Ethylene vinyl acetate (EVA)

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Discover the factors influencing ethylene vinyl acetate (EVA) markets

Ethylene vinyl acetate (EVA) has a wide range of foaming and packaging applications. It can also be used in hoses and tubes, adhesives, wire and cable insulation, as a coating for heat sealing and for encapsulation in solar cells, according to the ratio of ethylene to VA.

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Ethylene vinyl acetate (EVA) news

PODCAST: A tale of two olefins – diverging trends in Asia's olefins markets

SINGAPORE (ICIS)–Asia's ethylene (C2) market will see northeast Asia supply in Q2  remain ample on the back of relatively high run rates at northeast Asian crackers. Similarly, propane dehydrogenation (PDH) units in the region are also expected to sustain current run rates for Q2. In this podcast, ICIS market editors Josh Quah  and Julia Tan discuss Asia's olefins flows, with a forward view on the Q2 market. NE Asia C2 supply ample, SE Asia C2 supply tight NE Asia and SE Asia C3 supply ample Deep-sea movements as arbitrage windows open

27-Mar-2024

Saudi Aramco eyes further chemical investments in China with local partners

SINGAPORE (ICIS)–China has a "vitally important" place in Saudi Aramco's global investment strategy, with the energy giant actively developing additional investment opportunities with its Chinese partners in the chemicals sector, Aramco president and CEO Amin Nasser said. The global oil major’s strategic goals in chemicals are “well-aligned” with China’s, he said in a keynote speech at the China Development Forum in Beijing on 25 March, noting that the country “is already a powerhouse representing 40% of global [chemical] sales”. Aramco, through its chemicals arm SABIC, is planning to increase its liquids-to-chemicals throughput to 4m barrels per day by 2030, Nasser said. Saudi Aramco accelerated its push into China’s refining and petrochemical sector last year with strategic investments that are aligned with Saudi Arabia's Vision 2030 diversification goals. This includes the 10% stake acquisition in Rongsheng Petrochemical Co for $3.4bn last year. Saudi Aramco, together with Chinese partners Norinco Group and Panjin Xincheng Industrial Group (PXIG), is also building a 300,000 bbl/day refining and ethylene-based steam cracking complex in Panjin City, in northeast China's Liaoning province at a cost of around $12bn. The Liaoning project is expected to come online in 2026. “We are also pleased that SABIC’s partnership in Fujian is on-track to commence construction of a major chemicals facility at an estimated cost of $6.4 billion,” Nasser said. The Fujian complex 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. SABIC’s other major investments in China include three compounding plants in Shanghai, Guangzhou and Chongqing; a joint venture with Sinopec in Tianjin; a technology centre in Shanghai and a customer centre office in Guangzhou. SUSTAINABLE DEVELOPMENT Demand for lower greenhouse gas emissions (GHG) materials – especially advanced composites and non-metallics in general – is growing rapidly, Nasser noted. Aramco’s research efforts in developing GHG materials are consistent with Chinese President Xi Jinping’s stance that sustainable development is the “golden key” for future success, he said. “We agree with China’s pragmatic and prudent approach to energy transition…I believe there are wide-ranging opportunities to jointly develop advanced GHG emission reduction technologies.” China has distinct strengths in renewables and critical materials, while Aramco and Saudi Arabia have a clear interest in solar, wind, hydrogen, and electro fuels, Nasser said. “These areas have great long-term potential, and combining our strengths could match our ambitions,” he added. Focus article by Nurluqman Suratman

26-Mar-2024

Dow, ExxonMobil among chems picked in US $6 billion CO2 cutting program

HOUSTON (ICIS)–A $6 billion industrial decarbonization program by the US will fund many chemical projects being developed by Dow, ExxonMobil and other companies, featuring projects as diverse as using carbon dioxide (CO2) as a feedstock, recycling plastic and burning hydrogen as a fuel, the Department of Energy (DOE) said on Monday. The following describes the seven chemical projects chosen by the US. ExxonMobil is developing the Baytown Olefins Plant Carbon Reduction Project in Texas. The project will use new burner technologies to combust hydrogen instead of natural gas for ethylene production. The project should cut more 2.5 million tonnes/year of carbon emissions, or more than 50% of the cracker's total emissions. The project will receive up to $331.9 million from the government. A subsidiary of Orsted plans to build a 300,000 tonne/year e-methanol plant on the Gulf Coast in Texas. The subsidiary, Orsted P2X US Holding, expects the e-methanol will be used as fuel for marine shipping and transportation. E-methanol is made with CO2 with green hydrogen. Orsted is already developing such a project in Sweden. The Texas project will receive up to $100 million from the government. BASF plans to develop a project in Freeport, Texas, that will convert liquid byproducts into synthesis gas (syngas) using plasma gasification and renewable power. Syngas is a mixture of hydrogen and carbon monoxide (CO). BASF will use the syngas as feedstock for its operations in Freeport. The project will receive up to $75 million from the government. LanzaTech and T.EN Stone & Webster Process Technology plan to develop a project on the US Gulf Coast that will capture CO2 emissions from crackers. It will then use green hydrogen and a biotech-based process to convert the captured CO2 into ethanol and ethylene. LanzaTech has developed strains of bacteria that ferment CO2 using hydrogen as an energy source. The name of the project is Sustainable Ethylene from CO2 Utilization with Renewable Energy (SECURE), and it will receive up to $200 million from the government. Ashland's subsidiary, ISP Chemicals, plans to replace natural gas boilers with electric heat delivered by a thermal battery at its plant in Calvert City, Kentucky. Other partners in the project include the Tennessee Valley Authority (TVA) and Electrified Thermal Solutions (ETS), which is supplying its Joule Hive system. The project will receive up to $35.2 million from the government. Dow's project will be developed on the US Gulf Coast and it will capture up to 100,000 tonnes/year of CO2 from ethylene oxide (EO) production. The project will then use the CO2 to produce chemicals used in electrolyte solutions to make domestic lithium-ion batteries. The project will receive up to $95 million from the government. Eastman is building a chemical recycling plant in Longview, Texas, that will use its methanolysis technology to break down waste polyethylene terephthalate (PET) into dimethyl terephthalate (DMT) and monoethylene glycol (MEG). The plant plans to use thermal energy storage combined with on-site solar power to reduce the carbon intensity of its process heating operations. It will receive up to $375 million from the government. DETAILS ABOUT THE US PROGRAMThe US expects the program will cut more than 14 million tonnes/year of emissions of CO2 from 33 projects. On average, each of the projects will cut carbon emissions by 77%. Out of the $6 billion, $489 million will come from the Bipartisan Infrastructure Law, and $5.47 billion will come from the Inflation Reduction Act (IRA). The fund will target the following: Seven chemical and refining projects. Six cement and concrete projects. Six iron and steel projects. Five aluminium and metals projects. Three food and beverage projects. Three glass projects. Two process heat-focused projects. One pulp and paper project.

25-Mar-2024

China’s Sinopec 2023 profit falls 13% as chemicals incur loss for second year

SINGAPORE (ICIS)–Chinese producer Sinopec posted a 12.9% decrease in full-year 2023 net profit as product prices fell across the board, dragged down by operating losses in chemicals. Chemicals segment incurs CNY6.0bn ($832m) loss in 2023 Refining earnings surge 69% as crude prices fall 2024 C2 output growth to slow from 6.5% in 2023 Sinopec is a major chemical producer in China. In million yuan (CNY) 2023 2022 Change Revenue 3,212,215 3,318,168 -3.2% Operating expenses -3,125,387 -3,242,333 -3.6% Operating profit 86,828 75,835 14.5% Profits attributable to shareholders 58,310 66,933 -12.9% Among its four business segments, only chemicals reported a loss in 2023. The segment incurred operating losses for the second consecutive year. The 2023 figure, however, was much lower compared with 2022, aided in part by feedstock optimization and increased run rates of profitable plants. Operating profit (loss) in CNY million 2023 2022 Change Exploration & production              44,963 53,716 -16.3% Refining              20,608 12,211 68.8% Marketing & distribution              25,939 24,537 5.7% Chemicals              (6,036) (14,127) N/A The chemical market faced a tough oversupply condition last year, following a significant increase in China’s petrochemical capacity, with declining prices dampening production margins. China’s domestic chemical product prices in 2023 declined by 7.0%, with chemical margin at a low level, the company said. Its ethylene (C2) production in 2023 stood at 14.31 million tonnes, up by 6.5% from 2022. Sinopec’s total chemical sales volume last year increased by 1.7% to 83 million tonnes, it said. Meanwhile, operating profit from refining in 2023 surged 69% due to lower crude prices, with both refinery throughput and domestic sales of oil products hitting record highs. In 2023, Sinopec processed 258 million tonnes of crude, up by 6.3% from 2022. Domestic sales of refined oil products (including gasoline, diesel and kerosene) last year reached 188 million tonnes, up 15.8% from the previous year. For 2024, the company expects the Chinese economy will maintain a sustainable trend of recovery, with domestic demand for natural gas, fuel and chemicals to continue growing. It expects volatility in crude prices to persist. “Due to changes in global supply and demand, geopolitics and inventory levels, international oil prices are expected to fluctuate at medium to high levels,” Sinopec noted. “Our company will put more focus on value creation with priority given to profit generation, transition, upgrading, reform, innovation, and risk control,” it said. Sinopec 2024 forecasts 2024E* 2023 change Crude production (million barrels) 279.06 281.12 -0.7% Natural gas outputs (billion cubic feet) 1,379.70 1,337.82 3.1% Crude throughput (million tonnes) 260 257.52 1.0% Refined oil products output (million tonnes) 159 156 1.9% Domestic sales of oil products (million tonnes) 191 188.17 1.5% Ethylene production (million tonnes) 14.35 14.31 0.3% Capital expenditure (CNY billion) 173 176.8 -2.1% *Sinopec estimates Focus article by Fanny Zhang ($1 = CNY7.21) Thumbnail image: At the container terminal of Nanjing Port in Jiangsu Province, China, on 19 March 2024.(Costfoto/NurPhoto/Shutterstock)

25-Mar-2024

AFPM '24: INSIGHT: Biden ending term with regulatory bang for US chems

HOUSTON (ICIS)–The administration of US President Joe Biden is proposing a wave of regulations before its term ends in 2025, many of which will increase costs for chemical companies in the US and persist even if the nation elects a new president later this year. The prospect of such consequential policies comes as delegates head into this year's International Petrochemical Conference (IPC), hosted by the American Fuel & Petrochemical Manufacturers (AFPM). Changes to the Clean Waters Act, the Risk Management Program (RMP) and the Hazard Communication Standard are among the most consequential policies being considered by US regulators. Electric vehicles (EVs) could receive more support from federal and state governments. This would increase demand for plastics used in EVs while discouraging refiners from making further investments, which could limit US production of benzene, toluene and mixed xylenes (MX). The failure of Congress to re-authorize the nation's chemical site security program could spell its end. REGULATORY PUSH DURING ELECTION YEARSuch a regulatory push by the Biden administration was flagged last year by the Alliance for Chemical Distribution (ACD), the new name for the National Association of Chemical Distributors (NACD). The group was not crying wolf. The next nine months could rank among the worst for the chemical industry in terms of regulatory change and potential issues, said Eric Byer, president of the ACD. "Whatever it's going to be, it will come done fairly aggressively." The Biden administration has proposed several consequential policies. For the Clean Water Act, the Environmental Protection Agency (EPA) is developing new requirements, which will require chemical producers and other companies to develop plans to address the worst possible discharge from their plants. The ACD warned that the new requirement would raise compliance costs while doing little to reduce the already small number of discharges by plants. The final rule is scheduled to be published in April 2024. For the RMP, changes could require chemical companies to share information that has been off limits since the 9/11 terrorist attacks, according to the American Chemistry Council (ACC). The concern is that the information will fall into the wrong hands, while significantly increasing costs to comply with the new requirements, according to the ACD. The Occupational Safety and Health Administration (OSHA) is introducing changes to its Hazard Communication Standard that could create more burdens for companies. The ACD warned that some of the changes will increase costs without providing a commensurate improvement in safety. The EPA has started the multiyear process that, under the regulator's current whole-chemical approach, will lead to restrictions imposed on vinyl chloride monomer (VCM), acrylonitrile (ACN) and aniline, a chemical used to make methylene diphenyl diisocyanate (MDI). This is being done through the nation's main chemical safety program, known as the Toxic Substances Control Act (TSCA). MORE POLICIES PROPOSED FOR EVsThe Biden administration is proposing additional polices to encourage the adoption of EVs. For chemical producers, more EVs would increase demand for plastics, resins and thermal management fluids that are designed to meet the material challenges of these automobiles. At the same time, the push towards EVs could limit sales of automobiles powered by internal combustion engines (ICEs), lowering demand for gasoline and diesel. Refiners could decide to shut down and repurpose their complexes if they expect demand for their main products will stop growing or decline. That would lower production of aromatics and other refinery chemicals and refined products. The Biden administration is moving on three fronts to encourage EV sales. The EPA is expected to decide if California can adopt its Advanced Clean Car II (ACC II), which would phase out the sale of ICE-based vehicles to 2035. If the EPA grants California's request, that would trigger similar programs in several other states. The EPA's light-duty vehicle proposal would impose stricter standards on tail pipe emissions. The US Department of Transportation (DOT) is proposing stricter efficiency standards under its Corporate Average Fuel Economy (CAFE) program. The AFPM opposes these measures. It said the EPA's light-duty vehicle proposal and DOT's new CAFE standards are so demanding, it would force automobile companies to produce a lot more EVs, plug-in hybrids and fuel-cell vehicles to meet the more ambitious requirements. LAX OVERSIGHT OF SHIPPING RATES IN WAKE OF HOUTHISThe ACD raised concerns that the US is not doing enough to address the possibility that shipping rates and delays have increased beyond what could be justified by the disruptions caused by the drought in Panama and by the Houthi attacks on vessels passing through the Red Sea to the Suez Canal. The ACD accepts that costs will rise, but it expressed concerns that shipping companies could be taking advantage of the situation by charging excessive rates on routes unaffected by the disruptions. These include routes from India and China to the western coast of the US, Byer said. "Why are you jacking up the price two or threefold?" LABOR NEGOTIATIONS FOR US EAST COASTThe work contract will expire this year for dockworkers and ports along the East Coast of the US. Byer warned of a possible strike if the talks become too contentious. On the West Coast, dockworkers and ports reached an agreement on a six-year work contract. CFATS ON LIFE SUPPORTByer expressed concerns about the future of the main chemical-site security program, called the Chemical Facility Anti-Terrorism Standards (CFATS). CFATS is overseen by the Cybersecurity & Infrastructure Security Agency (CISA), which is under the Department of Homeland Security (DHS). CISA lost authority to implement CFATS on 28 July 2023, when a bill that would have re-authorized it was blocked from going to a vote in the Senate. Without CFATS, other federal and state agencies could create their own chemical-site security regulations. This process has already started in the US state of Nebraska, where State Senator Eliot Bostar introduced LB1048. Other nearby states in the plains could introduce similar bills, because they tend to follow each other's lead, Byer said. Many of these state legislatures should wrap up sessions in the next couple of months, so lawmakers still have time to propose chemical-site security bills. The ACD is most concerned about larger states creating chemical-site security programs, such as California, Illinois, New Jersey and New York. SENATE RAIL BILL REMAINS PENDINGA Senate rail safety bill has been pending for more than a year after a bipartisan group of legislators introduced it following the train derailment in East Palestine, Ohio. Congress has about 10 months to approve the bill before it lapses, Byer said. For bills in general, action during an election year could happen around the Memorial Day holiday in May, the 4 July recess, the August recess or before the end of September. After September, legislators will be focused on campaigning for the 5 November election. TEXAS BRINGS BACK TAX BREAKS FOR INDUSTRIAL PROJECTSTexas has revived a program that granted tax breaks to new chemical plants and other large industrial projects. The new program is called the Texas Jobs and Security Act, and it replaced the lapsed Chapter 313 School Value Limitation Agreement. The old program was popular with chemical companies, and their applications were among the first public disclosures of their expansion plans. The new program has already attracted applicants. Summit Next Gen is considering a plant that would convert 450 million gal/year of ethanol into 256 million gal/year of sustainable aviation fuel (SAF). Hosted by the AFPM, the IPC takes place on March 24-26. Insight article by Al Greenwood Thumbnail shows a federal building. Image by Lucky-photographer

18-Mar-2024

Americas top stories: weekly summary

HOUSTON (ICIS)–Here are the top stories from ICIS News from the week ended 15 March. US CPI inflation 'sticky' at 3.2%, may delay Fed rate cuts – ICIS economist US inflation, as measured by the consumer prices index (CPI), rose 0.4% month on month in February, leaving it up 3.2% year on year, the Bureau of Labor Statistics (BLS) reported on Tuesday. LyondellBasell sees signs of modest improvement in Q1 – CEO LyondellBasell is seeing some indications of modest improvement in its businesses, particularly in North America and Europe, with packaging being the strongest end market, its CEO said on Wednesday. US Trinseo seeks to sell stake in AmSty Trinseo has started the process to sell its 50% stake in Americas Styrenics (AmSty), the US-based engineered materials producer said on Wednesday. US outage to boost March Asia-Atlantic spot acetic acid, VAM trades Asia-Atlantic spot trades for acetic acid and vinyl acetate monomer (VAM) are expected to increase after supply gaps in the US and Europe emerged following an unexpected plant outage in the US. Potential for oil market deficit in 2024 as demand expectations grow – IEA Higher oil demand expectations and fresh production cuts from the OPEC+ alliance could push the 2024 crude market balance from a surplus to a slight deficit if the voluntary reductions remain in place for the rest of the year, according to the International Energy Agency. INSIGHT: US aromatics, refining output recedes as peak oil approaches Peak oil demand in the US could lead to a further decline in refining capacity, which will tighten supplies of benzene, toluene and xylenes (BTX) for downstream chemical producers. Unipar expects hardship in Argentina but Brazil PVC demand should recover Unipar’s operations in Argentina are set to face pressure from the current recession but a bright spot could appear in higher civil engineering activity in Brazil, propping up demand for polyvinyl chloride (PVC), the Brazilian chemicals producer said on Friday.

18-Mar-2024

Europe top stories: weekly summary

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 15 March. Europe ethylene and propylene sentiment cautiously optimistic for remainder of H1 Given the better-than-expected demand conditions, with improved sales volumes and higher prices lifting many out of the mire that was 2023, the question on everyone’s lips is how long can we expect this state of affairs to last. Potential for oil market deficit in 2024 as demand expectations grow – IEA Higher oil demand expectations and fresh production cuts from the OPEC+ alliance could push the 2024 crude market balance from a surplus to a slight deficit if the voluntary reductions remain in place for the rest of the year, according to the International Energy Agency. Surging PET bottle bale prices threaten to ‘destroy’ Europe’s R-PET market Feedstock bale prices hit €930/tonne ex-works in Poland on Monday, prompting recycled PET participants to suggest such price levels threaten to destroy the R-PET market as they fear a repeat of 2022’s disastrous price volatility. Europe acetic acid, VAM contract talks for March focus on supply disruption March negotiations are underway for European acetic acid and vinyl acetate monomer (VAM) contract pricing with security of supply a key influence on negotiations amid LyondellBasell’s force majeure in the US and other disruptions to global trade flows. Caution caps optimism as peak season arrives for Europe styrene market Spot activity in the Europe styrene market was moderate in the week ended 8 March, as players attended a key industry event, while cautious and conservative sentiment persisted alongside crosswinds from ongoing demand weakness and thin liquidity, high feedstock costs and reduced availability. Participants pointed to only slight improvements in demand and market optimism from levels seen in 2023. Europe cracker margins up on firmer ethylene, co-products pricing Cracker margins in Europe rose in the week on the back of firmer ethylene and co-product pricing, ICIS Margin Analysis showed on Monday.

18-Mar-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 15 March 2024. INSIGHT: Indorama exit from PET feedstock markets to spur China PTA exports By Nurluqman Suratman 15-Mar-24 11:42 SINGAPORE (ICIS)–Demand for China’s purified terephthalic acid (PTA) will get a boost as Indorama Ventures Ltd (IVL), a global producer of downstream polyethylene terephthalate (PET), shifts away from expensive integrated operations. INSIGHT: Policies announced in China Two Sessions will impact domestic petchems market in 2024 By Jimmy Zhang 14-Mar-24 23:07 SINGAPORE (ICIS)–China's Two Sessions earlier this month – the yearly meetings where its legislature sets laws and its advisory body offers policy recommendations – attracted attention from the market for the growth targets set and announcements on expected future economic development. According to Premier Li Qiang, China's GDP growth target is “around 5.0%”. US outage to boost March Asia-Atlantic spot acetic acid, VAM trades By Hwee Hwee Tan 14-Mar-24 12:26 SINGAPORE (ICIS)–Asia-Atlantic spot trades for acetic acid and vinyl acetate monomer (VAM) are expected to increase after supply gaps in the US and Europe emerged following an unexpected plant outage in the US. Asia caustic soda market could be underpinned by snug supply, limited vessel space By Jonathan Chou 13-Mar-24 15:40 SINGAPORE (ICIS)–Asia's liquid caustic soda spot supply may remain snug in the near term, while demand could continue its gradual growth into the second quarter (Q2) of 2024. PODCAST: China Group III base oils market sees supply, demand changes By Whitney Shi 12-Mar-24 15:53 SINGAPORE (ICIS)–In this podcast, ICIS Senior Industry Analyst Whitney Shi and ICIS Assistant Industry Analyst Jady Ma talk about supply and demand changes in China’s Group III base oils market. Saudi Aramco '23 profit falls on softer crude; ’24 focus on downstream growth By Nurluqman Suratman 11-Mar-24 12:37 SINGAPORE (ICIS)–Energy giant Saudi Aramco's net profit in 2023 fell by 24.7% to Saudi riyal (SR) 454.8bn ($121.3bn), weighed by weaker crude oil prices as well as lower refining and chemical margins.

18-Mar-2024

INTERVIEW: German biofuels producer Verbio develops ethenolysis-based renewable chemicals project

LONDON (ICIS)–German biofuels producer Verbio is pushing into renewable chemicals with a €80 million -100 million commercial-scale ethenolysis project that will use rapeseed-based biodiesel to produce specialty chemicals. Strategic move to renewable chemicals; 17,000 tonnes/year of 1-decene, 32,000 tonnes/year of methyl 9-decenoate, (9-DAME); Produced from renewable rapeseed methyl ester (RME), using ethenolysis and innovative metathesis catalysts. Ethenolysis is a chemical process in which terminal olefins are degraded. In chemical terms, it is a cross metathesis. The "VerBioChem" project, adjacent to Verbio’s bio-refinery at the Bitterfeld chemicals production hub in Saxony-Anhalt state, is expected to be commissioned in 2025, Andreas Kohl, the company's head of specialty chemicals and catalysts, told ICIS. Regular production at the "first-of-its-kind" commercial-scale ethenolysis  plant should start in 2026, he said. Groundbreaking is scheduled for May. “To our knowledge, it will be the only plant worldwide to operate an ethenolysis process,” he said. 1-decene is mainly used to produce polyalphaolefins (PAO), which are used as group IV lubricants, Kohl said. The 1-decene market is estimated at about 500,000-700,000 tonnes/year, according to Kohl.  Producers of fossil-based 1-decene include INEOS, ExxonMobil, and Chevron Phillips Chemical (CPChem), among others. 9-DAME has applications in surfactants, lubricants, polymers and other specialty markets. While 9-DAME is currently not available on the market in larger quantities, Verbio sees it as a “platform molecule” for use in solvents, surfactants and lubricants, Kohl said. The Bitterfeld plant might also produce C18 diacids in various forms in the medium term, he said. Verbio has been in contact for a couple of years with partners and on request supplies customers with kilogram samples of 1-decene and 9-DAME from a pilot plant, he added. UNIQUE CATALYSTSThe company has developed a unique in-house process for ethenolysis, based on proprietary metathesis catalysts from its 100%-owned subsidiary, XiMo, Kohl said. The process allows the use of ethylene “as kind of a scissor” to split the biodiesel, he said. XiMo specializes in metathesis catalysts, specifically of "Schrock-type" tungsten, molybdenum and ruthenium complexes, he said. Richard Schrock, one of the founders of XiMo, was co-winner of the 2005 Nobel Prize in chemistry for his work on developing the olefin metathesis method in organic synthesis. To serve the ethenolysis plant’s captive needs, as well as the wider chemical industry, XiMo is investing in new capacity close to Budapest, Hungary The 10 tonne/year of metathesis catalyst project in Hungary, which will proceed parallel with the ethenolysis project in Bitterfeld, is due to be in production in 2026. XiMo’s metathesis catalysts “represents a new tool for the chemical industry", for use in industrial processes in the renewable, polymer, flavors and fragrances, agrochemicals and various other markets, Kohl said. STRATEGIC SHIFT TO CHEMICALS Verbio's biofuels are mainly sold into the energy market, “but this is not necessarily the future for us”, Kohl said. While the company has existing biodiesel-linked chemicals production (phytosterol and glycerin), it decided several years ago to expand in renewable chemicals in a bigger way – driven by an ambition to add more value to biodiesel, reduce Verbio's dependence on the biofuels energy market, and help "defossilize" the chemical industry, he said. “We want to become much more independent of the political decisions that are influencing the biofuels market, and chemicals will be a major part of the company in the future,” Kohl said. Although the chemical industry keeps working to reduce its carbon footprint, most of its products are based on carbon and will continue to be so, he said. The challenge, therefore, is to defossilize the industry, which means getting away from fossil-based carbon, leaving three main sources of carbon: carbon capture; recycling; and biomass, Kohl said. “Biomass is a very versatile, a very interesting source of carbon, and it is here today” as companies are already producing chemicals from biomass, he said. Verbio, with its expertise in biomass, is well positioned to expand in renewable chemicals, he said. With the ethenenolysis plant, Verbio will start to serve the chemical industry “with unique, renewable and biobased molecules with a low CO2 footprint”, Kohl said. “This will enable our customers to take a big step towards climate neutrality, saving CO2, attacking scope three emissions, and it will help to defossilize the chemical industry,” he said. The carbon footprint of the new ethenolysis plant will be “at least” about 70-80% lower than that of a fossil-based 1-decene plant, he said. Verbio is undertaking the project’s basic engineering and execution in-house, rather than contracting it out, he noted. FOOD VERSUS CHEMICALS Rapeseed (known as canola in North America) is readily available in Germany as it is part of crop rotation, Kohl said. While using rapeseed for chemical production could trigger debates similar to the “food versus fuels” controversy, it is important to realize that only about 40% of the mass of rapeseed is oils, he said. The remaining 60% is a protein-sugar fraction that is needed in cattle feed “to close the protein gap” and thus supports the food sector. If Germany did not have the rapeseed protein, it would have to import even more soya from South America, he said. He also noted that the use of biomass to make biofuels and other renewable products has been found to stabilize the overall agricultural market in Europe and provide farmers with sustainable income, thus keeping them in business. Verbio at a glance: Sales for the 12 months ended 30 June 2023: €1.97 billion. Employees: about 1,200. Operations in Germany, Poland, Hungary, India, US and Canada. Production of biodiesel and bioethanol: nearly 930,000 tonnes. Production of biomethane: 1.08 GWH. Existing chemical production: phytosterol and biodiesel glycerol (glycerin) CEO: Claus Sauter Headquarters: Zorbig, near Leipzig, Germany Source: Verbio Thumbnail photo source: Verbio Interview article by StefanBaumgarten.

13-Mar-2024

BLOG: China PX net annual average imports may fall to 700,000 tonnes in 2024-2030

SINGAPORE (ICIS)–Click here to see the latest blog post on Asian Chemical Connections by John Richardson: Only a few people thought that China would reach self-sufficiency in purified terephthalic acid (PTA). I was among the few. Now China is a major PTA exporter. This followed China swinging from being the world’s biggest net importer of polyester fibres and polyethylene terephthalate (PET) resins (bottle and film grade) to being the biggest net exporter. Paraxylene (PX) could be the next shoe to drop as today’s post discusses. Given China’s total domination of global PX net imports – and the concentration of major PX exports in just a small number of countries and companies – the potential disruption to the global business is huge. The ICIS Base Case assumes China’s PX demand growth will average 1% per annum in 2024-2030 with the local operating rate at 82%. Such an outcome would lead to China’s net PX imports at annual average of 7.4m tonnes in 2024-2030. This would compare with 2023 net imports of 9.1m tonnes. Downside Scenario 1 sees demand growth the same as in the base case. But under Downside Scenario 1, I raise the local operating rate to 88%, the same as the 1993-2023 average. I also add 6.2m tonnes/year to China’s capacity, which comprises unconfirmed plants in our database. Downside 1 would result in net imports dropping to a 2024-2030 annual average of just 1.5m tonnes/year. Downside Scenario 2 again sees demand growth the same as in the base case, an operating rate of 90% and 6.2m tonnes/year of unconfirmed capacity Net imports would fall to an annual average of just 700,000 tonnes a year. As an important 26 February 2024 Financial Times article explores, China continues to build free-trade agreements with Belt & Road Initiative (BRI) and non-BRI member countries as a hedge against growing geopolitical differences with the West. We could thus see a significant shift in trading patterns as more Chinese apparel and non-apparel production moves offshore to these countries, with the overseas plants fed by China-made polyester fibres. China could thus maintain its dominance of the global polyester value chain via this offshoring process, thereby compensating for its rising labour costs. Offshoring to the developing world may also enable China to make up for any lost exports of finished polyester-products to the West due to increased trade tensions. This shift in downstream investments and trade flows could provide economic justification for just about complete PX and mono-ethylene glycols (MEG) self-sufficiency, which will be the subject of a future post. These are the only two missing pieces in China’s polyester jigsaw puzzle. Editor’s note: This blog post is an opinion piece. The views expressed are those of the author, and do not necessarily represent those of ICIS.

13-Mar-2024

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