Key pointers from this month’s issue

Central Europe

PKN Orlen completed the full takeover of Unipetrol in August, allowing the group to press ahead with its strategic programme over the next decade in petrochemicals.  The broader aim is to transform Poland’s chemical industry into a net exporter rather than importer.  MOL in Hungary has approved its project plans for polyether polyols, signing agreements with Thyssenkrupp. 

Propylene imports into Poland totalled 82,500 tons in the first five months in 2018, with Ukraine providing over 32,000 tons.  Grupa Azoty remains the largest consumer of imported propylene in Poland, used for the production of oxo alcohols, whilst PCC Rokita imports propylene for the production of propylene oxide.  PCC Rokita increased its net profit by 44% in the first half of 2018, with the chlorine division providing the main stimulus and polyols less profitable due to rising raw material costs.  The Romanian producer of polyols, Oltchim, also encountered difficulties from higher propylene costs in addition to ethylene oxide.  Notwithstanding, Oltchim still reported a threefold rise in net profits which similarly to PCC Rokita was driven by the success in choralkalis.   

Russian chemical production

Russian petrochemical production has continued to be steady this year, with output of the main monomers and polymers reflecting slight rises above 2017.  Propylene and benzene have seen the largest rises this year due to higher utilisation levels, whilst most of the mainstream polymers have shown smaller rises.  Ammonia production increased by 1 million tons in the first seven months in 2018, facilitating a significant rise in nitrogen fertiliser production.  Second quarter production data for main Russian chemical plants can be accessed at the Statistical Database at www.cirec.net. 

Russian chemical trade

Russia’s trade deficit in chemical products fell in the first half of 2018 to $10.2 billion from $10.9 billion in the same period in 2017.  The reduced deficit can be attributed to a number of factors such as increased domestic production in certain product areas and slow-moving activity in some sectors of chemical applications.  In polymers and rubber, Russia expects to increase export trade over the next few years as new capacity is introduced.  Much less change is expected in areas such as fine chemicals, etc. 

Russian chemical projects & competition

SIBUR had achieved 65% progress in construction of the DOTP plasticizer project at Perm by the end of August.  The new plant is expected to start in 2019 and is expected to have a major effect on the market for 2-ethylhexanol in Russia.  Gazprom neftekhim Salavat is planning to develop superabsorbents from acrylates which would extend the production from petrochemicals through to consumer products.   This tends to be the exception rather than the rule which helps to explain the huge trade deficit by value in chemical products for the Russian market.  New projects recently started in Russia, or in the process of commissioning include dimethyl ether plants by Aerosolex at Dzerzhinsk and Shchekinoazot in the Tula Oblast.  In Turkmenistan the new Kiyanly petrochemical complex on the Caspian coast started production in late August. 

Highlights from CIREC Monthly News, 17 September 2018

• Kazanorgsintez intends to increase polyethylene capacity

• SIBUR possible IPO to be decided upon soon

• 

• Metafrax second melamine plant to be constructed at Gubakka

• AEROSOLEX has opened a new high-purity dimethyl ether plant at Dzerzhinsk

• Shchekinoazot to launch a new methanol and ammonia plant

• Orlen commpletes takeover of Unipetrol

• Polish company PCC Rokita increases sales of chloralkali products in 2018

• Oltchim increases revenues from polyols in 2018

• MOL approves programme for investment in polyether polyols

• New 1 million tpa methanol plant for Volgograd

• Gazprom neftekhim Salavat to consider MTO complex to produce polyethylene and polypropylene

New topics will be discussed in the next issue of CIREC Monthly News.  Please visit Subscription for details on how to access the report and the online databases.

October news in detail, click on link to open article

Irkutsk Oil Company & gas-chemical project outline posted Monday, October 22, 2018

Russian butanol production, Jan-Aug 2018 posted Thursday, October 18, 2018

Russian phthalic anhydride production Jan-Aug 2018 & future prospects posted Thursday, October 18, 2018

Russian organic chemical trade, Jan-Jul 2018 posted Thursday, October 18, 2018

Russian TDI-MDI imports, Jan-Jul 2018 posted Thursday, October 18, 2018

Russian caustic soda market, Jan-Jul 2018 posted Thursday, October 18, 2018

Russian benzene production, Jan-Aug 2018 posted Tuesday, October 16, 2018

Russian benzene exports & domestic sales, Jan-Aug 2018 posted Tuesday, October 16, 2018

Russian synthetic rubber exports, Jan-Jul 2018 posted Tuesday, October 16, 2018

Russian methanol production, Jan-Aug 2018 posted Tuesday, October 16, 2018

Russian polyethylene, Jan-Aug 2018 posted Monday, October 15, 2018

Russian polypropylene production, Jan-Aug 2018 posted Monday, October 15, 2018

Russian PVC, Jan-Aug 2018 posted Monday, October 15, 2018

Russian paraxylene & PTA imports posted Monday, October 15, 2018

Russian Chemical Production (unit-kilo tons) posted Monday, October 15, 2018

Czech petrochemical exports,Jan-Aug 2018 posted Thursday, October 11, 2018

Czech petrochemical imports, Jan-Aug 2018 posted Thursday, October 11, 2018

Grupa Azoty-raw material purchases, gas, propylene, etc posted Thursday, October 11, 2018

ZAK makes last deliveries of phthalate based DEHP posted Thursday, October 11, 2018

SIBUR-butyl rubber project with Reliance in India to be completed in December posted Monday, October 08, 2018

Russia-Isocyanates & Epoxy Resins

Belarus-Organic Chemical Trade

Central Europe-Chemical Projects

 28.09.2018 Duslo opens new ammonia plant

28.09.2018 PDH Polska-bids for propylene and polypropylene project

28.09.2018 PCC-monochloroacetic acid expansion

28.09.2018 BorsodChem receives approval from EC for Hungarian support for new aniline plant