Grupa Azoty reduces production in March and April after difficult first quarter in 2023 - Issue 391 || PKN Orlen-petrochemical production Jan-Apr 2023 - Issue 391 || Central European styrene trade Jan-Apr 2023 - Issue 391 || Polish polyethylene production & trade Jan-Apr 2023 - Issue 391 || Polish polypropylene production & trade Jan-Apr 2023 - Issue 391 || Polish synthetic rubber trade, Jan-Apr 2023 - Issue 391 || Central European MDI trade Jan-Apr 2023 - Issue 391 || Central European methanol trade Jan-Apr 2023 - Issue 391 || Russian chemical industry-new terminals required to serve Chinese market - Issue 391 || Russian butadiene production Jan-Apr 2023 - Issue 391 || Russian plastics and polyethylene production Jan-Apr 2023 - Issue 391 || Russian polyethylene trade Jan-Apr 2023 - Issue 391 || PTA deliveries from China to Kaliningrad - Issue 391 || Russian methanol production Jan-Apr 2023 - Issue 391 || Russian methanol exports, Jan-Apr 2023 - Issue 391 || Methanol plant at Volgograd signs agreement with Chinese company - Issue 391 || Russian polyurethane raw materials 2023 - Issue 391 || Uzbek methanol island-Air Products - Issue 391 || Russian Methanol Production, exports and domestic sales 2023 - Issue 392 || Polish petrochemical production Jan-May 2023 - Issue 392 || Olefin 111 project outline - Issue 392 || Polimex Mostostal and Naftoremont-Naftobudowa-Olefin 111 project - Issue 392 || Hungarian propylene exports Jan-Apr 2023 - Issue 392 || Central European styrene trade Jan-May 2023 - Issue 392 || Czech petrochemical trade, Jan-May 2023 - Issue 392 || Polish rubber trade Jan-May 2023 - Issue 392 || Hungarian TDI-MDI exports Jan-Feb 2023 - Issue 392 || Russian propylene exports & sales Jan-May 2023 - Issue 392 || KPI polypropylene outage & exports - Issue 392 || Russian methanol producer operational balances 2023 - Issue 396 || Russian Methanol Exports October 2023 - Issue 396 || Polish Polyol Exports 2022-2023 - Issue 396 || Polish Polyol Imports 2022-2023 - Issue 396 || Central European isocyanate trade Jan-Sep 2023 - Issue 396 || Czech polyol imports Jan-Sep 2023 - Issue 396 || Polish polyol trade Jan-Sep 2023 - Issue 396 || Isocyanate/polyol imports from China into Russia - Issue 396 || Russian Methanol Market Analysis January to June 2024, including production and trade balances - Issue 405 || Polish synthetic rubber production and domestic market Jan-Jun 2024 - Issue 405 || Polish Methanol Trade Statistics - Issue 405 ||
 


CIREC News July

 

Druzhba supplies to the EU and war complications

Hungarian crude purchases Jan-Mar 2023

Country

Vol (ktons)

€ per ton

Croatia

145.526

602.257

Iraq

185.232

433.529

Kazakhstan

228.331

550.181

Russia

1003.139

316.521

Total

1562.925

390.269

Due to increased concerns over crude security on the Druzhba oil pipeline, orders for Russian oil supplies to the EU rose by 16% in June compared to May.   Only the southern branch of the Druzhba is currently operating and is key to refinery supplies to Hungary, Slovakia and the Czech Republic.  The recent dam explosion at Nova Kakhovka in Ukraine provides warnings over the potential impact of war damage to other infrastructural facilities.   

MOL organised a total order of 900,000 tons of oil in June for delivery through the Druzhba to Hungary and Slovakia.  As for the Orlen Group Unipetrol is the only member still buying crude from Russia.  Unipetrol ordered up to 430,400 tons in June, compared to 400,000 tons in May.

 

Central European refining margins & processing levels

Refining margins for PKN Orlen in the first four months this year remained significantly above the historical averages, rising from $5.4 in the first quarter in 2022 to $18.2 in 2023.   However, the trend for the remainder the year indicates lower numbers, with April margins dropping to $11.  For the full year of 2023, regional fuel competitor OMV Petrom has forecast that refining margins for 2023 to amount to slightly above $9 per barrel against $16.6 in 2022.  Orlen expects that operating profit would decline in the second quarter compared to the first as refining margins and volumes start to drop.  

Hungary’s average price for crude imports in January to March amounted to €390 per ton, mainly helped by the price cap on Russian crude.  Purchases of crude from Russia in January to March amounted to 1.003 million tons from the total of 1.563 million tons, thus accounting for 64% of supply.  The Russian average price of €316.521 per ton compared against the next lowest price of €433.529 per ton from Iraq, although volumes from Iraq were small.  Volumes from Kazakhstan, delivered by the Druzhba, amounted to 228,331 tons in the first three months at an average price of €550.181 per ton. 

MOL has started transporting crude oil from its oil field in Azerbaijan to Slovnaft in Bratislava via the Adria oil pipeline.  The Adria is seen the key alternative to the Druzhba for Hungary and Slovakia. 

Polish imports of crude oil 2023

Polish Imports of Crude Oil Jan-Apr 2023

Country

Vol (million tons)

€ per ton

Saudi Arabia

4.092

567.9

Russia

1.150

316.4

Nigeria

0.645

609.8

Norway

2.052

549.5

US

0.371

611.7

UK

0.486

596.6

Total

8.806

537.3

Poland imported 8.806 million tons in the first four months in 2023 at an average price of €537.3 per ton.  Saudi Arabia supplied 4.092 million tons at an average price of €567.9 per ton followed by Norway which supplied 2.052 million tons at an average price of €549.5 per ton. 

Partly due abandoning Russian crude, Orlen has predicted lower margins in the refining sector in the second quarter.  First quarter profits benefited to some extent from lower Russian crude prices until late February, although the main factor behind increased profits was the consolidation of Lotos and PGNiG into the Orlen Group.  Orlen’s first quarter revenues increased more than two-fold to zl 110.27 billion (€24.796 billion).  Due to consolidation Orlen's total sales volumes in the refining segment rose by 26% to 7.4 million tons, mainly due to higher sales in Poland, while refining margins jumped to $18.3 per barrel of crude oil from $6.0 in the same period in 2022.

PKN Orlen-petrochemical production Jan-Apr 2023

PKN Orlen Production (unit-kilo tons)

 Product

Jan-Apr 23

Jan-Apr 22

 Ethylene

123.2

162.5

 Propylene

110.1

155.7

 Butadiene

20.9

23.5

 Toluene

0.5

3.6

 Phenol

14.3

17.2

 Polyethylene

103.0

112.9

 Polypropylene

92.5

119.3

PKN Orlen reduced ethylene production in the first four months in 2023 to 123,200 tons from 162,500 tons in the same period in 2022.  Propylene production at Plock dropped from 155,700 tons to 110,100 tons.

Orlen Group utilisation rates

PKN Orlen Utilisation Rates

Product

Q1 22

Q4 22

Q1 23

Olefins (Plock)

89%

78%

78%

BOP (Plock)

74%

67%

70%

Metathesis (Plock)

69%

14%

51%

Fertilisers

64%

47%

81%

PVC (Wloclawek)

88%

65%

64%

PTA (Wloclawek)

100%

70%

66%

Olefins (Orlen Unipetrol)

94%

77%

85%

PPF Splitter (Orlen Lietuva)

92%

89%

81%

April output continued the trend from the first quarter when all of the plants in the Orlen Group showed lower utilisation rates than in the first quarter in 2022 although better than in the fourth quarter.  Utilisation rates this year have been affected by a combination of demand side factors and maintenance. 

The olefins complex at Plock operated at 78% of capacity in the first three months.  This was partly due to the production problems at Anwil’s PVC plant which itself only ran at 64% in the first quarter.  Other facilities at Plock such as the BOP division ran only at 70% in the first quarter.  This was the result of a shutdown, which also affected the metathesis plant where propylene is produced. 

Orlen Group Petrochemical Sales (€ billion)

 

Jan-Mar 23

Jan-Mar 22

Sales revenues

1253.437

1692.461

External revenues

988.027

1426.608

Inter-segment revenues

265.410

265.854

Total operating expenses

-1346.120

-1541.463

Profit/(Loss) from operations

-45.676

61.419

Sales (,000 tons)

 1,119

 1,397

As a result of lower production sales of petrochemicals for the Orlen Group dropped to 1.119 million tons in the first quarter against 1.397 million tons in the same period in 2022.  PTA production at Wloclawek at 66% of capacity in the first quarter due to weaker demand and maintenance, whilst in the Czech Republic Orlen Unipetrol’s olefin complex operated at 85% in the first quarter which was adjusted to the availability of PE2/PE3 installations.  In Lithuania the PPF Splitter reported lower utilisation as a result of lower demand.

In terms of revenues from petrochemicals first quarter sales amounted to €1.253 billion against €1.692 billion in the same period last year.  Costs of €1.346 billion in the first quarter meant that Orlen recorded an operating loss from petrochemical sakes of €45.676 million versus a profit of €61.419 million in the first three months last year.

Petrochemical margins for PKN Orlen remain relatively high despite the weaker performance in the past few quarters.  Positive margins helped to offset the high energy costs in 2022 which affected European petrochemical producers. 

Ethylene margins amounted to €668 per ton in the first quarter against €664 in Q1 2022 whilst propylene dropped from €679 per ton to €564 per ton.

Orlen’s current ethylene production in Poland

PKN Orlen produces ethylene not only for its own consumption but also for subsidiaries BOP and Anwil and jv partners such as PCC Exol.  Ethylene is used to produce ethylene oxide by PCC Exol for the production of surfactants at Brzeg Dolny.  The company estimates that in the event of problems with ethylene oxide supplies from PKN Orlen, it would be able to replace about half of the supply of the raw material through supplies from other producers.  However, restrictions on the availability of ethylene oxide would cause PCC Exol some difficulties in production. 

Orlen petrochemical investments

PKN Orlen is in the early stages of foundation work on its Olefins III investment which exceeds by size the other petrochemical investments being undertaken in Central Europe.  Local residents in the Plock region are concerned about the project from numerous angles, in particular environmental and also the employment of several thousand foreigners.   By the second half of this year up to 10,000 workers could be employed on the project.  In order to accommodate such a large number of employees, a workers' town has already been built next to the investment.  

 

From Orlen’s updated strategy, announced in the first quarter this year, the emphasis on petrochemicals is aimed at increasing the Group's resistance to unfavourable market trends in traditional hydrocarbon-based fuels.  The expansion of production is aimed at tackling part of the deficit in petrochemicals and polymers in the Polish economy.   

 

Polish propylene imports Jan-Apr 2023

Polish Propylene Imports (unit-kilo tons)

Country

Jan-Apr 23

Jan-Apr 22

Bulgaria

4.991

0.000

Germany

26.417

20.784

Russia

0.000

20.132

Ukraine

0.000

17.018

Serbia

2.903

0.000

Netherlands

6.045

4.421

Others

0.006

0.000

Total

40.362

62.356

Av price

972.9

1239.5

Imports of propylene into Poland dropped in the first four months in 2023 to 40,362 tons against 62,356 tons in the same period in 2022.  Average prices dropped from €1239.5 per ton in January to April 2022 to €972.9 per tons in the first four months in 2023.   Although propylene monomer has not been sanctioned specifically by the EU to date, Russia stopped exporting to Poland in the latter part of 2022. 

 

To compensate for the drop in imports from Russia and Ukraine (where production was suspended at Karpatneftekhim following the Russian invasion), Poland started to receive deliveries from other regional countries in East Europe.  Propylene from Bulgaria came from the Bourgas refinery which is owned by Lukoil amounted to 4,991 tons in the first four months.  Overall Germany is now the main supplier of propylene to Poland, shipping 26,417 tons in the first four months versus 20,784 tons in the same period in 2022.  The Netherlands increased shipments from 4,421 tons in the first four months last year to 6,045 tons in the same period in 2023.

 

Polish butadiene imports Jan-Apr 2023

Polish Butadiene Imports (unit-kilo tons)

Country

Jan-Apr 23

Jan-Apr 22

Austria

14.441

12.046

Germany

2.858

9.029

Hungary

8.857

10.274

Total

26.385

31.349

Av price € per ton

904.0

1061.9

Poland imported 26,385 tons of butadiene monomer in the first four months in 2023, versus 31,349 tons in the same period in 2022.  Imports from Hungary dropped from 10,274 tons last year to 8,857 tons in January to April 2023, whilst shipments from Austria increased from 12,046 tons to 14,441 tons.  

Hungarian propylene & butadiene imports Jan-Mar 2023

Hungarian Propylene Exports (unit-kilo tons)

Country

Jan-Mar 23

Jan-Mar 22

Germany

0.000

3.184

Poland

0.000

0.979

Slovakia

27.266

22.207

Total

27.266

26.370

Av price € per ton

1143.9

1226.5

Hungarian propylene exports amounted to 27,266 tons in the first quarter this year, all of which went to Slovakia at a price of €1143.9 per ton.  MOL currently produces a surplus of propylene, and is also building a new plant of 100,000 tpa which is intended to cover the new propylene oxide plant.  Propylene production by Slovnaft is not sufficient to maintain high utilisation rates for polypropylene and additional supplies need to be purchased.  Slovnaft in Slovakia is currently upgrading its steam cracker unit which should increase the capacity for propylene production. 

Hungarian Butadiene Exports (unit-kilo tons)

Country

Jan-Mar 23

Jan-Mar 22

Czech Republic

6.951

4.088

Germany

1.995

5.035

Poland

7.090

7.201

Total

16.036

16.324

Av price € per ton

882.427

960.659

Hungarian butadiene exports dropped slightly in the first quarter to 16,036 tons versus 16,324 tons in the same period in 2022.  Prices per ton have fallen from €960.7 per ton in the first quarter last year to €882.4 per ton.   MOL produced 21,000 tons of butadiene in the first quarter, of which around 75% is exported.  The remainder consumed in a small plant at Tiszaujvaros for synthetic rubber production.     

 

Czech monomer trade, Jan-Apr 2023

 

Czech Petrochemical Imports (unit-kilo tons)

Product

Jan-Apr 23

Jan-Apr 22

Ethylene

18.340

11.161

Propylene

17.516

13.285

Butadiene

35.198

23.958

Czech Petrochemical Exports (unit-kilo tons)

Product

Jan-Apr 23

Jan-Apr 22

Ethylene

3.970

5.039

Propylene

0.012

0.008

Butadiene

0.000

0.114

Propylene imports into the Czech Republic increased from 13,285 tons in January to April 2022 to 17,516 tons in the same period in 2023.  Germany supplied 12,808 tons in the first four months for €12.978 million.  Other suppliers included Bulgaria from which the Czech Republic purchased 2,712 tons for €1.787 million and Romania where volumes amounted to 1,048 tons for €987,000.  Average prices for Czech propylene imports dropped from €1323 per ton in the first four months in 2022 to €1063 per ton in 2023.   

 

Ethylene exports from the Czech Republic amounted to 3,970 tons in the first four months in 2023 against 5,039 tons in the same period last year, whilst ethylene imports rose from 11,161 tons to 18,340 tons. 

 

Germany supplied 18,265 tons of ethylene to Czech Republic in the first four months in 2023 at a cost of €16.968 million.  This compares against 23,062 tons for the whole of 2022.

Czech imports of butadiene in the first four months this year increased from 23,958 tons to 35,198 tons, supplementing butadiene production at Kralupy.  Germany supplied 25,055 tons for €22.449 million, followed by Hungary which supplied 9,097 tons for €8.677 million.

 

Central European styrene trade Jan-Apr 2023

 

Czech Styrene Imports (unit-kilo tons)

Country

Jan-Apr 23

Jan-Apr 22

Belgium

0.553

1.153

Germany

3.066

0.003

Netherlands

4.763

6.449

Others

1.638

0.170

Total

10.019

7.775

Av price per ton €

1087.0

1553.8

Polish Styrene Imports (unit-kilo tons)

Country

Jan-Apr 23

Jan-Apr 22

Belgium

0.289

5.441

Czech Republic

4.995

1.187

Finland

0.414

0.143

Netherlands

13.878

21.254

Germany

5.632

4.740

Others

1.773

1.653

Total

26.981

34.418

Av price € per ton

1176.1

1457.9

Hungarian styrene imports (unit-kilo tons)

Country

Jan-Mar 23

Jan-Mar 22

Germany

0.627

0.610

Italy

20.600

25.615

Netherlands

0.575

0.466

Others

0.078

0.057

Total

21.880

26.749

Av price € per ton

1317.288

1175.822

Poland imported 26,981 tons of styrene in the first four months in 2023 versus 34,418 tons in the same period in 2022.  The Netherlands reduced shipments to Poland from 21,254 tons to 13,878 tons whilst imports from Germany rose from 4,740 tons to 5,632 tons.  Costs averaged €1176.1 per ton in January to April 2023 against €1457.9 per ton in the same period in 2022. 

Styrene imports into the Czech Republic amounted to 10,019 tons in the first four months in 2023, rising from 7,775 tons in January to April 2022.  Costs averaged €1087.0 per ton in January to April 2023 against €1553.8 per ton in the same period in 2022. 

Hungarian styrene imports amounted to 21,880 tons in the first quarter in 2023 against 26,749 tons in the same period in 2022, with average prices rising from €1175.8 per ton to €1317.3 per ton in 2022.  Italy supplied 25,615 tons in January to March 2022 which fell to 20,600 tons in the same period this year.  Styrene in Hungary is used for the production of polystyrene by Versalis at the Szazhalombatta plant. 

 

Polish polyethylene production & trade Jan-Apr 2023

 

Polish PE Supply/Demand Balance

(unit-kilo tons)

 

Jan-Apr 23

Jan-Apr 22

Production

103.0

112.9

Exports

95.4

124.9

Imports

389.4

490.9

Market Balance

397.0

478.8

Polish PE imports (unit-kilo tons)

Type

Jan-Apr 23

Jan-Apr 22

LDPE

104.988

127.521

LLDPE

66.379

89.895

HDPE

137.081

167.558

EVA

4.760

6.502

EAC

59.599

77.694

Other

16.583

21.705

Total

389.389

490.875

Av price € per ton

1485.9

1831.6

Polyolefin trade into and out of Poland experienced declines in the first four months in 2023, with nearly all grades of polyethylene and polypropylene affected.  Based on production and trade, polyethylene consumption amounted to 397,000 tons in the first four months in 2023 against 478,800 tons in January to April 2022. 

PKN Orlen and Basell Orlen Polyolefins (BOP) produced a combined total of 103,000 tons of polyethylene at Plock in the first four months in 2023 against 112,900 tons in the same period last year.  Poland’s consumption of polyethylene amounted to 1.291 million tons in 2022 versus 1.350 million tons in 2021.

Polyethylene imports into Poland totalled 389,389 tons in January to April 2023 versus 490,875 tons in the same period in 2022, with average prices dropping from €1831.6 per ton to €1485.9 per ton this year. 

HDPE imports into Poland dropped from 167,558 tons to 137,081 tons in January to April 2023 whilst LDPE imports dropped from 127,521 tons to 104,988 tons.  LLDPE imports declined from 89,895 tons to 66,379 tons.  Imports of LLDPE dropped from 255,430 tons in 2021 to 238,186 tons which were sourced mostly from West Europe, including France, the Netherlands and Germany. 

Polish PE Exports (unit-kilo tons)

Type

Jan-Apr 23

Jan-Apr 22

LDPE

16.416

20.720

LLDPE

6.846

6.847

HDPE

64.740

87.593

EVA

2.048

0.946

EAC

3.992

7.871

Other

1.371

1.751

Total

95.412

124.950

Av price € per ton

1474.6

1643.6

Polyethylene exports from Poland have also dropped this year.  Overall imports decreased from 124,950 tons in the first four months in 2022 to 95,412 tons in the same period in 2022, with average prices dropping from €1643.5 to €1474.6.  HDPE was Poland’s largest export grade amounting to 64,740 tons in the first four months against 87,593 tons in January to April 2022. 

Polish polypropylene production & trade Jan-Apr 2023

Polypropylene production at Plock dropped from 119,300 tons in January to April 2022 to 92,500 tons in the first four months this year.  Overall, the supply/demand balance for Polish polypropylene dropped from 365,000 tons in the first four months in 2022 to 278,900 tons in the same period this year.

Polish PP Imports (unit-kilo tons)

Type

Jan-Apr 23

Jan-Apr 22

PP homo

170.390

232.274

Polyisobutylene

1.072

1.893

Propylene copolymers

93.067

113.574

Other

5.869

6.353

Total

270.399

354.094

Av price € per ton

1551.6

1839.8

Imports of polypropylene into Poland dropped from 354,094 tons in the first four months in 2022 versus 270,399 tons in the same period in 2023, with average prices dropping from €1839.8 to €1551.6 per ton.  Homo grade imports dropped from 232,274 tons in the first four months last year to 170,390 tons. 

Poland imported 609,740 tons of polypropylene homo grade in the whole of 2022 for a total value of €1027.5 million.  Homo grade PP imports into Poland dropped from 727,232 tons in January to December 2021 partly due to higher production at Plock. 

Copolymer imports into Poland fell from 113,574 tons in the first four months in 2022 to 93,067 tons in the same period this year, with costs dropping to €154.463 million against €227.539 million in the same period in 2022.  Germany was the largest supplier of propylene copolymers to the Polish market in 2022 transporting 82,907 tons for €156.748 million.  In the first four months in 2023 Germany supplied 27,866 tons of copolymers to the Polish market for €46.858 million. 

Polish PP Exports (unit-kilo tons)

Type

Jan-Apr 23

Jan-Apr 22

PP homo

51.738

74.565

Polyisobutylene

0.237

0.050

Propylene copolymers

27.764

32.672

Other

2.564

1.144

Total

82.302

108.430

Av price € per ton

1486.5

1775.8

Supply sources this year have changed as Russian imports have disappeared from the market.  In 2021 Poland imported 155,805 tons of polypropylene homo grade from Russia for a total grade €198.656 million.  Shipments from Russia accounted for 21% of total Polish imports in 2021 but dropped to 8.5% in 2022.  Russia provided 51,179 tons of homo grade to Poland in 2022 for €75.955 million, but there has been no trade this year or expected in the foreseeable future. 

Polish PP Supply/Demand Balance

(unit-kilo tons)

 

Jan-Apr 23

Jan-Apr 22

Production

92.5

119.3

Exports

82.39

108.4

Imports

267.2

354.1

Market Balance

280.6

365.0

Polish exports of polypropylene dropped from 108,430 tons in the first four months in 2022 to 82,302 tons in the same period in 2023.  Average prices for exports amounted to €1486.5 per ton in the first four months which was down from €1775.8 per ton last year.

Overall consumption of polypropylene in Poland amounted to 280,600 tons in the first four months against 365,000 tons in the same period in 2022.

Czech polyolefin consumption 2023

Czech consumption of polyethylene amounted to 78,504 tons in the first quarter in 2023 against 78,005 tons in the same period in 2022, whilst polypropylene consumption dropped from 129,307 tons to 118,680 tons.  In contrast to the Czech polyolefin market where polypropylene is the dominant polymer Polish polyolefin consumption is dominated by polyethylene. 

 

Czech polyethylene trade Jan-Apr 2023

 

Czech Polyethylene Exports (unit-kilo tons)

Product

Jan-Apr 23

Jan-Apr 22

LDPE

8.097

10.961

LLDPE

1.150

1.322

HDPE

113.399

123.307

EVA

1.154

1.241

Other

3.803

4.541

Total

127.602

141.371

Av price € per ton

1453.6

1677.4

Czech exports of polyethylene amounted to 127,602 tons in the first four months in 2023 from 141,371 tons in the corresponding period in 2022, with average prices falling from €1677.4 per ton to €1453.6.  HDPE represents the largest category of Czech polyethylene falling from 123,307 tons to 113,399 tons.  Lacklustre demand has been one of the main drivers of lower polyethylene prices this year.

Czech Polyethylene Imports (unit-kilo tons)

Product

Jan-Apr 23

Jan-Apr 22

LDPE

35.110

43.318

LLDPE

7.065

7.515

HDPE

38.900

43.393

EVA

3.386

2.917

Other

13.755

13.491

Total

98.216

110.633

Av price € per ton

1717.1

1947.0

Imports of polyethylene into the Czech Republic dropped from 110,633 tons in the first four months in 2022 to 98,216 tons in 2023.  Average prices dropped from €1947.0 per ton to €1717.1 per ton.  HDPE imports dropped from 43,393 tons to 38,900 tons, whilst LDPE imports decreased from 43,318 tons to 35,110 tons. 

Polypropylene exports from Orlen Unipetrol dropped in the first four months from 106,564 tons in 2022 to 100,797 tons in 2023. Values dropped from €190.5 million to €155 million.   The largest market for Czech polypropylene exports in the first four months in 2023 was Poland, taking 10,820 tons followed by Germany with 10,398 tons. 

Czech Polypropylene Exports (unit-kilo tons)

Product

Jan-Apr 23

Jan-Apr 22

PP

81.325

88.210

Propylene Copolymers

17.023

17.603

Other

2.449

0.750

Total

100.797

106.564

Av price € per ton

1530.66

1788.09

Czech Polypropylene Imports (unit-kilo tons)

Product

Jan-Apr 23

Jan-Apr 22

PP

93.937

106.400

Propylene Copolymers

71.625

68.054

Other

5.129

5.728

Total

170.692

180.183

Av price € per ton

1672.6

1881.1

Polypropylene imports into the Czech Republic amounted to 170,692 tons in the first four months this year against 180,183 tons in the same period in 2023, with average prices falling from €1881.1 per ton to €1672.6 per ton.  Copolymer imports increased from 68,054 tons to 71,625 tons whilst homo polymer imports dropped from 106,400 tons to 93,937 tons.  Total costs for polypropylene imports totalled €285.491 in January to April 2023 against €338.539 million in the same period in 2022.

Slovnaft polypropylene production 2023

Slovnaft produced 75,440 tons of polypropylene in the first quarter in 2023 against 72,672 tons in the same period in 2022.  Homo grade accounted for over 90% of polypropylene production.  Poland is one of the major destinations for Slovak exports of polypropylene. 

The company is currently investing in the expansion and modernisation of polypropylene production with Linde undertaking the project.  The capacity will be increased to 300,000 tpa from 267,000 tpa.  The revamp will enable Slovnaft to meet rising demands from the polyolefin processing industry.   A further 16 storage silos will be added to the current 45.

Regarding propylene supply Slovnaft commissioned McDermott to expand the cracker.  McDermott will provide comprehensive services and leverage its strategic agreement with Lummus Technology, the licensor of the steam cracker unit.

 

Hungarian polyethylene trade Jan to March 2023

 

Hungarian polyethylene Imports (unit-kilo tons)

Product

Jan-Mar 23

Jan-Mar 22

LLDPE

7.296

4.352

LDPE

12.279

15.106

HDPE

21.253

24.445

EAO

1.831

3.209

EVA

0.948

1.620

Other

7.302

4.598

Total

50.910

53.330

Hungarian imports of polyethylene dropped from 53,330 tons in January to March 2023 to 50,910 tons in the same month this year.  LDPE imports dropped from 15,106 tons to 12,279 tons whilst HDPE dropped from 24,445 tons to 21,253 tons in January to March this year.

Hungarian polyethylene exports (unit-kilo tons)

Product

Jan-Mar 23

Jan-Mar 22

LLDPE

1.870

0.967

LDPE

25.869

17.952

HDPE

59.904

45.927

EAO

0.090

0.031

EVA

0.034

0.025

Other

3.328

9.762

Total

91.094

74.664

Av price € per ton

1343.3

1474.0

Import costs dropped from €97.276 million for polyethylene imports in January to March 2022 to €88.685 million in January to March this year, with average prices dropping from €1824 per ton to €1742 per ton.  Hungarian export prices dropped from €1474 per ton in January 2022 to €1343 per ton.  Prices have fallen this year due above all to lower demand but also due to flatlining crude numbers.

Export volumes from Hungary amounted to 91,094 tons in the first quarter this year versus 74,664 tons in January to March 2022.  HDPE exports increased from 45,927 tons to 59,904 tons and LDPE increased from 17,952 tons to 25,689 tons.  The rise in polyethylene exports this year has taken place despite the slight decline in production by MOL at Tiszaujvaros.  Exports have been aided by lower demand in the domestic market whereby consumption dropped from around 136,000 tons in the first quarter last year to around 102,000 tons in the same period in 2023.

 

Hungarian polypropylene trade Q1 2023

 

Hungarian polypropylene exports (unit-kilo tons)

Product

Jan-Mar 23

Jan-Mar 22

PP homo

34.228

31.454

Propylene copolymers

24.222

29.141

Others

4.727

10.102

Total

63.177

70.697

Av price € per ton

1408.3

1657.9

Hungarian Polypropylene Imports (unit-kilo tons)

Product

Jan-Mar 23

Jan-Mar 22

PP homo

28.757

33.635

Propylene copolymers

14.643

17.403

Others

5.842

7.678

Total

49.241

58.716

Av price € per ton

1611.0

1790.0

Propylene copolymer imports into Hungary amounted to 14,643 tons in January to March this year versus 17,403 tons in the same period in 2022, whilst polypropylene homo grade inward shipments dropped from 33,635 tons to 28,757 tons.  Overall imports of polypropylene dropped from 58,716 tons in the first quarter last year to 49,241 tons in the same period last year.  Due to softening prices import costs dropped from €105.111 million to €79.332 million in January to March 2022.

Hungarian polypropylene exports in the first quarter amounted to 63,177 tons against 70,697 tons in the same period in 2022.  Export revenues amounted to €88.974 million against €117.209 million last year.    

By volume Hungarian homo grade polypropylene exports rose to 34,228 tons from 31,454 tons.  Copolymer exports dropped from 29,141 tons to 24,222 tons.  Overall average prices dropped from €1658 per ton to €1408.

In terms of consumption Hungarian trends in polyolefins reflect the broader European picture of recessionary factors.  Polyethylene recovered slightly in the first quarter against the declines of the third and fourth quarters last year but still remained lower than in Q1 2022.  Polypropylene consumption did not recover in the first quarter and demand remains low. 

 

HIP-Petrohemija polymer exports Jan-Mar 2023

 

Serbian Chemical Exports (unit-kilo tons)

Product

Jan-Mar 23

Jan-Mar 22

Polyethylene

29.5

30.1

Polypropylene

3.0

4.5

HIP-Petrohemija exported 29,547 tons of polyethylene in the first quarter in 2023 against 30,117 tons in the same period in 2022.   From 9 June NIS increased its stake in Petrohemija to 90%, while the state of Serbia has a stake of 10%.  NIS is planning the construction of a polypropylene production plant at Petrohemija with a capacity of at least 140,000 tpa, to be constructed within six years.

HIP Petrohemija-NIS integration

Serbian production of polypropylene can no longer keep up with the development of the construction industry, which has created the opportunity for constructing a new plant.   The increased in the share ownership of NIS in Petrohemija from 20.86% to 90% in June this year came with obligations of monetary recapitalization in the amount of €150 million and the construction of the PP plant.   The integration of Petrohemija and NIS represents a fundamental necessity in order that both refining and petrochemicals can coexist and benefit from internal cost advantages.  From the commercial angle the integration with NIS is aimed at enabling Petrohemija to be much more flexible with challenges ahead in the current uncertainties in European petrochemicals.  The political problem is that NIS is majority owned by Gazprom Neft, and it is not clear how Russian ownership of assets will be affected in the future. 

Synthos-expansible polystyrene market 2023

Sales of insulation materials by Synthos fell by 22,000 tons in the first quarter this year against the same period in 2022.   The revenues decreased significantly due to the decrease of selling prices after movement of monomer quotation and decrease of volumes.

Synthos is the largest producer of expandable polystyrene in Central Europe but has come been confronted against weak demand in the first quarter this year following the significant fall in Q4 2022 as construction market experienced a difficult environment. 

The second half of 2022 was particularly affected by low demand as nearly all factors which affect construction demand were negative.  The market is expected by Synthos to continue to be driven by the negative outlook for the new residential and residential renovation sectors although civil engineering is looking still positive.

Hungarian synthetic rubber trade Jan to March 2023

Hungarian synthetic rubber imports (unit-kilo tons)

Product

Jan-Mar 23

Jan-Mar 22

Butadiene Rubber

15.681

12.133

HBR

2.634

4.690

SBR

11.511

6.493

Other

8.432

14.308

Total

38.259

37.625

Hungarian synthetic rubber imports (€ million)

Product

Jan-Mar 23

Jan-Mar 22

Butadiene Rubber

36.073

21.994

HBR

6.850

11.284

SBR

28.301

12.876

Other

22.281

31.887

Total

93.505

78.042

Av price € per ton

2.444

2.074

Hungarian imports of synthetic rubber amounted to 38,259 tons in the first quarter this year for total costs of €93.505 million against 37,625 tons in January to March 2022 for total costs of €78.042 million.  Average costs per ton rose in the first quarter to €2444 against €2074 per ton last year.

Regarding export activity, shipments from Hungary amounted to 14,070 tons in January to March this year for revenues of €42.576 million.  Exports of SBRs amounted to 7,934 tons for €26.844 million, supplied from MOL’s plant at Tiszaujvaros, and for butadiene 2,926 tons for €6.342 million. 

Halogenated butyl rubber (HBR) exports from Hungary totalled 1,977 tons for €6.239 million, whilst imports totalled 2,634 tons for revenues of €6.850 million.  Import sources of HBRs were dominated by Russia which supplied 1,714 tons in the first quarter.  Although the sanctions on Russian HBRs to the EU were imposed in July last year the rules were amended in February 2023 when earlier sanctions on synthetic rubber were extended to June 2024.     

 

Hungarian butadiene rubber imports Jan-Mar 2023

 

Hungarian butadiene rubber Imports (unit-kilo tons)

Product

Jan-Mar 23

Jan-Mar 22

Indonesia

8.594

0.098

Russia

0.605

5.379

Others

4.862

6.656

Total

14.061

12.133

Hungary imported 14,061 tons of butadiene rubber in January to March this year against 12,133 tons in January to March 2022.  The main change to market sources in recent months has come from Indonesia from where Hungary imported 8,594 tons in the first quarter.  Costs of purchases from the Indonesian producer Chandra Asri Petrochemical amounted to €21.989 million from the total import costs for the month which were €33.796 million. 

 

Imports of butadiene rubber from Russia amounted to 1,612 tons in January to March this year versus 5,379 tons in the same period last year.  EU sanctions on butadiene rubber trade with Russia, introduced in July last year, have since been loosened under the pressure of European tyre manufacturers but this has not led to much of a revival of purchases from Russia.

 

Synthos production at Oswiecim Jan-Apr 2023

Synthos Production in Poland (unit-kilo tons)

 Product

Jan-Apr 23

Jan-Apr 22

 Polystyrene

23.6

24.7

 EPS

31.6

34.0

 Synthetic Rubber

81.1

97.1

Synthos reduced the production of synthetic rubber from 97,100 tons in the first four months to 81,100 tons in the same period in 2023.

Sales volumes of rubbers for the Synthos Group, including Oswiecim, Schkopau and Kralupy plants, fell in the first quarter by 28,000 tons compared to the same quarter in 2022.  The fall was due predominantly to lower ESBR sales and also lower export sales to Asia.  Exports to Asia were made more difficult following energy price increases in Europe. 

The gap between operating costs and revenues for Synthos narrowed in the synthetic rubber division in the first quarter in 2023, after the significant drop in the fourth quarter last year.  The group was able to record a small but positive operating profit in the first quarter.

 

Rubber Division Synthos Financial Performance (€ million)

 

Jan-Mar 23

Jan-Mar 22

Revenues

328.982

344.877

Production costs

319.248

324.795

Operating Profit

10.177

18.443

Revenues have not changed significantly but the structure is undergoing change with the close of the ESBR plant in the Czech Republic and the restart of the butadiene rubber plant at its Schkopau facility in east Germany.  The butadiene rubber plant was restarted in March partially replace the Russian product which has been sanctioned.  However, tyre manufacturing involves a wider spectrum of grades, many of which are produced mainly in Russia and some grades will be difficult to replace. 

Synthos announced in March that it intended to close the Kralupy plant by the end of the second quarter.  ESBR production is continuing at the Oswiecim plant in Poland.  Even in the first half of 2022, the Kralupy unit was still running at full speed and making money.  However, due to several times higher gas costs, Synthos was no longer able to compete on non-European markets.  More than half of the production was sold in the US and Asia where competitive prices made it very difficult to sell at profitable levels. 

Polish synthetic rubber trade, Jan-Apr 2023

Polish Synthetic Rubber Imports (unit-kilo tons)

Product

Jan-Apr 23

Jan-Apr 22

ESBR

9.439

5.047

Block SBR

9.299

15.917

S-SBR

9.124

4.395

Butadiene Rubber

21.397

14.859

Butyl Rubber

2.419

1.466

HBR

4.255

5.187

NBR

1.701

4.816

Isoprene Rubber

3.752

13.765

EPDM

14.661

16.599

Others

14.622

19.248

Total

90.669

101.300

Av price € per ton

2,155.2

2,365.9

Average prices for synthetic rubber imports into Poland dropped in the first four months to €2155.2 per ton against €2365.9 per ton.  Imports of synthetic rubber into Poland amounted to 90,669 tons in January to April 2023 against 101,300 tons in the same period in 2022. 

Butadiene rubber imports rose from 14,859 tons to 21,937 tons and EPDM imports dropped from 16,599 tons to 14,661 tons.  Synthetic rubber exports from Poland totalled 92,872 tons in the period January to April 2023 versus 111,179 tons in the same period last year.  SBR formed the largest share of exports. 

Czech synthetic rubber market Jan-Apr 2023

Czech Exports of EBSR

 

Jan-Apr 23

Jan-Apr 22

Kilo tons

11.850

25.705

€ million

20.825

45.827

Average price

1757.4

1782.8

Prices for synthetic rubber exports and imports of both synthetic and natural rubber have stabilised since the start of 2023.  Prices for Czech exports of synthetic rubber tend to be lower than import prices due to different product grades, with export prices in April consolidating at €1858 per ton and import prices at €2239 per ton.  Natural rubber prices tend to range at the lower end of synthetic rubber prices but are influenced by different market dynamics. 

Exports of synthetic rubber into Czech Republic amounted to 55,827 tons in the period January to April 2023 against 67,559 tons in the same period last year.  Imports of synthetic rubber amounted to 42,086 tons in the first four months in 2023 against 50,141 tons in January to April 2022, with natural rubber imports rising slightly from 28,011 tons to 29,066 tons.   

Imports of synthetic rubber from Russia into the Czech Republic dropped from 10,973 tons in the first four months in 2022 (for €20.282 million) to 2,337 tons (for €4.264 million).   The largest category of imports from Russia this year was for SBR grades where volumes amounted to 1,169 tons.  Butadiene rubber imports from Russia amounted to 877 tons against 4,698 tons in the same period in 2022, whilst imports of halogenated butyl rubber fell to 102 tons from 1,928 tons in January to April 2022. 

Czech exports of ESBR dropped in the first four months this year to 11,850 tons against 25,705 tons in the same period in 2022.  The plant was closed in April and will not produce in future.  Prices per ton for ESBR dropped slightly from €1782.8 to €1757.4, but according to Synthos production costs have risen to levels where the Kralupy plant is not able to be profitable.   

 

Czech butadiene rubber trade Jan-Apr 2023

 

Czech Trade in Butadiene Rubber (unit-kilo tons)

 

Jan-Apr 23

Jan-Apr 22

Exports

36.912

37.009

Imports

7.894

9.818

 

   

Czech Trade in Butadiene Rubber (€ million)

 

Jan-Apr 23

Jan-Apr 22

Exports

67.846

70.220

Imports

21.365

18.945

Czech exports of butadiene rubber comprised 36,912 tons in the first four months in 2023 against 37,009 tons in the same period in 2022.  Revenues from butadiene exports dropped from €70.220 million to €67.846 million.  Imports of butadiene rubber amounted to 7,894 tons in the first four months which was down from 9,818 tons in the same period in 2022. 

The largest customer for Czech butadiene rubber is India which took 5,418 tons in the first four months in 2023 against 7,412 tons last year.  South Korea purchased 4,686 tons in the first four months, rising from 2,168 tons.  The largest European consumer for butadiene rubber produced by Synthos at Kralupy was Poland taking 4,888 tons followed by Slovakia with 3,915 tons. 

 

Polish aromatics trade Jan-Apr 2023

Polish Imports of Aromatics (unit-kilo tons)

Product

Jan-Apr 23

Jan-Apr 22

Ethylbenzene

42.477

38.864

Paraxylene

0.000

20.389

Phenol

29.132

40.001

Phthalic Anhydride

9.007

10.432

PTA

2.226

0.823

Styrene

26.981

34.365

TDI

22.447

26.486

Toluene

7.232

7.651

Phenol imports into Poland amounted to 29,132 tons in the first four months in 2023 against 40,001 tons in the same period last year.  Supplies from Russia were sanctioned by the EU and from August no deliveries were made to Poland.   Germany was the largest supplier of phenol to Poland in the first four months, shipping 21,668 tons.

The European phenol market has continued to be affected by lukewarm demand from derivative product sectors.  Lower energy costs have to date not translated into improved demand for phenol.  Moreover, some downstream markets, including BPA (bisphenol A) with derivatives and the polyamide chain, were additionally under the pressure of imports from outside of Europe.

In other aromatic product areas, styrene imports into Poland amounted to 26,981 tons in the period January to April 2023 versus 34,365 tons in the same period in 2022 whilst ethylbenzene imports rose from 38,864 tons to 42,477 tons.  Nearly all of the ethylbenzene imports come from the Czech Republic. 

Poland exported 46,439 tons of benzene in the first four months for €39.634 million.  Average prices dropped from €1019.4 per ton to €849.8.  Germany was the largest destination for Polish benzene exports, taking 35,312 tons against 38,701 tons in the same period in 2022.  Exports of benzene from Poland to the Czech Republic dropped from 19,072 tons in January to April last year to 9,885 tons.

 

Paraxylene imports into Poland were not required by Poland in the first four months against imports of 20,839 tons in the same period in 2022. 

 

Polish PTA sales  and production Jan-Apr 2023

Polish PTA Production and Trade

 

Q1 23

Q1 22

Production (kilo tons)

107.0

171.0

Total Sales (kilo tons)

98.0

169.0

Total Revenues (€ million)

83.4

149.9

Exports (Kilo tons)

53.0

109.1

Export Revenues (€ million)

46.9

103.5

Polish Exports of PTA (unit-kilo tons)

Country

Jan-Apr 23

Jan-Apr 22

Belarus

0.426

2.156

Belgium

0.270

0.000

Germany

53.430

124.776

Lithuania

0.953

15.544

Switzerland

2.964

2.377

Turkey

2.002

1.496

Others

4.471

0.000

Total

64.516

146.348

Av Price € per ton

887.286

872.9

PTA production at Wloclawek at 66% of capacity in the first quarter due to weaker demand and extended maintenance.  In the first quarter this year PKN Orlen produced 107,000 tons of PTA against 171,000 tons in the same period in 2022.  As a consequence of lower production and sales, revenues from PTA dropped from €149.9 million in the first quarter in 2022 to €83.4 million in the first quarter this year.  Export revenues more than halved from €103.5 million to €46.9 million. 

The drop in PTA prices in the quarter view resulted from supply and demand factors. Despite production cuts, the availability of PTA on the European market remained adequate, fully covering limited demand, and a cheaper product imported from Asia was also available.

PTA exports from Poland amounted to 64,516 tons in the first four months in 2023 against 146,348 tons in the same period in 2022. 

Average prices for Polish PTA exports amounted to €872.9 per ton in 2022 against €887.3 in the same four-month period in 2023.   Exports to Germany fell from 124,776 tons in January to April 2022 to 53,430 tons in the same period in 2023. 

Central European caprolactam production and trade

Spolana Caprolactam Exports (unit-kilo tons)

Country

Jan-Apr 23

Jan-Apr 22

Belgium

0.840

2.539

Germany

0.198

3.203

Italy

4.187

5.715

Slovenia

1.129

2.675

Switzerland

0.983

0.933

Others

0.067

0.038

Total

7.404

15.103

Av Price € per ton

1915.8

2277.9

Caprolactam production in Poland has dropped since the middle of 2022 due to Azoty’s decision to try to reduce losses by continued plant activity.  Spolana has also lowered production this year which meant that caprolactam exports from the Czech Republic fell in the first four months to 7,404 tons against 15,103 tons in the same period in 2022.  Average prices dropped from €2277.9 per ton to €1915.8 per ton. 

 

Market conditions across the entire product segment were shaped by demand and supply factors.  The European market has exhibited weak demand for both caprolactam and PA6, and despite lower energy costs it has been difficult for Azoty to produce at full capacity.  The average European contract price of liquid caprolactam fell by 10% and 15% quarter on quarter, while the average quarterly contract price of caprolactam on the broad Asian market went down 20% and 3% quarter on quarter. 

 

Imports of cheaper PA6 chain products, especially from Asia, further eroded demand for PA6 and caprolactam.

Czech aromatic trade Jan-Apr 2023

Czech Benzene Trade (unit-kilo tons)

Product

Jan-Apr 23

Jan-Apr 22

Exports

1.233

18.278

Imports

14.144

27.035

Czech Toluene Trade (unit-kilo tons)

Product

Jan-Apr 23

Jan-Apr 22

Exports

4.099

3.845

Imports

2.307

2.655

Czech exports of ethylbenzene amounted to 42,572 tons in the first four months versus 38,854 tons in the same period in 2022, whilst styrene jumped from zero to 5,050 tons.  Benzene exports were not undertaken in the first four months in 2023 against 18,278 tons in January to April 2022, whilst imports of benzene dropped to 14,144 tons from 27,035 tons. 

Czech Styrene Trade (unit-kilo tons)

Product

Jan-Apr 23

Jan-Apr 22

Exports

5.050

0.000

Imports

10.019

7.758

Unipetrol operates a benzene plant at Litvinov with a capacity of 250,000 tpa, whilst benzene is also produced in the Czech Republic by Deza at Valasske Mezirici.  Deza also owns Petrochemia at Blachownia at Kedzierzyn Kozle and possesses a combined capacity of 160,000 tpa for benzene and 25,000 tpa for toluene.  Exports of toluene from the Czech Republic amounted to 3,759 tons in the first four months this year.  

 

Polish solvent exports, Jan-Apr 2023

Acetone exports in the first four months this year amounted to 5,051 tons against 7,739 tons in January to April 2022. N-butyl acetate exports fell from 6,088 tons in January to April 2022 to 4,084 tons in the same period in 2023.  Germany was the largest destination for Polish butyl acetate exports last year, amounting to 8,999 tons followed by Italy with 3,763 tons. 

Monochloroacetic acid exports from Poland have been resumed this year after investment and totalled 10,220 tons in the first four months this year.  The plant is part of the PCC Group, located at Brzeg Dolny with a capacity of 42,000 tpa. 

Polish organic chemical trade Jan-Apr 2023

Polish Organic Chemical Trade

Exports

Jan-Apr 23

Jan-Apr 22

Vol (kilo tons)

415.4

597.9

Value (€ million)

540.8

819.5

Imports

Jan-Apr 23

Jan-Apr 22

Vol (kilo tons)

890.0

1078.0

Value (€ million)

1423.7

1777.0

Values and volumes for Polish trade in organic chemicals fell for both exports and imports in the first four months, as recessionary trends took effect.  

Import revenues dropped from €1.777 billion in the first four months in 2022 to €1.423 billion in the same period in 2022, whilst export revenues dropped from €819.5 million to €540.8 million.  Volumes for exports dropped from 597,900 tons to 415,400 tons whilst imports fell from 1078,000 tons to 890,000 tons. 

Ethylene glycol was one of the few products showing an increase in imports, rising in the first four months from 17,881 tons in the first four months last year to 32,624 tons in the same period in 2023. 

Belgium was the main supplier, providing 28,846 tons for €18.416 million.  Poland exported 6,138 tons of ethylene glycol in the first four months this year.  Diethylene glycol imports amounted to 10,169 tons in the first four months versus 10,227 tons. 

Polish Organic Chemical Imports (unit-kilo tons)

Product

Jan-Apr 23

Jan-Apr 22

Acetic Acid

12.803

15.938

Acetone

1.954

2.453

Adipic Acid

4.218

4.004

Butadiene

26.385

31.352

DEG

10.169

10.227

DINP/DOP

6.278

9.403

Ethyl Acetate

5.239

5.295

Ethylene Glycol

32.624

17.881

Ethylene Oxide

6.445

6.070

Isopropanol

3.210

3.657

Maleic Anhydride

4.222

4.513

Methanol

221.902

313.069

Propylene

40.363

64.361

Propylene Glycol

6.564

7.476

VAM

5.630

6.988

Methanol imports into Poland dropped from 133,557 tons in the first four months in 2022 to 87,071 tons in the same period in 2023, with volumes from Russia constrained by sanctions.   No further methanol imports from Russia are now legally possible into Poland, with the full sanctions taking effect from 18 June.   The impact is probably one of higher costs on consumers, but markets are being controlled by the war in Ukraine.

Polish solvent imports, Jan-Apr 2023

Acetic acid imports into Poland dropped from 16,205 tons to 12,927 tons in January to April 2023.  The main suppliers to the Polish market this year include the UK, which delivered 2,404 tons versus 4,912 tons in January to April 2022, and the US which increased shipments from 4,911 tons to 6,777 tons.  Average prices for acetic acid dropped from €1176 per ton.

Ethyl acetate imports into Poland fell slightly from 5,295 tons in January to April 2022 to 5,239 tons in the same period in 2023.  Supplies were diversified between Belgium, Germany, UK and the Netherlands.  Vinyl acetate imports into Poland decreased from 6,988 tons in January to April 2022 to 5,630 tons the same period in 2023.  

 

Hungarian organic chemical trade Q1 2023

 

Hungarian Maleic Anhydride Exports (unit-kilo tons)

Country

Jan-Mar 23

Jan-Mar 22

Austria

0.984

0.839

Germany

0.648

0.330

Italy

0.962

0.996

Poland

0.826

1.743

Others

1.828

2.962

Total

5.248

6.869

Av Price € per ton

1308.8

1927.3

Maleic anhydride exports from Hungary amounted to 5,248 tons in the first quarter in 2023 against 6,839 tons in the same period in 2022.  Most of the exports were delivered in liquid form to customers up to 500 km from the Szazhalombatta plant

Hungarian acrylonitrile imports (unit-kilo tons)

Country

Jan-Mar 23

Jan-Mar 22

Netherlands

3.871

6.504

Germany

1.500

0.166

Others

2.194

3.582

Total

7.565

10.251

Av price € per ton

2092.8

2196.1

Hungarian aniline imports (unit-kilo tons)

Country

Jan-Mar 23

Jan-Mar 22

Belgium

15.052

0.683

China

10.061

0.019

Czech Republic

18.016

29.177

Total

43.128

31.146

 Acrylonitrile imports into Hungary amounted to 7,565 tons in January to March this year versus 10,251 tons in the same period last year.  Average prices dropped from €2196.1 per ton against €2092.8 per ton in the first quarter in 2023.   The largest supplier of acrylonitrile to Hungary in 2022 was the Netherlands, accounting for 22,953 tons for €55.452 million.    The Netherlands reduced shipments in the first quarter to 3,871 tons from 6,504 tons.   

Aniline imports into Hungary amounted to 43,128 tons in January to March this year against 31,146 tons in the same period in 2022.  Imports of aniline from China amounted to 10,061 tons whilst other sources included Belgium which shipped 15,052 tons to BorsodChem against 683 tons last year. 

Imports from the BorsodChem Ostrava plant continue to be imported for MDI production in Hungary but dropped in the first quarter to 18,016 tons versus 29,177 tons.

Orlen Poludnie-propylene glycol

Orlen Poludnie has recently concluded the first year of operation of its BioPG plant, converting glycerol, into renewable propylene glycol (BioPG).  BioPG obtained from glycerin is bio-based and a highly demanded product used to produce polyester resins, polyurethanes, paints and de-icing solutions, solvents for the food industry.  It can also be used as an ingredient in deodorant sticks and toothpaste. Compared to fossil-based propylene glycol, BioPG reduces the CO2 footprint by at least 60% whilst offering the same product quality.

 

Orlen Poludnie utilised BASF’s commercially proven process technology and proprietary H9-66 catalyst.  The BioPG plant supports Orlen Group’s objective of achieving CO2 neutrality by 2050. With an annual capacity of 30,000 metric tons, Orlen Poludnie is the first Polish producer of propylene glycol aiming to meet 75% of the demand for the country's propylene glycol.

 

PCC Exol Q1 2023

PCC Exol's sales (unit-kilo tons)

Product Group

Jan-Mar 23

Jan-Mar 22

Surfactants for detergents and cosmetics

17.5

18.9

Surfactants for use in industry

9.0

8.7

     

PCC Exol's sales (€ million)

Product Group

Jan-Mar 23

Jan-Mar 22

Surfactants for detergents and cosmetics

27.1

29.4

Surfactants for use in industry

22.1

22.8

     

PCC Exol's Prices (€ per ton)

Product Group

Jan-Mar 23

Jan-Mar 22

Surfactants for detergents and cosmetics

1548.0

1554.4

Surfactants for use in industry

2457.0

2619.0

PCC Exol recorded lower sales in the first quarter in 2023 due to weak demand combined with oversupply of surfactants on the market.  The EBITDA profit of zl 32.9 million was down by 38.2% compared to zl 53.1 million in the first quarter of 2022, although the EBITDA was higher by 8.2% compared to zl 30.4 million in the fourth quarter of 2022.  In turn, the net profit amounted to zl 20.3 million and was lower by 48.1% than the first quarter of 2022.  Sales volumes were down by 17,500 tons compared to the first quarter of last year, although were higher than in the fourth quarter. 

PCC Exol produces in two locations, Brzeg Dolny and Plock.  The current production potential capacity is estimated at 139-144,000 tpa including approximately 104,000 tpa at Brzeg Dolny and approximately 35,000-40,000 tpa at Plock, depending on the product range. 

Grupa Azoty ZAK oxo markets

Grupa Azoty Chemicals Performance

Q1 2023

(€ million)

Total sales revenue

320.316

Operating costs

-355.855

EBITDA

-13.624

 

 

Q1 2022

(€ million)

Total sales revenue

543.364

Operating costs

-464.861

EBITDA

83.469

Overall Grupa Azoty’s chemical division reduced sales to €320.3 million in the first quarter against €543.4 million in the same period in 2022.  The EBITDA dropped from a profit of €83.5 million last year to a loss of €13.624 million this year. 

Regarding the plant at Kedzierzyn-Kozle, Grupa Azoty ZAK reduced sales revenues to zl 663 million (€147.7 million) in the first quarter.  Lower sales combined with higher costs resulted in a net loss of zl 169 million (€37.6 million) in the first quarter this year and an EBITDA margin of minus 20.1%.   The Oxoplast segment was the main factor that affected Grupa Azoty ZAK in the first quarter after European markets were complicated by the import of cheaper products plasticizers and oxo alcohols.   The EBITDA margin of the Oxoplast segment in the first quarter of 2023 was minus 14.4%.

A decline in the prices of plasticizer prices was enabled due to lower prices of propylene and natural gas, but demand remained stretched leading to oversupply in DOTP for Grupa Azoty ZAK.  The European market was dominated by much cheaper products of Korean and Turkish origin, using cheaper raw materials from Asia and shipped to Europe under conditions of steeply falling logistics rates.

Central European Isocyanates & polyols

Czech MDI Imports (unit-kilo tons)

Country

Jan-Apr 23

Jan-Apr 22

China

1.006

0.697

Belgium

3.186

4.352

Germany

1.609

4.070

Hungary

4.283

2.055

Netherlands

1.667

1.159

Others

0.265

0.205

Total

12.016

12.538

Av price € per ton

2728.6

2517.7

Central European MDI trade Jan-Apr 2023

MDI imports into the Czech Republic totalled 12,016 tons in the first four months in 2023 against 12,538 tons in the same period in 2022.  Hungary provided the largest share of imports at 4,283 tons followed by Belgium with 3,186 tons.  Average MDI prices rose from €2517.7 per ton to €2728.6 per ton. 

Polish MDI Imports (€ million)

Country

Jan-Apr 23

Jan-Apr 22

Germany

28.172

40.456

Netherlands

14.508

17.223

Hungary

28.424

38.416

Belgium

15.787

26.936

South Korea

5.071

1.008

Others

13.734

9.734

Total

105.697

133.772

Ktons

46.719

55.162

Av price € per ton

2262.4

2425.092

MDI imports into Poland dropped from 55,162 tons in the first four months in 2022 to 46,719 tons in the same period this year.  Hungary and Germany remain the two largest import sources, with overall average prices comprising €2262.4 per ton in January to April 2023 against €2425.1 per ton last year.  The main difference between 2023 and 2022 is that this year prices look to be heading lower.   

Hungarian MDI Exports

(unit-kilo tons)

Country

Jan-Mar 23

Jan-Mar 22

Czech Republic

1.673

2.266

Germany

5.234

5.568

Italy

2.831

1.469

France

2.936

2.212

UK

1.390

2.194

Poland

9.496

11.617

Romania

4.831

6.757

Turkey

1.867

4.480

US

0.000

15.069

Others

9.940

10.699

Total

40.199

62.330

Av price € per ton

2264.3

2479.9

Hungarian MDI exports dropped in January to March 2023 to 40,199 tons versus 62,330 tons in the same period in 2022.  Poland represented the largest destination with deliveries amounting to 9,496 tons, down from 11,617 tons, followed by Germany reducing purchases from 5,568 tons to 5,234 tons.  The most notable destination fall came from the US where shipments declined from 15,069 tons in January to March last year to zero this year.  MDI export prices dropped from €2479.9 per ton in the first quarter in 2022 to €2264.3 this year.  

Central European TDI trade Jan-Apr 2023

TDI exports from Hungary amounted to 62,717 tons in the first quarter in 2023 versus 80,972 tons in the first quarter last year, with average prices rising this year to €3110.9 per ton from €2593.1 per ton in January to March 2022.

Polish TDI Imports (€ million)

Country

Jan-Apr 23

Jan-Apr 22

Belgium

1.760

1.130

Germany

16.940

20.576

Hungary

35.542

39.326

Netherlands

3.302

5.200

Saudi Arabia

2.436

1.889

South Korea

5.330

0.000

Others

6.015

6.055

Total

71.325

74.175

Ktons

22.447

26.904

Av price € per ton

3177.5

2757.0

TDI exports to Turkey amounted to 9,648 tons in the first three months in 2023 against 10,911 tons last year whilst Italy reduced inward shipments from Hungary from 10,992 tons to 8,217 tons.  Polish imports dropped from 9,869 tons to 8,005 tons.  Belgium took 9,484 tons in January to March this year down from 12,814 tons, whilst Romania reduced purchases slightly from 3,873 tons 3,352 tons. 

Hungary remains the largest supplier of TDI to the Polish market, although volumes fell in value from €39.326 million in the first four months in 2022 to €35.542 million in the same period this year.   

Overall Polish TDI import costs declined from €74.425 million in the first four months in 2022 to €71.325 million.  Despite the fall in volumes from 26,904 tons to 22,447 tons average prices for TDI increased from €2757.0 per ton to €3177.5 per ton this year.   European demand for TDI is faced by recessionary trends and slowly declining feedstock costs.  In effect only global capacity constraints can help to sustain prices. 

Hungarian TDI Exports (unit-ktons)

Country

Jan-Mar 23

Jan-Mar 22

Austria

0.858

0.857

Belgium

9.484

12.814

Germany

2.492

3.945

Italy

8.217

10.992

Poland

8.005

9.869

Portugal

3.898

3.881

Romania

3.352

3.873

Spain

3.061

3.245

Turkey

9.648

10.911

Others

13.702

20.585

Total

62.717

80.972

Av price € per ton

3110.9

2593.1

The production capacity of Polish polyurethane producers is estimated at 210-220,000 tpa. The largest competitors in the Polish market include the CIECH Group, Eurofoam, MZCh Organika and Vita Polymers and CIS.  Another company is Purinova at Bydgoszcz which is both a manufacturer of polyurethane systems and polyester polyols.  The company produces an average of about 25,000 tpa of polyurethane systems and 65,000 tpa of polyester polyols.

Hungarian polyol imports Jan-Mar 2023

Hungarian polyol imports amounted to 13,255 tons in the first quarter this year against 7,709 tons in the same period in 2022. 

Belgium was the largest supplier in the first quarter this year, shipping 8,612 tons.  Major suppliers of polyols to Hungary in 2022 included China with 11,091 tons and the Netherlands with 10,746 tons. 

Hungarian Polyol Imports (unit-kilo tons)

Country

Q1 23

Q1 22

Austria

0.077

0.063

Belgium

8.612

0.778

China

1.450

1.589

Germany

0.879

0.898

Italy

0.101

0.045

Netherlands

0.735

2.025

Poland

0.737

1.102

Romania

0.343

1.071

Others

0.320

0.138

Total

13.255

7.709

MOL is currently constructing its new plant at Tiszaujvaros which should have probably been on stream now.  In June MOL fed propylene oxide into the pilot polyol plant and large-scale test production at the base is expected to start in the second half of 2023.  MOL is waiting for European markets to revive before starting production. 

Czech polyol imports Jan-Apr 2023

Czech Polyol Imports

 

Jan-Apr 23

Jan-Apr 22

Volume ktons

16.446

14.175

Value € million

44.463

38.386

Av price € per ton

2703.599

2708.031

Czech polyol imports amounted to 16,446 tons in the first four months in 2023 against 14,175 tons in the same period in 2022.  The major sources of imports came from Belgium, France and Germany.  Polyol import costs dropped in the first four months to €18.885 million from €21.437 million in January to February 2022 with average prices dropping from €2789.7 per ton to €2691.8 per ton.

Polish polyol imports Jan-Apr 2023

Polish Polyol Imports (unit-kilo tons)

Country

Jan-Apr 23

Jan-Apr 22

Belgium

5.901

11.205

China

3.590

0.360

France

1.847

0.000

Germany

10.017

11.175

Netherlands

8.655

4.193

Romania

4.943

12.584

Saudi Arabia

1.422

9.645

South Korea

5.788

0.000

Others

3.545

6.545

Total

45.708

55.707

Av price € per ton

2211.5

2625.9

Polish polyol imports amounted to 45,708 tons in the first four months in 2023 against 55,707 tons in the same period in 2022.  The major sources of imports came from Belgium, Germany and the Netherlands. 

Polyol import costs dropped in the first four months to €101.085 million from €146.280 million in January to April 2022 with average prices dropping from €2625.9 per ton to €2211.5 per ton.  The largest source of imports came from Germany in the first four months, amounting to 10,017 tons against 11,175 tons in the same period in 2022.

Polish exports of polyols from PCC Rokita amounted to 19,378 tons in the first four months this year against 19,519 tons in the same period in 2022, but prices dropped from €2905.5 per ton to €2285.5. 

Revenues from polyol exports dropped from €56.712 million in January to April 2022 to €46.525 million.  The largest destinations for Polish polyol export include Hungary, Italy and Denmark.

 

Central European methanol trade Jan-Apr 2023

Exports of methanol from Poland totalled 120,455 tons in the first four months in 2023 against 125,026 tons in January to April 2022.  Exports to Germany fell from 36,424 tons to 30,190 tons.  Ukraine has also started to purchase methanol from Poland taking 8,200 tons in the first four months in 2023. 

Other destinations include the Czech Republic where Polish exports dropped from 26,611 tons to 22,092 tons whilst deliveries to Austria dropped from 26,566 tons to 23,300 tons.   

Polish Methanol Imports (unit-kilo tons)

Country

Jan-Apr 23

Jan-Apr 22

Azerbaijan

4.981

0.000

Belgium

16.737

0.044

Finland

0.000

17.184

Lithuania

0.000

0.579

Germany

15.004

38.026

Netherlands

2.319

0.000

Norway

23.149

16.787

Russia

146.917

229.966

Venezuela

12.706

0.000

Others

0.097

0.287

Total

221.910

302.873

Av price € per ton

298.1

368.7

Imports of methanol into Poland totalled 221,910 tons in January to April 2023 versus 302,873 tons in the same period in 2022.   The average price for Polish imports comprised €298.1 per ton in the first four months against the average price of €368.9 per ton in January to April 2022.  

Russia reduced exports to Poland in January to April 2023 to 146,917 tons from 229,966 tons.   The EU embargo on Russian methanol took full effect from 18 June.  Norway shipped 23,149 tons in the first four months to Poland whilst Germany reduced exports to 15,004 tons from 38,026 tons.  Import prices averaged €368.7 against €298.1 per ton for exports.

Czech methanol Imports (unit-kilo tons)

Country

Jan-Apr 23

Jan-Apr 22

Germany

2.355

2.353

Norway

0.817

0.384

Russia

4.062

12.697

Poland

17.212

10.924

Others

1.440

0.445

Total

25.886

26.804

Av price € per ton

390.224

432.169

Czech imports of methanol amounted to 25,888 tons in the first four months in 2023 against 26,804 tons in the same period in 2022.  Russia accounted for 4,062 tons in January-April 2023 against 12,697 tons in 2022, followed by Poland which increased from 10,924 tons to 17,212 tons.  Average prices for methanol imports dropped from €432.169 per ton last year to €390.224 per ton.

Hungarian methanol imports (unit-kilo tons)

Country

Jan-Mar 23

Jan-Mar 22

Austria

0.490

0.553

Germany

7.067

1.237

Netherlands

7.411

2.090

Poland

2.818

1.210

Russia

0.000

10.763

Slovakia

3.005

6.468

Others

1.334

3.464

Total

22.226

25.784

€ per ton

467.608

441.828

Hungarian imports of methanol totalled 22,226 tons in January to March this year versus 25,784 tons in January to March last year.  Prices averaged €467.6 per ton in the first quarter this year against €441.8 per ton in the same period in 2022.  Imports from Russia were not undertaken in January to March this year against 10,763 tons in 2022. 

The drop in exports from Russia was due to war in Ukraine and the difficulties in shipping product by rail.   The disruption to rail shipments has also affected imports from Slovakia where volumes declined from 6,468 tons to 3,005 tons.

Ukrainian methanol supply

The Ukraine Support Task Force, managed by the Energy Community Secretariat, announced the delivery of a donation of 2,000 tons of methanol in May.  The product came from Equinor to the largest Ukrainian gas producer Ukrgasvydobuvannya (UGV), a subsidiary of Naftogaz Group.

 

Orlen-Pulawy plant acquisition?

 

Grupa Azoty's Financial Performance (€ million)

Q1 2023

Total

Total sales revenue

1901.126

Operating costs

-2079.912

EBITDA

-88.896

 

 

Q1 2022

Total

Total sales revenue

2756.721

Operating costs

-2500.461

EBITDA

295.957

PKN Orlen is considering the possible acquisition of Grupa Azoty Pulawy in order to gain a competitive advantage in the fertiliser industry in Central Europe.  On 6 June Grupa Azoty announced that a confidentiality document information between GA Pulawy, PKN Orlen and Grupa Azoty. in connection with the intention to commence talks regarding a potential acquisition by PKN Orlen. Grupa Azoty may be ready to sell some assets after a very difficult first quarter, although there may be some opposition to the deal going through.   Combining the Pulawy plant with Anwil at Wloclawek would increase Orlen's potential in this industry, and increasing the potential means that Orlen could compete on price.

Grupa Azoty first quarter losses in 2023

Grupa Azoty's Fertiliser Sector

 

(€ million)

Total sales revenue

884.550

Operating costs

-969.336

EBITDA

-31.060

 

 

Q1 2022

(€ million)

Total sales revenue

1423.865

Operating costs

-1262.123

EBITDA

180.563

Grupa Azoty recorded a loss in EBITDA of €31.060 million in the first quarter against a profit of €180.563 million in the same period in 2022.   Sales revenues in the fertiliser sector dropped from €1423.9 million in January to March 2022 to €884.6 million in the same period this year.   Revenues overall for Grupa Azoty dropped by 42.9% in the first quarter from zl 3.895 billion against zl 6.827 billion 827 million.  Grupa Azoty expects that the market situation to improve from the third quarter of this year.  The group is currently in talks with PKN Orlen on a new gas supply contract, the current one is valid until the end of September.  In April this year, Grupa Azoty's production of nitrogen fertilisers fell to 176,312 tons from 555,2023 tons a year earlier.

Ciech Jan-Mar 2023

Ciech Financial Performance (€ million)

 

Jan-Mar 23

Jan-Mar 22

Sales revenues

383.642

275.513

Cost of sales 

-325.098

-216.016

Gross profit/(loss) on sales 

58.543

59.497

Operating profit/(loss) 

21.546

29.128

Net profit/(loss)

12.638

23.056

Adjusted EBITDA 

48.100

50.863

Ciech’s results were slightly weaker in the first quarter than last year but still the group was able to report an EBITDA of €48.1 million against €50.9 million in the same period in 2022.  Revenues rose from €275.5 million to €383.6 million whilst production costs rose from €216.0 million to €325.1 million.  The operating rate of €21.546 million versus €29.128 million was considered to be solid considering the economic problems facing Europe at present. 

In terms of product revenues dense soda ash was the largest source of earnings in the first quarter, amounting to €128.683 million versus €88.915 million in the same period in 2022.  Light soda ash sales amounted to €27.512 million against €23.894 million whilst sodium bicarbonate sales rose from €14.300 million to €18.704 million.  In other product areas sales of pesticides dropped from €54.350 million to €35.077 million and polyurethane foam sales dropped from €21.677 million to €17.894 million. 

Ciech’s soda ash capacity in Poland stands at 1.450 million tpa, with another 610,000 tpa at Ciech’s plant in Germany and 540,000 tpa at Ciech Soda Romania.   Currently, Ciech's plant in Germany at Stassfurt is capable of producing up to 50,000 tpa of high-grade sodium bicarbonate, with an overall capacity of 110,000 tpa. 

Ciech Product Revenues (€ million)

 

Jan-Mar 23

Jan-Mar 22

Soda segment, including:

302.270

181.293

Dense soda ash

128.683

88.915

Light soda ash

27.512

23.894

Salt

28.055

14.494

Sodium bicarbonate

18.704

14.300

Energy

84.512

29.844

Calcium chloride

1.070

1.182

Other products

3.303

2.640

Agro products

35.077

54.350

Polyurethane foams

17.894

21.677

Sodium silicates

28.002

18.651

Glass packaging

7.249

4.059



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