800 tons in the same period in 2020. Gazprom neftekhim Salavat was the largest Russian producer, increasing production to 18,500 tons against 16,600 tons in January to March 2020. Isobutanol production in Russia dropped from 26,900 tons to 20,000 tons in the first three months in 2020 during which Gazprom neftekhim Salavat reduced production from 9,300 tons to 8,800 tons, and SIBUR-Khimprom reduced from 14,000 tons to 7,100 tons.
Russian domestic butanol sales, Jan-Mar 2021
Russian Butanol Consumption (unit-kilo tons)
|
Consumer
|
Jan-Mar 21
|
Jan-Mar 20
|
Akrilat
|
3.2
|
4.3
|
Dimitrievsky Chemical
|
5.1
|
5.9
|
Volzhskiy Orgsintez
|
1.9
|
2.9
|
Roshalsjy Plant of Plasticizers
|
0.7
|
0.6
|
Others
|
2.7
|
3.5
|
Total
|
13.6
|
17.1
|
Merchant butanol sales on the Russian domestic market dropped in the first three months to 13,600 tons from 17,100 tons. The largest supplier of butanols to the domestic merchant market in the first three months in 2020 was Angarsk Petrochemical which shipped 6,300 tons against 4,100 tons in the same period in 2020. Most of the butanols produced at Angarsk are currently sold on the merchant market despite the geographical distances from the customers.
The largest butanol buyer on the domestic market in the first three months in 2021 was Dimitrievsky chemical which took 5,100 tons against 5,900 tons in January-March 2020 whilst Akrilat at Dzerzhinsk reduced purchases from 4,300 tons to 3,200 tons.
Russian acetone production and exports, Jan-Mar 2021
Russian Acetone Production (unit-kilo tons)
|
Producer
|
Jan-Mar 21
|
Jan-Mar 20
|
Ufaorgsintez
|
12.1
|
10.3
|
Kazanorgsintez
|
13.5
|
12.4
|
Novokuibyshevsk Petrochemical
|
11.8
|
12.0
|
Omsk Kaucuk
|
3.3
|
7.4
|
Total
|
40.6
|
42.2
|
Russian acetone production increased in the first three months in 2021 to 134,300 tons against 116,800 tons in the same period in 2020. Omsk Kaucuk produced 3,300 tons of acetone against 7,400 tons in the same period in 2020 whilst Kazanorgsintez increased production from 12,400 tons to 13,500 tons. Acetone exports from Russia totalled 14,500 tons in the first three months in 2021 against 13,360 tons in the same period in 2020.
Revenues from acetone exports rose from $5.1 million to $7.6 million with prices rising sharply in March. The domestic market is benefiting from upward pressure from European prices and all producers have increased values in the past few months. Supply on the domestic market is tighter this year due to increased captive consumption at Kazanorgsintez which has capacity for Bisphenol A production. Omsk Kaucuk is facing technical problems in production which is limiting availability for exports and domestic sales.
SIBUR’s organic chemicals Jan-Mar 2021
SIBUR's Organic Chemical Production (unit-kilo tons)
|
Product
|
Q1 21
|
Q1 20
|
DOTP
|
23.1
|
23.6
|
Oxo Alcohols
|
34.4
|
40.8
|
Acrylates
|
13.4
|
11.9
|
|
|
|
SIBUR's Organic Chemical Domestic Sales (unit-kilo tons)
|
Product
|
Q1 21
|
Q1 20
|
DOTP
|
17.5
|
17.8
|
Oxo Alcohols
|
6.0
|
12.7
|
Acrylates
|
8.1
|
8.2
|
|
|
|
SIBUR's Organic Chemical Exports (unit-kilo tons)
|
Product
|
Q1 21
|
Q1 20
|
DOTP
|
5.4
|
6.4
|
Oxo Alcohols
|
28.4
|
7.7
|
Acrylates
|
9.7
|
5.8
|
SIBUR’s sales of the plasticizer DOTP in value terms rose from 1.624 billion roubles in January to March 2020 to 2.377 billion roubles, although production of DOTP at Perm dropped slightly to 23,100 tons from 23,600 tons in the same period in 2020. Domestic sales of DOTP dropped from 17,800 tons to 17,500 tons whilst exports dropped from 6,400 tons to 5,400 tons. In other organic chemicals SIBUR’s oxo alcohol production amounted to 34,400 tons in January to March versus 40,800 tons in January to March 2020. The oxo alcohol and plasticizer division operates at SIBUR-Khimprom at Perm.
The acrylates’ division at Dzerzhinsk showed increased production from 11,900 tons to 13,400 tons in the first quarter in 2021, whilst domestic sales amounted to 8,100 tons from 8,200 tons and export sales rose from 5,800 tons to 9,700 tons. Revenues from domestic and export sales of acrylates rose from 899 million roubles in the first quarter last year to 2.967 billion roubles in January to March 2021.
SIBUR-Khimprom new plasticizer plant
SIBUR-Khimprom is working on a new plasticizer plant with a capacity of 25,000 tpa using the company’s own technology. These special plasticizers can be in demand when obtaining waterproofing membranes, flooring and other applications.
The plant will house a storage warehouse for raw materials and finished products with pumping equipment, a car-sliding and bulk overpass for the overload of raw materials and finished product, off-site overpasses of technological pipelines and thermal materials. In addition, electricity and engineering communications networks will be laid on the site, and all newly constructed buildings and facilities will be accessed by road access to the existing road network.
Russian TDI-MDI imports, Jan-Mar 2021
Russian TDI Imports (unit-kilo tons)
|
Country
|
Jan-Mar 21
|
Jan-Mar 20
|
Belgium
|
0.1
|
0.0
|
China
|
4.0
|
0.1
|
Germany
|
0.9
|
2.7
|
Hungary
|
2.4
|
2.7
|
Japan
|
0.0
|
0.5
|
Netherlands
|
0.9
|
0.1
|
Saudi Arabia
|
0.8
|
2.0
|
South Korea
|
3.5
|
0.2
|
US
|
1.8
|
2.3
|
Others
|
0.1
|
0.3
|
Total
|
14.5
|
10.9
|
Russian TDI imports totalled to 14,495 tons in the first three months in 2021 against 10,948 tons in the first same period in 2020. Values of Russian TDI imports increased from a total of $20.457 million in January to March 2020 to $35.678 million in 2021. The main regions for Russian TDI imports included Moscow and Tatarstan.
China was the largest supplier of TDI to Russia in the first quarter this year shipping 4,020 tons in the first three months for $8.060 million in 2021 which compares against only 73 tons in January to March 2020.
South Korea was the second largest supplier of TDI to Russia in the first quarter this year shipping 3,508 tons against 180 tons in January to March 2020. Other important suppliers included Hungary which shipped 2,364 tons to Russia against 2,698 tons in January to March 2020 and the US which exported 1,764 tons against 2,640 tons in the first quarter in 2020. TDI supplies from Germany and Saudi Arabia both declined this year.
MDI imports into Russia amounted to 35,750 tons in the first three months in 2021 against 30,396 tons in the same period last year, with costs rising from $38.264 million to $68.799 million. Saudi Arabia reduced shipments in the first quarter from 9,315 tons last year to 6,835 tons whilst shipments from the Netherlands rose from 6,048 tons to 8,581 tons in the same period this year.
Russian Imports of MDI
(unit-kilo tons)
|
Country
|
Jan-Mar 21
|
Jan-Mar 20
|
Belgium
|
3.9
|
1.5
|
China
|
6.2
|
7.3
|
Germany
|
5.8
|
4.3
|
Hungary
|
0.9
|
1.2
|
Japan
|
0.5
|
0.5
|
Netherlands
|
8.6
|
6.0
|
Saudi Arabia
|
6.8
|
9.3
|
South Korea
|
0.2
|
0.2
|
Others
|
2.7
|
1.3
|
Total
|
35.8
|
30.4
|
Other MDI suppliers included China which reduced shipments from 7,322 tons in January to March 2020 to 6,190 tons in the 2021 and Germany which increased from 4,259 tons to 5,838 tons. The most important region for Russian MDI imports was the Vladimir Oblast which accounted for purchases of 15,807 tons in the first quarter this year for $27.269 million.
Russian isocyanate import costs Q1 2021
TDI costs for Russian importers averaged $2477 per ton in the first quarter against $1864 in the same period in 2020. MDI costs per ton for Russian imports rose from $1417 in the first quarter in 2020 to $1915 in the same period this year. Prices climbed for both TDI and MDI over the fourth quarter in 2020 and first quarter in 2021. In the first half of 2021 ocean freight rates remain high, and costs for TDI and MDI may stay at current levels.
Ukrainian polymer trade Jan-Mar 2021
Polypropylene imports to the Ukrainian market amounted to about 30,000 tons in the first quarter, which is 3% less than in the same period in 2020 at 31,000 tons. Homopolymer imports dropped 5% to 23,300 tons whilst block copolymer imports jumped from 600 tons to 1,400 tons and random copolymers rose from 800 tons to 1,200 tons. In the first quarter, imports of suspension PVC to Ukraine dropped by 44% to 6,400 tons versus 11,500 tons in the same period in 2020. At the same time Karpatneftekhim increased PVC exports from 54,500 tons in January to March 2020 to 60,500 tons.
Karpatneftekhim-production and trade Q1 2021
Karpatneftekhim Petrochemical Exports
(unit-kilo tons)
|
Product
|
Jan-Mar 21
|
Jan-Mar 20
|
Propylene
|
27.3
|
21.4
|
Benzene
|
30.8
|
6.6
|
Karpatneftekhim increased exports of propylene in the first three months in 2020 from 21,400 tons to 27,300 tons, whilst benzene exports rose from 6,600 tons to 30,800 tons. The largest share of propylene shipments was exported to Poland. Karpatneftekhim has encountered several stoppages this year due the high cost of raw materials combined with low prices for polyethylene.
Karpatneftekhim Production (unit-kilo tons)
|
Product
|
Jan
|
Feb
|
Mar
|
Benzene
|
9.3
|
8.8
|
9.2
|
Ethylene
|
21.0
|
19.0
|
17.31
|
Propylene
|
11.8
|
8.6
|
7.6
|
In mid-April, the first tons of benzene produced by Karpatneftekhim entered the Russian market after the company concluded a deal to supply 3,600 tons to Kuibyshevazot. Demand for Ukrainian benzene was driven by a shortage of raw materials on the Russian market. All of the benzene produced by Karpatneftekhim is exported.
Ukrainian tariffs proposed on methanol based solvents
Ukrainian Imports of Paint Materials (unit-kilo tons)
|
|
Jan-Mar 21
|
Jan-Mar 20
|
Jan-Mar 19
|
Quantity
|
27.2
|
14.7
|
13.6
|
Methanol imports into Ukraine amounted to 28,200 tons in the first quarter this year against 24,900 tons in the same period in 2020 and 12,700 tons in 2019. The consumers in Ukraine driving demand include gas and MTBE producers Ukrgasdobycha and Ukrtatnafta.
The Cabinet of Ministers and the Oil and Gas Association of Ukraine intend to study the issue of excise taxation of the operation on the sale of solvents based on methanol. The total loss of excise duty from artisanal production of counterfeiting using these components can reach 1 billion hryvnia ($35.973 million). A total of 27,200 tons of solvents for the paint industry were imported to Ukraine in January-March 2021 under code 3814009090. This is 85% more than in the same period in 2020 (14,700 tons) and twice as much as in the first quarter of 2019 (13,600 tons). These products are a mixture of octane-higher components used in the production of gasoline: MTBE, methanol, toluene, orthoxylene and technological gasoline.
Belarussian chemical production, Jan-Mar 2021
Belarussian Petrochemical Production (unit-kilo tons)
|
Product
|
Jan-Mar 21
|
Jan-Mar 20
|
Ethylene
|
36.7
|
19.6
|
Propylene
|
22.7
|
11.1
|
Benzene
|
26.5
|
19.0
|
Caprolactam
|
20.0
|
20.5
|
OX
|
8.3
|
4.5
|
PX
|
10.8
|
13.7
|
Methanol
|
24.2
|
14.5
|
Ethylene production in Belarus totalled 36,700 tons in the first three months in 2021 against 19,600 tons in the same period in 2020. Propylene production increased from 11,100 tons to 22,700 tons, whilst caprolactam production amounted to 20,000 tons against 20,500 tons. Paraxylene production at the Naftan refinery decreased in the first three months in 2021 to 10,800 tons against 13,700 tons in the same period in 2020.
Belarussian aromatics trade, Jan-Mar 2021
Belarussian Aromatic Imports (unit-kilo tons)
|
Product
|
Jan-Mar 21
|
Jan-Mar 20
|
OX
|
5.0
|
2.4
|
PX
|
6.1
|
2.9
|
Benzene
|
2.4
|
0.0
|
Toluene
|
1.5
|
1.2
|
Benzene exports from Belarus totalled 10,863 tons in the first quarter against no activity undertaken in the same quarter last year. Average prices amounted to $869 per ton. From the exports, Russian consumers took 9,571 tons most of which went to Shchekinoazot and the remainder was sent to Rotterdam for further transhipment. Despite exporting large volumes in the first quarter Belarus still imported 2,386 tons of benzene in the first quarter this year at an average price of $839 per ton. Most of the imported benzene was sourced from Ukraine, from Karpatneftekhim.
In other areas of aromatic trade paraxylene imports into Belarus increased in the first quarter to 6,097 tons against 2,886 tons in the same period in 2020. Prices per ton for paraxylene dropped on average from $777 to $657. From the 6,097 tons of paraxylene imported into Belarus Kazakhstan supplied 4,285 tons from the Atyrau refinery and Russian refineries supplied 1,811 tons. Kazakh prices averaged $645 per ton and Russian prices $687.
Belarussian methanol trade, Jan-Mar 2021
Belarussian Methanol Market (unit-kilo tons)
|
|
Jan-Mar 21
|
Jan-Mar 20
|
Production
|
24.2
|
14.5
|
Exports
|
8.2
|
8.2
|
Imports
|
32.2
|
21.1
|
Balance
|
48.2
|
27.4
|
Methanol exports from Belarus amounted to 8,213 tons in the first quarter against 8,166 tons in the same period in 2020, whilst average prices per ton rose from $225 up to $370. Methanol imports into Belarus rose from 21,076 tons to 32,314 tons in the first quarter this year with average prices rising from $120 per ton to $314 per ton. Almost all of the methanol imports were sourced from Russia.
Belarussian chemical trade, Jan-Mar 2021
Belarussian Organic Chemical Exports
(unit-kilo tons)
|
Product
|
Jan-Mar 21
|
Jan-Mar 20
|
Acrylonitrile
|
12.2
|
5.2
|
Melamine
|
0.9
|
1.1
|
Caprolactam
|
0.6
|
2.4
|
Phthalic anhydride
|
12.8
|
7.2
|
Methanol
|
8.2
|
8.2
|
Acrylonitrile export volumes from Belarus rose in the first three months in 2021 to 12,198 tons against 5,246 tons in the same period in 2020. Average prices rose from $1,159 per ton to $1,608 per ton. The Netherlands was the main destination for acrylonitrile exports in the first quarter taking 6,900 tons followed by Turkey with 3,100 tons. Propylene imports from Russia into Belarus have stopped since the first quarter in 2020 due to increased domestic production. Belarus uses propylene in the production of acrylonitrile.
Phthalic anhydride exports from Belarus totalled 12,791 tons in the first three months in 2021 against 7,238 tons in same period in 2020, with average export prices dropping from $814 per ton to $797. Phthalic anhydride producer Lakokraska announced a tender for the purchase of pentaerythritol with a volume of 2,500 tons. Applications for the tender were being accepted until 13 May, but the tender was almost certainly going to be awarded to Metafrax at Gubakha.
Belarus imports normally around 3,000 tons of acetone per quarter from Russia for further processing. In the first quarter this year acetone imports amounted to 3,493 tons against 3,343 tons in the same period in 2020. Prices have doubled since last year rising from $406 per ton to $815 per ton. Russia supplied 2,845 tons of acetone to Belarus in the first three months in 2021.
Belarussian PTA imports, Jan-Mar 2021
Belarussian PTA Imports (kilo tons)
|
Country
|
Jan-Mar 21
|
Jan-Mar 20
|
Russia
|
1.0
|
0.0
|
South Korea
|
7.8
|
6.5
|
Portugal
|
4.8
|
2.0
|
Poland
|
2.7
|
10.9
|
Thailand
|
0.0
|
0.2
|
Total
|
16.3
|
19.5
|
PTA imports into Belarus totalled 16,303 tons in the first three months in 2021 against 19,383 tons in 2020. Average prices dropped from $869 per ton to $642 in 2020. South Korea increased shipments to 7,800 tons from 6,500 tons, whilst Poland reduced shipments from 10,900 tons to 2,700 tons.
Belarussian polymer & MDI imports, Jan-Mar 2021
Belarussian Polymer Imports (unit-kilo tons)
|
Product
|
Jan-Mar 21
|
Jan-Mar 20
|
PVC
|
22.3
|
17.4
|
Polypropylene
|
27.8
|
28.5
|
LDPE
|
7.4
|
10.4
|
HDPE
|
12.7
|
14.4
|
Polystyrene
|
16.0
|
17.2
|
In the first three months in 2021 imports of polypropylene to Belarus dropped slightly to 27,800 tons from 28,500 tons. Imports of PVC into Belarus increased to 22,300 tons, which is 39% more than in the same period in 2020. The key suppliers of resin during this period were producers from Russia, their share in the Belarusian market was about 85%. The second and third place in terms of supply is occupied by producers from Germany and Ukraine with a share of about 8% and 5% respectively.
Belarussian MDI Imports (unit-kilo tons)
|
Country
|
Jan-Mar 21
|
Jan-Mar 20
|
Russia
|
0.6
|
0.5
|
Belgium
|
1.0
|
0.1
|
Hungary
|
1.5
|
0.1
|
Germany
|
3.1
|
2.3
|
Saudi Arabia
|
0.4
|
0.6
|
Others
|
0.3
|
0.1
|
Total
|
6.9
|
3.6
|
MDI imports into Belarus increased from 3,599 tons in the first quarter last year to 6,926 tons in the same period in 2021. Average prices increased from $1,391 per ton to $2,452 per ton. Germany was the largest supplier to Belarus shipping 3,100 tons versus 2,300 tons, followed by Hungary which supplied 1,501 tons.
Technip completes modernisation at Azerkhimya
Technip Energies completed the reconstruction and modernisation of the ethylene-polyethylene plant of Azerkhimya owned by SOCAR. Technip completed contract performance tests at the plant in February, showing that all technological modifications made as part of the project are working correctly. The modernisation lifts the capacity for ethylene production from 100-105,000 tpa to 192,000 tpa and propylene from 50,000-55,000 tpa to 187,000 tpa.
Azerbaijan Petrochemical Production (unit-kilo tons)
|
Product
|
Jan-Mar 21
|
Jan-Mar 20
|
Ethylene
|
42.3
|
32.0
|
Polyethylene
|
32.7
|
35.0
|
Propylene
|
32.7
|
33
|
In the first three months this year, Azerbaijan produced 32,700 tons of propylene, 42,100 tons of polyethylene and 42,300 tons of ethylene. Azerbaijan exported 117,227 tons of polymer products in January-March 2021, representing an increase of 1.9 times over the same period in 2020. By value exports of polyethylene amounted to 33,747 tons for $35.142 million, polypropylene 23,988 tons at $26.791 million. Propylene exports amounted to 5,572 tons in the first quarter for a value of $7.845 million.
PKN Orlen Q1 2021
PKN Orlen Group Chemical Production (unit-kilo tons)
|
Product Group
|
Jan-Mar 21
|
Jan-Mar 20
|
Monomers
|
221
|
250
|
Polymers
|
144
|
115
|
Aromatics
|
86
|
102
|
Fertilisers
|
306
|
286
|
Plastics
|
104
|
105
|
The Orlen Group generated revenues of €5.446 billion in the first quarter up from €4.894 billion in the same period in 2020. This increase occurred despite a drop in group oil throughput (down 19%) and sales (down 11%). Key growth projects were continued during the first quarter, with €398 million allocated to projects.
PKN Orlen Petrochemical Margins (€ per ton)
|
Product
|
Q1 18
|
Q1 19
|
Q1 20
|
Q1 21
|
Ethylene
|
652
|
578
|
594
|
559
|
Propylene
|
510
|
516
|
480
|
515
|
Toluene
|
166
|
172
|
222
|
126
|
Benzene
|
335
|
103
|
309
|
306
|
Butadiene
|
415
|
453
|
356
|
335
|
Paraxylene
|
387
|
534
|
402
|
243
|
In the petrochemical division the Orlen Group recorded an EBITDA of €145.9 million contrasting against a loss of €42.3 million for the refining sector. Petrochemical margins for monomers, with the exception of propylene, were down against comparative quarters in recent years. However, the quarter ended strongly for petrochemical margins which helped drive up the EBITDA.
PKN Orlen Petrochemical Utilisation Rates %
|
Product
|
Locations
|
Q1 20
|
Q4 20
|
Q1 21
|
Olefins
|
Plock
|
82%
|
80%
|
72%
|
BOP
|
Plock
|
76%
|
73%
|
67%
|
Metathesis
|
Plock
|
85%
|
79%
|
72%
|
Fertilisers
|
Wloclawek
|
82%
|
66%
|
84%
|
PVC
|
Wloclawek
|
80%
|
81%
|
74%
|
PTA
|
Wloclawek
|
93%
|
98%
|
84%
|
Olefins
|
Litvinov
|
82%
|
83%
|
73%
|
PPF splitter
|
Orlen Lietuva, Lithuania
|
86%
|
87%
|
92%
|
Utilisation rates were mostly down in the first three months at both main petrochemical complexes at Plock and Litvinov. BOP only achieved utilisation rates of 67% in the first quarter this year due to monomer shortages. Anwil is conducting planned preventive measures at the caustic soda plant at Wloclawek, along with the production of PVC. Maintenance was started in early April and could continue until the end of June.
Orlen Group’s production of monomers dropped from 250,000 tons in the first quarter last year to 221,000 tons whilst polymer production increased from 115,000 tons to 144,000 tons. Aromatics production dropped from 102,000 tons to 86,000 tons whilst fertiliser production at Anwil increased from 175,000 tons to 306,000 tons.
PTA production at Wloclawek was also lower than in the first quarter last year and the fourth quarter due unresolved technical issues. Orlen Lietuva was the only group plant to report higher than 90% utilisation rates at its propane-propylene splitter, having achieved 92% in the first quarter this year.
PKN Orlen Production (unit-kilo tons)
|
Product
|
Jan-Mar 21
|
Jan-Mar 20
|
Ethylene
|
97.2
|
116.1
|
Propylene
|
87.3
|
113.5
|
Butadiene
|
12.5
|
14.5
|
Toluene
|
2.9
|
2.7
|
Phenol
|
11.9
|
12.8
|
Polyethylene
|
65.7
|
83.5
|
PVC
|
67.6
|
74.9
|
Polypropylene
|
73.1
|
89.7
|
PTA
|
143
|
163
|
Crude throughput for the Orlen Group amounted to 6.2 million tons in the first quarter, with sales totalling around 5.0 million tons. Ethylene production at Plock fell from 116,100 tons to 97,200 tons whilst propylene dropped from 113,500 tons to 87,300 tons.
Sales pf petrochemicals from the Orlen Group totalled 1.3 million tons, with significant rises reported for Lithuania (up 42%) and the Czech Republic (up 16%). In terms of volume sales monomers dropped from 244,000 tons in the first quarter in 2020 to 215,000 tons whilst polymers rose from 100,000 tons to 149,000 tons. PTA sales dropped from 156,000 tons to 141,000 tons.
PKN Orlen-PTA Q1 2021
PKN Orlen’s production and sales of PTA was slightly lower in the first quarter in 2021 against recent quarters, with production at Wloclawek dropping from 163,000 tons in the first quarter last year to 143,000 tons.
Production is believed to have been constrained by raw material tightness, a trend which continued into April when full contract deliveries were not met. The position improved in May with plant will supplying minimum contract volumes. Orlen still recorded earnings a gross profit on PTA sales in the first quarter of €12.4 million.
Polish PTA Exports (unit-kilo tons)
|
Country
|
Jan-Mar 21
|
Jan-Mar 20
|
Belarus
|
2.5
|
9.4
|
Germany
|
86.7
|
83.5
|
Lithuania
|
10.2
|
3.7
|
Switzerland
|
1.1
|
2.2
|
Turkey
|
0.0
|
1.9
|
Others
|
1.7
|
4.5
|
Total
|
102.2
|
105.7
|
PTA exports dropped from 105,700 tons in the first quarter in 2020 to 102,200 tons in the same period this year. Germany remained the main customer for Polish PTA, taking 86,700 tons in the first quarter. Belarus was the second largest destination for PTA export shipments. Average prices for Polish PTA exports in the first three months this year amounted to $554 per ton. PTA imports into Poland in the first quarter this year totalled 16,024 tons, the largest share of which came from the Netherlands.
Orlen Poludnie-propylene glycol
Polish Propylene Imports (unit-kilo tons)
|
Country
|
Jan-Mar 21
|
Jan-Mar 20
|
Austria
|
0.0
|
0.0
|
Czech Republic
|
0.0
|
3.1
|
Germany
|
37.3
|
0.0
|
Lithuania
|
5.4
|
4.8
|
Russia
|
9.2
|
5.6
|
Ukraine
|
18.3
|
18.5
|
Others
|
0.0
|
0.0
|
Total
|
70.2
|
31.9
|
Orlen Poludnie is finalising the construction of its new plant for propylene glycol. The investment for the 30,000 tpa plant had achieved around 90% of the project schedule in May. Orlen Poludnie hopes to cover as 75% of the domestic demand for this product. Propylene glycol imports into Poland totalled 8,300 tons in the first quarter in 2021 against 6,300 tons in Q1 2020.
Propylene glycol is used in medicine, cosmetics, food and pharmaceutical industries. The investment is expected to be completed in the last quarter of 2021. Construction of the plant for its production began at Trzebinia in 2019. Construction, delivery and assembly of the most important equipment have already been completed. Piping, cable routes and power routes are currently being assembled.
The hydrogen plant created as part of this investment will facilitate a position for Orlen in the alternative fuels market. Orlen Poludnie is expected to be the first refinery in Poland to deploy hydrogen fuel. Annual hydrogen production will be 16 million Nm3 of which 75% will be used to produce glycol. The remaining 25% (4 million Nm3) will immediately be used as fuel in transport.
Synthos Production (unit-kilo tons)
|
Product
|
Jan-Mar 21
|
Jan-Mar 20
|
Polystyrene
|
18.6
|
17.2
|
EPS
|
20.7
|
24.2
|
Synthetic Rubber
|
62.7
|
73.9
|
Synthos-production and power resources
Synthos produced 62,700 tons of synthetic rubber in the first three months in 2021 against 73,900 tons in the same period in 2020. Production was affected by the accident that took place in January at Oswiecim involving the emulsion butadiene-styrene rubber (EBSR) plant. Synthos is operating capacity utilization at around 80% of the 185,000 tpa plant, which is still undergoing partial repair from the accident.
Synthos at the Oswiecim complex also produces 120,000 tpa of styrene and 105,000 tpa of foamed polystyrene. In other areas of production Synthos produced 18,600 tons of general polystyrene in the first quarter against 17,200 tons whilst expandable polystyrene production dropped from 24,200 tons to 20,700 tons. Regarding the
Polish Tyre Production (unit-kilo tons)
|
Category
|
Jan-Mar 21
|
Jan-Mar 20
|
Car Tyres
|
79.0
|
75.3
|
Bus and truck Tyres
|
54.3
|
51.0
|
Tractor tyres
|
4.0
|
3.6
|
Total
|
137.2
|
130.5
|
domestic Polish market consumption of rubber increased in the first quarter to 137,100 tons from 130,500 tons in the same period in 2020. All areas of tyre usage increased production. For energy interests Synthos is examining opportunities in the offshore wind industry in addition to small modular nuclear reactors in Poland. Synthos is in contact with companies Exelon Generation, GEH and Finnish Fortum Power and Heat Oy.
Czech Polyethylene Trade 2020-2021
|
Quarter
|
Exports (ktons)
|
Exports (€ mil)
|
Imports (ktons)
|
Imports (€ mil)
|
Q1 20
|
76.5
|
69.6
|
99.8
|
81.0
|
Q2 20
|
81.3
|
97.6
|
77.0
|
73 1
|
Q3 20
|
71.4
|
75.8
|
81.6
|
73 6
|
Q4 20
|
95.5
|
106.4
|
92.6
|
80.7
|
Q1 21
|
120.8
|
94.2
|
118.2
|
84.6
|
Czech petrochemical trade, Q1 2021
Polyethylene trade in the first quarter in the Czech Republic increased sharply for both exports and imports. Exports amounted to 120,800 tons in the first quarter versus 95,500 tons in 2020, although overall values dropped from €106.4 million to €94.2 million. Imports rose from 92,600 tons to 118,200 tons with values rising from €80.7 million to €84.8 million.
Czech Petrochemical Exports (unit-kilo tons)
|
Product
|
Jan-Mar 21
|
Jan-Mar 20
|
Ethylene
|
7.4
|
2.7
|
Propylene
|
0.0
|
2.0
|
Benzene
|
11.5
|
1.3
|
Toluene
|
2.8
|
1.6
|
Ethylbenzene
|
30.9
|
19.5
|
Czech exports of ethylbenzene rose in the first quarter to 30,909 tons from 19,487 tons in the same period in 2020. All the ethylbenzene was shipped from Kralupy to Oswiecim in Poland, all within the structures of the Synthos Group. Imports of benzene into the Czech Republic amounted to 20,783 tons in the first three months of which around 90% came from Poland. Thus, benzene is imported mostly from Kedzierzyn-Kozle and shipped to Kralupy for ethylbenzene production.
Czech Petrochemical Imports (unit-kilo tons)
|
Product
|
Jan-Mar 21
|
Jan-Mar 20
|
Ethylene
|
1.3
|
2.1
|
Propylene
|
13.5
|
10.4
|
Butadiene
|
22.3
|
10.9
|
Benzene
|
20.8
|
20.3
|
Toluene
|
2.0
|
0.9
|
Styrene
|
13.4
|
11.0
|
Benzene exports rose from 1,265 tons to 11,493 tons in the first quarter this year. Most of the benzene was shipped to Germany. Ethylene exports increased from 2,655 tons to 7,365 tons in January to March this year of which 5,764 tons went to Germany.
Imports of ethylene into the Czech Republic dropped from 2,146 tons in the first quarter in 2020 to 1,332 tons in the same period this year. Propylene rose from 10,408 tons to 13,502 tons of which 4,698 tons was supplied by Germany and 3,098 tons by Poland. Other propylene import sources included Romania with 2,064 tons and Ukraine 3,388 tons.
MOL's Olefin & Polyolefin Production (unit-kilo tons)
|
Product
|
Jan-Mar 21
|
Jan-Mar 20
|
Ethylene
|
207
|
205
|
Propylene
|
109
|
103
|
Butadiene
|
25
|
18
|
Raffinate
|
38
|
31
|
Product
|
Jan-Mar 21
|
Jan-Mar 20
|
LDPE
|
67
|
63
|
HDPE
|
90
|
100
|
PP
|
137
|
132
|
Czech imports of butadiene rose from 10,900 tons in the first three months last year to 22,261 tons of which Germany supplied a total of 19,160 tons and Hungary 3,102 tons.
MOL Q1 2021
MOL Group delivered $664 million EBITDA in Q1 2021, 7% higher than in the same quarter last year. Strong oil-and gas prices combined with record high petrochemical margins contributed to the results.
MOL’s downstream EBITDA came in at $254 million 14% lower than last year in the same period. This was due to lower refinery volumes caused by mobility restrictions and the lower refinery margins. This decline was partly offset by the strong petrochemical performance, as the integrated petrochemical margin increased by 74% amounting to €873 per ton during March 2021.
MOL Group Sales of Refinery and Petrochemical Products
(unit-kilo tons)
|
Country
|
Jan-Mar 21
|
Jan-Mar 20
|
Hungary
|
1,016
|
1,082
|
Slovakia
|
354
|
425
|
Croatia
|
392
|
432
|
Italy
|
337
|
342
|
Other markets
|
1,763
|
1,901
|
TOTAL
|
3,862
|
4,182
|
Ethylene production for MOL’s two sites at Tiszaujvaros and Bratislava amounted to 207,000 tons in January-March 2021 versus 205,000 tons in the same period in 2020 whilst propylene increased from 103,000 tons to 109,000 tons.
Butadiene production at Tiszaujvaros rose from 18,000 tons in January to March 2020 to 25,000 tons whilst raffinate production rose to 38,000 tons from 31,000 tons. In the polyolefin division, MOL produced 137,000 tons of polypropylene in Hungary and Slovakia against 132,000 tons in the first quarter last year, and 90,000 tons of HDPE against 100,000 tons.
Central European methanol trade Jan-Mar 2021
Polish Methanol Imports (unit-kilo tons)
|
Country
|
Jan-Mar 21
|
Jan-Mar 20
|
Belarus
|
1.3
|
3.2
|
Finland
|
25.0
|
0.0
|
Lithuania
|
1.6
|
3.2
|
Germany
|
21.6
|
1.8
|
Netherlands
|
25.6
|
0.0
|
Norway
|
0.0
|
13.9
|
Russia
|
96.3
|
136.3
|
Others
|
0.8
|
25.3
|
Total
|
172.2
|
183.7
|
Czech imports of methanol amounted to 22,400 tons in the first quarter this year against 26,000 tons in the January to March 2021.
Imports of methanol into Poland totalled 172,200 tons in the first quarter against 183,700 tons in the same period last year. Exports of methanol from Poland rose to 44,500 tons in January to March 2021. Import prices of methanol averaged €285 per ton and export prices averaged €347 per ton. Polish consumption of methanol is diverse including buyers such as PKN Orlen and Grupa Azoty, in addition to large traders which distribute methanol throughout Central Europe.
MSK Kikinda in Serbia exported 18,400 tons of methanol in the first quarter against 20,100 tons in the same period in 2020. Acetic acid exports from the same plant dropped 16,100 tons to 14.600 tons.
Central European isocyanates Jan-Mar 2021
Czech MDI Imports (unit-kilo tons)
|
Country
|
Jan-Mar 21
|
Jan-Mar 20
|
China
|
0.7
|
0.7
|
Belgium
|
3.3
|
1.8
|
Germany
|
4.5
|
3.1
|
Hungary
|
1.6
|
0.7
|
Netherlands
|
0.6
|
0.4
|
Others
|
0.3
|
0.3
|
Total
|
11.1
|
7.1
|
Polish TDI imports amounted to 20,800 tons in the first quarter this year against 20,700 tons in 2020, but the significant rise in pricing meant that costs rose from €31.9 million to a total of €51.8 million. MDI imports into Poland in the first three months totalled 34,723 tons of which Germany supplied 12,894 tons and Hungary 11,869 tons.
Polish TDI Imports (ktons)
|
Country
|
Jan-Mar 21
|
Jan-Mar 20
|
Germany
|
6.5
|
6.2
|
Netherlands
|
2.0
|
3.0
|
Hungary
|
10.3
|
9.4
|
Saudi Arabia
|
0.7
|
1.3
|
Others
|
1.4
|
0.
|
Total
|
20.8
|
20.7
|
Polish TDI Imports (€ million)
|
Country
|
Jan-Mar 21
|
Jan-Mar 20
|
Germany
|
16.9
|
9.5
|
Netherlands
|
5.6
|
4.7
|
Hungary
|
26.8
|
14.2
|
Saudi Arabia
|
1.9
|
2.0
|
Others
|
0.7
|
1.4
|
Total
|
51.8
|
31.9
|
Czech MDI imports increased in the first quarter to 13,900 tons against 7,100 tons in the same period last year, with costs rising from €10.7 million to €22.1 million.
Polimery Police investment affects Grupa Azoty in Q1 21
Grupa Azoty recorded a consolidated net profit of €19.0 million in the first quarter in 2021, which is well below the forecast net profit of €49.6 million. Grupa Azoty's EBITDA in the first quarter was €89.7 million and the market expected it to reach €116.0 million. Grupa Azoty's revenues amounted to €743.4 million which was lower than the market forecast of €787.9 million.
A significant impact on the group's net profit came from the necessary cash flows for the Polimery Police project. Grupa Azoty reported that higher product prices in all key segments (fertilisers, plastics and chemistry) had a positive impact on EBITDA. The EBITDA, in turn, was mainly affected by higher prices for raw materials used for group production, mainly natural gas, as well as an increase in transmission charges for electricity and higher prices for CO2 emission allowances.
The EBITDA result of Azoty’s plastics segment was primarily influenced by higher average product prices and increased demand in almost all applications. Both higher benzene) and lower prices of phenol were recorded in the first period. The EBITDA result of the chemistry segment was shaped by significantly higher prices for oxo alcohols, melamine, urea and plasticizers. Demand in most segment markets rebounded from the first quarter of 2020, particularly for oxo alcohols.
Ciech-EBITDA forecasts for 2021
Ciech Selected Revenues (€)
|
Product
|
2020
|
2019
|
Dense soda ash
|
3.7 bil
|
4.5 bil
|
Light soda ash
|
1.0 bil
|
1.9 bil
|
Salt
|
865.5 mil
|
913.6 mil
|
Sodium bicarbonate
|
480.8 mil
|
448.6 mil
|
Raw materials for plant protection products
|
446.1 mil
|
588.1 mil
|
Raw materials for polyurethane foams
|
440.6 mil
|
623.2 mil
|
Sodium silicates
|
51.3 mil
|
47.4 mil
|
Ciech forecasts that the Group's EBITDA in 2021 could increase by about 20-25% compared to 2020 (which amounted to €129.6 million), i.e., to the level of €155.0-162.8 million. According to the forecast, revenue stood at between €690 million and €695 million. Ciech estimates that due to the investments made in the sodium bicarbonate plant at Stassfurt in Germany, combined with increased efficiency of production processes, the group's EBITDA in 2021 could increase by about 20-25%.
Grupa Azoty launches piiot plant for biodegrabable plastics
Grupa Azoty at its parent plant in Tarnow has launched a pilot and production line for thermoplastic starch with a production capacity of 300 tpa. The new plastic is 100% biodegradable and is the first solution of its kind in the region. The new production line is Grupa Azoty's response to EU Directive which aims to reduce the environmental impact of certain plastic products.
PCC Rokita, Q1 2021
PCC Rokita Sales (unit-kilo tons)
|
|
Q1 21
|
Q1 20
|
Polyurethanes
|
25
|
24
|
Chlorine Division
|
88.6
|
89
|
Organochlorine
|
6.5
|
6
|
PCC Rokita reported revenues of €109.7 million in the first quarter with the net profit rising to €15.4 million. The net margin comprised 14%. The first quarter saw strong demand for polyols and polyurethanes. In view of raw material shortages such as propylene oxide this helped put upward pressure on pricing. PCC Rokita produces its own propylene oxide.
PCC Exol, Q1 2021
PCC Exol's sales (unit-kilo tons)
|
Product Group
|
Q1 21
|
Q1 20
|
Surfactants for detergents and cosmetics
|
18
|
16.3
|
Surfactants for use in industry
|
8.3
|
8.9
|
PCC Exol increased its EBITDA by 11% in the first quarter and net profit rose by 22.5%. The company achieved the highest sales on record for the group of detergent and cosmetic products, both in terms of value and quantity, amounting to €17.8 million and 18,000 tons respectively. Lower sales of products for industrial applications were achieved compared to the first quarter of last year.
Since the beginning of 2021, PCC Exol has been observing an increased demand for some industrial applications. Total costs for PCC Exol rose 6.2% in the first quarter to €38 million, including €33.6 million for operating activities up by €2.6 million or by 8.3% against the first quarter.