In this week's Chemical Market Reporter

11 September 2005 00:15  [Source: ICIS news]

Top Headlines

 

Katrina prompts force majeures

Force majeures rippled through the US chemical industry last week as producers reacted to shortfalls caused by Hurricane Katrina.

 

Phoenix Project’s wings clipped

A significantly scaled-down Phoenix Project has been unveiled by Mexican President Vicente Fox, following difficulties securing favorable long-term feedstock contracts for its partners.

 

GSK caches flu shot maker

GlaxoSmithKline continued its aggressive pursuit of a top slot in the flu vaccines arena last week with its $1.4bn bid for Vancouver-based ID Biomedical Corp. The acquisition, already cleared by each company’s board of directors and expected to close in late 2005 or early 2006, will bring GSK vaccine operations in both the US and Canada, two marketed vaccine products and an expanded pipeline of flu vaccines.

 

Katrina snags logistics

Most major ports along the US Gulf Coast sustained little damage from Hurricane Katrina, but port operations remained limited late last week because of the lack of power and personnel. Railroads continued to rebuild. Only two Gulf ports were listed as “closed,” according to the US Coast Guard - the Port of Biloxi in Mississippi and the Port of Bayou La Batre in Alabama.

 

Eastman mulls world’s largest PET plant

Construction of Eastman Chemical Company’s $100m, 350,000 ton/year PET (polyethylene terephthalate) plant in Columbia, South Carolina based on IntegRex technology, is on schedule, and the company is mulling an even larger IntegRex PET plant in the US, to come on line by 2009.

 

In the News

 

Nova to make Arcel in China

Nova Chemicals Corp. has entered into a long-term tolling agreement with Loyal Chemical Industrial Corp. to produce Arcel moldable foam resin near Shanghai, China. Nova says the move is part of a plan to expand manufacturing capacity of Arcel to 100 million pounds annually by the end of 2006.

 

Engelhard buys Almatis unit

Engelhard Corp. has acquired Almatis AC, the adsorbents and catalyst business of Almatis Group. The deal strengthens Engelhard’s leadership position in moisture control and purification for the hydrogen peroxide, petroleum refining and petrochemical industries, adding high-purity alumina products, catalyst supports and alumina-based adsorbents and dessicants to its portfolio.

 

Andrx on hold after FDA action

Generic drug maker Andrx said last week that ongoing manufacturing issues have caused the Food and Drug Administration to put on hold the approval of its abbreviated new drug applications. The news pushed shares down by 17% to $14.89.

 

LG Dow boosts polycarbonate

LG Dow Polycarbonate Ltd., a 50-50 joint venture between Dow Chemical and LG Chem, is set to begin construction on a second, 65,000 tonne polycarbonate (PC) train in Yeosu, Korea.

 

Katrina causes pricing havoc in Europe

Hurricane Katrina has brought about a step change in pricing that market players believe is going to last for some time. After prices for European commodity chemicals initially shot up, they are now on a high, yet stable level, with players waiting to see what Gulf Coast facilities will come back on stream, and when.

 

Major Markets

 

Katrina jolts commodity prices

Pharma M&A remains robust

Biotechs expand Rituxan potential

Sales stale for soy foods

Chemtura lights fire under FRs

Water treatment swells in China

Lurgi rides the biodiesel wave

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