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Iran isn’t the only threat to oil market stability – Too much have been said in recent days about the impact of a new round of US sanctions on the Iranian oil sector – Iran crude oil market stability

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Iran isn’t the only threat to oil market stability

Iran crude oil market stability Too much have been said in recent days about the impact of a new round of US sanctions on the Iranian oil sector.
No doubt that any sanctions on Iran oil shipments will lead to higher oil prices, but Iran isn’t the only source of risk nowadays.
There are other OPEC members beside Iran who are of great concern to the market now as they all face political and technical risks that is affecting their production.
Venezuela is the big one followed by Libya and Nigeria. Angola is another OPEC country that is struggling to keep its output stable but it is getting less attention from the media and the international oil trading community.
So how far are these countries from a major supply disruption that will affect prices and the balance of the oil market?
It differs from one to another.Iran seems to be at the forefront because on May 12 US president Donald Trump is expected to decide whether to renew the oil sanctions waivers on Iran or impose sanctions on the country instead.
Assuming that President Trump opts for sanctions, it is expected that the country’s oil shipments to its major customers such as the EU, China, India, Japan, South Korea and Turkey will decline by half a million to 1.2 million barrels per day (bpd) based on various estimates from leading international banks.
Oil prices in this case would jump by another $5 to hover around $80 for the Brent benchmark. The effects of such a price level on market balance is yet to be seen as some analysts are expecting some disruption to demand while others say that demand will remain strong this year with oil at or below $80.
Turning to Venezuela, the political situation there is still unclear as the country will hold its presidential elections on May 20.

Even if Trump didn’t impose sanctions on Iranian oil exports, the risk for the market to turn into deficit in the second half of the year is high.

Wael Mahdi

Many countries are watching the elections closely and the US may impose sanctions on the country’s oil sector if the results are viewed as illegitimate. Yet the oil production situation in Venezuela is not good whatever happens on election day.
Crude output is in steep decline. According to OPEC’s secondary sources estimates, production averaged 1.54 million bpd in first quarter of 2018, down from 1.77 million in the fourth quarter of last year.
With no fresh investments and with many international oil companies fleeing the country (the last was Chevron after the arrest of two of its staff there), the situation there is headed to the unknown and some banks are expecting to see output at 1.2 million or even 1 million bpd by end of this year.
Libya, which has set a production target of 1.25 million bpd this year, is no better than Venezuela and others as its output is still fluctuating below 1 million bpd due to attacks on its oil facilities. Its officials, however, are still sending positive signals at every OPEC convention they attend.
Libyan officials are still asking for OPEC support and they still expect to see production ramping up higher although other ministers of OPEC and non-OPEC believe that the country won’t deliver more than 1 million bpd this year.
The impact of Libya and Venezuela on oil prices is also another $2 to $5 in the form of a risk premium, making $80 per barrel for Brent a high possibility.
The story of oil production in Angola, the second largest oil producer in West Africa, is getting less attention from the international oil community.This country is seeing steep decline in its production for some time and its shipments to China is reflecting that situation. Angola which was always among the top three suppliers of crude to China, has shipped 2.9 percent less crude to the Asian country in the first quarter compared to a year ago.
Angolan production in the first quarter of this year averaged 1.57 million bpd down from 1.64 million bpd in the fourth quarter of 2017.
Angolan crude oil is facing a hard time in Asia. Its crude is linked to Brent which is now at the highest level since 2014. Other crude that is linked to Dubai or WTI is becoming less expensive. Thus, Angolan oil exports will drop this month to the lowest in seven years according to loading programs.
So while OPEC and non-OPEC members of the Joint Ministerial Monitoring Committee (JMMC) were still talking about a small surplus in the market and expressing their concerns over the remaining overhang in inventories, the reality is different.
A supply deficit is looming and the source of this is OPEC countries.
The JMMC has reported that the compliance level of the 24 countries who are voluntarily cutting their production under a global agreement, was at a record high of 149 percent as of end of March.
Part of this is due to the deteriorating supply situation in countries like Angola and Venezuela, which is becoming worrying.
Even if Trump didn’t impose sanctions on Iranian oil exports, the risk for the market to turn into deficit in the second half of the year is high knowing that short-cycle investments in US shale oil production won’t help because there is not enough infrastructure in the US to carry and transport any increase in crude production from shale oil basins.
In the best case scenario, US shale oil producers can add another 200,000 to 300,000 bpd this year, but that is not enough to offset big declines from OPEC.
The only country that can produce more at the moment is Saudi Arabia, but with the summer months approaching and new supply agreements being signed with Poland and China, the pressure on Saudi oil fields will be immense. The country can easily add another one million barrels a day of crude oil this year but that will mean the end of the current production cuts agreement.The best solution may be to revise the deal in June when OPEC and its allies next meet in order to give some flexibility for members to raise production in case of a deficit.
But many ministers are still debating that $70 oil isn’t enough for investments so seeing oil at $80 maybe plausible to them. Others are saying that $60 to $70 is a good price for oil this year. Striking a balance between these two price ranges is not going to be an easy task.

  • Wael Mahdi is an energy reporter specializing on OPEC and a co-author of “OPEC in a Shale Oil World: Where to Next?” He can be reached on Twitter @waelmahdi
Disclaimer: Views expressed by writers in this section are their own and do not necessarily reflect Arab News’ point-of-view

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-Iran and the oil market – How Iran’s nuclear deal and a host of other factors are forging a new crude reality – Iran Crude Oil market

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-Who’s to blame for costly oil? Saudis, Russia and Trump himself – Rising oil prices are now the latest target in President Donald Trump’s cross-hairs. The nation’s tweeter-in-chief complained Friday about OPEC fueling – Blame costly oil Saudis Russia Trump

-Oil pulls back from gains; OPEC says glut nearly gone – Oil prices on Thursday hit highs not seen since 2014, built on the ongoing drawdowns in global supply and as Saudi Arabia looks to push prices higher, though U.S. crude gave back gains in the afternoon to finish lower – Crude Oil OPEC glut Saudi Arabia

-Escalating Middle East Tension Could Trigger Oil Prices To Hit $100 Per Barrel – Oil prices could soon soar to $100 per barrel amid growing fear about conflict in the Middle East, according to an oil analyst for CNBC – Oil Prices $100 Barrel

– IEA: OPEC Mission Near Completion as Oil Glut Vanishes – OPEC is on the verge of “mission accomplished” in its quest to clear the global oil glut that caused the worst industry downturn in a generation – IEA OPEC Crude Oil Glut

-Is Russia Cheating On The OPEC Deal? – After three months of steady output, Russia’s crude oil production increased in March to 10.97 million bpd, the highest level since April 2017, as the top two Russian companies boosted their production – Russia Cheating OPEC Deal

-Oil price crosses $70 amid Iran deal tensions – Oil prices rose as investors saw increasing possibility that the US could withdraw from the historic Iran nuclear deal – Crude Oil price dollars 70 Iran tensions

-Is $70 oil the new normal? – The global economy is poised to cope well even if oil prices will remain at around $70 per barrel throughout 2018, energy experts said – Dollars 70 barrel crude oil shale oil

-Will oil prices remain strong for the rest of the year? – The oil inventory trajectory anchors oil prices in the short term, and the cost of bringing on the marginal barrel of US tight oil supply serves as the medium-term anchor for prices – The oil inventory trajectory anchors oil prices in the short term, and the cost of bringing on the marginal barrel of US tight oil supply serves as the medium-term anchor for prices – Crude Oil prices

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5 Minutes Wth… Gerald Michael, global business manager at Synvina – The site that the company uses in Antwerp, Belgium, has a capacity of 50,000 metric tonnes of the bio-plastic that could well be the breakthrough, polyethylene furanoate (PEF) – Gerald Michael manager Synvina bioplastic

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5 Minutes Wth… Gerald Michael, global business manager at Synvina.

Source :

Gerald Michael manager Synvina bioplastic “Walking into a supermarket and buying a PEF-packed product is going to happen and I would like to see Synvina being the driving force behind this.

Established following a fusion between bio industry heavyweights, BASF and Avantium, Synvina is well positioned to create the next generation bio-based plastics. The site that the company uses in Antwerp, Belgium, has a capacity of 50,000 metric tonnes of the bio-plastic that could well be the breakthrough, polyethylene furanoate (PEF), and is dedicating itself to licencing the technology to other manufacturers so that industrial-scale production can become a reality.

Joining Bio-Based World News for this week’s 5 Minutes With… is the man tasked with trying to make this mission become a reality, Gerald Michael, Synvina’s global business manager. Gerald took time out of his busy day to explain the optimism that he has in PEF, the challenges behind their successful production and the latest sustainable plastics that he thinks could solve the single-use plastic crisis.

Dave Songer (DS): Hi Gerald, for those not in the know can you give me a description about what it is that Synvina does?

Gerald Michael (GM): Synvina is a young company with around 70 fantastic and diverse employees, founded as a joint venture between @Avantium and @BASF at the end of 2016. Our sole purpose is to bring a new molecule furandicarboxylic acid (FDCA) and its polymer PEF to the global market. We believe FDCA has the potential to be used in countless applications, but we especially feel that way about PEF because we see it as a break through innovation for the packaging market; it has significantly higher barrier properties in comparison to other plastics, with of course the added benefit of being bio-based and recyclable.

Gerald Michael manager Synvina bioplastic

GM: What do you enjoy most about being involved in the bio-based industry?

A big part for me is the vision, opportunity and drive I have seen in this industry. Globally we’re struggling with a whole range of environmental challenges, ranging from carbon dioxide emissions to waste management, but seeing the large number of ideas, the vision to tackle these challenges and being a small part of this drive towards a more sustainable future is energising. As is, of course, the fight to gain rather than to remain, which is always exciting.

GM: What is the biggest professional challenge you’ve faced?

Gerald Michael manager Synvina bioplastic I would say we’re still in the middle of it: developing the PEF value chain and bringing it to the market. Replacing a huge incumbent material with complex value chains and highly optimised production, while balancing scale-up, customers and regulation I can confidently describe as challenging. But that is also part of the fun.

GM: You have a rich history with BASF, how did working there help you with your current role?

BASF is so large and complex that if you want to be successful you have to collaborate with a number of partners; learn from them, collaborate and together as one team drive your idea. In that way BASF is a microcosm of our industry and having worked like that in the past is tremendously helpful now. Furthermore, learning from very experienced colleagues in several fields gives one many new perspectives and ideas.

GM: What advice would you give someone/start-up looking to get started in the bio-based industry?

Gerald Michael manager Synvina bioplastic I myself am quite new to the industry so at the risk of sounding hypocritical I would mention three aspects. Firstly, collaboration; today value chains and interactions are so complex it’s nearly impossible to achieve anything on your own and often by working with partners you might come onto new ideas and paths, which brings me to my second point: keep an open mind because sometimes the most unlikely and unexpected situations turn out to be the best. Finally, I would say persistence – be prepared that not everything goes as you would like it to, but I think that is the best learning experience.

GM: What project is Synvina currently working on, can you provide some details?

Synvina aims to commercially establish food and beverage packaging based on PEF. We have had already great success along the way. To just name one, we have received the interim approval by the European PET Bottle Platform for the recycling of PEF bottles. Of course, there is still some way to go but we’re also making excellent progress on flexible packaging with a lot of exciting things to come in the future.

GM: Where would you like to see @synvina in ten years’ time?

It is our aim to establish PEF in the market and to make it a real alternative to conventional plastics. Walking into a supermarket and buying a PEF-packed product is going to happen and I would like to see Synvina being the driving force behind this!

GM: You spoke at this year’s World Bio Markets – what did you speak about at the event and what did you most enjoy about the show?

Gerald Michael manager Synvina bioplastic I thoroughly enjoyed the variety of different ideas driving bio products and hearing a multitude of experiences and seeing how we can learn from them. Based on this I provided an update on our progress of introducing PEF to the market and the properties of our Biaxially-orientated PEF film.

GM: What is your favourite bio-based/sustainable product and why?

Outside of PEF, I find the biodegradable straws and one-time cups by Loliware ( @LOLIWARE ) truly visionary products. They’re based on algae and provide a functional solution to our plastic problem and I hope they can become the new norm for such plastics.

DS: Thanks so much for taking part this week, Gerald. All the best with your PEF efforts!


Read the last 5 minutes with… Jeremiah Dutton, Head of Sales at Trifilon.

If you would like to feature in the feature that every week puts a face to the brand and provides established businesses and start-ups the crucial advice they need in this industry, please email dave@biobasedworldnews.com

Related Topics

-Synvina extends PEF pilot phase – Amsterdam-based Synvina CV is planning to extend the pilot phase of its FDCA (furandicarboxylic acid) production by 24 to 36 months in order to “optimise” future commercial-scale production – Synvina PEF pilot phase

 What’s new in bioplastics? – 12th annual European Bioplastics conference discusses food brand owners’ use of bioplastics, biodegradable solutions for multilayer food packaging, and production of new polymer PEF – European Bioplastics conference EUBP

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PolyOne barrier technologies enable sustainability and recyclability in packaging – PolyOne Corporation , a leader in advanced technologies for packaging, today announced that its barrier additives are increasing sustainability and design freedom while extending shelf life and lightweighting options for packaging manufacturers – PolyOne barrier technologies sustainability recyclability packaging

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Recycling startups ink deals with virgin plastics makers – Recycling startups virgin plastics Indorama Ineos Styrolution Total

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Recycling startups ink deals with virgin plastics makers

by Jared Paben

Recycling startups virgin plastics Indorama Ineos Styrolution Total

The facility of Tigard, Ore.-based Agilyx, which processes polystyrene and recently entered a partnership with virgin plastics maker Ineos Styrolution.

Major prime plastics producers have recently made moves to embrace cutting-edge recycling technologies, including applying depolymerization to challenging plastics streams.

Virgin plastics makers Indorama, Ineos Styrolution and Total have announced deals in recent weeks with startups in North America and Europe tackling PET and PS.

The agreements come at a time of greater public awareness of the ocean plastics problem and more consumer and government pressure to ensure proper end-of-life management of plastic products. At the same time, a number of startups are commercializing new chemical recycling technologies that can overcome quality and contamination challenges, which limit end markets.

In chemical recycling processes, recovered polymers can be converted into their component monomers, which are then used as the basis for new polymer manufacture.

The following is a roundup of a few of the recent announcements.

Indorama’s interest

The world’s largest virgin PET producer, Indorama Ventures, has partnered with a global brand owner, Unilever, and a small Dutch startup, Ioniqa, to advance chemical recycling of PET.

Ioniqa, which is a spinoff from the Eindhoven University of Technology in the Netherlands, uses a patented magnetic catalyst in the process of depolymerizing PET. The approach allows for the recycling of any PET, including colored packaging and carpets, into clear food and drink packaging.

Ioniqa’s technology has passed the pilot stage and is now moving toward testing at industrial scale. The company recently announced that its demonstration facility, at the Port of Rotterdam, has completed its 50th test run. The facility is recycling PET bottles, trays and textiles.

The next step is building an industrial-scale plant capable of processing 10,000 metric tons per year. It’s on schedule to be ready in summer 2019, according to Ioniqa.

Through the partnership, the recovered monomers would be repolymerized by Indorama Ventures to create new PET. Among its worldwide holdings, Indorama has a plant in Rotterdam capable of producing up to 410,000 metric tons per year of PET.

“Our approach is not limited to our own operations, but we take the entire supply chain into account, including what happens to our products after use,” Aloke Lohia, group CEO of Indorama Ventures, stated in a joint press release. “We therefore look forward to working closely with Unilever and Ioniqa to leverage this state-of-the-art technology that contributes to tackling the global issue of waste and enables us to go beyond the role of a polymer manufacturer.”

Unilever is also working to support chemical recycling methods for recycling multi-layer flexible packaging. The company is testing a process of dissolving, separating and precipitating the PE content in packages at a facility in Indonesia.

Ineos Styrolution’s strategy

Meanwhile, virgin PS producer Ineos Styrolution has signed a deal with Tigard, Ore.-based Agilyx, which is using a chemical recycling process to recover styrene monomer from rigid and foam PS. The agreement, announced in late April, aims to site an Agilyx recycling unit at or near an Ineos production facility in North America. The styrene produced by the Agilyx unit would be fed into Ineos’s nearby production process.

Agilyx recently held an opening event for its first facility in Tigard, which is near Portland, Ore. That unit is capable of processing 10 tons per day.

The latest agreement is the second deal between Ineos and Agilyx. Last November, Ineos Styrolution entered a development agreement with Agilyx to help refine the technology so the end product best meets the needs of the manufacturer.

“We are eager to lay down the foundation for polystyrene to be recovered and recycled and build the ecosystem around chemical recycling,” Alexander Glück, president Americas of Ineos Styrolution, stated in a press release.

Also last November, Ineos signed a deal with a Pyrowave, an Ontario, Canada company that’s using microwaves to efficiently depolymerize PS to recover styrene.

Total’s partnership

Finally, petrochemicals and energy giant Total has signed a deal with Montreal-based Polystyvert, which uses a technology that dissolves EPS in essential oils before purifying and reforming the plastic. The method does not break the chemical bonds of the plastic, however.

Plastics Recycling Update wrote about the Polystyvert process in-depth in September 2016.

“The combination of Polystyvert’s innovative technology and Total’s know-how in industrial-scale dissolution and polymerization technologies should generate high-quality recyclates addressing a broad range of polystyrene market requirements,” according to a press release.

Last year, Total’s polymers business unit performed three successful test runs mixing recovered PS from Polystyvert into virgin plastic.

“Collaborating with Total on household waste will accelerate the industrial development of our technology for global markets and demonstrate its suitability to address any type of polystyrene stream,” Solenne Brouard, founder and CEO of Polystyvert, stated in the release.

To receive the latest news and analysis about plastics recycling technologies, sign up now for our free monthly Plastics Recycling Update: Technology Edition e-newsletter.

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A Sweet Alternative: Plastic Mailing Bags Made from Sugarcane – A new ‘greener’ plastic mailing bag has launched in the UK which has the potential to save CO2 emissions equivalent to a plane flying around the world over 10,000 times – Plastic Mailing Bags Made Sugarcane

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A Sweet Alternative: Plastic Mailing Bags Made from Sugarcane

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Turkey PE bottoms out as poor economic performance dampens sentiment – Turkish polyethylene (PE) prices are stable to down as demand falters following the continuing poor performance of the Turkish lira, according to sources this week – Turkey PE bottoms poor economic performance

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Turkey PE bottoms out as poor economic performance dampens sentiment

Source:ICIS News

Turkey PE bottoms poor economic performance

LONDON (ICIS)–Turkish polyethylene (PE) prices are stable to down as demand falters following the continuing poor performance of the Turkish lira, according to sources this week.

Repeated PE falls since February have left prices low in a weak economy.

Some players now think this is the bottom and that they are unlikely to move while the value of the lira continues to struggle.

Price stability is expected for the rest of May.

Middle East producers will begin limiting their working hours later in the month, and this will limit supply although this is expected to be balanced by poor demand.

Supply levels are ample and unlikely to weaken in the short term, so buyers are comfortable keeping purchases to a minimum.

Lack of confidence in the Turkish economy may mean that business will remain subdued, at all levels, in the coming months.

Low density polyethylene (LDPE) is currently very weak due to oversupply, and European sellers are taking advantage of the euro’s strength against the lira to sell competitively priced material into Turkey.

This has resulted in an oversaturated market and forced sellers from other regions to reduce their offers to compete.

High density polyethylene (HDPE) is the strongest of the grades and remains in balance due to slightly reduced supply.

Sellers have shifted high density production over to HDPE 100 pipe, as prices have been soaring in China.

However, poor demand in Turkey has balanced this.

HDPE 100 pipe prices have collapsed in Turkey as government buyers have ceased tendering for product, drastically reducing demand in the country, and prices have fallen as a result.

Iranian offers have been reduced due to ethylene shortages, but this has not affected pricing levels because demand is low and other sellers have made up for the deficit.

Turkey PE bottoms poor economic performance

PE is the most widely used plastic in the world, primarily found in packaging including plastic bags, plastic films and geomembranes.

Pictured: Lira notes and coins. The Turkish currency has sharply weakened against other major currencies
Source: Veronica Garbutt/REX/Shutterstock

By Ben Lake
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Polyethylene Terephthalate Resin From Brazil: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Postponement of Final Determination, and Extension of Provisional Measures – Polyethylene Terephthalate Resin Brazil

DOCUMENT DETAILS
PUBLISHED DOCUMENT

AGENCY:

Enforcement and Compliance, International Trade Administration, Department of Commerce.

SUMMARY:

The Department of Commerce (Commerce) preliminarily determines that polyethylene terephthalate resin (PET resin) from Brazil is being, or is likely to be, sold in the United States at less than fair value (LTFV). The period of investigation (POI) is July 1, 2016, through June 30, 2017.

DATES:

Applicable May 4, 2018.

FOR FURTHER INFORMATION CONTACT:

Elfi Blum-Page or Kathryn Wallace, AD/CVD Operations, Office VII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-0197 or (202) 482-6251, respectively.

SUPPLEMENTARY INFORMATION:

Background

This preliminary determination is made in accordance with section 733(b) of the Tariff Act of 1930, as amended (the Act). Commerce published the notice of initiation of this investigation on October 23, 2017.[1On February 22, 2018, Commerce postponed the preliminary determination of this investigation.[2]Commerce exercised its discretion to toll all deadlines affected by the closure of the Federal Government from January 20 through 22, 2018. If the new deadline falls on a non-business day, in accordance with Commerce’s practice, the deadline will become the next business day. The revised deadline for the preliminary determination of this investigation is now April 27, 2018.[3]

For a complete description of the events that followed the initiation of this investigation, see the Preliminary Decision Memorandum.[4A list of topics included in the Preliminary Decision Memorandum is included as Appendix II to this notice. The Preliminary Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at https://access.trade.gov, and to all parties in the Central Records Unit, room B8024 of the main Department of Commerce building. In addition, a complete version of the Preliminary Decision Memorandum can be accessed directly at http://enforcement.trade.gov/​frn/​.The signed and the electronic versions of the Preliminary Decision Memorandum are identical in content.

Scope of the Investigation

The merchandise covered by this investigation is PET resin from Brazil. For a complete description of the scope of this investigation, see Appendix I.

Scope Comments

In accordance with the preamble to Commerce’s regulations,[5the Initiation Notice set aside a period of time for parties to raise issues regarding product coverage (i.e., scope).[6For a summary of the product coverage comments and rebuttal responses submitted to the record for this preliminary determination, and accompanying discussion and analysis of all comments timely received, seethe Preliminary Decision Memorandum. After evaluating the comments, Commerce is preliminarily modifying the scope language as it appeared in the Initiation Notice to exclude PET-glycol resin. See the revised scope in Appendix I to this notice.

Methodology

Commerce is conducting this investigation in accordance with section 731 of the Act. Commerce has calculated export prices in accordance with section 772(a) of the Act. Constructed export prices have been calculated in accordance with section 772(b) of the Act. Normal value (NV) is calculated in accordance with section 773 of the Act. For a full description of the methodology underlying the preliminary determination, see the Preliminary Decision Memorandum.

All-Others Rate

Sections 733(d)(1)(ii) and 735(c)(5)(A) of the Act provide that in the preliminary determination Commerce shall determine an estimated all-others rate for all exporters and producers not individually examined. This rate shall be an amount equal to the weighted average of the estimated weighted-average dumping margins established for exporters and producers individually investigated, excluding any zero and de minimis margins, and any margins determined entirely under section 776 of the Act.

In this investigation, Commerce calculated estimated weighted-average dumping margins for Textil de Pernambuco and MGP Brasil that are not zero, de minimis,or based entirely on facts otherwise available. Commerce calculated the all-others’ rate using a weighted average of the estimated weighted-average dumping margins calculated for the examined respondents using each company’s publicly-ranged Start Printed Page 19700values for the merchandise under consideration.[7]

Preliminary Determination

Commerce preliminarily determines that the following estimated weighted-average dumping margins exist:

Exporter/producer Estimated weighted-average dumping margin (percent)
Companhia Integrada Textil de Pernambuco 226.91
M&G Polimeros Brasil, S.A 24.09
All-Others 93.60

Suspension of Liquidation

In accordance with section 733(d)(2) of the Act, Commerce will direct U.S. Customs and Border Protection (CBP) to suspend liquidation of entries of subject merchandise, as described in Appendix I, entered, or withdrawn from warehouse, for consumption on or after the date of publication of this notice in the Federal Register. Further, pursuant to section 733(d)(1)(B) of the Act and 19 CFR 351.205(d), Commerce will instruct CBP to require a cash deposit equal to the estimated weighted-average dumping margin or the estimated all-others rate, as follows: (1) The cash deposit rate for the respondents listed above will be equal to the company-specific estimated weighted-average dumping margins determined in this preliminary determination; (2) if the exporter is not a respondent identified above, but the producer is, then the cash deposit rate will be equal to the company-specific estimated weighted-average dumping margin established for that producer of the subject merchandise; and (3) the cash deposit rate for all other producers and exporters will be equal to the all-others estimated weighted-average dumping margin.

Disclosure

Commerce intends to disclose its calculations and analysis performed to interested parties in this preliminary determination within five days of any public announcement or, if there is no public announcement, within five days of the date of publication of this notice in accordance with 19 CFR 351.224(b).

Verification

As provided in section 782(i)(1) of the Act, Commerce intends to verify the information relied upon in making its final determination.

Public Comment

Case briefs or other written comments may be submitted to the Assistant Secretary for Enforcement and Compliance no later than seven days after the date on which the last verification report is issued in this investigation. Rebuttal briefs, limited to issues raised in case briefs, may be submitted no later than five days after the deadline date for case briefs.[8Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who submit case briefs or rebuttal briefs in this investigation are encouraged to submit with each argument: (1) A statement of the issue; (2) a brief summary of the argument; and (3) a table of authorities.

Pursuant to 19 CFR 351.310(c), interested parties who wish to request a hearing, limited to issues raised in the case and rebuttal briefs, must submit a written request to the Assistant Secretary for Enforcement and Compliance, U.S. Department of Commerce, within 30 days after the date of publication of this notice. Requests should contain the party’s name, address, and telephone number, the number of participants, whether any participant is a foreign national, and a list of the issues to be discussed. If a request for a hearing is made, Commerce intends to hold the hearing at the U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time and date to be determined. Parties should confirm by telephone the date, time, and location of the hearing two days before the scheduled date.

Postponement of Final Determination and Extension of Provisional Measures

Section 735(a)(2) of the Act provides that a final determination may be postponed until not later than 135 days after the date of the publication of the preliminary determination if, in the event of an affirmative preliminary determination, a request for such postponement is made by exporters who account for a significant proportion of exports of the subject merchandise, or in the event of a negative preliminary determination, a request for such postponement is made by the petitioner. Section 351.210(e)(2) of Commerce’s regulations requires that a request by exporters for postponement of the final determination be accompanied by a request for extension of provisional measures from a four-month period to a period not more than six months in duration.

On March 29, 2018, pursuant to 19 CFR 351.210(e), Textil de Pernambuco requested that Commerce postpone the final determination and that provisional measures be extended to a period not to exceed six months.[9On April 12, 2018, the petitioners also requested that Commerce postpone the final determination.[10In accordance with section 735(a)(2)(A) of the Act and 19 CFR 351.210(b)(2)(ii), because: (1) The preliminary determination is affirmative; (2) the requesting exporter accounts for a significant proportion of exports of the subject merchandise; and (3) no compelling reasons for denial exist, Commerce is postponing the final determination and extending the provisional measures from a four-month period to a period not greater than six months. Accordingly, Commerce will make its final determination no later than 135 days after the date of publication of this preliminary determination.

International Trade Commission Notification

In accordance with section 733(f) of the Act, Commerce will notify the International Trade Commission (ITC) of its preliminary determination. If the final determination is affirmative, the ITC will determine before the later of 120 days after the date of this preliminary determination or 45 days after the final determination whether these imports are materially injuring, or threaten material injury to, the U.S. industry.Start Printed Page 19701

Notification to Interested Parties

This determination is issued and published in accordance with sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).

Dated: April 27, 2018.

James Maeder,

Associate Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations performing the duties of Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations.

Appendix I

Scope of the Investigation

The merchandise covered by this investigation is polyethylene terephthalate (PET) resin having an intrinsic viscosity of at least 70, but not more than 88, milliliters per gram (0.70 to 0.88 deciliters per gram). The scope includes blends of virgin PET resin and recycled PET resin containing 50 percent or more virgin PET resin content by weight, provided such blends meet the intrinsic viscosity requirements above. The scope includes all PET resin meeting the above specifications regardless of additives introduced in the manufacturing process.

The scope excludes PET-glycol resin, also referred to as PETG. PET-glycol resins are manufactured by replacing a portion of the raw material input monoethylene glycol (MEG) with one of five glycol modifiers: Cyclohexanedimethanol (CHDM), diethylene glycol (DEG), neopentyl glycol (NPG), isosorbide, or spiro glycol. Specifically, excluded PET-glycol resins must contain a minimum of 10 percent, by weight, of CHDM, DEG, NPG, isosorbide or spiro glycol, or some combination of these glycol modifiers. Unlike subject PET resin, PET-glycol resins are amorphous resins that are not solid-stated and cannot be crystallized or recycled.

The merchandise subject to this investigation is properly classified under subheadings 3907.61.0000 and 3907.69.0000 of the Harmonized Tariff Schedule of the United States (HTSUS). Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the merchandise covered by this investigation is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary

II. Background

III. Period of Investigation

IV. Postponement of Final Determination and Extension of Provisional Measures

V. Scope Comments

VI. Affiliation

VII. Discussion of the Methodology

A. Determination of the Comparison Method

B. Results of the Differential Pricing Analysis

VIII. Date of Sale

IX. Product Comparisons

X. Export Price and Constructed Export Price

XI. Duty Drawback

A. Duty Exemption Drawback

B. Duty Suspension Drawback

XII. Normal Value

A. Sample Sales

B. Home Market Viability

C. Affiliated-Party Transactions and Arm’s-Length Test

D. Level of Trade

E. Calculation of NV Based on Comparison Market Prices

F. Calculation of NV Based on Constructed Value (CV)

G. Cost of Production (COP) Analysis

XIII. Currency Conversion

XIV. Verification

XV. Conclusion

Footnotes

1.  See Polyethylene Terephthalate Resin from Brazil, Indonesia, the Republic of Korea, Pakistan, and Taiwan: Initiation of Less-Than-Fair-Value Investigations, 82 FR 48977 (October 23, 2017) (Initiation Notice).

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2.  See Polyethylene Terephthalate from Brazil, Indonesia, the Republic of Korea, Pakistan, and Taiwan: Postponement of Preliminary Determinations of Antidumping Duty Investigations, 83 FR 7655 (February 22, 2018).

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3.  See Memorandum, “Deadlines Affected by the Shutdown of the Federal Government,” (Tolling Memorandum), dated January 23, 2018. All deadlines in this segment of the proceeding have been extended by 3 days.

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4.  See Memorandum, “Decision Memorandum for the Preliminary Determination in the Less-Than-Fair-Value Investigation of Polyethylene Terephthalate Resin from Brazil” dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum).

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5.  See Antidumping Duties; Countervailing Duties, Final Rule, 62 FR 27296, 27323 (May 19, 1997).

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6.  See Initiation Notic e.

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7.  With two respondents under examination, Commerce normally calculates (A) a weighted-average of the estimated weighted-average dumping margins calculated for the examined respondents; (B) a simple average of the estimated weighted-average dumping margins calculated for the examined respondents; and (C) a weighted-average of the estimated weighted-average dumping margins calculated for the examined respondents using each company’s publicly-ranged U.S. sale quantities for the merchandise under consideration. Commerce then compares (B) and (C) to (A) and selects the rate closest to (A) as the most appropriate rate for all other producers and exporters. See Ball Bearings and Parts Thereof from France, Germany, Italy, Japan, and the United Kingdom: Final Results of Antidumping Duty Administrative Reviews, Final Results of Changed-Circumstances Review, and Revocation of an Order in Part, 75 FR 53661, 53663 (September 1, 2010). As complete publicly ranged sales data was available, Commerce based the all-others rate on the publicly ranged sales data of the mandatory respondents. For a complete analysis of the data, please see the All-Others’ Rate Calculation Memorandum.

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8.  See 19 CFR 351.309see also 19 CFR 351.303 (for general filing requirements).

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9.  See Textil de Pernambuco’s Letter, “Antidumping Duty Investigation of Polyethylene Terephthalate (PET) Resin from Brazil: Thailand: Request for Postponement of Final Determination and Provisional Measures Period,” dated March 29, 2018.

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10.  See also Petitioners’ Letter, “Polyethylene Terephthalate (“PET”) Resin from Brazil, Indonesia, the Republic of Korea, Pakistan, and Taiwan—Petitioners’ Request to Extend the Antidumping Duty Final Determinations,” dated April 12, 2018.

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[FR Doc. 2018-09516 Filed 5-3-18; 8:45 am]

BILLING CODE 3510-DS-P

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