Benzene

React swifty in fast-moving markets with trusted data and insight 

Discover the factors influencing benzene markets

Rapidly changing market dynamics are a constant reality for buyers, sellers and traders of benzene who must closely track highly active markets in the US, Europe, Asia-Pacific and China. This high demand petrochemical is extracted from crude oil for industrial use, so markets also react quickly to even the smallest fluctuations in oil prices. To make solid and lucrative trades, multiple factors must be monitored constantly, so when opportunities occur, they are acted on straight away.

In such a fast-paced environment, access to accurate information in real time is essential. By collating and reporting back on the latest news, validated pricing data for spot and contract business, and deep-dive expert analysis, our experts provide analytics and forecasts to act swiftly and with confidence.

Other aromatics and derivatives that we cover

Learn about our solutions for benzene

Pricing, news and analysis

Maximise profitability in uncertain markets with ICIS’ full range of solutions for benzene, including current and historic pricing, forecasts, supply and demand data, news and analysis.

Specialised analytics

Capitalise on opportunity with specialised analytics offering reliable chemicals margins, costs, supply, demand, capacity and trade flow data. Meet sustainability goals with ICIS’ innovative analytics.

Benzene news

Asia, Mideast petrochemical trades to slow down during Ramadan

SINGAPORE (ICIS)–Trades for several petrochemicals in Asia and the Middle East will slow down as markets observe Ramadan starting 10 March, with demand going into a lull amid shorter working hours during the Muslim fasting month. Converters hold ample inventory GCC demand for PP to rebound after Eid ul-Fitr Gaza conflict dampens EastMed market, outlook uncertain Most markets continue to struggle with poor demand as well as high cost amid geopolitical uncertainties in the Middle East and Europe. From 10 March, businesses in many Muslim-majority countries will operate on reduced hours, potentially affecting production and logistics, with significant business decisions likely to be postponed. INDONESIA IMPORT QUOTA FURTHER DAMPENS SENTIMENT In Indonesia – the world’s most populous Muslim nation and the second largest polyethylene (PE) consumer in southeast Asia after Vietnam – the seasonal slowdown in demand is exacerbated by uncertainties over the government’s import quota regulations. Industry players were recently informed by Indonesia’s trade ministry that most PE and PP grades would be exempted, but some worry that this could still change before the import quotas take effect on 10 March. Many converters are currently sitting on high stocks of PE, having boosted imports in the weeks after the government announced the new rules in December, before details were fleshed out. A few of them are now willing to re-enter the import market to order new supplies. “My customers have stopped talking to me for now. It’s both Ramadan and the import quota issue," said a PE supplier. "I feel that while prices have not really dropped … the demand has clearly slowed. Most buyers have already bought enough, and they are not willing to risk buying more,” the supplier said. “Ramadan and Lebaran (Eid ul-Fitr) are slow periods of demand,” he added. Eid ul-Fitr is a Muslim festival marking the end of Ramadan. In the upstream ethylene market in southeast Asia, inquiries from Indonesia have picked up since late February as buyers stock up for April and wanted to wrap up negotiations before Ramadan. Ethylene prices have increased because of tight supply amid operating issues at Chandra Asri’s cracker as well as limited supply coming from the Middle East. MIDEAST TENSIONS WEIGH ON TRADES Demand for both PE and PP in the Gulf Cooperation Council (GCC) is expected to improve after Eid ul-Fitr, as buyers restock after Ramadan's lull. In the East Mediterranean market, sentiment is likely to remain weak amid the Israel-Hamas war in Gaza. The war, now on its eighth month, and the weak economies of Lebanon and Jordan have dampened activity in both the PE and PP markets. Market conditions may not improve if a resolution to the war cannot be found soon. Since the start of the Israel-Hamas war on 7 October, sentiment was dampened throughout the region, with buyers in Jordan and Lebanon adopting a wait-and-see approach on markets. Hopes of an Israel-Hamas ceasefire ahead of Ramadan are fading following reports of more than 100 deaths of people waiting in a food aid line in Gaza. More than 100 people were killed on 29 February after Israeli troops fired on a large crowd of Palestinians racing to pull food off an aid convoy late last month, bringing the death toll since the start of the Israel-Hamas war to over 30,000, according to the Gaza Health Ministry. A continuation of hostilities beyond the start of Ramadan is now highly likely as several key issues remain unresolved. This could inflame tensions in the region significantly, with attacks by Yemen’s Houthi militants on shipping in the Red Sea likely to escalate. In toluene diisocyanate (TDI) and polymeric methylene diphenyl diisocyanate (PMDI) markets, GCC trades recently accelerated as some customers looked to stock up on volumes following recent spikes in costs of feedstock benzene and toluene in Asia. Some northeast Asian isocyanates producers announced sharp price increases in southeast Asia, which also impacted their volume allocations to other regions like the Middle East. In March and April, when supply for both TDI and PMDI is expected to be tight to normal due to some turnarounds in Asia, demand from GCC countries will likely slow down. Most businesses in the Middle East work fewer hours during Ramadan, which will impact overall activity. Focus article by Nurluqman Suratman Additional reporting by Josh Quah, Izham Ahmad and Damini Dabholkar Thumbnail image: Welcoming Ramadhan 2024, Medan, Indonesia – 27 February 2024 (Sutanta Aditya/NurPhoto/Shutterstock)

08-Mar-2024

INSIGHT: Indorama flags peak oil demand in possible plant closures

HOUSTON (ICIS)–While Indorama Ventures reviews six sites for possible closure, it will consider signs that oil demand will continue growing in emerging Asia while peaking in Europe and North America – a trend that would alter the regional costs of a principal polyester feedstock, making it more attractive to import it from Asia than make it in the West. Benzene, toluene and mixed xylenes (MX) are produced in refineries, and they are among the fundamental building blocks for the chemical industry. If oil demand peaks in the West, that would discourage refiners from expanding capacity or making the expensive investments needed to maintain existing production levels. That would tighten supplies for these building blocks, affecting costs for chemicals as varies as phenol, styrene and paraxylene (PX). By contrast, oil demand has yet to peak among emerging economies in Asia. There, refiners will continue to increase capacity to meet growing demand for diesel and gasoline. Supplies of aromatics should continue growing in those regions. Indorama is taking the prospect of peak oil seriously because a key polyester feedstock, purified terephthalic acid (PTA), is made from PX, and PX is extracted from MX. If Western PTA prices become too expensive, then it would make more sense for Indorama to shut down its high-cost plants in the West and purchase the feedstock from producers in Asia that can sell material at a lower price. Indorama did not specify which plants it could close. PEAK OIL IN WEST SPELLS END OF NEW REFINERIESIndorama expects oil demand in the West will soon peak, perhaps in 2025 or 2026, said Aloke Lohia, Group CEO of Indorama. He made his comments in an interview with ICIS. His comments are backed by statistics from the Energy Information (EIA). Outside of the post-COVID rebound in 2021, gasoline demand in the US has been running below pre-pandemic levels. In 2023, it reached a summertime peak of nearly 9.60 million bbl/day. That is more in line with summer levels in 2015. Given the outlook for oil demand in the West, Indorama is betting that refiners will unlikely make the pricey investments necessary to increase capacity. "No one is looking to build a new refinery," Lohia said. Refiners could even shirk from making the investments needed to maintain existing capacity. "We believe there will be de-growth in refineries in the West and hence high cost for crude oil derivatives that has hurt our competitiveness, especially in Europe," Lohia said in prepared remarks. Actions by refiners are bearing this out. LyondellBasell plans to shut down its Houston refinery because it cannot justify the capital expenditures needed to keep the 100+ year old complex running. Although ExxonMobil recently expanded its refinery in Beaumont, Texas, the last time a refiner made a comparable investment was in 2012, when Motiva expanded its refinery in Port Arthur, Texas. Several refiners have converted existing units to process vegetable oils and similar feedstock to produce renewable diesel and sustainable aviation fuel (SAF). LyondellBasell could convert its Houston refinery into a sustainability hub. OIL DEMAND TO CONTINUE GROWING IN EMERGING ASIAUnlike the West, Indorama expects oil demand to continue growing in emerging Asia. Governments in this part of the world have less aggressive schedules for reducing carbon emissions, with net-zero goals further out in the future, Lohia said. Reducing carbon emissions boils down to renewable electricity. Instead of producing power by burning coal and natural gas, countries would do so with renewable sources such as solar panels, wind turbines and hydropower. Renewable electricity could also be used to generate heat. Emerging economies have limited power production, and they want to use that electricity to rapidly industrialize, according to Indorama. De-carbonization and industrialization will compete for limited power generation. That will place a limit on the expansion of charging stations needed for electric vehicles (EVs). Until emerging markets build out electrical infrastructure, they will still need petroleum-based fuels. Consequently, emerging markets are giving themselves more time to reduce carbon emissions. In China in particular, some companies could rush to complete new expansion projects before decarbonization deadlines take effect, Lohia said. China already has too much capacity, so this building spree will worsen the supply glut. As it stands, crude oil processing in China reached 14.8 million bbl/day in 2023, an all-time high, according to the EIA. Growing refining capacity should increase supplies of aromatics such as PX, the feedstock used to make purified terephthalic acid (PTA). That should depress PTA production costs. INDORAMA'S PLANGiven the global outlook for chemical feedstock produced at refineries, Indorama is considering a plan that would reduce consumption of these feedstocks at its Western operations. Instead of producing feedstock at high-cost plants, Indorama would import the material from Asia. Production lost from any closures would be offset by increasing utilization rates at Indorama's low-cost plants. The move would significantly increase Indorama's overall operating rates and lead to double-digit returns on capital employed (ROCE) for the two businesses most exposed to MX, Combined PET (CPET) and Fibers. US SHALE MAY SPARE DOMESTIC PLANTSThe calculus is less straightforward for Indorama's US operations. Critically, these operations include methyl tertiary butyl ether (MTBE), an octane-boosting gasoline blendstock that is made with methanol and isobutylene. In the US, both of these chemicals are made from shale-based feedstock, giving Indorama a substantial cost advantage. When gasoline prices rise, Indorama's MTBE operations can earn the company very attractive margins. Those fat MTBE margins would offset the higher costs involved with producing PTA from PX extracted from MX. MX is another octane-boosting blendstock, so its price tends to rise and fall with that for gasoline. In effect, MTBE provides Indorama with a hedge against higher MX costs for its US PET operations. MX is not the only feedstock used to make PET. The other is monoethylene glycol (MEG), a chemical made from ethylene. US ethylene producers predominantly on ethane as a feedstock, giving them a cost advantage. For Indorama's PET operations in the US, shale gas gives the company a cost advantage on the MEG side and a hedge on the PTA side. Thumbnail shows bottle made of PET. Image by monticello/imageBROKER/Shutterstock Insight article by Al Greenwood

05-Mar-2024

Korea’s S-Oil targets $2bn capex for Ulsan oil-to-chems project in '24

SINGAPORE (ICIS)–South Korean refiner S-Oil has earmarked won (W) 2.72tr ($2bn) this year for its thermal crude-to-chemical (TC2C) project called Shaheen, representing 87% of the total capital expenditure (capex) set for 2024. The full-year capex at W3.14tr was up 54% from 2023, the company said in its Q4 results presentation released in early February. Construction of Shaheen at the Onsan Industrial Complex of Ulsan City started in March 2023 and will be in full swing this year, with mechanical completion targeted by the first half of 2026. The funds that will go to the project – whose name was derived from the Arabic word for falcon – were up 86% from 2023 levels. As of end-December 2023, site preparation was 48% complete, with engineering, procurement and construction at 18.7%, according to S-Oil. “Site preparation and EPC [engineering, procurement and construction] work is under full-fledged execution with the actual progress going smoothly according to the plan,” the company said. The project will leverage on the T2C2 technology of its parent company Saudi Aramco, the world’s biggest crude exporter. Aramco owns more than 63% of S-Oil. The project is expected to yield 70% more chemicals, with a capex/operating expenditure savings pegged at 30-40% versus conventional process. Meanwhile, for upgrade and maintenance of plants in 2024, total expenses will fall by about 32% to W298bn, with just two plants due for turnaround in the year – its No 1 crude distillation unit (CDU) and its No 1 lube HDT (hydrotreatment) unit, the company said in the presentation, noting that the plan is preliminary. ICIS had reported that S-Oil will conduct maintenance at its Group I and Group II base oils units in Onsan, Ulsan for more than a month from mid-September this year. On 23 February 2024, a fire broke out at the company’s Onsan production site in Ulsan, shutting one of the three crude distillation units (CDUs) of its 669,000 bbl/day refinery, with some reduction in propylene output of the residue fluid catalytic cracker (RFCC) at the site, industry sources said. Other downstream operations at the site were not affected, but this could not be immediately confirmed with the company. Its Onsan complex can produce 910,000 tonnes/year of propylene; 187,000 tonnes/year of ethylene; 600,000 tonnes/year of benzene; and 1m tonnes/year of paraxylene (PX), according to the ICIS Supply & Demand Database. The company was planning to restart the No 3 CDU by 27 February, news agency Reuters reported, quoting unnamed sources. 2023 NET PROFIT SLUMPSS-Oil posted a 54.9% slump in net profit, with sales sliding by about 16% to as operating rates across its plants declined. in billion won (W) FY2023* FY2022 Yr-on-yr % change Revenue 35,726.7 42,446.0 -15.8 Operating income 1,354.6 3,405.2 -60.2 Net income 948.8 2,104.4 -54.9 *Revised figures from S-Oil on 26 February 2024 in billion won (W) FY2023 FY2022 Yr-on-yr % change Refining operating profit 399.1 2,344.3 -83.0 Petrochemical operating profit 203.7 -49.8 -509.0 Lube operating profit 815.7 1,110.7 -26.6 Source: S-Oil presentation, 2 February 2024 Average operating rates across the company’s plants declined and were in the  range of 75.1% to 90.4% in 2023 due to weakening global demand, with paraxylene (PX) plants registering the lowest run rate. Source: S-Oil, February 2024 2024 OUTLOOK “Regional refining markets are forecast to maintain an above average level by steady demand growth coupled with low inventory levels,” S-Oil said. Refining margins in the first quarter will likely be supported by “heating demand in winter and spring maintenance season", it said. “With uncertainties on start-up timing and pace of major new refineries, market impact is estimated to be restricted in 2H [second half] or beyond,” the company said. Paraxylene (PX) and benzene markets “are projected to be supported by firm demand growth” on the back of new downstream expansions as well as demand for gasoline blending, “amid drastically reduced capacity addition”. Polypropylene (PP) and propylene oxide (PO) markets “are likely to gradually improve in tandem with pace of China’s economic recovery, while pressures from capacity addition continues”, while for lube base oils (LBO), the product spread is projected to be solid “on limited capacity additions and sustained demand growth”, according to S-Oil. Thumbnail image: S-Oil's Residue Upgrading Complex (RUC) and the Olefin Downstream Complex (ODC) in Ulsan, South Korea (Source: S-Oil) Focus article by Pearl Bantillo ($1 = W1,334)

29-Feb-2024

AdvanSix petitions US to impose Superfund taxes on imports of nylon 6, capro

HOUSTON (ICIS)–AdvanSix has requested that the US impose Superfund taxes on imports of nylon 6 and caprolactam (capro). On Tuesday, AdvanSix did not immediately respond to a request for comment. AdvanSix proposed a tax rate of $14.77/ton. The next step is for the government to gather comments and consider requests for hearings about AdvanSix's request. The deadline to file comments or request hearings is 22 April. HOW THE SUPERFUND TAX WORKSThe US introduced the Superfund taxes in mid-2022 on taxable chemicals and imports of taxable substances. The proceeds raised by the taxes will help replenish the government's Superfund program, which pays for clean-up at waste sites. The Superfund tax regime divides materials into two groups. The first group is levied on the sale or use of 42 chemicals by producers or importers. Many of these chemicals are fundamental building blocks such as ethylene, propylene, butadiene (BD), benzene, toluene, xylene and methane. The second group is restricted to imports and covers substances that are sold or used in the US. This second batch of taxes applies to substances that contain at least 20% of the 42 taxable chemicals. In addition, the taxable rate would depend on the proportion of the 42 taxable chemicals contained in the substance. The request by AdvanSix falls under this second group. As part of its request AdvanSix filed two petitions asking the US to add nylon 6 and capro to its list of taxable substances. Thumbnail shows nylon Image by Shutterstock.

27-Feb-2024

Asia petchem markets await China's demand signals after holiday

SINGAPORE (ICIS)–Asia's petrochemical markets will closely watch China's demand signals after the Lunar New Year holiday amid ongoing concerns about the country’s economic health. Asia markets eye China's post-holiday demand signals China's economic health remains central concern Prices likely to rise amid supply constraints Markets in Asia took a breather in the week of 12-16 February, with Lunar New Year holidays in China, Taiwan, Malaysia and Singapore, while countries such as South Korea, Japan and Indonesia observed public holidays as well. Market participants are cautious about the post-holiday market; while some downstream buyers will restock after the holidays, there is concern that existing inventory held by domestic China producers and distributors will largely satisfy demand until early March. PRICES LIKELY TO RISE AMID SUPPLY CONSTRAINTSPetrochemical prices in Asia are expected to continue to increase in February, supported by capacity losses from outages and run-rate reductions, according to ICIS analysts. Among the 31 major petrochemical commodities covered by the ICIS Asia Price Forecast, average February prices for at least 22 of these commodities are anticipated to increase. Ethylene (C2), butadiene (BD) and styrene butadiene rubber (SBR) are expected to lead in terms of gains. In Asia’s C2 market, end-users who have yet to settle March arrival cargo are expected to hit the ground running once most of players return to the market this week. In the southeast Asia C2 market, demand enquiries were largely heard from Thailand last week, while other end-users in Indonesia have begun to look towards the April window for spot cargo. "The Asia C2 industry is likely to be characterised by tight supply in the weeks to come," said Paolo Scafetta, ICIS senior olefins analyst. "February should see about 7% of total monthly nameplate capacity lost due to downtime unless unplanned events cause further technical hiccups." The upstream naphtha market in Asia should be influenced by a few bearish factors, Scafetta added. These include the shift from naphtha to liquefied petroleum gas (LPG) as an alternative cracking feedstock and an improvement in supply from March as naphtha cargoes are expected to increase as Middle East refineries return from their maintenance. Asia's naphtha market is likely to be plagued with volatility in the short term as tensions in the Red Sea will continue to disrupt supplies. In Asia’s propylene (C3) market, trade was largely subdued during the Lunar New Year break but picked up towards the close of the week with most market players, except China, returning from their holiday. Talks and discussions in Taiwan commenced at the end of the week after the holidays ended. However, the post-holiday buying sentiment weakened on the back of ample supply, leading sellers to progressively lower their offers and selling indications. With buyers in China largely away from the market, overall business activity during the week was muted. In southeast Asia, while demand was also heard in Malaysia and Indonesia, most buyers continued to hold back from purchases on the expectation that supply tightness might result in an easing in offers down the road. In Asia’s benzene market, post-holiday restocking is expected to pick up in the second half of February amid strong competition for April and May cargoes from global players. February and March benzene cargoes have been already sold out and April cargoes are in strong demand. Benzene buyers based in both Asia and the West had actively sought procurement since end-January, for pre-holiday and pre-summer stocking up respectively. Asia's acetone market looks poised to maintain its strength. This is due to the high prices of benzene, reduced production leading to tighter supply, and a resurgence in trading flows between Asia and the West. A significant increase in demand for Asia acetone from the US market is bolstering this trend. Limited supply in the US, a result of low phenol production and ongoing allocations, is driving this demand. Meanwhile, supply within Asia is also constrained as phenol/acetone producers scale back production in response to unprofitable margins and decreased demand for phenol in China. In the xylene markets, further support in the market will be dependent on downstream sectors after the Lunar New Year holidays, with eyes firmly on China. For paraxylene (PX), there remains optimism for gasoline-blending demand heading into the second quarter, with positive arbitrage window economics for exports to the West. Firm upstream naphtha prices have also provided some support for PX. Several market participants noted there had been pre-buying of mixed xylenes (MX) and toluene by gasoline blenders to the US. Demand and price developments in the downstream purified terephthalic acid (PTA) and polyester sectors will help provide clarity about whether high PX costs can be absorbed down the chain. Asia's butyl acetate (butac) and ethyl acetate (etac) markets are poised to stay afloat on anticipated post-holiday demand, albeit at a gradual pace. Sellers of butac in both China and the region largely maintained their spot offers for March loading prior to the Lunar New Year holiday. Spot butac prices were on a downtrend in the early part of the fourth quarter of 2023 and have climbed since December, in part driven by cost pressures upstream as suppliers worked towards mitigating compressed margins. Asia’s methylene chloride (MEC) market might be bullish after the Lunar New Year holiday, as rising demand is likely to shift the market to a more balanced state. Most buyers were in a wait-and-see mode, monitoring prices and observing what producers would offer after the Lunar New Year break, with market participants in southeast Asia eyeing a rebound in demand through Q2, around the Ramadan period. CHINA'S ECONOMIC HEALTH IN FOCUS ICIS analysts expect most of China's end-use consumption, including in industries such as agriculture and home appliances, to recover from March. The China government's Two Sessions policy meetings, widely seen as the most important political meeting of the year for the country, will be held on 4-11 March. ICIS analysts expect another series of policies to be introduced to stimulate economic growth. Further market and infrastructure investment can boost petrochemicals demand. Latest official data from China is pointing to some recovery from domestic tourism trips and revenues. Domestic tourism trips and revenues during the Lunar New Year holidays in China jumped by 34.3% and 47.3% year on year respectively, with their levels at 19.0% and 7.7% above pre-pandemic levels in 2019, data from the country’s Ministry of Culture and Tourism (MCT) shows. "Most official and private media channels have been reporting strong (or even exceptionally strong) Lunar New Year holiday consumption data, and markets risk getting caught up in the euphoria of the moment, under the supposition that China’s economy is suddenly bottoming out, driven by the Chinese people’s hidden passion for spending," research analysts from Japan's Nomura Global Markets Research said in a note. "Although we do see some strength in the data, we urge market participants to exercise caution," it said, adding that China's property sector continued its downward spiral, right before the Lunar New Year holiday, and there was no sign of a recovery during the holiday. "Despite the positive [Lunar New Year] data, we maintain our view that the ongoing economic dip is likely to worsen into the spring," Nomura said. With additional reporting by Josh Quah, Julia Tan, Seng Li Peng, Angeline Soh, Helen Lee, Keven Zhang, Melanie Wee and Samuel Wong Focus article by Nurluqman Suratman Thumbnail photo: Lunar New Year lanterns in Shenyang, northeast China's Liaoning Province, on 1 February 2021. Asia will closely watch China's demand signals after the Lunar New Year holiday amid concerns about the country’s economic health. (Source: Xinhua/Shutterstock)

19-Feb-2024

Asia top stories – weekly summary

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 9 February 2024. India methanol gains on lower Iran volumes amid plant outagesBy Keven Zhang 09-Feb-24 14:38 SINGAPORE (ICIS)–Indian methanol spot market continued to be driven by supply outages in Iran, with a trade concluded higher than the previous week. INSIGHT: Asia benzene remains profitable supported by demand in 2024 By Jenny Yi 08-Feb-24 22:27 SINGAPORE (ICIS)–Asia benzene supply growth will moderate in 2024 compared with last year, which saw the the peak of the latest capacity expansion cycle. The downstream market still maintains rapid capacity growth, however, which exceeds the supply growth rate of benzene. Asia adipic acid struggles to keep up with cost pressure ahead of holidays By Josh Quah 08-Feb-24 13:44 SINGAPORE (ICIS)–Adipic acid (ADA) prices in Asia have been on a general upward trend since around mid-December 2023 for China-origin cargoes. INSIGHT: Asia ABS supply length will intensify amid China expansions By May Hu 08-Feb-24 10:00 SINGAPORE (ICIS)–ABS (acrylonitrile butadiene styrene) capacity growth in Asia peaked in 2023 and will be sustained in 2024 on massive new capacities coming on stream in China. China petrochemical demand may stay muted post-holiday By Yvonne Shi 07-Feb-24 15:09 SINGAPORE (ICIS)–Low market confidence has kept petrochemical restocking in China tepid before the Lunar New Year holiday, with players refraining from building up inventory given uncertain demand recovery in March. China Jan petrochemical markets gain on restocking; Feb holidays to hit demand By Yvonne Shi 06-Feb-24 14:58 SINGAPORE(ICIS)–China’s domestic petrochemical markets gained in end-January on the back firm crude prices and some restocking ahead of the Lunar New Year holiday, with demand in February likely to weaken. Asia titanium dioxide spot market may be fuelled by bullish sentiment By Joson Ng 05-Feb-24 16:56 SINGAPORE (ICIS)–The titanium dioxide (TiO2) spot market in Asia is likely to see supply factors driving the market in February. India hikes infrastructure capex for fourth year; Rs11.1tr set for 2024-25 By Priya Jestin 05-Feb-24 14:49 MUMBAI (ICIS)–India’s government has announced plans to increase its capital expenditure on infrastructure projects to rupees (Rs) 11.1trn ($134bn) in its interim budget for 2024-2025, up 11% from the previous fiscal year, boosting the funds available for the sector for the fourth consecutive year.

13-Feb-2024

Mitsubishi may make FID on new US MMA plant in Q2

HOUSTON (ICIS)–Mitsubishi Chemical America could make a final investment decision (FID) on a new methyl methacrylate (MMA) plant in the US in the second quarter, with start-up possible in 2028, the company said on Thursday. The plant, called the MCA Geismar Site, is proposed to be built in Ascension Parish in Louisiana state, and it will produce 350,000 tonnes/year using the company’s Alpha process technology. The site will also include a carbon monoxide (CO) plant, a methanol plant and a formalin plant. This will be the third plant that features the Alpha process, which uses ethylene, methanol and CO to make MMA. If Mitsubishi Chemical decides to move forward on the project, then construction could start in the second half of 2024, the company said in a statement. It should end in 2028, with operations starting later that year. The project already has achieved some regulatory milestones. The Louisiana Department of Environmental Quality (LDEQ) had scheduled a public hearing for the project for 1 February. In 2023, the regulator made a preliminary determination to approve construction of the project. Mitsubishi Chemical expects the department to approve its air permit application in March or April 2024, it said in a statement. ETHYLENE-BASED MMA MAY UPEND MARKETMMA is typically made from acetone, which is a co-product of phenol production. Mitsubishi as well as Roehm are building MMA plants that use ethylene and methanol instead of acetone as a feedstock. Roehm calls its process technology LiMA, and it will be used in a 250,000 tonne/year plant it is building on the Gulf Coast. If these new technologies proliferate, then they would create a new end-use for ethylene, and they could slow down the growth for a traditional outlet for acetone. Not only could that have ramifications for acetone, but the new MMA technologies could affect phenol markets. Phenol and acetone are co-products and are ultimately derived from benzene and propylene via cumene. Thumbnail shows an item made of polymethyl methacrylate (PMMA), which is made from MMA. Image by Shutterstock.

08-Feb-2024

Mitsubishi's proposed US MMA plant reaches regulatory milestones

HOUSTON (ICIS)–A proposed methyl methacrylate (MMA) plant that Mitsubishi Chemical America plans to build in Louisiana has reached a couple of regulatory milestones, although the company has yet to announce a final investment decision (FID). The Louisiana Department of Environmental Quality (LDEQ) scheduled a public hearing for the project for 1 February. Earlier in 2023, the regulator made a preliminary determination to approve construction of the project. The plant, called the MCA Geismar Site, is proposed to be built in Ascension parish, and it will produce 350,000 tonnes/year using the company's Alpha process technology. The site will also include a carbon monoxide (CO) plant, a methanol plant and a formalin plant. This will be the third plant that features the Alpha process, which uses ethylene, methanol and CO to make MMA. ETHYLENE BASED MMA MAY UPEND MARKETMMA is typically made from acetone, which was a co-product of phenol production. Mitsubishi as well as Roehm are building MMA plants that use ethylene and methanol instead of acetone as a feedstock. Roehm calls its process technology LiMA, and it will be used in a 250,000 tonne/year plant it is building on the Gulf Coast. If these new technologies proliferate, then they would create a new end-use for ethylene, and they could slow down the growth for a traditional outlet for acetone. Not only could that have ramifications for acetone, but the new MMA technologies could also affect phenol markets. Phenol and acetone are both coproducts and are ultimately derived from benzene and propylene via cumene. Thumbnail shows polymethyl methacrylate (PMMA), which is made with MMA. Image by Shutterstock. 

06-Feb-2024

PODCAST: Asia benzene lifted by higher oil prices, pre-holiday restocking

SINGAPORE (ICIS)–Asia's benzene prices trended upwards because of crude gains as well some pre-Lunar New Year restocking. Downstream styrene (SM) producers however, struggled with higher costs and low demand from sectors such as polystyrene (PS), expandable polystyrene (EPS) and acrylonitrile-butadiene-styrene (ABS). In this chemical podcast, ICIS editors Angeline Soh and Luffy Wu discuss recent market conditions with an outlook ahead in Asia. Benzene Feb cargoes sold out from pre-LNY stocking up, US demand as plants shut from winter storm Demand for March cargoes buoyed; buyers beyond Asia worried about tightened supply with upcoming derivative additions in China Asian styrene market players struggling with high costs but low demand Regional styrene exporters eyeing long-haul opportunities to Europe

31-Jan-2024

INSIGHT: Pre-holiday Asia petrochemicals mixed on cost pressures, bleak demand outlook

SINGAPORE (ICIS)–Petrochemical markets in Asia are showing a mixed trend ahead of the Lunar New Year holiday, with some product prices rising on a combination of pre-holiday restocking and supply constraints despite general weakness in underlying demand. Red Sea crisis weighs on business decisions amid rising freight costs Pre-holiday restocking muted in most markets Demand recovery post holiday uncertain Prevailing concerns about the global economic outlook, compounded by rising freight costs and supply chain issues continue to weigh on sentiment. In China’s domestic market, pre-holiday restocking has been muted overall as downstream buyers fret over high prices of some products. The Lunar New Year, which falls on 10 February, is celebrated in most parts of northeast and southeast Asia. China will be on holiday for a full week on 10-17 February. COST PRESSURES DRIVE GAINS Some markets in Asia are experiencing an uptick in activity ahead of the holiday amid tight supply conditions. For ethyl acetate (etac), spot negotiations have surged along with market activity as end-users stock up on feedstock. The demand spike, particularly in northeast and southeast Asia, was triggered by concerns over limited vessel space and higher freight costs which were causing delays in cargo deliveries. “The tightness of vessel [availability] becomes a common problem for liquid chemicals at the moment,” said a regional-based market source. In the benzene market, buyers have been restocking throughout January, with a notable increase in demand compared with the previous year, ICIS analyst Jenny Yi said. Supply in Asia is expected to be stable amid limited planned turnarounds in the region in the first quarter, Yi said. In addition, the arbitrage window between Asia and the US has opened given reduced production in North America caused by prevailing frigid temperatures, she added. In the isocyanates market, demand is strong in India as downstream polyurethane (PU) producers are restocking for methylene diphenyl diisocyanate (MDI) and toluene diisocyanate (TDI to gear up for peak production season in the first few months of the new year. Import prices are bolstered by tight northeast Asian supply, with major Chinese producers offline for turnarounds. However, post-Lunar New Year demand remains uncertain, particularly in China and southeast Asia, as downstream PU sector recovery is sluggish. For polyols, import prices in southeast Asia and India are rising, tracking upstream propylene oxide (PO) gains. India’s domestic and import prices for polyols are rising on a combination of strong demand and high freight costs. Southeast Asia's market, on the other hand, is quieter but prices were being supported by higher feedstock cost. Adjusting polyols prices to match upstream costs is challenging due to weak downstream demand. In the fatty alcohols market, Chinese buyers have secured their needs until March, leaving Indian buyers more active in the market. “We sell two or three months forward on a CIF [cost, insurance & freight] basis … and the sudden increase in ocean freight will definitely affect our margins,” an oleochemicals trader said. HIGH PRICES DAMPEN DEMAND; SUPPLY TIGHT FOR SOME MARKETS Post-Lunar New Year recovery in demand is uncertain, with little optimism for significant improvement. For methanol, domestic activity in China was tepid with downstream factories likely to shut weeks ahead of the holiday, while those seeking cargoes face higher prices given low availability of supply in the market. The country’s methanol imports in January plunged month on month with plants in the Middle East running at reduced rates during the month. In the plasticizers market, spot import prices in Asia were dragged down by upstream losses and weak buying momentum. Based on ICIS’ Plasticizers forecast, prices are expected to fall in February as the market activity slows down during the Lunar New Year holiday. For 2-ethylhexanol (2-EH), import prices in east Asia were stable amid limited discussions due to a lack of available spot material. Downstream diisononyl phthalate (DINP) spot market is having some support from limited supply of feedstock isononyl alcohol (INA). INA cargo movement from Europe to Asia is being affected by ongoing logistics issues in the Red Sea. WEAK DOWNSTREAM MARKETS TO PERSIST For monoethylene glycol (MEG), slowing textile demand ahead of the Lunar New Year could halt the market uptrend. “Limited restocking activities are seen as buyers and end-users prefer not building high stocks amid concerns on the demand recovery after the holiday. As you know, the global economic outlook seems not rosy,” a regional trader said. In the recycled polyethylene terephthalate (R-PET) and recycled polyethylene (R-PE) markets, demand for pellets has been tepid as downstream plants still working through backlogs from last year's purchases. The recycled polymers market has generally struggled throughout 2023, with trade impacted by poor economics. In the PE market, initial spot February import offers in southeast Asia were firmer this week as Middle East suppliers flagged reduced spot allocation and low stocks. Middle East offers to Vietnam – which will celebrate the Lunar New Year from 8-14 February – spiked due to reduced availability of spot export cargoes. The Red Sea crisis has also likely affected some shipments from Saudi Arabia, but this could not be confirmed with the producers. Supporting PE demand is downstream application in packaging, which accounts for 60% of total consumption of the material. “The outlook for packaging is expected to be positive given the anticipation of holiday demand. However, downstream demand destruction in the industry is forecast at 15-20% lower year to date,” ICIS analyst Jincy Varghese said. For acrylonitrile butadiene rubber (NBR), China’s import prices have softened this week, as more local end-users retreated to wind down and prepare for the holidays. “The pre-holiday restocking exercise ended just barely weeks after it started,” a regional NBR maker said, adding that “it was so lame, compared to the previous years”. Insight article by Nurluqman Suratman With contributions from Melanie Wee, Julia Tan, Izham Ahmad, Helen Yan, Judith Wang, Shannen Ng, Keven Zhang, Arianne Perez and Ai Teng Lim Thumbnail image: China's 2024 Year of the Dragon celebrations preparations in Beijing – 25 Jan 2024  (WU HAO/EPA-EFE/Shutterstock)

26-Jan-2024

Events and training

Events

Build your networks and grow your business at ICIS’ industry-leading events. Hear from high-profile speakers on the issues, technologies and trends driving commodity markets.

Training

Keep up to date in today’s dynamic commodity markets with expert online and in-person training covering chemicals, fertilizers and energy markets.

Contact us

In today’s dynamic and interconnected chemicals markets, partnering with ICIS unlocks a vision of a future you can trust and achieve. We leverage our unrivalled network of chemicals industry experts to support our partners as they transact today and plan for tomorrow. Capitalise on opportunity, with a comprehensive market view based on trusted data, insight and analytics.

Get in touch to find out more.

READ MORE