Acrylonitrile

LONDON (ICIS)–Relatively stable demand and evolving global supply dynamics are expected in European ammonia and acrylonitrile (ACN) markets in 2025. In this latest podcast, global ammonia editor Sylvia Traganida and Europe ACN editor Nazif Nazmul share the latest developments and expectations for what lies ahead. Ammonia players are expecting European demand from the nitrates market to pick up soon Availability is due to tighten with scheduled turnarounds in Saudi Arabia and Indonesia Ammonia prices globally are softening due to a lack of major demand Geopolitics-led macroeconomic challenges dampen prospects of ACN derivatives demand resurgence Balanced-to-long ACN supply dynamics anticipated to endure

20-May-2025

LONDON (ICIS)–European acrylonitrile butadiene styrene (ABS) and acrylonitrile (ACN) markets are facing ongoing demand weakness in 2025, as well as uncertainty in global supply and the potential impact expected from US tariffs. In this latest podcast, Europe ABS market editor Stephanie Wix and markets editor for the Europe ACN report, Nazif Nazmul, share the latest developments and expectations ahead. Demand expected to remain stable at a weak level through 2025 Macroeconomic challenges persist, players monitor US tariff situation Impact of ongoing antidumping investigation on 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 fibers for clothing and home furnishings, engineering plastics and elastomers.

16-May-2025

HOUSTON (ICIS)–The tariff deal that the US has reached with China did not eliminate the duties on steel, aluminium and auto parts, all of which could lower automobile production and reduce demand for the plastics and chemicals used to make the vehicles. The US maintained its 25% sectoral tariffs on Chinese imports of steel, aluminium and auto parts. It levies the same tariffs on imports from much of the world. Imports from Canada and Mexico can avoid the tariffs if they comply with the nations' trade agreement, known as the US-Mexico-Canada Agreement. Oxford Economics expects US auto production will fall by -2.0% to -0.9% year on year in 2025. Fitch Ratings, a credit rating agency, lowered its US auto sales forecast by 6.7% and warned of production cuts. WHY ARE AUTOS IMPORTANT TO CHEMSAutomobiles made in North American contain an average of 198 kg of plastic, according to ICIS, making them an important end market for producers. Polypropylene (PP) is the most commonly used resin in North American automobiles followed by polyurethanes and nylon, as shown in the following charts. In addition, automobiles are large end markets for paints and coatings. In all, the typical automobile has nearly $4,000 worth of chemistry WHAT CHEMS SAY ABOUT AUTOSCelanese, whose Engineered Materials segment is heavily dependent on autos, stressed the uncertainty about the effects that tariffs will have on this key end market during the second half of the year. It will prepare by reducing inventory, controlling costs and lowering operating rates if warranted by demand weakness. Polyurethanes producer Huntsman is seeing automobile build rates drop low-single digit percentages. By the time order patterns trickle through original equipment manufacturers (OEMs) and down to chemical companies, Huntsman is seeing double-digit drops in some order patterns. AdvanSix warned that uncertainty surrounding tariffs is affecting the market for nylon and other engineering plastics. Axalta Coating Systems, which makes auto paint, warned of a $50 million gross annualized charge from tariffs. Axalta lowered its 2025 sales guidance to $5,300-5,375 million from $5,350-5,400 million. Earnings guidance remained unchanged. Steps that Axalta could take to offset a portion of that hit include insourcing production capacity to domestic plants; sourcing raw materials locally; reformulating products; managing strategic inventory; and executing pricing actions. TARIFFS RAISE AUTO COSTS, THREATEN OUTPUTTariffs on auto inputs will increase costs for vehicles, and producers will likely pass through a portion of those higher costs to customers. The size of those cost pass throughs will play a large role in the tariffs' effects on chemical demand. Higher prices for automobiles will discourage sales. Lower sales will reduce auto production and cut demand for plastics and chemicals used to make those vehicles. THE EFFECT SO FAR ON AUTO BUILDSPrior to the announcement of the US and China trade deal, Ford estimated that the gross cost impact from the tariffs is $2.5 billion. Among that, half will come from imported and exported parts as well as the effect that steel and aluminium tariffs will have on domestic prices. The rest is from imported vehicles. Already, Stellantis halted production for two weeks at a plant in Windsor, Ontario Province, Canada, because of tariffs. AUTO'S EXPOSURE TO TARIFFSThe US auto industry's exposure to tariffs is not trivial because the country imports enormous amounts of auto parts, steel and aluminium. Many of these products are subject to 25% sectoral tariffs or 10% baseline tariffs. More than 50% of the content of cars assembled in the US is imported, according to a 3 May CNN article, citing US government statistics. AUTO PART TARIFFSThe following chart breaks down 2024 general imports by country for auto parts under the 8708 code of the harmonized tariff schedule (HTS). Figures are in billions of dollars. Source: US International Trade Commission (ITC) Not all auto parts will be hit by the 25% tariffs. Some parts are excluded. Those from Mexico and Canada will escape the levy if they comply with the USMCA. STEEL AND ALUMINIUM TARIFFSThe following chart shows 2024 general imports of iron and steel under the HTS codes 7206-7224. These codes cover iron and nonalloy steel; stainless steel; and other alloy steel. The chart breaks down the imports by country and lists the value in trillions of dollars. Source: ITC Metal imports from the UK will be exempt under a recent trade deal, as indicated by a press conference in that country. Imports from Canada and Mexico would be exempt from these tariffs if they comply with the USMCA. Not all of these steel imports would be used in automobiles But the chart does illustrate that the US imports iron and steel from many countries that will be covered by the 25% tariffs. The following chart provides a similar breakdown for 2024 general imports of articles of iron and steel under Chapter 72. Figures are in trillions of dollars. Source: ITC The following chart provides the country breakdown for 2024 general imports of aluminium and articles thereof under Chapter 76. Figures are in trillions of dollars. Source: ITC OTHER THREATS TO DOMESTIC AUTO PRODUCTIONTariffs are taxes, and taxes reduce economic growth. Slower GDP growth translates to lower sales and production. ICIS expects that US economic growth will slow to 1.5% in 2025 from 2.8% in 2024. Growth in 2026 could be 1.7%. The country has a 34% chance of slipping into a recession in the next 12 months. Many US consumers bought automobiles to avoid paying tariffs. Those purchases made ahead of the tariffs will come at the expense of future sales. US SELF-SUFFICIENT FOR MANY PLASTICS, CHEMS USED IN AUTOSMany of the plastics and chemicals used by the US auto industry are produced in abundance in the country, and that will limit customers' exposure to the nation's tariffs for those products used in automobiles. The US is self-sufficient in polypropylene (PP), polyvinyl chloride (PVC) and polyethylene (PE), a plastic used in packaging and fuel tanks. Nylon is excluded from the tariffs. Polyurethanes, the second most common polymer used in automobiles, are made with methylene diphenyl diisocyanate (MDI), and a substantial amount of US MDI imports comes from China. The US also relies on imports of acrylonitrile butadiene styrene (ABS), much of which comes from Mexico, South Korea and Taiwan. Additional reporting by Stefan Baumgarten, Joseph Chang and Jonathan Lopez Insight article by Al Greenwood (Thumbnail shows automobile. Image by Shutterstock)

15-May-2025

BANGKOK (ICIS)–Sluggish domestic demand weighed on Japan’s petrochemical industry, resulting in reduced production volumes in 2024 compared with previous years, according to the Japan Petrochemical Industry Association (JPCA). 2024 ethylene output falls 6.3% Production of five major plastics shrink by 5% Japan economy forecast to grow by 1.2% in 2025 “Although some crackers in Southeast Asia and East Asia are reducing production, there are plans for capacity increases in crackers that significantly exceed demand in China,” JPCA said in a report prepared for the Asia Petrochemical Industry Conference (APIC) 2025. The conference is being held in Bangkok, Thailand from 15-16 May. Operating rates of crackers in Japan are expected to remain lowered, as with previous years, JPCA said. Japan's ethylene production in 2024 fell 6.3% year on year to 4.99 million tonnes, as domestic crackers have operated at below 90% of capacity since August 2022, with the monthly average run rate falling below 80% five times in 2024. Japan’s real GDP growth rate in 2024 was 0.1% amid weak exports, neutral growth in private consumption, and a slight increase in government consumption. For the whole of 2024, the country’s total production of five major plastics – namely, linear density polyethylene (PE), high density PE (HDPE), polypropylene (PP), polystyrene (PS) and polyvinyl chloride (PVC) – declined to 5.7 million tonnes, lower by 5.2% from 2023. Production (in thousand tonnes) Product 2024 2023 % change Ethylene 4,989 5,324 -6.3 LDPE 1,160 1,219 -4.8 HDPE 656 665 -1.4 PP 1,935 2,075 -6.8 PS 549 564 -2.7 PVC 1,406 1,496 -6.0 Styrene monomer (SM) 1,297 1,428 -9.2 Ethylene glycol (EG) 276 264 4.6 Acrylonitrile (ACN) 303 341 -11.2 Sources: METI, Japan Styrene Industry Association (PS, SM) and Vinyl Environmental Council (PVC) Domestic demand as ethylene equivalent in 2024  inched up by 1.4% to 3.92 million tonnes, according to JPCA data. While the global economy is expected to grow steadily in 2025, there is a risk of deterioration in the global economy and a corresponding decline in demand due to geopolitical issues, JPCA said, citing Russia's invasion of Ukraine, the Israel-Hamas war, as well as the tariff policy of the US Trump administration. The latter has caused costs of raw material prices to soar, JPCA said. Meanwhile, Japan's real GDP growth rate for 2025 is projected to accelerate to 1.2%, supported by increased exports, sustained growth in personal consumption, and increases in capital investment, said JPCA. Higher wage hikes in 2025 should help boost domestic consumption, it said. In the report, JPCA called on the petrochemical industry to adopt new roles and responsibilities in achieving carbon neutrality and advancing a recycling-oriented society. The report outlined a two-stage timeline: first, to reduce greenhouse gas emissions from existing facilities by immediately deploying currently available technologies; and second, to establish sustainable development goals by gradually introducing new technologies into society. “Not only corporate efforts but … collaboration and system design throughout the supply chain are required,” JPCA said. Focus article by Jonathan Yee

15-May-2025

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 25 April. China PC import prices near five-year low on poor demand By Li Peng Seng 21-Apr-25 12:41 SINGAPORE (ICIS)–Import prices of polycarbonates (PC) in China sank to their lowest in nearly five years recently and the bleakness will linger as demand will stay slow due to trade wars and ample supplies. US LPG supply diverted from China triggers sharp propane price fall in Japan, South Korea By Jiayi Chang 21-Apr-25 19:50 SINGAPORE (ICIS)–The US-China tariff dispute has severely disrupted established global energy trade flows. The abrupt suspension of US liquid petroleum gas (LPG) exports to China, a key trade route, has led to a sharp collapse in propane prices across Japan and South Korea. INSIGHT: China PP capacity expansion to peak in 2025; trade war to hit supply By Lucy Shuai 22-Apr-25 11:28 SINGAPORE (ICIS)–Global and Chinese polypropylene (PP) capacity additions will peak in 2025 and then slow down, with the US-China trade war expected to affect overall supply. S Korea's Apr export decline point to rising challenges from US tariffs By Nurluqman Suratman 22-Apr-25 12:05 SINGAPORE (ICIS)–South Korea's exports fell by 5.2% year on year in the first 20 days of April, an indication of the significant impact of US tariffs on Asia's fourth-largest economy. US tariffs enlarge woes in Asia chemical freight market By Hwee Hwee Tan 23-Apr-25 15:49 SINGAPORE (ICIS)–Vast uncertainty stemming from the US’ tariff moves has squashed hopes of any near-term recovery for Asia chemical tanker market. Cost push, tight supply buoy up few Asia petrochemicals amid general slump By Jonathan Yee 23-Apr-25 16:24 SINGAPORE (ICIS)–While the US-led trade war has roiled Asia’s petrochemicals market, sending prices of some on free fall, a selected few products have bucked the trend due to rising feedstock cost and tightening supply, but the support may be temporary amid global economic headwinds. PODCAST: Asia propylene market seeks balance in tariff chaos By Seymour Chenxia 23-Apr-25 16:56 SINGAPORE (ICIS)–Asia's propylene (C3) market is likely to see tighter short-term supply as China's propane dehydrogenation (PDH) producers now face surging propane import costs because of US-China tariff hikes. Downstream demand and end-user consumption could be negatively impacted by tariff barriers. INSIGHT: Sluggish demand weighs on Asia C3 despite propane hikes By Julia Tan 23-Apr-25 22:13 SINGAPORE (ICIS)–Tighter supply from end-May onwards is likely to support near-term Asia propylene (C3) pricing on expectations that tariffs levied on US-origin propane will make it untenable for Chinese PDH units to sustain existing operating rates. Saudi Arabia, India plan to jointly build two oil refineries By Priya Jestin 24-Apr-25 17:05 MUMBAI (ICIS)–Two oil refineries will be built in India as part of Saudi Arabia’s $100-billion investment pledged to the south Asian nation which would cover cooperation in multiple areas, including energy and petrochemicals. Asia ACN sentiment turns bearish on weak China market By Corey Chew 25-Apr-25 12:24 SINGAPORE (ICIS)–China’s domestic acrylonitrile (ACN) market has weakened as Shandong Yulong’s new capacity resulted in an oversupply amid weak demand. INSIGHT: Trade tensions to hasten Canadian low carbon ammonia exports to Asia, hitting prospects of US projects By Bee Lin Chow 25-Apr-25 15:38 SINGAPORE (ICIS)–Canadian ammonia exports are exempted from the prohibitively high levy imposed on Canadian exports to the US, thanks to the US-Mexico-Canada trade agreement.

28-Apr-2025

HOUSTON (ICIS)–Ascend Performance Materials was already reeling from overcapacity in China and an industrial recession when its main complex caught on fire and a freeze shut down its operations in Texas – events that contributed to the bankruptcy of the nylon 6,6 producer. Ascend Performance Materials filed for bankruptcy protection under Chapter 11 on Monday. The filing will allow Ascend to continue operations and protect it from creditor lawsuits while it reorganizes its finances. Ascend already has support from its lenders, and it expects to emerge from bankruptcy protection in six months. NYLON MARKET ALREADY STRUGGLING WITH OVERCAPACITYJohn Rogers, an analyst at Moody’s Ratings, noted how the entrance of China caused fundamental changes to the nylon market. “The issue for Ascend was the increased capacity in China by established western producers and domestic companies along with the ability of Chinese producers to now produce [adiponitrile] and [hexamethylene diamine], two key intermediates that have sustained Ascend’s margins during prior downturns.” Over the past six years, Chinese production capacity for chemical intermediates has grown by 93%, and downstream production by 64%, said Robert Del Genio, Ascend's chief restructuring officer. He made his comments in court documents. Many of these new market entrants from China sought to gain market share by selling at a cash loss or pursuant to subsidies from the Chinese government, Del Genio said. Ascend was faced with grim choices. It could cut prices or lose customers to these new entrants. Meanwhile, a prolonged recession has struck manufacturing, a key end market for the nylon produced by Ascend. Many of the company's key end markets have been slow to recover to pre-pandemic levels of production because of destocking, inflation, labor shortages and supply-chain issues, Del Genio said. Weak demand has caused prices for nylon 6,6 to fall and Ascend's EBITDA margin to approach its lowest level in almost a decade, Del Genio said. For chemical intermediates, long-term take-or-pay contracts signed when times were good have turned into money losers under these tougher economic conditions. Ascend was forced to sell at a loss under these contracts. CLOSURE OF BARGE CHAMBER ADDS MORE EXPENSESAscend's main inland barge chamber at Wilson Lock had been closed after cracks were discovered in the lock gates in September 2024, Del Genio said. Wilson Lock is the only way that barge shipments can enter and leave the company's operations in Decatur, Alabama, Del Genio said. With Wilson Lock shut down, the Decatur site has had to rely on trucks to ship acrylonitrile (ACN) from Texas and to move adiponitrile (ADN) to Pensacola. "The use of a trucking alternative has had a $4 million impact on the company’s first two quarters of financials in 2025 in addition to significantly increasing transit times," Del Genio said. Trucking also added delays, which left Ascend's Decatur and Pensacola operations vulnerable to disruptions, Del Genio said. To prevent this, Ascend bought ACN and ADN from third parties at a premium, adding an additional $4 million in expenses. FIRE, FREEZE PROVE TOO MUCHIn December 2024, a fire started at Ascend's main nylon complex in Pensacola, Florida, which disrupted operations until the middle of February 2025, Del Genio said. The fire cost Ascend $6 million in earnings before interest, tax, depreciation and amortization (EBITDA). About a month after the fire, sub-freezing temperatures hit Texas, where Ascend makes hydrogen cyanide (HCN) and ACN at its complex in Chocolate Bayou, Del Genio said. As a proactive step, Ascend shut down its operations at Chocolate Bayou to prevent mechanical failure and threats to the environment. The shutdown of Chocolate Bayou led to a cascade of side effects. Ascend's operations in Decatur, Alabama, needed the ACN from Chocolate Bayou to continue running, Del Genio said. The shutdown of Chocolate Bayou forced Ascend to buy ACN on the open market so it could keep Decatur running. Those purchases further depleted the company's cash reserves. Overall, the closures of Chocolate Bayou, Pensacola and Wilson Lock lowered Ascends Q1 EBITDA by $21 million, Del Genio said. HEADING TOWARDS BANKRUPTCYIn response to a worsening liquidity crisis, Ascend increased its vendor payment deferrals. By late February, the company's past-due accounts-payable wall exceeded $110 million. Vendors responded by demanding cash in advance, tightening payment terms, threatening to remove rental equipment and freezing supplies of goods and services. The company was approaching a breaking point. Ascend owed money to companies that provided critical goods and services. If these companies cut off Ascend, it could bring the company's plants to a halt. Ascend arranged bridge loan financing that gave the company enough time to file for bankruptcy protection in US District Court, Texas Southern District. The case number is 25-90127. (Thumbnail shows nylon. Image by Shutterstock)

22-Apr-2025

SINGAPORE (ICIS)–Arab Gulf (AG) ammonia annual average export price is forecast to ease further this year (see Chart 1) as producers are expected to keep prices competitive to maintain market shares in Asia, particularly as weak Asian demand for industrial applications including acrylonitrile (ACN) and caprolactam (capro) have capped ammonia prices. AG ammonia producers are expected to maintain its export prices in 2025 at just below parity with southeast Asian producer with FOB AG at around 97% of FOB SE Asia prices (see Chart 2) to optimize returns while keeping market shares in their key India and Taiwan markets. AG ammonia producers’ netbacks in Taiwan and India in 2025 are projected to return to levels similar to 2020 before the Russian-Ukraine war with AG FOB at around 89% and 84% of CFR Taiwan and CFR India prices, respectively (see Chart 3) Asia remains an important market for AG producers particularly when their returns from Europe have been shrinking. AG ammonia producers’ FOB netbacks from Europe is expected to remain constrained in 2025 with the FOB AG annual price hovering at around 63% of the CFR NWE annual price, following two years of higher returns in 2022 and 2023. (see Chart 4) AG ammonia producers have not been exporting much to Europe except for 2022 and 2023 when outbreak of the Russia-Ukraine conflict and subsequent sanctions on Russian exports created a window of opportunity for AG producers. (See Chart 5) Europe ammonia import prices are expected to remain elevated as high natural gas prices had led several ammonia plants in the region to be permanently shut in 2022, with the ammonia prices remaining tied to the prices of key exporters Trinidad and Algeria. Egypt also exports ammonia to Europe, but its production has been susceptible to disruptions caused by natural gas shortages as seen in Q3 last year and February this year. Europe import prices are expected to ease if Russia resumes exports to Europe hence a burning question for importers is when Togliattiazot’s (TOAZ's) export terminal at Russia’s Taman Port would start loading ammonia. TOAZ is part of the Uralchem Group, and the terminal was expected to start loading ammonia in Q1 this year. Ammonia is a feedstock for inorganic fertilizers such as urea and ammonium sulphates and chemicals such as acrylonitrile (ACN). With contributions from Song Hea Beom, Sylvia Traganida

28-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)–Here are the top stories from ICIS News from the week ended 21 February. US to start antidumping probe on China MDI imports on 5 March The US International Trade Commission (ITC) will start on 5 March a preliminary antidumping probe on imports of methylene diphenyl diisocyanate (MDI) from China, acting on a petition from BASF and Dow Chemical. BASF to sell Brazil paints business to Sherwin-Williams, other moves ahead BASF is to sell its Brazilian decorative paints business to Sherwin-Williams for $1.15 billion and is set to begin exploring options for other parts of its coatings portfolio, the Germany-headquartered chemicals major said on Monday. US Celanese shares fall 23% to 2013 levels amid weak guidance Shares of Celanese fell by 23% in afternoon trading to reach lows last seen in 2013, after the company gave weak guidance for the first two quarters of the year and implied that growth would come from costing cutting and efficiency programs – and not from any widespread increase in demand. DATA WATCH: Europe's competitive weakness in chemicals clear amid US exchange rate decline Europe's lack of competitiveness in petrochemicals production is widely talked about in the industry, particularly in relation to China's expanding capacities and drive for self sufficiency. Cornerstone to close US ACN plant in June on financial, economic challenges US-based Cornerstone announced on Thursday the decision to mothball its acrylonitrile (ACN) operations in Waggaman, Louisiana, effective 30 June. Oversupplied global nylon market needs restructuring – US AdvanSix The global nylon market has too much capacity, and it needs more restructuring to balance supply and demand, the CEO of US-based nylon producer AdvanSix said on Friday.

24-Feb-2025

HOUSTON (ICIS)–US-based Cornerstone announced on Thursday the decision to mothball its acrylonitrile (ACN) operations in Waggaman, Louisiana, effective 30 June. “Despite significant efforts to adapt to an evolving marketplace, the [ACN] business’ financial challenges, exacerbated by oversupplied global markets for [ACN] and increasing raw material costs, have led to the difficult but necessary decision to exit the business at this time,” the company said. The plant has a capacity of 240,000 tonnes/year, according to ICIS Supply & Demand Database, and makes up about 15% of US ACN capacity. Unigel had stopped ACN production in Brazil in 2024. ICIS forecasts that US ACN demand in 2025 would be 130,000-200,000 tonnes lower than in 2024. Roehm will end methyl methacrylate (MMA) production in Fortier, Louisiana – where Cornerstone is located – by June. Roehm’s new plant in Bay City, Texas is expected to start operations in Q1. This facility will not use hydrogen cyanide, which is a by-product of ACN manufacturing. Downstream of ACN, several companies downstream have announced plans to close facilities. INEOS Styrolution is closing its acrylonitrile butadiene styrene (ABS) production site in Addyston, Ohio. The plant has a capacity of 195,000 tonnes/year, according to ICIS Supply & Demand Database. Decommissioning will commence in Q2. US-based nylon 6,6 producer Ascend Performance Materials is shutting down remaining operations in Greenwood, South Carolina by early 2025. The nylon 6,6 fibers plant has a capacity of 135,000 tonnes/year, according to ICIS Supply & Demand Database. Export demand for US ACN has also weakened. US ACN exports in 2024 fell by 40% from 2023. With additional reporting by Ramesh Iyer Thumbnail Photo: Cornerstone site

20-Feb-2025