Acetic acid

HOUSTON (ICIS)–The US is taking steps that could lead to tariffs on imports of up to 50 critical minerals, many of which are used to make catalysts for key processes used by refiners and chemical producers. If the US ends up imposing the tariffs on the critical minerals, then they would take the place of the reciprocal tariffs. REFINING CATALYSTS AND AROMATICS MARKETSFluorspar is used to make hydrofluoric acid, a catalyst used in alkylation units. These units convert isobutane and propylene into alkylate, a high-octane blendstock. Cerium and lanthanum are used to make catalysts for fluid catalytic cracking (FCC) units. These units convert gas oils into gasoline and refinery grade propylene (RGP). If the US imposes tariffs on these catalysts and if the tariffs cause large enough price increases, then refiners could alter their operations to reduce their costs. If refiners lower alkylation operating rates, they may rely on other high-octane blendstock such as toluene or mixed xylenes (MX). Changes in alkylation and FCC rates would concurrently affect supply and demand for RGP. ANTIMONY AND PETChinese restrictions on antimony already have led producers to propose price increases for polyethylene terephthalate (PET), which relies on the mineral as a catalyst. If the US imposes tariffs on antimony, then it would further increase prices from the other countries that export the mineral to the US. BISMUTH AND POLYURETHANESBismuth is used as a catalyst for making polyurethanes. One such bismuth-based catalyst won an innovation award. OTHER CATALYSTSIridium, neodymium, rhodium, ruthenium, ytterbium and yttrium are all used to make catalysts, according to the US Geological Survey (USGS). Palladium and platinum are used in catalytic converters in automobiles. TIO2 AND PAINTS MARKETSThe US also considers titanium and zirconium as critical minerals. It is unclear if the US would impose tariffs on titanium metal or titanium oxide. However, the US list of critical minerals implies that the tariffs could include titanium oxide. Titanium oxide is the feedstock that is used to make titanium dioxide (TiO2), a white pigment that is used to make paints opaque. Producers of paints and coatings are already facing higher costs from US tariffs on steel. In 2023, Sherwin-Williams estimates that plastic and metal containers made up 15% of its product's costs. A tariff on titanium oxide would further increase costs for paints and coatings producers. Zirconium is a byproduct of processing mineral sands that contain titanium. TiO2 producers Tronox and Chemours operate such mines. Tronox's are in Australia and South Africa, and Chemours has mines in the US states of Florida and Georgia. FLUORSPAR AND FLUOROMATERIALSFluorspar is also the upstream feedstock for fluorochemicals and fluoropolymers. Polyurethane foams use fluorochemicals as blowing agents. Fluoropolymers include Teflon. These are becoming increasingly important in 5G equipment, semiconductor fabrication plants and lithium-ion batteries. Fluoropolymers are also used as membranes in hydrogen fuel cells and chlor-alkali plants. BARITE, CESIUM USED IN OIL PRODUCTIONBarite is used to make drilling mud. Cesium is used to make cesium formate drilling fluids, which are used by oil and gas producers. FLAME RETARDANTSAluminum and antimony are used to make flame retardants. INVESTIGATION TO PRECEDE ANY TARIFFSBefore the US imposes any tariffs on critical minerals, it will conduct an investigation under section 232 of the Trade Expansion Act of 1962. The US has used that section to impose tariffs on other products such as steel and aluminium. The scope of the investigation will include the 50 minerals deemed critical by the USGS, processed critical minerals and derivative products. Derivative products include semi-finished goods and final products "such as permanent magnets, motors, electric vehicles, batteries, smartphones, microprocessors, radar systems, wind turbines and their components and advanced optical devices", according to the order. The secretary of commerce will have 180 days to submit a final report of the investigation to the president. Recommendations will include tariffs and policies the US could adopt that would promote more production of critical minerals. LIST OF CRITICAL MINERALSThe following table shows the minerals that the US considers critical. Aluminium Magnesium Antimony Manganese Arsenic Neodymium Barite Nickel Beryllium Niobium Bismuth Palladium Cerium Platinum Cesium Praseodymium Chromium Rhodium Cobalt Rubidium Dysprosium Ruthenium Erbium Samarium Europium Scandium Fluorspar Tantalum Gadolinium Tellurium Gallium Terbium Germanium Thulium Graphite Tin Hafnium Titanium Holmium Tungsten Indium Vanadium Iridium Ytterbium Lanthanum Yttrium Lithium Zinc Lutetium Zirconium Source: USGS Insight article by Al Greenwood (Thumbnail shows a fuel pump that dispenses gasoline, which relies on critical minerals for production. Image by Shutterstock.)

17-Apr-2025

SINGAPORE (ICIS)–Indorama Ventures Ltd (IVL) is divesting from its indirect subsidiary in Portugal that makes purified terephthalic acid (PTA), the Thailand-listed polyester major said on Wednesday. Its entire stake on Indorama Ventures Portugal PTA (IVPPTA) will be pulled out, it said. IVPPTA has a 700,000 tonne/year PTA plant in Sines, Portugal, which was mothballed in October 2023. The Portuguese company is a wholly owned subsidiary of Indorama Netherlands BV (INBV), IVL’s financial holding company registered in the Netherlands. "After a thorough assessment of market conditions and economic pressures, including high raw material and energy costs, inflationary impacts, and competition from low-cost PTA imports, the company has decided to implement its asset optimization strategy by divesting its investment in IVPPTA," the company said in a statement. The divestment will not affect IVL's operations or financial position, as IVPPTA’s assets were already impaired last year, IVL said.

16-Apr-2025

SINGAPORE (ICIS)–New energy storage plays a crucial role in ensuring power balance in China, especially in effectively addressing the intermittent issues of new energy generation. It helps alleviate the dual pressures of power supply security and consumption. China new energy storage capacity more than double by 2030 China new energy storage capacity at 73.76 million kW/168 million kWh by the end of 2024 Policy support accelerates rapid development of new energy storage By fully considering market and price factors, it can achieve a win-win situation of ensuring power balance and profitability. The new energy storage market in China has great development potential in the future. The cumulative installed capacity of new energy storage in China is expected to exceed 100 gigawatts (GW) by 2025, according to the Energy Storage Industry Research White Paper 2025 released by the Institute of Engineering Thermophysics on 10 April. The capacity is likely to surpass 200GW by 2030, more than double the 2024 level of 73.76GW. NEW ENERGY GENERATION CAPACITY EXCEEDS COAL POWER FOR FIRST TIME China's "dual carbon" goals, announced in September 2020, aim to peak carbon dioxide emissions before 2030 and achieve carbon neutrality before 2060. As the "dual carbon" goals approach, China's power structure is continuously evolving towards cleaner energy, with the proportion of non-fossil energy, especially new energy, steadily increasing. The total wind and solar power generation in 2024 increased by 20% to 1,288.4 billion kilowatt hours (kWh), according to data from the National Bureau of Statistics (NBS). As of February 2025, the installed capacity of wind and solar power totalled 1.45 billion kW, surpassing coal power for the first time to become the largest power source in China. This achievement came nearly six years ahead of the 2030 target of 1.2 billion kW for wind and power generation installed capacity. The national new energy utilization rate was 96.3% as of December 2024, according to data from the State Grid Energy Research Institute released at the 3rd China Energy Storage Conference and Exhibition in end-March. NEW ENERGY GENERATION AND STORAGE AS KEY SUPPORT FOR POWER SUPPLY Due to the randomness and volatility of new energy generation output, coupled with the integration of a large number of power electronic devices into the grid, the operation of power system faces challenges such as supply stability and consumption. New energy generation combined with new energy storage will provide key support for power supply. In terms of ensuring supply, new energy generation has insufficient output capacity during peak power load periods. The balancing capacity of wind power is 5-15%, while the balancing capacity of solar power during the evening peak is almost 0, data from the State Grid Energy Research Institute showed. During consecutive days of no sunlight and no winds, the prolonged low output of new energy may lead to temporary power shortages. On the consumption side, the growth of new energy installed capacity will continue to maintain a rapid growth momentum, surpassing the growth rate of system regulation capacity. Hence the utilization rate of new energy is expected to be on a downward trend in the future. The total installed capacity of power generation nationwide will exceed 3.6 billion kW in 2025, with an additional new energy generation installed capacity of over 200 million kW, according to the National Energy Administration's Energy Work Guidelines for 2025, released in February. Additionally, changes due to technical characteristics present new challenges to the operational risks of the power system. New energy storage features fast regulation speed and the ability to charge and discharge, providing regulation capabilities in both time and space scales. Through the innovative application of grid-forming energy storage, it is an important solution to the many challenges of large-scale integration of new energy. POLICY SUPPORT ACCELERATES RAPID DEVELOPMENT OF NEW ENERGY STORAGE Governments at national and local levels have introduced policies in areas such as ancillary services, demand response, and direct subsidies to encourage the strategic development of new energy storage. The Energy Law of the People's Republic of China, promulgated in November 2024, proposed the rational layout and active, orderly development and construction of pumped storage power stations. It also promotes the high-quality development of new energy storage and emphasizes the regulatory role of various types of energy storage in the power system. The National Development and Reform Commission and the National Energy Administration (NEA) jointly issued the Notice on Deepening Market-oriented Reform of New Energy Grid-connected Electricity Prices and Promoting High-quality Development of New Energy on 27 January 2025, marking the formal establishment of a dual-driven mechanism of policy and market for the energy storage industry. The configuration of energy storage should not be used as a prerequisite for the approval, grid connection, and grid access of new energy projects, which will fully leverage the decisive role of the market in resource allocation and facilitate the formation of a more mature and comprehensive business model for energy storage, the notice stated. At the local level, governments of 18 provinces, municipalities and autonomous regions released 32 batches of energy storage demonstration project lists from 2021 to 2024.  Over 40 cities in eight provinces have introduced subsidies for user-side energy storage. For example, the subsidy amount for initial investment in energy storage projects ranges from yuan (CNY)100 to CNY200 per kWh in Shenzhen and Dongguan of Guangdong province, and in Shanghai. Subsidies for the charge and discharge volumes of energy storage projects range from CNY0.15 to CNY0.30 per kWh, with a subsidy period of two to three years in cities such as Wuhu in Anhui, Ningbo, and Wenzhou in Zhejiang. The nationwide operational new energy storage capacity reached 73.76 million kW/168 million kWh by the end of 2024, about 20 times the level in 2020, at the end of the 13th Five-Year Plan period  and more than double compared with end-2023 levels, according to NEA data. Data from the State Grid Corporation of China (SGCC) showed that the installed capacity of new energy storage in its operating area reached 58.61 million kW/137.86 million kWh by the end of 2024, more than double their 2025 levels. During the 15th Five-Year Plan period (2026-2030), an additional 180 million kW of new energy storage is expected to be added, with an effective capacity of 160 million kW, covering 27.4% of the incremental demand for power generation. ELECTROCHEMICAL ENERGY STORAGE DEVELOPMENT STANDS OUT Currently, there are dozens of new energy storage technology routes in China, including advanced compressed air energy storage, flywheel energy storage, lithium iron phosphate batteries, vanadium redox flow batteries, and sodium-ion batteries, each suitable for different scenarios based on their characteristics. Among them, electrochemical energy storage (such as lithium-ion batteries, lead-acid batteries, flow batteries, and sodium-sulfur batteries) has become the mainstream form of new energy storage due to its high efficiency, high power density, and high energy density. The dominant role of lithium-ion battery storage has been further strengthened, with over 97% of the newly added new energy storage in 2024 coming from this type of storage. There was a total of 1,473 operational electrochemical energy storage stations by the end of 2024, with a total installed capacity of 62.13GW/141.37GWh, according to data from the National Electrochemical Energy Storage Power Station Safety Monitoring Information Platform. Among these, lithium-ion battery storage installed capacity was 135.76GWh, representing 96.03% of the total (with 99.91% of lithium-ion projects being lithium iron phosphate). However, lithium-ion batteries have relatively poor thermal stability and are prone to thermal runaway issues. As the number of energy storage projects increases, higher requirements are placed on safety technology and management capabilities. The platform data also showed that in 2024, China saw significant improvement in the operational performance of electrochemical energy storage compared to the previous year. The average annual operation time was 1,649 hours, an increase of around 510 hours compared to 2023. The average annual utilization time was 911 hours, an increase of about 300 hours year on year. The total charging electricity was 8,991GWh, and the discharging electricity was 7,980GWh, with an average conversion efficiency of 88.75%. Energy storage is mainly used in three major application scenarios: the power generation side, the grid side, and the user side. Currently, energy storage stations on the user side are relatively profitable, while the profit margins for the power generation side and the grid side are limited. Based on a typical 20-year lifespan and 350 charge-discharge cycles per year for batteries, the energy storage market needs to achieve a revenue of CNY0.42 per kWh, Zheng Yaodong, an expert from China Southern Power Grid said at the 3rd China Energy Storage Conference and Exhibition. However, this is difficult to achieve under the current domestic market mechanism. In the future, the development of new energy storage business models should follow a comprehensive market system approach, including the capacity market, energy market, and ancillary services market, to gradually improve and perfect the business models. Insight article by Anita Yang ($1 = CNY7.30)

14-Apr-2025

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 28 March. Japan Mar manufacturing activity deteriorates as output, new orders fall By Nurluqman Suratman 24-Mar-25 12:28 SINGAPORE (ICIS)–Japan's manufacturing purchasing managers' index (PMI) fell to 48.3 in March, marking its lowest point since February 2024 amid a sharp drop in output and new orders, preliminary estimates from au Jibun Bank showed on Monday. INSIGHT: Chandra Asri prioritizes Indonesia chlor-alkali-EDC project By Pearl Bantillo 24-Mar-25 19:42 SINGAPORE (ICIS)–Indonesian producer Chandra Asri Petrochemical is proceeding with its flagship chlor-alkali (CA) ethyl dichloride (EDC) project, taking a bottom-up approach in its planned second petrochemical complex amid a challenging global landscape. Asia MEK faces demand slowdown, mounting cost pressure entering Q2 By Joy Foo 25-Mar-25 13:19 SINGAPORE (ICIS)–Asia’s methyl ethyl ketone (MEK) prices have declined in March due to weakened demand, but Chinese makers’ cost pressure and low inventories may limit further market downside in the near term. INSIGHT: China's solar policy deadlines fuel volatility of EVA market By Joanne Wang 26-Mar-25 12:00 SINGAPORE (ICIS)–The recurring “rush-to-install” phenomenon in China’s photovoltaic (PV) industry- marked by deadlines like April 30 and May 31 – has profound ripple effects on China’s EVA (Ethylene Vinyl Acetate) market, a critical material for PV encapsulation films. INSIGHT: Can Q2 heavy turnarounds pull Asia MEG market out of its malaise? By Judith Wang 26-Mar-25 13:00 SINGAPORE (ICIS)–Asia's monoethylene glycol (MEG) prices had plunged to a six-month low by late March driven by slower-than-expected demand recovery and ample domestic supply in China. Emission regulations, lower cost needed for alternative marine fuels support – IEA By Jonathan Yee 26-Mar-25 17:41 SINGAPORE (ICIS)–Accelerating the transition to cleaner energy in the maritime sector will require emission regulations and financial incentives surrounding alternative fuels such as methanol and ammonia, according to the International Energy Agency (IEA)’s Regional Cooperation Centre. China presses on with PP exports as supply pressure intensifies By Jackie Wong 27-Mar-25 12:18 SINGAPORE (ICIS)–With self-sufficiency on the rise and even more production capacities coming onstream through 2027, China is pressing on with its polypropylene (PP) exports, even as weak economic conditions and slow end-product demand persist. Asia automakers’ shares slump on US’ 25% tariffs on car imports By Jonathan Yee 27-Mar-25 12:14 SINGAPORE (ICIS)–Shares of automotive companies in Asia slumped on Thursday after US President Donald Trump signed an executive order imposing 25% tariffs on all foreign-made cars from 2 April. Asia imports more US ethane feedstock on diversification, trade diplomacy By Jonathan Yee 27-Mar-25 15:30 SINGAPORE (ICIS)–Asian petrochemical firms are expected to import more US ethane feedstock in the coming years as energy diversification efforts grow in the region, alongside southeast Asian leaders looking to improve trade relations with the US amid President Donald Trump’s tariff threats on countries with trade surpluses. S Korea carmakers call for government measures to mitigate US tariff impact By Nurluqman Suratman 28-Mar-25 12:44 SINGAPORE (ICIS)–South Korea’s automotive industry leaders on Friday called on the government to implement measures to soften the expected impact of US tariffs, which will take effect in early April. INSIGHT: Asia adipic acid waits on verdict from Europe ADD investigations By Josh Quah 28-Mar-25 13:00 SINGAPORE (ICIS)–An ongoing anti-dumping duty investigation from the European Commission on adipic acid imports from China have rocked Asia adipic markets in recent weeks.

31-Mar-2025

SINGAPORE (ICIS)–In this video, ICIS analyst Jady Ma shares insights on the expanding acetic acid capacity in China and the new price point published in the ICIS acetic acid daily report from 24 March. Central China’s share in domestic acetic acid capacity expected to rise to 17% following Handsome Chemical’s new plant start-up around May Trading activities in Central China on the rise amid intensive start-up of new downstream capacities in recent two years Inter-regional trade flows become more flexible, arbitrage margins between central China and other regions drawing more attention ICN

24-Mar-2025

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 21 March. Bearish sentiment prevails in Asia petrochemicals amid oversupply By Jonathan Yee 17-Mar-25 14:39 SINGAPORE (ICIS)–Weak downstream demand, exacerbated by economic and geopolitical uncertainties, keeps sentiment bearish and buyers cautious across petrochemical markets in Asia. China unveils consumption stimulus to safeguard growth By Fanny Zhang 17-Mar-25 16:00 SINGAPORE (ICIS)–China’s State Council announced on Sunday a special action plan to boost consumption, in fresh efforts to help achieve its growth target of around 5% for 2025. Monthly price gaps between Asia rPET, PET remain wide in Q1 By Arianne Perez 17-Mar-25 17:07 SINGAPORE (ICIS)–Average monthly spot prices between bottle-grade recycled polyethylene terephthalate (rPET) and polyethylene terephthalate (PET) pellets were persistently wide amid various factors in the Asian markets. Asia methanol in flux as Iran capacities expected to come onstream By Damini Dabholkar 17-Mar-25 17:26 SINGAPORE (ICIS)–The Asian methanol market has seen some price uncertainty over the last few weeks, with several market participants closely watching developments related to the start-up of methanol plants in Iran. INSIGHT: Asia chemical prices to soften in March amid crude oil losses – ICIS By Ann Sun 18-Mar-25 13:03 SINGAPORE (ICIS)–Asia’s petrochemical prices in March are expected soften due to downward pressure from crude oil losses. This forecast is driven by bearish sentiment caused by concerns over OPEC and its allies’ (OPEC+) planned output increase and the US’ trade policies. China remains net SM importer in 2024, setting stage for active exports in 2025 By Luffy Wu 18-Mar-25 16:04 SINGAPORE (ICIS)–Despite market players' rising focus on China's styrene monomer (SM) export market, the country remained a net SM importer in 2024 with an annual SM trade deficit of 159,719 tonnes. INSIGHT: China PET resin production growth to decelerate in 2025 By Jimmy Zhang 18-Mar-25 17:30 SINGAPORE (ICIS)–On an annual basis, China PET resin (mainly bottle grade) production growth remained quite high in both 2023 and 2024, at around 10% and 15% respectively. ICIS China February petrochemical index dips; March demand soft By Yvonne Shi 19-Mar-25 12:13 SINGAPORE (ICIS)–China’s domestic petrochemical prices weakened in February amid a sluggish market, with downstream factories slow to resume operations after the Lunar New Year holiday. PODCAST: Volatility seen in Asia, Mideast isocyanates amid recent supply changes By Damini Dabholkar 19-Mar-25 13:25 SINGAPORE (ICIS)–Asia and Mideast isocyanates prices climbed rapidly immediately after the Lunar New Year holiday, followed by sharp corrections in mid to end-February. Indonesia central bank keeps policy interest rate at 5.75% after market rout By Nurluqman Suratman 19-Mar-25 17:38 SINGAPORE (ICIS)–Indonesia’s central bank kept its policy rate unchanged at 5.75% on Wednesday, a day after local stocks closed nearly 4% lower, on concerns over the country’s economic growth prospects and government finances. Arbitrage widens for Asia-Europe acetic acid, etac spot trades By Hwee Hwee Tan 20-Mar-25 13:03 SINGAPORE (ICIS)–Traders leveraging on easing freight rates and a stronger euro have fixed several spot cargoes for acetyl products bound for Europe from China, lifting Asia-Atlantic trade volume into March. INSIGHT: Persistent capro oversupply sees plant closures, consolidation in Asia By Isaac Tan 20-Mar-25 14:00 SINGAPORE (ICIS)–The global caprolactam (capro) market is grappling with significant challenges, as oversupply from expanding Chinese production capacities, weak downstream demand, and rising margin pressures combine to create a pessimistic outlook for producers worldwide. Vopak's €1bn investments in energy transition projects underway – exec By Jonathan Yee 20-Mar-25 15:49 SINGAPORE (ICIS)–Dutch storage and infrastructure firm Vopak is doubling down on its energy transition strategy, re-affirming its commitment to invest €1 billion in low-carbon infrastructure through to 2030, the company’s Asia and Middle East chief told ICIS. Japan Feb core inflation at 3.0%; upholds interest rate hike hopes By Nurluqman Suratman 21-Mar-25 12:18 SINGAPORE (ICIS)–Japan's core consumer prices excluding fresh food in February rose by 3% year on year, remaining above the central bank's 2% target, reinforcing market expectations of further interest rate hikes this year. PODCAST: A tale of two olefins; C2, C3 to see diverging demand trends By Damini Dabholkar 21-Mar-25 13:32 SINGAPORE (ICIS)–Asia propylene (C3) editor Julia Tan speaks with Asia ethylene (C2) editor Josh Quah about the impact of recent tariff wars on downstream market sentiment, along with the markets' outlook for the second quarter.

24-Mar-2025

SAN ANTONIO (ICIS)–Here is a summary of chemical market stories, heading into this year’s International Petrochemical Conference (IPC). Hosted by the American Fuel & Petrochemical Manufacturers (AFPM), the IPC takes place on 23-25 March in San Antonio, Texas. AFPM ‘25: US tariffs, retaliation risk heightens uncertainty for chemicals, economies The threat of additional US tariffs, retaliatory tariffs from trading partners, and their potential impact is fostering a heightened level of uncertainty, dampening consumer, business and investor sentiment, along with clouding the 2025 outlook for chemicals and economies. AFPM '25: New US president brings chems regulatory relief, tariffs The new administration of US President Donald Trump is giving chemical companies a break on regulations and proposing tariffs on the nation's biggest trade partners and on the world. AFPM ’25: Shippers weigh tariffs, port charges on global supply chains Whether it is dealing with on-again, off-again tariffs, new charges at US ports for carriers with China-flagged vessels in their fleets, or booking passage through the Panama Canal, participants at this year's IPC have plenty to talk about. AFPM ’25: LatAm chemicals face uncertain outlook amid oversupply, trade policy woes Latin American petrochemicals face ongoing challenges from oversupplied markets and poor demand, with survival increasingly dependent on government protectionist measures. AFPM ’25: US propane supply long; ethane prices rising The US petrochemical industry is seeing a glut of upstream propane supply and rising prices for key feedstock ethane. AFPM ’25: Weak demand takes toll on US ethylene as supply concerns ease Persistently poor demand, underpinned by worries over global tariff policies and a sluggish US economy are putting downward pressure on US ethylene prices. AFPM ’25: US propylene demand weak despite recent supply disruptions Weak demand in the US propylene market has counterbalanced recent supply disruptions, pushing spot prices and sentiment lower. AFPM ’25: US BD supply lengthening; rubber demand optimistic US butadiene (BD) has been rather balanced in Q1 despite a couple of planned turnarounds and cracker outages limiting crude C4 deliveries, but supply is expected to lengthen, and demand is cautiously optimistic. AFPM ’25: US aromatics supply ample amid low demand Domestic supply of aromatics is ample and demand is relatively poor. AFPM ’25: US methanol exports, bunker fuel demand to grow, but domestic demand sentiment low US methanol participants’ outlook on the key downstream construction and automotive sectors has dimmed, but optimism continues for export growth and bunker fuel demand. AFPM ’25: Tariffs, weak demand weigh on US base oils Uncertain US trade policy paired with already weak finished lubricant demand weighs on base oil market sentiment. AFPM ’25: Trade policies dampening outlook for Americas PE The US polyethylene (PE) industry started 2025 with some early successes amid the backdrop of lower year-on-year GDP growth. Now, with the impact of volatile tariff policy on top of the aforementioned lower GDP forecast, the outlook for PE has fallen. AFPM '25: Tariffs to shape the trajectory of caustic soda in US and beyond The North American caustic soda market is facing continued headwinds coming via potential tariffs, a challenged PVC market and planned and unplanned outages. US President Donald Trump has threatened to implement tariffs on Mexico, Canada and the EU as well as on products that are directly tied to caustic soda but has delayed enactment on multiple occasions. These delays have bred uncertainty in the near-term outlook, impacting markets in the US and beyond. AFPM '25: US PVC to face headwinds from tariffs, economy The US polyvinyl chloride (PVC) market is facing continued headwinds as tariff-related uncertainties persist. The domestic PVC market is expected to grow between 1-3% in 2025 but continues to face challenges in housing and construction. Meanwhile, export markets continue to wrestle with the threat of protectionist policies and tariffs at home and abroad. AFPM ’25: US spot EG supply balanced-to-tight on heavy turnaround season; EO balanced Supply in the US ethylene glycols (EG) market is balanced-to-tight as the market is undergoing a heavy turnaround season. The US ethylene oxide (EO) market is balanced as demand from derivatives including surfactants is flat. AFPM ’25: US PET prices facing upward price pressure on tariffs, China’s antimony exports ban, peak seasonUS polyethylene terephthalate (PET) prices continue to face volatility as the market assesses the impacts of potential tariffs on imports from Canada and Mexico. AFPM ’25: US PP volatility persists amid weak demand The US polypropylene (PP) market is facing weak demand, raw material volatility and tariff uncertainty. AFPM ’25: US ACN rationalization inevitable amid declining demand Production of acrylonitrile (ACN) in the US is being reduced or shuttered as already weak demand continues to fall and as downstream plants are shutting down. Changes to the supply/demand balance, trade flows and tariff uncertainties are weighing on market participants. AFPM ’25: US nylon trade flows shifting amid global capacity changes, tariff uncertainties US nylon imports and exports are changing as capacity becomes regionalized and geographically realigned. The subsequent changes to trade flows, price increase initiatives and tariff uncertainties are weighing on market participants. AFPM ’25: US ABS, PC face headwinds from closure and oversupply The US acrylonitrile butadiene styrene (ABS) and polycarbonate (PC) markets are lackluster and oversupplied. Demand remains soft kicking off the year, and the closure of INEOS’s Addyston, Ohio, ABS facility and tariff uncertainties continue to pressure ABS and PC markets. AFPM ’25: US styrene market facing oversupply amid weak demand, trade uncertainty The US styrene market is transitioning from a period of supply tightness to one of potential oversupply, driven by weak derivative demand and the recent restart of Styrolution’s Bayport, Texas, unit. This return to full operation, coupled with subdued demand, suggests ample supply in the short term. AFPM ’25: US PS faces slow start to 2025 amid weak demand Domestic polystyrene (PS) demand started the year off weaker than expected, with limited restocking and slower markets. AFPM ’25: US phenol/acetone face challenging outlook heading into Q2 US phenol and acetone are grappling with a lot of moving pieces. AFPM ’25: US MMA facing new supply amid volatile demand heading into Q2 US methyl methacrylate (MMA) is facing evolving supply-and-demand dynamics. Roehm's new plant in Bay City, Texas, is in the final stage of start-up, but is not in operation yet. There is anticipation of sample product being available in Q2 for qualification purposes. AFPM ’25: US epoxy resins in flux amid duties, tariffs heading into Q2 US epoxy resins is grappling with changes in duties and trade policies. AFPM ’25: Acetic acid, VAM eyes impact of tariffs on demand, outages on supply The US acetic acid and vinyl acetate monomer (VAM) markets are waiting to see what impact shifting trade and tariff policy will have on domestic and export demand, while disruptions are beginning to tighten VAM supply. AFPM '25: US etac, butac, glycol ethers markets focus on upcoming paints, coatings demand US ethyl acetate (etac), butyl acetate (butac) and glycol ethers market participants are waiting to see if the upcoming paints and coatings season will reinvigorate demand that has been in a long-term slump. AFPM ’25: Low demand for US oxos, acrylates, plasticizers countering feedstock cost spikes US propylene derivatives oxo alcohols, acrylic acid, acrylate esters and plasticizers have been partly insulated from upstream costs spikes by low demand, focusing outlooks on volatile supply and uncertain demand. AFPM ’25: N Am expectations for H2 TiO2 demand rebound paused amid tariff implementations After initial expectations of stronger demand for titanium dioxide (TiO2) in the latter half of 2025, the North American market is now in flux following escalating tariff talks. AFPM ’25: US IPA, MEK markets look to supplies, upstream costs US isopropanol (IPA) market has an eye on costs as upstream propylene supplies are volatile, while the US methyl ethyl ketone (MEK) market is evaluating the impact of global capacity reductions. AFPM ’25: US melamine prices continue to face upward pressure on duties, tight supply US melamine is experiencing upward pricing pressure, thanks in large part to antidumping and countervailing duty sanctions and tight domestic supply. AFPM '25: US polyurethane industry braces for cascade effect of tariffs US polyurethane prices for toluene diisocyanate (TDI), methylene diphenyl diisocyanate (MDI) and a variety of polyether and polyester polyols continue to see increase pressure as the market assesses the impacts of potential tariffs on imports from Canada and Mexico. AFPM ’25: US BDO market eyes costs, demand outlook uncertain US 1,4 butanediol (BDO) production costs have been mounting, and margins have been crunched. Supply is ample and demand has been lackluster. AFPM ’25: US propylene glycol demand begins softening after prior feedstock-driven uptick After a cold winter with strong demand for seasonal propylene glycol (PG) end-uses in antifreeze and de-icers in many parts of the US, demand is starting to cool. AFPM ’25: US MA sentiment cautious ahead of potentially volatile Q2 US maleic anhydride (MA) is facing a volatile economic backdrop. Spot feedstock normal butane has fallen below $1/gal in March due to the end of peak blending season and strong production. AFPM ’25: US PA, OX face trade uncertainty, production constraints US phthalic anhydride (PA) and orthoxylene (OX) demand remains relatively weak. Prices have been remaining flat and are expected to settle lower this month after losing mixed xylene (MX) price support and underlying crude oil price declines. AFPM '25: Tight feedstock availability to keep US fatty acids, alcohols firm despite demand woes Tight supplies and high prices for oleochemical feedstocks are expected to keep US oleochemicals prices relatively firm, as continued macroeconomic headwinds, including escalating trade tensions between the US and other countries, only further weigh on consumer sentiment and discourage players from taking long-term positions. AFPM '25: Historic drop in biodiesel production to keep US glycerine relatively firm A drop in US biodiesel production to levels not seen since Q1 2017 is likely to keep the floor on US glycerine prices relatively firm through at least H1 as imports of both crude and refined material fail to fully offset the short-term shortfalls in domestic supply. PRC ’25: US R-PET demand to fall short of 2025 expectations, but still see slow growth As the landmark year, 2025, swiftly passes, many within the US recycled polyethylene terephthalate (R-PET) industry doubt the demand and market growth promised by voluntary brand goals and regulatory post-consumer recycled (PCR) content minimums will come to fruition. PRC ’25: US pyrolysis recycling players churning through regulatory, economic uncertainty As both regulatory and economic landscapes continue to change, production and commercialization progress among pyrolysis based plastic recyclers continues to be mixed. Pyrolysis, a thermal depolymerization/conversion technology which targets polyolefin-heavy mixed plastic waste, or tires, is expected to become the dominant form of chemical recycling over the next decade. Visit the US tariffs, policy – impact on chemicals and energy topic page Visit the Macroeconomics: Impact on chemicals topic page Visit the Logistics: Impact on chemicals and energy topic page Visit the Recycled Plastics topic page

22-Mar-2025

HOUSTON (ICIS)–US sustainability companies are starting to buckle, with a chemical recycling plant and a bioplastic producer both going bankrupt. Brightmark's Indiana operations filed for bankruptcy protection under Chapter 11, a move that will protect it from creditors while it tries to sell its underutilized chemical recycling plant. The bankruptcy will not affect the other operations of the parent company or its plans to build another chemical recycling plant in Georgia. Danimer Scientific is winding down operations at its plants in Bainbridge, Georgia, and Winchester, Kentucky. Danimer makes polyhydroxyalkanoates (PHA) and formulates polylactic acid (PLA). DANIMER GOES BANKRUPT AFTER ANNOUNCING PLANT CLOSUREDanimer had bet big on PHA, a renewable polyester made by fermenting natural oils. It became the owner of the world's first commercial scale PHA plant in 2022 after it expanded capacity at its site in Winchester, Kentucky, to 55 million lb/year (25,000 tonnes/year), said Frank Pometti, a partner of AlixPartners, the proposed financial advisor for the company. He made his comments in a court filing. By then, Danimer had already broken ground on another plant in Bainbridge that would have produced another 125 million lb/year of PHA. However, Danimer was increasing capacity faster than its customers were enacting sustainability initiatives. Since 2020, Danimer's operating rates never exceeded 15% of capacity. Moreover, Danimer was expanding capacity right when inflation was taking off. Companies like Phillips 66 were revising cost estimates for capital projects by 50%. Danimer would later suspend work on the new PHA plant after a prospective customer indicated that it wasn't ready to switch to the company's bioplastics. To date, Danimer has sunk nearly $190 million into the project. For years, Danimer had courted what it described as a new and significant customer that would have purchased the company's bioplastic to supply an internationally recognized quick-service restaurant with cutlery for all of its locations in North America. By 2025, securing a firm commitment from that customer became critical. Danimer was facing liquidity challenges, and its shares were taken off the New York Stock Exchange (NYSE) in January 2025. A firm volume commitment from that customer could allow Danimer to attract fresh capital from a potential investor, from which the company received a non-binding indication of interest. The customer would not provide the commitment. In March, Danimer reached out to its lenders and another customer in a last-ditch effort to secure a deal to keep the business running. That effort also failed. In mid-March, Danimer announced the shutdown of its operations in Bainbridge, home to the company's corporate headquarters, its PHA demonstration plant and its PLA reactive extrusion plant. It also plans to wind down operations at its plant in Kentucky. Days later, Danimer filed for bankruptcy protection in Delaware Bankruptcy Court. It plans to sell its plants and liquidate the uncompleted project in Bainbridge. The case number is 25-10518. BRIGHTMARK'S CHEM RECYCLING PLANT RUNS AT 5%Brightmark's chemical recycling plant in Indiana has required substantial re-engineering and re-design after starting up in 2023, said Craig Jalbert, chief restructuring officer. He made his comments in court filings. The plant needs $800,000/week just to maintain operations and fund improvement projects – all while working under $172 million of senior debt. To date, the plant's upgrade system has not worked, according to Jalbert. That system was made up of a hydrotreater that cleaned the pyrolysis oil (pyoil) and a fractionator that separated the cleaned oil. After starting up in 2023, the plant only managed to produce 10 million lb (4,500 tonnes ) of pyoil, or 5% of its 100,000 tonne/year capacity. So far, three petrochemical producers have bought its pyoil, which it sold under the brand name PyBright. Pybright did command a premium, but it was not high enough to offset the low run rates and the capital needs of the company. That plant will need more than $100 million in capital investments before it can operate at a high enough rate to be profitable, Jalbert said. Brightmark's parent company had been funding the plants operations and capital expenditures through equity contributions. These have totalled more than $210 million. By February, the parent company determined that it could no longer make the contributions. A $12.9 million payment was due on 1 March. The recycling company defaulted on the payment and filled for Chapter 11 bankruptcy protection on 14 March. Brightmark will continue to operate the Indiana plant while it tries to sell it. If necessary, Brightmark will hold an auction on 7 May. Meanwhile, Brightmark continues to work on its second chemical recycling plant that it is developing in Thomaston, Georgia. The next step is to file for air permits, the company said. The Georgia plant will have a capacity of 400,000 tonnes/year. Brightmark has not said when operations will start. Brightmark filed bankruptcy in Delaware. The case number is 25-10472. Insight article by Al Greenwood

20-Mar-2025

SINGAPORE (ICIS)–Sentiment in Asia’s petrochemical markets remains cautious with prices of some products – particularly in the southeastern region – were rising on tight supply, amid escalating trade tensions between the US and its major trading partners, including China. China’s oversupply-driven exports weigh on markets; post-Lunar New Year demand weaker than expected US tariff fears cause jitters across downstream industries Methanol supply constraints persist TRADES REMAIN SUBDUED Market activity in key chemical segments remains muted as buyers were staying on the sidelines, waiting for clarity on US trade policies and overall demand recovery. In the benzene market, South Korea’s January exports to the US slumped by 81% year on year to 15,000 tonnes, according to ICIS data. The decline was attributed to increased European supply to the US. “The market is cautious as everyone is waiting for more clarity on US tariff policies,” a trader said. South Korea faces potential hefty tariffs under the US’ plan to impose reciprocal tariffs from 2 April, even though the two countries have an existing free trade agreement. In the caprolactam (capro) market, producers are grappling with poor margins while supply within China continues to grow. “Capro margins have been bad for six months now, and demand didn’t pick up post-Lunar New Year,” said a Chinese producer. Chinese producers were exporting more to southeast Asia and Europe, in view of a general oversupply of petrochemicals and muted demand in the domestic market and following the US’ new 20% tariffs on all Chinese goods. For polypropylene (PP), China has ramped up exports to Vietnam and other southeast Asian nations which were exerting downward pressure on prices. With more Chinese capacity coming online, this trade flow is likely to continue. Chinese producers are increasingly willing to accept lower margins to capture market share in the polyolefin markets, creating ripple effects across Asia and beyond, forcing regional producers to adjust pricing strategies to remain competitive. However, these actions could be met with antidumping duties (ADD) as southeast Asian governments act to protect domestic producers. SHIPPING SECTOR WARY OF US POLICIES US protectionism is on the rise again under President Donald Trump’s administration, with an ongoing probe being conducted on China’s shipbuilding industry, which may be slapped with potential duties of up to $1.5 million per vessel. This move aims to deter reliance on Chinese-built ships and, instead, encourage investment in the US shipbuilding sector. China dominates the global shipbuilding industry, with over 81% of new tankers being built in the country, according to shipbroker Xclusiv in a November report. The fear is that if these tariffs come through, immediate cost impacts will be felt, especially on long-haul trades. Meanwhile, weaker freight demand post-Lunar New Year has also softened freight rates. Most downstream producers in China resumed operations in H2 February, after an extended holiday break. China was on official holiday from 28 January to 4 February. The northeast Asia winter was milder than expected, which reduced seasonal trade flows. DISRUPTIONS TIGHTEN SUPPLY While some chemical markets struggle with oversupply, others are experiencing tight supply due to plant outages. For methanol, supply is constrained in Malaysia, with Petronas’ unit experiencing operational issues, and Sarawak Petchem’s unit shut from late January. Iranian methanol plants have also been offline due to winter gas shortages, pushing Indian import prices up by $60/tonne within a week. Meanwhile, Russian supply disruptions due to drone attacks have tightened naphtha availability, strengthening prices. On the acetic acid front, plant turnarounds in China, Malaysia, and Japan initially tightened supply, but these units have since restarted, thereby improving availability of the material. OUTLOOK MIXED Market players remain wary of near-term price movements as supply and demand fundamentals shift across regions. March shipments for PE and PP in southeast Asia have largely been sold out, while Indonesian buyers are reluctant to commit to April purchases amid the Muslim fasting month of Ramadan, which started 1 March. Ramadan is observed in most parts of southeast Asia including Indonesia, southeast Asia’s biggest economy with a predominantly Muslim population. With uncertainties surrounding US’ trade policies, Chinese exports, and geopolitical risks, market sentiment remains mixed. Players are closely monitoring tariff developments and the potential impacts of further supply disruptions in key markets. Focus article by Jonathan Yee Additional reporting from Seng Li Peng, Isaac Tan, Tan Hwee Hwee, Angeline Soh, Jasmine Khoo, Julia Tan, Josh Quah, Damini Dabholkar, Doris He, Jackie Wong Thumbnail image: At Qingdao Port in Shandong province, China on 6 March 2025. (Costfoto/NurPhoto/Shutterstock)

10-Mar-2025

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 7 March. China Feb manufacturing activity rebounds on seasonality By Fanny Zhang 03-Mar-25 11:47 SINGAPORE (ICIS)–China's official manufacturing purchasing managers' index (PMI) in February marked a return to expansion territory after a soft January reading as factories resumed operations after the Lunar New Year (LNY) holiday. INSIGHT: China set to maintain "around 5%" growth target By Nurluqman Suratman 04-Mar-25 11:00 SINGAPORE (ICIS)–China's "Two Sessions" this week will be closely watched as the government work report is released, outlining the country's policy priorities for the year amid escalating trade tensions with the US. UPDATE: ADNOC, OMV agree on polyolefins JV worth $60 billion By Jonathan Yee 04-Mar-25 16:45 SINGAPORE (ICIS)–Austria’s OMV and the UAE’s Abu Dhabi National Oil Co (ADNOC) on Tuesday agreed to form a $60 billion joint venture (JV) by combining polyolefins businesses Borouge and Borealis following two-year talks. Asia acetic acid market softens on easing supply, downstream turnarounds By Hwee Hwee Tan 05-Mar-25 14:05 SINGAPORE (ICIS)–Asian spot prices for acetic acid imports and exports are being dampened by lengthening supply and softening demand tied to a downstream sector. China targets record 2025 budget deficit to rev up economy By Fanny Zhang 05-Mar-25 14:50 SINGAPORE (ICIS)–China has set its 2025 fiscal deficit target at a record yuan (CNY) 5.66 trillion ($780 billion), equivalent to around 4% of GDP, to fund the government’s stimulus measures and ensure the world’s second-biggest economy would post a 5% growth. Thai central bank lowers interest on slower economic growth, global trade tensions By Jonathan Yee 05-Mar-25 15:34 SINGAPORE (ICIS)–Slower than expected economic growth and downside risks such as escalating global trade tensions spurred by US trade policy led Thailand’s central bank to cut its key interest rate by 0.25 percentage points to 2.00 on 26 February, the Bank of Thailand (BOT) said. PODCAST: Asia propylene demand curbed by weaker PO margins By Damini Dabholkar 06-Mar-25 00:07 SINGAPORE (ICIS)–The northeast Asian propylene import markets have been weighed down by lengthening supply amid restarts at propane dehydrogenation (PDH) units. However, lower affordability levels from derivatives such as propylene oxide (PO) have also curbed import demand. China PP suppliers persist with export end goal amid margin challenges By Jackie Wong 06-Mar-25 11:08 SINGAPORE (ICIS)–Despite poor margins for polypropylene (PP), suppliers in China are expected to continue to persevere with their plans to expand their export sales network and win market shares in southeast Asia. South Korea Feb inflation eases amid growing economic headwinds By Nurluqman Suratman 06-Mar-25 13:50 SINGAPORE (ICIS)–South Korea's headline inflation eased in February, giving the central bank flexibility to loosen monetary policy to boost economic activity amid a slowdown. Thai PTTGC hopes to snap out of losses; eyes US ethane feed for crackers By Nurluqman Suratman 07-Mar-25 14:46 SINGAPORE (ICIS)–Imports of US ethane feedstock will be a key component of Thai producer PTT Global Chemical's (PTTGC) broader strategy to recover from recent losses, alongside initiatives to enhance competitiveness and expand into high-value businesses.

10-Mar-2025