In Wednesday's Asia papers
26 May 2004 02:57 [Source: ICIS news]
A summary of political, economic, trade, business and product news affecting the chemical and related industries.
International Economics & Politics
Japan's April trade surplus up 30.3% year-on-year
Japan's merchandise trade surplus stood at Yen1.079trn ($9.63bn/Euro7.89bn) in April, up 30.3% from a year ago in its 10th straight month of expansion, the government said Wednesday. Strong export growth led the rise, underscoring the vibrant external demand that continues to drive Japan's economic recovery. Growth in April's surplus was much sharper than economists had expected. Analysts had forecast a 19.7% rise to Yen991.9bn on average. A rise of 10.8% on year in the value of exports drove the expansion, outpacing a 6.5% rise in import value. Japan's trade surplus with Asia, an increasingly important destination for Japanese goods, surged 62.6% on year to Yen667.2bn. Exports to the region grew 19.6%, while imports rose 9.1%.
Nihon Keizai Shimbun, Japan (online edition)
Roh pledges to ease regulations
South Korea's President Roh Moo-hyun promised on Tuesday (25 May) to relax regulations if necessary to boost the sagging economy and corporate investment, and to establish a government task force to that end. Roh also pledged to give priority to technological innovation and training when he met with 18 business leaders in the presidential office to discuss measures to brighten the nation's economic outlook. The president said he would create and supervise a government body involving the related agencies or a subcommittee under the Regulatory Reform Committee. Roh's meeting with the business leaders, the first since he was reinstated on 14 May, came after the Fair Trade Commission promised to eradicate illegal business practices on the part of conglomerates and restrict their investment rights. Under the current regulations, 18 conglomerates with total assets exceeding Won5trn ($4bn/Euro3bn) are banned from buying stakes in affiliates or third-party companies in excess of 25% of their net combined assets. At the meeting, the leading conglomerates vowed to expand investments and employment. Participants in the meeting included leaders from Samsung, Hyundai Motor, SK and Posco.
Korea Herald, South Korea (online edition)
Row over Indian cabinet seat resolved
A row over a key cabinet seat in Indian Prime Minister Manmohan Singh's new coalition was resolved on Tuesday (25 May) after one of the two parties dropped its demands for the post, an official said. The southern Tamil regional Dravida Munnetra Kazhagham (DMK), which controls 16 parliamentary seats, had sought the newly-created shipping ministry but Singh allotted it to another southern partner, the TRS party, when he announced his cabinet three days ago. But K Chandrasekhar Rao, chief of the TRS party, which has five seats in the parliament, said he had decided to give up the portfolio to the DMK. The shipping, road transport and highways portfolios have been merged into a single entity, named the shipping ministry. The DMK, which pressed for three ministerial berths, had said earlier its seven ministers would take up their duties only after the portfolio issue was sorted out. According to media reports, the DMK also wanted a post in the revenue department and had been pushing Singh to hand it the internal security ministry, against the wishes of the prime minister's Congress party.
Business Day, Thailand (online edition)
Times of India, India (online edition)
One dead, 3 hurt in bomb blast at Karachi port One person was killed and three others wounded when a bomb exploded at the entrance gate of the Karachi Port Trust (KPT) building in the southern Pakistani city of Karachi, police said. One of the injured later died in hospital. KPT manages the busy port where security is usually very tight. Shah said it was a low-intensity bomb and police were investigating who might have planted it. All the injured were port workers and one of them said they saw a packet lying near the gate when they were leaving the building. They had wanted to report the suspicious parcel to the port security but had no time to do so because it suddenly exploded.
Channel News Asia, Singapore (online edition)
S'pore, Paraguay discuss bilateral cooperation
Paraguay's President Nicanor Duarte Frutos has called on Singapore's Prime Minister Goh Chok Tong at the Istana. He was accompanied by a delegation of trade officials. The two leaders discussed ways to deepen bilateral cooperation. They also exchanged views on the need to strengthen economic and trade links between South America and Southeast Asia. Duarte Frutos also called on President SR Nathan before giving a talk on Paraguay at the Institute of Southeast Asian Studies
Channel News Asia, Singapore (online edition)
Thai exports unaffected by high oil prices
The Ministry of Finance said on Tuesday (25 May) that Thailand's exports during the month of April remained robust and continued its growth pattern despite escalating global oil prices. Olarn Chaipravat, head of the ministry's economic working committee said that exports in April rose by 21.4% year-on-year to reach $7.3bn (Euro5.9bn). During the Q1, exports grew by 20.9%, with a 23.3% growth during March. The government has set a growth target of 15% year-on-year for 2004. Imports for April remained high, rising by 30% to $7.5bn, leaving a trade deficit of $242.2m. Higher import of raw material and capital goods were cited for the continued rise in imports. The month of April was key as issues such as the steady rise in global oil prices and the outbreak of bird flu affected the economy. However, higher level of exports and growth in consumer demand are likely to help push Q1's gross domestic product (GDP) to 7.5%. But it is likely to scale down to 7.4% in Q2 and further down to 7% in Q3. The last quarter is likely to end up at 6.3%. The slowdown in the GDP growth would likely push the country's overall GDP for this year down to about 7.1% from the previous projection of 7.9%.
Business Day, Thailand (online edition)
Baghdad car bomb near Australian facility
Up to five Iraqis were wounded, one of them critically, when a car bomb exploded outside a hotel close to Australia's diplomatic mission in Baghdad, the US military said. The mission lies opposite the hotel in the central Jadriyah district and Iraqi police said they believed it was the target although Australian diplomats disagreed. The Australian mission compound is barricaded by concrete, barbed wire and sandbags. Mission head Neil Muels said none of the nine-member Australian team had been hurt. Australia contributed troops to the US-led invasion of Iraq in March last year. The blast left a huge hole in the ground and shattered windows in the hotel and nearby homes. Two cars were completely destroyed.
Channel News Asia, Singapore (online edition)
NZ finance minister plans big spending budget
New Zealand will be presented with a big spending budget by Finance Minister Michael Cullen as his government prepares for next year's scheduled general election. Cullen will present the budget at 2:00 pm Thursday (0200 GMT). The budget remains the major political event in the South Pacific nation of four million people, particularly in a pre-election year. Elections, held every three years, are next due by late 2005. Cullen will present his fifth budget after years of tax surpluses and a strong economy. Healthy surpluses will allow him to continue pouring billions into the New Zealand Superannuation Fund as well as boost assistance for many families. Prime Minister Helen Clark denied it would be an election budget. Among other details in the budget already revealed include $14.8m (Euro12.1m) over four years for police national security teams to counter terrorism and international crime, including creating a police post in Suva, Fiji. Extra funding will go to New Zealand scientists to attract international funding, $39m to reduce methamphetamine use including more funding for forensic analysis and dedicated police.
Channel News Asia, Singapore (online editon)
Chemicals
Asia's naphtha spot price at new high in 13 yrs
Record
crude oil prices and active petrochemical production in Asia pushed up the benchmark open spec naphtha price in Tokyo to an average of $393/tonne on Tuesday (25 May), the highest level in more than 13 years. Strong demand for naphtha owes much to active petrochemical production in China, the biggest user of the oil derivative in the region. Japan's Ministry of Economy, Trade and Industry forecasts China's
ethylene production, a major indicator of naphtha demand in that country, to grow 3.6% on the year to 6.3m tonnes in 2004. If the naphtha price and yen-dollar rate remain at their current levels, the price of Japanese-made naphtha in the April-June quarter will likely rise to more than Yen29 000/kilolitre, topping the Yen27 600/kilolitre of the previous quarter, which was a 13-year high. Japanese petrochemical firms announced price gains at the start of the year due to high naphtha prices. Although the increases took effect in March, the companies are expected to move toward another round of price hikes shortly, with Mitsui Chemicals already announcing its intention to raise the price of
phenol, a raw material for synthetic resin products.
Nihon Keizai Shimbun, Japan (online edition)
Environment & Health
Japanese chem weapon container found
Another chemical weapon container left by Japan's invading army during World War II was found in Northeast China on Monday (24 May). No injuries have so far been reported. The incident occurred in the city of Qiqihar, where a similar leak of Japanese wartime mustard
gas last August killed one person and injured 42. The Japanese government has paid about Yen300.0m ($2.7m/Euro2.1m) for medical and other expenses for the victims. It is estimated Japanese troops have left more than 2m chemical bombs in at least 17 provinces in China. The Japanese government believes the number of abandoned weapons is 700 000. The two governments are working together for the complete destruction of Japanese-abandoned chemical weapons in China by 2007, as specified in a 1997 Chemical Weapons Convention and a later memorandum.
China Daily, China (online edition)
System to safeguard ships from terrorism
China's first universal automatic identification system should be operating by July, identifying ocean-going ships on the Yangtze River and protecting them from potential terrorism. Liu Gongchen, executive deputy director of the Maritime Safety Administration of China said the new system is able to keep track of ships, their countries of origin, their size, and number of crew. He made his remarks while attending a three-day meeting of the 34th Council of the International Association of Marine Aids to Navigation and Lighthouse Authorities. It closes on Wednesday. Liu said the system, which is still being adjusted, is set up in accordance with the International Maritime Organization standards. Another system will be built in Guangzhou to identify the ships sailing in the Pearl Delta. Some 1100 Chinese ocean-going vessels carrying cargo, containers and oil are required to be installed with tracking devices before 1 July, Liu said.
China Daily, China (online edition)
Oil & Gas
Sinopec wins big LNG project
China Petrochemical Corp, (Sinopec), the nation's second-largest oil company, has beaten rivals China National Offshore Oil Corp (CNOOC) and China National Petroleum Corp (CNPC) to win the rights to build a liquefied national (LNG) gas terminal in East China's Shandong Province. Sinopec's move breaks CNOOC's monopoly in building LNG projects along China's coastline. Sinopec is preparing to build the LNG project in Qingdao, according to a local government official of Shandong Province. The project will be able to handle up to 3m tonnes of LNG/year when completed, said the official. In the longer term, production could rise to 5m tonnes/year, depending on market development. Sinopec has submitted a preliminary feasibility study to the National Development Reform Commission and the State Council for approval. Earlier reports said the total investment is expected to reach Rmb4.5bn ($544.1m/Euro446.1m). Insiders said possible gas supplying sources to Sinopec's LNG terminal include Indonesia, Yemen, Sakhalin in Russia and Iran.
China Daily, China (online edition)
Petroleum
Vietnam cuts import tax on petrol, oil products Vietnam slashed import taxes on gasoline and other oil products to cushion importers against soaring world oil prices, the finance ministry said. The 5% tax on petrol imports was completely eliminated, while the range of import taxes on refined-oil products was cut from 10-20% to 5-10%. The new tariffs came into force on Tuesday (25 May), an official from the ministry said. In December, the government also cut import taxes on gasoline and oil products as a result of rising prices, just months after an initial round of reductions. The communist nation exported $3.8bn (Euro3.1bn) worth of crude oil in 2003 but it had to import $2.41bn in petroleum products because it does not have any operating oil refineries.
Channel News Asia, Singapore (online edition)
Petrochemicals
Banks to fund Indon petrochemical project
Six major European and Japanese banks have put together $200m (Euro164m) in long-term project financing for a petrochemical business in Indonesia. The project is the Tuban petrochemical complex, construction of which was halted in 1998 due to the Asian currency crisis. It is expected to take $700m and eight years to complete. Participating banks include Sumitomo Mitsui Banking, Germany's WestLB and UFJ Bank. The banks will execute financing on Wednesday. With energy prices high, the project is seen as a means of combining financing with policies to secure a stable supply of resources.
Nihon Keizai Shimbun, Japan (online edition)
Pharmaceuticals
China: Big exporter of Aids drug raw mat'ls
China, which began making Aids medicine less than two years ago, has become a major exporter of cheap raw materials for Aids drugs and is gearing up to export finished drugs to Third World countries. The move could see the country -- fast becoming the world's factory for almost every product imaginable -- driving down the worldwide price for the medicine. But international experts caution that quality must be assured. In response to a mushrooming HIV/Aids epidemic that has seen many poor farmers affected, the Chinese government in December 2002 approved several domestic pharmaceutical firms to make generic versions of Western drugs whose patents had run out, to try to lower the cost of treatment. So far, four Chinese companies are producing the anti-Aids medicine. Shanghai-based Desano Biopharma is exporting seven kinds of raw materials to India, Thailand and Brazil, the Xinhua news agency said. Total export figures were not provided, but the largest annual export of any one kind of material reached 12 tonnes for Desano, the largest company. Last September, Xiamen Mchem Pharma signed a five-year contract with the Brazilian government to become the third manufacturer designated to make anti-Aids drug components for Brazil. The Zhejiang Huahai Pharmaceutical and the Northeast Pharmaceutical exported a large amount of raw material for anti-Aids medicine to Africa, Latin America and Asia. Next on the agenda for those companies is to export finished anti-Aids medicine, Xinhua said.
Channel News Asia, Singapore (online edition)
China Daily, China (online edition)
Takeda tops in FY03 prescription drug sales
Takeda Chemical of Japan led domestic sales of prescription drugs in fiscal 2003, according to rankings compiled by market research firm IMS Japan. Takeda's sales grew 2.3% on the year to Yen521.5bn ($4.6bn/Euro3.8bn) based on government-set prices. Its Blopress hypertension treatment was among the drug manufacturer's strongest performers. Sales at Chugai Pharmaceutical rose 24.8% to Yen295.9bn, and Pfizer Japan saw a 35.3% sales rise to Yen282.4bn, helping to place them fourth and fifth, respectively. Four of the top 10 pharmaceutical companies were overseas firms, reflecting their growing presence in Japan. The overall domestic prescription drug market expanded 3.6% to Yen7.09trn in fiscal 2003.
Nihon Keizai Shimbun, Japan (online edition)
Kyowa Hakko to boost new drugs R&D
Japan's Kyowa Hakko Kogyo is strengthening its pharmaceuticals development, preparing a system that focuses more on the West and enables it to quickly ascertain trends in the US drug market. Through such moves, the company aims to more effectively use its expanding drug R&D expenditures. In April, Kyowa Hakko merged its departments for drug R&D, creating communications channels so that it could directly convey the market trends to researchers and to increase efficiency at the initial research stage. The company's pharmaceuticals business now generates annual sales of more than Yen140.0bn ($1.2bn/Euro1.0bn). Its drug R&D expenditures are nearing Yen25bn, and are set for expansion.
Nihon Keizai Shimbun, Japan (online edition)
Company News
LG Chem to invest $2m in Taiwan
LG Chem, South Korea's largest chemicals company, plans to set up a sales entity in Taipei, Taiwan, with an initial capital of $2m (Euro1m), according to a regulatory filing on Tuesday (25 May). The new Taiwanese branch, named LG Chem (Taiwan), is to be launched on 30 June. It is designed to strengthen the company's packaging and sales operations there, LG officials said. In Taiwan, the company runs a small local branch, but the increased investment is expected to enhance sales networks. LG Chem now runs 15 entities across Europe, Asia and the US.
Korea Herald, South Korea (online edition)
Medco trumps rival in bid for Novus
Indonesian oil firm Medco Energi on Tuesday (25 May) raised its takeover bid for Australia's Novus Petroleum to A$350m ($245m/Euro201m), trumping a rival management-led offer and reigniting a bidding war. Indonesian oil and gas fields generated two thirds of Novus' operating profit in 2003 and Medco is aiming to boost its production assets in its home market as crude prices surge. Medco's new offer values Novus at A$1.90/share, five cents above the A$1.85/share offered by Sunov Petroleum. Sunov, led by Novus Chief Executive Bob Williams and Hong Kong's Crosby Capital Partners, is now preparing a fresh bid.
Business Day, Thailand (online edition)
(Some stories may not appear in all editions of the cited news media.)
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