Butadiene and c4s

SINGAPORE (ICIS)–Asian oxo-alcohols buyers maintained a wait and watch approach, amid the possibility of added plant capacities in China weighing on market sentiment. The acrylonitrile (ACN) market continues to see limited spot demand in the northeast Asia market. Even as downstream acrylonitrile-butadiene-styrene (ABS) has seen higher production rates recently, ACN producers were unlikely to increase operating rates. For the acrylates downstream, butyl-A market in Asia continues to take direction from Chinese domestic prices. With India's Bureau of Indian Standards (BIS) requirements preventing Chinese origin imports, cargoes from China were flowing into SE Asia and NE Asia. In this podcast, ICIS editors Julia Tan and Corey Chew discuss trends in the Asia propylene and derivatives markets. Visit ICIS during APIC ’24 on 30-31 May at Booth 13 in the Grand Ballroom Foyer in the Grand InterContinental Seoul Parnas. Book a meeting with ICIS here.

15-May-2024

LONDON (ICIS)–The International Energy Agency (IEA) on Wednesday cut its expectations for global crude oil demand growth as demand from the OECD shifted into contraction territory in Q1 and as refinery margins continued to slump into the spring period. Demand slows on global economic health concerns Refinery margins near two-year lows More balanced supply-demand expected in 2025 The IEA now expects global crude demand to slip to 1.1 million barrels/day this year, down from projections of 1.2 million barrels/day in its previous monthly oil forecast, and a further decline from the 1.3 million barrels/day projected in March. The upward revisions seen in February and March were driven by higher demand expectations on the back of improved economic momentum, particularly for the US, with the agency predicting that the market could move into supply deficit. Weaker-than-expected deliveries to OECD countries, particularly in Europe, drove demand from the bloc into the negative in Q1, according to the IEA, while pricing fell through the early spring as economic concerns outpaced the upward impact of geopolitical tensions. Crude futures have fallen from over $90/barrel earlier in the year to $82.53 at midday Brent trading on Wednesday. Refinery margins have also fallen to near a two-year low in the wake of a sell-off across many crude and downstream markets such as middle distillates. Particularly pronounced in Europe, the slump in refinery margins could lead to run rate cuts that undermine the usual seasonal output uptick, the IEA added. “The slump in European refinery margins in April outpaced those seen in the US Gulf Coast and Singapore, reflecting its heavy reliance on diesel output and weak regional demand eroding the premium needed to attract long-haul imports from East of Suez,” the IEA said in its monthly report. European gasoil demand dropped 140,000 barrels/day year on year in the opening three months of the year, following a 210,000 barrel/day decline in Q4 2023. Despite declining demand expectations for 2024, supply growth is expected to be subdued, with a 1.4 million barrel/day increase in non-OPEC+ output offset by a projected 840,000 barrel/day decline in OPEC+ output, amounting to a total increase of 580,000 barrel/day. The latest deliberations among OPEC member states and allied country ministers is expected at the start of June in Vienna, Austria, with decisions taken there potentially setting the tone for the second half of the year. “Despite the recent weakness, our current balances show the call on OPEC+ crude oil at around 42 million barrels/day in the second half of this year – roughly 700,000 barrels/day above its April output,” the IEA added. The agency projects that crude demand growth will rise modestly to 1.2 million barrels/day, but production is likely to reach 1.8 million barrels/day, with 1.4 million of that total expected from non-OPEC+ countries. “Even if OPEC+ voluntary production cuts were to stay in place, global oil supply could jump by 1.8 million barrels/day compared with this year’s more modest 580,000 barrels/day annual increase,” the IEA said. “The United States, Guyana, Canada and Brazil continue to dominate gains, even as the pace of the US supply expansion decelerates,” the IEA added. Focus article by Tom Brown. Thumbnail photo: A crude oil tanker moored off the coast of Cyprus (Source: Danil Shamkin/NurPhoto/Shutterstock)

15-May-2024

LONDON (ICIS)–Increases in crude oil supplies from outside the OPEC+ bloc of countries is expected to decline slightly year on year in 2025, with the US and Canada expected to remain the backbone of OECD production increases and Latin America driving the rest of the world, according to OPEC. The group projects that crude supply growth from countries that are not signed up to the declaration of cooperation (DoC)– encompassing OPEC member states and ally nations that have agreed to coordinated production cuts – will stand at 1.1 million barrels/day next year. Representing a modest decline from the 1.2 million barrel/day production growth OPEC projects for non-DoC nations this year, the 2025 increase is expected to drive total output from the region to 54.1 million barrels/day. The US is expected to drive a substantial proportion of the total production growth expected from non-DoC nations, representing nearly half of the total projected growth at 0.5 million barrels/day, while Canada is expected to increase output by an average of 0.2 million barrels/day. Latin America is expected to be the key source of non-OECD growth excluding OPEC+ countries, with output expected to grow 0.3 million barrels/day next year on average, a slight decline from the 0.4 million barrels/day projected for this year. Interest rates, inflation, geopolitics and reduced investment in exploration and production by oil majors as players seek to clip costs are all serving to cloud the picture on future demand and output, OPEC added. “The anticipated trajectory and pace of inflation's decline, particularly within the services sector, are poised to influence crude oil production costs going forward,” OPEC said in its monthly oil report. “The potential influence of the present limited investment commitment in upstream E&P projected for 2024 and 2025 on production levels remains uncertain amid an ongoing drive for efficiency and enhanced productivity throughout the industry,” the cartel added. The organization left its 2024 non-DoC oil supply, global demand and GDP forecasts unchanged from its April report, at 1.2 million barrels/day, 2.2 million barrels/day and 2.8% respectively. Thumbnail photo: An oil well in Jebel Dukhan, Bahrain. Source: Jakub Porzycki/NurPhoto/Shutterstock

14-May-2024

SAO PAULO (ICIS)–Brazil’s state of Rio Grande do Sul remains at a standstill from the floods, with Thai petrochemicals major Indorama’s subsidiary in the country also suspending operations at its Triunfo facilities, a spokesperson confirmed to ICIS. Two main ports in Brazil’s southernmost state remain closed, while fertilizers players have said demand is likely to be hit on the back of a reduced planting season. A spokesperson for Indorama said the company had suspended operations at Triunfo on 3 May until further notice. Indorama's operations in Brazil are the result from its acquisition of Oxiteno and operates at Triunfo a methyl ethyl ketone (MEK) plant with a production capacity of 42,000 tonnes/year and a butene-2 plant with capacity at 42,000 tonnes/year, according to ICIS Supply & Demand. “Initially, we ensured that the emergency shutdown was carried out safely. Currently, we are carefully assessing the weather and logistical conditions, as well as the guidance from the relevant authorities, to determine the short, medium and long-term impacts [of the suspension],” said the Indorama spokesperson. Earlier in the week, Brazil’s polymers producer Braskem and styrenics producer Innova declared force majeure from its operations in Triunfo, as did styrene butadiene rubber (SBR) producer Arlanxeo. Official figures on Friday put the dead toll at 116, with more than 130 people still unaccounted for, while more than 100,000 remain displaced from their homes and nearly two million people in the 12-million-strong state are being affected by Brazil’s worst floods in nearly a century. To make matters worse, rains returned to Rio Grande do Sul by the latter part of the week, forcing authorities to suspend some rescue operations. Brazilians this week have kicked off a remarkable national mobilization to help alleviate the disruption gauchos – as citizens from Rio do Grande do Sul are known in Portuguese – are going through. From workplaces to residential buildings, from civil associations to companies, there is practically no place in the country where an effort to collect goods, food and money is not being deployed. PORTS CLOSED, AGRICULTURE HITThe Port Authority for Rio Grande do Sul, called Portos RS and which oversees operations at the Port of Rio Grande, Port of Pelotas and Port of Porto Alegre, said operations at the two latter facilities remain shut to traffic. The Port of Rio Grande is operating normally, it added. “[Portos RS] maintains operations at the Port of Porto Alegre suspended, due to the maintenance of the level of Lake Guaiba above the so-called flood level. At the Port of Pelotas, in the south of the state, the shipment of wood logs remains suspended and activities are paralyzed at the terminal,” the Authority said. “Regarding the crossing to Sao Jose do Norte [a city north of Porto Alegre], the vehicle and passenger transport service is suspended due to the high level of Laguna dos Patos.” This week, several fertilizers players said to ICIS demand is likely to be hit as planting for some crops which had just started is likely to be delayed, postpone, or cancelled. Moreover, seeds recently planted could also get damaged by high levels of moisture, potentially ruining their harvest. “There has been great damage to infrastructure in the state, with fertilizers mixers underwater and authorities still calculating the impacts,” said an urea trader. “The rice harvest is almost done, but wheat planting is in its early days and producers of urea believe demand destruction can happen due to the circumstances.” Another fertilizers source added that around 70% of soybeans in Rio Grande do Sul had already been harvested, but there is still 30% to be harvested which would now be at risk. It added that 30% would represent approximately 6.5 million tonnes of soybeans, or 5% of Brazil’s total production. Rio Grande do Sul is the main rice producer in Brazil, and the source said the harvest for that crop was already behind schedule when the rains started, with 78% harvested. “We estimate that the unharvested volume should significantly affect the supply of rice in Brazil, increasing the upward pressure on prices, “the source said. “Corn was also in the process of being harvested, with an estimated 83% harvested by the time the rains started. It is not possible yet to estimate precisely how much of this amount at risk has been lost.” Front page picture: Voluntaries working in Rio Grande do Sul organizing donations Source: Government of Rio Grande do Sul Additional reporting by Bruno Menini, Deepika Thapliyal and Chris Vlachopoulos

10-May-2024

HOUSTON (ICIS)–Global base oils markets face regionally unique pricing dynamics but largely stagnant underlying demand and sufficient supply amid still challenging macroeconomic conditions. Crude oil price volatility and its effect on refining economics will be a key driver going forward this year. Tighter European spot availability of Group I Ample supply, demand weakness drives unprecedented low Group III in US Chinese prices weaken versus import US Group II fills regional supply gaps in Middle East, Asia during H1 ASIATight supply of Group II will likely be alleviated to some extent in May and June. Significant volume upwards of 10,000 tonnes of US-origin Group II lots comprising 70N, 110N, 220N and 600N grades landed on Indian shores in the first-half of April, and a second shipment of a similar size was also heard to have arrived in India in late April. The below graph compares CFR 150N India prices with FOB Asia NE and FOB USG export prices for the same grade. This is likely to more than offset the reduced supply of South Korean and Taiwanese cargoes, especially that of heavy grade 500/600N, in recent months. Demand for South Korea-origin Group II cargoes was relatively strong in April in regions such as India and the UAE, while demand in other parts of Asia such as China and southeast Asia was subdued. May to June is typically a lull season for base oils from the key downstream lubricants sector. ICIS analysts forecast Asia Group II prices to dip slightly in May before recovering in June. As for Group I, spot availability of southeast Asian material continued to be in short supply, with sporadic offers of Thai-origin brightstock cargoes heard. With few alternatives of Group I imports from other sources such as Europe or the Middle East, the tight supply situation is expected to persist in the coming months. CHINAMost downstream lubricant producers in China are expected to maintain steady purchasing pace in May, and the unusual weakness in March and April trade sentiment may sustain, too. Trades were far weaker than expected in these two months, the traditional peak demand season for base oil. Group II price gains in Asia were noticeable through March and April, compared with small increases in China. Such a price divergence is expected to widen in May partly as Asian refiners may further hike their export prices in view of expected supply shortage caused by robust demand in southeast Asia. However, slow growth in China’s real economy such as the automobile and industrial sectors may lead to flat buying demand for lubricant oils, hence domestic lubricant oils producers may continue to buy base oils on a need-to basis, according to many producers. The average import costs of contractual Group II base oils are expected to be higher than their sale prices in China during April, said key importers, citing increasing export prices from Asian refiners and depreciating Chinese yuan against the US dollar. This, combined with ample supply of domestic Group II materials amid limited routine maintenance, may cause significant price spreads between domestic and imported Group II base oils. Therefore, downstream producers are expected to cut the usage of imported cargoes. The lubricant oil producers and importers in China may have little import interest as a result. USGroup II and Group III prices have diverged, with Group II spot rising on tighter availability following a slew of exports in Q1 and two price increases this spring up to 55 cents/gal on 100N. The price increases were implemented on the back of higher costs for crude and VGO and affected term contract customers to a greater degree, but spot prices have been pressured upward in tandem to a lesser extent. The availability issue may be temporary as it is due to unconfirmed work by one refiner, other refiners being sold out and production of Group III cutting into Group II yields. Group III suppliers have not raised prices in 2024. Rather SK Enmove’s 4cSt posted price is down by 50 cents/gal over two separate decreases this year. Separately, Motiva has reduced its 4cSt posted price by a cumulative 65 cents/gal. ICIS spot 4cSt has fallen by 15%, while spot 100N has risen by 8.2%. The US 4cSt price decline has been unprecedented, bringing US Group III lower than Asia. The graph shows the US 4cSt price as it compares with the Asia 4cSt price and the US 100N price. US EIA data show: Production up 5.5% YTD compared to 2023 Consumption down 29.5% YTD compared to 2023 (-27.2% in January and -32.2% in February) Demand data are worse than 2023 so far this year, which explains the heavy export months of Q1 and potentially why Group II supplies are more balanced domestically in early May. ICIS analysts forecast a general downtrend to flat pricing for the remainder of the year. EUROPEEuropean domestic Group I base oils spot supply limitations, a key driver of spot price increases in the last month, are expected to continue in May and early June. SN150 remains the tightest grade, closely followed by SN500. Domestic brighstock supply is balanced, contrasting with the export market, where shortages drove price hikes from March through April. In the European export market, availability is likely to remain limited through the rest of Q2. Players are expected to continue prioritising domestic supply, and very few offers are anticipated for the export market. Brightstock is expected to be tight for export now that Eni has stopped production at Livorno. A limited number of producers offer brightstock in sufficient volumes for export requirements, and the removal of Eni from the market means there will be significantly less availability. While lower demand at the beginning of Q2 offset the limited availability, buying interest looks set to increase further into the quarter and as a result there could be supply shortages. Buying interest has been increasing from west Africa, north Africa and east Africa in early May, and this is likely to continue throughout Q2. Demand from west Africa will then drop off in Q3 amid rainy season. ICIS analysts forecast European Group I prices to rise through August. MIDDLE EASTGroup II remains oversupplied in the UAE following bulk arrival of volumes from Asia and the US in late April and H1 May, and the trend is likely to persist into late May and early June. Import volumes from the US and northeast Asia upwards of a combined volume 25,000 tonnes of 110N, 150N, 220N and 500N/600N have dampened fresh imports’ interest from Asia. The recent firmness in offers and selling indications for northeast Asian 150N and 500N/600N exports have thus resulted in weak response from regional importers. The UAE market in the Middle East continues to rely on sourcing low viscosity index (VI) Group I base oils from Iran in the absence of spot high VI availability from Asia, Europe and from within the region. Spot Group I supply from Asia and from within the region is likely to remain curtailed as major producers in these markets opt to focus on contractual commitments. This is expected to sustain demand and prices for Group I Iranian product in the near term. The Eid ul Adha holidays in mid-June may temper imports’ and ex-tank offtake in H2 June before recovering in July. ANALYSTS’ VIEWWith ICIS crude forecast currently expecting crude to hover around the $90/barrel mark for most of the remainder of the year, this could keep some pressure on base oils pricing. With VGO, while slightly elevated vs typical spreads with crude, gas oil and fuel oil, moving broadly in line with crude, higher crude prices flow through to lower base oils margins for producers. We have seen European prices rise on the recent crude rise, where cash margins are close to their sustainable minimum, while other regions have held stable. Upward pressure may come in Asia where gas oil price rises over the summer might have the most significant effect on the base oil market, resulting in upward pressure there due to competition from fuels producing units. In the US, where margins are highest currently, there is expectation of a flat to declining market on sufficient length in supply. Base oils are used to produce finished lubricants and greases for automobiles and other machinery. Focus article by Amanda Hay, Eashani Chavda, Samantha Wright, Matthew Chong, Whitney Shi, Veena Pathare and Michael Connolly

09-May-2024

SINGAPORE (ICIS)–Saudi Aramco's net income fell by 14.4% year on year to Saudi riyal (SR) 102.3 billion in the first quarter amid lower crude oil volumes and weakening downstream margins, the energy giant said on Tuesday. in SR billions Q1 2024 Q1 2023 % Change Sales 402.04 417.46 -3.7 Operational Profit 202.05 222.18 -9.1 Net profit 102.27 119.54 -14.4 Early this year, Saudi Arabia’s government ordered Aramco to halt its oil expansion plan and to target a maximum sustained production capacity of 12m barrels/day, 1m barrels/day below the target announced in 2020. In the first quarter, Aramco's downstream income before interest, income taxes and zakat (annual Islamic tax) slumped by 64% year on year to SR4.62 billion. The drop in downstream earnings reflects weakening refining and chemicals margins, partially offset by inventory valuation movement, it said. The drop in group earnings was partially offset by lower production royalties, an increase in crude oil prices compared to the same period last year and lower income taxes and zakat. Despite having a capacity of 12 million barrels/day, Saudi Arabia currently produces about 9 million barrels/day as part of production cuts initiated by OPEC and its allies in October 2022 and further voluntary cuts by Saudi Arabia and other OPEC+ members in April 2023, all designed to stabilize oil prices. Following an OPEC+ meeting in June 2023, Saudi Arabia – the world's top crude exporter – announced a further oil production cut of 1 million barrels/day. “Looking ahead, I expect our portfolio to continue to evolve as we aim to contribute to an energy transition that offers solutions to climate challenges, but at the same time recognizes the need for affordable, reliable, and flexible energy supplies," added Amin Nasser, Aramco's President and CEO. Aramco's chemicals arm SABIC and China's Fujian Energy and Petrochemical Group Co held a groundbreaking ceremony to mark the start of construction at the SABIC Fujian Petrochemical Complex in China's Fujian province during the first quarter. The project will include a mixed-feed steam cracker with up to 1.8m tonne/year ethylene (C2) capacity and various downstream units producing ethylene glycols (EG), polyethylene (PE), polypropylene (PP) and polycarbonate (PC), among other products. Thumbnail photo : One of Aramco's US offices (Source: Saudi Aramco)

07-May-2024

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 3 April 2024. Asian BD discussions under pressure as buying slows down By Ai Teng Lim 03-May-24 11:06 SINGAPORE (ICIS)–Asian spot butadiene (BD) import discussions are slipping due to slowing demand, fueled by holiday closures this week and persistent external macroeconomic headwinds. SABIC Q1 net income falls 62%, warns of industry overcapacity By Nurluqman Suratman 02-May-24 10:55 SINGAPORE (ICIS)–SABIC's net income fell by 62% year on year to Saudi Riyal (SR) 250 million in the first quarter amid a drop in prices and sales volumes, the chemicals major said late on Wednesday. CHINAPLAS ’24: PODCAST: China's polymer industry targeting high-end products amid fierce competition By Zhibo Xiao 30-Apr-24 16:17 SINGAPORE (ICIS)–ICIS analysts Sijia Li, Yvonne Shi, Zhibo Xiao, Lucy Shuai, Joanne Wang and Cindy Qiu discuss the trends in China's polyolefins and polyester markets. China domestic acetic acid demand to weaken; sellers eye more exports By Jady Ma 30-Apr-24 11:25 SINGAPORE (ICIS)–China’s domestic acetic acid market may face headwinds from increased supply and weaker demand in May after generally firming up in April, while producers are exporting more volumes. Asia BPA makers will not increase run rates until margins improve By Li Peng Seng 29-Apr-24 12:25 SINGAPORE (ICIS)–Asian bisphenol A (BPA) makers are expected to stay entrenched in the months ahead despite falling Chinese imports, as they seek to combat firm feedstock costs. Saudi Aramco, Chinese Rongsheng plan liquids-to-chemicals JV in Jubail By Nurluqman Suratman 29-Apr-24 11:55 SINGAPORE (ICIS)–Saudi energy giant Aramco and Chinese Rongsheng Petrochemical are planning a joint venture liquid-to-chemicals expansion project in Jubail, Saudi Arabia.

06-May-2024

LONDON (ICIS)–ICIS senior oil analyst David Jorbenaze discusses developments in the global crude markets, with geopolitical tensions and global economic trends continuing to shape the Q3 2024 market outlook, as the OPEC+ alliance weighs the next steps in its production accords. Highlights: -OPEC Supply Strategy Adjustments: Considering easing production cuts in Q3 2024 if oil prices stay above $90/bbl, in response to rising global demand and increased output from non-member countries. –Economic Recovery and Demand Growth: Supported by a rebounding Chinese economy and global economic growth, leading to higher expected oil consumption into 2025. -Geopolitical Risks and Market Volatility: Increased tensions, particularly between Israel and Iran, along with potential interest rate hikes by the Federal Reserve, contribute to heightened market uncertainty and price fluctuations.

02-May-2024

SAO PAULO (ICIS)–Brazilian chemicals producers are lobbying hard for an increase in import tariffs for key polymers and petrochemicals from 12.6% to 20%, and higher in cases, hoping the hike could slow down the influx of cheap imports, which have put them against the wall. For some products, Brazil’s chemicals trade group Abiquim, which represents producers, has made official requests for the import tariffs to go up to a hefty 35%, from 9% in some cases. On Tuesday, Abiquim said several of its member companies “are already talking about hibernating plants” due to unprofitable economics. It did so after it published another set of somber statistics for the first quarter, when imports continued entering Brazil em masse. Brazil’s government Chamber of Foreign Commerce (Camex) is concluding on Tuesday a public consultation about this, with its decision expected in coming weeks. Abiquim has been busy with the public consultation: it has made as many as 66 proposals for import tariffs to be hiked for several petrochemicals and fertilizers, including widely used polymers such polypropylene (PP), polyethylene (PE), polyethylene terephthalate (PET), polystyrene (PS), or expandable PS (EPS), to mention just a few. Other chemicals trade groups, as well as companies, have also filed requests for import tariffs to be increased. In total, 110 import tariffs. HARD TO FIGHT OFFBrazil has always depended on imports to cover its internal chemicals demand, but the extraordinary low prices coming from competitors abroad has made Brazil’s chemicals plant to run with operating rates of 65% or lower. More and more, the country’s chemicals facilities are becoming white elephants which are far from their potential, as customers find in imported product more competitive pricing. Considering this dire situation and taking into account that the current government in Brasilia led by Luiz Inacio Lula da Silva may be more receptive to their demands, Abiquim has put a good fight in publica and private for measure which could shore up chemical producers’ competitiveness. This could come after the government already hiked import tariffs on several products in 2023 and re-introduced a tax break, called REIQ, for some chemicals which had been withdrawn by the previous Administration. While Brazil’s chemicals production competitiveness is mostly affected by higher input costs, with natural gas costs on average five times higher than in the US, the industry is hopeful a helping hand from the government in the form of higher import tariffs could slow down the flow of imports into Brazil. As a ‘price taker region’ given its dependence on imports, Latin American domestic producers have taken a hit in the past two years. In Brazil, polymers major Braskem is Abiquim’s commanding voice. Abiquim, obviously, has always been very outspoken – even apocalyptic – about the fate of its members as they try to compete with overseas countries, namely China who has been sending abroad product at below cost of production. The priorities in China’s dictatorial system are not related to the balance of markets, but to keep employment levels stable so its citizens find fewer excuses to protest against the regime which keeps them oppressed. Capitalist market dynamics are for the rest of the world to balance; in China’s dictatorial, controlled-economy regime the priority is to make people feel the regime’s legitimacy can come from never-ending economic growth. The results of such a policy for the rest of the world – not just in chemicals but in all industrial goods – is becoming clear: unprofitable industries which cannot really compete with heavily subsidized Chinese players. The results of such a policy in China are yet to be seen, but subsiding at all costs any industry which creates employment may have debt-related lasting consequences: as they mantra goes, “there is no such thing as a free lunch.” Abiquim’s executive president urged Lula’s cabinet to look north, to the US, where the government has imposed hefty tariffs on almost all China-produced industrial goods or raw materials for manufacturing production. “[The hikes in import tariffs] have improved the US’ scenario: despite the aggressive advance in exports by Asian countries, the drop in US [chemicals] production in 2023 was of 1%, while in Brazil the index for production fell nearly by 10%,” said Andre Passos. “The country adopted an increase in import taxes of over 30% to defend its market from unfair competition. The taxation for some inputs, such as phenol, resins and adipic [acid], for example, exceeds three digits. “Here, we are suggesting an increase in rates to 20% in most claims … We need to have this breathing space for the industry to recover,” he concluded. As such, the figures for the first quarter showed no sign of imports into Brazil slowing down. The country posted a trade deficit $9.9 billion during the January-March period; the 12-month accumulated (April 2023 to March 2024) deficit stood at $44.7 billion. A record high of 61.2 million tonnes of chemicals products entered Brazil in Q1; in turn, the country’s industry exported 14.6 million tonnes. Abiquim proposals for higher import tariffs Product Current import tariff Proposed tariff Expandable polystyrene, unfilled, in primary form 12.6% 20% Other polystyrenes in primary forms 12.6% 20% Carboxymethylcellulose with content > =75%, in primary forms 12.6% 20% Other polyurethanes in liquids and pastes 12.6% 20% Phthalic anhydride 10.8% 20%  Sodium hydrogen carbonate (bicarbonate) 9% 35% Copolymers of ethylene and alpha-olefin, with a density of less than 0.94 12.6% 20% Other orthophthalic acid esters 11% 20% Other styrene polymers, in primary forms 12.6% 20% Other silicon dioxides 0% 18% Other polyesters in liquids and pastes  12.6% 20% Commercial ammonium carbonates and other ammonium carbonates 9% 18% Other unsaturated polyethers, in primary forms 12.6% 20% Polyethylene terephthalate, with a viscosity index of 78 ml/g or more 12.6% 20% Phosphoric acid with an iron content of less than 750 ppm 9% 18% Dinonyl or didecyl orthophthalates 11% 20% Poly(vinyl chloride), not mixed with other substances, obtained by suspension process 12.6% 20% Poly(vinyl chloride), not mixed with other substances, obtained by emulsion process 12.6% 20% Methyl polymethacrylate, in primary form  12.6% 20% White mineral oils (vaseline or paraffin oils) 4% 35% Other polyetherpolyols, in primary forms 12.6% 20% Other unfilled epoxy resins in primary forms 12.6% 20% Silicon dioxide obtained by chemical precipitation 9% 18% Acrylonitrile-butadiene rubber in plates, sheets, etc 11% 35% Other organic anionic surface agents, whether or not put up for retail sale, not classified under previous codes 12.6% 23% Phenol (hydroxybenzene) and its salts 7% 20% Fumaric acid, its salts and esters 10 ,8% 20% Plasticizers and plastics 10 ,8% 20% Maleic anhydride 10 ,8% 20% Adipic acid salts and esters 10 ,8% 20% Propylene copolymers, in primary forms 12.6% 20% Adipic acid 9% 20% Unfilled polypropylene, in primary form 12.6% 20% Filled polypropylene, in primary form 12.6% 20% Methacrylic acid methyl esters 10 ,8% 20% Other ethylene polymers, in primary forms 12.6% 20% Acrylic acid 2-ethylhexyl esters 0% 20% 2-Ethylexanoic acid (2-ethylexoic acid) 10. 8% 20% Other copolymers of ethylene and vinyl acetate, in primary forms 12.6% 20% Other unfilled polyethylenes, density >= 0.94, in primary forms 12.6% 20% Polyethylene with a density of less than 0.94, unfilled 12.6% 20% Other saturated acyclic monoalcohol acetates, c atom <= 8 10. 8% 20% Polyethylene with a density of less than 0.94, with filler 12.6% 20% Triacetin 10. 8% 20% Sodium methylate in methanol 12.6% 20% Stearic alcohol (industrial fatty alcohol) 12.6% 20% N-butyl acetate                              11% 20% Stearic acid (industrial monocarboxylic fatty acid) 5% 35% Alkylbenzene mixtures 11% 20% Organic, non-ionic surface agents 12.6% 23% Ammonium nitrate, whether or not in aqueous solution 0.0% 15% Monoethanolamine and its salts 12.6% 20% Isobutyl alcohol (2-methyl-1-propanol) 10.8% 20% Butan-1-ol (n-butyl alcohol) 10.8% 20% Styrene-butadiene rubber (SBR), food grade as established by the Food Chemical Codex, in primary forms 10.8% 22% Styrene                                9% 18% Hexamethylenediamine and its salts 10.8% 20% Latex from other synthetic or artificial rubbers 10.8% 35% Propylene glycol (propane-1, 2-diol) 10.8% 20% Preparations 12.6% 20% Linear alkylbenzene sulfonic acids and their salts 12.6% 23% 4,4'-Isopropylidenediphenol (bisphenol A, diphenylolpropane) and its salts 10.8% 20% Dipropylene glycol 12.6% 20% Butanone (methyl ethyl ketone) 10.8% 20% Ethyl acetate                                 10.8% 20% Methyl-, ethyl- and propylcellulose, hydroxylated 0.0% 20% Front page picture: Chemical production facilities outside Sao Paulo  Source: Union of Chemical and Petrochemical industries in the state of Sao Paulo (Sinproquim) Focus article by Jonathan Lopez Additional information by Thais Matsuda and Bruno Menini

30-Apr-2024

LONDON (ICIS)–Crude prices will likely face downward pressure this week amid rising demand concerns. Investors will be keeping a watch on the US Federal Reserve meeting later this week after worrying GDP and inflation data. Despite a persistent risk premium, continued ceasefire talks between Israel and Hamas could contribute to bearish sentiment. ICIS experts look ahead to the likely factors that will drive oil prices in Week 18.

29-Apr-2024