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SHIPPING: Asia-US container rates tick lower; shippers frontloading cargoes on tariff pause
HOUSTON (ICIS)–Rates for shipping containers from Asia to the US ticked lower this week, although they could see upward pressure from shippers pulling forward volumes ahead of the 30-day tariff freeze, while rates for liquid chemical tankers held steady. Global average rates fell by 3%, according to supply chain advisors Drewry and as shown in the following chart. Global average rates are down by almost 18% from 1 September, and down by almost 45% from the high of the year in mid-July. Rates from Shanghai to both US coasts fell by 1%, as shown in the following chart. Drewry expects spot rates to decrease slightly in the coming week due to the increase in capacity as container ship order books are at record highs. Judah Levine, head of research at online freight shipping marketplace and platform provider Freightos, said his company is already seeing some upward pressure on prices although some could be because of shippers frontloading volumes to beat the 30-day pause before tariffs are enacted. ‘We could expect frontloading ahead of tariffs – which has been a major factor keeping US ocean import volumes and transpacific container rates elevated since November – to intensify until the new tariffs are introduced or called off,” Levine said. Levine said it is hard to determine the impact from volumes being pulled forward since this has likely been happening for several months, and with the market in the lull surrounding the Lunar New Year (LNY) holiday. “But we could expect demand and rates to increase post-LNY,” 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 STEADY US chemical tanker freight rates as assessed by ICIS were unchanged this week with contract of affreightment (COA) nominations steady for most trade lanes. For the cargoes in the South American trade lane, COAs remain strong leaving very little spot availability. A large parcel of ethanol fixed USG to San Luis, and several others were quoted for second half of February. Similarly, for the USG to ARA trade lane, it was another off week with only a few reported fixtures. However, there were some unusual cargoes fixed for products like caustic soda and ethanol. Some styrene was reported fixed from Lake Charles to ARA. Overall, rates seem to be maintaining current levels particularly for the 3,000- and 5,000-tonne parcels. There was no difference along the USG to Asia routes, as it was another quiet week on this trade lane. Spot rates remain steady as the H1 February space across the regular carriers is sold out. Some of the larger players should have space in the second half of February depending on COA nominations. The chemical COAs have been steady through H1 March, but still in the tentative phase. Several inquiries were seen for methanol, ethanol, vinyl acetate monomer (VAM), styrene and MEG. On the other hand, bunker prices were unchanged this week but overall remain strong. PANAMA CANAL UPDATE Panama’s president said the country will not renew its agreement with China’s Belt and Road Initiative (BRI) after a visit from US Secretary of State Marco Rubio. President Donald Trump surprised some when he said that the US should reclaim the Panama Canal, and a US congressman has since introduced a bill that would authorize the purchase of the vital waterway. The actions taken by Panama’s president, Jose Raul Molino, may slow action by the Trump administration to take back control of the canal. Additional reporting by Kevin Callahan
07-Feb-2025
PODCAST: Stable Europe ABS, ACN demand expected amid evolving supply landscape
LONDON (ICIS)–Relatively stable demand and evolving global supply dynamics are expected in European acrylonitrile-butadiene-styrene (ABS) and acrylonitrile (ACN) markets in 2025. In this latest podcast, Europe ABS report editor Stephanie Wix and her counterpart on the Europe ACN report, Nazif Nazmul, share the latest developments and expectations for what lies ahead. Geopolitics-led macroeconomic challenges dampen prospects of demand resurgence Balanced-to-long supply dynamics anticipated to endure Players assess impact of EU ADD investigation into ABS imports from South Korea, Taiwan ABS is the largest-volume engineering thermoplastic resin and is used in automobiles, electronics and recreational products. ACN is used in the production of synthetic fibres for clothing and home furnishings, engineering plastics and elastomers.
07-Feb-2025
Japan's Mitsubishi Motors to invest $121 million in the Philippines
SINGAPORE (ICIS)–Japanese carmaker Mitsubishi Motors Corp (MMC) is set to invest Peso (Ps) 7 billion ($121 million) in the Philippines over the next five years. MMC president and CEO Takao Kato announced the plan during a meeting with Philippine President Ferdinand Marcos Jr on 6 February. The plan includes adding a new production model at the Mitsubishi Motors Philippines Corp (MMPC) plant in Laguna province, according to a statement issued by the Presidential Communications Office (PCO). Kato said the Philippines is MMC’s most important investment in southeast Asia, citing its good and stable economy. MMPC operates a manufacturing plant in Santa Rosa, Laguna, with an annual production capacity of 50,000 units, which can be doubled, it stated. As of November last year, MMPC had a 19% share of the domestic market, trailing behind Toyota's 46% share. Marcos also announced that MMC will be part of the government's Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program which aims to boost the competitiveness of the local automotive industry. “In the ASEAN, (the) Philippines is our number one market,” MMC’s Kato said. Within southeast Asia, MMC also has production facilities in Thailand, Indonesia and Vietnam. The Japanese carmaker also has manufacturing plants in China and Russia. The automotive industry is a major global consumer of petrochemicals that contributes more than one-third of the raw material costs of an average vehicle. The sector drives demand for chemicals such as polypropylene (PP), along with nylon, polystyrene (PS), styrene butadiene rubber (SBR), polyurethane (PU), methyl methacrylate (MMA) and polymethyl methacrylate (PMMA). ($1 = Ps58)
07-Feb-2025
India’s Supreme Petrochem to start up new ABS unit in Apr-June
MUMBAI (ICIS)–India’s Supreme Petrochem Ltd (SPL) expects to commission the first phase of its 70,000 tonne/year acrylonitrile butadiene styrene (ABS) plant in Nagothane in April-June, a company source said on Wednesday. Another 70,000 tonne/year ABS unit will be added at the site in the western Maharashtra state, in the second phase of the project, the source said. SPL expects the two phases to cost Indian rupees (Rs) 8.5 billion ($98 million), when the project was announced in 2023. “Mechanical completion of the first phase of our mass ABS project is expected by end of March 2025 and commissioning is scheduled for the first quarter of financial year 2025-26,” the source said. The company’s fiscal year begins in April. “There is an available market for domestically manufactured product,” the source said, citing that “nearly over 50% of the country’s ABS requirement or around 140,000 tonnes, is currently being imported”. Separately, the company plans to invest Rs8 billion to build a greenfield petrochemical complex at Karnal in the northern Haryana state. It plans to build a 100,000 tonne/year polystyrene (PS) unit and a 50,000 tonne/year expandable PS (EPS) unit, along with downstream products such as including 3D panels, PS sheeting, extruded PS, among others. “Pre-project activities for that site are going on right now,” the source said. “The new projects will meet increased demand for PS and EPS in domestic and export markets in the years ahead,” he added. SPL can produce more than 300,000 tonnes/year of PS; 118,000 tonnes/year of EPS and other downstream products at its two facilities at Nagothane in Maharashtra; and Manali in the southern Tamil Nadu state, according to the company’s website. ($1 = Rs87.13)
05-Feb-2025
Brazil’s Unigel appoints Dario Gaeta as CEO after debt restructuring greenlit
SAO PAULO (ICIS)–Brazilian chemicals producer Unigel has concluded its debt restructuring process worth Brazilian reais (R) 5.1 billion ($885 million) after a Sao Paulo business court greenlit the plans drawn up by creditors. Unigel said it would be able to deleverage its debts by around 50% with the restructuring process’ conversion of R5.1 billion of existing debt into new financial instruments. The restructuring puts an end to the decades-long private ownership of Unigel in the hands of its founder, 88-year-old Henri Armand Szlezynger. “The execution of the RE [restructuring] Plan marks a pivotal transition in Unigel’s governance framework, with Option A [main] Creditors now holding a 50% stake in the company’s equity structure,” said Unigel. The new majority owners headhunted for the CEO position the Brazilian executive Dario Gaeta, with decades of experience at industrial and agricultural companies. Up to 2024, he was chief operating officer at ethanol producer Atvos and, prior to that, he was the CEO at Tiete Agroindustrial, another company in the sugar and ethanol sector, according to Gaeta’s LinkedIn profile. Former CEO Roberto Noronha has been demoted to board member, and the vice president who has overseen the restructuring, Daniel Zilberknop, an old name in Unigel, has been appointed chairman of the board. Unigel’s new board composition Position Name Representative Chairman of the Board Daniel Zilberknop Independent CEO Dario Gaeta Not provided Board Member Marc Buckingham Szlezynger Cigel Board Member Roberto Noronha Santos Cigel Board Member Pedro Wongtschowski Cigel Board Member Fabio de Barros Pinheiro Creditors Board Member Kofi William Bentsi-Enchill Creditors Board Member Gregorio Mario Charnas Creditors The restructuring plan also signals an exit from the fertilizers sector, as already outlined at the beginning of the restructuring process by creditors. High prices for natural gas – fertilizers’ main feedstock – was the main cause for that part of the business to start faltering, dragging the rest behind it in the end. Some plants which were leased to Unigel by Brazil’s state-owned energy major Petrobras are reportedly on course to return under Petrobras’ umbrella, even if Unigel may continue operating them. Unigel, then, is to remain mostly what it was before it ventured into fertilizers and was caught up in a major sector downturn. The company mostly produces styrenics and acrylics. For products and capacities, see bottom table. SULPHURIC ACID PLANTEarlier in January, Unigel presented plans to finish construction of its sulphuric acid plant in the state of Bahia, which had been paused as the company's financial woes increased. Unigel said it would invest $36.8 million to finish up the plant in Camacari, aiming to start it up by September. Production capacities were not disclosed. When fully functioning, the plant will allow Unigel to reduce its acid purchases in the open market. Acid is a key chemical used in many other chemical and industrial processes. Jonathan Szwarc, head of Latin America credit research at data firm specializing in leveraged capital markets Debtwire, who covered Unigel in the past, said by reducing its dependency on imports the sulphuric acid plant was a sound project from which Unigel’s could start building up its recovery. “The numbers for that project are sound. From my time covering Unigel, I remember the return on investment was expected to be very healthy: in up to four years, the company expects to have paid off the investment, such are the large amounts of acid it has to purchase in the open market,” said Szwarc. Earlier this month, Unigel also presented, for the first time in several quarters, a financial forecast for earnings before interest, taxes, depreciation, and amortization (EBITDA) up to 2030. The company has not published any financial results since 2023, a provision contemplated under Brazilian corporate law for companies in financial distress. For 2025, Unigel said it expected upsides coming from a 5% increase in Brazil’s styrene import tariff ($4 million positive contribution) and a higher rate in the REIQ tax benefit system for chemicals companies ($14 million). According to Unigel, its EBITDA could rise to $182 million by 2030. Unigel forecasts 2025 2026 2027 2028 2029 2030 EBITDA (in $ million) 49 142 164 176 173 182 Whether Unigel’s medium-term forecasts are realized remains to the seen, as it ultimately is a company in very deep financial distress for the past year and a half, operating in a market – petrochemicals – which is going through one of the longest sector’s downturns. “2030 is indeed quite a long forecast on this occasion. But, of course, for a judge to approve your restructuring plan you must present some sort of credible plan: detailed forecasts on financials, on spreads, on production…” said Szwarc. “Whether those forecasts end up realized, that’s another matter. But as we say in this world – an Excel [spreadsheet] can withstand almost anything,” he concluded, ironically. ($1 = R5.76) Additional information by Yashas Mudumbai Focus article by Jonathan Lopez
04-Feb-2025
Asia top stories – weekly summary
SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 31 January. Inflationary pressure continues to dampen Asia recycling demand By Arianne Perez 27-Jan-25 09:53 SINGAPORE (ICIS)–Annual inflation rates posted in December 2024 across major Asian markets were mostly showing gains month on month, keeping demand for recycled plastics sluggish. Asia petrochemical trades wane; Trump’s tariff threat weighs on Feb outlook By Jonathan Yee 27-Jan-25 11:11 SINGAPORE (ICIS)–Trades in Asia’s petrochemical markets have slowed down ahead of the Lunar New Year holiday, with a general oversupply in the region and the threat of US tariffs clouding the outlook in February. China industries contract in January; official PMI falls to 49.1 By Nurluqman Suratman 27-Jan-25 12:29 SINGAPORE (ICIS)–China's official manufacturing purchasing managers' index (PMI) slipped back into contraction mode, with a January reading of 49.1, as factory activity wound down ahead of the eight-day Lunar New Year holiday, official data showed on Monday. Asia SBR, PBR trades stall amid uncertain demand, strong BD cost By Ai Teng Lim 28-Jan-25 11:29 SINGAPORE (ICIS)–Spot imports discussions in Asia of various synthetic rubber grades are stalling, not just because of extensive holiday market closures, but also due to shaky downstream demand prospects and mounting feedstock butadiene (BD) cost pressures. Asia melamine outlook hinges on post-Lunar New Year cost, demand support By Joy Foo 28-Jan-25 14:48 SINGAPORE (ICIS)–China’s melamine market stabilized from mid-January, driven by bullish signals in China's urea market. This put a pause to a broad downtrend in the melamine market that began in H2 October 2024. India PVC prices at two-year low; market eyes government spending boost By Aswin Kondapally 29-Jan-25 15:34 MUMBAI (ICIS)–India's polyvinyl chloride (PVC) prices plunged to a more than two-year low in the second half of January, owing to sluggish demand along with uncertainty over the exact timeline for the implementation of antidumping duties (ADDs). Asia naphtha demand to find support from Q1 cracker start-ups By Li Peng Seng 31-Jan-25 12:28 SINGAPORE (ICIS)–Asia’s naphtha demand will be supported post-Lunar New Year as new crackers starting up in China would temporarily mitigate concerns about impending trade wars exacerbating weak petrochemical margins.
03-Feb-2025
Brazil’s chemicals to slow in 2025 amid currency, fiscal deficit woes – Activas CEO
SAO PAULO (ICIS)–Brazil’s chemicals distribution sector posted healthy activity in 2024 as manufacturing finally gained traction, but conditions are set to worsen in 2025 amid high inflation, high borrowing costs, and a government too prone to spend, according to the CEO at Brazilian chemicals distributor Activas. Laercio Goncalves added that he was not too concerned about the prospect of US tariffs on Brazilian goods – credit ratings agency Moody’s forecasts by mid-2025 the US will impose a 5% general tariff on them – although he lamented “the world is becoming more closed” and protectionist. Activas employs 150 workers at eight Brazilian sites. In 2024, it posted sales of Brazilian reais (R) 700 million ($118 million), flat year on year. Goncalves said the company is looking to expand by starting up a ninth distribution facility in Brazil’s south, where it already has a considerable presence with six out of its eight distribution facilities. Headquartered in Sao Paulo, Activas operates in that state its main facility in Maua and a smaller one in Sao Bernardo do Campo. Four more distribution facilities are in the country’s southern industrious states: Duque de Caxias (main petrochemicals hub in Rio de Janeiro state), Joinville (Santa Catarina), Caxias do Sul (Rio Grande do Sul), and Ibipora (Parana). In the country’s north, Activas operates two facilities in Cabo de Santo (Pernambuco) and Maceio (Alagoas). Activas sales 2024 2023 2022 2021 In million R 700 700 750 1,000 ‘REALISTIC TARGET’Goncalves remains committed to bringing Activas back to the R1.0 billion sales mark it posted in 2021, when chemicals prices shot up in the aftermath of the pandemic-induced lockdowns. He said he is confident the company can achieve that within a few year, but the CEO recognized that the 2021 sales figure was much about inflated prices and not much about actual larger volumes. “We already reached that level of sales [R1.0 billion] during the pandemic, so this is a realistic goal. For 2024, we had made a conservative business plan and indeed Q1 2024 was a very complicated quarter. At the time, a year ago or so, we were quite pessimistic: economic policy changes at home, wars abroad… everything was skewing the risks downside,” said the CEO. “So, after drawing up that rather conservative forecast for 2024, we started working internally on how to increase profitability. Sometimes it was reducing volumes of certain products while focusing on the most profitable lines, and by working operationally like that we managed to turn the year around – the second and third quarters were very good.” Activas, like other Brazilian distributors such as Quimica Anastacio, were able to ride on the manufacturing bonanza in Brazil in 2024, which together with booming agriculture and healthy services propelled GDP growth to around 3.5%. In 2023, GDP had grown by 3.2%. For 2025, Activas expects its sales could grow above the average growth of 2% expected by the Brazilian chemicals industry overall. BRAZIL: WRONG WAYWhile admitting that Activas and the industry’s performance in general sharply improved in the past two years, which coincided with the first two years of President Luiz Inacio Lula da Silva’s term, Goncalvez leaves no doubt he is not keen on a government he perceives as high spending and too interventionist. "A left-wing government… overtaxes. It puts the businessman against the wall all the time," he said, adding that the cabinet should be more focused on propping up industrial investments, rather than tax them. However, Goncalves not only shows disappointment at Lula economic policy, he widens the criticism to the country’s industrial investment strategies over the past 50 years – or, rather, the lack of them. Activas’ CEO, despite all the criticism, also gave overriding support to the key measure affecting Brazilian chemicals in 2024, which came from a protectionist measure: the increase in import tariffs for dozens of chemicals, mostly of them from 12.6% to 20%, in October, which are expected to greatly prop up domestic producers’ earnings. “Import tariffs in Brazil were a highly relevant topic in 2024 and are expected to continue impacting the market in 2025, especially with the application of ADDs [anti-dumping duties] due to oversupply and dumping practices by China. These measures have a positive side, as they protect the national industry, benefiting both producers and local distributors,” said the CEO. “In the case of Activas, higher import tariffs strengthened our positioning in the domestic market. On the other hand, as we also import some product lines, such as ABS [acrylonitrile butadiene styrene] and PET [polyethylene terephthalate], some of these measures may bring specific challenges to our operation.” Goncalves said he had also good eyes to the possibility of Braskem’s Novonor controlling stake to be acquired by a consortium of Brazilian banks, with involvment of the country's state-owned investment bank Bndes, as it would reinforce the Brazilian chemicals industry overall as well as its global footprint. “As direct partners [Activas is one of Braskem’s official distributors in Brazil], we view this change positively, as we believe that the government's presence can bring stability and foster strategic investments in areas such as technology and sustainability, benefiting the entire production chain,” said Goncalves. “In addition, this perspective strengthens the competitiveness of the local industry, creating opportunities for innovation and the development of solutions aligned with the demands of the domestic and foreign markets. We are confident that, with solid governance and a long-term vision, Braskem will continue to play an essential role in the growth of the industry.” PROTECTIONISM ON THE RISEWhile on the one hand Goncalves admitted protectionism is back in the agenda like never before in the past 70 years, he was glad to see public opinion and policy makers delve into “Important discussions” about what industrial fabric countries are willing to have and willing to support in times of global oversupply for many industrial goods. And, once again, the Activas CEO leaves no doubt about his political preferences from the perspective of businesses and who, in his view, would contribute to a more thriving economy. “Current global trade policies reflect a changing scenario. The new wave of protectionism, driven by leaders like Trump, has brought to the fore important discussions about the search for a balance between protecting national interests and maintaining global trade flows,” said Goncalves. “We maintain a positive view of these changes. We are seeing a weakening of the left in many regions, which paves the way for economic policies that are more aligned with growth and competitiveness.” MANAUS: UNRESOLVEDSince ICIS last interviewed Goncalves in 2023, he said nothing has improved regarding Brazilian chemicals companies' complaints about imports entering the country via the Free Economic Zone of Manaus, in the northern state of Amazonas. The concerns are shared by production and distribution sides alike. Manaus, the state’s capital, created a Free Zone in the 1960s to prop up development there, and taking advantage of the region’s waterways. However, many of the imports entering via Manaus are not directed to manufacturing in Amazonas itself but are just re-packaged and sold on. In theory, the tax incentives resulting from the Free Zone would only apply to imports which are later transformed in the region to produce Brazilian goods, creating employment and income for the state coffers. In practice, many of the imports are sent south to the industrial hubs of Sao Paulo, Rio Grande do Sul, or Rio de Janeiro, without paying the due taxes. “The Manaus free trade zone represents an entrenched economic anomaly in Brazil, where decades of improper product imports have become normalized despite repeated political attempts at reform,” said Goncalves. “Previous Federal governments’ attempts at reform were decisively blocked [the state of Amazonas has the exclusive right over the free zone], underscoring the zone's significant political protection. “With tax gains approaching 30%, the economic incentives for maintaining the status quo remain overwhelmingly strong, rendering meaningful reform seemingly impossible despite clear systemic irregularities.” This interview took place at Activas' offices in Sao Paulo last week. Front page picture source: Activas’ facilities around Brazil Picture source: Activas Interview article by Jonathan Lopez
28-Jan-2025
Asia petrochemical trades wane; Trump’s tariff threat weighs on Feb outlook
SINGAPORE (ICIS)–Trades in Asia’s petrochemical markets have slowed down ahead of the Lunar New Year holiday, with a general oversupply in the region and the threat of US tariffs clouding the outlook in February. Some downstream plants start shutting down two weeks before the holiday Buyers mostly stay on sidelines while some suppliers raise prices Players cautiously optimistic over post-holiday demand Demand across oleochemicals, polyethylene (PE) film, acrylonitrile butadiene styrene (ABS), styrene acrylonitrile (SAN) has softened as factories wind down or shut operations ahead of the Lunar New Year holidays. The Lunar New Year, which falls on 29 January, is celebrated in most parts of northeast and southeast Asia, with China on holiday from 28 January to 4 February. Uncertainty over US trade policy under Donald Trump’s administration, which expressed its intention to impose 10% tariffs on China from 1 February, has weighed on market sentiment going into and during the holiday. “China is slowing down ahead the Lunar New Year. Buying interest is low as market players are going away back to their hometowns,” said a source in the PE pipe grade market. A southeast Asia-based glycerine producer said: “We have not been getting any enquiries from China recently for glycerine, so we have been focusing on other regions.” Same conditions were observed in Vietnam, which is on holiday from 27 January to 3 February. Spot transactions were minimal in Asia, with trade discussions mostly deferred until after the holidays. MARKET ACTIVITY TO RESUME H2 FEB In the Asian recycling market, active trades may only resume when major exporters in China and Taiwan are back in the second half of February from a prolonged holiday. China and Taiwan have the largest exporters of recycled polyethylene terephthalate (rPET), recycled polyethylene (rPE) and recycled polypropylene (rPP) pellets. Meanwhile, suppliers of PE pipe grade, titanium dioxide (TiO2), and caprolactam (capro), have either reduced spot supply or hiked prices before the holiday even though demand remains weak. In the TiO2 market, players deemed the price hike on 21 January was more in anticipation of some improvement in post-holiday demand. “I don’t expect many trades to happen before LNY [Lunar New Year]. Most buyers said they are covered,” one market player said. TRUMP WORRIES CONTINUE For capro, styrene monomer (SM) and monoethylene glycol (MEG), demand is expected to improve post-holiday on seasonal restocking or improved opportunities for Chinese exporters. However, uncertainties over US President Donald Trump’s trade policies, including potential 10% tariffs on Chinese products from 1 February, and oversupply in key markets are tempering optimism in the near term. In December 2024, ABS and SAN end-users ramped up production to frontload shipments of contractual volumes to the US ahead of Trump’s widely anticipated tariffs of as much as 60% on Chinese goods. This led to a marked increase in China’s styrenics exports for the month. Starting January, these end-use factories reduced their run rates, having met their contractual obligations, with some having shut their plants as early as last week. The pre-Lunar New Year period typically sets the stage for post-holiday recovery, when inventories are cleared and demand resumes. Market players were keeping a cautiously optimistic outlook on demand recovery. “Ethyl acetate (etac) inventories will rise [post-Lunar New Year holiday] with production, but [Chinese domestic] demand will remain weak in February,” said a China-based market source. All eyes are focused on how soon Trump will impose his promised tariffs, with actual market impact likely to be felt a month after the announcement, according to market players. Focus article by Jonathan Yee Additional reporting from Yvonne Shi, Izham Ahmad, Arianne Perez, Helen Yan, Angeline Soh, Seng Li Peng, Isaac Tan, Joson Ng, Tan Hwee Hwee, Luffy Wu, Yvonne Shi, Melanie Wee, Judith Wang Thumbnail image: At Qingdao Port in Shandong province, China, on 23 January 2025. (Costfoto/NurPhoto/Shutterstock)
27-Jan-2025
Asia petrochemical shares, China futures markets mixed as Trump takes US reins
SINGAPORE (ICIS)–Shares of petrochemical firms in Asia and China’s commodity futures markets closed mixed on Tuesday, with no immediate announcement of new tariffs from the US on the first day of Donald Trump’s second term as president. South Korea’s LG Chem closed 4.75% lower in Seoul , while Japan’s Mitsubishi Chemical finished 1.85% higher in Tokyo. China’s state oil and gas firm PetroChina was down 1.40%, while chemicals major Sinopec ended down 1.62% in Hong Kong. The CSI 300 Index, a benchmark for Chinese mainland shares, edged up 0.08% to close at 3,832.61. Japan's benchmark Nikkei 225 rose by 0.32% to settle at 39,027.98, while South Korea's KOSPI Composite Index ended 0.08% lower at 2,518.03. Hong Kong's Hang Seng Index finished the session 0.91% higher at 20,106.55. Singapore's Straits Times Index (STI) was trading 0.27% lower at 3,797.61 at 08:44 GMT. Analysts said that markets have already pre-digested the “Trump effect”. In his presidential campaign, Trump had threatened to impose tariffs on all US imports. His first four-year term as US president in 2017-2021 sparked the US-China trade war. In China, six out of nine petrochemical futures markets posted declines on Tuesday. CNY/tonne 21-Jan % change from previous session Linear low density polyethylene (LLDPE) 7,808 -0.3% Polyvinyl chloride (PVC) 5,304 0.6% Ethylene glycol (EG) 4,753 -0.2% Polypropylene (PP) 7,400 -0.7% Styrene monomer (SM) 8,520 0.0% Paraxylene * 7,420 -0.1% Purified terephthalic acid (PTA)* 5,192 -0.2% Methanol* 2,591 0.6% Polyethylene terephthalate (PET)* 6,388 -0.2% Sources: Dalian Commodity Exchange, *Zhengzhou Commodity Exchange Overall trading activity in China’s petrochemical markets is waning as many players have suspended trading to prepare for the upcoming Lunar new year holiday, which will last eight days from 28 January. ($1 = CNY7.28) Additional reporting by Nurluqman Suratman
21-Jan-2025
Asia top stories – weekly summary
SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 17 January. UPDATE: Oil jumps by more than $1/bbl on fresh US sanctions on Russia By Nurluqman Suratman 13-Jan-25 11:54 SINGAPORE (ICIS)–Oil prices surged by more than $1/barrel on Monday on supply disruption concerns following latest round of US sanctions against Russia's energy sector. Strong upstream market, seasonal demand support Asia isomer MX By Jasmine Khoo 14-Jan-25 12:10 SINGAPORE (ICIS)–Strong overall performance in crude oil futures is poised to lend support to Asia’s isomer grade mixed xylenes (MX) market in the near term, although uncertainty looms over the region ahead of the incoming Donald Trump administration in the US. China posts record trade surplus in 2024; trade tensions threaten exports By Nurluqman Suratman 14-Jan-25 17:30 SINGAPORE (ICIS)–China has been rushing to ship out goods ahead of new US tariffs under the Trump administration which should keep exports growth strong in the short term, but external demand is projected to slow in line with a weaker global economy in 2025. ICIS China Dec petrochemical index inches up; Jan demand hazy By Yvonne Shi 15-Jan-25 15:55 SINGAPORE (ICIS)–The ICIS China Petrochemical Price Index in December increased by an average of 1.2% from the previous month, largely on account of tight supply in some markets, with players not expecting a strong demand recovery in the near term. China PP cargoes pre-sold at lower prices may impact post-holiday demand By Lucy Shuai and Zhibo Xiao 15-Jan-25 12:01 SINGAPORE (ICIS)–Downstream factory activity in China has been gradually winding down ahead of the Lunar New Year holidays from 28 January-4 February, resulting in weaker spot demand for polypropylene (PP). India petrochemical prices rise as rupee tumbles to all-time low By Jonathan Yee 16-Jan-25 15:25 SINGAPORE (ICIS)–India’s currency – the rupee – slumped to a record low in the week, pushing up both domestic and import prices of some petrochemicals in the south Asian country amid stable demand. Indonesian rupiah tumbles to 6-month low after surprise key rate cut By Nurluqman Suratman 16-Jan-25 15:48 SINGAPORE (ICIS)–The Indonesian rupiah fell to its weakest level in more than six months on Thursday following an unexpected loosening of monetary policy on 15 January to spur growth in southeast Asia's largest economy. PODCAST: Asia BD bullish on supply constraints, but demand outlook hazy By Damini Dabholkar 17-Jan-25 13:32 SINGAPORE (ICIS)–The Asian spot market for butadiene (BD) saw a bullish start to 2025, as prices in both Chinese yuan and US dollar terms surged dramatically. In this latest podcast, ICIS senior editor Ai Teng Lim and industry analyst Elaine Zhang come together to discuss the factors moving prices and to take a peek into what may lie ahead for downstream demand.
20-Jan-2025
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