Tag: Demand

Applied Analytics discusses potential improvements made possible with data and analytical measurements fed into improved mathematical models to produce a more proactive approach to control and better performance of sulphur recovery units, AMETEK Process Instruments explains the benefits of feed forward control, SICK reports on reliable continuous emission monitoring systems and WIKA introduces a new purge-free system to measure refractory temperature in the Claus reaction furnace.

This year appears to be determined to illustrate the limitations of forecasting. Projecting trend lines into the future, looking at expected completion dates for major projects and global economic projections are all worthwhile activities, and can provide valuable insights for business people, but any prediction is apt to be derailed by what one of our prime ministers supposedly once described airily as; “events, dear boy, events.”

Although North America is no longer the world’s largest sulphur exporter, it remains a major producer and consumer, and there are still significant exports and imports of sulphur into and out of the region.

China’s copper industry is facing difficulties caused by the coronavirus outbreak in the country. Prolonged factory closures, particularly in Hubei province, at the centre of the outbreak, as well as neighbouring Guangdong and Zhejiang, also badly affected, have caused a slump in demand for copper domestically as copper fabricators remain on extended closure. However, smelters have resisted cutting production. Daye Nonferrous, based in Huangshi at the centre of coronavirus outbreak, continues to operate at 80% of its 600,000 t/a capacity for 1Q 2020, according to the company, in spite of quarantine and transport restrictions which have reduced truck shipments to the smelter – Daye is reportedly still able to receive copper concentrate shipments via the Yangtze River to Huangshi port.

Kuwait is in the middle of a major overhaul and expansion of its refining capacity, as well as boosting LPG output and sour gas processing.

R. Kranenburg of Duiker discusses the latest applications of SCO units in refineries and petrochemical complexes. The SCO unit is typically integrated in the sulphur recovery unit and is intended for processing ammonia, while also treating the tail gases from the upstream SRU.

What a difference two months can make. When I came to write the editorial for the January/February issue, the talk was all about climate change and sustainable production in the wake of Australia’s bushfire crisis, but these days there appears to be only one story that it is obsessing the world, and that of course is the Covid19 pandemic. The focus of concern has pivoted in recent days and weeks away from China and east Asia, which seem – hopefully – to have weathered the worst of the storm so far, and across to Europe and North America, where some difficult weeks and perhaps months clearly lie ahead.

The end of winter each year is always a good time to reflect on the state of the fertilizer industry. This year was no exception with the usual flurry of fourth-quarter and full-year results for 2019 emerging mid-February. Less of a flurry, actually, more of an avalanche.

Canadian Press reports in December have highlighted concerns that the new tighter IMO rules on sulphur content of marine fuels, which came into force on January 1st, could lead to reduced demand for oil sands bitumen and syncrude. Canadian oil output has been steadily increasing over the past two decades, mainly due to expanded bitumen recovery, which now accounts for 50% of Canada’s 4.6 million bbl/d of oil production. However, the discount for Western Canadian Select bitumen blend crude prices versus North American benchmark West Texas Intermediate could almost double to $30/bbl in January, according to consultancy Wood Mackenzie, averaging US$23-24/bbl for most of 2020, as US and other refiners use less heavy, sour oil and switch to lower sulphur feeds to try and optimise low sulphur fuel oil (LSFO) production. However, reduced output from Canada’s competitors Mexico and Venezuela is currently helping to mitigate this. Oil sands producers with refineries or upgraders are expected to benefit as the new standards will increase demand for refined low-sulphur fuels. For example, Husky Energy has expanded its Lloydminster Upgrader to produce an extra 4,000 bbl/d of diesel, and reconfigured its Lima refinery in Ohio to use more heavy oil.

A New Year is typically a time for taking stock, for looking back at the year just gone, and thinking about the year to come. This year of course marks a bigger transition, from the 2010s to the 2020s. The past decade has been a volatile one, existing under the shadow of the global financial crisis of 2008-09, from which the world was still just emerging in 2010. Over the past decade, ‘quantitative easing’ has helped prevent deflation and driven a decade long stock market rally, but also kept both public and private debt levels high, as interest rates stay low. Weaning the global economy off QE has proved to be far more difficult than many anticipated.