Blog from April, 2018

DATE: 2018-03-24

China’s central province of Hubei has listed a total of 144 chemical plants that will be relocated or re-engineered before 2025, a step toward its goal of keeping production of toxic chemicals away from densely-populated areas.

Small and middle-sized plants are required to compete the relocation/re-engineering before 2020, according to a document released by Hubei provincial government in late December 2017. (Please see the complete list below)

Some 28 producers are rejecting the option to move their operations into chemical parks, according to a local government official, adding that their plants are at risk of permanent closure.

China's central government in September last  year ordered all provinces to work out a detailed plan on relocating plants of dangerous chemicals away from cities.

Source Icis News

DATE: 2018-04-13 

The successful start-up of the Saudi Methacrylates (SAMAC) plant in Saudi Arabia, was the main focus of the European methyl methacrylate (MMA) market, one that has been plagued by tightness since mid-2016.

The news of the successful start-up of the plant in Saudi Arabia was welcomed by MMA buyers, many of whom questioned what the impact will be on the global supply and demand balance.

The SAMAC facility is a joint venture between Mitsubishi Chemical Corporation (MCC) and Sabic, with a 50/50 spilt of the capacity between the two producers.

MCC said in a press statement that the facility will be a strategic asset, with the ability to supply the Asian, European, Middle Eastern and African markets.

European players expect European product to be displaced from the Middle Eastern, Turkish and African markets because of this.

An increase of Saudi imports are also expected in Europe, but this is largely dependent on market conditions globally and netbacks in other regions.

“It will certainly take the pressure off Europe, the prices we have seen in the last 12 months have been a disaster in the coatings and adhesive industry,” said one MMA buyer.

However, although the new plant will boost the global supply and demand balance, the market is still expected to remain tight for the first half of the year.

This is largely linked to the series of ongoing turnarounds globally, notably a lengthy stoppage for Lucite International in the UK. The market at this time is well prepared for the stoppage, with Lucite building inventory, and traders and buyers ordering additional spot volumes in advance.

Spot prices remain stable in the week ending 6 April, with the market calm and prepared with the turnaround progresses as planned.

However, April remains a key month for MMA players, with the market waiting with bated breath for the restart of the Lucite Cassel plant.

Demand in April is expected to pick-up, after a disappointing March, linked to unseasonably cold weather. Supply and demand fundamentals continue to drive contract talks, with March contract prices settling in the week ending 6 April.

The March contract settled at a rollover, with prices remaining at an historical high. April and second-quarter contract talks are ongoing, with discussions in the early stages for both. March prices settled at €2,965-3,070/tonne FD northwest Europe, a rollover from February.

MMA is used in the manufacture of acrylic sheet, surface coatings, emulsion polymers and adhesives.

Source Icis News

DATE: 2018-04-04

Saudi Methacrylates (SAMAC), a joint venture between Mitsubishi Chemical Corporation (MCC) and Sabic, have started commercial operations of its methyl methacrylate (MMA) and polymethyl methacrylate (PMMA) plants in Saudi Arabia, MCC announced in a press release on Wednesday.

The producer has completed performance tests and commenced commercial operations of both plants on 2 April 2018.

“SAMAC commenced test production and achieved in-specification production of both MMA monomer and PMMA last November, after which, first shipment of MMA to customers was made. It has been in the process of optimising operations since then,” the producer added.

The MMA plant has an annual capacity of 250,000 tonnes, using the Alpha technology, with ethylene as a feedstock.

The PMMA plant has a capacity of 40,000 tonne/year, with the joint venture agreement meaning a 50/50 split between the two chemical companies.

The news of the successful start-up of the plant has been eagerly awaited by global MMA and PMMA players, in a market that has been plagued with tightness since mid-2016.

“MCC will utilize SAMAC as a strategic supply base for markets in Asia, Europe, Middle East and Africa,” the producer added in the press release.

Material from the facility started to arrive in Europe in March, with product initially expected in late 2017.

There are currently a number of global turnarounds taking place, and a major overhaul for Lucite International at its Cassel, UK facility at its 200,000 tonne/year plant.

Lucite International are part of MCC, with the producer having a two-month maintenance stop in the UK from March- April.

Given the ongoing tightness in the market, steady growth in demand in line with GDP, and the number of current turnarounds, the successful start-up of the Saudi plant will be welcomed news to MMA buyers.

Source Icis News