Polypropylene (PP)

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With its unique properties and versatility, polypropylene (PP) is an invaluable global commodity, influencing key industries from packaging and automotive to electrical and household. Its ability to be manufactured into various end-uses such as plastic car parts and textiles has made PP an essential market to understand and navigate. Even the slightest change can have the most significant impact. This is why our experts are embedded in markets across the globe, monitoring, tracking and understanding developments affecting PP so you can make the best decisions with the right information.

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1 April 2024 | 11am to 11:45am SGT

Polypropylene (PP) news

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

Latin America stories: weekly summary

SAO PAULO (ICIS)–Here are some of the stories from ICIS Latin America for the week ended on 22 March. NEWS AFPM ’24: LatAm petchems brace for slow path to recovery with all eyes on ChinaThe petrochemicals downturn in Latin America is likely to be the longest ever as Chinese and global overcapacities dampen prices in the world’s quintessential “price taker” region for chemicals. Brazil’s Braskem losses widen in 2023 on poor polymers markets Losses at Braskem widened further in 2023 to more than $900 million on the back of poor market dynamics in polymers, the Brazilian petrochemicals major said late on Monday. Brazil’s Braskem pushes polymers recovery to 2026 despite some green shoots Braskem’s said on Tuesday a recovery in polymers prices in earnest will now only take place from 2026, with the Brazilian petrochemicals major posting again a poor set financial result. Argentina’s manufacturing down 6% in Q4, sector hardest hit amid GDP contraction Argentina’s petrochemicals-intensive manufacturing output fell by 6% in the fourth quarter, year on year, making the sector hardest hit by the recession, the country’s statistical office Indec said on Wednesday. Mexico’s central bank joins monetary policy easing, cuts rates to 11% Mexico’s central bank cut this week the main interest rate benchmark by 25 basis points to 11%, finally joining other Latin American central banks in easing borrowing costs as inflation has fallen consistently. Brazil's central bank cuts interest rates to 10.75% Brazil’s central bank cut again this week the main interest rate benchmark, the Selic, by 50 basis points to 10.75%. Brazil’s farmers import 40% more urea in February before end of season In Brazil, urea imports in February were at 490,328 tonnes, up 40% from 349,452 tonnes in February 2023 as farmers stepped up purchases ahead of the close of the season, according to customs data. PRICING AFPM ’24: LatAm PE margins remain squeezed on imports Polyethylene (PE) imports are expected to remain high throughout Latin America during the second quarter, with deliveries from the US to continue dominating. AFPM ’24: Latin America PP demand still in doldrums, supply ample on high imports Latin America polypropylene (PP) supply is to remain sufficient in coming months due to lackluster demand, with a high level of imports still the predominant feature. AFPM ’24: LatAm PS supply to remain ample; demand to drop due to seasonality Latin America’s polystyrene (PS) supply is to remain ample as demand continues to be weak. Ethanol prices rise amidst stable supply and demand in Brazil Prices for hydrous ethanol were assessed higher this week, with stable supply and demand across the country.

25-Mar-2024

Europe top stories: weekly summary

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 22 March. Much improved outlook from manufacturers in Germany The business climate for manufacturing in Germany improved markedly in March, the Munich-based ifo Institute said on Friday, with its latest survey results supporting wider views on an improving economy. Eurozone private sector moves closer to stability in March, UK firms The eurozone private sector came close to stabilising this month, driven by a more pronounced return to growth footing for services, but the disparity between a stronger southern Europe and ongoing weakness in France and Germany continued. INSIGHT: SAF catalyst technology could also boost biochemicals production Catalyst technology used to power the first transatlantic flight conducted by a commercial airline which used 100% sustainable aviation fuel (SAF), could also have applications in chemicals production if a market can be developed to allow for commercial scale up. INEOS to end ethanol production at Grangemouth in Q1 2025 Slowing demand and cheap imports were cited as the key reasons why INEOS decided to halt production of synthetic ethanol at its Grangemouth site in the UK in Q1 2025. Europe PE/PP contracts settle up from February, sentiment noticeably weaker In Europe, polyethylene (PE) and polypropylene (PP) contracts for March have settled up from February and above the monomer, although sentiment has weakened.

25-Mar-2024

LOGISTICS: US Gulf, East Coast ports, dock workers eye new contract; Asia-US container rates continue to fall

HOUSTON (ICIS)–Negotiations are ongoing for a new labor agreement between US Gulf and East Coast ports and the International Longshoremen’s Association (ILA), Asia-US shipping container rates continue to slide, and liquid chem tanker spot rates ex-US Gulf are steady to higher, highlighting his week’s logistics roundup. GULF COAST, EAST COAST LABOR NEGOTIATIONS The contract between US Gulf and East Coast ports and the ILA expires at the end of September. The ILA, representing about 14,500 dockworkers, will be negotiating with the United States Maritime Alliance (USMX), which is representing 36 ports, including three of the busiest ports in the US in Houston, New York and New Jersey, and Savannah, Georgia. This comes after US West Coast ports and the International Longshore and Warehouse Union (ILWU) negotiated a new deal in 2023, but only after a contentious period that saw some port disruptions. Eric Byer, president and CEO of the Alliance for Chemical Distribution (ACD) (formerly National Association of Chemical Distributors), said the safe, reliable, and timely shipment of chemicals and chemical products are essential to the health and well-being of the entire nation. “Shippers and businesses are wary of another labor contract dispute following the narrowly avoided West Coast labor strikes last year,” Byer said. “As another labor contract deadline approaches, ACD is monitoring developments of the ongoing negotiations between the East Coast and Gulf Coast ports and the ILA to remain vigilant of potential delays and diversions of shipments.” Byer noted that US businesses are already dealing with global shipping challenges in the Red Sea and Panama Canal, and a new labor dispute at US ports would only exacerbate these existing challenges and jeopardize the efficient and economic transport of essential chemicals. “That is why we urge the ports and the USMX to continue to negotiate in good faith with the ILA and to swiftly come to an agreement ahead of the contract expiration this fall,” Byer said. CONTAINER RATES Container rates from Asia to the US continue to fall, along with global rates, according to supply chain advisors Drewry and as shown in the following charts. Container rates remain well above the levels seen before Houthi rebels began attacks on commercial vessels in the Red Sea, leading almost all vessels to divert away from the Suez Canal. Rates surged because the longer route around the tip of the African continent tightened capacity. Shippers brought all floating capacity online, increased sailing speeds and brought into service newbuilds to help alleviate the situation. Softer overall demand also helped ease stressed supply chains. Judah Levine, head of research at online freight shipping marketplace and platform provider Freightos, said most observers expect rates to remain above typical levels as long as the diversions continue as even though supply chains have adjusted to the longer routes, there are still extra costs for fuel and labor that must be accounted for. With rates currently at two-and-a-half times what they were in 2019, Levine said there is still room for further declines, but he expects them to settle at a new, elevated floor. 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. LIQUID TANKER RATES US chemical tanker freight rates assessed by ICIS were steady to higher this week, as spot rates soared from the US Gulf (USG) to Brazil and edged higher on the USG to Amsterdam-Rotterdam-Antwerp (ARA). USG to Asia as spot rates remained overall unchanged. From the USG to Brazil, the spot market has picked up and is much tighter than it was a few weeks ago. The increased demand for space in March and into April has caused freight rates to significantly jump. Space is mostly gone until the latter half of April. From the USG to Asia, last week there was increased activity for smaller parcels that prompted owners to fill the void space from their contract of affreightment (COA) nominations and base cargoes. As a result, smaller parcel rates experienced downward pressure, but base cargo rates remained unchanged due to limited tonnage availability. PANAMA CANAL INCREASES DAILY TRANSIT SLOTS The Panama Canal Authority (PCA) added two additional Panamax slots and will add another slot on 25 March based on present and projected water levels at Gatun Lake. The PCA had said previously that it would reassess the number of slots after the rainy season in April/May. The increase will bring the number of daily transits allowed up to 27, which is still significantly lower than the average of 36-38 daily transits that were seen prior to the implementation of restrictions. But the PCA did not lower the limits to 18 in February as originally planned because of improved rainfall in the region. Wait times for non-booked vessels ready for transit edged lower this week, according to the PCA's vessel tracker. Wait times are 1.2 days for northbound traffic and 1.4 days for southbound traffic. Additional reporting by Kevin Callahan

22-Mar-2024

Brazil’s Braskem pushes polymers recovery to 2026 despite some green shoots

SAO PAULO (ICIS)–Braskem’s said on Tuesday a recovery in polymers prices in earnest will now only take place from 2026, with the Brazilian petrochemicals major posting again a poor set financial result. Global prices for some of Braskem's key products – such polyethylene (PE), polypropylene (PP) and polyvinyl chloride (PVC) – remain depressed and, despite some positive pricing signs at the start of 2024, this year will be again a difficult one. However, according to chemicals equity analysts on Tuesday, Braskem’s results could indicate certain improvements in its operating conditions. The company’s stock jumped as much as 6% in Tuesday morning trading, although the gains had moderated by the afternoon to just over 3%. Earlier on Tuesday, Braskem’s said its losses had widened in 2023, year on year, while its earnings before interest, taxes, depreciation and amortization (EBITDA) fell nearly 65%. However, investors on Tuesday preferred to focus on Tuesday in Q4’s EBITDA, which went into positive territory, compared to Q4 2024, as well as a more moderate fall in revenue. Braskem (in $ million) Q4 2023 Q4 2022 Change 2023 2022 Change Revenue 3,369 3,613 -7% 14,113 18,733 -25% Recurring EBITDA 211 -32 N.A. 743 2,060 -64% Net income -317 -326 -3% -935 -70 1,234% “Q4 continued to be a difficult period for the petrochemical sector, so we consider a positive Braskem’s slight improvement in some price levels and spreads. Meanwhile, we see the company exploring some of the competitive advantages of its assets,” said equity analysts at Brazilian broker XP Investimentos. “However, we think it is too early to interpret this as a structural turnaround for the sector in 2024.” A VERY LONG DOWNCYCLEBraskem’s quarterly results conference calls have become an affair in which the most valued answer is when the company expects the recovery in earnest to take place. During most of 2023, the company’s executives would say that the global markets would start recovering this year and give way to the upcycle in 2025 onwards. However, on Tuesday both the company’s CFO, Pedro Freitas, and his second on board, the head of investor relations, Rosana Avolio, made it clear that some green shoots appearing in coming quarters would not mount to what the producer would consider a recovery. “2024 will be the year of a transition towards normalization, but still within the downcycle. We expect prices to start recovering in 2025 and for them to achieve sustained, higher levels in 2026,” said Avolio. “However, prices at the start of 2024 are better than we were expecting,” she added. Freitas placed the beginning of the upcycle in 2026-2027. Other Latin American petrochemicals players are also expecting a recovery only in two- or three-years’ time. In February, Mexico’s Orbia said China’s PVC overcapacities were to cast a shadow globally until at least 2026 while announcing it was stopping any expansion in that material until prices went up to, at least, $1,200/tonne. Front page picture: Braskem’s facilities in the state of Sao Paulo, Brazil Source: Braskem

19-Mar-2024

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

BLOG: Why China’s HDPE net imports could average just 700,000 tonnes per year in 2024-2030

SINGAPORE (ICIS)–Click here to see the latest blog post on Asian Chemical Connections by John Richardson. The global petrochemicals industry must prepare for the possibility that China is close to self-sufficiency in high-density polyethylene (HDPE), low-density PE (LDPE), linear-low density PE (LLDPE), polypropylene (PP), paraxylene (PX) and mono-ethylene glycols (MEG) by 2030. As I work through the products, see today’s post on HDPE where I present the following three scenarios: The ICIS Base Case: An average China HDPE operating rate of 72% in 2024-2030 and average demand growth of 3%. This would lead to net imports averaging 7.6m tonnes a year. Downside Scenario 1: An average 82% operating rate, an additional 5.2m tonnes/year of unconfirmed capacity comes on-stream, and 3% average demand growth. Annual average net imports total 3.8m tonnes. Downside Scenario 2: An average 88% operating rate, an additional 5.2m tonnes/year of unconfirmed capacity comes on-stream, and 1.5% average demand growth. Annual average net imports total just 700,000 tonnes. Why do I see these alternative outcomes as possible? As regards operating rates you can argue that China’s new HDPE capacity will be super-efficient in terms of scale and upstream integration, including perhaps advantaged supplies of crude into refineries. There is a potential “win-win” here. The oil-to-petrochemicals majors, especially Saudi Aramco, are keen to underpin crude production levels given the threats to long-term global crude demand from sustainability. China is the world’s biggest crude importer. Petrochemical operating rates in China have historically been a political as well as an economic decision. China made the decision in 2014 to push towards complete petrochemicals self-sufficiency. Our base case demand growth estimate of 3% per annum between 2024 and 2030 is perfectly reasonable and well thought-out, as it reflects the big turn of events since the “Evergrande moment” in late 2021. Growth of 3% would be hugely down from the 12% average annual growth between 1992 and 2023 during the Petrochemicals Supercycle, which was mainly driven by China. I have therefore stuck with 3% demand growth in Downside Scenario 1 while raising the operating rate to 82% for the reasons described above. But I believe we need to go further to achieve proper scenario planning. Downside Scenario 2 takes demand growth down to 1.5% and raises the operating rate to 88% – the same as the actual operating rate in 1992-2023. If Downside 2 were to happen, HDPE pricing markets would be upended. No longer would landed-China prices be as relevant as China’s import volumes would be much lower than they are today. Demand patterns in and trade flows to the world’s remaining net import regions and countries – Europe, Turkey, Africa, South & Central America, Asia and Pacific and the Former Soviet Union – would become much more important. In short, the petrochemicals world would be turned on its head. Are you prepared for all the eventualities? 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.

08-Mar-2024

Lotte Chemical mulls 'strategic measures' for Malaysian-listed LC Titan

SINGAPORE (ICIS)–South Korean producer Lotte Chemical said on Thursday that it is exploring options for its Malaysian subsidiary, in response to local media reports that the unit is up for sale. "We are considering various strategic measures related to LC Titan [Lotte Chemical Titan] which is our subsidiary, but nothing has been decided so far," Lotte Chemical chief financial officer Seong Nak-sun said in a stock exchange filing. "We will re-announce the details within a month or when they are decided in the future," Seong added. Lotte Chemical and LC Titan could not be immediately reached for further comments on the potential sale. At 05:30 GMT, shares of the two listed companies were trading lower, with Lotte Chemical down 1.63% in Seoul, and LC Titan down 1.72% in Kuala Lumpur. According to media reports on Thursday, Lotte Chemical has already initiated the process of selling LC Titan, citing unnamed sources. "We're actively reviewing ways to optimize our portfolio, which includes considering the potential sale of LC Titan. However, a definitive decision has not yet been reached," an unnamed Lotte Chemical official was quoted by The Korea Economic Daily (KED) as saying. Lotte Chemical is approaching both domestic and international companies, along with private equity firms through investment banks, to be potential buyers for its Malaysian arm, KED reported. The Korean producer is planning to sell all outstanding shares of LC Titan traded on the Malaysian stock market, which is equivalent to 74.7% of the company, valuing the firm at around $550m based on current market capitalization, it added. LC Titan has incurred a second year of net loss, which widened to Malaysian ringgit (M$) 780.3m in 2023 as sales declined by 24% to M$7.65bn. Malaysia's LC Titan full-year financial results in thousand ringgit (M$) FY2023 FY2022 % change Sales           7,646,170         10,019,083 -23.7 Loss from operations           (868,001)         (1,041,451) -16.7 Net profit            (780,286)            (731,061) 6.7 Meanwhile, parent firm Lotte Chemical swung into a net loss last year. S Korea's Lotte Chemical full-year financial results in billion S Korean won (W) 2023 2022 % Change Sales 19,949 22,276 -10.4 EBITDA 839 185 353.5 Operating profit -333 -763 Net income -301 28 In the notes accompanying its financial results released on 7 February, Lotte Chemical had stated that that it “will pursue advancement and improvements to the business portfolio in order to actively respond to changes in the business environment of the petrochemical industry and improve profitability through efficient management of existing petrochemical businesses”. “The weak market conditions of the petrochemical industry are ongoing due to reduced demand and dropping product prices resulting from global uncertainties, as well as increased supply burdens caused by large-scale ethylene plant expansions in China,” it said. The acquisition of Malaysian company Titan Chemicals in 2010 was the Korean firm’s first foray into southeast Asia. The acquired company was rebranded Lotte Chemical Titan, and in 2017, was listed on the Malaysian bourse. LC Titan operates 12 plants at two sites in Johor, Malaysia; and holds a 40% stake in LOTTE Chemical USA based in Houston, Texas. In Indonesia, the company operates polyethylene plants, and in Q1 2022,  started construction of LOTTE Chemical Indonesia New Ethylene (LINE) Project, which will increase production capacity in Cilegon by 65% to 5.88m tonnes/year. The project is expected to produce 1m tonnes/year of ethylene; 520,000 tonnes/year of propylene; 250,000 tonnes/year of polypropylene (PP); and 140,000 tonnes/year of butadiene (BD). It is scheduled to be completed in 2025. Focus article by Nurluqman Suratman ($1 = M$4.71; $1 = W1,330) Thumbnail image: A Lotte Chemical Titan plant in Pasir Gudang, Malaysia (Source: Lotte Chemical Titan)

07-Mar-2024

PODCAST: Europe, Africa, Turkey PE/PP March outlook

LONDON (ICIS)–The global PE/PP market has been rocked by the disruption to Red Sea shipping, which has sent prices soaring, following sustained periods of weakness. The question now is, how long can this continue? With early March European offers out and some suppliers approaching the market bullishly, ICIS experts sit down to discuss all the potential influences in the coming month. Senior editor/ manager Vicky Ellis, senior editor/manager Samantha Wright and senior editor Ben Lake discuss the variables around the European, African and Turkish markets and what the early signs are for a potentially pivotal month. Meet our ICIS experts in person to talk about the pressing issues around polyolefin price spikes, weak demand and supply disruption. Ask the questions you need answers to, understand what the future looks like and uncover new opportunities. ICIS senior analysts, editors and managers will be at the Ritz-Carlton Hotel in Vienna, Austria on the 10-11 April for the 10th ICIS World Polyolefins Conference. You’ll also get to hear from industry leaders like Berry Global, Borealis and Plastic Energy, as they share their insights. Click here to learn more.

04-Mar-2024

Latin America stories: weekly summary

SAO PAULO (ICIS)–Here are some of the stories from ICIS Latin America for the week ended on 1 March. NEWS Mexico’s manufacturing returns to expansion on higher salesMexico’s manufacturing contraction in January was a blip, with output returning to growth in February as sales grew, analysts at S&P Global said on Friday. Brazil’s manufacturing at 20-month high on strong new orders book Brazil’s manufacturing PMI index continued expanding in February as firms increased their output to cater for a healthy new orders book, analysts at S&P Global said on Friday. MOVES: Brazil’s Unipar CFO resigns Unipar’s CFO Antonio Campos Rabello has handed in his resignation, effective 29 February, the Brazilian chemicals producer said late on Tuesday. Surging PET imports reflect Mexico's growing industrial appetiteMexico has seen a significant rise in PET imports since 2021, indicative of heightened demand for this versatile polymer across diverse sectors within the country's burgeoning economy. Persistent weak petchems, longer-than-expected spreads recovery to hit Braskem – S&P Brazil’s petrochemicals major Braskem’s profitability in 2024 will be hit by a delay in a recovery in spreads due to “persistent” weak markets, according to US credit rating agency S&P Global. Petrobras and ArcelorMittal mull joint low-carbon projects Brazilian state-owned energy major Petrobras and steel major ArcelorMittal have signed a memorandum of understanding (MoU) to jointly develop low-carbon projects. PRICING LatAm PE domestic prices up in Brazil, Colombia due to producers squeezed margins Domestic polyethylene (PE) prices were assessed higher in Brazil and Colombia on the back of squeezed margins from local producers. In other Latin American countries prices were steady this week. LatAm PP prices steady to higher due to increased feedstock costs, narrow margins Domestic polypropylene (PP) prices were assessed higher in Argentina, Brazil, Chile and Mexico on the back of higher feedstock costs and narrow margins. In Colombia prices were steady.

04-Mar-2024

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