Engineering plastics (POM, PBT)

SAO PAULO (ICIS)–Here are some of the stories from ICIS Latin America for the week ended on 12 April. NEWS Argentina’s inflation up to 288% in March, but central bank cuts rates on ‘pronounced slowdown’Argentina’s annual rate of inflation rose to 287.9% in March, up from 276% in February, the country’s statistical agency Indec said on Friday. Argentina to scrap import duty on urea and UAN fertilizer In Argentina, the government plans to remove import duties on urea and urea ammonium nitrate (UAN), which are currently at 5.4% and 3.6% respectively, said Economy Minister Luis Caputo on X, formerly Twitter. Brazil’s inflation falls below 4% in March Brazil’s annual rate of inflation fell to 3.93% in March, down from 4.50% in February, and its lowest reading since June 2023, the country’s statistical agency IBGE said on Wednesday. Brazil’s Unigel ‘vehemently’ denies irregularities in Petrobras contract Unigel has “vehemently refuted” the existence of any irregularity in its tolling contract with Petrobras for two fertilizers plants, the Brazilian chemicals producer said on Wednesday. Mexico’s inflation down to 4.2% in March Mexico’s annual rate of inflation fell in March to 4.2%, down from 4.40% in February, the country’s statistics agency Inegi said on Tuesday. Argentina PVC sector faces headwinds amid infrastructure investment reductions Argentina polyvinyl chloride (PVC) sector faces challenges as the government reduces infrastructure investments in 2024, with an estimated 7.5% decrease in projects. Chile inflation falls to 3.7% in March Chile’s annual inflation rate fell in March to 3.7%, down from 4.5% in February, according to the country’s statistics office INE. Brazil’s automotive output barely up in Q1, sales rise 9% Brazil’s petrochemicals-intensive automotive output rose by 0.4% in the first quarter, year on year, to just below 550,000 units, the country’s trade group Anfavea said on Monday. PRICING LatAm PP domestic prices fall in Chile, Mexico on competitive offers from abroad, lower US spot PGP prices Domestic prices fell in Chile, Mexico due to competitive offers from abroad and lower US spot propylene costs. In other Latin American (LatAm) countries, prices were unchanged. LatAm PE international prices stable to down on lower US export prices International polyethylene (PE) prices were assessed as stable to down across Latin American (LatAm) countries on the back of lower US export prices. Weather conditions start to slightly shift PET demand in Latin America Polyethylene terephthalate (PET) prices remained stable in Brazil, with a slight softening in consumption coinciding with stabilized temperatures. However, demand continues to exceed expectations when compared with the corresponding period last year.

15-Apr-2024

HOUSTON (ICIS)–Here are the top stories from ICIS News from the week ended 12 April. Oil slumps by more than $2/bbl on Israel-Hamas ceasefire hopes Oil prices fell by more than $2/barrel on Monday amid easing tensions in the Middle East after Israel further withdrew troops from southern Gaza and signalled a willingness to resume ceasefire talks with Palestinian militant group Hamas. EPA’s final rule on US chem plant emissions could weigh on EO production – ACC The US Environmental Protection Agency (EPA) finalized a rule on Tuesday aimed at reducing hazardous air pollutants from chemical plants, which some think could weigh on production of key chemistries and could lead to higher costs being passed through to consumers. INVISTA to explore alternatives for nylon fibers business INVISTA plans to explore strategic alternatives for its nylon fibers business and has engaged Barclays as exclusive financial advisor during the exploration process, the US-based manufacturer of chemical intermediates, polymers and fibers said in a statement late on Tuesday. US East Coast PET bale prices steadily rise amid snug supply, rising beverage demand Despite historic patterns, East Coast polyethylene terephthalate (PET) bottle bale prices have risen only slightly and very steadily over the last several weeks. Crude demand expectations fall for 2024 as trends shift back to pre-COVID pattern – IEA The International Energy Agency (IEA) on Friday cut crude oil demand forecasts for the year, with rates expected to fall further next year as consumption returns to the pre-COVID-19 trend, increasing the odds of a peak in oil consumption this decade, the agency said. Argentina’s inflation up to 288% in March, but central bank cuts rates on ‘pronounced slowdown’ Argentina’s annual rate of inflation rose to 287.9% in March, up from 276% in February, the country’s statistical agency Indec said on Friday.

15-Apr-2024

HOUSTON (ICIS)–Shipping container rates continue to fall, liquid chemical tanker rates are stable to softer, and the bridge collapse at the Port of Baltimore has led to longer delivery times for imports, highlighting this week’s logistics roundup. CONTAINER RATES Rates for shipping containers from east Asia and China to the US continue to fall along with average global rates as capacity remains ample to handle the longer routes as commercial vessels continue to avoid the Suez Canal. Supply chain advisors Drewry said average rates ticked lower this week but remain 64% higher than the same week a year ago, as shown in the following chart. Rates from Asia to the US and Europe have also continued to fall, as shown in the following chart. Drewry said it expects a minor decrease in Transpacific spot rates and for stability along the Transatlantic and Asia-Europe trade lanes. Judah Levine, head of research at online freight shipping marketplace and platform provider Freightos, said rates along the US East Coast have fallen since the collapse of the Key Bridge in Baltimore, which signals to him that regional container traffic continues to flow. Levine said downward pressure will continue because of soft demand and it being the slow season for container trade, but that if threats persist in the Red Sea and commercial vessels continue to divert away from the Suez Canal, prices will remain above normal. Container ships and costs for shipping containers are relevant to the chemical industry because while most chemicals are liquids and are shipped in tankers, container ships transport polymers, such as polyethylene (PE) and polypropylene (PP), which are shipped in pellets. They also transport liquid chemicals in isotanks. PORT OF BALTIMORE The Unified Command (UC) continues to remove containers from the Dali and clear wreckage from the collapsed bridge at the entrance to the Port of Baltimore. Source: Key Bridge Response 2024 While the closure of the port has not had a direct impact on the flow of chemicals, a market participant in Ohio said it is seeing delays in delivery times for imports as vessels originally destined to offload in Baltimore are getting re-routed to other ports. The US Army Corps of Engineers (USACE) expects to open a limited access channel 280 feet wide and 35 feet deep by the end of April, and are aiming to reopen the permanent, 700-foot-wide by 50-foot-deep federal navigation channel by the end of May, restoring port access to normal capacity. As of 11 April, approximately 38 containers have been removed, the UC said, which is necessary for safe access to them begin removing the segments of the fallen bridge that lie across the ship’s bow. While marine traffic is still limited, 69 vessels have transited through since the creation of the temporary alternate channels. LIQUID CHEM TANKERS US liquid chemical tanker freight rates as assessed by ICIS held mostly steady this week – except from the US Gulf Coast (USG) to India. There is downward pressure on rates along the USG-Asia trade lane as several outsiders have come on berth for both April and May, adding to the available tonnage for completion cargos. On the other hand, rates from the USG to Rotterdam were steady this week even as space is limited and there are no outsiders on berth. Contract tonnage continues to prevail, with continued interest in styrene, MTBE and ethanol. There has been activity on the spot market, but owners are still working with COA customers to finalize their needs before committing to others. For the USG to South America trade lane rates remain steady with several inquiries for methanol widely viewed in the market. PANAMA CANAL Wait times for non-booked vessels ready for transit edged higher both directions this week, according to the Panama Canal Authority (PCA) vessel tracker and as shown in the following image. Wait times last week were 0.8 days for northbound traffic and 0.8 days for southbound traffic. Please see the Logistics: Impact on chemicals and energy topic page With additional reporting by Emily Friedman and Kevin Callahan

12-Apr-2024

LONDON (ICIS)–Senior Editor for Recycling, Matt Tudball, discusses the latest developments in the European recycled polyethylene terephthalate (R-PET) market, including: Colourless (C) flake prices rise in NWE, UK EU Commission definitive ADD on Chinese PET, R-PET come into force Polish C bales drop from March highs Food-grade pellet demand uncertain ahead of 2025

12-Apr-2024

MUMBAI (ICIS)–Indian producer Mundra Petrochemicals Ltd has awarded engineering services company Nuberg EPC a contract to build its new 2,200 tonne/day chlor-alkali project in the western Gujarat state. “The project entails construction of the caustic soda plant within the 1m tonnes/year green polyvinyl chloride (PVC) project in Mundra, Gujarat,” Nuberg said in a statement on 11 April. Nuberg expects to complete the project within 15 months, without disclosing financial details of the contract. Nuberg EPC is a global engineering and turnkey project management company based in Noida in the northern Uttar Pradesh state. Mundra Petrochemical is a subsidiary of Adani Enterprises Ltd, which is owned by major Indian conglomerate Adani Group. The caustic soda project forms part of the Adani Group’s 2m tonne/year greenfield PVC project in Mundra. In March 2023, the company halted construction of the PVC project as it worked to secure project funding. A consortium of banks led by state-owned State Bank of India had agreed in July last year to finance a significant part of the company’s PVC project, according to media reports. The project involves setting up a 2m tonnes/year PVC plant in two phases with the first phase expected to be commissioned in the fiscal year ending March 2026.

12-Apr-2024

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 5 April. India’s urea imports plunge in January as country plans to end imports by 2025 In India, urea imports were at 400,542 tonnes in January, down 69% from 1.3m tonnes in January 2023 as requirement for fresh purchases decreased due to above average stock availability, according to customs data. European Commission implements definitive dumping duties on China PET As of 3 April, certain types of polyethylene terephthalate (PET) originating from the People’s Republic of China (PRC) will be subject to anti-dumping duties imposed by the European Commission. Costs, margins a pressing concern in the Europe epoxy industry, talks firmer for April The continued uptrend in raw material costs is piling on the pressure in the Europe epoxy industry and triggering price rise proposals for April, as profitability issues mount. Eurozone inflation declines further in March as energy costs drop, food inflation slows Inflation in the eurozone continued its slow downturn in March, falling to 2.4%, Eurostat said on Wednesday, as energy price declines continued and upward pressure on food and industrial goods lessened.

08-Apr-2024

SINGAPORE (ICIS)–Neste will be supplying renewable feedstock to South Korea’s Lotte Chemical for the production of polymers and chemicals, the Finland-based refiner said on Monday. "Lotte Chemical will use Neste RE at the company’s Korean sites to produce various common types of plastics and chemicals in Lotte Chemical’s broad product portfolio," it said in a statement. "With chemicals and plastics still largely depending on fossil resources, both companies see an urgent need to make a switch to more sustainable alternatives." Neste RE is a ISCC (International Sustainability and Carbon Certification)-certified feedstock for polymers and chemicals made from renewable raw materials such as waste and residue oil and fats. Financial details and timeline of the collaboration were not disclosed.

08-Apr-2024

HOUSTON (ICIS)–Rates for shipping containers from east Asia and China to the US continue to slide, liquid chem tanker rates surged from the US Gulf to Europe and Asia, and the US Army Corps of Engineers (USACE) plans to open the Port of Baltimore by the end of the month after the Francis Scott Key bridge collapsed on 26 March, highlighting this week’s logistics roundup. PORT OF BALTIMORE US President Joe Biden toured the site on Friday and noted that the US Army Corps of Engineers (USACE) has announced a plan to have the channel open by the end of April. “In collaboration with industry partners, USACE expects to open a limited access channel 280 feet wide and 35 feet deep,” USACE said on Thursday. “This channel would support one-way traffic in and out of the Port of Baltimore for barge container service and some roll on/roll off vessels that move automobiles and farm equipment to and from the port.” USACE engineers are aiming to reopen the permanent, 700-foot-wide by 50-foot-deep federal navigation channel by the end of May, restoring port access to normal capacity. While not a big hub for chemical imports/exports, the closure of the Port of Baltimore because of the bridge collapse will have some ripple effects for logistics in the region. US-based catalyst producer WR Grace said operations at its Curtis Bay Manufacturing site, located to the northwest of the collapsed bridge, have been unaffected despite its proximity to the accident site. Chemicals make up only about 4% of total tonnage that moves through the port, according to data from the American Chemistry Council (ACC). The ACC said less than 1% of all chemicals involved in waterborne commerce, both domestic and trade volumes, pass through Baltimore. The value of chems that pass through the port is significant, the ACC said, totaling $954 million in 2023, which averages about $3 million/day or $18 million/week. CONTAINER RATES CONTINUE TO SLIDE Rates for shipping containers from Asia to the US continue to fall, in line with the decline in average global rates. The following charts from supply chain advisors Drewry show the decrease in average global rates and from Shanghai to the US and Europe. Judah Levine, head of research at online freight shipping marketplace and platform provider Freightos, said rates could be nearing “a diversion-adjusted floor”. “Decreases from January/February peaks on the impacted ex-Asia lanes have slowed in recent weeks, and recent rate announcements by some carriers suggest they are hoping to keep rates at the $3,000-$3,500/FEU (40-foot equivalent unit) level to Europe and $3,500-$4,300/FEU level to the Mediterranean this month,” Levine said. LIQUID TANKER RATES SURGE US chemical tanker freight rates assessed by ICIS rose this week on the major trade lanes – from the US Gulf (USG) to ARA and to Asia. For larger parcels, spot rates ticked higher to both regions as several outside vessels have expressed interest to come on berth for this route in April and for May. This in turn, has curbed the rates from rising any further and somewhat modest. Premiums for discharge in China have also closed the gap on main port rates, as China’s activity buying glycol has picked up. From the USG to Rotterdam also has strengthened following the recent Easter holiday, as strong interest in EDC has been seen in the market. There has been activity on the spot market, but owners are still working with COA customers to finalize their needs before committing to others. PANAMA CANAL Wait times for non-booked vessels ready for transit fell to below one day in both directions this week, according to the PCA's vessel tracker and as shown in the following image. Wait times last week were 2.7 days for northbound traffic and four days for southbound traffic. Additional reporting by Kevin Callahan

05-Apr-2024

LONDON (ICIS)–Senior Editor for Recycling, Matt Tudball, discusses the latest developments in the European recycled polyethylene terephthalate (R-PET) market, including: Colourless flake prices rise in NWE, southern and eastern Europe Calmer April sentiment compared to Q1 UK bale, flake prices volatile Outlook still soft for food-grade pellets

05-Apr-2024

SINGAPORE (ICIS)–South Korea's Hyosung TNC is investing $1 billion to build multiple bio-textile materials plants in Vietnam's Ba Ria-Vung Tau province, starting with a new 50,000 tonnes/year bio-butanediol (bio-BDO) plant slated for start-up in 2026. The company aims to eventually boost its overall bio-BDO production capacity in Vietnam to 200,000 tonnes/year and will be establishing a vertically integrated production system for bio-spandex, from raw material to fiber, the company said in a statement on 2 April. Hyosung TNC is the fiber production unit of South Korean industrial giant Hyosung Group. BDO is a chemical used as a raw material for poly tetramethylene glycol (PTMG), which is used to make spandex fiber. Bio-BDO is produced by fermenting sugars derived from sugarcane, replacing traditional fossil raw materials such as coal. In addition to spandex fiber, BDO applications include engineering plastics, biodegradable packaging, and footwear soles. Hyosung TNC will produce bio-BDO at its factory in the southern Ba Ria-Vung Tau province, manufacture PTMG at a nearby factory in Dong Nai, located south of Ho Chi Minh City, and then use this to mass-produce its regen bio-spandex at the Dong Nai Spandex factory. As of this year, the global sustainable textile and fashion market is valued at around $23 billion, with an average annual growth rate exceeding 12.5%, according to Hyosung TNC. It is expected to grow to about $75 billion by 2030, including upstream and downstream businesses, it said. Hyosung TNC plans to increase the sales volume of sustainable spandex, which currently accounts for 4% of its total spandex sales, to about 20% by 2030. "The bio business will become a core pillar of Hyosung for the next 100 years. We will strengthen our global market presence based on sustainable bio materials,” Hyosung TNC chairman Hyun-Joon Cho said. The company’s future bio-BDO plants will be powered by technology from Geno, a US-based sustainable materials firm. Vietnam is the fourth-biggest economy in southeast Asia and is a net importer of petrochemicals. The southern Ba Ria-Vung Tau province is home to the country's first integrated petrochemical complex, which was recently completed and can produce around 1.4m tonnes/year of polyolefins. Thumbnail image: At a spandex production site in Asia, 18 March 2024 (Costfoto/NurPhoto/Shutterstock)

04-Apr-2024