Acrylonitrile butadiene styrene (ABS)

LONDON (ICIS)–Markets Editor Stephanie Wix is joined by Senior Editor Manager Vicky Ellis, markets reporter Meeta Ramnani, and Senior Analyst Jincy Varghese, as they discuss the key trends from the 29th Fakuma plastics processing trade fair in Friedrichshafen, Germany, in this latest ICIS podcast. They explore discussion topics heard at the event last week, from the highest concerns to the lowest expectations. They also explain the clash of pessimism and optimism between markets including acrylonitrile butadiene styrene (ABS), polycarbonate (PC), polyethylene (PE) and polypropylene (PP), and also engineering plastics polyacetal (POM) and polybutylene terephthalate (PBT).

22-Oct-2024

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 18 October. China VAM exports may slow throughout October By Hwee Hwee Tan 14-Oct-24 16:55 SINGAPORE (ICIS)–Persistent increases in China’s vinyl acetate monomer (VAM) domestic prices have pushed up spot export offers, dampening buying interest for Chinese cargoes in Asia this month. China Sept crude imports dips 0.6 on year; down 7.4% on month By Fanny Zhang 14-Oct-24 17:51 SINGAPORE (ICIS)–China’s crude oil imports in September totaled 45.5 million tonnes, down by 0.6% year on year and lower by 7.4% from the previous month, official data showed on Monday. India Sept inflation at nine-month high; Aug industrial output shrinks By Priya Jestin 14-Oct-24 22:46 MUMBAI (ICIS)–India’s retail inflation hit a nine-month high of 5.49% in September, mainly on firmer food prices, while the country’s industrial output in August shrank for the first time in 22 months. Oil prices fall by more than $3/barrel on abating Mideast tensions By Nurluqman Suratman 15-Oct-24 14:57 SINGAPORE (ICIS)–Oil prices fell by over $3/barrel on 15 October on moderating concerns over potential supply disruptions, following news that Israel may refrain from targeting oil facilities in Iran. Asia fatty alcohols demand to remain firm near term despite proposed EUDR delay By Helen Yan 15-Oct-24 16:41 SINGAPORE (ICIS)–Asia’s fatty alcohol mid-cuts demand is expected to remain firm in the near term despite the proposed one-year delay in the implementation of the EU Deforestation Regulation (EUDR). Asian synthetic rubber discussions in limbo as buy-sell differences deepen By Ai Teng Lim 16-Oct-24 13:28 SINGAPORE (ICIS)–Spot trade liquidity for Asian spot imports of various synthetic rubbers, from styrene-butadiene-rubber (SBR), polybutadiene rubber (PBR) and acrylonitrile-butadiene-rubber (NBR), are tapering amid widening differences in near-term pricing outlook between buyers and sellers. Asia BG demand expected to stay weak in Q4 By Joy Foo 17-Oct-24 13:22 SINGAPORE (ICIS)–The gap between China and southeast Asia butyl glycol (BG) import markets narrowed in October as lackluster demand has weighed down southeast Asia's import discussions. India petrochemicals demand subdued pre-Diwali; weak rupee effects unclear By Jonathan Yee 18-Oct-24 13:00 SINGAPORE (ICIS)–India's petrochemicals demand is losing momentum, hindered by the prolonged monsoon season, economic uncertainty, and volatile crude prices.

21-Oct-2024

SINGAPORE (ICIS)–Watch ICIS analyst Aviva Zhang discuss the implications of China's growing styrene monomer (SM) capacity, which is poised to open up export opportunities for the remainder of 2024. Chinese SM capacity currently at over 20 million tonnes/year; market pressured by new capacity ⁠Downstream acrylonitrile-butadiene-styrene (ABS) margins still negative while polystyrene (PS) margins are constrained Implementation of new macroeconomic policies is expected to stimulate end-use demand, which players are closely watching ICN

15-Oct-2024

HOUSTON (ICIS)–Rates for shipping containers from east Asia and China to the US continued to fall after a lengthy strike was averted at US Gulf and East Coast ports and as peak season volumes have largely been pulled forward. The International Longshoremen’s Association (ILA) strike lasted just three days, and market analysts expect backlogs created by the work stoppage to be cleared up in two to three weeks, or even less at the Port of New York/New Jersey. Some ports extended gate hours to allow more time for containers to be delivered or picked up. Nathan Strang, the US Southwest director of ocean freight for Flexport, said the company is seeing relatively fluid terminal operations and railroad operations. Strang said all detentions and demurrage rules from the Federal Maritime Commission (FMC) remain in effect but noted that time frames for detention and demurrage restarted on 7 October after the strike ended. CONTAINER RATES FALL Global average rates for shipping containers continued to fall, according to multiple analysts. Supply chain advisors Drewry has its World Container Index (WCI) at $3,349/FEU (40-foot equivalent unit), which is down by 4% and shown in the following chart. Drewry said Shanghai to Los Angeles container rates fell by 5%, and Shanghai to New York rates fell by 3%, as shown in the following chart. Following the tentative deal between the ILA and the ports, Drewry expects rates ex-China to continue to decrease marginally in the coming weeks. Online freight shipping marketplace and platform provider Freightos said rates fell by a larger degree, but its rates had been higher. Judah Levine, head of research at Freightos, said carriers are also planning to reduce deployed capacity on the transatlantic trade lane later in the month in the hope of preventing rates from falling back to the $1,600-1,800/FEU level they had maintained for much of the year. “With the strike over and peak season demand largely behind us from a significant pull forward of volumes in the last couple months, transpacific container rates should continue to ease on the seasonal lull in volumes between peak season and Lunar New Year,” Levine said. 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), are shipped in pellets. They also transport liquid chemicals in isotanks. LIQUID TANKER RATES UNCHANGED US chemical tanker freight rates held steady again this week for most trade lanes, even though vessel demand is growing for some routes. Most rates from the major chemical hubs remain sideways as a good portion of the market were attending the European Petrochemical Association (EPCA) conference in Berlin. The USG to Asia lane was also quiet following holidays. Although it is likely that increased exports ex–USG will be seen going into Europe and Asia, primarily as clean petroleum products (CPP) tonnage continues to focus on alternative cargoes in the petrochemical space, thereby adding to spot availability, which is already well supplied. On the transatlantic front, the eastbound leg is expected to warm up with cargoes being quoted including styrene to ARA from several US Gulf ports. With additional reporting by Kevin Callahan Visit the ICIS Logistics – impact on chemicals and energy topic page

11-Oct-2024

LONDON (ICIS)–Markets editor Stephanie Wix and reporter Meeta Ramnani join senior editor manager Vicky Ellis to pick out key themes ahead of the 29th Fakuma plastics processing trade fair in Germany, in this latest ICIS podcast. They discuss the clash of pessimism and optimism for acrylonitrile butadiene styrene (ABS), the changing European landscape for polycarbonate (PC) given ADNOC’s recent offer for Covestro, and pressure from cheap imports for PE and PP and engineering plastics polyacetal (POM) and polybutylene terephthalate (PBT). Fakuma runs from 15-19 October.

11-Oct-2024

SINGAPORE (ICIS)–China’s petrochemical futures tumbled on Wednesday morning as a lack of further economic stimulus measures from the government left investors worrying about demand. At the end of the morning session, polyvinyl chloride (PVC), purified terephthalic acid (PTA) and paraxylene (PX) futures led the slump, with losses ranging from 2.4-3.5%. Market sentiment was also weighed down by crude oil’s plunge overnight, in which both Brent and WTI benchmarks shed more than $3/bbl. In physical markets, spot transactions were sluggish at most petrochemicals, including acetone, butadiene, acrylonitrile, propylene oxide, upon resumption of trade due to weak demand. China had a week-long National Day holiday on 1-7 October. Futures market gains in the previous session lost steam as market hopes for additional economic measures did not materialize. In a briefing on 8 October, the National Development and Reform Commission (NDRC) – China’s top economic planner – provided no details on how to execute the aggressive measures announced in late September. Market players were initially expecting the government to adopt further fiscal measures to arrest the slowdown of the world’s second-biggest economy. ($1 = CNY7.07)

09-Oct-2024

HOUSTON (ICIS)–Here are the top stories from ICIS News from the week ended 4 October. US Tampa port reopens after Helene's hit; US-wide losses could top $160 billion The port at Tampa in the US state of Florida reopened over the weekend, the port’s authorities said on Sunday, after Hurricane Helene's destructive path put the US state of Florida against the ropes. SHIPPING: ILA ports strike to weigh on US PE, PVC exports; carriers set congestion surcharges Participants in the US chemical industry worry that a prolonged strike by US Gulf and East Coast dock workers will hurt exporters and lead to supply surpluses, and some carriers are already initiating port congestion surcharges that will add increased costs on top of delays to both imports and exports. SHIPPING: Union, US ports remain at impasse as strike enters second day Negotiations have yet to resume between union dock workers and the US Gulf and East Coast ports as a costly strike enters its second day. US demand for ACN, other chems could take a hit as Boeing strike enters fourth week US acrylonitrile (ACN) demand could soften as 33,000 Boeing employees remain on strike in a work stoppage that is entering its fourth week. SHIPPING: Trucks, container ships backing up as US ports strike marks third day In only its third day, a strike by dock workers at US Gulf and East Coast ports is leading to idled trucks and growing numbers of container ships queuing outside of the ports. SHIPPING: Union, US ports reach tentative agreement, dock workers to return to work on Friday The three-day strike by US Gulf and East Coast dock workers has been suspended until 15 January to allow negotiations to resume, according to a joint statement from the union and ports. INSIGHT: No signs of petchems demand recovery from car sector on the horizon, H2 2025 may be a moment of truth After a strong rebound in car sales last year, the European automotive industry is facing a more challenging environment in the second half of 2024, leading to a drop in petrochemical requirements from car manufacturers. Consumer appetite for new vehicles has become more sluggish following a post-Covid catch-up phase in 2023, mainly due to a mixed economic environment and persistently high interest rates, along with uncertainty on both policy and political developments across the continent. SHIPPING: With strike over, some US ports extending gate hours; container rates fall further With the suspension of the strike at US Gulf and East Coast ports until 15 January, carriers are urging customers to use extended gate times being offered by some ports to collect or deliver any urgent containers to terminals.

07-Oct-2024

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 27 September. Asia BD market sentiment to be driven by domestic China fluctuations By Ai Teng Lim 24-Sep-24 13:05 SINGAPORE (ICIS)–Asian spot prices for butadiene (BD) imports made sizeable gains this month, alongside a bullish domestic yuan-denominated market in China. China petrochemical futures rally on fresh economic measures By Fanny Zhang 24-Sep-24 16:42 SINGAPORE (ICIS)–China’s petrochemical futures markets surged on Tuesday following announcement of fresh measures to rev up activity in the world’s second-biggest economy. India to be among global oil demand growth drivers in 2023-2050 – OPEC By Nurluqman Suratman 25-Sep-24 13:09 SINGAPORE (ICIS)–India is expected be a major driver of global long-term oil demand growth through to 2050, alongside the Middle East and Africa, OPEC said in a report. Market diversification key to weather challenges in Asia recycling By Arianne Perez 23-Sep-24 12:46 SINGAPORE (ICIS)–Asian producers of recycled polyolefins have been struggling to stay afloat since 2023 amid a general slump in trade of fast-moving consumer goods (FMCGs). Slow recovery in Asia petrochemical markets; Q4 sentiment bearish By Jonathan Yee 25-Sep-24 14:26 SINGAPORE (ICIS)–Macroeconomic challenges in China have kept overall sentiment bearish in Asia’s petrochemical markets, but there was a late pick-up in demand for some products just days before a week-long holiday in the country in October. Intra-Asia VAM spot trades may contract amid downstream woes By Hwee Hwee Tan 26-Sep-24 10:46 SINGAPORE (ICIS)–Asia's import demand for vinyl acetate monomer (VAM) is being dampened by slower demand and macroeconomic woes persisting into the fourth quarter of 2024. INSIGHT: China 2024 crude imports, throughput to fall on economic headwinds By Patricia Tao 27-Sep-24 14:27 SINGAPORE (ICIS)–China is expected to record lower crude oil imports and refinery throughput this year on weaker-than-expected distillates demand during the typical peak consumption season amid economic headwinds and increased market penetration of alternative fuels. PODCAST: Asia fatty alcohol market uptrend may prompt switch to LAB By Damini Dabholkar 24-Sep-24 14:24 SINGAPORE (ICIS)–Prices of Asia's fatty alcohol midcuts may be nearing a ceiling as demand from Europe is expected to wane after October, given the looming EU Deforestation Regulation (EUDR) which starts on 30 December.

30-Sep-2024

SAO PAULO (ICIS)–The Mexican government has amended for the third time the decree regulating import and export permit requirements for several chemicals as well as fuel products and re-opened the door for 20-year permits. Among others, there were amendments published for permits to import key building blocks within the petrochemical industry, such as naphtha; products within the aromatics chain such as benzene and toluene; or within olefins such as ethylene, propylene and butadiene (BD). Within fuels, import permits for jet kerosene or biodiesel were amended, as well as those for feedstocks such as methyl tert-butyl ether (MTBE). Read the list of products in the decree’s annexes (see here, in Spanish). The government said it was aiming to simplify the procedures by providing greater legal certainty and clarity to interested parties, seeking to facilitate compliance with obligations by considering the type of merchandise, its use, and the quantities requested. These import and export permits apply when the product is related to the energy industry or derives or is produced from hydrocarbons. For lubricants and additives, recent regulatory amendments have made it necessary to obtain a Permit for the import of such products, when classified under certain specific tariff codes. Some of the updates referred to the term of the permits for import and export, an aspect in which the government is backtracking its earlier decision from 2020 to withdraw 20-year permits existent at the time, according to a note to customers by the Mexican office of law firm Holland & Knight. “Permits are granted for different validity periods that vary based on the nature of the merchandise and its intended use. For merchandise intended for sporting events and research trials, both for import and export, the validity is sixty days. Standard permits for one year and five years may also be requested,” said Gabriel Ruiz, partner at the law firm. “Furthermore, permits for export may be granted for periods exceeding five to twenty years, provided the need for such permits is justified in the interest of social and economic benefit, subject to approval by the Ministry of Energy (SENER).” The decree also establishes specific requirements for obtaining prior import and export permits, differentiating the requirements based on the validity of each type of permit. Regarding renewals, permits granted for one year may be renewed up to two times for the same validity, while five-year permits may be renewed once for the same duration. For permits exceeding five years intended for export, the renewal will be singular and may extend up to half of the original validity; in the case of twenty-year permits, the renewal will be limited to the same proportion. The new rules published on 18 September came to amend a decree originally issued in December 2020, later amended in November 2022 and November 2023. These amendments were part of wider changes included in the Energy Reform passed in 2013, which sought to liberalize Mexico’s energy sector. The current Administration’s approach, however, has been keeping the state-owned energy companies – crude major Pemex or utility CFE are two of them – at the center of the country’s energy landscape. Front page picture source: Shutterstock

24-Sep-2024

SINGAPORE (ICIS)–China’s petrochemical futures markets surged on Tuesday following announcement of fresh measures to rev up activity in the world’s second-biggest economy. As the close of trade on Tuesday, polyvinyl chloride (PVC) was leading the charge in China’s domestic futures market, with a 3.3% increase, with seven others also posting strong gains. Product Prices at close of trade (CNY/tonne) % change from 23 Sept Linear low density polyethylene (LLDPE)                                   7,969 1.2% Polyvinyl chloride (PVC)                                   5,388 3.3% Ethylene glycol (EG)                                   4,459 1.9% Polypropylene (PP)                                   7,360 1.4% Styrene monomer (SM)                                   8,559 0.7% Paraxylene *                                   7,012 2.4% Purified terephthalic acid (PTA)*                                   4,930 2.2% Methanol*                                   2,396 1.6% Sources: Dalian Commodity Exchange, *Zhengzhou Commodity Exchange Shares of major Chinese chemical producers traded in Shanghai and Shenzhen bourses also increased, welcoming the central bank’s economic measures. Company  Closing prices on 24 September (CNY/share) % change from 23 Sept Hengli Petrochemical 13.12 5.4% PetroChina 8.36 4.4% Rongsheng* Petrochemical 8.84 4.1% Satellite Chemical* 16.08 7.7% Sinopec 6.76 4.3% Wanhua Chemical 78.96 4.4% Sources: Shanghai and *Shenzhen bourses The Shanghai composite index surged by 4.15% to close at 2,863 on Tuesday. It was the index’s biggest single-day rally since 6 July 2020. People’s Bank of China (PBoC) governor Pan Gongsheng announced in a press conference the new economic measures, which include cuts on banks’ reserve requirement ratio (RRR), key policy rate and mortgage rates to revive the economy. China's economic weakness has been a major drag on overall sentiment across the equities and commodities markets this year. “The move [basket of stimulus by China’s central bank] is bold by historical standards and came earlier than we had expected,” said Betty Wang, lead economist at UK-based Oxford Economics, in a research note on Tuesday. “The policy measures include cuts to the policy rate and reserve requirement ratio (RRR), adjustment to mortgage lending and policy support to stock market,” Wang said. “The continuous weakness in domestic economy and the outsized rate cut from the [US] Federal Reserve were the likely catalysts behind the PBoC's latest move,” the economist said. This is the first time since the COVID-19 pandemic that the central bank offered a combination of rate cuts, RRR cuts, and structural monetary policies as stimulus measures. A 20-basis point (bps) interest rate cut in the 7-day reverse repurchase (repo) rate and a broad-based 50bps RRR cut are also rare, Oxford Economics noted. Focus article by Fanny Zhang ($1 = CNY7.04) Thumbnail image: At a container terminal at Lianyungang Port in east China's Jiangsu Province, 18 September 2024. (Shutterstock)

24-Sep-2024